ISEB-PM1 · Question #191
Which describes how cost variances will be managed?
The correct answer is A. Cost management plan. The Cost Management Plan defines how cost variances will be identified, analyzed, and responded to - it's the governing document that sets thresholds, reporting formats, and corrective action procedures for when actual costs deviate from planned costs. B (Cost baseline) is the…
Question
Which describes how cost variances will be managed?
Options
- ACost management plan
- BCost baseline
- CCost estimate
- DChart of accounts
How the community answered
(23 responses)- A83% (19)
- B9% (2)
- C4% (1)
- D4% (1)
Explanation
The Cost Management Plan defines how cost variances will be identified, analyzed, and responded to - it's the governing document that sets thresholds, reporting formats, and corrective action procedures for when actual costs deviate from planned costs.
- B (Cost baseline) is the approved budget used to measure variances, not to describe how they'll be managed.
- C (Cost estimate) is an approximation of resource costs - an input to planning, not a governance document.
- D (Chart of accounts) is a coding structure for categorizing costs, unrelated to variance management procedures.
Memory tip: Think of the Cost Management Plan as the "rulebook" - any time a question asks how something will be handled, controlled, or governed, the answer is almost always a plan document, not a baseline, estimate, or tool.
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