Total funding requirements and periodic funding requirements are derived from:

Question

Options

• Afunding limit reconciliation
• Bscope baseline
• Cactivity cost estimates.
• Dcost baseline.

• A
  4% (2)
• B
  2% (1)
• C
  10% (5)
• D
  84% (42)

Explanation

Cost baseline (D) is the time-phased budget approved for the project, and both total funding requirements and periodic (e.g., quarterly) funding requirements are derived directly from it - typically the cost baseline plus management reserves equals the total funding needed, plotted over time.

Why the distractors are wrong:

• A (funding limit reconciliation) is a technique used with the cost baseline to adjust spending, not a source of funding requirements.
• B (scope baseline) defines what work is included (scope statement, WBS, WBS dictionary) but does not produce dollar figures for funding.
• C (activity cost estimates) are inputs that feed into creating the cost baseline - they're a predecessor, not the source of funding requirements.

Memory tip: Think of the cost baseline as the financial "blueprint" - just as construction funding comes from a blueprint, project funding requirements come from the cost baseline. If you see "funding requirements," go straight to D.

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