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Microsoft

MB6-700 · Question #48

Your company negotiates a project contract worth 120,000 USD with a customer. To maintain an acceptable profit margin,the budget for the project is set at 85,000 USD. The project manager wants to…

The correct answer is B. Manage the budgeting as a single unit for the entire project hierarchy. See the full explanation below for the reasoning.

Question

Your company negotiates a project contract worth 120,000 USD with a customer. To maintain an acceptable profit margin,the budget for the project is set at 85,000 USD. The project manager wants to manage the project as three related subprojects,so you divide the total budget into 25,000 USD,40,000 USD,and 20,000 USD. When you create the root project,you create the original budget and submit the budget to workflow for approval. How should you manage the budgeting for the entire project hierarchy?

Options

  • AManage the budgeting only at the subproject level in the project hierarchy.
  • BManage the budgeting as a single unit for the entire project hierarchy.
  • CManage the budgeting separately for each project type in the project hierarchy.
  • DManage the budgeting separately for each subproject in the project hierarchy.

How the community answered

(44 responses)
  • A
    2% (1)
  • B
    80% (35)
  • C
    7% (3)
  • D
    11% (5)

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