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PFMP · Question #714

PFMP Question #714: Real Exam Question with Answer & Explanation

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Question

Working to monitor the portfolio especially in terms of its value to the organization, you had each component manager prepare monthly variance reports. Of the components ranked in the top 10, six of them realized they would not require some of their initial funding and still would be completed as planned. This means:

Options

  • AThree-point estimating should be used as funds are allocated
  • BNext year's budget can be adjusted
  • CHistorical data would be useful on estimates versus actual costs
  • DThe amount of contingency and management reserves can be decreased

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