The program manager of a multinational program must reconcile data including subject matter experts' labor hour estimates, and other direct resource hour estimates. In addition, the program manager mu

The correct answer is B. Component cost estimates. To establish a program baseline budget, the foundational input is the component cost estimates-the aggregated cost data from each program component (projects and non-project work). Labor hour estimates from SMEs and resource estimates roll up into component cost estimates, which

Program Life Cycle (Planning)

Question

The program manager of a multinational program must reconcile data including subject matter experts' labor hour estimates, and other direct resource hour estimates. In addition, the program manager must prepare the cash flow analysis. Which of the following should be considered to get a baseline budget?

Options

ACurrency exchange rates
BComponent cost estimates
CBaseline schedule
DProgram payment schedules

How the community answered

(46 responses)

A
4% (2)
B
93% (43)
C
2% (1)

Explanation

To establish a program baseline budget, the foundational input is the component cost estimates-the aggregated cost data from each program component (projects and non-project work). Labor hour estimates from SMEs and resource estimates roll up into component cost estimates, which are then consolidated into the program budget baseline. Option A (currency exchange rates) is an important consideration for a multinational program but is an adjustment factor, not the primary input. Option C (baseline schedule) informs timing of expenditures but is not the cost basis. Option D (payment schedules) governs cash outflows but relies on the cost estimates being established first.

Topics

#Program Budget#Cost Baseline#Financial Management#Estimating

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