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PK0-003 · Question #247

A project manager has inherited a project that is $5 million over budget. Which of the following would the project manager do to help determine the root cause of the budget overrun?

The correct answer is D. Review if the project has maintained alignment with the scope. The project manager needs to investigate the root cause of a significant budget overrun.

Project management concepts

Question

A project manager has inherited a project that is $5 million over budget. Which of the following would the project manager do to help determine the root cause of the budget overrun?

Options

  • AEnsure the project plan reflects all tasks were documented during planning
  • BReview the change control log
  • CPerform qualitative risk analysis
  • DReview if the project has maintained alignment with the scope

How the community answered

(25 responses)
  • A
    4% (1)
  • B
    12% (3)
  • C
    24% (6)
  • D
    60% (15)

Why each option

The project manager needs to investigate the root cause of a significant budget overrun.

AEnsure the project plan reflects all tasks were documented during planning

Ensuring all tasks were documented during planning addresses a planning quality issue, not necessarily the root cause of a current $5 million budget overrun in an ongoing project.

BReview the change control log

Reviewing the change control log is helpful for approved changes, but it may not uncover unapproved scope creep or other factors contributing to a budget overrun not captured as formal changes.

CPerform qualitative risk analysis

Performing qualitative risk analysis is a proactive risk management activity to identify future risks, not a method to determine the root cause of an existing budget overrun.

DReview if the project has maintained alignment with the scopeCorrect

Reviewing if the project has maintained alignment with its scope is crucial because scope creep or unauthorized changes often lead directly to budget overruns.

Concept tested: Root cause analysis for budget variances

Source: https://www.pmi.org/learning/library/project-cost-budgeting-methodology-analysis-6721

Topics

#budget overrun#root cause analysis#scope management

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