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PK0-004 · Question #286

During project execution, the cost management plan would be used to:

The correct answer is D. Determine if variances exceed a defined threshold. The cost management plan is used during execution to evaluate whether actual cost variances fall within acceptable limits and to trigger corrective action when they do not.

Project management concepts

Question

During project execution, the cost management plan would be used to:

Options

  • AEnsure that resources are compensated fairly.
  • BSchedule resources for each phase of the project.
  • CIdentify costs that were not previously identified.
  • DDetermine if variances exceed a defined threshold.

How the community answered

(43 responses)
  • A
    14% (6)
  • B
    2% (1)
  • C
    7% (3)
  • D
    77% (33)

Why each option

The cost management plan is used during execution to evaluate whether actual cost variances fall within acceptable limits and to trigger corrective action when they do not.

AEnsure that resources are compensated fairly.

Ensuring fair compensation is an HR and contracts concern governed by the human resource plan and procurement documents, not the cost management plan.

BSchedule resources for each phase of the project.

Scheduling resources to project phases is handled by the resource management plan and the project schedule, not the cost management plan.

CIdentify costs that were not previously identified.

Identifying previously unknown costs falls under risk identification or integrated change control processes, not the execution of an existing cost management plan.

DDetermine if variances exceed a defined threshold.Correct

The cost management plan explicitly defines variance thresholds - the acceptable range between planned and actual costs - and specifies who must be notified and what actions are required when a variance exceeds that threshold, making it the primary tool for evaluating cost performance during execution.

Concept tested: Purpose of cost management plan during execution

Topics

#cost management plan#variance analysis#execution phase#cost control

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