PK0-004 · Question #84
Which of the following describes a burn rate?
The correct answer is C. The rate at which the project budget is used. Burn rate is a project management metric that measures how quickly the project budget is being spent over time.
Question
Which of the following describes a burn rate?
Options
- AThe rate at which project documents are disposed
- BThe rate at which project personnel leave the project
- CThe rate at which the project budget is used
- DThe rate at which the timeline increases
How the community answered
(43 responses)- A2% (1)
- B7% (3)
- C86% (37)
- D5% (2)
Why each option
Burn rate is a project management metric that measures how quickly the project budget is being spent over time.
Disposal of project documents is governed by records management policies, not burn rate.
The rate at which personnel leave a project is referred to as attrition or staff turnover, not burn rate.
Burn rate specifically refers to the speed at which a project consumes its allocated budget, typically expressed as cost per unit of time. It is used to monitor spending velocity and forecast whether remaining funds will be sufficient to complete the project. A high burn rate relative to progress signals potential budget overrun.
An increasing timeline refers to schedule slippage or schedule variance, which is a separate metric from budget consumption.
Concept tested: Project budget burn rate definition
Source: https://www.pmi.org/learning/library/budget-burn-rate-project-control-6355
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