PMP · Question #1138
During project execution, a project manager discovers that the budget at completion has shifted significantly and is higher than expected. What should the project manager do?
The correct answer is A. Perform a root cause analysis of the project performance.. When the budget at completion significantly increases during project execution, the project manager must first conduct a root cause analysis to understand why costs are higher than expected.
Question
During project execution, a project manager discovers that the budget at completion has shifted significantly and is higher than expected. What should the project manager do?
Options
- APerform a root cause analysis of the project performance.
- BAdjust the original budget estimates with the current cost variance.
- CReview the activity duration to reforecast the project completion date.
- DNegotiate the project changes and adjust stakeholder expectations.
How the community answered
(28 responses)- A79% (22)
- B7% (2)
- C4% (1)
- D11% (3)
Why each option
When the budget at completion significantly increases during project execution, the project manager must first conduct a root cause analysis to understand why costs are higher than expected.
Performing a root cause analysis of the project performance is the critical first step because it identifies the underlying reasons for the budget variance, rather than just reacting to the symptom. Understanding the root causes allows the project manager to implement effective corrective actions to control future costs and prevent recurrence.
Adjusting the original budget estimates based on current cost variance without understanding the root cause is merely updating the numbers without addressing the underlying problem causing the overruns.
Reviewing activity duration to reforecast the project completion date focuses on schedule, not directly on the budget at completion variance, though they can be related.
Negotiating project changes and adjusting stakeholder expectations is a response to the problem, but it requires a clear understanding of the problem's cause and scope, which comes from root cause analysis.
Concept tested: Cost control and variance analysis
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok/control-costs
Topics
Community Discussion
4
Zlatan X.Dec 19, 2025A is the right call here. When the BAC shifts significantly you need to understand the underlying drivers through root cause analysis before taking corrective action at the program or portfolio level, otherwise you are just reacting to symptoms without governance over benefits realization.
Orla P.Dec 21, 2025A is the pick here because a significant BAC shift means you need to understand why before touching numbers or talking to stakeholders. Is the idea that you never reforecast or negotiate until the root cause is documented, or are there cases where you would skip straight to stakeholder conversations if the variance is extreme?
Nina C.Dec 14, 2025Just to make sure I'm reading this right, the BAC shifted significantly higher during execution, so we're looking at what the PM does first before any corrective action or reforecasting, correct? If so, A is the answer because you have to figure out WHY the costs jumped before you can fix anything, and in PMP world the analyze step always comes before the act step. B and D are jumping ahead to solutions without understanding the problem, and C is mixing up cost with schedule. Saw almost this exact scenario on my exam last week and picked A because the word shifted told me something
Zlatan X.Dec 16, 2025Agreed on A, and from a program perspective that BAC shift likely traces back to a component interdependency or scope change rippling across projects, so root cause analysis also protects the benefits baseline at the portfolio level.