PMP · Question #1435
A project manager's transformation project has been delayed due to unexpected issues with the information technology (IT) systems. These issues are likely to impact the project budget, but the…
The correct answer is C. Apply data analysis techniques, variance analysis, and trend analysis. D. Analyze the budget based on the revised estimates and responses from similar situations in the. Before proposing a budget rebaseline due to IT issues, the project manager must first conduct thorough data analysis, including variance and trend analysis, and analyze the budget using revised estimates and historical data.
Question
Options
- AConsider schedule compression techniques to shorten or accelerate the schedule duration
- BConsider using resource leveling to more accurately reflect the work commitments of the
- CApply data analysis techniques, variance analysis, and trend analysis.
- DAnalyze the budget based on the revised estimates and responses from similar situations in the
- ERaise a change request with high priority to be discussed in the upcoming governance meetings.
How the community answered
(23 responses)- A4% (1)
- B9% (2)
- C70% (16)
- E17% (4)
Why each option
Before proposing a budget rebaseline due to IT issues, the project manager must first conduct thorough data analysis, including variance and trend analysis, and analyze the budget using revised estimates and historical data.
Schedule compression techniques primarily address schedule impacts, but the question states the PM is working to ensure no impact on schedule; the primary focus here is validating budget changes.
Resource leveling is a scheduling technique to smooth resource allocation, not a primary step for justifying a budget rebaseline caused by unexpected IT issues.
Applying data analysis techniques like variance analysis (comparing actual costs to planned costs) and trend analysis (forecasting future performance based on past results) provides the necessary objective evidence and insights into the current budget status and future projections. This data is critical for a credible rebaseline proposal.
Analyzing the budget with revised estimates from the IT issues and leveraging historical data from similar situations provides a more accurate and defensible proposed rebaseline. This demonstrates due diligence and provides concrete, justifiable figures to present to management for approval.
Raising a change request is the outcome of the analysis and justification, not a preliminary action before proposing the rebaseline; the analysis must be done first to support the change request with valid data.
Concept tested: Project budget rebaselining, cost management analysis
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok
Topics
Community Discussion
9
Anjali D.Jul 3, 2026Our group landed on C and D for this one. C is correct because variance analysis and trend analysis are the go-to data analysis tools you use to understand exactly how the IT issues have affected the cost baseline and where things are heading. D complements that by having you analyze the budget using revised estimates informed by lessons learned from similar past situations, which gives your rebaseline proposal solid grounding. A few folks in our group were tempted by E, but raising a change request is what happens after you have done the analysis and are ready to act, not the preparatory step before proposing the rebaseline.
Ingrid P.Jul 3, 2026Solid call on C and D, and your group is right to exclude E, but make a flashcard on the distinction between variance analysis, which tells you where you are now versus baseline, and trend analysis, which projects where you are heading, because the exam will try to blur those two and my retention data shows people flip them at intervals around the three-week mark.
Lena V.Jul 5, 2026Confirmed C and D. PMI wants data analysis and historical input before rebaselining.
Orla P.Jul 8, 2026Good call, just make sure you know the difference between rebaselining (approved change request goes through the formal ICC process) versus simply updating the schedule baseline to reflect actual performance, because PMI loves baiting that distinction.
Ingrid P.Jul 5, 2026Confirmed C and D from my exam attempt last month. The stem is asking what happens before the rebaseline proposal, which means you need hard data and historical context to justify the new numbers. C gives you the variance and trend analysis to quantify the IT-driven cost overrun, while D anchors your revised estimates against how similar situations played out, which is exactly what governance wants to see before approving a budget change. I made a card pairing "before rebaseline" with "variance analysis plus historical comparison" because A and E are tempting traps that address schedule and process instead of the budget justification step.
Orla P.Jul 5, 2026C and D confirmed. You need variance analysis and historical data before rebaselining.
Samuel O.Jul 3, 2026I kept gravitating toward E because in my experience a budget problem always ends up in a governance meeting eventually, but then I remembered you cannot walk into that room and propose a rebaseline without first doing the variance and trend analysis (C) and grounding your new numbers in revised estimates and historical comparables (D), otherwise leadership will send you right back out the door to do the homework you skipped.
Toby R.Jul 5, 2026Honestly I went with E and C on this one and I feel good about it, because before you even think about walking into a budget rebaseline conversation with upper management, you need a formal change request on record, that is just basic governance and the PMBOK is pretty clear that changes of this magnitude go through proper channels first. The rebaseline IS the output of that process, not something you propose before triggering it.
Samuel O.Jul 7, 2026Toby, C is right but E is not quite the move here, the scenario is asking what you do once the change is already approved and the work has been authorized, so at that point you update the cost baseline to reflect the new scope and then formally document it all in the project management plan update, which is D.