PMP · Question #865
A member of the board of directors has asked the project manager for the estimated cost of the minimum viable product (MVP). The estimated cost is needed in order to get formal approval for this proje
The correct answer is C. Estimate user story points and forecast a budget for that deliverable.. For an MVP in an agile context, the project manager should estimate the cost by forecasting the budget based on estimated user story points, as this provides a common measure for work in agile projects.
Question
Options
- ACalculate the budget at completion (BAC) based on the completed and planned features.
- BDetermine the control accounts and use a top-bottom estimate.
- CEstimate user story points and forecast a budget for that deliverable.
- DConsider the cost performance index (CPI) based on earned value (EV) divided by costs.
How the community answered
(40 responses)- A15% (6)
- B3% (1)
- C75% (30)
- D8% (3)
Why each option
For an MVP in an agile context, the project manager should estimate the cost by forecasting the budget based on estimated user story points, as this provides a common measure for work in agile projects.
Budget at Completion (BAC) is a traditional project management term used for the entire project budget, not typically for an MVP's initial approval in an agile context where scope may evolve.
While control accounts are part of cost management, a top-bottom estimate is a high-level estimate, and for an MVP, stakeholders usually expect a more refined estimate based on the defined features rather than just a high-level approach.
In an agile context, especially for an MVP, user stories are the primary units of work. Estimating user story points and then translating those into a forecasted budget is a common and appropriate method for providing an estimated cost for a deliverable like an MVP to stakeholders for approval.
The Cost Performance Index (CPI) is an earned value management (EVM) metric used during project execution to assess cost efficiency, not for an initial estimate of a future deliverable like an MVP for approval.
Concept tested: Agile cost estimation for MVP
Source: https://www.pmi.org/learning/library/agile-estimates-planning-uncertainty-6020
Topics
Community Discussion
6
Mei-Ling H.Mar 28, 2026C is correct. The key word in the stem is "MVP", which means you are in an agile environment, so estimating user story points for that specific deliverable is the right approach. Option A is a trap because BAC refers to the total project budget, not just the cost of the MVP slice.
Luis F.Apr 7, 2026Picked C on my exam last month and the user story points approach is definitely what they want here. Since the board just needs the MVP cost for approval, you're working with an agile deliverable so story points make the most sense for forecasting that specific scope. A is wrong because BAC is for the whole project baseline, not just the MVP slice, and D assumes you already have actual costs which you wouldn't have at the approval stage. One thing I'm still fuzzy on though, does anyone know if the PMI exam always ties MVP questions to agile estimation practices, or can an MVP
Wesley A.Apr 8, 2026First time around I picked A because BAC sounded like the right financial metric for a cost ask, but the trap is that BAC covers the full project scope and the board specifically wants the MVP cost only. C is the right move because in an agile context you estimate the MVP deliverable through story points and forecast a budget from that, which is exactly what the question is describing.
Nina C.Apr 10, 2026Agreed on C, and the other trap is that A mentions a dollar figure which sounds concrete, but BAC is baseline total cost so it pulls focus from the MVP slice the board asked about.
Nina C.Apr 11, 2026Going with B. Board wants a rough number for approval, so top-down fits.
Wesley A.Apr 14, 2026Actually C is the right call here, Nina. Top-down gives you that rough board estimate, but the question is asking for the approach that breaks work down into detailed task-level costs, which is bottom-up.