PMI CAPM (Certified Associate in Project Management) Examination Content OutlinePredictive, Plan-Based MethodologiesMedium
A project manager is overseeing a complex infrastructure project. Due to unforeseen material cost increases and unexpected ground conditions, the project's projected total cost is now significantly higher than the original budget. The project manager needs to formally document and communicate this change to stakeholders, and ensure that the project budget is updated to reflect the new reality. Which project management process is primarily concerned with this activity?
- ADetermine Budget
- BControl Costs
- CPlan Cost Management
- DEstimate Costs
Show answer & explanationAnswer & explanation
Correct answer: B. Control Costs
Control Costs is the process of monitoring the status of the project to update the project budget and managing changes to the cost baseline. It involves identifying variances and taking corrective actions, including documenting and communicating changes.
Why the other options are wrong
- A. Determine Budget aggregates cost estimates to establish an authorized cost baseline, but doesn't handle changes after baseline approval.
- C. Plan Cost Management defines how costs will be managed, not the actual management of changes.
- D. Estimate Costs involves developing an approximation of the monetary resources needed, not managing changes to it.
Control Costs
The process of monitoring the status of the project to update the project budget and managing changes to the cost baseline. It ensures that expenditures do not exceed the authorized funding.
- Monitors cost performance.
- Manages changes to the cost baseline.
- Involves documenting and communicating cost variances.
Memory trick: Plan, Estimate, Determine, then Control the Costs.