Cost Management Question 3

[Gary]

You have just completed the initiating processes of a small project and are moving into the planning process when a project stakeholder asks you for the project budget and cost baseline. What should you tell her?

a) The project budget can be found in the project charter, which has just been completed
b) The project budget and baseline will not be finalized and accepted until the planning processes are completed.
c) The project management plan will not contain the project’s budget and baseline : this is a small project
d) It is impossible to create an estimate before the project management plan is created.

[Gary]

The correct answer is B.

The overall project budget (choice A) may be included in the project charter but not the detailed costs. Even small projects (choice C) should have a budget and schedule. It is not impossible to create a project budget before the project management plan is created (choice D). It is just not wise, as the budget will not be accurate.

[Author]

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