A Project Has a ??? of $850,000

question 495

Multiple Choice

A project has a ??? of $850,000. The project manager has identified and documented that certain key applications were not included in the scope management plan. As reported, the CPI is 0.8, and the PMO allows only a 5% additional increment to the planned budget. Which of the following should the project manager do NEXT?

• A) Add the required work to complete the project behind $892,500.
• B) Evaluate the impact and justify adding new work to the project.
• C) Obtain approval from the CCB.
• D) Request a budget increase of $170,000.

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Definitions:

Budget Constraint

A budget constraint represents the combination of goods and services that a consumer can purchase given their income and the prices of those goods and services.

Marginal Utility

The incremental enjoyment or value obtained from consuming an extra unit of a good or service.

Income-Consumption Curve

A graph that shows how a consumer's optimal bundle of goods changes as their income changes, all else being constant.

Marginal Utility

The change in satisfaction or utility gained from consuming an additional unit of a good or service.