Certified Associate in Project Management (CAPM) — Question 163

A project team is working on relocating offices to another building and providing new furniture. The new furniture was purchased from an international vendor. The price was negotiated in a foreign currency, and due to changes in the exchange rate, the cost has increased by 10%. There is no contingency in the project budget.

What should the project manager do?

Answer options

• A. Escalate this issue to the procurement team.
• B. Escalate this issue to the project sponsor.
• C. Escalate this issue to the chief financial officer (CFO).
• D. Escalate this issue to the project management office (PMO).

Correct answer: B

Explanation

The project manager should escalate the issue to the project sponsor because they are responsible for approving changes to the project budget and scope. The procurement team, CFO, and PMO may play roles in the project, but they do not have the authority to make budgetary decisions like the project sponsor does.