Certified Associate in Project Management (CAPM) — Question 321

In a preliminary meeting for a project, team members decide to execute the project with agile methodology. A finance team member wants to know how project cost will be determined at this early stage.
How will the project team determine project cost?

Answer options

• A. Use a lightweight cost estimation due to the nature of agile projects
• B. Use a detailed cost estimation for agile projects
• C. Retrieve a budget from a previous project and create a baseline for this project based on it
• D. Use a detailed work breakdown structure (WBS) to get cost estimation

Correct answer: A

Explanation

The correct answer is A, as agile projects often allow for lightweight cost estimation due to their iterative nature and flexibility. Options B, C, and D suggest more detailed or rigid approaches that are not typically aligned with agile methodology, which emphasizes adaptability and incremental development.