Program Management Professional (PgMP) — Question 43

You are a program manager for your organization. You have proposed a program to the management that will last four years and will cost $35 million to create.
Management has asked to see the program charter and the proposed costs and benefits of the program.
Management agrees to your program charter and proposed to fund the program in increments at the completion of each milestone. What type of funding does management proposed for this program?

Answer options

• A. Tentative
• B. Step funding
• C. Milestone approval
• D. Phase gate estimating

Correct answer: B

Explanation

The correct answer is B, as step funding refers to the approach where funding is released in stages based on the completion of specific milestones. The other options do not accurately describe this structured approach: 'Tentative' implies uncertainty, 'Milestone approval' suggests a review process rather than funding, and 'Phase gate estimating' is related to budgeting rather than funding mechanisms.