Project Management Professional (PMP) — Question 1313

A member of the board of directors has asked the project manager for the estimated cost of the minimum viable product (MVP). The estimated cost is needed in order to get formal approval for this project.

How should the project manager report this cost?

Answer options

• A. Calculate the budget at completion (BAC) based on the completed and planned features.
• B. Determine the control accounts and use a top-bottom estimate.
• C. Estimate user story points and forecast a budget for that deliverable.
• D. Consider the cost performance index (CPI) based on earned value (EV) divided by costs.

Correct answer: C

Explanation

The correct answer is C because estimating user story points allows for a more accurate forecast of the budget needed for the MVP, which is crucial for formal approval. Options A and B focus on methods that may not provide a direct estimate for the MVP, while D involves performance measurement rather than initial cost estimation.