Project Management Professional (PMP) — Question 541

A project manager is leading a project which shows a trend to exceed the cost baseline.
What should the project manager do first to manage the budget?

Answer options

• A. Ask the project sponsor for assistance in getting the budget back on track
• B. Meet with the project team to analyze the actual cost to determine deviations
• C. Inform the stakeholders that the project will be finished over budget
• D. Issue a change request including the analysis to increase the budget

Correct answer: B

Explanation

The correct answer is B because analyzing the actual costs with the project team allows the project manager to understand the reasons for the budget deviation before taking further action. Options A and D may be considered later, but they are premature without understanding the current financial situation. Option C does not address the management of the budget and only informs stakeholders of a negative outcome.