Project Management Professional (PMP) — Question 853

A project manager is leading a multiyear project. Near the end of the first year, the project manager checks to see if the whole budget allocated for the year will be used. Some features utilizing this year's budget were added later in the year as change requests, but these features will not be ready by the end of the first year.

What should the project manager do?

Answer options

• A. Ask the team to test partially ready features and check if payment can be authorized with a signed formal acceptance.
• B. Authorize payment for the features ready this year and for the features planned for the following year that are now ready.
• C. Approach the product owner and the financial department to create a new nonbinding contract without fixed deliverables.
• D. Provide an update to the financial department regarding the status of the time line of the project.

Correct answer: D

Explanation

The correct answer is D because providing an update to the financial department about the project's timeline is essential for budget management and future planning. Options A and B are incorrect because they suggest authorizing payments for features that are not fully ready, which is not a proper financial practice. Option C is also not appropriate as creating a nonbinding contract without fixed deliverables could lead to confusion and mismanagement of resources.