7.3 Determine Budget (Cost MGMT)

Question 1

what is 7.3 determine budget?

Answer 1

aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline

Question 2

what is the key benefit to 7.3 determine budget?

Answer 2

determines the cost baseline against which project performance can be monitored and controlled

Question 3

when is 7.3 determine budget performed during the project?

Answer 3

once or at predefined points

Question 4

7.3 determine budget - inputs

Answer 4

1. project management plan (3)
2. project documents (4)
3. business documents (2)
4. agreements
5. EEF
6. OPAs

Question 5

what project management plan inputs are relevant to 7.3 determine budget

Answer 5

a. cost management plan
b. resource management plan
c. scope baseline

Question 6

what project documents are relevant to 7.3 determine budget?

Answer 6

a. basis of estimates
b. cost estimates
c. project schedule
d. risk register

Question 7

what business documents are relevant to 7.3 determine budget?

Answer 7

a. business case

b. benefits management plan

Question 8

7.3 determine budget - tools and techniques

Answer 8

1. expert judgement
2. cost aggregation
3. data analysis (1)
4. historical information review
5. funding limit reconciliation
6. financing

Question 9

what data analysis tools and techniques are relevant for 7.3 determine budget?

Answer 9

a. reserve analysis

Question 10

what is funding limit reconciliation

Answer 10

exposing variances between the funding limits and the planned expenditures - potentially necessitating the rescheduling of work to level out the rate of expenditures

Question 11

7.3 determine budget - outputs

Answer 11

1. cost baseline
2. project funding requirements
3. project document updates (3)

Question 12

what project document update outputs are relevant for 7.3 determine budget?

Answer 12

a. cost estimates
b. project schedule
c. risk register

Question 13

what is the cost baseline?

Answer 13

• approved version of the time-phased project budget, excluding management reserves
• can only be changed through formal change control procedure
• summation of the approved budgets for the different schedule activities
• typically displayed in the form of an S-curve

Question 14

what are project funding requirements?

Answer 14

• derived from the cost baseline

- includes projected expenditures plus anticipated liabilities