Determine Budget

Question 1

What is the purpose of the Determine Budget process?

Answer 1

To aggregate the estimated costs of individual activities or Work Packages to establish an authorized Cost Baseline.

Question 2

Which document would best assist you in performing Cost Aggregation?

Answer 2

Cost estimates are aggregated by Work Packages in accordance with the WBS, then aggregated for the higher component levels of the WBS and ultimately for the entire project.

Question 3

Where are Contingency Reserves and Management Reserves added?

Answer 3

Contingency Reserves are added to Work Package cost estimates whereas Management Reserves are added to the Cost Baseline to produce the project budget.

Question 4

What are aggregated in the Control Accounts?

Answer 4

The Work Package costs estimates, along with any Contingency Reserves estimated for Work Packages.

Question 5

What is the Cost Baseline?

Answer 5

The approved version of the budget, excluding Management Reserves.

Question 6

What is Funding Limit Reconciliation?

Answer 6

Variances between funding limits and planned expenditures may necessitate re-scheduling work. i.e. Quarterly budgets.