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Oliver 75 - 69th Question

jyotimayank
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Oliver 75 - 69th Question

Postby jyotimayank Fri May 06, 2016 9:33 am

Question 69.

Which statement describes best the meaning of the term cost baseline?

A. A cost baseline is always created by translating time-phased cost information into cost data on activity or work-package level.
B. A cost baseline is an approved time-phased budget that will be used to measure and monitor cost performance on the project.
C. Data to draw a cost baseline can be easily generated and updated as necessary from information related to actual project cost.
D. A cost baseline is usually displayed in the form of an inverse S-curve drawn from the beginning of the project until data date.
Jyoti Gupta
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Re: Oliver 75 - 69th Question

Postby Ananyapmp Tue May 10, 2016 11:39 am

B, approved time-phased budget that will be used to measure and monitor cost performance
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Re: Oliver 75 - 69th Question

Postby jyotimayank Fri May 13, 2016 10:22 am

Yes the correct answer is B.

PMBOK® Guide Fifth Edition Defines Cost Baseline as as

The approved version of the time-phased project budget, excluding any management reserves, which can only be changed through formal change control procedures and is used as a basis for comparison to actual results. It is developed as a summation of the approved budgets for the different schedule activities. baseline. Activity cost estimates for the various project activities along with any contingency reserves for these activities are aggregated into their associated work package costs. The work package cost estimates, along with any contingency reserves estimated for the work packages, are aggregated into control accounts. The summation of the control accounts make up the cost baseline.


Contingency reserves are the budget within the cost baseline but the management reserve is not included in the cost baseline but is part of the overall project budget and funding requirements.

Refer to page 212-215 of PMBOK® Guide Fifth Edition

For more insight of this topic refer to the following blog
http://www.izenbridge.com/blog/continge ... t-reserve/
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iZenbridge Consultancy Pvt Ltd

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