Oliver 175 - 80th question

thiru26@gmail.com
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Oliver 175 - 80th question

Postby thiru26@gmail.com Mon Oct 12, 2015 5:15 pm

80. You are assigned as a project manager for an internal project. During cost planning and budgeting you discovered that there are peak times of costs during the project and other times when costs are fairly low. What could this mean for the project?
o The fiscal budget mechanism which is used by the performing organization may not allow for cost peaks in your project, and you may have to level out expenditures over time.
o You can silently create budget contingencies during low-cost periods and re-use them later during those periods when you have to cover peak levels in project costs.
o You may find another project manager with a project that has a different rhythm of high and low costs. Then, you may be able to move budget during one project’s low cost periods to the other project.
o You are a project manager and work with a lifecycle budget for your project. Fiscal budgets are a matter of the functional organization, and you have generally not to care about them.
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Re: Oliver 175 - 80th question

Postby manishpn Mon Oct 12, 2015 6:17 pm

if we go by elimination option A seems closest and best fit


thiru26@gmail.com wrote:80. You are assigned as a project manager for an internal project. During cost planning and budgeting you discovered that there are peak times of costs during the project and other times when costs are fairly low. What could this mean for the project?
o The fiscal budget mechanism which is used by the performing organization may not allow for cost peaks in your project, and you may have to level out expenditures over time.
o You can silently create budget contingencies during low-cost periods and re-use them later during those periods when you have to cover peak levels in project costs. - Contigencies are not planned for specific duration, they are planned based on risks which can occur anytimt
o You may find another project manager with a project that has a different rhythm of high and low costs. Then, you may be able to move budget during one project’s low cost periods to the other project. this is not practical neither receomended
o You are a project manager and work with a lifecycle budget for your project. Fiscal budgets are a matter of the functional organization, and you have generally not to care about them.
thats not true, PM has to consider organizations fiscal budget while doing project budget and expenditur eplanning
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thiru26@gmail.com
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Re: Oliver 175 - 80th question

Postby thiru26@gmail.com Tue Oct 13, 2015 1:59 am

Yes, Option 1 is correct answer.

Below link has explanation.
http://pmzilla.com/question-peak-cost

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