Often, the sum of the initial estimated costs is greater than the amount of funds budgeted by the sponsor.What should be done to arrive at an acceptable budget amount?
A) Cut the cost of the highest priced activity in half until the budget is reached.
B) Trade experienced and efficient resources for less experienced and less efficient resources.
C) Revise the budget expecting that several iterations may need to be made to reduce the costs.
D) Extend the scope of the project.

Question

Quizplus · Accepted Answer

The best approach is to revise the budget and look for ways to reduce costs. This may involve examining each activity or expense in detail and finding ways to cut costs without compromising the project objectives. It may take several iterations to arrive at an acceptable budget amount that aligns with the funding available. The other choices, such as cutting the cost of the highest-priced activity in half, trading experienced resources for less experienced ones, or extending the project scope are not optimal solutions as they may lead to poor quality outcomes or unrealistic expectations.

Often, the Sum of the Initial Estimated Costs Is Greater