CAPM Practice: Demonstrate an understanding of a project management plan schedule
Question 32 of 85 in Demonstrate an understanding of a project management plan schedule
Pick an answer below — you'll get the explanation instantly, no signup.
Show answer & explanation
Correct answer: Present the cost-schedule trade-off to the sponsor for approval before committing to the additional cost
Explanation
Crashing adds cost to the project. Before committing to $45,000 in additional expenditure, the project manager should present the trade-off to the sponsor: the cost of crashing versus the cost/consequences of being late. The sponsor, as the business decision-maker, should approve the additional cost before it is incurred.
**Why not A:** Seeking alternative compression methods could be explored, but the question states the project can only meet its deadline by crashing these three activities. The PM has already done the analysis; the next step is to get approval for the cost, not to continue searching for alternatives.
**Why not C:** Deferring the schedule decision until the next status report delays action on a known problem. The analysis is complete and the cost-schedule trade-off is clear. Waiting another reporting period wastes time that could be used for schedule recovery.
**Why not D:** Implementing the crashing immediately without sponsor approval commits $45,000 in additional expenditure without authorization. Budget changes of this magnitude require formal approval from the sponsor or appropriate authority before the additional cost is incurred.
Key Concept
This question covers Demonstrate an understanding of a project management plan schedule under Demonstrate an understanding of a project management plan schedule (Predictive, Plan-Based Methodologies).
All 1,500+ CAPM questions are free
Sign up to track your progress, see detailed analytics, and get personalized study recommendations.
Sign Up Free