CAPM Practice: Demonstrate an understanding of common problem-solving tools and techniques

Variance analysis compares actual results to the baseline to understand the magnitude and nature of the deviation. Trend analysis examines performance over time to determine if the situation is improving or worsening. Both are appropriate here: variance analysis identifies the gap, while trend analysis reveals the pattern.

**Why not A:** Trend analysis alone examines performance patterns over time but does not fully explain the magnitude and nature of the deviation. While it reveals whether the situation is improving or worsening, combining it with variance analysis provides a more complete understanding of the consistent cost overruns.

**Why not B:** Variance analysis alone compares actual costs to the baseline to identify the gap but does not examine the pattern over multiple reporting periods. Both variance analysis and trend analysis together provide the complete picture — the deviation size and the performance trajectory.

**Why not D:** Root cause analysis investigates why a problem occurs, which is a valuable follow-up step. However, the question asks about understanding the trend of consistent overruns, which requires both variance analysis (to quantify the deviation) and trend analysis (to assess the pattern over time).