CAPMMedium

CAPM Practice: Demonstrate an understanding of project roles and responsibilities

Question 43 of 94 in Demonstrate an understanding of project roles and responsibilities

Pick an answer below — you'll get the explanation instantly, no signup.

Celine Novotny, a project manager at Keystone Structures, needs additional funding to address a scope change. Who is primarily responsible for approving this budget increase?

Show answer & explanation

Correct answer: The project sponsor

Explanation

The project sponsor is primarily responsible for securing and approving project funding. While a change control board may review changes, budget approval authority typically rests with the sponsor who has financial accountability for the project.

**Why not A:** While the change control board reviews and approves changes to the project plan, budget approval authority typically rests with the project sponsor. The CCB evaluates change impacts, but the sponsor holds the financial authority for funding increases.

**Why not B:** The project team performs work and provides expertise but does not have the authority to approve budget increases. Financial decisions of this magnitude require sponsor-level authorization.

**Why not C:** The project manager manages the budget but does not have the authority to approve increases beyond the approved baseline. Budget increases for scope changes must be authorized by the sponsor who controls the project's financial resources.

Key Concept

This question covers Demonstrate an understanding of project roles and responsibilities under Demonstrate an understanding of project roles and responsibilities (Project Management Fundamentals and Core Concepts).

All 1,500+ CAPM questions are free