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CAPM Practice: Demonstrate an understanding of project roles and responsibilities

Question 73 of 94 in Demonstrate an understanding of project roles and responsibilities

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Alexei Haddad, a project manager at Xenon Health, needs approval to allocate additional budget for a critical project milestone. Who is primarily responsible for approving this request?

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Correct answer: The project sponsor, who provides financial resources and high-level direction

Explanation

The project sponsor is responsible for providing financial resources and making high-level decisions about budget allocation. While the project manager manages the budget, the sponsor approves significant changes or additional funding requests.

**Why not A:** The functional manager controls departmental resources but does not typically approve additional project budget allocations. Budget approval for project milestones falls under the sponsor's authority, as sponsors are accountable for the project's financial resources.

**Why not C:** The project team performs the work but does not have authority to approve additional budget. Budget approval requires organizational authority above the project team level, which is held by the sponsor.

**Why not D:** While the project manager manages the day-to-day project budget, approving additional budget allocation beyond the approved baseline requires higher authority. The project manager can request additional funds but typically cannot self-approve significant budget increases.

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).

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