CAPM Practice: Explain when it is appropriate to use a predictive, plan-based approach

The project charter formally authorizes the project and often includes initial budget authorization. Detailed budget authority is typically established through the project management plan and associated organizational policies. These documents define what the project manager can spend and what requires additional approval.

**Why not A:** Verbal agreements with functional managers lack the formal documentation needed to establish budget authority. Budget authority must be formally documented to provide clear accountability, prevent disputes, and satisfy organizational governance requirements.

**Why not B:** The project schedule defines when activities will occur, not who has authority to spend money. Budget authority is established through authorization documents, not scheduling documents. The schedule is a time management tool, not a financial governance instrument.

**Why not C:** Daily standup meetings are an agile ceremony for coordinating daily work, not a mechanism for establishing budget authority. Budget authorization requires formal documentation from organizational leadership, not team-level coordination meetings.