PMP Practice: Execute change management strategy according to the methodology

When a change is approved through the formal change control process, the project baseline must be updated to reflect the new scope, budget, and schedule. The new BAC equals the original BAC plus the additional budget approved for the change. In this case: $850,000 (original BAC) + $180,000 (approved additional budget) = $1,030,000. The fact that $380,000 has already been spent or that $425,000 of work has been completed does not affect the calculation of the new total budget—BAC represents the total authorized budget for all project work, not remaining budget. The approved change adds to the overall project authorization, creating a new performance measurement baseline against which future earned value metrics will be measured.

**Why not A:** Keeping the BAC at $850,000 after an approved scope change is incorrect. The change control board approved adding $180,000 to the budget, which must be reflected in an updated BAC. Failing to update the baseline would create inaccurate performance measurements going forward.

**Why not B:** $1,255,000 is an incorrect calculation. This figure would result from incorrectly adding both the actual cost and the change amount to the original BAC, which double-counts spending. The correct calculation is simply the original BAC plus the approved additional budget.

**Why not C:** $605,000 appears to be a calculation error, possibly subtracting values rather than adding the approved change to the original BAC. The new BAC must be higher than the original because approved scope additions increase the total authorized budget.