You are planning a software implementation project for a financial services company. The project sponsor has approved a budget of $500,000. During cost planning, you need to establish a performance measurement baseline that will be used to monitor and control project costs throughout execution. The baseline should integrate scope, schedule, and cost to enable earned value management. What should you create?

Question

Accepted Answer

The correct answer is A. The cost baseline is the approved, time-phased budget that integrates scope, schedule, and cost information, serving as the performance measurement baseline for earned value management. This is exactly what the scenario describes needing. The cost management plan (option C) describes how costs will be managed but is not itself the measurement baseline. Activity cost estimates (option D) are inputs to creating the baseline, not the baseline itself. Funding limit reconciliation (option B) ensures spending aligns with funding availability but is not the performance measurement baseline used for monitoring project performance.

More Process Questions