PMP Practice Question: Process — Predictive, Easy
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?
Study this topic
- 📖Financial Management for Project Managers: PMP 2026 Guide
Master financial management for the 2026 PMP exam. Learn budgeting, earned value, and business case analysis aligned with the expanded Business Environment domain.
- 📖Cost Estimation Techniques: From ROM to Definitive Estimates
Master the cost estimation methods tested on the PMP exam, from rough order of magnitude to definitive estimates, with practical examples and calculation techniques.
- 🗂️Flashcards: Earned Value Management (EVM) Formulas
16 cards · quick recall practice
More Process Questions
View all →You are managing a construction project with a fixed budget of $2.5 million and a 14-month timeline. During month 6, you conduct an earned value analysis and discover that the Cost Performance Index (CPI) is 0.85 and the Schedule Performance Index (SPI) is 0.92. The project sponsor asks you to forecast the final project cost and determine what actions are needed. Using the current performance trends, what is the most appropriate estimate at completion (EAC) if you believe current variances are atypical and future work will be performed at the planned rate?
You are leading a software development project using a predictive approach. The project sponsor has approved the project charter, and you are now ready to begin detailed planning. Your next step is to gather requirements from stakeholders to understand what the software must accomplish. Which process group are you currently working in?
You are managing a bridge construction project and have just completed developing the Work Breakdown Structure (WBS) with your team. Each work package has been defined and assigned a unique identifier. A team member asks what the lowest level of the WBS represents. How should you respond?