Severe Variance

Submitted by ppalkonda1975 on Fri, 07/19/2013 - 02:25

 

You have recently taken over a new project. While studying the project information, you find out that cost variances are very severe. To provide a realistic basis for performance measurement, what should you recommend?
 
 
  Choice 1 Issue budget updates
 
  Choice 2 Revise the cost baseline
 
  Choice 3 Adjust schedule activity budget
 
  Choice 4 Close the project
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PMP / CAPM exam Question bank
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pmpnewster

Fri, 07/19/2013 - 02:34

 

Choice 2.

Cost Baseline needs to be revised. Most likely the original estimate was flawed.

 

Regards.

vikula01

Fri, 07/19/2013 - 02:36

I am not sure about it but when cost variance is severe there can be two reasons - poor planning or more changes - so I guess choice 2 might be right -

Please let me know

ppalkonda1975

Fri, 07/19/2013 - 02:37

 choice 2 is correct...but i have a question...if project sometimes is in extremely bad state then we should close the project and start fresh ...isnt it?

vikula01

Fri, 07/19/2013 - 02:44

The question didn't say that project is in bad shape - it said CV is high and what should we do to get the real performance - so its a hint that something is not right - yes we close the project if its in bad shape but not in this case I believe -

ppalkonda1975

Fri, 07/19/2013 - 02:47

 I went with the word "Severe" which meant extreme case for me and that's why i am confused....