PMI Scheduling Professional Certification (PMI-SP) Practice Exam

What is a key benefit of proper cost management in projects?

1. Improvement in team motivation

2. Reduction of project scope

3. Controlled spending and budget adherence

4. Increased resource availability

The correct answer is: Controlled spending and budget adherence

Proper cost management in projects involves planning, estimating, budgeting, and controlling costs to ensure that the project can be completed within the approved budget. One of the key benefits of effective cost management is controlled spending and budget adherence. This means that financial resources are allocated accurately and monitored continuously to prevent overspending, which can jeopardize the entire project. When cost management is performed correctly, project managers have better visibility into expenditures and can make informed decisions about resource allocation, scheduling, and other critical components that affect both the project timeline and overall success. Moreover, adhering to the budget can help sustain stakeholder confidence, maintain the project scope as originally planned, and minimize financial risks. This disciplined approach to managing costs not only helps in satisfying stakeholders, but it also contributes to the overall profitability and sustainability of the project. By ensuring that spending is controlled, projects are more likely to be delivered on time and within financial constraints, which is essential for meeting organizational goals.