PMI Scheduling Professional Certification (PMI-SP) Practice Exam

What is a likely output of the Control Cost process?

1. Independent estimates

2. Cost forecasts

3. New budgeting methods

4. Resource capacity plans

The correct answer is: Cost forecasts

In the Control Cost process, the primary objective is to monitor the project’s financial performance and ensure that actual expenditures align with the project budget. An essential output of this process is cost forecasts, which provide insights into the future financial status of the project based on historical performance and current tracking data. Cost forecasts help project managers anticipate future financial needs and identify any potential variance from the budget. By utilizing historical data and current performance trends, these forecasts inform decision-making throughout the remainder of the project. They incorporate elements such as current expenditures, remaining work, and the projected costs to complete the project. Independent estimates, new budgeting methods, and resource capacity plans are related to cost management but serve different functions. Independent estimates pertain to the initial planning phase where costs are estimated without bias from existing data, new budgeting methods focus on developing approaches for establishing budgets, and resource capacity plans address the availability and allocation of resources rather than direct cost control. Thus, while all these elements are crucial to project management, cost forecasts specifically emerge as a direct output from the Control Cost process.