PMI Scheduling Professional Certification (PMI-SP) Practice Exam

What is one of the outputs of the Determine Budget process?

1. Resource management plan

2. Cost baseline

3. Project schedule

4. Quality management plan

The correct answer is: Cost baseline

The cost baseline is a critical output of the Determine Budget process within project management. This process involves aggregating the estimated costs of individual schedule activities to establish an overall budget that reflects the project's financial constraints. The cost baseline serves as a key reference point throughout the project for measuring and controlling costs. It includes the approved version of the project budget, which integrates all cost estimates and provides a basis for performance measurement. This means that as the project progresses, actual costs can be compared to the cost baseline to determine if the project is on track financially. Any variations from this baseline can prompt the project manager to take corrective action to keep the project within budget. In contrast, while the resource management plan, project schedule, and quality management plan are essential elements of project planning, they do not directly stem from the Determine Budget process. Each of these components serves different purposes: the resource management plan focuses on managing project resources, the project schedule outlines the timing of project activities, and the quality management plan ensures the project meets quality standards. Therefore, the cost baseline is the correct output associated specifically with the Determine Budget process.