Project Management Professional (PMP) Exam Practice – Question1438

Overall cost estimates must be allocated to individual activities to establish the cost performance baseline. In an ideal situation, a project manager would prefer to prepare estimates______________


A.
Before the budget is complete
B. After the budget is approved by management
C. Using a parametric estimating technique and model specific for that project type
D. Using a bottom-up estimating technique

Correct Answer: A

Explanation:

Explanation:
Often project cost estimates are prepared after budgetary approval is provided. However, activity cost estimates should be prepared before the budget is complete.