Project Management Professional (PMP) Exam Practice – Question1444

Assume that the project cost estimates have been prepared for each activity and the basis of these estimates has been determined. Now, as the project manager for your nutrition awareness program in your hospital, you are preparing your budget. Because you
have estimates for more than 1,200 separate activities, you have decided to first______________


A. Aggregate these estimates by work packages
B. Aggregate these estimates by control accounts to facilitate the use of earned value management
C. Use the results of previous projects to predict total costs
D. Set your cost performance baseline

Correct Answer: A

Explanation:

Explanation:
The WBS provides the relationship among all the project deliverables and their components and should be reviewed before the budget is developed. As the budget is determined, the cost estimates for the activities should be aggregated by the work packages in
the WBS. Then, later, they are aggregated for the control accounts and finally for the entire project.