Project Management Professional (PMP) Exam Practice – Question1781

You are planning a project and want to account for how the project will be managed in the future. While building your cost performance data, you want to provide guidance for when the project is later executed, because you know that different responses are
required depending upon the degree of variance from the baseline. For example, a variance of 10 percent might not require immediate action, whereas a variance of 20 percent will require more immediate action and investigation. You decide to include the details
of how to manage the cost variances as part of which following plan?


A.
Cost management plan
B. Change management plan
C. Performance measurement plan
D. Variance management plan

Correct Answer: A

Explanation:

Explanation:
The management and control of costs focuses on variances. Certain variances are acceptable, and others, usually those falling outside a particular range, are unacceptable. The actions taken by the project manager for all variances are described in the cost
management plan.