ExpertHard1 markMultiple Choice
PMP · Question 18 · Task 5: Plan and manage budget and resources
An agile project has a fixed budget but variable scope. The sponsor wants to know how the team tracks if they are on budget. Which metric is MOST appropriate for the project manager to present?
An agile project has a fixed budget but variable scope. The sponsor wants to know how the team tracks if they are on budget. Which metric is MOST appropriate for the project manager to present?
Answer options:
A.
Schedule Performance Index (SPI)
B.
Estimate to Complete (ETC)
C.
Velocity
D.
Cost Performance Index (CPI) or Burn rate
How to approach this question
Select the metric that specifically relates money spent to value/progress.
Full Answer
D.Cost Performance Index (CPI) or Burn rate✓ Correct
D
Task 5 involves monitoring budget variations. CPI is the standard efficiency metric. Burn rate is the agile term for run rate. Both answer 'are we on budget?'.
Common mistakes
Thinking Velocity tracks budget (it tracks throughput).
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