2. During project execution, several unexpected issues have developed and are now threatening the
project schedule and budget.
What is the best course of action for the project manager to address the issues?
A. Use contingency reserves
B. Review project funding requirements
C. Use management reserves
D. Review organizational process assets
HINT: Which type of reserve is not included in the cost baseline?
Question
3. Note that the scenario describes issues, while the explanation refers to risks. Prospective PMP
aspirants should keep in mind that the questions on the real PMP exam may have such discrepancy
in their wording.
The correct answer is C.
The total project budget includes the cost baseline plus the management reserves. The cost baseline
is comprised of the work package estimates and contingency reserves. The contingency reserves are
allocated for identified risks. Management reserves are withheld for unforeseen risks that affect the
project.
According to the scenario, the issues developed during the project were unexpected. Therefore, of the
choices provided, using the management reserves is the best course of action for the project
manager.
Answer
4. All our questions are updated to the latest
A Guide to the Project Management Body of Knowledge
(PMBOK® Guide) standard.
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