PMI-ACP practice question 29 of 35

The customer asked the IT project manager to change a few specifications for the software being developed, which will affect the project budget. The financial sponsor is having difficulty approving changes to the budget that was already allocated to the project. What should the project manager do next?

Full set: 482 questions

Answer options

A: Explain that agile principles mandate that there should be a contingency budget for agile projects.

B: Request the team work overtime to get the work done on time and within the allocated budget.

C: Encourage the product owner and team to analyze the impact of the changes and prioritize the backlog. Correct answer

D: Review the contract documentation with the customer to clarity the specific agreed upon budget amount.

Correct Answer:

C. Encourage the product owner and team to analyze the impact of the changes and prioritize the backlog.

Explanation

When requested changes exceed the fixed budget, the product owner and team examine value, cost, and urgency, then reorder or trim backlog items so the project remains within the authorized funding envelope.

Why Incorrect

A. Contingency may not exist; statement does not solve the funding constraint.
B. Overtime violates sustainable pace and hides cost overruns.
D. Contract review focuses on past terms, not on collaboratively fitting new work into budget.

References

1. PMI. “Agile Practice Guide”

2017

§4.3 & Fig. 4-3 – advocates backlog reprioritization when scope or budget changes.

2. Schwaber & Sutherland. “Scrum Guide”

2020

“Product Backlog” section – PO reorders backlog upon change.

3. Leach

L. “Critical Chain Project Management Improves Project Performance”

Project Management Journal 30(2)

2018

pp. 10-12 – notes backlog reprioritization to respect constraints.

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