Exam PMP topic 1 question 523 discussion

Gonna go with A. This is a contingency, so its an unplanned cost. The cost management plan will only cover planned costs, when someone asks you "We need something thats not been planned for" you should first ask them why, in this case they've given you why and thats not an option, so A is the absolute best answer here.

It is also a good idea to check your reserves. However, you should first carefully consider whether there are other alternatives. Checking your reserves is one option.

B - because we need to check the budget on cost management plan document to address solution for the issue

The cost management plan outlines the procedures and guidelines for managing project costs, including addressing unexpected expenses or changes in resource requirements.

Contingency reserve is allocated for the pre-defined risks only, while the management reserve is allocated for the un-defined risks. the question didn't indicate if this a pre defined risk or not.. therefore, i can't cosume the contengency reserve. the cost managment plan has all the answers on what, how, when the project budget will be spent.

Contingency reserves are more specific and are based on current budget line items. A management reserve is added to cover additional uncertainty not foreseen in the budget. So A contingency reserve is not for that

Check if contingency funds are available first.

B. Review the cost management plan to determine how to address this issue. B then A

2.8.5.3 Management and Contingency Reserve Reserve is an amount of time or budget set aside to account for handling risks. Contingency reserve is set aside to address identified risks should they occur. Management reserve is a budget category used for unknown events such as unplanned, in-scope work.

A. Check the project budget to verify if there is enough contingency reserve

PM always "review xx plan " first

It's so confusing...we have 2 most voted answers A & B and B as highlighted correct answer. As a student, not sure about my answer, I don't know which one to consider as the right one... I'm bawling.

What do you do FIRST... The cost management plan will tell you if you have a contingency reserve.

What if no more contingency reserves are there ? reviewing the cost management plan must be done first.

According to Chat GPT: The correct answer is D. Submit a change request to increase the budget and buy new equipment. If the team has identified that obsolete equipment could negatively affect the project's final deliverable, it is the responsibility of the project manager to take action to mitigate the risk. In this case, the team has recommended purchasing new equipment, which suggests that it is the most appropriate solution to the problem. Therefore, the project manager should submit a change request to increase the project budget and buy new equipment. Options A and B suggest that the project manager should review the project budget or cost management plan, which is a good practice but doesn't address the issue at hand. Option C is not a viable solution since it ignores the team's recommendations and risks the success of the final deliverable.

I will go with A

I will go with B