PMP Exam Simulator

Duration

Questions

Accelerate Mock ExamDisplay correct answer

PMP exam lasts 230min and has 180 questions

Use acceleration to have extra 30m in reserve on exam

Cost Management

Peter is an experienced project manager of the organization. He has been requested by one of the customers to provide a written cost estimate that is 30% higher than Peter's estimate of the project's cost. The customer clarifies that the budgeting process requires managers to estimate pessimistically to make sure enough funds are allocated for projects. What should Peter do in this situation?

Add 30% to the cost estimate by spreading it evenly across all project activities.

Create one cost baseline for budget allocation and a second one for the actual project management plan.

Ask for information on risks that would cause the estimate to be too low.

Add 30% as a lump sum contingency fund to handle project risks.