CAPM Practice Question: Project Management Fundamentals and Core Concepts
A project team is working on a construction project. The project manager notices that the actual cost is consistently higher than planned. Which project management process is most directly responsible for monitoring and controlling costs?
⚠ Common exam trap
A common mix-up: candidates confuse the planning processes (Estimate Costs, Determine Budget) with the monitoring and controlling process (Control Costs), mistakenly thinking that planning includes ongoing cost oversight.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Control Costs
The Control Costs process is directly responsible for monitoring project expenditures and managing changes to the cost baseline. When actual cost consistently exceeds planned cost, the project manager must use Control Costs to analyze variance, forecast future costs, and implement corrective actions to bring spending back in line with the budget.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Estimate Costs
Why it's wrong here
This process develops an approximation of costs for project activities.
- ✗
Plan Cost Management
Why it's wrong here
This process defines how costs will be estimated, budgeted, and controlled.
- ✗
Determine Budget
Why it's wrong here
This process aggregates estimated costs to establish a cost baseline.
- ✓
Control Costs
Why this is correct
This process involves monitoring cost performance and managing changes to the cost baseline.
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