- A
Inform the sponsor and stakeholders about the cost performance and planned actions.
Transparent communication with stakeholders is critical when performance deviates.
- B
Reduce quality testing to cut costs.
Why wrong: Reducing quality can lead to rework and increased costs later; PMI does not recommend cutting quality.
- C
Request additional budget immediately to cover the overrun.
Why wrong: Requesting more funds without first analyzing and presenting a recovery plan is premature.
- D
Implement cost control measures such as reducing scope or using cheaper resources.
After analysis, implementing corrective actions (through change control if needed) is appropriate.
- E
Conduct a variance analysis to understand the cause of the overrun.
Understanding root causes is essential to take effective corrective action.
Quick Answer
The answer is to conduct a variance analysis to understand the cause of the overrun, then communicate the cost performance to stakeholders, and finally implement corrective actions to bring costs back in line. This is correct because the PMBOK Guide’s cost control actions in project management require you to first diagnose the root cause of a negative variance—here, a CPI of 0.87—before taking corrective steps, ensuring that any changes address the actual problem rather than symptoms. On the PMP exam, this scenario tests your understanding of the Control Costs process, where a favorable schedule (SPI 1.02) often traps candidates into ignoring the budget overrun; remember, a project ahead of schedule can still fail if costs spiral. The key is to prioritize variance analysis over immediate scope cuts or schedule compression. Memory tip: “CPI low? Diagnose before you prescribe.”
PMP Process — Managing Technical Aspects Practice Question
This PMP practice question tests your understanding of process — managing technical aspects. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Your project is running 15% over budget at the midpoint. Earned value analysis shows CPI = 0.87 and SPI = 1.02. The project is ahead of schedule but over budget. Which THREE actions should you take?
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
Inform the sponsor and stakeholders about the cost performance and planned actions.
Option A is correct because the PMBOK Guide requires the project manager to proactively communicate cost performance and planned corrective actions to stakeholders and the sponsor, especially when the CPI is 0.87 (15% over budget). This transparency maintains trust and enables informed decision-making, such as approving a change request for additional funds or scope adjustments.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Inform the sponsor and stakeholders about the cost performance and planned actions.
Why this is correct
Transparent communication with stakeholders is critical when performance deviates.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Reduce quality testing to cut costs.
Why it's wrong here
Reducing quality can lead to rework and increased costs later; PMI does not recommend cutting quality.
- ✗
Request additional budget immediately to cover the overrun.
Why it's wrong here
Requesting more funds without first analyzing and presenting a recovery plan is premature.
- ✓
Implement cost control measures such as reducing scope or using cheaper resources.
Why this is correct
After analysis, implementing corrective actions (through change control if needed) is appropriate.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Conduct a variance analysis to understand the cause of the overrun.
Why this is correct
Understanding root causes is essential to take effective corrective action.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often jump to requesting more budget (option C) or cutting quality (option B) without first performing variance analysis, which is a required step in the PMI process for controlling costs.
Detailed technical explanation
How to think about this question
Earned value management (EVM) uses CPI = EV/AC to measure cost efficiency; a CPI of 0.87 means for every dollar spent, only $0.87 of work is earned. Variance analysis (option E) drills into the cost variance (CV = EV - AC) and schedule variance (SV = EV - PV) to determine if the overrun is due to scope creep, resource rate changes, or inefficiencies. Implementing cost control measures (option D) might include using cheaper resources or reducing scope, but only after the root cause is understood and a change request is approved.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the PMP exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Process — Managing Technical Aspects — study guide chapter
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FAQ
Questions learners often ask
What does this PMP question test?
Process — Managing Technical Aspects — This question tests Process — Managing Technical Aspects — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Inform the sponsor and stakeholders about the cost performance and planned actions. — Option A is correct because the PMBOK Guide requires the project manager to proactively communicate cost performance and planned corrective actions to stakeholders and the sponsor, especially when the CPI is 0.87 (15% over budget). This transparency maintains trust and enables informed decision-making, such as approving a change request for additional funds or scope adjustments.
What should I do if I get this PMP question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Same concept, more angles
1 more ways this is tested on PMP
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. A project is running over budget due to underestimation of effort. The project manager wants to bring costs under control. Which THREE actions are MOST appropriate?
hard- ✓ A.Submit a change request to reduce scope.
- B.Ask the team to work overtime without additional pay.
- ✓ C.Implement a continuous improvement program to reduce waste.
- ✓ D.Re-estimate the remaining work using bottom-up estimating.
- E.Fast-track remaining activities to finish earlier.
Why A: Option A involves process improvement (reducing waste). Option B reduces scope through change control. Option D re-estimates remaining work for accuracy. Option C is a potential reaction but not a control action; Option E is not recommended.
Last reviewed: Jun 24, 2026
This PMP practice question is part of Courseiva's free PMI certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PMP exam.
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