This PMP practice question tests your understanding of people — leading projects. 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. The cost variance is due to higher-than-expected material costs. What should you do?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Perform a variance analysis, update the cost forecast, and consider corrective actions such as finding cost savings
Option D is correct because the PM must analyze the variance and forecast the impact before taking action. Option A is wrong because reducing scope without proper analysis may impact project objectives. Option B is wrong because asking for more budget without understanding the root cause is not justified. Option C is wrong because ignoring the variance could lead to further overruns.
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.
✓
Perform a variance analysis, update the cost forecast, and consider corrective actions such as finding cost savings
Why this is correct
Analyzing the variance and adjusting the forecast is a standard cost management practice.
Related concept
Read the scenario before looking for a memorised answer.
✗
Reduce the project scope to bring costs back in line
Why it's wrong here
Scope changes should go through change control after impact analysis.
✗
Continue as planned since the project is only 15% over budget
Why it's wrong here
Ignoring the variance could lead to budget depletion later.
✗
Request additional funding from the sponsor immediately
Why it's wrong here
The PM should first analyze the variance and prepare a case before requesting funds.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this PMP question in full detail.
Identify which PMP exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
People — Leading Projects — This question tests People — Leading Projects — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Perform a variance analysis, update the cost forecast, and consider corrective actions such as finding cost savings — Option D is correct because the PM must analyze the variance and forecast the impact before taking action. Option A is wrong because reducing scope without proper analysis may impact project objectives. Option B is wrong because asking for more budget without understanding the root cause is not justified. Option C is wrong because ignoring the variance could lead to further overruns.
What should I do if I get this PMP question wrong?
Identify which PMP exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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