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 team is working hard, but you suspect the original estimates were too optimistic. What is the BEST action to take?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "best"
Why it matters: Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Review the cost performance index (CPI) and estimate at completion (EAC) to determine the extent of the overrun and decide on corrective actions
Option D is correct because the first step when facing a budget overrun is to analyze the cost performance index (CPI) and estimate at completion (EAC) to quantify the variance and forecast the final cost. This data-driven approach allows you to determine whether the overrun is a trend or an anomaly, and then decide on appropriate corrective actions such as rebaselining, scope reduction, or efficiency improvements. Without this analysis, any action (like requesting more budget or cutting scope) would be premature and could worsen the project's outcome.
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.
✗
Immediately submit a change request for additional budget
Why it's wrong here
Submitting a change request without analysis may be premature.
✗
Ask the team to work overtime to get back on budget
Why it's wrong here
Overtime may lead to burnout and quality issues; it does not address estimation issues.
✗
Reduce the project scope to meet the original budget
Why it's wrong here
Scope reduction should follow change control after analysis.
✓
Review the cost performance index (CPI) and estimate at completion (EAC) to determine the extent of the overrun and decide on corrective actions
Why this is correct
Earned value management provides objective data to assess performance and forecast future costs.
Clue confirmation
The clue word "best" in the question point toward this answer.
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 a reactive solution (like requesting more budget or cutting scope) without first performing the quantitative analysis (CPI and EAC) that is required by the PMBOK Guide's 'Control Costs' process to validate the extent of the variance and determine the most appropriate corrective action.
Detailed technical explanation
How to think about this question
The Cost Performance Index (CPI) is calculated as EV/AC, where a CPI less than 1 indicates cost overrun. The Estimate at Completion (EAC) can be calculated using the formula EAC = BAC/CPI (assuming no future variance) or EAC = AC + (BAC - EV) (if future work will be at budgeted rate). In this scenario, with a 15% overrun at the midpoint, the CPI is likely around 0.85, and the EAC would be approximately BAC/0.85, indicating a projected total cost overrun of about 17.6% if the trend continues. This analysis helps the project manager decide whether to request a budget increase, implement cost controls, or renegotiate scope with stakeholders.
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this PMP question in full detail.
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: Review the cost performance index (CPI) and estimate at completion (EAC) to determine the extent of the overrun and decide on corrective actions — Option D is correct because the first step when facing a budget overrun is to analyze the cost performance index (CPI) and estimate at completion (EAC) to quantify the variance and forecast the final cost. This data-driven approach allows you to determine whether the overrun is a trend or an anomaly, and then decide on appropriate corrective actions such as rebaselining, scope reduction, or efficiency improvements. Without this analysis, any action (like requesting more budget or cutting scope) would be premature and could worsen the project's outcome.
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.
Are there clue words in this question I should notice?
Yes — watch for: "best". Signals that multiple options may be partially correct. Choose the option that most directly solves the exact problem described, not the one that sounds most complete.
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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