This PMP practice question tests your understanding of people — leading projects. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 well, but the variance is due to inaccurate cost estimates. What should the project manager do first?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "first"
Why it matters: Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Perform a root cause analysis to understand why estimates were inaccurate and develop a corrective action plan
The project manager should first perform a root cause analysis to understand why the cost estimates were inaccurate, as this addresses the fundamental issue rather than applying a superficial fix. This aligns with the PMBOK Guide's principle of identifying the root cause of a variance before taking corrective action, ensuring that the corrective action plan targets the actual problem and prevents recurrence.
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.
✗
Reduce the scope of remaining work to bring costs back in line
Why it's wrong here
Scope changes should be considered after understanding the cause of the overrun and assessing alternatives.
✗
Inform the team to cut costs wherever possible
Why it's wrong here
Without a clear plan, arbitrary cost-cutting may harm quality or schedule.
✗
Request additional budget from the sponsor to cover the overrun
Why it's wrong here
The PM should first analyze the variance and explore corrective actions before requesting more funds.
✓
Perform a root cause analysis to understand why estimates were inaccurate and develop a corrective action plan
Why this is correct
Understanding the root cause is essential to prevent recurrence and to decide on the best corrective action.
Clue confirmation
The clue word "first" 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 immediate corrective actions like cutting costs or requesting more budget, overlooking the PMP principle that the first step in addressing a variance is to analyze its root cause before implementing a solution.
Detailed technical explanation
How to think about this question
Root cause analysis (RCA) is a structured technique used to identify the underlying reasons for a variance, such as inaccurate cost estimates, which could stem from flawed assumptions, lack of historical data, or improper use of estimation techniques like analogous or parametric estimating. In real-world scenarios, skipping RCA often leads to recurring budget issues because the same estimation errors persist across project phases, whereas a corrective action plan derived from RCA can include revising the estimation process, updating the cost baseline, or implementing more rigorous review gates.
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: Perform a root cause analysis to understand why estimates were inaccurate and develop a corrective action plan — The project manager should first perform a root cause analysis to understand why the cost estimates were inaccurate, as this addresses the fundamental issue rather than applying a superficial fix. This aligns with the PMBOK Guide's principle of identifying the root cause of a variance before taking corrective action, ensuring that the corrective action plan targets the actual problem and prevents recurrence.
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: "first". Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
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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