[pmpaspire]

Reconciliation of funding limits can necessitate that one process must be performed again with new constraints. What process is that?

A. Cost estimating.
B. Scheduling
C. Cost budgeting.
D. Communications planning.

I came across this question on one of the free test sites. My guesss was C. But as per the test result the answer is B.

Explaination is

Scheduling will have to be done again if funds are not scheduled to be available in time to meet the pre-existing schedule. New constraints, such as start no earlier than, will be imposed on some activities. PMBOK 7.2.2.1, p. 169

I referred to PMBOK 7.2.2.1 section but it does not have any conclusive referrence.

Can you please explain

Thanks in advance!

[ngulati78]

The answer pertains to Cost and it has to be between A and C. Now reconciliation here pertains to differences between the cost baseline and actual spending. If at all there has to be corrective actions that are required, it has to be on the baseline provided the changes are approved.

So my answer would be C. But its a very vaguely worded question.
Andrew probably can explain better, as always :-)

[AndrewStellman]

No need for me to add anything -- your answer is 100% correct. Funding limit reconciliation is one of the tools and techniques of the Cost Budgeting process, so the answer is C. The provided answer is incorrect, and I agree with you that the question is poorly worded.

[smartcode]

PMBOK page 178 says : A variance between the funding limits and the planned expenditures will sometimes necessitate the rescheduling of work to level out the rate of expenditures. So we need to rescheduling not the re-budgeting. Rescheduling the funding according to the funding limits on the commitment of funds for the project.

This post has been edited by smartcode: 25 November 2012 - 03:53 AM

[phamhong]

Agree with you
Thanks so much !