You have just learned that the price for an important material element of your project is much higher than expected. You must proceed with the acquisition of the material; however, you recognize that the cost baseline for the project must be updated. Which of the following documents will define the procedure for updating the project’s cost baseline?
- Chart of accounts
- Responsibility assignment matrix
- Work breakdown structure
- Cost management plan
The correct answer is 4
Cost management plan is the correct answer because it is the component of the project management plan that defines how the processes of cost management will be approached and executed, and thus describes how the Control Costs process manages changes to the cost performance baseline.