Question

When creating a budget, a project manager must do which of the following? Select all that apply.

a. Budget for surprise expenses
b. Review and reforecast throughout the project
c. Understand stakeholder needs
d. Approve budget increases

Answer 1

When creating a budget, a project manager must budget for surprise expenses, review and reforecast throughout the project, and understand stakeholder needs.

Step-by-step explanation:

When creating a budget, a project manager must do the following:

• Budget for surprise expenses: It's important to allocate a portion of the budget to account for unforeseen costs that may arise during the project.
• Review and reforecast throughout the project: The project manager should regularly evaluate the budget and make adjustments as necessary to ensure it remains accurate and up-to-date.
• Understand stakeholder needs: It's crucial for the project manager to have a clear understanding of the needs and expectations of stakeholders in order to develop a budget that aligns with their requirements.

The project manager, however, does not have the authority to approve budget increases as this decision is typically made by higher-level personnel or stakeholders.