PMP Certification Practice Test 6

Question : 11 of 72

Marks: +1, -0

You are a Project Manager in the early phase of estimating the cost of the project. You use the analogous method of estimating and have come up with the rough order of magnitude. While presenting it to your sponsor and stakeholders, one of the stakeholders asks if you have also done lifecycle costing for the project. What is your BEST response?

Project Cost estimating is primarily concerned with cost of the resources needed to complete the project and needn't consider any other costs
Since it is the initial stage of the project, cost details required for lifecycle costing of the project are not available and hence it is not relevant
Lifecycle costing provides the lowest long-term cost of ownership and should be used as a management decision tool, in case of alternatives
Lifecycle costing should be done by the Project Sponsor as it impacts long-term business decisions

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