Which of the following statements below regarding the process of developing a project budget is true?The project manager should refer to the responsibility matrix when developing the budget.Overhead costs show the costs of external resources utilized by the project.The project manager may refer to budget estimates from prior projects.Budgeting for effort includes the costs for all non-people resources.
Question
Which of the following statements below regarding the process of developing a project budget is true?The project manager should refer to the responsibility matrix when developing the budget.Overhead costs show the costs of external resources utilized by the project.The project manager may refer to budget estimates from prior projects.Budgeting for effort includes the costs for all non-people resources.
Solution
The statement "The project manager may refer to budget estimates from prior projects" is true regarding the process of developing a project budget.
This is because historical data from similar projects can provide a valuable reference point when estimating costs for a new project. This can include information on how much was spent on different aspects of the project, how accurate the initial budget estimates were, and what unexpected costs arose. This information can help the project manager make more accurate budget estimates for the new project.
The other statements are not necessarily true. The responsibility matrix is a tool for identifying who is responsible for what in a project, but it doesn't directly inform the budget. Overhead costs typically refer to ongoing business expenses not directly tied to a specific project, not the costs of external resources. And budgeting for effort usually refers to the costs associated with the time and labor of the people working on the project, not non-people resources.
Similar Questions
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