CAPM (Certified Associate in Project Management) Practice Exam

What basis is used for aggregating the estimated costs in the determine budget process?

1. Individual activities or work packages

2. Stakeholder risk tolerances

3. Organizational structures

4. Market conditions

The correct answer is: Individual activities or work packages

In the "Determine Budget" process, the basis used for aggregating the estimated costs is individual activities or work packages. Each activity or work package within the project is estimated for cost, and then these individual estimates are combined to provide an overall project budget. This bottom-up approach ensures that all project costs are accounted for and helps in creating a more accurate and realistic budget for the project. The other options (B, C, and D) are not the basis for aggregating estimated costs in the determine budget process. Stakeholder risk tolerances relate to risk management, organizational structures refer to the organizational framework or hierarchy within which the project operates, and market conditions are external factors that may influence the project but are not used as the basis for aggregating estimated costs in the determine budget process.