You are preparing to complete the quantitative risk analysis process with your project team and
several subject matter experts. You gather the necessary inputs including the project’s cost
management plan. Why is it necessary to include the project’s cost management plan in the
preparation for the quantitative risk analysis process?

A.
The project’s cost management plan provides control that may help determine the structure for
quantitative analysis of the budget.

B.
The project’s cost management plan can help you to determine what the total cost of the project
is allowed to be.

C.
The project’s cost management plan provides direction on how costs may be changed due to
identified risks.

D.
The project’s cost management plan is not an input to the quantitative risk analysis process.

Explanation:

The cost management plan is an input to the quantitative risk analysis process because of the cost
management control it provides.
The cost management plan sets how the costs on a project are managed during the project’s
lifecycle. It defines the format and principles by which the project costs are measured, reported,
and controlled. The cost management plan identifies the person responsible for managing costs,
those who have the authority to approve changes to the project or its budget, and how cost
performance is quantitatively calculated and reported upon.
Answer D is incorrect. This is not a valid statement. The cost management plan is an input to the
quantitative risk analysis process.
Answer B is incorrect. The cost management plan defines the estimating, budgeting, and control
of the project’s cost.
Answer C is incorrect. While the cost management plan does define the cost change control
system, this is not the best answer for this