48. Due to an error in the change approval and tracking system, a revision in the cost to complete a work package was not properly documented and was carried through to higher level cost accounts.
Answer: A
There will be a cost variance.
The failure to document a revision in the cost to complete a work package leads to discrepancies between the actual and budgeted costs, resulting in a cost variance.
A) There will be a cost variance.
This option is correct as it directly addresses the consequence of not properly documenting changes in cost. When a revision is not tracked, the project’s financial records will reflect inaccuracies, leading to variances that affect overall project budgeting and financial analysis.
B) Additional resources will be assigned.
This option is incorrect as it implies a proactive response to resource allocation, which is not indicated by the context. The error in documentation does not automatically necessitate the assignment of additional resources; instead, it highlights a lack of oversight in financial tracking.
C) The project will finish ahead of schedule.
This option is incorrect because the failure to document cost changes could actually hinder project progress rather than accelerate it. If costs are mismanaged or underestimated, it may lead to delays in project completion rather than an early finish.
D) A single work package will have no effect on the project.
This option is incorrect as it minimizes the impact of cost changes. Even a single work package can significantly affect overall project costs and financial health, particularly if the changes are not documented and accounted for properly.
Conclusion
The identification of a cost variance as the correct answer underscores the importance of accurate documentation in project management. All other options fail to recognize the implications of improperly tracked changes, which can lead to broader financial discrepancies and affect project performance.