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TOPIC: Difference between term cost and budget

Difference between term cost and budget 3 months 3 weeks ago #18287

  • Michelle Navarro
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Does PMI want us to use “cost” or “budget”?

As I’m studying and listening to the Prepcasts, it seems that Cost is usually used. However, a email last week used the term “budget” in the lesson, but the correct answer to the test question used the term "cost."

This is from the email: The A Guide to the Project Management Body of Knowledge (PMBOK® Guide) mentions six competing project constraints. Namely: Scope, Quality, Schedule, Budget, Resources, and Risk.

This is the sample question and answer:

Which of the following are the project constraints?
A.) Scope, Schedule, Budget, Personnel, Quality, Risk
B.) Scope, Schedule, Budget, Resources, Quality, Risk
C.) Scope, Schedule, Cost, Resources, Quality, Risk
D.) Scope, Schedule, Cost, Personnel, Quality, Risk

I picked answer B because it matched the email. However, the email said: C.) is correct. The competing project constraints that you as the project manager must balance are Scope, Quality, Schedule, Cost, Resources, and Risk.

I'm confused

Difference between term cost and budget 3 months 2 weeks ago #18378

  • Joe Pang
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Hello Michelle,

I have to agree that C is correct.

If I remembered correctly, the term budget was replaced with cost in the recent PMBOK revision. If you encounter similar questions in the future, always go with cost.
Toronto-based project manager, currently engaging in paperless transformation projects for utilities companies

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