During the project planning phase, a project manager is determining budget considerations for an upcoming project. Which of the following should the project manager include in the project budget?
The projected profit that the project will generate upon completion
The cost of project resources, including staff salaries and equipment
The expected return on investment after project completion
The potential penalties for project delays or overruns
The project budget should include all direct costs associated with completing the project, such as the expenses for resources needed, including staff salaries and equipment purchases. These are essential for calculating the total cost required to execute the project successfully. While projected profit, return on investment (ROI), and potential penalties are important for overall project evaluation and risk management, they are not direct expenses and therefore are not included in the project budget calculations.
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What are direct costs in a project budget?
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Why are projected profits and ROI not included in the project budget?
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What types of project resources should be included in the budget?