Which option best describes the Cost Baseline?

• A. A schedule showing all project activities.
• B. A document listing all project risks.
• C. A plan for procurement management.
• D. A time-phased budget approved for comparing actual costs to planned costs.

Answer: (D)

A time-phased, approved budget that serves as the standard for measuring cost performance. This baseline is set during planning as part of the cost management process and is the reference you use to compare actual expenditures as the project progresses. It represents the planned costs spread over the project timeline and typically includes contingency reserves but excludes management reserves. It’s the foundation for cost performance measurement, used in methods like Earned Value Management to assess variances and cost performance indices. Other artifacts described, such as a schedule, a risks list, or a procurement plan, are not the cost performance baseline.