A program manager is developing the financial framework for a program that has high uncertainty in cost estimates. The funding committee requires a reliable basis for authorization, but the program manager has limited historical data. What should the program manager do to provide a credible financial framework?

Provide a range of estimates with assumptions and a recommended contingency.

Present a single-point estimate based on the most likely costs.

Use the highest possible estimate to ensure sufficient funding.

Use the lowest possible estimate to make the program more attractive.

A program manager is preparing the financial framework for a new product development program. The organization's funding committee requires a high-level estimate of costs and funding requirements to authorize the program. What should the program manager include in the financial framework?

A detailed bottom-up cost estimate for every work package.

A range of cost estimates and the funding needed to support the program through its lifecycle.

Only the nonfinancial benefits, since costs are secondary.

The final approved budget for each project in the program.

A program manager is justifying funding for a program that will improve employee safety and reduce workplace accidents. The financial benefits are difficult to quantify, but the program is a regulatory requirement. The funding committee is hesitant to approve because the financial return is not clear. What should the program manager do?

Emphasize the nonfinancial benefits and the regulatory requirement.

Postpone the program until financial benefits can be quantified.

Reduce the program scope to lower costs and make it more attractive.

Focus only on the financial benefits that can be estimated.

A program manager is developing the roadmap for a program that must align with a new corporate strategy announced by the CEO. The executive sponsor wants the roadmap approved quickly, but the program manager has identified that the current roadmap does not fully reflect the new strategy. What should the program manager do?

Ask the sponsor to approve the roadmap and then update it after the strategy is clarified.

Delegate the roadmap revision to the project managers.

Present the roadmap as-is and note that adjustments will be made during planning.

Revise the roadmap to align with the new strategy before seeking approval.

Why is it important to establish a baseline for the program roadmap and financial framework?

To provide a reference point for measuring program performance

To guarantee that the program will be completed on time and within budget

To ensure that all projects within the program have identical plans

To eliminate the need for any changes during the program

PMIProgram Management Professional (PgMP)

Domain 1Objective 2

Develop Program Roadmap and Financial Framework PGMP Practice Questions (Page 6)

Part of the Strategic Program Alignment domain, which accounts for 15% of the PGMP exam. PMI does not publish an official question count, but from its 240-minute exam (~95–160 total, ~14–24 in this domain), expect 4–6 from this objective — we provide 30 practice questions to prepare you well beyond it. (estimate)

30questions here

6free pages

6concepts

15%of the exam

Questions 26–30

26expert · hard
A program manager is developing the financial framework for a program that has high uncertainty in cost estimates. The funding committee requires a reliable basis for authorization, but the program manager has limited historical data. What should the program manager do to provide a credible financial framework?
Select an answer first
27application · medium
A program manager is preparing the financial framework for a new product development program. The organization's funding committee requires a high-level estimate of costs and funding requirements to authorize the program. What should the program manager include in the financial framework?
Select an answer first
28expert · hard
A program manager is justifying funding for a program that will improve employee safety and reduce workplace accidents. The financial benefits are difficult to quantify, but the program is a regulatory requirement. The funding committee is hesitant to approve because the financial return is not clear. What should the program manager do?
Select an answer first
29expert · hard
A program manager is developing the roadmap for a program that must align with a new corporate strategy announced by the CEO. The executive sponsor wants the roadmap approved quickly, but the program manager has identified that the current roadmap does not fully reflect the new strategy. What should the program manager do?
Select an answer first
30foundation · easy
Why is it important to establish a baseline for the program roadmap and financial framework?
Select an answer first

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Develop Program Roadmap and Financial Framework PGMP Practice Questions (Page 6)

Questions 26–30

A program manager is preparing the financial framework for a new product development program. The organization's funding committee requires a high-level estimate of costs and funding requirements to authorize the program. What should the program manager include in the financial framework?

Why is it important to establish a baseline for the program roadmap and financial framework?

Keep studying — Strategic Program Alignment