Complex projects such as research and development for new products often employ rolling wave planning to estimate costs. Which of the following best describes "rolling wave" planning? a. Project managers render a definitive estimate for the first stage and an order of magnitude estimate for the remainder of the project. b. Project managers render definitive estimates for all stages of the project during initiation. c. Project managers render an order of magnitude estimate for the first stage and a definitive estimate for the remainder of the project. d. Project managers render an order of magnitude estimate for all stages of the project.

A

Explanation:

In a Rolling wave technique, a project manager is able to plan a project while it is taking place.

An example is where a project manager is faced with a project that has to be done in 10 months. And after estimating costs, the financial resources available could only run for the first 3 months. In this case the first 3 months are already accounted for. This is the definitive estimate for the first stage.

As the project progresses and more financial resources are available, the following months can be planned.

A. Project managers render a definitive estimate for the first stage and an order of magnitude estimate for the remainder of the project.

Explanation:

Project managers should not lie to themselves or others regarding project costs. Fixed costs remain the same regardless of the size or volume of work, while variable costs vary directly with volume of use. The project scope does not come into play when considering fixed and variable cost choices.

To provide an up-to-date record of commitments and authorized within budgets so that unexpected over/under run costs do not result, ensuring that all transactions are properly recorded and authorised and, where appropriate, decisions are justified.