Funding for Change Requests

A.

A change budget is typically used to cover the costs associated with implementing changes to a project. This budget is used to pay for things like additional resources, materials, and other expenses that may arise as a result of the change.

In this context, the correct answer to the question of which should be funded by a change budget is (A) Increase in agreed scope.

When the scope of a project is increased, it often requires additional resources or materials that were not originally accounted for in the project budget. These additional costs can be covered by a change budget. For example, if a project team decides to add a new feature to a software product, it may require additional programming time, new hardware or software licenses, and additional testing, all of which will come with costs.

The other options listed are not typically funded through a change budget:

(B) Initiation stage is the first stage of a project where the project is defined and scoped out. The costs associated with this stage are typically covered by the project budget.

(C) Change Authority is responsible for reviewing and approving changes to a project, and typically does not require funding.

(D) Handover activities are the final stage of a project where the project deliverables are transitioned to the project sponsor or end user. The costs associated with this stage are also typically covered by the project budget.

In summary, only an increase in agreed scope should be funded by a change budget.