Change Budget: Funding Changes in Project Management

A.

A change budget is a budget allocated to cover the costs associated with project changes that may occur during the project life cycle. The purpose of the change budget is to ensure that any changes that may be necessary for the project are adequately funded and that there are no surprises in terms of unexpected costs.

Out of the options given, the answer that is most appropriate for funding through a change budget is an "Increase in agreed scope."

A change budget is typically used to fund changes that are not included in the original project scope or budget. In other words, a change budget is used to fund changes that are beyond the original scope of the project.

In the case of an increase in agreed scope, this implies that the project scope has been increased from the original scope, which means that additional funding will be required to cover the costs associated with the new scope. This can include additional resources, materials, or other expenses that were not included in the original budget.

The initiation stage, change authority, and handover activities are not appropriate for funding through a change budget.

The initiation stage is part of the original project scope and budget, and its costs should be covered by the original budget.

Change authority is the body responsible for managing changes to the project scope, schedule, or budget. Change authority does not require additional funding beyond what is already allocated for project management activities.

Handover activities are activities that occur towards the end of the project, where the final deliverables are transferred to the client or end-users. These activities are typically included in the original project scope and budget, and should not require additional funding beyond what is already allocated.

In summary, the appropriate option that should be funded by a change budget is an increase in agreed scope.