Change Funding Options

D.

In this scenario, the Sales Director would like to add a new company logo to the marketing material. This change has been approved by the project board, but it is expected to delay the product and stage completion date by 3 days and cost £900.

There are two sources of funding available for this change: the stage 2 cost tolerance and the change budget. The stage 2 cost tolerance is the amount of money that can be spent on the stage 2 activities without going over budget, and the change budget is the amount of money set aside specifically for changes to the project scope.

The stage 2 cost tolerance of +£1,000 has not been used, which means there is still money available in this budget category. The change budget of £500 has not been used either, which means there is still money available in this budget category.

Option A suggests using £400 of the stage 2 cost tolerance and the £500 change budget to pay for the change. This would leave £100 of the stage 2 cost tolerance remaining, which could be used for other stage 2 activities if needed.

Option B suggests taking the full £900 needed for the change from the stage 2 cost tolerance. This would exhaust the stage 2 cost tolerance budget, but there would still be £500 available in the change budget.

Option C suggests requesting additional funding of £900 to pay for the change. This would be the most expensive option, as it would require additional budget approval and could delay the project further.

Option D suggests requesting an additional £400 in addition to the £500 change budget. This would leave the full stage 2 cost tolerance of £1,000 available for other stage 2 activities.

Based on the options given, the most cost-effective and feasible option is A, which suggests using £400 of the stage 2 cost tolerance and the £500 change budget to pay for the change. This would allow the project to stay within budget while still accommodating the change request.