An organization's budget estimating process routinely misses the actual cost of a project by 25%.For the most recent project,the budget variance was a ridiculous 23%,but this must be considered common cause variance.

Question

Quizplus · Accepted Answer

The statement indicates that the organization's budget estimating process routinely misses the actual cost of a project by 25%, so a 23% budget variance would fall within the expected range of common cause variance. Therefore, option A is correct.

An Organization's Budget Estimating Process Routinely Misses the Actual Cost