If Annie is to maintain positive control of the project budget, which of the following would be considered a necessary consideration?

• A. Monitor resource utilization only
• B. Compare actual expenditures against commitments
• C. Approve all vendor contracts
• D. Ensure staffing levels meet minimums

Answer: (B)

Tracking and controlling the project budget requires comparing actual expenditures against commitments. Commitments are binding obligations already made, such as purchase orders and signed contracts, that will lead to future cash outflows. By continuously aligning what has actually been spent with what has been committed, you get a real-time picture of spending against the plan and can spot variances early.

This approach helps maintain positive budget control because it links the money you have committed to spend with the money you have actually paid or are about to pay. If actuals rise above commitments or diverge from the forecast, you can reforecast, reallocate resources, or adjust scope before the situation worsens, preserving cash flow and budget integrity.

Other actions address different aspects of project management but don’t directly ensure budget control. Monitoring resource utilization focuses on efficiency and workload, not the financial commitments and actual expenditures. Approving all vendor contracts and ensuring staffing levels meet minimums relate to procurement governance and staffing, respectively, rather than the ongoing discipline of tracking what has been spent against what has been promised to spend.