At the start of a typical project life cycle, costs are:

According to the PMBOK® Guide (Project Management Body of Knowledge), specifically within the section detailing Project Life Cycle and Organization:

Cost and Staffing Levels (Option A): This is the standard characteristic of a typical project life cycle. At the start of a project (Starting the Project phase), costs and staffing levels are relatively low. As the project moves into the middle phase (Organizing and Preparing / Carrying out the Work), costs and staffing levels peak due to the high volume of resource consumption and execution activities. Finally, as the project nears the end (Closing the Project), these levels drop significantly as deliverables are transitioned and resources are released.

Option B: This incorrectly suggests that costs increase at the end. While " Closing " has associated costs, it is significantly lower than the " Carrying out the work " phase.

Option C and D: These options incorrectly suggest that costs are high at the start. While risk and uncertainty are at their highest at the start, the actual expenditure of capital and human resources is typically minimal compared to the execution phase.

In the PMI framework, understanding the generic life cycle structure allows the Project Manager to plan for resource allocation and cash flow requirements. It highlights that the greatest opportunity for stakeholders to influence the final characteristics of the project ' s product (without significantly impacting cost) is at the start, as the cost of changes increases dramatically as the project nears completion.