Which action is included in the Control Costs process?

According to the PMBOK® Guide, specifically within the Project Cost Management knowledge area, the Control Costs process is the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline.

Monitor and Isolate Variances (Option D): This is a core function of the Control Costs process. It involves comparing the actual money spent (Actual Cost) against the planned expenditure (Planned Value) and the physical work performed (Earned Value). By doing so, the project manager can determine the Cost Variance (CV) and the Cost Performance Index (CPI) to understand if the project is over or under budget and why.

Identify how costs will be planned (Option A): This describes the Plan Cost Management process. This is the initial planning stage where the " rules " for cost management are established.

Determine policies and objectives (Option B): This is more closely related to Plan Quality Management or general Stakeholder Management, where the project ' s overarching policies are aligned with stakeholder needs.

Develop an approximation of resources (Option C): This is the definition of the Estimate Costs process, which occurs before the budget is finalized and before control activities begin.

In the PMI framework, the Control Costs process ensures that any changes to the cost baseline are managed through the Perform Integrated Change Control process, ensuring that the project remains financially viable.