In Project Cost Management, which of the following combinations correctly identifies a typical input, a tool or technique, and a primary output of the Cost Budgeting process according to the PMBOK Guide?

Introduction / Context:
The Cost Budgeting process known as Determine Budget in newer PMBOK editions is where the project manager aggregates individual cost estimates to establish an authorised cost baseline. This baseline is used to measure and control cost performance throughout the project. Being able to identify the key ITTOs for Cost Budgeting is important for PMP exam questions that ask how the budget is produced from earlier cost estimates.

Given Data / Assumptions:

• The knowledge area is Project Cost Management.
• The process in focus is Cost Budgeting or Determine Budget.
• We need one representative input, one tool or technique, and one primary output.
• Activity cost estimates have already been created in the Cost Estimating process.
• The goal is to roll up these estimates and create a cost baseline over time.

Concept / Approach:
Cost Budgeting uses inputs such as activity cost estimates, basis of estimates, project schedule, resource calendars, contracts, and cost management plan. A key tool and technique is cost aggregation, which involves summing individual activity or work package costs to higher levels of the work breakdown structure and to project phases. The primary output is the cost baseline, a time phased budget used for earned value analysis and cost control, along with project funding requirements.

Step-by-Step Solution:
Step 1: Identify an essential input. Activity cost estimates are required because they represent the raw cost data for each activity or work package. Step 2: Select an appropriate tool or technique. Cost aggregation is central to budgeting, combining estimates into a comprehensive budget at different WBS levels. Step 3: Determine the main output. The cost baseline is the authorised time phased budget against which actual costs will be measured. Step 4: Choose the answer option that includes activity cost estimates, cost aggregation, and cost baseline. Step 5: Confirm that other options belong to scope verification, time management, quality control, or human resource management rather than cost budgeting.

Verification / Alternative check:
In PMBOK style descriptions, Determine Budget lists activity cost estimates, basis of estimates, project schedule, resource calendars, and contracts as inputs. Tools and techniques include cost aggregation, reserve analysis, expert judgment, and funding limit reconciliation. Outputs include cost baseline and project funding requirements. This matches the input, tool, and output used in the correct option.

Why Other Options Are Wrong:
Option B aligns with scope verification. Option C describes scheduling processes. Option D consists of quality control techniques. Option E focuses on human resources and acquiring project team members. None of these options reflect the aggregation of cost estimates into a cost baseline.

Common Pitfalls:
A common mistake is to assume that cost estimating and cost budgeting are the same process, but estimating generates individual estimates while budgeting aggregates them into a baseline. Another pitfall is ignoring the time dimension of the cost baseline, which is essential for earned value analysis. For exam questions, remember that Cost Budgeting takes activity cost estimates, applies cost aggregation, and produces the cost baseline as the central output.

Final Answer:
The correct ITTO combination for Cost Budgeting is activity cost estimates; cost aggregation; cost baseline.