In a project similar to that in the case study example, relatively small unit cost changes are not likely to pose a significant risk to the project viability.

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BlackTom AI · Accepted Answer

Question restatement: The claim is that in a project similar to the case study example, relatively small unit cost changes are not likely to pose a significant risk to project viability.
Option 1: True. This would assert that small unit cost changes do not threaten viability. In practice, even modest cost fluctuations can accumulate across many components or phases, potentially affecting cash flows, profitability, and viability milestones, especially in tightly constrained budgets or high-uncertainty projects. Therefore this statement tends to overlook cumulative risk and sensitivity factors, making the claim unreliable.
Option 2: False. This choice accurately challenges the idea that small unit cost changes are harmless. The reasoning is that even minor cost variations can compound over time, impact contingency adequacy, and alter baseline forecasts. Risk analysis, margin erosion, and schedule pressures can all amplify the effect of small cost changes, leading to viability concerns in some scenarios.
To understand the nuance, consider that project viability depends on many interacting variables: cost estimates, contingency levels, funding availability, and schedule commitments. A seemingly small unit cost change, when multiplied across quantities or spread over multiple work packages, can become material. Hence, the statement that such changes are not likely to pose a significant risk is misleading, aligning with the assessment that the correct stance is that small unit cost changes can matter to viability, depending on context.

CVEN30008_2025_SM1 Module 5.1 Quiz

In a project similar to that in the case study example, relatively small unit cost changes are not likely to pose a significant risk to the project viability.

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