You are a program manager for your organization. You have proposed a program to the management that will last four years and will cost $35 million to create.
Management has asked to see the program charter and the proposed costs and benefits of the program.
Management agrees to your program charter and proposed to fund the program in increments at the completion of each milestone. What type of funding does management proposed for this program?
The type of funding management has proposed, where funding is provided at the completion of each milestone, is called Milestone Approval. In this method, funding is incrementally released based on the successful achievement of specific milestones. This approach ensures that the project is progressing as planned and allows for adjustments to be made as necessary before additional funds are released. Unlike Step Funding, which involves stage-wise releases without necessarily tying to milestone completions, Milestone Approval explicitly links financial commitments to the achievement of pre-defined project milestones.
The type of funding that management proposed for this program, where funding is provided at the completion of each milestone, is: B. Step funding Step funding involves providing funding in increments or steps, often tied to the completion of predefined project milestones. This approach allows management to review the progress of the program at each milestone and make informed decisions about continuing, modifying, or discontinuing the program based on the achieved results. It aligns funding with project progress and provides a structured way to manage financial commitments throughout the program's lifecycle.
B is right answer. Step funding is a method of financing where funds are provided in stages or increments rather than as a lump sum. This approach is commonly used in projects, research, and startups to manage risk and ensure that funds are used effectively. Each stage of funding is typically tied to specific milestones or performance metrics, and subsequent funding is released only when these milestones are achieved.
should be C milestone Approval
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