Question

A vendor raises the cost of materials you planned to order, and the increased cost will put your project over budget. Which should you do first?
A. Review the budget to identify other areas where costs can be cut.
B. Cancel your contract with the vendor.
C. Contact the vendor and ask them to honor the initial price.
D. Ask the client to identify other areas of the project where they’d like to cut costs.
E. Request additional money from the client to cover the increased costs.

Answer 1

Answer:

A. Review the budget to identify other areas where costs can be cut.

Explanation:

In the case when the vendor increased the material cost that planned and the increased cost would also be placed in your project i.e. over budgeted so the first thing you should do is review the budget by identifying the areas where the cost cutting to be done

Therefore as per the given situation, the option A is correct

And, the rest of the options are incorrect