Which of the following statements is true about project baselines?

Project baselines serve as essential reference points for measuring project performance throughout the life cycle of a project. They are established at the planning phase and represent the original approved version of a project’s scope, cost, and schedule. By using these baselines, project managers can assess how the project is progressing against the initial plan, identify variances, and implement corrective actions when necessary.

Having a reference point allows for a clear understanding of how actual performance compares to what was planned, ensuring that any deviations can be managed effectively. This makes baselines a fundamental tool for performance management rather than a concept limited to the planning phase or something to be discarded after initiation. Continuous monitoring against these baselines enables informed decision-making and promotes accountability, which is crucial for successful project outcomes.

In summary, the significance of baselines lies in their role as a constant reference throughout the project, helping teams to track progress and make necessary adjustments.