In a matrix organization, a project to improve the internal tracking system must incorporate an unexpected change to government accounting requirements. The development team implemented the change at no extra cost, but testing costs are exceeding the testing budget. What should the project manager do?

The correct answer is to submit a change request to the cost baseline through the governance process. This is because the testing costs are exceeding the budget, indicating a deviation from the approved cost baseline. In a matrix organization, formal change control is crucial. A change request is the proper mechanism to formally propose an adjustment to the project’s cost baseline, which then needs to be approved through the established governance process. Asking the sponsor to allocate contingency reserve funds is incorrect because contingency reserves are for known-unknown risks, not for exceeding a budget due to an implemented change. While a cost-benefit analysis might be performed as part of evaluating options, it's not the primary action to fund the additional testing; the formal mechanism is a change request. Updating the basis of estimates and the cost management plan is insufficient; these documents describe how costs are estimated and managed, but they don't provide the funding or formally approve a budget increase.