Preparing monthly performance reporting, you have: Actual progress = 2 units, Planned progress = 3 units, Actual cost (AC) = 2 units, Budgeted cost = 3 units. What should you report to the project steering committee?

The correct answer is "The project is currently behind schedule with a corresponding lower cost, and every effort is being made to expedite the delayed activities." Here's why: Behind Schedule: Actual progress (2 units) is less than Planned progress (3 units), indicating the project is behind schedule. Lower Cost: Actual cost (2 units) is less than Budgeted cost (3 units), meaning the project is currently under budget. Action-Oriented: The statement includes a proactive measure ("every effort is being made to expedite the delayed activities"), which is appropriate for reporting to a steering committee. The other options are incorrect because: "an application for a time and budget extension will be submitted" is premature and not necessarily the immediate next step. "no further actions should be taken" is incorrect; being behind schedule requires action. "the project manager is pleased to declare a project cost savings" is unprofessional and doesn't address the schedule delay.