Unexpected events and new information during a new product development (NPD) project may require responsiveness regarding development efforts and new decisions about the allocation of financial resources. Prior research mainly focused on major decisions about financial resource allocations at predefined milestones; this study zooms in on more frequent and smaller financial resource allocation decisions between formal reviews. This research is based on a case study of a large car company that manages NPD projects with long lead times and large budgets, which are often reviewed and adjusted because of new events that unfold during these projects. We identify an approach for within-project NPD cost compensation at these more frequent and smaller financial resource allocation decisions, which prioritizes the goal of keeping NPD costs in check by requiring teams to compensate NPD cost overruns elsewhere within their project. The study empirically investigates factors associated with the use of this approach, which are based on the need and the feasibility of finding cost compensation. This is particularly relevant for development projects with a high level of uncertainty, which require regular budgetary responsiveness.