Chapter 4 Quiz

A project charter typically does not authorize the project manager to use organizational resources to complete the project.

False

Which process involves selecting information technology projects and assigning resources?

Project planning

What term is used for the minimum acceptable rate of return on an investment?

Required rate of return

Change requests are always made in writing.

True

When does payback occur?

When the net cumulative benefits equal the net cumulative costs

Corrective actions reduce the probability of negative consequences associated with project risks, while preventive actions should result in improvements in project performance.

False

It is necessary that IT project managers have prior technical experience in creating and managing IT products.

False

Projects that address broad organizational needs are likely to fail.

False

The ROI is always positive.

False

What statement is true regarding a return on investment or ROI?

It is always a percentage.

The outputs of which process include change request status updates, project management plan updates, and project document updates?

Monitoring and controlling

In project integration management, directing and managing project execution involves carrying out the project management plan by performing the activities included in it.

True

NPV analysis is a method for making equal comparisons between cash flows for multi-year projects.

True

Which section of the project plan lists the planned dates for completing key deliverables?

Schedule

What is the first step in the planning process?

Tie the information technology strategic plan to the organization's overall strategic plan

A summary of the planned approach for managing the project should describe stakeholder needs and expectations, important assumptions, and constraints.

True

An annual discount factor is a multiplier for each year based on the discount rate and year.

True

Information systems can help an organization support a strategy of being a low-cost producer.

True

Interface management involves identifying and managing the points of interaction between various elements of a project.

True

Payback period is the amount of time it will take to recoup, in the form of net cash inflows, the total dollars invested in a project.

True

The number of interfaces in a single project is limited, and does not depend on the number of people involved in the project.

False

Many projects fail because of unclear requirements and expectations, so starting with a payback analysis makes a lot of sense.

False (project charter not analysis)

Which section of the project management plan provides the planned cost of deliverables?

Budget

What process involves identifying and controlling the functional and physical design characteristics of products and their support documentation, and ensures that the descriptions of the project's products are correct and complete?

Configuration management

What actions result in improvements in project performance?

Corrective

Which process involves working with stakeholders to create the document that formally authorizes a project?

Developing the project charter

What is the majority of time on a project is usually spent on?

Execution

A project's internal rate of return can be determined by finding what discount rate results in an NPV of what value for the project?

Zero

An IT company revises its process parameters in response to complaints from vendors that products were not ready on time. Which is this an example of?

A corrective action

Which stage of information technology planning outlines business processes that are central to achieving strategic goals and helps determine which ones could most benefit from information technology?

Business area analysis

A Gantt chart is the same as a project management plan.

False

Which section of the project management plan includes external interfaces, internal structure, as well as roles and responsibilities?

Project organization