Chapter 4 MC

A _____ is a document used to coordinate all project planning documents and help guide a project's execution and control. a. project management plan b. statement of work c. scope statement d. business case

a

A project's internal rate of return can be determined by finding what discount rate results in an NPV of _____ for the project. a. zero b. one c. a hundred percent d. fifty percent

a

In the _____ stage of selecting information technology projects, organizations define project scope, benefits, and constraints. a. project planning b. business area analysis c. resource allocation d. information technology strategy planning

a

The first step in determining the NPV is to _____. a. determine the estimated costs and benefits for the life of the project and the products it produces b. determine the discount rate c. calculate the net present value d. determine the cash flow

a

The first step in the planning process is _____. a. to tie the information technology strategic plan to the organization's overall strategic plan c. to start defining potential IT projects in terms of their scope, benefits, and constraints b. to perform a business area analysis d. to choose which projects to do and assigning resources to work on them

a

The majority of time on a project is usually spent on _____, as is most of the project's budget. a. execution b. planning c. closing d. monitoring and controlling

a

Which of the following are organizational process assets? a. Management systems b. The organization's infrastructure c. Government standards d. Marketplace conditions

a

Which of the following is true of return on investment or ROI? a. It is always a percentage. b. It is always a positive number. c. It is the result of adding the project costs to the profits. d. The lower it is, the better.

a

_____ involves working with stakeholders to create the document that formally authorizes a project. a. Developing the project charter b. Developing the preliminary project scope statement c. Developing the project management plan d. Performing integrated change control

a

_____ should result in improvements in project performance a. Corrective actions b. Defect repairs c. Preventive actions d. Product acceptance plans

a

Benefits minus costs is known as the _____. a. cost of capital b. cash flow c. discount factor d. opportunity cost of capital

b

Payback occurs when: a. the net cumulative benefits minus costs equal one. b. the net cumulative benefits equal the net cumulative costs. c. the net costs are lower than the cumulative benefits. d. the cumulative benefits are double the cumulative costs.

b

The _____ section of the project management plan describes how to monitor project progress and handle changes. a. management objectives b. project controls c. risk management d. technical processes

b

The _____ 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. a. project planning b. business area analysis c. resource allocation d. information technology strategy planning

b

Which of the following is a proactive process undertaken to reduce the probability of negative consequences associated with project risks? a. Performance reports b. Preventive actions c. Defect repairs d. Corrective actions

b

_____ analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time. a. Cost of capital b. Net present value c. Cash flow d. Payback

b

In a weighted scoring model, the sum of the weights of all the criteria must total _____ percent. a. 10 b. 50 c. 100 d. 150

c

In the _____ stage of selecting information technology projects, organizations select information technology projects. a. project planning b. business area analysis c. resource allocation d. information technology strategy planning

c

The _____ section of the project plan should describe the major project functions and activities and identify those individuals who are in charge of them. a. organizational charts b. other organizational or process-related information c. project responsibilities d. management objectives

c

The business case includes information on _____. a. the business need for the project b. relevant government or industry standards c. the project objective, high-level requirements, and time and cost goals d. policies, procedures, guidelines, and systems that influence a project's success

c

The project schedule information section of the project management plan includes ____. a. a detailed budget b. a list of key deliverables c. an elaborate timetable d. a directory of staff involved in the project

c

_____ involves coordinating all planning efforts to create a consistent, coherent document. a. Developing the project charter b. Developing the preliminary project scope statement c. Developing the project management plan d. Developing the organizational process assets updates

c

_____ 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. a. NPV analysis b. Project management information systems c. Configuration management d. Project time management

c

A _____ is a document that recognizes the existence of a project and provides direction on the project's objectives and management. a. stakeholder register b. risk register c. directive d. project charter

d

A(n) _____ is a formal, documented process that describes when and how official project documents may be modified, the people authorized to make modifications, and the paperwork required for these changes. a. WBS b. project charter c. performance report d. change control system

d

An IT company revises its process parameters in response to complaints from vendors that products were not ready on time. This would be an example of a. cost forecasting b. a preventive action c. defect repairs d. a corrective action

d

The _____ is the minimum acceptable rate of return on an investment. a. capitalization rate b. internal rate of return c. discount rate d. required rate of return

d

The _____ section of the project management plan describes specific methodologies a project might use and explains how to document information a. management objectives b. project controls c. risk management d. technical processes

d

The outputs of the _____ process include change request status updates, project management plan updates, and project document updates a. initiating b. planning c. executing d. monitoring and controlling

d

_____ are new requirements imposed by management, government, or some external influence. a. Opportunities b. Charters c. Problems d. Directives

d