Project Management Ch 04 Test Questions

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

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

Projects that arise as a result of problems and directives must be resolved quickly to avoid hurting an organization's business.

True

_______ is the result of subtracting the project costs from the benefits and then dividing by the costs

return on investment or ROI

The ________ section of the project management plan describes specific methodologies a project might use and explains how to document information

technical processes

The business case includes information on _______.

the project objective, high level requirements, and time and cost goals

The introduction or overview of a project must only include a list of definitions and acronyms.

False

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

False

Which of the following is a true return on investment or ROI

It is always a percentage

________ 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.

Net Present Value

________ 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.

Net Present Value

____ involves coordinating all planning efforts to create a consistent, coherent document.

Developing the project management plan

________ are new requirements imposed by management, government or some external influence.

Directives

An organization should consider only projects with a negative NPV if financial value is a key criterion for project selection.

False

Which of the following is a proactive process undertaken to reduce the probability of negative consequences associated with project risks?

Preventative Actions

A__________ is a document used to coordinate all project planning documents and help guide a projects execution and control

Project Management Plan

The ________ section of the project plan should describe the major project functions and activities and identify those individuals who are in charge of them.

Project Respondibilities

An IT company revises it's process parameters in response to complaints from vendors that products were not ready on time. This would be an example of

a corrective action

A positive NPV means the return from a project exceeds the _____, the return available by investing the capital elsewhere.

cost of capital

In the ________ stage of selecting information technology projects, organizations define project scope, benefits and constraints.

project planning