Project Management Practice Quiz 3&4

_____ are those costs that are difficult to measure in monetary terms. Select one: a. Direct costs b. Fixed costs c. Intangible costs d. Tangible costs

c. Intangible costs CorrectRationale: Feedback: Intangible costs or benefits are difficult to measure in monetary terms.

_____ involves defining and documenting the features and functions of the products produced during the project as well as the processes used for creating them. Select one: a. Collecting requirements b. Defining scope c. Controlling scope d. Validating scope

a. Collecting requirements CorrectRationale: Feedback: Collecting requirements involves defining and documenting the features and functions of the products for the project as well as the processes used for creating them. The project team creates requirements documentation and a requirements traceability matrix as outputs of the requirements collection process.

A cost estimation tool which is used to allocate money into an organization's budget is known as a _____ estimate. Select one: a. budgetary b. rough order of magnitude c. ballpark d. definitive

a. budgetary CorrectRationale: Feedback: A budgetary estimate is used to allocate money into an organization's budget. Budgetary estimates are made one to two years prior to project completion.

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. Select one: a. business area analysis b. resource allocation c. project planning d. information technology strategy planning

a. business area analysis CorrectRationale: Feedback: The business area analysis outlines business processes that are central to achieving strategic goals and helps determine which processes could most benefit from IT.

One of the main outputs of the _____ process is a cost baseline. Select one: a. cost budgeting b. cost controlling c. cost estimating d. cost planning

a. cost budgeting CorrectRationale: Feedback: Determining the budget involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance. The main outputs of the cost budgeting process are a cost baseline, project funding requirements, and project documents updates.

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

b. Developing the project charter CorrectRationale: Feedback: Developing the project charter involves working with stakeholders to create the document that formally authorizes a project -the charter.

Which of the following dependencies involve relationships between project and non-project activities? Select one: a. Discretionary b. External c. Inherent d. Mandatory

b. External CorrectRationale: Feedback: External dependencies involve relationships between project and non-project activities.

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

d. 100 CorrectRationale: Feedback: In a weighted scoring model, a weight is assigned to each criterion based on its importance to the project. Determining weights requires consultation and final agreement. You can assign weights based on percentages; the weights of the criteria must total 100 percent.

A(n) ____ is a task at the lowest level of the WBS. Select one: a. deliverable b. objective c. variance d. work package

d. work package CorrectRationale: Feedback: A work package is a task at the lowest level of the WBS.

Which of the following is an output of the process of controlling costs? Select one: a. Cost forecasts b. Scope baselines c. Project funding requirements d. Basis of estimates

a. Cost forecasts CorrectRationale: Feedback: Outputs of the process of controlling costs are work performance information, cost forecasts, change requests, project management plan updates, project documents updates, and organizational process asset updates.

In project time management, which of the following processes involve calculating the number of work periods that are needed to complete individual activities? Select one: a. Estimating activity durations b. Planning schedule management c. Sequencing activities d. Defining activities

a. Estimating activity durations CorrectRationale: Feedback: Estimating activity durations involves estimating the number of work periods that are needed to complete individual activities. Outputs include activity duration estimates and project documents updates.

A difference between the Program Evaluation and Review Technique (PERT) and critical path method (CPM) is that: Select one: a. PERT uses different duration estimates whereas CPM uses one specific duration estimate. b. unlike CPM, PERT estimates only when there is no risk of uncertainty. c. CPM involves more work than PERT because it requires several duration estimates. d. CPM addresses the risk associated with duration estimates whereas PERT does not.

a. PERT uses different duration estimates whereas CPM uses one specific duration estimate. CorrectRationale: Feedback: PERT uses probabilistic time estimates -duration estimates based on using optimistic, most likely, and pessimistic estimates of activity durations -instead of one specific or discrete duration estimate, as CPM does.

Which of the following is true of bottom-up estimates? Select one: a. They are time-intensive and expensive to develop. b. They are also known as parametric estimating. c. They are based on the actual cost of a previous, similar project. d. They are most accurate when they involve large, extensive work items.

a. They are time-intensive and expensive to develop. CorrectRationale: Feedback: Bottom-up estimates involve estimating the costs of individual work items or activities and summing them to get a project total. The drawback with bottom-up estimates is that they are usually time-intensive and therefore expensive to develop.

Generating ideas by comparing specific project practices or product characteristics to those of other projects or products inside or outside the performing organization is known as _____. Select one: a. benchmarking b. variance c. decomposition d. prototyping

a. benchmarking CorrectRationale: Feedback: Benchmarking, or generating ideas by comparing specific project practices or product characteristics to those of other projects or products inside or outside the performing organization, can be used to collect requirements.

The process of controlling costs primarily involves: Select one: a. managing changes to the project budget. b. determining a basis for estimates. c. determining the policies for project costs. d. finalising the procedures for project costs.

a. managing changes to the project budget. CorrectRationale: Feedback: Controlling costs involves controlling changes to the project budget. The main outputs of the cost control process are work performance information, cost forecasts, change requests, project management plan updates, project documents updates, and organizational process assets updates.

Scope creep refers to: Select one: a. the tendency for project scope to keep getting bigger and bigger. b. subdividing project deliverables into smaller pieces. c. the approved project scope statement and its associated WBS. d. a task at the lowest level of the WBS.

a. the tendency for project scope to keep getting bigger and bigger. CorrectRationale: Feedback: Scope creep refers to the tendency for project scope to keep getting bigger and bigger.

Which of the following is a relationship in which the "from" activity cannot start until the "to" activity is started? Select one: a. Finish-to-finish b. Start-to-start c. Start-to-finish d. Finish-to-start

b. Start-to-start CorrectRationale: Feedback: A start-to-start dependency is a relationship in which the "from" activity cannot start until the "to" activity or successor is started.

_____ is a process for identifying and modeling business events, who initiated them, and how the system should respond to them. Select one: a. Prototyping b. Use case modeling c. JAD d. RAD

b. Use case modeling CorrectRationale: Feedback: Use case modeling is a process for identifying and modeling business events, who initiated them, and how the system should respond to them. It is an effective tool for understanding requirements of information systems.

In an AOA network diagram, _____ occur when two or more activities follow a single node. Select one: a. combinations b. bursts c. buffers d. mergers

b. bursts CorrectRationale: Feedback: When creating an AOA network diagram, bursts occur when two or more activities follow a single node.

In project time management, the next step after defining project activities is: Select one: a. controlling the schedule. b. determining their dependencies. c. estimating activity duration. d. planning schedule management.

b. determining their dependencies. CorrectRationale: Feedback: After defining project activities, the next step in project time management is sequencing them or determining their dependencies. The sequencing process involves evaluating the reasons for dependencies and the different types of dependencies.

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

b. execution CorrectRationale: Feedback: The majority of time on a project is usually spent on execution, as is most of the project's budget.

The budget is one of the three values of earned value management and is also known as _____. Select one: a. earned value b. planned value c. actual cost d. indirect cost

b. planned value CorrectRationale: Feedback: The planned value (PV), also called the budget, is the portion of the approved total cost estimate planned to be spent on an activity during a given period.

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

b. required rate of return CorrectRationale: Feedback: The required rate of return is the minimum acceptable rate of return on an investment.

Good Earth, a company manufacturing packaged food products, sets up its stores in Baltonia. However, a year later, the company closes the store down due to high operating costs. In such a scenario, the money spent in paying for the rent of the store in Baltonia would be an example of _____ costs. Select one: a. direct b. sunk c. intangible d. recurring

b. sunk CorrectRationale: Feedback: Sunk cost is money that has been spent in the past. When deciding what projects to invest in or continue, one should not include sunk costs.

_____ is a method for determining the estimated annual costs and benefits for a project. Select one: a. Present value analysis b. Critical path analysis c. Cash flow analysis d. Requirements analysis

c. Cash flow analysis CorrectRationale: Feedback: Cash flow analysis is a method for determining the estimated annual costs and benefits for a project and the resulting annual cash flow. Project managers must conduct cash flow analysis to determine net present value.

Which of the following is true of the schedule performance index (SPI)? Select one: a. It means that a project is behind schedule if an SPI is greater than one. b. It means that a project is ahead of schedule if SPI is lesser than one or hundred percent. c. It can be used to estimate the projected time to complete the project. d. It is the ratio of planned value to actual costs.

c. It can be used to estimate the projected time to complete the project. CorrectRationale: Feedback: The schedule performance index (SPI) is the ratio of earned value to planned value; it can be used to estimate the projected time to complete the project.

Which of the following is true of a finsih-to-finish dependency? Select one: a. It is a dependency in which the "from" activity cannot start until the "to" activity or successor is started. b. It is a dependency in which in which the "from" activity must finish before the "to" activity or successor can start. c. It is a dependency in which the "from" activity must be finished before the "to" activity can be finished. d. It is a dependency in which the "from" activity must start before the "to" activity can be finished.

c. It is a dependency in which the "from" activity must be finished before the "to" activity can be finished. CorrectRationale: Feedback: A finish-to-finish dependency is a relationship in which the "from" activity must be finished before the "to" activity can be finished. One task cannot finish before another finishes.

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

c. an elaborate timetable CorrectRationale: Feedback: The project schedule information section should include a detailed schedule that provides more detailed information about the project schedule. It should reference the schedule management plan and discuss dependencies among project activities that could affect the project schedule.

The term ______ describes a product produced as part of a project. Select one: a. scope b. variance c. deliverable d. work package

c. deliverable CorrectRationale: Feedback: The term deliverable describes a product created as part of a project. Deliverables can be product related, such as a piece of hardware or software, or process-related, such as a planning document or meeting minutes.

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

c. determine the estimated costs and benefits for the life of the project and the products it produces CorrectRationale: Feedback: The first step in determining the NPV is to calculate the estimated costs and benefits for the life of the project and the products it creates.

The _____ approach for constructing a WBS involves refining the work into greater and greater levels of detail. Select one: a. mind mapping b. bottom-up c. top-down d. analogy

c. top-down CorrectRationale: Feedback: To use the top-down approach, start with the largest items of the project and break them into subordinate items. This process involves refining the work into greater and greater levels of detail.

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

c. zero CorrectRationale: Feedback: You can determine a project's internal rate of return (IRR) by finding what discount rate results in an NPV of zero for the project.

_____ dependencies are sometimes referred to as soft logic and should be used with care because they may limit later scheduling options. Select one: a. External b. Mandatory c. Inherent d. Discretionary

d. Discretionary CorrectRationale: Feedback: Discretionary dependencies are defined by the project team. They are sometimes referred to as soft logic and should be used with care because they may limit later scheduling options.

_____ 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. Select one: a. Cost of capital b. Cash flow c. Payback d. Net present value

d. Net present value CorrectRationale: Feedback: Net present value (NPV) 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.

Which of the following is a proactive process undertaken to reduce the probability of negative consequences associated with project risks? Select one: a. Defect repairs b. Performance reports c. Corrective actions d. Preventive actions CorrectRationale: Feedback: Preventive actions reduce the probability of negative consequences associated with project risks. The problem has not yet occurred. Measures are taken so that problems do not occur.

d. Preventive actions CorrectRationale: Feedback: Preventive actions reduce the probability of negative consequences associated with project risks. The problem has not yet occurred. Measures are taken so that problems do not occur.

In the _____approach for constructing a WBS, you use a similar project's WBS as a starting point. Select one: a. bottom-up b. top-down c. mind-mapping d. analogy

d. analogy CorrectRationale: Feedback: A method for constructing a WBS is the analogy approach. In the analogy approach, you use a similar project's WBS as a starting point.

The amount of time an activity can be delayed without delaying the early start date of any immediately following activities is known as a _____. Select one: a. forward pass b. fast tracking c. backward pass d. free slack

d. free slack CorrectRationale: Feedback: A technique that can help project managers make schedule trade-offs is determining the free slack and total slack for each project activity. Free slack or free float is the amount of time an activity can be delayed without delaying the early start date of any immediately following activities.

A(n) _____ on a project is a significant event that normally has no duration. Select one: a. schedule baseline b. activity sequence c. activity attribute d. milestone

d. milestone CorrectRationale: Feedback: A milestone on a project is a significant event that normally has no duration. It often takes several activities and a lot of work to complete a milestone, but the milestone itself is like a marker to help in identifying necessary activities.

The ______ documents how project needs will be analyzed, documented, and managed. Select one: a. requirements traceability matrix b. WBS c. project scope statement d. requirements management plan CorrectRationale: Feedback: The requirements management plan documents how project requirements will be analyzed, documented, and managed.

d. requirements management plan CorrectRationale: Feedback: The requirements management plan documents how project requirements will be analyzed, documented, and managed.

The _____ should list and describe all of the deliverables required for the project. Select one: a. WBS b. Gantt chart c. project charter d. scope statement

d. scope statement CorrectRationale: Feedback: The scope statement should list and describe all of the deliverables required for the project. It is very important to ensure consistency between the project charter, scope statement, WBS, and Gantt chart to define the scope of the project accurately.