question

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

answer

TRUE

question

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

answer

FALSE

question

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

answer

FALSE

question

Project integration management must occur just within the context of a particular project

answer

FALSE

question

A SWOT analysis, being a linear process, cannot be performed using the nonlinear mind mapping technique.

answer

FALSE

question

An organization's information technology project selection process should guide the strategic plan.

answer

FALSE

question

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

answer

TRUE

question

Projects that address broad organizational needs are likely to fail.

answer

FALSE

question

As projects progress, the organization must reevaluate the need, funding, and will for each project to determine if the project should be continued, redefined, or terminated.

answer

TRUE

question

Opportunities and directives are essentially the same thing

answer

FALSE

question

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

answer

TRUE

question

The organization should complete low-priority projects before high-priority ones, if the low-priority ones take less time.

answer

FALSE

question

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

answer

FALSE

question

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

answer

TRUE

question

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

answer

TRUE

question

The ROI is always positive

answer

FALSE

question

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.

answer

TRUE

question

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

answer

FALSE

question

Some organizations initiate projects using a contract in place of a project charter

answer

TRUE

question

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

answer

FALSE

question

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

answer

FALSE

question

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

answer

FALSE

question

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

answer

FALSE

question

Change requests are always made in writing.

answer

TRUE

question

Organizational process asset updates are an important output of the closing process of a project.

answer

TRUE

question

_____ 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

answer

A Developing the project charter involves working with stakeholders to create the document that formally authorizes a project —the charter.

question

_____ 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

answer

C Developing the project management plan involves coordinating all planning efforts to create a consistent, coherent document—the project management plan.

question

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

answer

D The outputs of the monitoring and controlling process include change request status updates, project management plan updates, and project document updates.

question

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

answer

A The first step in the planning process, starting at the top of the hierarchy, is to tie the IT strategic plan to the organization's overall strategic plan.

question

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

answer

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

question

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

answer

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

question

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

answer

C In the resource allocation stage of selecting information technology projects, organizations select information technology projects.

question

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

answer

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

question

_____ 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 c. Cash flow b. Net present value d. Payback

answer

B 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.

question

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

answer

B Cash flow is the benefits minus costs or income minus expenses.

question

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

answer

A 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.

question

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

answer

A The ROI is always a percentage. It can be positive or negative.

question

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

answer

D The required rate of return is the minimum acceptable rate of return on an investment

question

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

answer

B Payback occurs when the net cumulative benefits equal the net cumulative costs, or when the net cumulative benefits minus costs equal zero.

question

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 c. a hundred percent b. one d. fifty percent

answer

A 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.

question

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

answer

C 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.

question

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

answer

D A project charter is a document that formally recognizes the existence of a project and provides direction on the project's objectives and management.

question

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

answer

C Many projects require a business case to justify their investment. Information in the business case, such as the project objective, high-level requirements, and time and cost goals, is included in the project charter.

question

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

answer

A A project management plan is a document used to coordinate all project planning documents and help guide a project's execution and control

question

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

answer

C This section of the project plan should describe the major project functions and activities and identify the people responsible for them. A responsibility assignment matrix is often used to display this information.

question

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

answer

B The project controls section describes how to monitor project progress and handle changes. Will there be monthly status reviews and quarterly progress reviews? Will there be specific forms or charts to monitor progress?

question

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

answer

C 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.

question

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

answer

D The technical processes section describes specific methodologies a project might use and explains how to document information.

question

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

answer

A The majority of time on a project is usually spent on execution, as is most of the project's budget.

question

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

answer

A Corrective actions should result in improvements in project performance

question

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

answer

B 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.

question

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 c. defect repairs b. a preventive action d. a corrective action

answer

D Corrective actions should result in improvements in project performance.

question

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 c. performance report b. project charter d. change control system

answer

D A change control system is a formal, documented process that describes when and how official project documents may be changed. It also describes the people authorized to make changes, the paperwork required for these changes, and any automated or manual tracking systems the project will use.

question

_____ 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 c. Configuration management b. Project management information systems d. Project time management

answer

C Configuration management ensures that the descriptions of the project's products are correct and complete. It involves identifying and controlling the functional and physical design characteristics of products and their support documentation.

question

_____ involves coordinating all of the other project management knowledge areas throughout a project's life cycle.

answer

Project integration management

question

_____ involves identifying and managing the points of interaction between various elements of the project.

answer

Interface management

question

_____ involves determining long-term objectives by analyzing the strengths and weaknesses, studying opportunities and threats, predicting future trends, and projecting the need for new products and services.

answer

Strategic planning

question

A(n) _____ involves analyzing a company's strengths, weaknesses, opportunities, and threats, and is used to aid in strategic planning.

answer

SWOT analysis

question

_____ is a technique that uses branches radiating from a core idea to structure thoughts and ideas.

answer

Mind mapping

question

_____ refer to undesirable situations that prevent an organization from achieving its goals.

answer

Problems

question

_____ refer to chances to improve the organization.

answer

Opportunities

question

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

answer

Directives

question

_____ 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.

answer

Net present value 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.

question

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

answer

cost of capital

question

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

answer

Return on investment (ROI)

question

The _____ is the discount rate that results in an NPV of zero for a project.

answer

internal rate of return (IRR)

question

A(n) _____ is a tool that provides a systematic process for selecting projects based on many criteria.

answer

weighted scoring model

question

A(n) _____ is a methodology that converts value drivers, such as customer service, innovation, operational efficiency, and financial performance, to a series of defined metrics.

answer

balanced scorecard

question

_____ factors include relevant government or industry standards, the organization's infrastructure, and marketplace conditions.

answer

Enterprise environmental

question

_____ include formal and informal plans, policies, procedures, guidelines, information systems, financial systems, management systems, lessons learned, and historical information that can be used to influence a project's success.

answer

Organizational process assets

question

_____ project work includes collecting, measuring, and disseminating performance information.

answer

Monitoring

question

A(n) _____ is the approved project management plan plus approved changes.

answer

baseline

question

_____ involves identifying, evaluating, and managing changes throughout the project life cycle.

answer

Integrated change control

question

A(n) _____ is a formal group of people responsible for approving or rejecting changes to a project.

answer

change control board (CCB)

question

A category of software that can help align projects with business strategy is called _____ tools.

answer

business service management (BSM)

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