0
Q:

# The payback period can become an important issue when a large scope project is developed over several years. Maureen has been assigned the responsibility of calculating the payback period for her project that is to be completede in 3 years. The internal rate of return(IRR) is 7% and the annual savings will be $800,000 per year. The total cost is$4,000,000 and the rate of return during this time period is 3%. What is the payback period of Maureen's project?

 A) 3 years B) 4 years C) 5 years D) 13.3 years

Explanation:

The payback period is how long it takes to recoup your investment. In this example, the cost was $4,000,000 and the savings was$800,000 per year. $4,000,000/$800,000 = 5. Therefore, Answer A, B and D are incorrect.

Q:

An important tool for project scope management is

 A) Fast tracking B) Work breakdown structure C) Crashing D) A Gantt Chart

Explanation:

Work breakdown structure is an important tool for project scope management.

Project Scope Management refers to the set of processes that ensure a project’s scope is accurately defined and mapped. Scope Management techniques enable project managers and supervisors to allocate just the right amount of work necessary to successfully complete a project—concerned primarily with controlling what is and what is not part of the project’s scope.

2 105
Q:

4 phases of project management are

The project management life cycle describes high-level processes for delivering a successful project.

The project management life cycle is usually broken down into four phases:

1. Initiation and Planning,

2. Execution,

3. Project Monitoring and Control, and

4. Project Closing.

123
Q:

Importance of project life cycle?

A project has a beginning and an end and passes through several phases of development known as life cycle phases. Every project has certain phases of development. A clear understanding of these phases allows managers and executives to maintain control of the project more efficiently.
These phases are varied depending upon the industry involved but all follow the same basic steps.

How Important is Project Life Cycle::

1. This is a tried and tested method for delivering projects on time, within budget and to the expected quality targets.

2. Aids communication and helps define roles within the project organisation as it provides a framework for the project that is visible and understood by all members of the project.

3. The project lifecycle will allow the project manager to link progress directly to each phase and recognise the completion of each phase

4. The phases within the project lifecycle provide an understanding of the evolution of the project, being able to identify areas that need greater attention at different times such as risk management in the early stages and more Project Evaluation Reviews during the Implementation stage.

5. At each stage, approval is generally required from outside the project team before proceeding to the next stage.

6. The project life cycle also allows for the gate procedure to be used.

7. At each stage, approval is generally required from outside the project team before proceeding to the next stage.

116
Q:

Who Creates The Project Charter?

 A) Sponser B) Stake holder C) Customer D) None

Explanation:

The project initiator or sponsor should be at a level that is appropriate to funding the project. They will either create the project charter or delegate that duty to the project manager.

Projects are authorized by someone external to the project such as a sponsor, PMO or portfolio steering committee.

Filed Under: PMP Certification
Job Role: Analyst , Project Manager

9 195
Q:

What is the Purpose of a Project Charter?

1. Project Charter refers to a statement of objectives in a project.

2. It provides a preliminary delineation of roles and responsibilities, outlines the project objectives, identifies the main stakeholders, and defines the authority of the project manager.

3. It serves as a reference of authority for the future of the project. The terms of reference are usually part of the project charter.

119
Q:

A project in PMP can be defined as a :

 A) Permanent endeavor that produces repetitive outputs B) Temporary endeavor undertaken to create a unique product, service, or result C) Permanent endeavor undertaken to create a unique product, service, or result D) Temporary endeavor that produces repetitive outputs

Answer & Explanation Answer: B) Temporary endeavor undertaken to create a unique product, service, or result

Explanation:

Filed Under: PMP Certification

6 380
Q:

Typically not referred to as a buffer type in critical chain project management is ______.

 A) Free Buffer B) Resource Buffer C) Project Buffer D) Feeding Buffer

Explanation:

Filed Under: PMP Certification

5 909
Q:

Decomposing tasks into smaller activities can be helpful in reducing the amount of stress associated with overwhelmingly large milestones. What is a feature of the hierarchical nature of the WBS?

 A) A WBS hierarchy prevents duplication B) A WBS cab be rolled up or collapsed to provide information at the appropriate level for a particular audience. C) The decomposition of tasks provides a detailed planning tool D) The depth of a WBS is restricted to three levels, which avoids overplanning

Answer & Explanation Answer: B) A WBS cab be rolled up or collapsed to provide information at the appropriate level for a particular audience.

Explanation:

Answer A is incorrect because the WBS hierarchy does not prevent duplication by itself. Answer C is incorrect because a WBS is focused on deliverables and components or work packages and not on tasks. Answer D is incorrect because a WBS can be sized appropriately to the project size with as many levels as necessary.