Chapter 4 Project Integration Management

Multiple Choice 27. Which process 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 RATIONALE: Feedback: Developing the project charter involves working with stakeholders to create the document that formally authorizes a project —the charter. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.152 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 28. Which process 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. Developing the organizational process assets updates ANSWER: c RATIONALE: Feedback: Developing the project management plan involves coordinating all planning efforts to create a consistent, coherent document—the project management plan. POINTS: 1 DIFFICULTY: Difficulty: Easy 29. The outputs of which process include change request status updates, project management plan updates, and project document updates? a. initiating b. planning d. monitoring and controlling c. executin g ANSWER: d RATIONALE: Feedback: The outputs of the monitoring and controlling process include change request status updates, project management plan updates, and project document updates. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.183 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 30. What is the first step in the planning process? a. tie the information technology strategic plan to the organization’s overall strategic plan b. perform a business area analysis c. start defining potential IT projects in terms of their scope, benefits, and constraints d. choose which projects to do and assigning resources to work on them ANSWER: a RATIONALE: Feedback: 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. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.158 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 31. Which 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 RATIONALE: 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. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.158 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 32. Which process includes defining project scope, benefits, and constraints? a. project planning b. business area analysis c. resource allocation d. information technology strategy planning ANSWER: a RATIONALE: Feedback: In the project planning stage of selecting information technology projects, organizations define project scope, benefits, and constraints. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.158 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE MODIFIED: 6/6/2018 6:14 PM 33. Which process involves selecting information technology projects and assigning resources? a. project planning b. business area analysis c. resource allocation d. information technology strategy planning ANSWER: c RATIONALE: Feedback: In the resource allocation stage of selecting information technology projects, organizations select information technology projects. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.158 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 34. What are new requirements imposed by management, government, or some external influence referred to as? b. Charters a. Opportunitie s c. Problems d. Directives ANSWER: d RATIONALE: Feedback: Directives are new requirements imposed by management, government, or some external influence. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.161 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 35. What type of analysis involves 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 ANSWER: RATIONALE: POINTS: DIFFICULTY: REFERENCES: QUESTION TYPE: HAS VARIABLES: b. Net present value d. Payback b 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. 1 Difficulty: Easy p.162 Multiple Choice False 36. What term is used for benefits minus costs? a. cost of capital b. cash flow d. opportunity cost of capital c. discount factor ANSWER: b RATIONALE: Feedback: Cash flow is the benefits minus costs or income minus expenses. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p. 163 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 37. What is the first step in determining the NPV? 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 RATIONALE: 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. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.163 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 38. What statement is true regarding a 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. ANSWER: a RATIONALE: Feedback: The ROI is always a percentage. It can be positive or negative. POINTS: 1 DIFFICULTY: Difficulty: Moderate REFERENCES: p.168 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 39. What term is used for the minimum acceptable rate of return on an investment? b. internal rate of return a. capitalization rate c. discount rate d. required rate of return ANSWER: d RATIONALE: Feedback: The required rate of return is the minimum acceptable rate of POINTS: DIFFICULTY: REFERENCES: QUESTION TYPE: HAS VARIABLES: return on an investment. 1 Difficulty: Easy p.165 Multiple Choice False 40. When does payback occur? a. When the net cumulative benefits minus costs equal one b. When the net cumulative benefits equal the net cumulative costs c. When the net costs are lower than the cumulative benefits d. When the cumulative benefits are double the cumulative costs ANSWER: b RATIONALE: Feedback: Payback occurs when the net cumulative benefits equal the net cumulative costs, or when the net cumulative benefits minus costs equal zero. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.166 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 41. A project’s internal rate of return can be determined by finding what discount rate results in an NPV of what value for the project? a. zero b. one c. a hundred d. fifty percent percent ANSWER: a RATIONALE: 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. POINTS: DIFFICULTY: REFERENCES: QUESTION TYPE: HAS VARIABLES: 1 Difficulty: Easy p.166 Multiple Choice False 42. In a weighted scoring model, what percent must the sum of the weights of all the criteria total? a. 10 b. 50 c. 100 d. 150 ANSWER: c RATIONALE: 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. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.167 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 43. Which document recognizes the existence of a project and provides direction on the project’s objectives and management? b. risk register a. stakeholder register c. directive d. project charter ANSWER: d RATIONALE: Feedback: A project charter is a document that formally recognizes the existence of a project and provides direction on the project’s objectives and management. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: QUESTION TYPE: HAS VARIABLES: p.169 Multiple Choice False 44. Which information is included in a business case? a. business need for the project b. relevant government or industry standards c. project objective, high-level requirements, and time and cost goals d. policies, procedures, guidelines, and systems that influence a project’s success ANSWER: c RATIONALE: Feedback: 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. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.170 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 45. Which is an example of an organizational process asset? a. Management systems b. The organization’s infrastructure c. Government standards d. Marketplace conditions ANSWER: a RATIONALE: Feedback: Organizational process assets include formal and informal plans, policies, procedures, guidelines, information systems, financial systems, management systems, lessons learned, and historical information that can influence a project’s success. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.170 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 46. What document used to coordinate all project planning documents and help guide a project’s execution and control? b. statement of work a. project management plan c. scope statement d. business case ANSWER: a RATIONALE: Feedback: A project management plan is a document used to coordinate all project planning documents and help guide a project’s execution and control. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.173 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 47. Which section of the project plan lists the planned dates for completing key deliverables? a. schedule b. closing c. budget d. objective s ANSWER: a RATIONALE: Feedback: The schedule section of the project management plan lists the planned dates for completing key deliverables. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.182 QUESTION TYPE: Multiple Choice HAS VARIABLES: False KEYWORDS: DATE CREATED: DATE MODIFIED: Bloom's: Knowledge 4/27/2018 3:49 PM 6/6/2018 6:14 PM 48. Which section of the project management plan provides the planned cost of deliverables? b. budget a. objective s c. risk d. technica l ANSWER: b RATIONALE: Feedback: The budget section of the plan provides the planned cost of the deliverables. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.182 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 49. Which section of the project management plan describes specific methodologies a project might use and explains how to document information? b. project controls a. management objectives c. risk management d. technical processes ANSWER: d RATIONALE: Feedback: The technical processes section describes specific methodologies a project might use and explains how to document information. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.176 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 50. Which section of the project management plan includes external interfaces, internal structure, as well as roles and responsibilities? a. overview b. technical processes c. project organization d. supporting processes ANSWER: c RATIONALE: Feedback: The project organization section of the project management plan includes external interfaces, internal structure, as well as roles and responsibilities. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.176 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 51. What is the majority of time on a project is usually spent on? b. planning a. executio n c. closing d. monitoring and controlling ANSWER: a RATIONALE: Feedback: The majority of time on a project is usually spent on execution, as is most of the project’s budget. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.177 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 52. What actions result in improvements in project performance? a. Corrective b. Defective c. Preventive d. Acceptance plan ANSWER: RATIONALE: POINTS: DIFFICULTY: REFERENCES: QUESTION TYPE: HAS VARIABLES: a Feedback: Corrective actions should result in improvements in project performance. 1 Difficulty: Easy p.183 Multiple Choice False 53. Which process is undertaken to reduce the probability of negative consequences associated with project risks? a. Performance b. Preventive reports actions c. Defect repairs d. Corrective actions ANSWER: b RATIONALE: 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. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.183 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 54. An IT company revises its process parameters in response to complaints from vendors that products were not ready on time. Which is this an example of? a. cost b. a preventive action forecasting c. defect repairs d. a corrective action ANSWER: d RATIONALE: Feedback: Corrective actions should result in improvements in project POINTS: DIFFICULTY: REFERENCES: QUESTION TYPE: HAS VARIABLES: performance. 1 Difficulty: Moderate p.183 Multiple Choice False 55. Which term is used for 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 d. change control system report ANSWER: d RATIONALE: Feedback: 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. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.185 QUESTION TYPE: Multiple Choice HAS VARIABLES: False 56. What process 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 ANSWER: c RATIONALE: POINTS: DIFFICULTY: REFERENCES: QUESTION TYPE: HAS VARIABLES: Feedback: 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. 1 Difficulty: Easy p.186 Multiple Choice False