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Project Management Professional - QP1-Part3
13. Any numbering system that is used to monitor project costs by category such as labor, supplies, or materials, for example, is called
a. Chart of accounts
b. Work breakdown structure
c. Universal accounting standard
d. Standard accounting practices
a. Chart of accounts
b. Work breakdown structure
c. Universal accounting standard
d. Standard accounting practices
14. A person who is involved in or may be affected by the activities or anyone who has something to gain or lose by the activity of the project is called a:
a. Team member
b. Customer
c. Stakeholder
d. Supporter
b. Customer
c. Stakeholder
d. Supporter
The following should be used for questions 15 through 17.
A project manager is assigned to a project early in the project lifecycle. One of the things that must be done is to do a justification for the project. Since very little information is known about the project, the estimates are considered to be rough estimates. The following table is the project manager’s estimate of the cash flow that will take place over the next five years.
A project manager is assigned to a project early in the project lifecycle. One of the things that must be done is to do a justification for the project. Since very little information is known about the project, the estimates are considered to be rough estimates. The following table is the project manager’s estimate of the cash flow that will take place over the next five years.
End of Year Cash Flow In Cash Flow Out
1 0 500,000
2 300,000 90,000
3 400,000 100,000
4 100,000 175,000
5 50,000 35,000
1 0 500,000
2 300,000 90,000
3 400,000 100,000
4 100,000 175,000
5 50,000 35,000
15. What is the payback period for this project?
a. One year
b. Two years
c. Three years
d. Four years
a. One year
b. Two years
c. Three years
d. Four years
16. What is the net cash flow at the end of five years?
a. $50,000
b. - $50,000
c. $850,000
d. $100,000
a. $50,000
b. - $50,000
c. $850,000
d. $100,000
17. If the net present value for each of the cash flows were calculated at a 10% interest rate, the net present value cash flow at the end of five years would be:
a. Greater than the total cash flow without the net present value applied
b. Less than the total cash flow without the net present value applied
c. The same as the total cash flow without the net present value applied
d. Unable to be calculated with the information supplied
a. Greater than the total cash flow without the net present value applied
b. Less than the total cash flow without the net present value applied
c. The same as the total cash flow without the net present value applied
d. Unable to be calculated with the information supplied
18. A group of related projects that are managed in a coordinated way that usually include an element of ongoing activity is called a:
a. Major project
b. Project office
c. Program
d. Group of projects
b. Project office
c. Program
d. Group of projects
19. During the full life cycle of the project, a plot of the project’s expected expenditure will usually follow a characteristic “S” shape. This indicates that:
a. There is a cyclic nature to all projects
b. Problems will always occur in the execution phase
c. There are high expenditure during closeout
d. The bulk of the project budget will be spent in the execution phase
b. Problems will always occur in the execution phase
c. There are high expenditure during closeout
d. The bulk of the project budget will be spent in the execution phase
20. A temporary endeavor undertaken to create a new product or service is called a:
a. New product development
b. Project
c. Program
d. Enterprise
b. Project
c. Program
d. Enterprise