IPO1 Project Management Exam Version 2
Practice exam for Western Governors University WGU Exams under Western Governors University Exams (College Exams). 5 sample questions.
Sample Questions
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Question 1
A cellular company is considering two projects. However, due to budget constraints, they can only execute one of the projects. They evaluate both projects as if they were financial investments.
Correct Answer: A
Rationale: Internal rate of return (IRR) is a financial metric used to evaluate investment profitability. The company treats projects as investments, so IRR is the correct numeric financial model. Scoring is non-financial. Sacred cow is a project forced by leadership. Checklist is a basic yes/no tool.
Rationale: Internal rate of return (IRR) is a financial metric used to evaluate investment profitability. The company treats projects as investments, so IRR is the correct numeric financial model. Scoring is non-financial. Sacred cow is a project forced by leadership. Checklist is a basic yes/no tool.
Question 2
What is opportunity cost?
Correct Answer: B
Rationale: Opportunity cost is the value of the best alternative not chosen. When selecting one project, the benefit of the other project is lost. A describes net present value zero. C is payback period. D is time value of money.
Rationale: Opportunity cost is the value of the best alternative not chosen. When selecting one project, the benefit of the other project is lost. A describes net present value zero. C is payback period. D is time value of money.
Question 3
Which activity is accomplished as part of the executing process of a project?
Correct Answer: B
Rationale: Executing means carrying out the plan. Managing stakeholders (communication, engagement) is a key execution activity. Finalizing schedule is planning. Returning assets is closing. Lessons learned is closing.
Rationale: Executing means carrying out the plan. Managing stakeholders (communication, engagement) is a key execution activity. Finalizing schedule is planning. Returning assets is closing. Lessons learned is closing.
Question 4
A company plans to develop a data warehousing application to collect and organize the data it generates. A cross-functional team will be working on the project, which requires them to take time off from their core jobs. The project manager uses the CCPM approach to ensure their availability for the project.
Correct Answer: B
Rationale: CCPM (Critical Chain Project Management) uses time buffers to protect the project schedule from resource delays. Since team members are pulled from core jobs, buffers ensure availability. Recruiting adds cost. Extending time violates CCPM. Estimating is part of planning, not CCPM solution.
Rationale: CCPM (Critical Chain Project Management) uses time buffers to protect the project schedule from resource delays. Since team members are pulled from core jobs, buffers ensure availability. Recruiting adds cost. Extending time violates CCPM. Estimating is part of planning, not CCPM solution.
Question 5
Which activity is accomplished during the closing process of a project?
Correct Answer: D
Rationale: Closing includes final acceptance of deliverables by the client. Monitoring budget is controlling. Deliverables inventory is planning or controlling. Implementing plan is executing.
Rationale: Closing includes final acceptance of deliverables by the client. Monitoring budget is controlling. Deliverables inventory is planning or controlling. Implementing plan is executing.