A project exceeds its budget but creates substantial safety improvements compared with what would happen without it. Could it still create value?
1 Project Value and the Assessment Baseline Online Quiz Questions
Use this free practice quiz with 20 questions to review 1 Project Value and the Assessment Baseline, test your knowledge, and prepare for your next test or exam.
A team is setting the baseline for a proposed service upgrade. Which approach best represents the outcome without the project?
- A
Assume nothing changes and that there are no costs or benefits without the project.
- B
Include existing activities and expected developments that would occur without the project.
- C
Include only the project option's expected outcomes.
- D
Use the most optimistic outcome for the current situation.
What project-assessment concept asks whether a project can be delivered and operated within its technical, legal, commercial, organizational, and resource constraints?
A change in estimated spending is a change in ; by itself, it does not establish a change in project .
Two project options have different financial and nonfinancial effects. Which approach best supports a value judgment?
- A
Rank options only by which one has the lowest delivery cost.
- B
Choose the option with the shortest schedule, regardless of outcomes.
- C
Assess outcomes against project objectives and stakeholder priorities, using appropriate evidence.
- D
Treat a positive financial ratio as sufficient even if important impacts are omitted.
Which outcomes are examples of nonfinancial benefits that could contribute to project value? Select all that apply.
- A
Improved safety
- B
The amount of money required for delivery
- C
Greater resilience
- D
Higher customer satisfaction
- E
Whether the project finished on schedule
What paired concept concerns how outcomes might differ from estimates and how likely or consequential those differences may be?
If assumptions or circumstances change, the original baseline and record any .
A project can be delivered within all relevant constraints, so its value must be positive. True or false?
- A
True
- B
False
A new regulation requires a safety feature in a system replacement. Which effects may follow? Select all that apply.
- A
Delivery cost may increase.
- B
The project’s net value must increase because safety is improved.
- C
The range of feasible designs may become smaller.
- D
The project’s net value may decrease.
- E
A cost increase by itself proves that the project has no value.
Market demand shifts while a project is being assessed. What should the team do?
- A
Call it a value change without further analysis.
- B
Revise the project’s expected benefits only, leaving all other assumptions untouched.
- C
Assess its effects on the baseline, project outcomes, costs, risks, and feasibility.
- D
Ignore it unless it changes the project’s delivery schedule.
A company is considering replacing an aging system. Explain what its baseline should include and how the company should use that baseline to assess the replacement's value.
An analyst compares monetized benefits and costs over time, then claims that the resulting ratio captures every relevant aspect of a project. Which response is best?
- A
A single ratio is sufficient if all benefits are estimated in money.
- B
Use financial measures alongside appropriate nonfinancial evidence, since no single ratio captures every relevant consideration.
- C
Exclude impacts that are difficult to monetize.
- D
Compare only costs and ignore how benefits are distributed.
A company is considering replacing an aging system. Which description best belongs in the baseline for assessing the replacement’s value?
- A
Assume the current system has no future costs or benefits because it is being replaced.
- B
Estimate maintenance, failure rates, and service performance if the current system remains in use.
- C
Include only the purchase price of the replacement system.
- D
Compare the replacement with an ideal system that has no failures.
What is the term for the credible outcome expected if a project does not proceed, including existing activities and likely developments? Enter the term.
A project exceeds its budget but improves safety and service quality compared with what would happen without it. Which conclusion is best supported?
- A
It cannot create value because exceeding the budget always eliminates all benefits.
- B
It creates value only if it also finishes on schedule.
- C
It may create value if its outcomes are better than the credible alternative, despite exceeding its budget.
- D
It must create value because it delivered the planned feature.
True or false: An unfavorable outcome that might occur is already a realized loss.
- A
True
- B
False
A proposed project may improve resilience and customer satisfaction, but those outcomes are difficult to monetize. How should its value be assessed?
- A
Assess financial returns alongside relevant nonfinancial evidence, objectives, and stakeholder priorities.
- B
Use a single financial ratio because it captures all relevant impacts.
- C
Exclude impacts that are difficult to express in money.
- D
Treat stakeholder priorities as irrelevant if financial returns are positive.
What is the term for the documented reference point against which a project’s expected or actual effects are assessed? Enter the term.
A project’s estimated delivery cost rises, but its expected outcomes and the without-project alternative have not yet been reassessed. What can be concluded?
- A
Any increase in cost proves that project value has fallen.
- B
A cost increase proves that the project is no longer feasible.
- C
Cost and value are interchangeable measures, so only the revised cost matters.
- D
The cost estimate has changed, but the project’s value must be reassessed by comparing outcomes with the alternative.
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