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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.

20 questions
01
True or false
1 point

A project exceeds its budget but creates substantial safety improvements compared with what would happen without it. Could it still create value?

  1. A

    True

  2. B

    False

02
Choose one
1 point

A team is setting the baseline for a proposed service upgrade. Which approach best represents the outcome without the project?

  1. A

    Assume nothing changes and that there are no costs or benefits without the project.

  2. B

    Include existing activities and expected developments that would occur without the project.

  3. C

    Include only the project option's expected outcomes.

  4. D

    Use the most optimistic outcome for the current situation.

03
Written response
1 point

What project-assessment concept asks whether a project can be delivered and operated within its technical, legal, commercial, organizational, and resource constraints?

04
Fill in the blank
1 point

A change in estimated spending is a change in ; by itself, it does not establish a change in project .

05
Choose one
1 point

Two project options have different financial and nonfinancial effects. Which approach best supports a value judgment?

  1. A

    Rank options only by which one has the lowest delivery cost.

  2. B

    Choose the option with the shortest schedule, regardless of outcomes.

  3. C

    Assess outcomes against project objectives and stakeholder priorities, using appropriate evidence.

  4. D

    Treat a positive financial ratio as sufficient even if important impacts are omitted.

06
Choose all
1 point

Which outcomes are examples of nonfinancial benefits that could contribute to project value? Select all that apply.

  1. A

    Improved safety

  2. B

    The amount of money required for delivery

  3. C

    Greater resilience

  4. D

    Higher customer satisfaction

  5. E

    Whether the project finished on schedule

07
Written response
1 point

What paired concept concerns how outcomes might differ from estimates and how likely or consequential those differences may be?

08
Fill in the blank
1 point

If assumptions or circumstances change, the original baseline and record any .

09
True or false
1 point

A project can be delivered within all relevant constraints, so its value must be positive. True or false?

  1. A

    True

  2. B

    False

10
Choose all
1 point

A new regulation requires a safety feature in a system replacement. Which effects may follow? Select all that apply.

  1. A

    Delivery cost may increase.

  2. B

    The project’s net value must increase because safety is improved.

  3. C

    The range of feasible designs may become smaller.

  4. D

    The project’s net value may decrease.

  5. E

    A cost increase by itself proves that the project has no value.

11
Choose one
1 point

Market demand shifts while a project is being assessed. What should the team do?

  1. A

    Call it a value change without further analysis.

  2. B

    Revise the project’s expected benefits only, leaving all other assumptions untouched.

  3. C

    Assess its effects on the baseline, project outcomes, costs, risks, and feasibility.

  4. D

    Ignore it unless it changes the project’s delivery schedule.

12
Open ended
1 point

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.

13
Choose one
1 point

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?

  1. A

    A single ratio is sufficient if all benefits are estimated in money.

  2. B

    Use financial measures alongside appropriate nonfinancial evidence, since no single ratio captures every relevant consideration.

  3. C

    Exclude impacts that are difficult to monetize.

  4. D

    Compare only costs and ignore how benefits are distributed.

14
Choose one
1 point

A company is considering replacing an aging system. Which description best belongs in the baseline for assessing the replacement’s value?

  1. A

    Assume the current system has no future costs or benefits because it is being replaced.

  2. B

    Estimate maintenance, failure rates, and service performance if the current system remains in use.

  3. C

    Include only the purchase price of the replacement system.

  4. D

    Compare the replacement with an ideal system that has no failures.

15
Written response
1 point

What is the term for the credible outcome expected if a project does not proceed, including existing activities and likely developments? Enter the term.

16
Choose one
1 point

A project exceeds its budget but improves safety and service quality compared with what would happen without it. Which conclusion is best supported?

  1. A

    It cannot create value because exceeding the budget always eliminates all benefits.

  2. B

    It creates value only if it also finishes on schedule.

  3. C

    It may create value if its outcomes are better than the credible alternative, despite exceeding its budget.

  4. D

    It must create value because it delivered the planned feature.

17
True or false
1 point

True or false: An unfavorable outcome that might occur is already a realized loss.

  1. A

    True

  2. B

    False

18
Choose one
1 point

A proposed project may improve resilience and customer satisfaction, but those outcomes are difficult to monetize. How should its value be assessed?

  1. A

    Assess financial returns alongside relevant nonfinancial evidence, objectives, and stakeholder priorities.

  2. B

    Use a single financial ratio because it captures all relevant impacts.

  3. C

    Exclude impacts that are difficult to express in money.

  4. D

    Treat stakeholder priorities as irrelevant if financial returns are positive.

19
Written response
1 point

What is the term for the documented reference point against which a project’s expected or actual effects are assessed? Enter the term.

20
Choose one
1 point

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?

  1. A

    Any increase in cost proves that project value has fallen.

  2. B

    A cost increase proves that the project is no longer feasible.

  3. C

    Cost and value are interchangeable measures, so only the revised cost matters.

  4. D

    The cost estimate has changed, but the project’s value must be reassessed by comparing outcomes with the alternative.