Project Management Quiz

What is the primary purpose of Earned Value (EV) in project management?

• To track actual costs

• To measure project scope

• To assess the value of completed work

• To forecast future costs

Which of the following best describes the "Cost Performance Index" (CPI)?

• Ratio of planned value to actual cost

• Ratio of earned value to actual cost

• Ratio of actual cost to earned value

• Ratio of planned value to earned value

What does the "Payback Period" measure?

• The total cost of a project

• The time required to recover the initial investment

• The profitability of a project

• The future value of cash flows

What is the main function of the Balance Sheet?

• To show the profitability of a company

• To provide a snapshot of the company's financial position

• To track cash inflows and outflows

• To detail the company's revenues and expenses

What does the "Discount Rate" help determine in project finance?

• The project's overall duration

• The present value of future cash flows

• The total cost of the project

• The time to achieve profitability

Which of the following is considered an operating expense (OpEx)?

• Purchase of new equipment

• Payment of utility bills

• Acquisition of land

• Construction of a new facility

What is the role of a "contingency reserve" in project management?

• To fund new project features

• To cover potential risks and unexpected costs

• To enhance project quality

• To decrease project duration

What is the purpose of the "Profitability Index" (PI)?

• To calculate the time required to break even

• To compare the present value of cash flows to the total cost of the project

• To measure the total cost of the project

• To determine the duration of the project

Which method of estimating relies heavily on expert knowledge?

• Parametric Estimating

• Analogous Estimating

• Bottom-Up Estimating

• Expert Judgment

What does the "Return on Assets" (ROA) measure?

• The ratio of debt to equity

• The company's liquidity position

• The efficiency of using assets to generate profits

• The profitability relative to shareholders' equity