BUSINESS 313 Test 2 (Chapter 4)
Question and answers verified to pass
2026
Cost Account - correct answer ✔The intersection of work packages and the organizational unit creates
a project control point (cost account) that integrates work and responsibility.
Milestone - correct answer ✔A significant event in a project that occurs at a point in time. Milestones
should be natural, important control points in the project.
Organizational Breakdown Structure (OBS) - correct answer ✔The OBS depicts how the firm has
organized to discharge work responsibility. The purposes of the OBS are to provide a framework to
summarize organizational unit work performance, identify organization units responsible for work
packages, and tie the organizational unit to cost control accounts.
Priority Matrix - correct answer ✔Helps to identify which criterion is constrained, which should be
enhanced, and which can be accepted.
Constrain: The original parameter is fixed. The project must meet the completion date, specifications,
and scope of the project, or budget.
Enhance: Given the scope of the project, which criterion should be optimized? In the case of time and
cost, this usually means taking advantage of opportunities to either reduce costs or shorten the
schedule. Conversely, with regard to performance, enhancing means adding value to the project.
Process Breakdown Structure (PBS) - correct answer ✔Instead of being organized into deliverables
such as the WBS, the PBS is organized around phases. Deliverables are not ignored but are defined as
outputs required to move to the next phase. PBS can be referred to as the "waterfall method" since
progress flows through each stage.
PBS will provide a suitable alternative to WBS if the following checklist is met:
1. Deliverables needed to exit a phase and begin a new one.
2. Quality checkpoints to ensure that deliverables are complete and accurate.
Question and answers verified to pass
2026
Cost Account - correct answer ✔The intersection of work packages and the organizational unit creates
a project control point (cost account) that integrates work and responsibility.
Milestone - correct answer ✔A significant event in a project that occurs at a point in time. Milestones
should be natural, important control points in the project.
Organizational Breakdown Structure (OBS) - correct answer ✔The OBS depicts how the firm has
organized to discharge work responsibility. The purposes of the OBS are to provide a framework to
summarize organizational unit work performance, identify organization units responsible for work
packages, and tie the organizational unit to cost control accounts.
Priority Matrix - correct answer ✔Helps to identify which criterion is constrained, which should be
enhanced, and which can be accepted.
Constrain: The original parameter is fixed. The project must meet the completion date, specifications,
and scope of the project, or budget.
Enhance: Given the scope of the project, which criterion should be optimized? In the case of time and
cost, this usually means taking advantage of opportunities to either reduce costs or shorten the
schedule. Conversely, with regard to performance, enhancing means adding value to the project.
Process Breakdown Structure (PBS) - correct answer ✔Instead of being organized into deliverables
such as the WBS, the PBS is organized around phases. Deliverables are not ignored but are defined as
outputs required to move to the next phase. PBS can be referred to as the "waterfall method" since
progress flows through each stage.
PBS will provide a suitable alternative to WBS if the following checklist is met:
1. Deliverables needed to exit a phase and begin a new one.
2. Quality checkpoints to ensure that deliverables are complete and accurate.
