WGU Project Management Exam
\.A Guide to Project Management Body of Knowledge (PMBOK Guide) - Answer- The project
management standard developed by the Project Management Institute.
\.Benefit measurement methods - Answer- A type of decision model that compares the
benefits obtained from a variety of new project requests by evaluating them using the same
criteria and comparing the results.
\.Co-located - Answer- When team members work together at the same physical location
\.Constrained optimization models - Answer- Decision models that use complex principles of
statistics and other mathematical concepts to assess a proposed project.
\.Cost-benefit analysis - Answer- A commonly used benefit measurement method that
calculates the cost of producing the product, service, or result of the project and compares this
to the financial gain the project is expected to generate.
\.Decision model - Answer- A formal method of project selection that helps managers make
the best use of limited budgets and human resources. Includes benefit measurement methods
and constrained optimization models.
\.Discounted cash flow (DCF) - Answer- Compares the value of the future cash flows of the
project to today's dollars.
,\.Economic model - Answer- A type of benefit measurement method. It is a series of financial
calculations that provide data on the overall financials of the project and is generally used as a
project selection technique.
\.Expert judgment - Answer- A technique used in project selection, determining estimates,
and determining other related project information that relies on the knowledge of those with
expertise on the requested subject matter. Expert judgment can come from, stakeholders, other
departments, consultants, team members, vendors, or industry groups.
\.Feasibility study - Answer- Undertaken to determine whether the project is a viable project,
the probability of project success, and the viability of the product of the project
\.Functional organization - Answer- A form of organizational structure. Functional
organizations are traditional organizations with hierarchical reporting structures.
\.Internal rate of return (IRR) - Answer- The discount rate when the present value of the cash
inflows equals the original investment. Projects with higher IRR values are generally considered
better than projects with lower IRR values. Assumes that cash inflows are reinvested at the IRR
value.
\.Matrix organization - Answer- An organizational structure where employees report to one
functional manager and at least on project manager. Functional managers assign employees to
projects and carry out administrative duties, while project managers assign tasks associated
with the project to team members and execute the project.
\.Net present value - Answer- Evaluation of the cash inflows using the discounted cash flow
technique, which is applied to each period the inflows are expected. NPV subtracts the initial
project investment from the total cash flow in today's dollars. It is similar to discounted cash
flows.
,\.Operations - Answer- Operations typically involve ongoing functions that support the
production of goods or services. They don't have a beginning or an end.
\.Payback period - Answer- The length of time it takes a company to recover the initial cost of
producing the product or service of the project.
\.Program - Answer- A grouping of related projects that are managed together to capitalize
on benefits that couldn't be achieved if the projects were managed separately.
\.Project - Answer- Temporary in nature, with a definite start and end date; creates a unique
product, service, or result. It is completed when the goals and objectives of the project have
been met and signed off on by the stakeholders.
\.Project management - Answer- Applying skills, knowledge, and project management tools
and techniques to fulfill the project requirements.
\.Project Management Institute (PMI) - Answer- The world's leading professional project
management association.
\.Project management knowledge areas - Answer- The nine project management groupings,
or Knowledge Areas, that bring together common or related processes. They are Integration,
Scope, Time, Cost, Quality, Human Resource, Communications, Risk & Procurement.
\.Project management office (PMO) - Answer- Established by organizations to create and
maintain procedures and standards for project management methodologies to be used
throughout the organization.
, \.Project manager - Answer- The person responsible for applying the skills, knowledge, and
project management tools and techniques to the project activities to successfully complete the
project objectives.
\.Project performance indicators - Answer- Measures that the project manager uses to
determine whether the project is on track, such as any deviation from the baseline schedule or
the baseline budget.
\.Project plan - Answer- A document, or assortment of documents, that constitutes what the
project is, what the project will deliver, and how all the processes will be managed. Used as the
guideline throughout the project Executing and Controlling phases to track and measure project
performance and to make future project decisions. Also used as a communication and
information tool for stakeholders, team members, and management.
\.Project selection - Answer- Used to determine which proposed projects are approved to
move forward
\.Project-based organization - Answer- An organizational structure focused on projects.
Project managers generally have ultimate authority over the project, and sometimes supporting
departments such as human resources and accounting might report to the project manager.
Project managers are responsible for making project decisions and acquiring and assigning
resources.
\.Scoring model - Answer- One of the benefit measurement methods used for project
selection. It contains a predefined list of criteria against which each project is ranked. Each
criterion has a scoring range and a weighting factor. A scoring model can also be used as a tool
to select from among competing vendors.
\.Assumption - Answer- An event or action believed to be true for planning purposes. Project
assumptions should always be documented.
\.A Guide to Project Management Body of Knowledge (PMBOK Guide) - Answer- The project
management standard developed by the Project Management Institute.
\.Benefit measurement methods - Answer- A type of decision model that compares the
benefits obtained from a variety of new project requests by evaluating them using the same
criteria and comparing the results.
\.Co-located - Answer- When team members work together at the same physical location
\.Constrained optimization models - Answer- Decision models that use complex principles of
statistics and other mathematical concepts to assess a proposed project.
\.Cost-benefit analysis - Answer- A commonly used benefit measurement method that
calculates the cost of producing the product, service, or result of the project and compares this
to the financial gain the project is expected to generate.
\.Decision model - Answer- A formal method of project selection that helps managers make
the best use of limited budgets and human resources. Includes benefit measurement methods
and constrained optimization models.
\.Discounted cash flow (DCF) - Answer- Compares the value of the future cash flows of the
project to today's dollars.
,\.Economic model - Answer- A type of benefit measurement method. It is a series of financial
calculations that provide data on the overall financials of the project and is generally used as a
project selection technique.
\.Expert judgment - Answer- A technique used in project selection, determining estimates,
and determining other related project information that relies on the knowledge of those with
expertise on the requested subject matter. Expert judgment can come from, stakeholders, other
departments, consultants, team members, vendors, or industry groups.
\.Feasibility study - Answer- Undertaken to determine whether the project is a viable project,
the probability of project success, and the viability of the product of the project
\.Functional organization - Answer- A form of organizational structure. Functional
organizations are traditional organizations with hierarchical reporting structures.
\.Internal rate of return (IRR) - Answer- The discount rate when the present value of the cash
inflows equals the original investment. Projects with higher IRR values are generally considered
better than projects with lower IRR values. Assumes that cash inflows are reinvested at the IRR
value.
\.Matrix organization - Answer- An organizational structure where employees report to one
functional manager and at least on project manager. Functional managers assign employees to
projects and carry out administrative duties, while project managers assign tasks associated
with the project to team members and execute the project.
\.Net present value - Answer- Evaluation of the cash inflows using the discounted cash flow
technique, which is applied to each period the inflows are expected. NPV subtracts the initial
project investment from the total cash flow in today's dollars. It is similar to discounted cash
flows.
,\.Operations - Answer- Operations typically involve ongoing functions that support the
production of goods or services. They don't have a beginning or an end.
\.Payback period - Answer- The length of time it takes a company to recover the initial cost of
producing the product or service of the project.
\.Program - Answer- A grouping of related projects that are managed together to capitalize
on benefits that couldn't be achieved if the projects were managed separately.
\.Project - Answer- Temporary in nature, with a definite start and end date; creates a unique
product, service, or result. It is completed when the goals and objectives of the project have
been met and signed off on by the stakeholders.
\.Project management - Answer- Applying skills, knowledge, and project management tools
and techniques to fulfill the project requirements.
\.Project Management Institute (PMI) - Answer- The world's leading professional project
management association.
\.Project management knowledge areas - Answer- The nine project management groupings,
or Knowledge Areas, that bring together common or related processes. They are Integration,
Scope, Time, Cost, Quality, Human Resource, Communications, Risk & Procurement.
\.Project management office (PMO) - Answer- Established by organizations to create and
maintain procedures and standards for project management methodologies to be used
throughout the organization.
, \.Project manager - Answer- The person responsible for applying the skills, knowledge, and
project management tools and techniques to the project activities to successfully complete the
project objectives.
\.Project performance indicators - Answer- Measures that the project manager uses to
determine whether the project is on track, such as any deviation from the baseline schedule or
the baseline budget.
\.Project plan - Answer- A document, or assortment of documents, that constitutes what the
project is, what the project will deliver, and how all the processes will be managed. Used as the
guideline throughout the project Executing and Controlling phases to track and measure project
performance and to make future project decisions. Also used as a communication and
information tool for stakeholders, team members, and management.
\.Project selection - Answer- Used to determine which proposed projects are approved to
move forward
\.Project-based organization - Answer- An organizational structure focused on projects.
Project managers generally have ultimate authority over the project, and sometimes supporting
departments such as human resources and accounting might report to the project manager.
Project managers are responsible for making project decisions and acquiring and assigning
resources.
\.Scoring model - Answer- One of the benefit measurement methods used for project
selection. It contains a predefined list of criteria against which each project is ranked. Each
criterion has a scoring range and a weighting factor. A scoring model can also be used as a tool
to select from among competing vendors.
\.Assumption - Answer- An event or action believed to be true for planning purposes. Project
assumptions should always be documented.
