age 1 of 68
WGU C783 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.
,age 2 of 68
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.
,age 3 of 68
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
, age 4 of 68
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.
WGU C783 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.
,age 2 of 68
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.
,age 3 of 68
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
, age 4 of 68
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.
