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During a portfolio review, it is discovered that a program's benefits are being realized, but the project costs have exceeded the contingency fund by 20%. What is the best immediate action for the benefits owner?
When a program's benefits are being realized but costs have exceeded contingency by 20%, the benefits owner must determine whether the business case still holds — i.e., whether the expected ROI remains valid given the higher costs. Re-evaluating the business case (A) is the gover…Read full explanation
A project manager is calculating the Return on Investment (ROI) for an IT infrastructure upgrade. Which factor must be included in the 'Investment Cost' component of the ROI calculation?
Training costs for staff to operate the new infrastructure are a direct, one-time cost required to realize the benefits of the investment, so they must be included in the Investment Cost component of ROI. ROI compares total costs (acquisition, implementation, training, transition…Read full explanation
A company is shifting from a project-based to a value-based management model. Which of the following best describes an 'outcome' versus an 'output'?
In value-based management, an output is a tangible deliverable produced by a project or process, while an outcome is the measurable business result or change that the output enables. The automated reporting tool is the output; the reduction in manual data entry time is the outcom…Read full explanation
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