BCR

Submitted by Geethika on Thu, 04/25/2013 - 18:13

1) A project has the following characteristics:

Payback of $ 2000
Profit of $ 1000
Project cost of $ 800
Life cycle cost of $ 1200
 
What is the benefit cost ratio of the project?
 
A 2.50 
B 1.25
C 1.67
D 0.83
 
Source ans A.  Should we consider only Project cost and not Life cycle cost while calculating BCR?
 

2) You are the project manager for a complicated construction project. You have several groups working with you in the project. To plan resources for this project, you should preferably use

 
A Staffing pool description
B Staffing Management plan (I believe this should be ans..any inputs?)
C Responsibility Assignment matrix (Source ans)
D Organization matrix
 
 
Forums: 
PMP / CAPM exam Question bank
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steelproject2012

Thu, 04/25/2013 - 19:05

(2) here we are told "several groups" meaning "how do we co-ordinate them?"

A & D are simply noise ( i suppose);

B: is a general part of HR Mgt Plan which deals with staffing, roles & responsibilities, training & rewards etc.

C: RAM (by implementing RACI) assigns specific roles to individuals on the various tasks. This way, u knw who is to do what and the impending issue of having multiple groups is reduced or better managed.

sspawar

Fri, 04/26/2013 - 02:47

 q 1

profit + cost = benefit

1000 + 800 = 1800

1800/800 = 2.50

 

A life cycle may have many projects

he is asking current (in subject) and one project.

For example it may be product life cycle , which may have many projects along with a project as described in question.

----------------

q2

I also do agree with you

this pmbok - chapter is little confusing

SMP is shown as output.

where RAM is a tool of HRP

A single tool how could be sufficient to plan resources?

whereas SMP have a complete scope to plan resources.

Geethika

Fri, 04/26/2013 - 05:57

Thank you!!

 
But if you notice, they have used Payback / Project Cost = 2000 / 800 = 2.50
 
your method yields 2.25

profit + cost = benefit, 1000 + 800 = 1800

1800/800 = 2.25

 

 

sspawar

Fri, 04/26/2013 - 07:30

 YOU ARE RIGHT.

But payback could not be equal of benefit, it should be just double of cost.

hence A should be 2.25.

ssundar

Fri, 04/26/2013 - 02:35

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