Question from C. Scordo on Cost Management or Project Selection ?

Submitted by bridge on Tue, 06/18/2013 - 04:35

Costs incurred in one area of a project can offset costs in another area of the same project. However, it is not the best practice to consider only the costs of project execution when making project decisions. What must also be considered?

A. Return on Investment

B. Total Cost of Ownership

C. Project Lifecycle Costs
 
D. Environmental Impact
 
Scordo's answer - C. 
 
Reason : C - Project Cost Management is primarily concerned with the cost of the resources needed to complete schedule activities. However, Project Cost Management should also consider the effect of project decisions on the cost of using, maintaining, and supporting the product, service or result of the project. [PMBOK Page 167] [Project Cost Management]
 
 
My argument : Cant I interprete the question as a question on project selection ? When I look at the words ".. making project decisions", I think it means project selection question. Then the answer becomes A. Because for a project selection ROI is one of the important factors.
 
Plz. help. What is there in the question that leads me to Project Cost Management and not to Project Selection ?
 
 
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vishalpratap

Tue, 06/18/2013 - 04:52

 As question is saying A project and not multiple projects so u Wud have to consider cost in a particular project

cnppmp's picture

cnppmp

Tue, 06/18/2013 - 08:27

It should be C, it is always you should consider the project life cycle costs. The answer provided is correct.


Execution process group would be the phase cycle pf project life cycle expend moost of the of the cost.


 


ROI is one of the project selection criteria but teh question framed above is not referring to project selection, it further says  "it is not the best practice to consider only the costs of project execution when making project decisions. What must also be considered?"


So question is the above part and need to udnerstand what is being asked, do not jump to the conclusion it is talking about the project selection. The situational questions are meant for confusing, so compehensive reading makes lot of difference here.


Regards


CN Patil