question on assumptions

Submitted by vijayavadrevu on Sat, 04/20/2013 - 09:37

Hi,

 

I have come across a question in one of the free sample tests



Which of the following is an example of assumption?

a) NPV of your project is USD 1562.

 

b) IRR can be calculated by internal cash flow.

 

c) Cost of raw material is USD 10 per unit.

 

d) Project charter has authorized the existence of your project.

 

C is given as right answer

 

Can someone explain?

 

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PMP / CAPM exam Question bank
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steelproject2012

Sun, 04/21/2013 - 12:48

ASSUMPTIONS (pg 419 PMBOK 4th): They are factors that, FOR PLANNING PURPOSES, are considered to be true, real, or certain without further proof or demonstration.

What would be the correct response in this case?

steelproject2012

Mon, 04/22/2013 - 21:05

Project planning is ongoing as the team analyzes how long it will take to process a customer through the new call center. This analysis will help them determine how many employees to have in the call center based on their sales projections. This is an example of what?

(A) Constraints

(B) Assumptions

(C) Strategic planning

(D) Operations management

 

Am writing 'cos no one has made a comment about the question on assumption, supported by an excerpt from pmbok.

aura

Fri, 05/22/2015 - 13:37

I think answer should be 'C'

Option A:-  Nvp can be calculated exactly using formula, so its not an assumption.

Option B:- Irr, same explanation as above, it use cash flow to calculate IRR, Its true, so it's not a assumption.

Option c:-  Here in this option cost is given but not documented anywhere, so its a assumption, if lets suppose we change the option C in this way, Cost of raw material is USD 10 per unit and documented in a cost management plan. 

Option D:- Project charter is available and documented, its not a assumption.