Question on Cost from Oliver Lehmann??

 






















 71.

A project sponsor requested earned value data on two concurrent projects from the project managers. Both projects are regarded as equally important and strategically beneficial and have been finished by over 80%. He received the following information:

Project A:
   PV: $1,800,000
   EV: $2,300,000
   AC: $2,100,000

Project B:
   PV: $2,000,000
   EV: $1,500,000
   AC: $1,600,000

The sponsor considers to shift some resources from project A to project B to speed up the second project which is currently behind schedule.

What is the most likely outcome of such a measure?
 

 

Changing team assignments during late course of a project typically increases cost efficiency.

  Changing team assignments during late course of a project typically increases time efficiency.
 

According to the law of diminishing returns, the consolidated cost variance of the two projects will decrease.

 

According to the law of diminishing returns, the consolidated cost variance of the two projects will increase.


 


 


 any explaination why answer is 3.


The law of diminishing returns says that each time we do something to receive a benefit, the benefit will be less and less. First time it would give great benefit and then gradually benefits would reduce with each usage.


How that fits into this question. Please explain?


 


 

to explain,

but in real life we experience and perform such events.

for example,

friend A has money and he can purchase more than what he needed for a week.

friend B has less money can borrow from A and week has gone happily for both.

next week A will be less comfortable but can do some how, while B will be better but in 3rd week might be both at verg.

other example

balancing spaces of your cpu hard disc partitions.

means it is balancing act , shifting over allocation to difficient pocket.

remembering principle only for PMP exam is sufficient rather to go in deep.