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NEW QUESTION: 1
You work as a project manager for BlueWell Inc. Your project is using a new material to construct a large warehouse in your city. This new material is cheaper than traditional building materials, but it takes some time to learn how to use the material properly. You have communicated to the project stakeholders that you will be able to save costs by using the new material, but you will need a few extra weeks to complete training to use the materials. This risk response of learning how to use the new materials can also be known as what term?
A. Cost-benefits analysis
B. Benchmarking
C. Cost of conformance to quality
D. Team development
Answer: C
Explanation:
Explanation/Reference:
Explanation:
When the project team needs training to be able to complete the project work it is a cost of conformance to quality.
The cost of conformance to quality defines the cost of training, proper resources, and the costs the project must spend in order to ascertain the expected levels of quality the customer expects from the project. It is the capital used up throughout the project to avoid failures. It consists of two types of costs:
Prevention costs: It is measured to build a quality product. It includes costs in training, document

processing, equipment, and time to do it right.
Appraisal costs: It is measured to assess the quality. It includes testing, destructive testing loss, and

inspections.
Incorrect Answers:
A: Benchmarking compares any two items, such as materials, vendors, or resources.
B: Cost-benefit analysis is the study of the benefits in relation to the costs to receive the benefits of a decision, a project, or other investment.
D: Team development describes activities the project manager uses to create a more cohesive and responsive project team.

NEW QUESTION: 2
Cavanaugh Inc. has a beta of 1.2. Next year you project the market will earn 12% and the risk free rate will be 5%. If you buy Cavanaugh you project your return will be 13%. Thus you think:
A. Cavanaugh's performance will just matched the market return on a risk-adjusted basis.
B. Cavanaugh's performance has nothing to do with the market return.
C. Cavanaugh will underperformed the market on a risk-adjusted basis.
D. Cavanaugh will outperform the market on a risk-adjusted basis.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Rs = Rf + B(Rm - Rf)Rs = .05 + 1.2(.12-.05)Rs = .134 or 13.4%You project Cavanaugh will out perform the market.

NEW QUESTION: 3
Scenario
Additional Information
Product Description

Quality notes from the Daily Log
The Director of Information Technology Division (DIT) has been asked to ensure that any changes to the outsourced staff employment contracts adhere to employment law. The DIT will review future job descriptions of the transferred staff before the final contract is signed with the selected service provider.
The service level agreement between MFH and the selected service provider will specify the type and quality of service required. The selected service provider must follow the industry standards for providing outsourced services.
MFH has a quality management system which contains a document control procedure for all its documentation, however this does not include change management.
All project documents will be subject to a quality review. Nominated products will require a formal approval record signed-off by the quality review chair.
Extract from the draft Quality Management Strategy (may contain errors) Introduction
1. This document defines the approach to be taken to achieve the required quality levels during the project.
2. The Project Board will have overall responsibility for the Quality Management Strategy.
3. Project Assurance will provide assurance on the implementation of the Quality Management Strategy.
Quality management procedure - Quality standards
4. The selected service provider will operate to industry standards for providing outsourced services.
5. MFH document standards will be used.
Records
6. A Quality Register will be maintained to record the planned quality events and the actual results from the quality activities.
7. Configuration Item Records will be maintained for each product to describe its status, version and variant.
8. Approval records for products that require them will be stored in the quality database.
Roles and responsibilities
9. The DIT will check that the employment contracts for outsourced staff adhere to employment law.
10. Team Managers will provide details of quality checks that have been carried out.
11. Team Managers will ensure that the Quality Register is updated with the names of team members who are involved in the review process.
12. The Senior User will review the Product Descriptions of the products to be produced by the selected service provider to ensure that they can be achieved.
Which statement applies to the Quality standards section?
A. Add 'All contracts must conform to current employment laws".
B. Delete entry 4 because external suppliers are responsible for applying any relevant standards to their work.
C. Add 'PRINCE2 change control procedures will be used to manage any changes to baselined products'.
D. Delete entry 5 because the lack of a change management procedure makes the MFH document standards unsuitable.
Answer: A