The Baseline Project Plan

question 30

Multiple Choice

The Baseline Project Plan:

• A) contains all information collected and analyzed during project initiation and planning.
• B) specifies detailed project activities for the next life cycle phase, analysis, and less detail for subsequent project phases.
• C) is used by the project selection committee to help decide if the project should be accepted, redirected, or canceled.
• D) reflects the best estimate of the project's scope, benefits, costs, risks, and resource requirements given the current understanding of the project.
• E) does all of the above.

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Definitions:

Fixed Costs

Expenses that do not change with changes in the level of production or sales, such as rent, salaries, and insurance premiums.

Marginal Cost

The expense incurred from manufacturing an extra unit of a product or service.

Average Cost

The total cost of production divided by the number of goods or services produced, often used to determine profitability.

Maximize Profit

The process or strategy by which a business attempts to achieve the highest possible profit from its operations, often by increasing revenue, reducing costs, or both.