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PK0-004 · Question #393

A company's management team is in a meeting to review all the products and services delivered in the first quarter of the year for profitability. They are requesting information on payback period…

The correct answer is A. Business case. The business case (A) is the document that justifies the project from a financial and strategic perspective. It typically contains financial metrics such as payback period (how long until the investment is recovered), return on investment (ROI), net present value, and total…

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Question

A company's management team is in a meeting to review all the products and services delivered in the first quarter of the year for profitability. They are requesting information on payback period, return on investment, and total cost of ownership. The project manager is checking the project repository for available documentation. In which of the following documents is the project manager MOST likely to find the required information?

Options

  • ABusiness case
  • BProject charter
  • CRisk management plan
  • DScope of work

How the community answered

(23 responses)
  • A
    91% (21)
  • C
    4% (1)
  • D
    4% (1)

Explanation

The business case (A) is the document that justifies the project from a financial and strategic perspective. It typically contains financial metrics such as payback period (how long until the investment is recovered), return on investment (ROI), net present value, and total cost of ownership (TCO). The project charter (B) authorizes the project but focuses on high-level scope and objectives rather than detailed financial analysis. The risk management plan (C) covers risk identification and mitigation. The scope of work (D) defines deliverables and work boundaries, not financial justification.

Topics

#business case#ROI#payback period#project documentation

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