Business Finance Endterm Quiz #2

The primary purpose of financial reporting in an IS project is to simply document all expenses incurred.

• True
• False

If a project's Cost Performance Index (CPI) is 0.95, it indicates that the project is currently delivering more value than the cost incurred.

• True
• False

Implementing a robust change control process primarily helps in avoiding technical problems within an IS project.

• True
• False

A high Expected Monetary Value (EMV) for a risk always means the project should avoid that risk at all costs.

• True
• False

Contingency reserves are primarily used to cover costs associated with identified risks that have known mitigation plans.

• True
• False

The Project Cash Flow Statement is primarily used to assess the project's overall profitability over a specific period.

• True
• False

Transferring a risk means completely eliminating its potential impact on the project.

• True
• False

Regular, transparent financial reporting primarily benefits external stakeholders like investors, not internal project teams.

• True
• False

If an IS project has a negative variance in its schedule performance, it necessarily means it also has a negative variance in its cost performance.

• True
• False

A risk register is a static document created at the beginning of an IS project and rarely updated.

• True
• False