CAPM (Certified Associate in Project Management) Practice Exam

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Study for the Certified Associate in Project Management Exam with practice questions and answers. Enhance your understanding of project management principles and strategies to excel in the exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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In a projectized organization, why might hourly costs inflate?

Due to high demand for projects
While specialists wait between assignments
Because of overbudgeting
Due to unexpected project delays

The correct answer is: While specialists wait between assignments

In a projectized organization, hourly costs might inflate while specialists wait between assignments. This is because in a projectized organization, employees are dedicated full-time to projects. When there are gaps between projects or assignments, specialists might not be actively working on billable tasks, leading to an increase in hourly costs as the organization still incurs expenses without generating revenue during these idle periods. Option A is not directly related to the reason why hourly costs might inflate in a projectized organization. High demand for projects might even be beneficial for the organization by keeping specialists continuously engaged in billable work. Option C, overbudgeting, would not necessarily cause hourly costs to inflate. Overbudgeting might lead to unused budgeted funds but does not directly impact hourly costs. Option D, unexpected project delays, could impact the overall project costs but does not specifically address why hourly costs might inflate due to idle time between assignments for specialists.