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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What is the purpose of conducting a make or buy analysis?

Determining the project schedule
Deciding whether to outsource
Analyzing market trends
Determining whether to make or buy items

The correct answer is: Determining whether to make or buy items

Conducting a make or buy analysis is to determine whether to make or produce certain project components or buy them from external sources. This analysis involves looking at various factors such as cost, resources, expertise, and capacity to make an informed decision on whether to produce in-house or outsource the required items. Therefore, the correct answer is D. Options A, C, and B are incorrect as a make or buy analysis specifically focuses on the decision-making process regarding internal production versus outsourcing, rather than determining project schedules, analyzing market trends, or simply deciding whether to outsource without considering the option of in-house production.