Business Management
BUSINESS MANAGEMENT – APM PMQ COMPETENCE TEST 2024 GLOSSARY SERIES 2
GLOSSARY 2
NOTE: This is part 2 of a complete series of APM (Association for Project Management) PMQ (Project
Management Qualification) Glossary where we take a thorough look into various terms and definitions
as of September 2024, this is all you need for your exam preps
Circle the letter of the Definition that corresponds to the displayed Term.
1
Question: BAC (Budget at completion)
a) A description of where the project currently stands, usually in the form of a written report, issued to
both the project team and other responsible people on a regular basis, stating the status of an activity,
work package or whole project. It may be a formal report on the input, issues and actions resulting from
a status meeting.
b) A project control process based on a structured approach to planning, cost collection and
performance measurement. It facilitates the integration of project scope, time and cost objectives and
the establishment of a baseline plan of performance measurement.
c) The sum total of the time-phased budgets.
d) A tangible or intangible product typically delivered by a project. Used interchangeably with output
and product.
Correct Answer: The sum total of the time-phased budgets.
Explanation: The Budget at Completion (BAC) is the total budget allocated for the entire project,
representing the sum total of the time-phased budgets.
2
Question: Milestone
a) The incurred costs that are charged to the project budget and for which payment has been made, or
accrued.
b) The application of management processes that bring together the planning of benefits, success
criteria, scope, quality, time, resources, cost, risk, communications, etc. to create the project
management plan.
c) An estimating technique that uses detailed specifications to estimate time and cost for each product
or activity. Also known as bottom-up estimating.
d) A key event selected for its importance in the schedule commonly associated with tangible
acceptance of deliverables.
Correct Answer: A key event selected for its importance in the schedule commonly associated with
tangible acceptance of deliverables.
Explanation: A milestone is a significant point or event in a project schedule that marks the completion
of a key deliverable or phase.
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3
Question: Product
a) An estimating technique that uses a statistical relationship between historic data and other variables
to calculate an estimate.
b) A tangible or intangible product output typically delivered by a project. Used interchangeably with
deliverable and output.
c) A hierarchical way in which the organisation may be divided into management levels and groups, for
planning and control purposes.
d) The sum total of the time-phased budgets.
Correct Answer: A tangible or intangible product output typically delivered by a project.
Explanation: The term "Product" refers to any tangible or intangible output delivered by a project,
synonymous with deliverable and output.
4
Question: AC (Actual cost)
a) An estimating technique based on comparison with, and factoring from, the cost of similar, previous
work. Also known as analogous estimating.
b) The sum total of the time-phased budgets.
c) The incurred costs that are charged to the project budget and for which payment has been made, or
accrued.
d) A hierarchical way in which the organisation may be divided into management levels and groups, for
planning and control purposes.
Correct Answer: The incurred costs that are charged to the project budget and for which payment has
been made, or accrued.
Explanation: Actual Cost (AC) refers to the total costs incurred for the work performed during a given
time period.
5
Question: Outcome
a) The set of approved project metrics that form the basis for measuring progress and in a linear project
life cycle implementing change control.
b) The authorised budget assigned to the scheduled work to be completed. Also referred to as the
budgeted cost of work scheduled (BCWS).
c) The changed circumstances or behaviour that results from the use of an output and leads to
realisation of benefits.
d) The incurred costs that are charged to the project budget and for which payment has been made, or
accrued.
Correct Answer: The changed circumstances or behaviour that results from the use of an output and
leads to realisation of benefits.
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Explanation: An outcome refers to the effects or changes resulting from the use of project outputs,
which are intended to generate benefits.
6
Question: Analytical estimating
a) Used to determine the profitability of a potential investment. It is the discount rate that makes the net
present value zero.
b) A hierarchical way in which the organisation may be divided into management levels and groups, for
planning and control purposes.
c) An estimating technique that uses detailed specifications to estimate time and cost for each product
or activity. Also known as bottom-up estimating.
d) The application of management processes that bring together the planning of benefits, success
criteria, scope, quality, time, resources, cost, risk, communications, etc. to create the project
management plan.
Correct Answer: An estimating technique that uses detailed specifications to estimate time and cost for
each product or activity.
Explanation: Analytical estimating, also known as bottom-up estimating, involves detailed analysis of
each component to determine time and cost estimates.
7
Question: Deliverable
a) A tangible or intangible product typically delivered by a project. Used interchangeably with
deliverable and product.
b) A tangible or intangible product typically delivered by a project. Used interchangeably with output
and product.
c) A statement that will be taken for granted as fact and upon which the project business case will be
justified.
d) A measure of progress that expresses costs committed and work achieved in the same units.
Correct Answer: A tangible or intangible product typically delivered by a project.
Explanation: A deliverable is any measurable outcome or product that is produced as a result of a
project.
8
Question: EV (Earned value)
a) The changed circumstances or behaviour that results from the use of an output and leads to
realisation of benefits.
b) A limitation or boundary imposed by senior management or some external authority.
c) A tangible or intangible product typically delivered by a project. Used interchangeably with
deliverable and product.
d) A measure of progress that expresses costs committed and work achieved in the same units.
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