SPP Resource Allocation & Prioritization 2 — Questions and Answers
Question 1: Which prioritization framework uses four quadrants based on urgency and importance to help leaders allocate time and resources?
- RACI Matrix
- Eisenhower Matrix (Correct answer)
- Boston Consulting Group Matrix
- Ansoff Matrix
Correct answer: Eisenhower Matrix
The Eisenhower Matrix categorizes tasks by urgency and importance into four quadrants: Do, Schedule, Delegate, and Eliminate.
Question 2: A company has limited capital to invest across five projects. Which technique best helps allocate funds to maximize overall strategic return?
- Critical path method
- Capital rationing using NPV ranking (Correct answer)
- PERT analysis
- Benchmarking
Correct answer: Capital rationing using NPV ranking
Capital rationing with NPV ranking selects the combination of projects that maximizes total net present value within budget constraints.
Question 3: When two high-priority strategic initiatives compete for the same scarce engineering talent, the BEST first step is to:
- Delay both initiatives until more staff are hired
- Conduct a resource conflict analysis and escalate to leadership (Correct answer)
- Assign resources randomly to avoid favoritism
- Cancel the lower-budget initiative
Correct answer: Conduct a resource conflict analysis and escalate to leadership
A resource conflict analysis quantifies the impact of each option, enabling informed leadership decisions about trade-offs.
Question 4: In portfolio management, 'strategic fit' is used during resource allocation primarily to ensure that:
- All projects finish within the fiscal year
- Funded initiatives align with corporate objectives (Correct answer)
- Resources are distributed equally across departments
- External vendors are prioritized over internal teams
Correct answer: Funded initiatives align with corporate objectives
Strategic fit ensures that allocated resources flow to projects that directly advance the organization's defined goals and direction.
Question 5: The 'opportunity cost' of a resource allocation decision refers to:
- The direct cost of hiring additional staff
- The value of the best alternative forgone when choosing a specific use (Correct answer)
- Overhead costs associated with project management
- The cost of delaying a project by one quarter
Correct answer: The value of the best alternative forgone when choosing a specific use
Opportunity cost is the value of the next-best alternative sacrificed when committing resources to a particular option.
Question 6: An organization uses a scoring model to prioritize projects. Which factor is LEAST appropriate to include in the scoring criteria?
- Strategic alignment score
- Estimated ROI
- Project manager's personal preference (Correct answer)
- Risk-adjusted payback period
Correct answer: Project manager's personal preference
Personal preference introduces subjective bias; valid scoring models rely on objective, measurable criteria tied to strategy and value.
Question 7: A resource leveling technique in project scheduling is intended to:
- Maximize resource utilization at the expense of the schedule
- Smooth resource demand to avoid peaks and valleys without changing project scope (Correct answer)
- Replace human resources with automated tools
- Eliminate low-priority tasks from the project plan
Correct answer: Smooth resource demand to avoid peaks and valleys without changing project scope
Resource leveling redistributes work to smooth demand spikes, preventing overallocation while keeping scope intact.
SPP Resource Allocation & Prioritization 2
Which prioritization framework uses four quadrants based on urgency and importance to help leaders allocate time and resources?