CAPM (Certified Associate in Project Management) Practice Exam

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Prepare for the CAPM (Certified Associate in Project Management) exam with our informative quiz. Test your knowledge through multiple-choice questions and detailed explanations to boost your confidence and readiness for the certification.

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!

Practice this question and more.

What should key performance indicators be defined based on?

The objectives in the project charter
The number of stakeholders involved in the project
The total budget of the project
The estimated project duration

The correct answer is: The objectives in the project charter

Key performance indicators (KPIs) should be defined based on the objectives in the project charter because they are directly tied to the project's goals and success criteria. The project charter outlines the high-level project objectives, scope, and stakeholders' expectations. By aligning KPIs with the objectives in the project charter, project managers can effectively measure and track the project's progress and success. Options B, C, and D are not correct because the number of stakeholders involved, the total budget of the project, and the estimated project duration are important aspects of a project but do not necessarily dictate the key performance indicators. KPIs need to be directly related to the project's objectives to ensure that the project is progressing in the right direction and delivering the intended outcomes.