PMI Agile Certified Practitioner (ACP) Practice Exam

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Prepare for the PMI Agile Certified Practitioner Exam with multiple choice questions and flashcards. Each question includes explanations to help you gear up for your test!

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What does ROI stand for in project management?

Return on Investment
Risk of Impact
Resource Overhead Indicator
Rate of Innovation

The correct answer is: Return on Investment

In project management, ROI stands for Return on Investment. This metric is crucial for assessing the profitability or efficiency of an investment relative to its cost. It essentially measures the financial return achieved from a given investment and helps project managers and stakeholders determine whether the project's outcomes justify its expenses. Calculating ROI involves taking the net profit from the investment and dividing it by the total costs associated with the investment, often expressed as a percentage. A higher ROI indicates a more successful investment, making it an essential criterion for decision-making in project management. Understanding ROI helps managers analyze different projects, prioritize initiatives, and allocate resources effectively to maximize overall returns for the organization.