ACCA Strategic Professional · Strategic Business Leader · Leading and managing projects
Harlow Freight, a logistics company, is considering a new warehouse automation system. The board asks the project sponsor to explain why the work should be done, what benefits are expected and whether it is worth the investment, before any detailed planning begins. Which document, produced at project initiation, is designed to answer these questions?
The business case is the initiation document that explains why a project should be done, the expected benefits, costs and risks, and whether it is worthwhile. The board uses it to authorise the project, whereas planning and closure documents serve later stages.
- ABusiness caseCorrect
- BWork breakdown structure
- CPost-implementation review report
- DProject closure report
Explanation
The business case sets out the justification, expected benefits, costs and risks, and is used by the board to decide whether to authorise the project. A work breakdown structure decomposes scope for planning and does not justify the project. Post-implementation reviews and closure reports come at the end of the life cycle.
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