Your organization wants to start a new project. The study shows that the new project will save
organization approximately $200,000 per year. Now it is required to move forward with the project.
Which of the following documents will define the project justification?

A.
Feasibility study

B.
Project charter

C.
Work breakdown structure

D.
Project scope

Explanation:
The project charter defines the business needs, the project justification, the current requirements,
and the new warehouse your organization wants to create. The project charter is the document
that formally authorizes a project. The project charter provides the project manager with the
authority to apply organizational resources to project activities. According to PMBOK Guide, the
project charter should address the following information:
Requirements that satisfy customer, sponsor, and other stakeholder needs, wants and
expectations Business needs, high-level project description, or product requirements that the
project is
undertaken to address

Project purpose or justification
Assigned Project Manager and authority level
Summary milestone schedule
Stakeholder influences
Functional organizations and their participation
Organizational, environmental and external assumptions
Organizational, environmental and external constraints
Business case justifying the project, including return on investment
Summary budget
If required, it also authorizes the next project phase, and updates the charter. The project manager
should always be assigned prior to the start of planning, and preferably while the project charter is
being developed.
Answer option C is incorrect. The decomposition of the project scope results in the project’s Work
Breakdown Structure (WBS). The work packages of the WBS will help the project manager and
team create accurate time and cost estimates.
Answer option A is incorrect. The feasibility study is usually created before the project scope,
though not always. This document defines the likelihood of the project being able to reach its
objectives.
Answer option D is incorrect. The project scope defines all that the project should complete.