The smallest item in the WBS is called the work package. 1 is incorrect; this is not a valid term. 2 is incorrect because a task is the actual work, not the smallest item in the WBS. 3 is incorrect because a deliverable does not accurately define what the smallest item in the WBS is.

the 8/80 Rule states that the work package should not equate to less than eight hours of labor to create and no more than 80 hours of labor to create. 2 is incorrect because the Law of Diminishing returns describes the effect of added labor and the return for the labor. 3 is incorrect because the priority of the project doesn’t affect the decomposition of the project. 4 is incorrect because the timetable to create the WBS does not dictate the level of detail required for decomposition

the code of accounts is used to provide a hierarchical structure for the deliverables identified in the WBS. 1 is incorrect because the chart of accounts is an accounting tool for assigning pre-defined costs for deliverables such as cost per square foot, cost per hour, or cost per unit. 2 is incorrect; a bill of materials identifies all of the materials needed to create the things identified in the WBS. 4 is incorrect because the WBS dictionary defines what each work package in the WBS is and its associated time and cost estimate.

The WBS is the scope baseline; technically the WBS, the WBS dictionary, and the detailed project scope are the scope baseline. 1 is incorrect because the time and cost baselines do not reflect the scope. 3 is incorrect because the project charter does not capture all the deliverables the project will create. 4 is incorrect because the project scope is decomposed into the WBS. The WBS, in effect, reflects the entire project scope.

The project team creates the WBS. 1 is incorrect because the project manager doesn’t complete the WBS alone. 2 is incorrect because the project sponsor doesn’t complete the WBS. 4 is incorrect because the program manager doesn’t create the WBS for the individual projects within the program. The WBS creation is the responsibility of the project manager and the project team.

Progressive elaboration means developing in steps and continuing in increments, as in the WBS creation. 2 is incorrect because rolling wave planning allows for ebb and flow in planning. 3 is incorrect because this term is not valid 4 is incorrect because this term is not a valid choice.

When Holly uses a previous project’s WBS to create the current project’s WBS she is using a template. 1 is incorrect because she is not estimating at this point in the project. 2 is incorrect because while this may be a loose example of historical information, WBS template answers the question more accurately. 3 is incorrect because this is not an example of poor project management.

This approach is sometimes called rolling wave planning. 1 is incorrect because this is not an example of a WBS template. 3 is incorrect because this term is not valid. 4 is incorrect because this is not an example of scope creep.

Monte Carlo Simulation can be used to determine the likelihood of project success. 1 is incorrect because PERT is a time estimating formula. 2 is incorrect because GERT is a network diagramming technique. 4 is incorrect because this answer is not valid for this question.

Transference is when someone else owns the risk – usually for a fee. The risk doesn’t go away. 1 is incorrect because mitigation is any effort to reduce or eliminate the risk. 2 is incorrect because acceptance means just that – the risk has been accepted. 3 is incorrect because avoidance is changing the project management plan to avoid the risk altogether.