CAPM (Certified Associate in Project Management) Practice Exam

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What does a hierarchical organization chart display?

The project’s budget breakdown
Positions and relationships in a top-down format
The workflow of processes
The timeline of project milestones

The correct answer is: Positions and relationships in a top-down format

A hierarchical organization chart displays positions and relationships in a top-down format. This means that it shows the levels of authority and how they are interconnected within a company or project. Options A, C, and D are not correct because they do not accurately describe what is shown in a hierarchical organization chart. Option A is about budget breakdown, which is typically shown in a financial report. Option C is about workflow of processes, which can be displayed in a flowchart or diagram. Option D is about the timeline of project milestones, which can be shown in a Gantt chart. These options do not relate to the structure and hierarchy of an organization or project, which is the main purpose of a hierarchical organization chart.