CAMPUS Assesment Exam#27 - Answers PDF

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Which of the following is a tool and technique of the "Close Contract" proc ess?
A. Procurement audit
B. Proc urement Management plan
C. Contrac t Management plan
D. Contrac t Doc umentation
Closing - Proc urement Management
A) Procurement Audit is a structured review of the proc urement process and its objec tive is to identify
successes and failures. Procurement Audit and Record Management System are the two tools and techniques
of the "Contrac t Closure" proc ess
B) Proc urement Management Plan is an input to the Plan Contrac ting process and this isn’t a tool / tec hnique.
Choice B is incorrec t
C) Choice C is incorrect. Contract Management plan is an output of Select Sellers process
D) Choice D is incorrect as Contract Documentation is not a tool rather it is an output of Contract
Administration proc ess

Leading, communicating, and problem solving are examples of ________ management skills.
A. Project
B. General
C. Senior
D. HR
Executing - Human Resources Management
These are general skills that managers of any type will need to use in order to perform successfully for the
organization.

Who is responsible for organizing training of the new staff on project?
A. Human resources department
B. Project manager
C. Training department
D. Functional manager
The project manager is responsible for arranging any project specific training required to address the project
needs.

What is the difference between cost budgeting and c ost estimating?
A. Budgeting precedes estimating.
B. Estimates are more ac curate than budgets.
C. Budgeting is allocating project cost estimates to individual activities.
D. Budgets are more ac curate than estimates.
Planning - Cost Management
In cost estimating, estimates for each activity are prepared. In the next step, which is budgeting, all
estimates are combined into one budget.
Cost budgeting involves alloc ating the overall projec t cost estimates to individual activities or work packages
to establish a cost baseline for measuring projec t performance.

In the field of project management RAM is defined as:
A. Random ac cess memory
B. Risk assesment matrix
C. Responsible, ac countable, and manageable
D. Responsibility assignment matrix
Planning - Human Resources Management
Responsibility assignment matrix (RAM) is matrix format used to represent roles and responsibilities on a
project.

Your project team is asked to provide an extremely accurate cost estimate for a construction project. How should
he proc eed?
A. Take the cost of raw materials and labor for each activity in the WBS. Check previous projec t files and
consider any risks to delivery; then add 10% to ac count for the company profit.
B. Add up raw materials and labor costs for each activity in the WBS.
C. Use a rule of thumb, like cost per square foot.
D. Use the cost of raw materials from a similar project on a house with the same floor plan and make
adjustments for known differences.
The correc t answer is B, the most ac curate method is bottom-up estimating, which is what choice B
describes.
Choice C is describing parametric estimating and c hoice D is desc ribing analogous estimating. Both are quick
methods to estimate, but are not very ac curate.
Choice A is just garbage.

A contrac t is delivered on a fixed price basis. Which of the following should the project manager be concerned
with when administering the contrac t?
A. Justified pricing of change order requests
B. Verification of seller's costs
C. Supervision of seller's work
D. Skills of resources assigned by seller
Monitoring & Controlling - Procurement Management
A) A fixed price contrac t is for a defined scope of work and at a fixed cost. The seller carries the cost risks
while the buyer carries the scope risks. Therefore, the project team must verify justification of change order
pricing against sc ope changes
B) Choice B is incorrect. Seller's costs and resources assigned should not bother the buyer as such costs
associated with delivering the project are owned and managed by the seller, that would be a concern in c ost
reimbursable contrac t
C) Choice C is incorrect. The buyer needs to supervise and usually direct the seller's work in a T&M contrac t,
but not in a fixed price contrac t
D) Choice D is incorrect as contrac t defines only about the work to be performed and it is the vendor’s
responsibility to assign appropriate resources with skill

Each project phase is marked by completion of major:
A. Task oriented objectives
B. Deliverables
C. Phase exit
D. Product life cycles
Initiating - Framework
Project Phase is a collec tion of logically related project activities, usually culminating in the completion of a
major deliverable. Projec t phase is component of Projec t life cycle.

The team is working on c reating a project team directory. Which proc ess is the team most likely engaged into?
A. Resource planning
B. Organizational planning
C. Staff acquisition
D. Information distribution
A) Resource planning c oncludes type and quantity of resources at the lowest level of WBS. Choice A is wrong
B) Choice B is incorrect. Organizational planning involves setting up the project organization with roles and
responsibilities defined
C) A projec t team directory lists all the project team members and other stakeholders. This means that the
project has either completed or nearing c ompletion of staff ac quisition
D) Information distribution is the application of communication management plan to make needed information
available to various stakeholders of the projec t. Thus choice D is incorrect

A program is a:
A. Grouping of related tasks lasting one year or less
B. Group of related projects managed in a coordinated way
C. Project with a cost over $1 million
D. Project with a cost over $1 billion
A Answer A is not right: There is no time constraint for managing program and projects within them, however,
not at the cost of any loss to the program affec ting the objective
B A program is a group of related projects managed in a coordinated way to obtain benefits and c ontrol not
available from managing them individually
C Program is not designed based the cost under all circumstances and hence incorrect answer
D Program is not based on one projec t even if it expensive. This is incorrec t

Co-loc ation c an help with:
A. Bringing c ustomers together in project
B. Bringing all team together at one place
C. Shifting project from one loc ation to new loc ation
D. Shifting part team to other country to reduce cost
Co-location is organizational plac ement strategy where the project team members are physically located close
to one another in order to improve communication, working relationships and productivity.

Which of the following is included in the projec t charter?
A. Work Breakdown Structure (WBS)
B. Risks
C. Quality standards
D. High level resource requirements
Initiating - Integration Management
Choice D is the correct answer.
The project charter includes a high-level resource requirement on the project whereas WBS, risks, and quality
standards are not parts of the project charter.

If CV is negative and SV is positive, this indicates:
A. The project is under budget and ahead of sc hedule
B. The project is over budget and ahead of schedule
C. The project is under budget and behind sc hedule
D. Crashing should be recommended
Monitoring & Controlling - Cost Management
A negative cost variance means the project is over budget; a positive sc hedule variance means the project is
ahead of schedule. Thus answer choice B is the correc t answer.
Crashing should not be rec ommended, bec ause crashing will increase costs in order to shorten the sc hedule,
which in this case is not what is needed.

You are on a time and materials contrac t. You have finished your work product an hour earlier than expec ted and
want to go home. However, you were expec ting a full eight hours of billable time to make your personal income
goals. What should you do?
A. Bill eight hours. Just bec ause you were especially efficient does not mean you shouldn't get a full day's
pay.
B. Stay an extra hour and surf the Web or chat with other co-workers to make up the time.
C. Find an additional one-hour task that you c an do and legitimately bill the client, even though they did not
ask for it.
D. Bill the seven hours you worked and go home.
Professional & Social Responsibility - Framework
Although this can happen, meeting your financial goals should be considered in your rate and c ontrac t type
negotiations. Answers A and B are incorrect because they are not ac curately reporting the time worked.
Answer C is incorrect bec ause you were not contracted to provide additional work you should not do it, nor
should you bill for it. Answers A, B, and C are violations of Member Standards of Conduct.

Your project team is working with a vendor to correct some serious “bugs” found during UAT (user ac ceptance
testing). The dec ision is made to work through lunch and order pizza. When the food is delivered, the vendor says
the bill has been paid. What do you do?
A. You accept and thank the vendor for your lunch.
B. You accept and tell him you will pay for lunch for everyone tomorrow.
C. You keep working and pretend you did not hear what the vendor said.
D. You decline and pay for your own meal.
You have a responsibility to refrain from ac cepting inappropriate forms of compensation for personal gain.
Answers A and C are incorrect for this reason. Answer B is a poor choice because the appearance of
impropriety is present.

You are producing a batch of 100 computer chips for your project. You manager has told you that high quality is
very important. If the ac ceptance sampling defect attribute for the production lot is 10 percent, then you know
that
A. Ten computer chips must be test
B. Ten percent of the computer chips must be test
C. All of the chips must be tested and they must have 10 percent or fewer defects
D. A sampling of the lot must have 10 percent or fewer defects
Planning - Quality Management
The correc t answer is D. Sampling is a statistical technique where a small number of units are tested and the
results are assumed to be representative of the entire batch. Answer choices A and B are wrong bec ause the
10 percent is not the number that should be tested, but rather the maximum percent of allowable defects in
order to pass the quality ac ceptance test. Answer choice C is wrong because you would not test all of the
chips.

The BCR for a project is evaluated as 1.8. What does this imply?
A. Profits from the project is 1.8 times the cost.
B. Cost of the project is 1.8 times the profit
C. Revenue from the project is 1.8 times the cost
D. Cost of the project is 1.8 times the paybac k on the project
BCR is benefit cost ratio and it measures the benefits (revenue) against cost of implementing the project.

When developing the project planning doc uments, who c reates the sc ope baseline?
A. Project Sponsor
B. Project Team
C. Project Manger
D. Top Management
Planning - Sc ope Management
The project team creates the sc ope baseline, which includes the Sc ope statement, WBS and WBS Dictionary.
The sc ope baseline must be approved and signed off by the project manager, the project sponsor,
management, and key stakeholders.

To obtain performance information, during exec ution all of the following are required except
A. Analysis of cost and schedule variances
B. Reviewing work planned
C. Measuring work progress
D. Establishing the baseline
The baseline is established during project planning, not execution.

Monte Carlo simulation c ould be used for analysis of projec t performance. Which of the following could be
established using Monte Carlo simulation?
A. Probability of any task being on the critical path
B. Optimum duration of a task
C. Early start of a task
D. Late finish of a task
Planning - Time Management
The correc t answer is A. Monte Carlo tec hnique does not calculate durations of task, nor early start or finish
dates. Given the network and the duration estimates, the technique can facilitate calculation of the
probability of these estimates being c orrect.
Monte Carlo simulation is a statistical technique and returns the probability of the event happening, such as a
task being on the critical path.
Choice C and D would be calculated as a result of using the critical path method.

You are a project manager working on contrac t. The organization that’s contracted with your company is not
happy with the progress of the project to date. They claim that an important deliverable was overlooked and that
you should halt the project and reassess how to meet this deliverable. You know that the customer has approved
all phases of the project to date. Which of the following statements is true?
A. You and your company may have to use problem-solving techniques such as arbitration and mediation to
reach an agreement.
B. You and your company may have to use communication tec hniques such as arbitration and mediation to
reach an agreement.
C. You and your company may have to use negotiation techniques such as arbitration and mediation
to reach an agreement.
D. You and your company may have to use influencing techniques such as arbitration and mediation to reac h
an agreement.
Negotiation is working with others to come to an agreement. Arbitration and mediation are two forms of
negotiation.

Which of the following best desc ribes control charts:
A. a graphic display of process data over time and against estabilished control limits
B. used to detect the problem
C. used to reject the problem
D. used to determine the ac ceptability of the problem
Monitoring & Controlling - Quality Management
Control charts are a graphical display of process data over time and against established c ontrol limits, and
that has a centerline that assists in detecting a trend of plotted values towards either control limit. Control
charts may show defec ts, but inspection detects them.

Which of the following is a tool and technique of the Close Procurements proc ess?
A. Procurement audits
B. Proc urement management plan
C. Proc urement statement of work
D. Proc urement documentation
Proc urement audits, negotiated settlements and record management system are the three tools and
techniques of the Close Procurements proc ess. Procurement statement of work is an output of the Plan
Proc urement proc ess. Proc urement management plan and procurement documentation are inputs to the Close
Proc urements proc ess, not tools and tec hniques.

The team is in the proc ess of performing quality activities and quality audits to determine which processes should
be utilized to meet the project requirements. Which proc ess is the team performing?
A. Plan Quality
B. Perform Qualtiy Control
C. Perform Quality Assurance
D. Verify Scope
Executing - Quality Management
The Plan Quality proc ess is concerned with targeting quality standards that are relevant to the project and
devising a plan to meet those standards. Perform Quality Control is spec ifically concerned with monitoring work
results to determine compliance with established standards. The Verify Scope proc ess is used to formally
ac cept completed deliverables. The Perform Quality Assurance proc ess desc ribes what is being asked in the
question.

You are finalizing the monthly project status report due now to your manager when you disc over that several
project team members are not reporting ac tual hours spent on project tasks. Consequently, this results in skewed
project management plan statistics. What is the MOST appropriate action to be taken?
A. Disc uss the impacts of these ac tions with team member(s)
B. Report team member ac tions to functional manager
C. Continue reporting information as presented to you
D. Provide accurate and truthful representations in all project reports
Provide ac curate and truthful representations in all project reports. Answer A, B and C are not correct.
Which of the following tools help in determining the probability of a task being on the critical path?
A. Assumption Testing
B. Precedence Diagramming Method
C. Delphi Technique
D. Monte Carlo Simulation
Monitoring & Controlling - Time Management
Choice A is wrong bec ause assumption testing deals with establishing the stability of assumptions, and
consequences on the project objec tives against an assumption turning out false.
Choice B is incorrec t bec ause precedence diagramming method is a networking tec hnique for activity
sequencing with dependencies.
Choice C is wrong bec ause the delphi technique is a method used to gather information (e.g. blind
requirements gathering).
Choice D is correct. Monte Carlo Simulation helps in determining the probability of eac h task being on the
critical path by running a computer model which randomly generates results to predict the most likely
outcomes.

The proc ess of assessing the probability and impact of identified risks to the project objectives, assigning a
numeric risk sc ore to eac h risk, establishing risk reserves, and c reating a list of prioritized risks describes which of
the following processes?
A. Perform Quantitative Risk Analysis
B. Identify Risk
C. Perform Qualitative Risk Analysis
D. Plan Risk Response
Planning - Risk Management
A) Quantitative risk analysis is numerically analyzing the effect on overall projec t objec tives of identified risks
B) Choice B is incorrect. Risk identification is determining which risks might affect the project and documenting
their charac teristics. It does not assess the probability of risk at this stage.
C) Choice C is incorrect. Qualitative Risk Analysis is subjective. The questions states a numeric risk sc ore,
which means it is not qualitative.
D) Choice D is incorrect. Risk Response Plan is developing procedures and techniques to enhance opportunities
and reduce threats to project.

What are the inputs to the Develop Project Charter proc ess?
A. Contrac t, project SOW, and business case
B. Project SOW, enterprise environmental fac tors, and organizational process assets
C. Project SOW, business case, and organizational process assets
D. Contract, project SOW, business case, enterprise environmental factors, and organizational
process assets
Develop Project Charter has five inputs, and they are project SOW, business case, contract, enterprise
environmental fac tors, and organizational proc ess assets.

Your project team has completed identifying risks, ranking them, and planning responses to critical risks and
secondary risks. What is the next step to be performed by the project manager?
A. Completing the risk management plan
B. Create responses to residual risks
C. Create Risk Breakdown structure
D. Determining contingency reserves
Choice A is incorrect, bec asue the risk management plan has already been created at this point.
Choice B is incorrec t, bec ause you do not create responses for residual risks.
Choice C is incorrect, bec ause the risk breakdown structure is defined previously in the risk management plan.
The correc t answer is D, you would next determine contingency reserves.
Which one of the following best desc ribes rolling wave planning?
A. Scope creep
B. Using a portion of the ac tivity list from a previous projec t
C. Breaking down the project scope
D. Planning the near-term portions of the project in detail and the future project portions at a higher
(summary) level
Rolling wave planning is a form of progressive elaboration where you plan the immediate (near-term) portions
of the projec t work in greater detail and the future work at a higher (summary) level of detail.

A war room is an example of:
A. Contrac t negotiation tac tics
B. Co-location
C. This term has no meaning in the project management field
D. Human resource planning tools
Co-location is the prac tice of loc ating all team members in a central loc ation. A war room is a central room
where all team members can gather to be colloc ated, which helps improve communications and team
interac tion. This is a tool of Develop Project Team used in human resource management.

Senior management wants to know the status of your project. Which of the following do you show them?
A. Milestone chart
B. Bar charts
C. Network diagram
D. Work breakdown structure
Monitoring & Controlling - Communications Management
The milestone chart is best used for executive reporting. It shows the target dates and status of the high
level milestones.

Changes to the project are common in certain types of projec ts, espec ially when they involve new technology.
Project modifications should be reflected in the
A. Project management plan
B. Quality control document
C. Lessons learned document
D. Quality control audit
Monitoring & Controlling - Integration Management
The project management plan should c ontinually be updated to reflect modifications to the project. Answers
B, C, and D are incorrec t bec ause they are not doc uments that would be used to reflect project modifications.

Each phase of the project life cycle is marked by the completion of one or more
A. Proc esses
B. Components
C. Events
D. Deliverables
Each phase of the project life cycle is marked by the completion of one or more deliverables

Which of the following provides the baseline for controlling changes?
A. Performance reports
B. Project plan
C. Change request
D. Project sc ope statement
A Performance reports provide information on project performance. Thus, choice A is incorrect.
B Project plan provides the baseline against which changes are required to be controlled.
C Change requests, once approved, initiate the changes. Thus, choice C is incorrec t.
D Project sc ope statement is a part of project plan and is one of the elements of the project baseline. Thus,
choice D is incorrec t.

You have completed your project delivery and c urrently are in the project closing process. You have started
preparing the lessons learned document. What is the primary objective of the lessons learned document?
A. Quality audit
B. Proc ess analysis
C. Continuous improvement
D. Risk audit
Closing - Integration Management
Lessons learned are useful in proc ess improvements from an organizational and tec hnical perspective. The
information c an be used in the current project as well as in future projects.

Which problem-solving technique is the best for most project management situations?
A. Confronting
B. Compromising
C. Forcing
D. Avoidance
Choice A is correct. Confronting is the best problem-solving tec hnique since it meets the problem direc tly.
Choice B is incorrec t. Compromising requires both sides on an argument to give up something.
Choice C is incorrect. Forcing is where one party forces thier view onto the other person.
Choice D is incorrect. Avoidance ignores the problem and does not solve it.

A project manager is evaluating what should be used to establish the management of the project team. All of the
following should be considered for managing the project team except?
A. Project staff assignment
B. Team performance information
C. Performs reports
D. Ground rules
Ground rules are established in developing the projec t team. The other three proc esses are inputs to managing
the projec t team.

Measuring quality of a product against a standard is called:
A. Benchmarking
B. Root cause analysis
C. Inspec tion
D. Pareto Analysis
Benchmarks give a guide for the project manager. Benchmarking involves comparing ac tual or planned project
prac tices to those of comparable projects to identify best prac tices, generate ideas for improvement and
provide a basis for measuring performance. They come from previous projec ts and c an be used as a basis to
construct plans for a new project.
Which of these is an output from the Staff Acquisition process?
A. Staffing Management Plan
B. Project staff assignments
C. RAM
D. Organizational chart
Project staff assignments is one of the outputs to the Aquire Projec t Team proc ess.

What will the projec t manager create as a result of developing the project team?
A. Team-building ac tivities
B. Performance improvements
C. The team bec oming friends after the projec t is complete
D. Smoothing
Developing the projec t team can happen throughout the project. Generally speaking, the projec t manager
takes a group of strangers (or at least people who are possibly unfamiliar with one another) and turn them into
a cohesive team, thus resulting in performance improvement.

The two closing process are :
A. Close proc urement and Verify sc ope
B. Close Procurement and Close Project
C. Project closure and T eam release
D. Release team and lessons learned
Proc urement close and Project Closer process are two closer processes; before you c lose your project make
sure that all proc urements are closed.

Your project had a difficult time receiving formal approval to the project management plan because these were so
many stakeholders whose requirements were not approved for inclusion in the project. These stakeholders argued
and held up the project while they held meeting after meeting about their requirements. The project was finally
approved and work has begun seven month ago. All of the following would be good preventive actions to
implement EXCEPT?
A. Keep a file on the requirements that was not included in the project.
B. Make sure the change control proc ess is not used as a vehicles to add back the requirements in to the
project
C. Maintain an issue log
D. Hold meetings with the stakeholders to go over work that will not be added to the project
Why would choice D be the ac tion not to take? Isn’t it similar to choice A? Yes & no. This issue should be
over, but since there were so many meetings and arguments about the requirements being removed, it is
unlikely that the issue will be dropped by the stakeholders. However, since it has not come up again, and the
project was started seven months ago, spending time in a meeting is excessive. The other choices are easier
and have less impact on the project and are therefore that could be done.

Which of the following is NOT found in a project charter?
A. Project purpose or justification
B. High level project description
C. Detailed business objectives
D. Summary budget
Detailed business objec tives are not in the Projec t Charter. These would be found in the requirements
documentation. The rest of the answer choices are found in the Project Charter.

You are responsible for oversight and c oordination of several interrelated projects, eac h of which has its own
project manager. Your role is best defined as
A. Project Manager
B. Portfolio Manager
C. Program Manager
D. Functional Manager
The best answer is choice C. A program is a group of projects managed in a coordinated way to obtain
benefits not available from managing eac h project individually.

Customers impose the most formal EVM data requirements on
A. Target fee contrac ts
B. Cost reimbursable contract
C. Fixed price/unit price contrac ts
D. Fixed price/lump sum contrac ts
Planning - Procurement Management
In cost reimbursable contrac ts the customer has to pay for any allowable costs. Therefore the EVM data
requirements are usually very formal.

Which of the following statements about dec omposition is the least true?
A. Decomposition involves structuring and organizing the WBS so that deliverables are always listed
at level one.
B. Dec omposition requires a degree of expert judgment and also requires close analysis of the project scope
statement.
C. Dec omposition is a tool and technique used to create a WBS.
D. Dec omposition subdivides the major deliverables into smaller components until the work package level is
reached.
Decomposition subdivides the major deliverables into smaller components. It is a tool and technique of the
Create WBS proc ess. Level two components may be deliverables, phases, subprojects, or some combination.

Your project’s primary constraint is time. One of your key stakeholders,who is a major contributor on this project
is demanding the schedule be lengthened. He held his department picnic last weekend, and three of her staff
members came down with H1N1 virus. The team members he’s assigned to your project (who didn’t contrac t the
virus) must now do double duty and help support the department functions until their co-workers get well. Your
customer will not agree to a sc hedule change. Which of the following statements is false given the fac ts in this
question?
A. The project manager has the weakest amount of power and authority in this type of organization.
B. The project manager should try to resolve the problem such that it doesn’t affect the project sc hedule.
C. This company’s organizational structure is functional, since the department manager is responsible for
assigning resources to the project.
D. The project manager should work with the stakeholder to resolve the problem and negotiate with
the customer to change the schedule.
When problems arise on a project, they should be resolved in favor of the customer whenever possible. This
organization is a functional organization, as the department manager is responsible for assigning resources,
which means the project manager has little authority or power.

The inputs of the Report Performance process include all of the following except for which one?
B. Work performance information
C. Budget forecasts
D. Performance reports
Project management plan, work performance information, work performance measurements, budget forecasts,
and organizational process assets are the input to the Report Performance proc ess. Performance reports are
output of the Report Performance proc ess.

Your project has not been going very well and the stakeholders funding the project have been c omplaining to you
about the performance of the project team. This is best desc ribed as:
A. 360-degree reviews
B. External feedback
C. Performance reports
D. Team disagreement
The best answer is B. It is very important for you to get external feedback about the performance of your
project team from external parties such as stakeholders.

Inputs to the Close Procurements proc ess include
A. Contrac ts
B. Contrac t updates
C. Proc urement audits
D. Procurement management plan
Proc urement management plan and procurement documentation are the two inputs to the Close Proc urements
proc ess.

Which of the following is the project manager not responsible for?
A. Predicting materials required
B. Predicting equipment required
C. Predicting work required
D. Predicting project performance
Executing - Integration Management
The project manager is responsible for predicting materials, equipment, and work required for a project. Project
performance should be a pre-defined requirement determined by the stakeholders and should fall within a
specific set of parameters.

Which of the following is NOT a valid reason for a non-competitive bid?
A. There is only one seller
B. The project has a tight schedule
C. Only one seller exists in the customer's approved list of vendors
D. The performing organization has existing mechanisms for maintaining reasonable pricing
Executing - Proc urement Management
Non-competitive bid refers to inviting only one seller to bid on the sc ope of work for a proc urement. A tight
timeline is not a valid reason to not have competitive bids. All other answer choices are valid reasons to not
have competing bids.

While you have initiated the project. A hurricane caused power outages just when the upgrade was near
completion of first phase. When the power was restored, all of the project reports and historical data were lost
with no way of retrieving them. What should have been done to mitigate this risk?
A. Purchase insurance
B. Plan for a reserve fund
C. Monitor the weather and have a contingency plan
D. Schedule the installation outside of the hurricane season
Monitoring & Controlling - Risk Management
A) Answer A is incorrec t. The risk is the loss of data due to a power outage. Choice A is not related to
“mitigating” the problem. It transfers the risk
B) Answer B is incorrect. A reserve fund (choice B) is acceptance and would help address the cost fac tors
after the power failure, but would not reduce the probability or impact of it
C) Answer C is correc t. The better choice of the mitigation option is to monitor the weather and know when
to implement the contingency plan
D) Answer D is incorrec t. Avoiding the hurricane by sc heduling the installation at a different time mitigates the
power outage risk but could have a large negative impact on the project sc hedule and so is not best choice

You have an excellent idea for a new project that can increase productivity by 20 percent in your organization.
However, management dec lines to approve the proposed project because resources are already devoted to other
related projects. You have just experienced what?
A. Management by exception
B. Management Reserve
C. Program Management
D. Parametric modeling
Choice A is incorrect bec ause this is a management theory to manage people and problems
Choice B is incorrec t as it is an amount of time and money reserved for unknown risk in your projec t
Program Management is used by management to make decision regarding which projects or resources should
be prioritized to ac hieve the best overall outcome for the program.
Choice D is incorrect as it is a model to estimate costs, such as cost per ton, or cost per hour

Which of the following statements is not true about WBS?
A. It is created by the project team.
B. It should not change.
C. It ensures that all work on the project is covered.
D. It organizes and defines the total sc ope of work.
A Choice A is incorrect bec ause WBS is created by the project team. It ensures that all work on the project is
included
B Choice B is correct bec ause work breakdown structure can be changed based on the requirements
C Choice C is incorrect bec ause WBS captures all the work on the projec t is covered
D Choice D is incorrect bec ause WBS organizes and defines the total scope of work

A PMP has been assigned to manage a project in China. The disorientation the PMP will likely experience as he
gets ac climated to the country is known as what?
A. The Sapir-Whorf hypothesis
B. Time dimension
C. Ethnocentrism
D. Culture shock
Culture shock is the typical disorientation a person feels when visiting a foreign country. A is incorrect; the
Sapir-Whorf hypothesis is a theory that believes an individual can understand a culture by understanding its
language. B is incorrect; time dimension is the loc al culture’s general prac tice for respec ting time and
punctuality. C is incorrec t; ethnocentrism is a person’s belief that his or her own culture is the best and that
all other cultures should be measured against it.

Ronny is currently working on a major technology project involving Nano-technology and has been invited by a
think-tank to speak in their convention. He will be provided with expenses and an honorarium. Ronny eagerly
ac cepts. You are a PMP working on his project. How would you advise him?
A. Indicate that you think ac cepting an honorarium is a conflict of interest, and that he should not ac cept
the request.
B. Congratulate him. It is an honor to be asked to speak at a convention.
C. Tell him he may speak at the convention as long as he takes no fee or expense reimbursement.
D. Gather the information you need to report him as a violator of the PMI Code of Ethics.
Ronny has no c onflict of interest as long as he is not speaking for a specific supplier. Honorariums and
expenses are a common incentive for speakers. Answer A is incorrect bec ause there is no conflict of interest.
Answer C is also incorrec t bec ause ac cepting an honorarium and expenses is neither illegal nor unethical.
Answer D is incorrect for the same reasons.

You are performing structured independant reviews to ensure compliance with the project's quality policies and
proc edures. Which of the following is true about the proc ess this describes?
A. It is the proc ess of monitoring and recording results of exec uting the quality activities to assess
performance.
B. It identifies causes of poor proc ess or product quality and recommends ac tion to eliminate them.
C. It is performed throughout the project.
D. It ensures appropriate quality standards and operational definitions are used.
This question is describing quality audits, which is a tool and technique of the Perform Quality Assurance
proc ess. Answer choices A, B, and C are all wrong because they all describe features of the Perform Quality
Control Proc ess. Choice D describes the Quality Assurance process.

When negotiating with functional managers for resources, you should consider personal charac teristics,
competency levels, and availability of the potential team members. Which of the following proc esses describes
negotiations ac curately?
A. A tool and technique of Acquire project Team
B. A tool and technique of Develop Human Resource Plan
C. A tool and technique of Develop Project Team
D. A tool and technique of Management Project Team
Negotiations are a tool and technique of the Acquire Project Team proc ess.

As you make approved c hanges to the original sc ope, you should:
A. Amend the SOW
B. Do a completely new WBS
C. Save the old versions
D. Issue change requests
The correc t answer is C. You should always save older versions of project document and make sure that eac h
version undergoes version c ontrol. The configuration management plan would define how you would handle
version control on the project. Choice B is wrong, you do not have to do a completely new WBS unless the
approved change ac tually changes the entire projec t. Choice D is also wrong, since the change request was
already approved, you wouldn't need to issue a change request either.

Which of the following is the last ac tivity while closing a project?
A. Creating lessons learned
B. Releasing resources assigned to the project
C. Creating archives
D. Updating skills inventory
Choice A is incorrect bec ause creating lessons learned is part of the project ac tivity, though it is carried
during c losure, this is one of the ac tivities which is performed early during closure stage.
Choice B is correc t. The projec t team creates the lessons learned, project archives and the project manager
updates HR rec ords for the new skills ac quired by individuals while working on the project. Releasing the
resources for new assignments would be the last step in closure.
Choice C is incorrect. Creating archives is carried out by the project team members and this is not the last
ac tivity bec ause releasing resources would be the last activity of closure of the project.
Choice D is incorrect. Resources are released only after updating the skills inventory with the concerned
department.

Jon is the project manager of an office relocation project and is fed up with the several conflicts on his projec t.
He tells the team: “Shut-up! I'm the boss. We are doing things my way from now on. If you don't like it, there's
the door!" Which type of conflict resolution tec hnique is he using?
A. Forcing
B. Problem-solving
C. Withdrawing
D. Compromising
Forcing is a win-lose situation in which one person forces thier decision on another.

Among various ac tivities of the Direct and Manage Project Exec ution proc ess, which of the following is the most
difficult?
A. Coordinating and integrating all the project team
B. Working with difficult people
C. Project risk mitigation
D. Information distribution
The most difficult ac tivity in the Direct and Manage Project Execution proc ess is coordinating and integrating
all the project elements bec ause such ac tivities would have lots of dependencies.

Which of the following is not an input to the Perform Quality Assurance proc ess?
B. Quality metrics
C. Deliverables
D. Quality control measurements
Deliverables are not an input to the Perform Quality Assurance proc ess, they are an input to the Perform
Quality Control proc ess. The inputs to the Perform Quality Assurance proc ess are project management plan,
quality metrics, work performance information, and quality control measurements.

Perform Quality assurance is:
A. Definition of organizational quality prac tices
B. Ensuring of six sigma compliance
C. Application of Pareto charts to project sample points
D. Process of auditing the quality requirements and the results and ensure appropriate quality
standards
Perform Quality assurance is proc ess of auditing the quality requirements and the results from quality control
measurements to ensure appropriate quality standards.

Abdul Suleiman is working in a Middle Eastern country for an U.S company and knows that bribes are a legitimate
custom in doing business. He also knows that U.S. law prohibits bribery. He is attempting to win a contrac t to
construct a sewage treatment fac ility and is expected to pay a $15,000 "finder's fee" to the local utility official.
What should Iman do?
A. Provide the fee. PMI approves of obeying loc al customs.
B. Provide the finder's fee. Because it is a fee, there is no issue.
C. Do not provide the fee and risk losing the business. It is illegal in the U.S., and Suleiman works for
a U.S. firm.
D. Provide the fee outside of his business capac ity.
Answer A is incorrect bec ause, although PMI approves of obeying loc al customs, it does not approve of
breaking the law. Because Suleiman works for a U.S. company, he is subject to U.S. laws. Answers B and D
are incorrec t bec ause they are trying to use other ways to justify the bribe.

You are working on a project under contrac t and are currently doing the Close Procurements process, which of
the following should you document?
A. Close proc urements proc edure
B. Verify sc ope
C. Formal acceptance
D. Administrative closure proc edures
The correc t answer is C, during the Close Procurements process you should document formal ac ceptance of
the work done under contrac t. Choice B, verify sc ope, is done during the Control Scope process. Choices A
and D, are things you would do, but are not things you would document.

What is present value?
A. Value of assets that a company owns
B. Today's value of future cash flows
C. Future value of money on hand today
D. Current value of today's assets adjusted for inflation
Present Value is nothing but today's value of future cash flows. Generally calculated using formula PV = FV /
[1+i] ^n, where FV = Future value, i = rate of interest, and n = number of years.

George is a well-paid global operations executive who also enjoys consulting and training. He is so popular that
recently he received two offers on the same day to speak at conferences as a paid presenter. At one conference,
he was offered $5,000 for his presentation on a topic that he is not fond of. He was offered $2,000 at another
conference to speak on resource alloc ation, a topic that he enjoys. Because money is no object to George, he
dec ides to speak about resource allocation for $2,000 and pass on the other conference. George must also use a
day of vac ation time with a value of $2,000 to take time off work to attend the conference. What is George's
opportunity cost to speak at the conference?
A. $1,000
B. $2,000
C. $5,000
D. $4,000
Answer C is correct bec ause the opportunity cost is the lost money that he could have been paid for the
other event if he was the speaker. Therefore, Answers A, B, and D are incorrect.

A contrac t is legally binding in all the following cases EXCEPT:
A. The seller is not able to produce goods as part of the contract.
B. The signatory for the contrac t leaves the company.
C. The buyer is not able to satisfy financial obligations.
D. The contract violates the law of the land.
A contrac t is a legal relationship subject to remedy in the courts. Contracts involving illegal activity cannot be
enforced in c ourts.

When is it appropriate to ac cept a project risk?
A. It is never appropriate to ac cept a project risk.
B. All risks must be mitigated or transferred.
C. It is appropriate to ac cept a risk if the project team has never completed this type of project work before.
D. Only if the risk is in balance with the reward by accepting the project risk.
Risks that are in balance with the reward are appropriate for acceptance.
A, B, and C are all incorrect bec ause these solutions are all false responses to risk management.

While closing out projec t contrac ts, which of the following doc uments do you not need to review?
A. The contrac t itself
B. Procurement audit
C. Invoice records
D. Payment rec ords
Proc urement audits are not documents that need to be reviewed while closing out project contrac ts.
However, you should review the contrac t itself, and invoice and payment rec ords

Inventory costs are going up as a result of not following the proper quality procedures, thus causing the project
manager to worry about the cost of non-conformance. What is the BEST advice you c an give the project
manager?
A. Increase sc rap
B. Increase rework
C. Perform a quality audit
D. Look for benchmarks
Quality audits are structured independent reviews to determine whether project activities comply with
operational and projec t policies, proc esses, and procedures.
A quality audit to correc t any deficiencies in the quality process should result in a reduced c ost of quality and
an increase in sponsor or customer ac ceptance of the project’s product. Quality audits may be sc heduled or
random and may be conducted by internal or external auditors.

Activity A is worth $200, is 100% complete, should have been done on day 1, and actually cost $200. Activity B is
worth $75, is 90% complete, should have been done on day 2, and actually cost $120 so far. Activity C is worth
$200, is 75% complete and should have been done on day 3, and has cost $175 so far. The total budget is $1000.
What is the planned value as of day 2?
A. $275.00
B. -$417.50
C. $495.00
D. -$275.00
The planned value as of day two would be $275.00. This is generated by adding the planned value of
Activities A and B, which should have been done as of day 2 on the project.

Proc urement audits are a structured review of which proc esses?
A. Plan procurements, conduct procurements, administer procurements
B. Plan procurements, conduct procurements, administer proc urements, close procurements
C. Conduct procurements, administer proc urements
D. Plan procurements
Proc urement audits are done during c lose proc urements, but they do not include steps undertaken in c lose
proc urements. Thus, a procurement audit should include a review of the plan procurements, conduct
proc urements, and administer procurements processes.

The Develop Project Team process includes the development of team members managerial and technical skills.
This is important for all of the following reasons except
A. Individual development is the foundation of team building, so without it, teams may not function as well as
they could.
B. Any training needed for individual development should be completed prior to the assignment of
the individuals to the team.
C. Individual development enhances the ability of the team to function as a team.
D. Team development is critical in ac hieving the goals and objectives of the project. Therefore, individual
development is critical to ac hieving the goals and objectives of the project.
Training does not necessarily need to be completed prior to assigning team members. Training can oc cur
during the course of the project.

What are the top 3 c auses of conflict on a project team?
A. Schedule, Priorities & Resources
B. Schedule, Cost & Resources
C. Priorities, Cost & Resources
D. Resources, Cost and Personality
According to the PMBOK, the major causes of conflict in order of intensity are: Schedule, Project Priorities,
Resources, Technical Opinion, Administrative Proc ess, Cost, and Personality.

You have just passed the PMP exam. Your friend is still preparing for the exams and plans on taking the exam next
month. You purchased a copy of this book to study from, while your friend purchased a copy of another author’s
book. Since you’re finished studying, you want to loan your book with the CD to your friend so that he can use it
for his preparation. Which of the following statements is true? Choose the best answer.
A. Since you are a PMP, you’re required to adhere to the PMP Code of Professional Conduct, so sharing the
book and CD is not ac ceptable.
B. Since you are a PMP, you should not share the book and CD with your friend, because it may pose a
conflict of interest for your friend.
C. The book and CD are considered intellectual property and should not be copied. However, loaning
your copy to your friend to use, as long as she doesn’t copy it, is acceptable.
D. Since you are a PMP, you’re required to adhere to the PMP Code of Professional Conduct and should not
share the book and CD with your friend because of the appearance of impropriety.
Loaning the book and CD to your friend is an acceptable solution as long as your friend does not make copies
of the CD or printed text.

Which of the following is the BEST method to make reward systems more effective?
A. Pay a large salary increase to the best workers
B. Give the team a choice of rewards
C. Make the link between performance and reward clear
D. Present notification of rewards within the company
The best method to make a reward system more effective is to clearly link performance to the reward in the
Develop Human resource plan proc ess.

During what part of the procurement process does contrac t negotiation occur?
A. Administer Proc urements
B. Close Proc urement
C. Plan Procurement
D. Conduct Procurement
Negotiation occurs during Conduct Procurements, this is the process of obtaining seller responses, selecting a
seller, and awarding a contrac t.

Dave is a project manager working in the food packaging industry. Dave is performing quality control and wants to
rank-order the frequency of conveyor delay and c ontainer defects. Which of the following tools and techniques
should he utilize?
A. Control Chart
B. Gantt Chart
C. Pareto Chart
D. Cause-and-effec t diagram
Pareto charts rank-order the most important factors by their frequency over time typically displayed as a
histogram. Control charts measure results of processes over time, however does not rank-order the data.
Cause-and-effect diagrams are a type of flowchart that shows how the causes and effec ts of problems relate.
A Gantt chart displays sc hedule ac tivities.

You are a project manager for Sc arem-Up-Stiff production c ompany. Your company develops and produces horror
movies for the big screen. Your latest project has been cancelled due to budget cuts for that genre of film. Which
of the following statements are true?
A. The project ended due to extinction because the funds were cut off.
B. The project ended due to integration because the funds were cutt off.
C. The project ended due to starvation because the resources were allocated to another film divison.
D. The project ended due to starvation because the funding was cut off.
Starvation occurs bec ause the project no longer receives the resources needed to continue. Resources would
include money (funding) such as presented in this question.

Your project team works from multiple countries, and your project work is done from several different locations.
You use tools like web conferencing and e-mail to distribute information to the team. Which of the following is
true?
A. This question desc ribes the staffing management plan from the Acquire Project Team process and
communication skills from the Distribute Information process.
B. This question desc ribes resource availability from the Develop Project Team process and information
distribution methods from the Distribute Information proc ess.
C. This question describes virtual teams from the Acquire Project Team process and information
distribution methods from the Distribute Information process.
D. This question desc ribes project staff assignments from the Develop Project Team proc ess and
communication skills from the Distribute Information process.
Executing - Communications Management
Virtual teams are teams that don’t nec essarily work in the same loc ation or have the same hours but all share
the goals of the project and have a role on the project. The web c onferencing and e-mail references describe
the information distribution methods tool and tec hnique of the Distribute Information proc ess.

Which of the following ac tivities oc curs during Plan Procurement?
A. Make or buy analysis
B. Risk register
C. Risk-related c ontrac tual agreements
D. Cost baseline
A) Answer A is correc t, make or buy analysis ac tivities oc curs during plan proc urement
B) Answer B is incorrect. Risk register is an input used in the proc ess of plan purchase ac quisition. This will be
available under project management plan
C) Answer C is incorrec t bec ause risk related c ontrac tual agreements are already identified in an earlier stage,
which is used in the process of plan proc urement and hence this does not take plac e at this phase
D) Answer D is incorrec t: Cost baseline does not oc cur during plan proc urement stage. Cost baseline is used
as a contribution to this process

Your project needs contrac t management software but the budget on the projec t doesn't include the cost of this
software. You meet a friend from your old job and he suggests that he can make you a copy of this software that
you need since you don’t have the money. He says it’s one version old, so it’s not that big of a deal. What is the
best way to ac quire the software?
A. Take his copy and use it.
B. Order a copy from the company or an authorized reseller
C. Download a copy from a file sharing system
D. Use a demo copy
Software created by someone else should be purchased and the license terms and c onditions followed. That
often includes defining how copies, demo copies, and file sharing systems are to be used with the software.

Which statement about projec t deliverables is correct?
A. They are determined after the work is completely defined.
B. They are described during project planning and improved over time.
C. They are defined at project onset with the input of project stakeholders.
D. They are determined by the projec t sponsor.
Planning - Integration Management
Project Deliverables are unique and verifiable products, results, or capabilities to perform a service that must
be produced to complete a process, phase or project.

You have been c hosen as the project manager for a new satelite program in development by Ground Control Inc.
You have just started planning for the project. Which of the following should you NOT take into consideration
during planning?
A. The rumor about the company going bankrupt
B. Past project information
C. Company resources
D. Company policies
Executing - Framework
Past projec t information, company resources, and c ompany policies should be taken into consideration. Rumors
about the company should not be considered. As a project manager you should make decisions based on
fac ts, not rumors.

What are the performance measurements for the Control Sc hedule process?
A. SV= (EV – PV) and SPI =(EV / PV)
B. SV= (EV – AC) and SPI= (EV / AC)
C. SV= (EV – BAC) and SPI = (EV / AC)
D. SV= (PV – EV) and SPI= (PV/ EV)
Schedule variance is (EV – PV) and schedule performance index is (EV/ PV).
The Projec t Manager is involved in ac quiring the projec t team on a highway expansion projec t. The Projec t
Manager is presently discussing salary, working hours, travel, and benefits. What is the key tool the Project
Manager is utilizing?
A. Staffing management plan
B. Organizational chart
C. Project team directory
D. Negotiations
Negotiation is key in ac quiring staff for a project. It can include salary, benefits, and job responsibilities. A
staffing management plan defines the staffing rules for the project, specifically when and how human resource
requirements will be met. The projec t team directory shows who is on the team. The organizational chart
shows reporting structures on the project.

What is the major difference between a risk audit and a risk review?
A. There is no difference
B. A risk audit is only conducted on a much larger projec t
C. The project team conducts a risk audit, whereas an outside party conducts a risk review
D. An outside party conducts a risk audit, whereas the project team conducts a risk review.
A) Answer A is incorrec t bec ause there are significant differences between risk audits and risk reviews
B) Answer B is incorrect bec ause risk audits can be done on projec ts regardless of their size
C) Answer C is incorrec t bec ause a project team does not generally conduct a risk audit; however, it
frequently performs the risk review
D) Answer D is correc t. An outside party conducts a risk audit, whereas the project team conducts a risk
review. Risk reviews should be sc heduled regularly

Why is planning documentation required for administrative closure?
A. To update baselines
B. To secure customer approval
C. To analyze project performance
D. To secure product ac ceptance
A) Choice A is incorrect. Plan baselines are updated against change requests, and not projec t closure
B) Choice B is incorrect. Customer approval on plan is not required during projec t closure
C) Planning doc umentation establishes the framework for performance measurements and is therefore required
to create a final performance report on project objectives
D) Choice D is incorrect. Product ac ceptance is secured against product desc ription, and not plan
documentation

You signed an agreement with your client that the integration plan and other documents they provided would
remain confidential. You need these documents to complete the project. Another company contac ts you because
you're an expert in the field. They ask you for samples of integration plans, which they want to include in a book
they are writing. They promise you a "thank you" fee of 2000 Euro, but they need the information today. What
should you do?
A. Use the material provided by the customer without making any changes
B. Get permission from the customer
C. Use the material provided by the customer, but remove all company specific references
D. Create new material based on the confidential material
Get permission from the customer, then you c an use the material provided by the customer, but remove all
company specific references.
The proc esses in the closing process group c ome under which of the following knowledge area(s)?
A. Integration Management
B. Proc urement Management and administrative close
C. Integration Management and Procurement Management
D. It cuts ac ross all or part of the knowledge area depending on the type of project
A Choice A is incorrect. Integration Management involves administrative closure, however, one of the closing
proc ess is involved in different knowledge area and hence the answer is incomplete
B Choice B is incorrect. Administrative closure is a proc ess carried and it is not a knowledge area
C Closing proc ess group comprises two processes: "Close Project" and "Contract Closure" and these two
proc esses are involved in either Integration Management and / or Proc urement Management
D Choice D is incorrect bec ause the closing process group is involved in only 2 knowledge areas for a project

Performance reports usually disc uss _____ between estimated and ac tual performance on the project
A. Differences
B. Relationships
C. Connections
D. Variances
Choice A is incorrect bec ause the difference between estimated and actual performance on the project does
not completely reveal the required information. You still have to do the math to derive at the variance, which
is what you are looking for.
Choice B is incorrec t. Relationships between the estimated and ac tual performance do not portray the baseline
information.
Choice C is incorrect. Connections is a generic term and this is not used in the performance report.
Choice D is correct. Variance management consists of comparing t€he ac tual performance of the project to
the baseline. The project manager manages variances and looks for the reasons the variances occurred.

In your projec t, a change has been approved by the project sponsor. What should you do NEXT?
A. Evaluate the impact of the change
B. Follow the change control process to implement the change
C. Try to convince the sponsor that change will not be helpful to the project
D. Create a good configuration management system
A Choice A is incorrect bec ause the impact of the change is already evaluated by the project manager and
only then the approval comes from the sponsor
B Choice B is the correc t answer the project manager must follow a sequence of steps involved which is
communicating to the team, alloc ating resources, and implementing the change
C Choice C is incorrect bec ause the project manager will inform the sponsor if the changer is not helpful to the
project. However this is done before the change is approved and not after. A change is approved by the
sponsor only with the consent from the project manager
D Choice D is incorrect. Creating configuration system is only a part of the proc esses that the projec t
manager must carry to implement the change

Which of the following can best help a project manager during projec t execution?
A. Stakeholder analysis
B. Change Control Board
C. PMIS
D. Scope verification
Choice A is incorrect, as stakeholder analysis should have been c ompleted during the project planning
proc esses.
Choice B also incorrect. CCBs can assist the projec t manager, but not as much as the control and assistance
offered through a PMIS.
Choice C is correct. A PMIS can assist the project manager the most during projec t execution. It does not
replac e the role of the projec t manager. This is a tool and technique of direct and manage projec t execution.
The other tool and technique being expert judgment.
Choice D is incorrect. Sc ope verification is proof of the project work, not an assistant to the project manager.

You are defining evaluation c riteria for your project. The proc urement item is readily available from a number of
ac ceptable sellers. On which criterion may you focus on in such a situation?
A. Seller’s management approach
B. Price offered by the seller
C. Seller’s financial capacity
D. Understanding of your need
A) Answer A is incorrec t, bec ause seller management approac h is not a evaluation c riteria
B) Answer B is correct price offered by the seller is one of the evaluation c riteria
C) Answer C is incorrec t bec ause sellers financial capability will be evaluation c riteria after price
D) Answer D is incorrec t bec ause understanding of your needs is not evaluation c riteria

You are studying for your PMP certification with a friend and your friend says he has a purchased an ac tual copy
of the PMP Exam on an internet auction. You do not have proof that these are actual exam questions. What is
your responsibility as described by this document?
A. Continue to study with him bec ause it has not been proven that these are actual exam questions
B. Inform your friend that you cannot study with him because these could be exam questions, which
would be a possible PMI ethics violation
C. Inform PMI of this possible violation
D. Continue to study with him
You should not study with him as this is a possible ethics violation. Continuing to study with him could put you
in violation if the questions are in fac t real. You do not have proof that these are ac tual exam questions, so
you don't need to inform the PMI of this possible violation. You should only inform the PMI of a viloation if you
know it is an ac tual violation.
Question: 100 ( Incorrec t - Skipped )

What is the difference between projec t reports and performance reports?
A. Both mean the same thing.
B. Project reports are meant for customers while performance reports are meant for review within the team.
C. Project reports describe the status and issues while performance reports assess variances from
project objectives.
D. Project reports are on a weekly frequency and performance reports are event driven.
Project reports reflect project status and issues while making no assessment on the project performance
objectives. Performance reports include variance or trend analysis and predict future project performance with
reference to the planned objec tives.

Control charts are used for the:
A. monitoring and subsequent evaluation of process variations
B. determination of the mean and acceptable range of the variance
C. controlling project cost
D. controlling project delays
Control charts are used for the monitoring and controlling and subsequent evaluation of proc ess variations

A project manager in Detroit is having difficulty getting the engineers in his company's Detroit office to complete
design documents for his project. He has sent numerous requests to the VP of Engineering (also in Detroit) for
assistance in getting the design documents, but so far his efforts have been unsuccessful. What kind of
organization does this projec t manager work in?
A. Strong Matrix
B. Hierarchal
C. Functional
D. Projectized
The clue to this question is the project manager's low authority, which implies a functional organization. The
PM must appeal to the head of the engineering department rather than making his request directly to the team
members. In both a strong matrix and projectized organization the project manager would have sufficient
authority to directly manage the engineers.

Which of the following can be displayed as an S-Curve?
A. Estimate at completion
B. TCPI
C. CPI and SPI
D. Cost performance baseline
The Cost Performance baseline is often said to be displayed as an s-curve.
The S-Curve is a graphic display of cumulative cost, labor hours, percentage of work, or other quantities,
plotted against time. The S-Curve can also be used to show planned value, earned value, and actual cost of
project work.

Your project team is preparing for a progress review with senior management. Which of the following should be an
appropriate tool for reporting projec t status?
A. Network diagram
B. GANTT chart
C. Pareto chart
D. Milestone chart
The correc t answer is choice D. Project progress review with senior management is best done by a milestone
chart.
Choice A is wrong, bec ause a network diagram shows interdependencies between various ac tivities.
Choice B is wrong, bec ause a GANTT chart shows progress on a task basis, which is probably too detailed to
review at a senior management level.
Choice C is wrong, bec ause a Pareto chart is used to identify those few causes (20%) that cause most of the
errors (80%) and hence is not a relevant tool for demonstrating projec t progress.

Based on historical data, the amount of overtime assoc iated with the design effort of a project is estimated at
100 hours with a 40% probability of oc curence, 200 hours with a 40% probability of oc curence, and 300 hours
with a 20% probability of occurence. What is the expected monetary value of the amount of overtime?
A. 100 hours
B. 160 hours
C. 180 hours
D. 260 hours
Design 1 : 100 x 0.4 = 40
Design 2 : 200 x 0.4 = 80
Design 3 : 300 x 0.2 = 60
Total = 40 + 80 + 60 = 180 Hours

Which of the following proc ess is involved with collecting and disseminating performance information?
A. Information distribution
B. Communications planning
C. Manage stakeholders
D. Performance reporting
A) Choice A is incorrect. Information distribution makes needed information available to project stakeholders in
a timely manner
B) Choice B is incorrect as communication planning determines the information and communications needs of
the projec t stakeholders
C) Choice C is incorrect bec ause this proc ess is to manage communications to satisfy the requirements of and
resolve issues with project stakeholders
D) Choice D is correct. Proc ess involving the collection of all baseline data, and distribution of performance
information to stakeholders is called performance reporting

You are a project manager for the Smooth Ink Company, and your company manufactures ink primarily for the
newspaper industry. One of the deliverables of your projec t entails purchasing new manufac turing equipment that
will reduce production times. You’ve outlined two alternatives based on an initial investment of $76,000.
Alternative A has a payback period of 27 months. Alternative B has initial cash inflows of $18,000 semi-annually
for the first two years and c ash inflows of $4,000 per quarter thereafter. Which alternative should you c hoose?
A. A decision cannot be made based on this information alone, because the payback periods are the
same.
B. Alternative A, bec ause its payback period is shorter than Alternative B’s payback period.
C. Alternative B, bec ause its payback period is shorter than Alternative A’s payback period.
D. A dec ision c annot be made, bec ause there is not enough information in the question to compute the
paybac k period for alternative B.
The payback period for both of these alternatives is the same, so you c annot choose between them based on
this information alone. The payback period for Alternative B is calculated as follows: Year 1 inflows = $36,000,
Year 2 inflows = $36,000, for a total of $72,000 in 24 months. The first quarter of the next year inflows =
$4,000, bringing the total to the initial investment of $76,000. The payback period is 27 months.

You observes that a team member is repeatedly completing tasks with errors, resulting in rework. On investigation
of the past trac k record, it is established that the individual does not have a skill gap. What should the project
manager do?
A. Ask for a replac ement from the functional manager
B. Report the non-performance to the functional manager
C. Adjust the schedule to provide for extended durations for tasks assigned to the individual
D. Discuss the concern with the individual to figure out the cause
A) Choice A is incorrect bec ause the project manager should understand the cause of the problem before
taking any ac tion like this.
B) Choice B is not a good choice bec ause reporting non-performance to a functional manager would not solve
the issue of rework and the PM still doesn't know the cause of the problem.
C) Choice C is incorrect bec ause adjusting the sc hedule might not be the solution because the reason for the
problem is not yet identified.
D) Choice D is correct. The cause of non-compliance to expected performance levels needs to be established
before any other ac tion is taken. The situation requires the projec t manager to investigate and establish the
cause of the problem before evaluating the alternatives stated in the other three choices

Co-Location is a techniques which means:
A. Using offshore team members
B. Placing many or all of the most active project team members in the same physical location to
enhance their ability to perform as a team
C. Requiring team members to work overseas
D. Performing a project at various loc ations
Co-location is a techniques used for team building where you place many or all the most active project team
members in the same physical loc ation to enhance their ability to perform as a team.
The stakeholders on your project are having many disagreements over the technical approac h to complete the
project. Disputes are common in project planning and must always be expected. Which of the following doc uments
is concerned with trac king things that are preventing the project team members from meeting project goals?
A. Dispute register
B. Project plan
C. Risk register
D. Issues log
The correc t answer is choice D. An issue is any point or matter in question, in dispute, or over which there are
disagreements. The issues log documents concerns that keep the project team members from meeting project
goals.

Which of the following is not an input to the Control Cost process?
B. Project funding requirements
C. Work performance measurements
D. Performance reviews
The inputs to the Control Cost proc ess are project management plan, project funding requirements, work
performance measurements, and organizational process assets. Performance reviews is a tools and tec hniques
of Control Cost.

Amongst the conflict resolution tec hniques (Confrontation, Compromise, Withdrawal, Forcing and Smoothing),
which conflict resolution technique is Most Preferred or Least Preferred by projec t managers, respec tively?
A. Compromise, Withdrawal
B. Confrontation, Withdrawal
C. Confrontation, Forcing
D. Smoothing, Withdrawal
The most preferred Conflict Resolution T echniques by project managers (in desc ending order of importance)
are as follows:
1. Confrontation
2. Compromise
3. Smoothing
4. Forcing
5. Withdrawal

All the following are needed to create the WBS EXCEPT?
A. Organizational proc ess assets
B. Project charter
C. Requirements doc ument
D. Project Scope statement
The project charter is not required during creation of the WBS. The project sc ope statement, requirements
document, and Organizational process assets are inputs to the Create WBS proc ess.

When should details about the product of the project be given?
A. Before anything else happens in the project
B. Before the project plan is put under version c ontrol
C. As soon as possible in the project planning
D. Whenever the sponsor requires it
A) Answer A does not work bec ause you c an begin doing various types of planning, such as risk management
planning, without knowing the complete details of the product itself
B) Product details should be gathered as early as possible. Project manager need not wait until the project
plan is put under version control. The answer is incorrect
C) The more clarity you have about the details of the project's product, the better you will be at writing the
overall plan. Do not leave the details for a later date if you c an get them early in the planning proc ess
D) Product details are to be collected in the beginning of the project / as early as possible. It does not have
to wait until someone like project sponsor requests for. Answer D is wrong

You’re using techniques such as value engineering, value analysis, function analysis, and quality function
deployment. What tool and technique of this process are you using while developing sc ope statement?
A. Benefit/cost analysis
B. Product analysis
C. Earned value analysis
D. Benchmarking
Product analysis is a tool and technique of Define Scope, uses techniques such as product breakdown
analysis, systems engineering, value engineering, value analysis, function analysis, and quality function
deployment.

The projec t manager, stakeholders and project team members all have roles and responsibilities throughout the
project. As the project manager, you might link the project sc ope definition to the project roles and indicate
which ac tivities eac h person will participate in. You might display this information in which of the following ways:
A. PDM
B. RAM
C. SOW
D. RRM
The Responsibility Assignment Matrix (RAM) links the projec t roles and responsibilities to the sc ope definition
and WBS elements or ac tivities. The RAM usually has a row and c olumn format showing ac tivities and the roles
assigned to those ac tivities.

You are engaged in making sure that the correct proc esses are followed. Which of the following proc esses are you
engaged in?
A. Perform Quality Assurance
B. Scope Verification
C. Perform Quality Control
D. Manage Projec t Team
A) Perform Quality Assurance involves making sure that correct processes are followed
B) Scope Verification involves obtaining ac ceptance of the deliverable
C) Perform Quality Control involves checking the deliverables to ensure compliance ac cording to the required
quality spec ifications of the project
D) Manage Project Team involves human resource management for the projec t. Also, with regard to
performance, you take ac tion when you see that a project team member is not performing

Which of the following identifies the functional and physical charac teristics of a system used on the project?
A. SOW
B. Engineering plans
C. Tec hnical outlines
D. Configuration management
Configuration management would include the functional and physical charac teristics of the system.

During a contrac t negotiation led by the purchasing officer of the organization and the projec t manager
participating in the proc ess, how important is the non-verbal communication by the project manager?
A. Of major importance
B. Of little importance
C. Of no concern
D. Relevant only when the scope and schedule are being disc ussed
A) Non-verbal communication is about 55% of all communications and hence is of major importance throughout
the negotiation proc ess, by every participant in the proc ess
B) Choice B is incorrect as non verbal communication forms a major part of the meeting in terms of
understanding the gestures and body language of the vendor
C) Choice C is incorrect. During the negotiation proc ess, especially when vendors talk directly to the project
manager and procurement officer, non-verbal communication plays important role
D) Choice D is incorrect bec ause non-verbal communication is not related to sc ope and / or sc hedule, it is
common on all personal meetings

Which of the following would fac ilitate a larger participation of sellers against an invitation to bid?
A. Bidders' conference
B. Advertising
C. Letter of intent
D. Single source order
A) Bidders' c onference is to ensure a common and c orrec t understanding of the scope of work being procured
B) The purchaser may insert advertisements in newspapers, magazines, or in any other media meant for public
distribution to secure a larger response to the inquiry for proc urement
C) Letter of intent is an intimation of intent to hire and it is not a tool for solicitation
D) Single source order implies a preferred supplier of the goods or services and restricts competition

Common Project cost elements includes
A. Labor and material
B. Labor, material, other direct costs, and overhead costs
C. People, fac ility costs, materials, subcontrac tors
D. Labor, materials, other direct costs
Common projec t cost categories are labor, material, other direct costs, and overhead costs.

Inputs to the Define Sc ope proc ess are
A. Product Analysis, Alternative Identification, Expert Judgment, Facilitated workshop
B. Organizational Process Assets, Project Charter, Requirement documentation
C. Project Management Plan, Requirement Documentation, Requirement trac eability Matrix, Validated
Deliverables
D. Organizational Proc ess Assets, Project Sc ope Statement and Requirement doc umentation
Inputs to the Define Scope proc ess as defined by PMBOK are Organizational Process Assets, Project Charter,
Requirement doc umentation.

Universal Global Company's construction division has won a contract to build an office park in downtown Paris.
Sheila was elected to create a program for the creation of the buildings. Which one of the following best describes
a program?
A. A standardized approac h to project management within an organization
B. A standardized approac h to project management with multiple projects coordinated together
C. A collection of related projects managed in coordination to gain control that would not necessarily
be available if the projects were managed independently
D. A collection of related projects all contributing to one deliverable
A program is a collection of related projec ts managed and c oordinated to gain a higher level of control.
A, B, and D do not ac curately describe a program.

The seller tells you that your ac tivities have resulted in an increase in their costs. You should:
A. Recommend a change to the project costs.
B. Have a meeting with management to find out what to do.
C. Ask the seller for supporting information.
D. Deny any wrongdoing.
This is a professional and social responsibility/proc urement/cost question. The situation desc ribed involves a
claim. The best thing to do would be to get supporting information to find out what happened and take
corrective ac tion for the future. After choice C and negotiation, Choice A would most likely oc cur. Choice D is
unethical at first instance. Choice B is a meeting with your management and should not oc cur until you have
all the information.

The title of a manager who is responsible for a group of similar related projects:
A. Portfolio Manager
B. General Manager
C. Project Manager
D. Program Manager
A Portfolio Managers manage multiple programs not projects, this is not right
B Choice B is not correc t: General Managers do not manage projects
C Project Managers manage only one project which is under programs and hence this answer is incorrec t
D The Program Manager is the person who manages multiple projec ts under spec ific criteria. This is the correct
answer.

You are working with the project manager for a construction project. One of the identified risks within the project
has a 20 percent chance of happening. If the risk oc curs, it will cost your project an additional $150,000. What is
the contingency amount needed for this risk event?
A. $150,000
B. $30,000
C. $75,000
D. Zero; the risk is not real until it oc curs
The risk has a 20 percent chance of happening and will cost the projec t $150,000. Twenty percent of
$150,000 is $30,000—the expec ted amount of contingency. $150,000 is 100 percent of the risk event
oc curring. $75,000 is based on a 50 percent likelihood of the risk occurring. The risk is real even if the risk
event does not occur.

Which of the following is not involved in quality control?
A. Quality audit
B. Statistical sampling
C. Trend analysis
D. Inspec tion
A) 'Quality audit' is a structured review of proc esses, to identify lessons learnt that could improve project
performance of the current project or of other projec ts, within the performing organization
B) Choice B is incorrect bec ause 'Statistical sampling' is performed on work results and therefore, is a part of
project quality control.
C) Trend analysis is a tool used in quality control proc ess and
D) inspection'

Why is it nec essary to archive project records?
A. It is a good prac tice
B. It is recommended by the project office
C. To support future projects
D. To document project performance
Project archives are required to support future projects in the performing organization. Even though the other
choices are also true, the best response is choice C.

Resource leveling attempts to:
A. Reduce resource requirements by smoothing out period-to period resource assignments.
B. Ensure that the budget abnormalities are overcome.
C. Reduce the amount of resources so that they can be shared with on other endeavors.
D. Increase the amount of the project manager’s authority so that budget dollars can be appropriated.
Resource leveling attempts to reduce resource requirements by smoothing out period-to period resource
assignments.

Which of the following is not an organizational proc ess asset?
A. Organizational proc edures
B. Organizational policies
C. Organizational cultures
D. Historical information
Organizational culture, structure, and proc esses are not organizational process assets. They are enterprises
environmental fac tors.

When should administrative closure be carried out?
A. At the completion of each phase of the project
B. At the completion of project
C. At the completion of eac h deliverable
D. At the completion of eac h proc urement contrac t on the project
A) Administrative closure ac tivities should be carried out at the completion of eac h phase of a projec t. This is
particularly important and has a significant role in assessing whether the projec t can be continued into its next
phase
B) Choice B is incorrect bec ause the profitability of the projec t will not be known in case the administrative
closure is not conducted during the end of eac h phase
C) Choice C is incorrect. Administrative closure is final process of the projec t’s phase or a project and c annot
be processed after eac h deliverable
D) Choice D is incorrect bec ause administrative closure for the project will occur only once for every project or
project phase

What is "Independent estimate" applied as a criterion for evaluating proposals?
A. Check proposed pricing by procuring organization
B. Project budget for the project statement of work
C. Range of estimates as derived by rough order magnitude techniques
D. Average of prices received from prospective sellers.
Independent estimates derived by the buyer are often referred to as "should c ost" estimate for the
proc urement. This is done to ensure correct pricing levels on the proc urement.

Using Earn Value Management schedule performance metrics
A. Eliminates the need for milestone reports
B. Reduces the need for critical path analysis
C. Generally provides ac curate cost collection at the control ac count level
D. Quantifies schedule status in economic terms
Eraned Value Managment allows you to quantify schedule in economic terms. Milestones reports and c ritical
path analysis must still be done. Cost collection is not done in sc hedule performance.

List out the constituents of a contrac t:
A. Negotiating, Knowledge of company policies and forms
B. Description of the project, Delivery date, Identification of authority, Price and payment terms,
Provisions for termination, etc.
C. Work Breakdown Structure
D. Proc urement management plan
A) Choice A is incorrect. These are the skills and area of awareness a projec t manager shall possess, these
does not fac tor in a contrac t
B) Choice B is correct as the mentioned lists are some of the important elements used to construct a contrac t
C) Choice B is incorrect bec ause a WBS is used to organize the project components and deliverables, a
valuable aid in dec iding what resources should be ac quired for the projec t. This will not be part of a contrac t
D) Choice C is incorrect. Project management plan defines how the procurement management proc ess is
handled. This can be used as an input to drafting a contract.

Conformance to spec ifications is one description of ________.
A. Grade
B. Scope
C. Quality
D. Tec hnical information
Quality on a projec t means that you are conforming to the quality standards that were set before you began
work on the project.

You are a project manager in an Information T echnology (software) company, but you recently got an offer as a
project manager in a construction c ompany with a 45% salary hike. You have excellent technical knowledge in the
software field, but do not have much exposure to the Construction Industry. In this context,
A. You should attend training c lasses related to the construction industry to get more technical expertise in
the field
B. You should not take up the assignment because you will lose out on the experience and skills gained in the
information technology field
C. You should take up the assignment because similar project management skills will be required in
the construction company, as were required in the software company
D. You should try to get more information about project management in the construction industry and then
make an informed dec ision about whether to take up the new opportunity
According to PMI, project management skills span across industries and the knowledge gained in one industry
can be used in other industries. A project manager need not be technically qualified in the industry to
succeed. You are already an expert in project management, and managing construction work might be new,
however, this can be easily managed. You should be sure to inform your sponsor of your lac k of subject
matter knowledge.

Maslow's Hierarchy of Needs theory states that:
A. The strongest motivation for work is to provide for physiological needs.
B. Hygiene fac tors are those that provide physical safety and emotional security.
C. Psychological needs for growth and fulfillment can be met only when lower-level physical or
security needs have been fulfilled.
D. The greater the financial reward, the move motivated the workers will be.
Maslows hierarchy of needs states that only when the lower level needs are met can you move to the next
level.

The features and functions of a product or service are considered ________, and the work that must be done to
deliver a product/service as the output of the project is considered ________.
A. Project sc ope, Product sc ope
B. Requirements, Deliverables
C. Product scope, Project scope
D. Scope management plan, Projec t management plan
The correc t answer is C. Product sc ope desc ribes the features and functions of the product or service,
whereas projec t sc ope describes the work that must be done to deliver a product/service as the output of the
project.

Sarah feels that buying lunch for her team every week is a great way to keep them motivated. What type of cost
is this?
A. Direct
B. Fixed
C. Variable
D. Indirect
Executing - Cost Management
This is an indirect cost. Indirec t cost are costs that are not directly related to the project or projec t
deliverables, but can provide tangible benefits to the projec t. In this case Sarah’s team is more motivated and
does better work.

Which of the following costs of quality is not a cost of non-conformance?
A. Replac ement costs
B. Inspection costs
C. Rework costs
D. Scrap costs
Inspection is the cost of ensuring quality or conformance, which is money spent to avoid failures. Examples of
the costs of non-conformance (money spent bec ause of failures) are replac ement, rework, and scrap.

You are using a Statistical Process Chart and you see that almost all of the values are falling outside of the
Control Limits and many are falling outside of the Spec Limits. What would be the initial best course of ac tion in
this situation?
A. This should c orrect itself over time as more data is gathered so you just need to monitor, no need to take
ac tion at this time
B. Re-analyze and renegotiate the Upper and Lower Control and Spec Limits
C. Make changes to the product so they fall within these limits even if that means a change in sc ope
D. Look for 7 c onsecutive data points above or below the mean then identify the defect
The initial calculations to estimate the Limits may have been incorrect, so you should check the estimates and
re-analyze and renegotiate the Upper Control Limit, Lower Control Limit, Upper Spec Limit and Lower Spec
Limit.

A project manager is constantly plagued by frustrations in her projects. What is the best project team
environment to work in?
A. A team in the same room that reports directly and only to the project manager
B. A team that meets frequently fac e to fac e, but has other functional duties
C. A loosely connected group of functional experts who help direct the project
D. A team that resides offsite
Co-location and a projectized environment is the best situation for a project team.

The Earned Value Management S-Curve shows
A. Cumulative EV and AC
B. Cumulative CPI and SPI
C. Variance at completion (VAC)
D. Estimate at completion (EAC)
The EVM s-curve can show data such as EV, CV and PV. It has cumulative values on the vertical axis and
time on the horizontal axis.

The PMBOK guide defines the work breakdown structure (WBS) as?
A. A formal, approved document used to guide both project execution and projec t control.
B. A doc ument that obligates the seller to provide the spec ified product and for the buyer to pay for it.
C. A doc ument that defines the sum of the products and services to be provided through the projec t, which
is utilized for making future project decisions.
D. A deliverable-oriented hierarchical decomposition of the work to be executed by the project team
to accomplish the project objectives and create the required deliverables.
As stated in the PMBOK, work that is not included in the WBS is not in the sc ope of the projec t. It organizes
and defines the total sc ope of the project.

Your company just won a major new project. It will begin in three months and is valued at $72,600,000. You are
the project manager for an existing project. What is the FIRST thing you should do once you hear of the new
project?
A. Ask management how the new project will use resources
B. Resource level your project
C. Crash your project
D. Ask management how the new project will affect your project
As you work on a project you need to constantly reevaluate the project objectives and how the projec t
relates to other concurrent projects. Is your project still in line with corporate objec tives? If the other project
will impac t yours, you need to be proactive and work on options now.

Communication technology and c ommunication requirements analysis are
A. Tools and Technique of Plan Communications
B. Outputs from Plan communication
C. Inputs to Distribute Information
D. Inputs to Identify Stakeholders
Planning - Communications Management
Communication requirements analysis, communication technology, communication model and c ommunication
methods are tools and technique of the Plan Communications proc ess.

A routine audit of a cost reimbursable (CR) contrac t determines that overcharges are being made. If the contrac t
does not spec ify corrective ac tion, the buyer should:
A. Continue to make project payments
B. Halts payments until the problem is corrected
C. Void the contrac t and start legal ac tion to recover overpayment
D. Change the contrac t to require more frequent audits
A) Answer A is correc t to continue project without halting
B) Answer b is incorrect bec ause choice B is really saying “halt ALL payments”. Halting all payments would be
a breac h of contrac t on the buyer’s part
C) Answer C is incorrec t bec ause Choice C is too severe and c annot be done unilaterally
D) Answer D is incorrec t bec ause Choice D does not solve the problem presented

What is the present value if the organization expec ts to make $100,000 four years from now and the annual
interest rate is 6 percent?
A. $100,000
B. $79,209
C. $70,000
D. $94,000
The present value of $100,000 four years from now can be calculated as follows:
PV = FV / (1+r)^n
PV = $100,000 / 1.06^4
PV = $100,000 / (1.06 x 1.06 x 1.06 x 1.06)
PV = $100,000 / 1.26247
PV = $79,209
PV is the present value, FV is the future value, r is the interest rate, and n is the number of time periods.

Which of the following BEST describes the records management system?
A. A system is used by project manager to manage contract and procurement documentation and
records
B. A library that stores the lessons learned for past projec ts
C. A fling system to store paid invoices and Bills
D. A system to store human resource records, salary information and work performance history
A records management system consists of a specific set of processes, related c ontrol functions, and
automation tools that are consolidated and combined as part of the project management information systems.
The records management system is one of the tools that you use in the Contrac t Closure process.

What is the process of evaluating the overall project performance on a regular basis to provide confidence that
the project will satisfy the relevant quality standards called?
A. Quality Assurance
B. Quality Control
C. Quality Planning
D. Quality Review
A) Quality Assurance process deals with implementing the planned and systemic activities within the quality
system to assure the project team and the external stakeholders that the projec t would meet the quality
standards
B) Quality control involves monitoring specific project results to determine compliance to relevant quality
standards. Thus, choice B is incorrect
C) Quality planning involves the identification of quality standards relevant to the project. Thus, choice C is
incorrect
D) Quality Review is a form of quality audit and is a method of chec king adherence to proc esses and deriving
proc ess improvement ac tions. Thus, choice D is incorrect

An externally imposed project completion time nec essitates the project duration as 75 days. The critical path of
the project is established as 75 days, with a standard deviation of 3 days. What could be the maximum projec t
float available?
A. Six days
B. Zero days
C. Three days
D. Cannot be established
Project float is the difference between externally imposed completion period and estimated project duration,
which is equal to the length of the critical path. The difference is zero. Add to this the standard deviation of 3
days (implying that the critical path could be +/- 3 days from the estimated one). The maximum float could be
0+3 = 3 (three) days.

The document that details the work needed to complete the project is the:
A. Statement of Work
B. Schedule
C. WBS
D. Network diagram
The WBS defines each deliverable and breaks those down further to include all work that is required to
complete the projec t objec tives.

What is the project manager responsible for from a cost management standpoint?
A. Predicting regular cost increases
B. Nothing, the Cost Manager is the person responsible for handling costs
C. Providing an exac t, detailed cost estimate
D. Planning work, materials, and equipment resources
The project manager is responsible for planning the work required, the materials required, and the equipment
resources required to ensure the project is successful.

Which of the following situations describes a violation of the PMI Professional Code of Conduct?
A. Accepting a gift that is within the customary guidelines of the country or province you are currently
working in.
B. Use of confidential information to advance your position or influence a critical decision.
C. Complying with laws and regulations of the state or province in which project management services are
provided
D. Disc losing information to a customer about a situation that doesn't have an appearance of impropriety.
Use of confidential information to advance your position or influence a critical dec ision.
Your organization is hosting a bidders conference and you know that one of the vendors bidding for the contrac t
is a company owned by one of your relatives. However you are not particularly close to this relative and only
meet with him once or twice a year. What would be your best approach in this situation?
A. Disc lose to Senior Management this potential Conflict of Interest, but since you are the project manager
you still get to dec ide who should get the contrac t
B. Since you are not close to this relative then you should be able to make an unbiased decision, therefore
you do not need to disc lose any details or remove yourself.
C. Disclose to Senior Management this potential Conflict of Interest, and remove yourself completely
from any decision making in this bidders conference
D. Since you are not close to this relative you do not need to disc lose this relationship, however you should
dec ide not to choose his company for the bid.
The best option is answer choice C. The most ethical approac h is to remove yourself entirely from the dec ision
making process. Even though you may not be close to this relative, other vendors may not see it that way
and may believe there is bias on your part. It always ethical to remove yourself from any potential conflicts of
interest.
Option A is partially correct. You should disc lose your conflict of interest, but you would also want to remove
yourself from making the dec ision.

A manufac turing project has a sc hedule performance index (SPI) of 0.89 and a cost performance index (CPI) of
0.91. Generally, what is the BEST explanation for why this occurred?
A. The Scope was changed.
B. A Supplier went out of business and a new one needed to found.
C. Additional equipment needed to be purchased.
D. A critical path activity took longer and needed more labor hours to complete.
To answer this question, you must look for a choice that would take longer and c ost more. If you picked
choice A, reread it. It says sc ope was changed, not necessarily added to. If the change was to reduce the
sc ope, it might also have reduced c ost. Though it would take time to handle the event desc ribed in choice B,
the impacted ac tivity might not be on the critical path, and thus might not affect time. Choice C would
definitely add cost, but not nec essarily time. Only choice D would negatively affect both time and c ost.

Which of the following describes SWOT?
A. Strengths, weaknesses, options, and timing
B. Strengths, weaknesses, opportunities, and threats
C. An elite project team that comes in and fixes project risks and threats
D. Positive and negative risks
SWOT analysis is part of risk identification and examines the strengths, weakness, opportunities, and threats
of the projec t to make certain all possibilities for risk identification are covered.

Your team must regularly hire a group of British engineers to test the product. You are not sure how many times
you will need to use the engineers, but you do know that the engineers are all located in the UK, charge a regular
rate, and need to be paid in British Pounds. What kind of cost is this?
A. Variable
B. Direct
C. Fixed
D. Indirect
This is a variable cost. By definition variable costs will vary based on the number of times you need to use the
resource.

Which of the following is not an input you should use during the staff acquisition proc ess?
A. Personnel administration policies
B. Staffing Management Plan
C. Information about competancy levels and prior experience
D. Project team directory
The correc t answer is D. The project team directory is an output of the Acquire Project Team process.

Project costs are over budget when
A. CPI<1
B. CPI>1
C. CV>1
D. EV>AC
If CPI less than 1, you are spending more than anticipated for the work completed.

This measurement is the value of work that has been completed to date.
A. EAC
B. VAC
C. EV
D. PV
Earned Value (EV) is the value of the work that has been c ompleted to date.

A friend of yours, a fellow PMP, has ac cepted a position with another company. He has told you he is going to
make electronic copies of the project management templates your organization has developed because it will make
him more efficient. Which of the following should you do?
A. You and your friend disc uss the situation and he convinces you that since he helped design and create the
templates, there should be no problem with him taking copies to his new company.
B. You know this is an ethics violation according to the PMI Code of Ethics and Professional Conduct . You
report your friend so that a formal investigation c an take plac e.
C. You tell your friend he should c heck with his manager before making the copies of the templates. If
approval is given by his manager, then it should be ac cepable since his manager has granted official
approval of the ac t.
D. You tell your friend you're concerned because the templates belong to the organization and not
him personally. You ask him not to make copies and explain that you'll have to report this as an
ethics violation to PMI and to his director if he should do so.
Choice D is correct. The best answer in this sc enario is to tell your friend the templates are intellec tual
property that belong to the organization, not to him personally, and to warn him that if he copies the
templates, she will have committed an ethics violation and you'll be obligated to report him.
Choice C may seem correct, but you were not told that his manager has the authority to release the
documents, nor were you told what the company policy is in such situations. Thus choice D is the better
answer.

Earned Value should be determined by using
A. Value milestones
B. An estimated percent of work complete
C. Physical count of units complete
D. The method or technique selected during planning
EV will be found by using the method defined in planning stage.
Which of the following is not relevant for project plan development?
A. Work authorization system
B. Estimating tools & techniques
C. PMIS
D. Organizational policies
Choice A is the correct answer.
Work authorization systems are used for ensuring that work is done at the right time and in the right sequence
- this is relevant during project execution and not during planning.
Estimating tools & techniques and PMIS are Project Management Information Systems, which are tools used
for project plan development.

You are a project manager for Peeping-Tom Security Company. Your company won a bid to install surveillance
cameras in various areas in the city. You sub-contrac ted some of the electrical work to another company.
Through an independent review, you uncover that the proc ess the subcontrac tor uses to report its progress is
highly inefficient. Which of the following is true?
A. You are in the Close Proc urements process and have performed a proc urement audit.
B. You are in the Verify Scope process and have performed a quality audit.
C. You are in the Perform Quality Assurance process and have performed a quality audit.
D. You are in the Perform Quality Assurance process and have performed proc ess analysis.
You have performed a quality audit, which is a structured, independent review of the organizational proc esses
or project proc esses, policies, proc edures, or activities. Process analysis examines the root causes and follows
steps in the proc ess improvement plan. The only tool and or tec hnique of the Verify Scope proc ess is
inspec tion. Proc urement audits are concerned with reviewing the procurement proc ess primarily to identify
lessons learned.

Management reserve is used for
A. future needs
B. known risks
C. unknown risks
D. added scope
Management reserve is used on unknown risks. In other words, these are risks that you did not identify as
part of the risk planning proc esses.

The Distribute Information tools and techniques are
A. Communication management plan and distribute information tools
B. Project management methods and distribute information tools
C. Performance reporting and communication technology
D. Communication methods and information distribution tools
The tools and techniques of the Distribute Information proc ess are communication methods and information
distribution tools.

The proc ess of creating a work breakdown structure results in:
A. A project sc hedule
B. Team buy-in
C. A project budget
D. A list of identified risks
WBS is team building ac tivity created by project, hence it is called is team buy-in. You also know that
creating the WBS does not result in a projec t sc hedule, a project budget, or a list of identified risks; those are
all results of other PMBOK processes.

Which of the following is not required to be done for closing a project?
A. Making final payments
B. Updating project archives
C. Updating staffing management plan
D. Obtaining c ustomer sign-off
Contrac t close out ac tivities include product verification, financial closure (making final payments and updating
cost records), conducting lessons learned, final project performance reporting, and archiving projec t records
for future reference.
Staffing management plan deals with stakeholder identification and management with respec t to the available
skills, roles, and responsibilities. Staffing management plan and updates to the same are parts of project
execution, and not relevant for projec t closure.

You know that BAC = 500, PV = 325, AC = 275, and EV = 250 and that you are experiencing typical variances.
What is ETC?
A. 227.3
B. 250
C. 274.7
D. 525
You must first calculate CPI in order to calculate ETC. CPI is EV / AC. We have 250 / 275 = .91. ETC with
typical variances is (BAC – EV) / CPI. numbers are (500 – 250) / .91 = 274.7.

You have been requested to provide a duration estimate for the project. Which of the following will offer the best
level of detail in your estimate?
A. WBS
B. Rough order of magnitude
C. Scope statement
D. Stakeholder analysis
Project Scope is dec omposed into more manageable components to estimate and monitor project. The WBS
will break the project into more manageble parts that can be estimated.

You have just rec eived approval for the projec t charter. What other information would you need in order to
conclude the Initiating process group?
A. Full projec t team
B. Work breakdown structure (WBS)
C. Network diagram
D. Stakeholder register
The Initiating process group includes the proc esses for creating the project charter and identifying
stakeholders.

Your organization is in business to make a profit and you know that management must choose projects that will be
the most profitable for the company. This approach to projec t selection is based on which one of the following?
A. Dynamic algorithms
B. Opportunity cost
C. Economic model
D. Pareto charting
This is a simple economic model of choosing the most profitable project for the organization. Examples of
economic models include payback period, net present value (NPV), and internal rate of return (IRR).

Who is responsible for team development?
A. Project manager
B. Functional manager
C. Stakeholders
D. Project team
A) The project manager owns the responsibility of managing team development
B) A function manager takes responsibility in assigning staff to the projec ts, however functional manager will
not deal with projec ts and hence they are not responsible for team development, thus, choice B is not correct
C) Stakeholders are persons who c an influence the project directly or indirectly and they are not responsible
for the development of a project team and the answer is incorrect
D) Choice D is incorrect bec ause project team cannot develop its own team, espec ially when there are
conflicts within the team. It has to be resolved by a supervisor

Which of the following is a tool or technique used in Perform Integrated Change Control?
A. Change requests
B. Change control meetings
C. Change approval system
D. Project management information systems (PMIS)
The tools and techniques used during the Perform Integrated Change Control process are expert judgment and
change control meetings.

Which of the following proc esses is involved in making needed information available to project stakeholders in a
timely manner?
A. Performance reporting
B. Manage stakeholder expec tations
C. Distribute Information
D. Communications planning
The correc t answer is C. Making needed information available to project stakeholders in a timely manner is
done in the Distribute Information proc ess.

Online, classroom, computer-based, and on-the-job are all examples of types of ________
A. Ideas
B. Training
C. Tac tics
D. Communication
Choice B is the correct answer. Online, classroom, computer-based, and on-the-job are types of training.

Your project has CPI of 0.81 and T CPI = 1.25. You know that your project is
A. Overbudget and ahead of sc hedule
B. Underbudget
C. Overbudget and behind sc hedule
D. Overbudget and TCPI is a projection of cost performance that must be achieved on the remaining
work
CPI 0.8 says every one dollar spent we are getting only 81 cents of completed work. To complete performance
index (TCPI) is a projection of cost performance that must be ac hieved on the remaining work to meet a
specified management goal such as the BAC or the EAC.

The customer has asked you to show that your sc hedule has vertical trac eability. To do this you will show that
A. All milestones oc cur at the end of the month
B. The sc heduled work can be trac ed to the contract or statement of work.
C. The earlier planned start date, among the subordinate activities, is the start date shown in the
summary schedule
D. The hierarchy of the sc hedule follows the WBS
Vertical trac eability means that all subordinate work fits within the timeframe shown in a summary sc hedule of
the same work. The earlier planned start and latest planned finish date of the work should c orrespond to the
dates in the summary sc hedule line. There should not be any time buffer.

A single-source seller means what?
A. There is only one qualified seller
B. There is only one seller the company wants to do business with
C. There is a seller that can provide all aspects of the projec t procurement needs
D. There is only one seller in the market
A) Choice A is incorrect as it describes a “sole source” seller
B) A single-source seller means there is only one seller the company wants to do business with
C) Choice C is incorrect. There may be multiple sellers that can satisfy the projec t needs
D) Choice D is incorrect. Just bec ause there is only one seller in the market does not mean the seller can
adequately and fully fill the project needs

Your project team is currently doing product analysis and trying to find alternative approaches to doing the
project work. Which one of the following would be an appropriate output of this process?
A. Project charter, requirement documentation
B. Project scope statement and project document updates
C. Project charter, stakeholder register
D. Project statement of work, stakeholder register
This question is referring to the Define Sc ope proc ess, because that is where you would use the product
analysis and alternatives identification tools and tec hniques. The other tools and techniques of the Define
Scope process are expert judgment and fac ilitated workshops.
The correc t answer to this question is B, beac use the outputs of the Define Scope process are project sc ope
statement and project doc ument updates.

This term implies that as ac tivities get closer to their start date, they require more detailed plans in the WBS.
A. Progressive elaboration
B. Rolling wave planning
C. Dec omposition
D. Incremental planning
Rolling wave planning is a form of progressive elaboration planning where the work to be ac complished in the
near term is planned in more detail and future work is planned at a higher level of the WBS.
You are the project manager and your company consistently completes projects for other companies. Within your
organization the project managers have the highest level of authority on a projec t. You are likely operating within
what type of organizational structure?
A. A functional structure
B. A weak matrix structure
C. A projectized structure
D. A company using an ISO 9000 program
In a Projec tized organizational structure the project manager has the highest authority level.

You are considering the dec ision to go for a contrac t.The probability of completing a contrac t is 92% and if the
project fails to complete the contrac t then the associated risk is $10,000 which will be charged as penalty. What
is expec ted value of your dec ision?
A. +800
B. -800
C. -1000
D. 9,200
The probability of not completing the contrac t = 1 - probability of completing the contract = 1 - 0.92 = 0.08,
Expec ted value = Probability x Impact = 0.08 x (-10,000) = -800 (remember that since impac t is a penalty
hence the negative value)

PV = $ 1,700; BAC = $ 5000; EV = $ 1,800; AC = $ 1,600; your management has not approved your forec ast.
What is To complete performance index (TCPI)?
A. 0.94
B. 0.89
C. 1.25
D. 1.0625
Since budget is not approved we need to use TCPI using BAC. That is TCPI using BAC = (BAC-EV) / (BAC-AC)
= [(5000-1800) / (5000-1600)] = 0.94

What is monitoring c ost performance to detect and understand c ost variances from the plan called?
A. Estimate Cost
B. Control cost
C. Determine budget
D. Earned value management
A) Cost estimation refers to making an estimate of the costs to be incurred in completing the project and it’s
not the right answer
B) Choice B is the correct answer. Cost control refers to monitoring performance to detect and understand
cost variances from the plan.
C) Choice C is not correct bec ause cost budgeting is allocating overall cost estimate to individual work
ac tivities
D) Earned value management is a method of evaluating project performance by relating cost of planned work
(as sc heduled), cost of ac tual work (as ac hieved), and the earned value (budgeted cost for work performed)
and Choice D is incorrect

A project has the following risks: 20% probability of a 14 day delay in the receipt of customer requirements; 10%
probability of a 21 day delay in the procurement process; 50% probability the integration will take 14 days longer.
What is the expec ted value of these events?
A. 11.9 days
B. 35.8 days
C. 49 days
D. Seven days
EMV for customer requirements = 20% * 14 days = 2.8 days
EMV for proc urement process = 10% * 21 days = 2.1 days
EMV for integration = 50% * 14 days = 7 days
Total EMV = 2.8 + 2.1 + 7 = 11.9 days

The projec t manager typically spends the most amount of time to in which of the following ac tivity?
A. Communication
B. Proc urement
C. Budgeting
D. Team Negotiations
A It’s been said that project managers spend 90% of their time in c ommunication
B Choice B is incorrect
C Choice C is incorrect
D Choice D is incorrect

Kimberly is calculating the annual depreciation of a forklift used on her projec t. The forklift has a book value of
$30,000 and the depreciation rate is 7%. What is the annual depreciation expense?
A. $27,900
B. $2,100
C. $700
D. $428
The formula for this question is as follows:
book value x deprec iation rate
$30,000 x .07 = $2100

Which of the following is not a characteristic of a project risk event?
A. It has a cause.
B. The event, if oc curs, has a consequence.
C. It impacts the project objectives.
D. Probability of occurrence is zero.
Project risk is an event or condition, which has a cause and if it oc curs, a consequence. We are concerned
with those risk events that have consequences on the project objectives, whether positive or negative. The
origin of risk is in the uncertainty element of projec ts and therefore the probability that the risk event would
oc cur is always more than zero.

Status meetings should be held at least:
A. Once a year
B. Once a week
C. Every day
D. As little as possible
A) Answer A is incorrec t bec ause If you space meetings out any longer than this, you might overlook problems
that need to be handled promptly
B) Answer B is correct, once a week, easy to monitor and c ontrol project
C) Answer C is incorrec t. The only time that daily meetings are required may be at the beginning of the
project when the project team members are getting to know eac h other
D) Answer D is incorrec t status meetings should be held at least in a week

Which of the following would be deployed for ac hieving continuous improvement in projec t product creation and
project management proc esses?
A. Quality audit
B. Quality planning
C. Quality control
D. Project management office
A) Quality audit is a structured review of existing processes for product creation and project management
prac tices. Audits identify lessons learned on what works and what does not, and are used for making
rec ommendations for improvement.
B) Quality planning is a proc ess of identifying and establishing the quality policy for the project and relevant
standards.
C) Quality control is the proc ess of checking the compliance of ac tual work results as compared to specified
requirements and provides inputs to the quality assurance proc ess.
D) Projec t management office brings together the best prac tices for project management and it provides
templates for project management.

Which of the following skills would be considered "hard" skills?
A. Negotiation skills
B. Soc ial skills
C. Technical skills
D. People skills
The correc t answer is C, tec hnical skills are considered "hard skills". People skills and social skills are referred
to as "soft skills".

You are in the proc ess of contrac t closure. Now, your foc us is to chec k if all the work is completed c orrectly and
as per the needs of the customer. Which of the following ac tivities are you performing?
A. Financial Closure
B. Lessons Learned
C. Product Verification
D. Stakeholder Management
Choice A is incorrect. Financial Closure involves making final payment and c ompleting the cost records.
Choice B and D are incorrec t. Lessons learned and Stakeholder Management is not part of the contrac t closure
proc ess.
Choice C is correct. Product verification is an ac tivity for checking if all of the work is completed c orrectly as
per the needs of the customer.

The projec t team is executing the work pac kages of your project when a serious disagreement regarding the
interpretation of the sc ope is brought to your attention by your most trusted team member. Your project sponsor
also has a different opinion. How should this dispute be resolved?
A. The dispute should be resolved in favor of the project sponsor.
B. The project team should have a meeting to dec ide on the proper resolution.
C. The dispute should be resolved in favor of the customer.
D. The project manager should consult the projec t plan for guidance.
Executing - Scope Management
According to the PMBOK, disagreements should always be resolved in favor of the customer.

You have been tasked with managing the seller responses to a request for proposal issued by your company. The
seller responses were numerous, and now you have been asked to rank the proposals from highest to lowest in
terms of their response. What are you going to use as a means to rank the sellers?
A. Expert judgment.
B. Request for quotation.
C. Seller response guidelines.
D. Seller selection matrix.
By this time you should be thinking that if you see "expert judgment", it is likely the right answer. Expert
judgment is a favored technique in project management, and it is correc t in this case because you are
conducting the Conduct Procurements process. It is the only tool/technique among the potential answers that
is a part of that process.

You are through with creating an RFP and are now required to sec ure quotations. There are several sellers for the
spec ific sc ope but the project has limited time and resources. What should he do next, for securing quotations
against the RFP?
A. Choose the prospec tive sellers recommended by another colleague
B. Consult the senior management and leave it to them to prepare the list
C. Refer to the qualified seller list and source selection criteria to make a decision
D. Put an advertisement in a local newspaper
A) Choice A is incorrect bec ause making a dec ision based on recommendations from a colleague is not a
systematic approac h.
B) Choice B is incorrect. The project manager's responsibilities include delivering all aspects of the project and
hence solicitation work should not be taken up to senior management.
C) Limited time and resources imply constraints in inviting and evaluating several quotations / bids. A systemic
approach would be to pre-sc reen vendors, by following the organization's approved vendor list for such
proc urement. The qualified sellers list along with the source selection criteria will allow you to make a dec ision
quickly and objec tively.
D) Choice D is incorrect as advertising is used for enhancing prospective seller list and in the stated
circumstances of limited resources and time, this may not be appropriate.

A sc hedule performance index (SPI) of 0.76 means:
A. You are over budget
B. You are ahead of sc hedule
C. You are behind schedule
D. You are only progressing at 24 percent of the rate originally planned
An SPI greater than 1 means that you are ahead of sc hedule, but an SPI less than 1 means that you are
behind sc hedule.

Which of the following could be a deliverable from an administrative closure of a project?
A. Project archives
B. Staffing management plan
C. Communications management plan
D. Risk management plan
Choice A is the correct answer, Project Archives are deliverables from administrative closure. The other
choices listed are deliverables from various planning group processes.

A project was estimated to cost $1.5 million and scheduled to last six months. After three months, the earned
value analysis shows the following: EV = $650,000, PV = $750,000, and AC = $800,000. The sc hedule and c ost
variances are:
A. SV = - 100,000 / CV = - 150,000
B. SV = 100,000 / CV = 150,000
C. SV = $100,000 / CV = 150,000
00,000
D. SV = $150,000 / CV = 1
SV = EV - PV = 650,000 - 750,000 = -100,000
CV = EV - AC = 650,000 - 800,000 = -150,000
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