Project Management Quiz

Correct
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1.Project charters typically include all of the following elements EXCEPT:
positive and negative risks
project assumptions
detailed resource requirements
project constraints
Correct
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2.A well-written business case should persuade decision-makers to support the
project.
True
False
Correct
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3.The project charter serves all of the following purposes EXCEPT:
authorizes the project manager to proceed
develops a common understanding between the sponsor and the project team
quickly screens out obviously poor projects
describes skill sets needed for the project
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4.What are two main actions in the initiating phase of a project?
creating the work breakdown structure
selecting the project manager
developing the project charter
documenting the stakeholder register
Correct
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5.Which of the following documents serves as an informal contract between the
project team and the project sponsor
 team members’ employment contracts
project charter
project roadmap
business case
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6.One purpose of the project charter is to help the project team and sponsor
commit to the project.
True
False
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7.Which is an example of a pre-initiation task?
Drawing up a work breakdown structure
Developing a business case for a project
Feedback: It is good practice to lay the groundwork for a project before it officially starts. Senior
managers often perform several tasks, sometimes called pre-initiation tasks which include the
development of a business case for a project
Correct
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8.Which of the following charter elements defines the project purpose and
justifies the necessity of the project?
scope control plan
acceptance criteria
business case
scope overview
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9.The project charter should help the project team and the project sponsor to
develop a common understanding of what the project is all about. All of the
following items are elements of that common understanding EXCEPT:
understanding how the project aligns with the goals of the organization
understanding the detailed project schedule
understanding project success measures
understanding what is included and excluded
Correct
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10.Risks, assumptions and constraints are included in the project charter so that
key participants will be aware of what could prevent them from successfully
completing the project.
True
False

Correct
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1.In a bottom-up estimate, the size of the individual work items is one of the
factors that drives the accuracy of the estimates.
True
Feedback: The size of the individual work items and the experience of the estimators drive the
accuracy of the estimates. Using smaller work items increases the accuracy of the cost estimate
because the people assigned to do the work develop the cost estimate instead of someone
unfamiliar with the work.
False
Correct
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2.Soles is a footwear company which has recently set up its store in Ambrosia. To
manufacture its products, Soles incurs a range of different costs. Which would be
an example of an indirect cost?
Cost of machines to produce shoes
Salary paid to factory workers
Electricity used to run its factories
Feedback: Indirect costs are not directly related to the products or services of the project, but are
indirectly related to performing the project. For example, indirect costs would include the cost of
electricity, paper towels, and other necessities in a large building that houses 1,000 employees who
work on many projects.
Cost of leather used to manufacture shoes
Correct
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3.Newtech Inc. hires John for the position of a software programmer to work on
their new project. Salary paid to John by Newtech Inc. would be an example of
which type of costs?
direct
Feedback: Direct costs can be directly related to creating the products and services of a project. For
instance, direct costs include the salaries of people working full time on a project.
indirect
sunk
intangible
Correct
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4.Good Earth, a company manufacturing packaged food products, sets up its
stores in Baltonia. However, a year later, the company closes the store down due
to high operating costs. In such a scenario, the money spent in paying for the
rent of the store in Baltonia would be an example of which costs?
recurring
direct
sunk
Feedback: Sunk cost is money that has been spent in the past. When deciding what projects to
invest in or continue, one should not include sunk costs.
intangible
Correct
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5.Which statement is true regarding indirect costs?
directly related to performing the project.
those that cannot be allocated to projects.
those that can be easily controlled by managers.
not directly related to the products or services of a project
Feedback: Indirect costs are not directly related to the products or services of the project, but are
indirectly related to performing the project.
Correct
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6.Which type of estimate uses the actual cost of a previous, similar project as the
basis for estimating the cost of the current project?
definitive estimates
parametric estimates
bottom-up estimates
analogous estimates
Feedback: Analogous estimates use the actual cost of a previous, similar project as the basis for
estimating the cost of the current project. This technique requires a good deal of expert judgment
and is generally less costly than other techniques, but it is also less accurate.
Correct
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7.Which costs are difficult to measure in monetary terms?
Intangible costs
Feedback: Feedback: Intangible costs or benefits are difficult to measure in monetary terms.
Direct costs
Tangible costs
Fixed costs
Correct
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8.Estimates should become more accurate as time progresses.
True
Feedback: Estimates are usually done at various stages of a project and should become more
accurate as time progresses.
False
Correct
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9.Which statement is true of an order of magnitude estimate?
It is used to allocate money into an organization’s budget.
It provides an estimate of what a project will cost.
Feedback: A rough order of magnitude (ROM) estimate provides an estimate of what a project will
cost. This type of estimate is done very early in a project or even before a project is officially started.
Its timeframe is always less than a year prior to project completion.
It is a type of estimate that is done in the final stages of a project
Correct
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10.What type of estimate is a cost estimation tool used to allocate money into an
organization’s budget?
budgetary
Feedback: A budgetary estimate is used to allocate money into an organization’s budget. Budgetary
estimates are made one to two years prior to project completion.
definitive
rough order of magnitude
ballpark