PROJECT MANAGEMENT CONCEPTS

1. A project is an endeavor to accomplish a specific objective through a unique set of

nonrelated tasks and the effective utilization of resources.
FALSE
2. The outcome of a project is a tangible end product.
TRUE
3. The level of effort is the same for all four phases of the generic project life cycle.
FALSE
4. Globalization changes the dynamics of a project and adds a layer of complexity that
can reduce the risks of accomplishing the project outcome.
FALSE
5. The amount the sponsor has agreed to pay for acceptable project deliverables is the
project budget.
TRUE
6. A project is an endeavor to accomplish a specific objective through a unique set of
interrelated tasks and the effective utilization of resources.
TRUE
7. A satisfied customer is a benefit of implementing project management techniques.
TRUE
8. A project may have an unlimited time frame.
FALSE
9. A project involves degree of uncertainty that remains the same as the project
progresses.
FALSE
10. A project’s stakeholders will always include only representatives from the sponsor’s
organization.
FALSE

1. Which of the following is not an example of a project?

a. Raising money for a disaster relief trip
b. Emptying the recycling everyday
c. Starting-up a restaurant
d. Creating a website for a company

2. Projects are identified and selected in the

a. planning phase.
b. initiating phase.
c. closing phase.
d. performing phase.

3. A project team is contacted by a stakeholder about a concern related to their project,

the project team should
a. ignore the concern because one stakeholder is not important.
b. share the concern with all the other stakeholders to see if they agree.
c. communicate with the stakeholder individually to deal with the concern.
d. send a mass email to all stakeholders to let them know the project is on time and
under budget.

4. The stakeholder register is a convenient tool to keep

a. all stakeholder information consolidated and up-to-date.
b. lessons learned.
c. stakeholders at a distance from the project.
d. all communications open to all stakeholders.

5. Costs for resources on a project could include all the following except
a. rental of facilities
b. salaries of people who will work on the project
c. fees for subcontractors to perform project tasks
d. costs for equipment that extends beyond the project time

6. While performing the work, all the activities in the baseline plan must be performed in
accordance to
a. what the person responsible for the activity wants.
b. lesson learned from prior projects.
c. the project schedule and technical specifications.
d. how the sponsor has completed all their projects in the past.
7. The project budget is based on
a. the costs to do the resources before any indirect costs.
b. the actual costs of the resources used for the project.
c. the estimated costs associated with the quantities of resources to be used.
d. how well the project manager can use accounting software.

8. The following mechanisms help to assure quality expectations are met:

a. Inspections only at the end of the project.
b. Audits, inspections, and standards throughout the project.
c. No mechanisms are needed to assure quality.
d. Only a list of standards is needed at the start of the project

9. Projects documents are organized and archived in the

a. closing phase.
b. planning phase.
c. performing phase.
d. initiating phase.

10. The list that includes key contact information, role or specific topics of interest,
expectations, any known issues, and areas of potential influence for each stakeholder is
known as the
a. stakeholder register.
b. lessons learned list.
c. list of prior projects.
d. project technical specifications.

IDENTIFYING AND SELECTING PROJECTS

1. An RFP must indicate the funds the customer has available to spend on the project.
FALSE
2. A good RFP allows contractors or a project team to understand what the customer
expects.
TRUE
3. Surveys of stakeholders can be used to gather only quantitative data.
FALSE
4. The RFP should state the acceptance criteria the customer will use to determine if
the project deliverables are completed according to the customer’s requirements.
TRUE
5. A contract might be for time and materials, in which case the customer will pay the
contractor a fixed amount regardless of how much the work actually costs the
contractor.
FALSE
6. All projects require a project charter to start the project.
FALSE
7. The success criteria in the project charter indicate the expected benefits of the
project including what the expectations are for project success.
TRUE
8. Project approval requirements state when the sponsor wants to review the progress
of the project and make decisions about moving to the next phase.
TRUE
9. If the project manager is selected in the initiating phase of the project, then the
project manager is likely to participate in the development of the project charter for the
project.
TRUE
10. Part of preparing a request for proposal is soliciting the request to potential bidders
on the project.
TRUE

1. The building constructed will have at least R-38 insulation rating for the ceiling and R-
28 for the walls. This is an example of the <?> in a project charter.
a. success criteria and expected benefits
b. project objective
c. acceptance criteria
d. project description

2. The project title should

a. state what is expected to be accomplished.
b. state the major end products or items expected to be produced.
c. summarize the need and justification for the project.
d. be concise and create a vision for the end result of the project.

3. An assumption for a construction project could be

a. a grant will be secured to help fund the project.
b. the size of the building that is to be constructed.
c. the regulations and codes required for the building.
d. the materials to be used to construct the building.

4. The implementation of the new procedure is expected to reduce costs of production

by 10% over the next year. This is an example of the <?> in a project charter.
a. project description
b. success criteria and expected benefits
c. acceptance criteria
d. project objective

5. A bidders meeting may be held to

a. provide additional information only to those that attend the meeting.
b. provide an unfair advantage to those at the meeting.
c. clarify the RFP and answer any questions from potential bidders.
d. solicit feedback on the clarity of the RFP to change the project requirements.

6. The project acceptance criteria should

a. state the major end products or items expected to be produced.
b. be concise and create a vision for the end result of the project.
c. state the quantitative criteria expected for the products to be accomplished.
d. summarize the need and justification for the project.

7. The project purpose should

a. be concise and create a vision for the end result of the project.
b. state the major end products or items expected to be produced.
c. summarize the need and justification for the project.
d. state what is expected to be accomplished.

8. The new employees are expected to receive P13 million of Fast Start training that will
be provided by a state workforce development grant. This is an example of the <?> in a
project charter.
a. key assumptions
b. success criteria and expected benefits
c. acceptance criteria
d. project description

9. The project objective should

a. state what is expected to be accomplished.
b. be concise and create a vision for the end result of the project.
c. state the major end products or items expected to be produced.
d. summarize the need and justification for the project.

10. The final decision of which projects to select is the responsibility of

a. community members.
b. the project evaluation team’s members.
c. the organization’s owner, president, or department head.
d. the project evaluation team.

DEVELOPING PROJECT PROPOSALS

1. The customer can terminate the contract according to requirements in the contract.
TRUE
2. Contractors interested in submitting a proposal in response to an RFP must be
realistic about the probability of being selected as the winning contractor.
TRUE
3. Indirect costs of doing business are included in proposals where the customer
permits the charging of indirect costs.
TRUE
4. If there is high risk for the success of a project, the contractor should include a cost-
reimbursement plan in their cost section if the RFP did not specify a contract type.
TRUE
5. If the RFP format requirement states a page limit, the customer can reject a proposal
that exceeds the page limit without any further review.
TRUE
6. It is ok to use foul language, slang, and jargon with clients. Especially when they are
using them.
FALSE
7. A customer uses a request for proposal to solicit bids and then award a
noncompetitive contract.
FALSE
8. The bid or no-bid decision is made on the capability to develop a quality proposal as
well as the capability to complete the project if the contractor wins the bid.
TRUE
9. Contractors may outsource some of the work to subcontractors or consultants to
perform certain project tasks.
TRUE
10. It is important to emphasize the unique features that differentiate the contractor from
other contractors.
TRUE
11. The reputation of the company that announced the RFP should be evaluated as a
factor as well as the reputation of the contractor when making a bid or no-bid decision.
TRUE
12. A contractor that is entering a similar but new field should plan a smaller profit to
increase chances of winning the project.
TRUE
13. The customer will make payments to the contractor according to the payment
schedule in the contract.
TRUE
14. Contracts for projects that are done for a foreign customer or are conducted in part
in a foreign country do not require the contractor to make certain accommodations.
FALSE
15. A bid/no-bid checklist helps a contractor to decide whether to submit a proposal in
response to an RFP.
TRUE
1. A contractor bidding on a fixed-price project must develop
a. a well-defined project with low risk.
b. techniques to control costs and reduce expenses to make a larger profit.
c. techniques to determine the cost-at-completion with actual expenditures.
d. accurate and complete cost estimates and include sufficient contingency costs.

2. When making contingency estimates, the contractor should

a. include a small amount for each possible issue.
b. include an amount for each issue that has high impact.
c. heavily pad the estimates to include every issue.
d. estimate the amount to mitigate high impact and probable issues.

3. Fixed-price contracts are most appropriate for projects that

a. take less than one year to complete.
b. are with customers that want a single payment date.
c. are well defined and entail little risk.
d. involve risk.

4. A way to foster trust is to

a. ask about upcoming RFPs a company is planning.
b. only contact the customer when planned.
c. get insider information about a company then share it with a competitor.
d. be reliable and responsive.

5. The win ratio approach gives

a. equal weight to proposals with larger dollar/peso amounts.
b. more weight to proposals with larger dollar/peso amounts.
c. equal weight to all proposals.
d. less weight to proposals with larger dollar/peso amounts.

6. Customers and partner organizations prefer to work with people they

a. know and trust.
b. know are very large with many employees.
c. have read about.
d. know are lean companies with few employees.
7. Total dollar/peso value approach gives
a. more weight to proposals with larger dollar/peso amounts.
b. equal weight to all proposals.
c. less weight to proposals with larger dollar/peso amounts.
d. equal weight to proposals with larger dollar/peso amounts.

8. Your company has been supplying a local company with warehouse management. A
proposed project requires warehouse management in 15 national locations. This is an
example of how the contractor could
a. extend its capabilities and expand its business to a larger customer base.
b. take on too much risk because they have only worked with a small company.
c. develop its proposal writing skills by bidding on the project.
d. hurt its local reputation by working on projects with other companies.

9. A BAFO requested by a customer is

a. a base accounting and finance office clarification from the contractor.
b. a best and final offer from the contractor.
c. a clarification request for broad, ambiguous, frivolous, and obscure aspects of the
proposal.
d. a best and first offer from the contractor.

10. The contractor should state its understanding of the customer’s need
a. in its own words with description of the customer’s current condition.
b. by including complex graphics to show expertise.
c. by restating the problem statement that appears in the RFP.
d. adding lots of information about other projects that are similar.

11. In <?>, the customer usually requires that, throughout the project, the contractor
regularly compares actual expenditures with the proposed budget and reforecasts cost
at-completion, comparing it with the original proposed price.
a. work agreements
b. cost reimbursement contracts
c. fixed price contracts
d. fixed agreements

12. Proposal preparation is completed by

a. one or more people depending upon the requirements of the proposal.
b. a proposal manager regardless of the project size.
c. a single person when proposing a multimillion-dollar/peso project.
d. a large team for a simple project.

13. It is advisable to build relationship with <?> in a client or partner organization.

a. several key people
b. one individual
c. the chief financial officer
d. the top ranking official

14. The contract must clearly spell out

a. the deliverables the contractor is expected to provide.
b. the level of risk acceptable by the contractor.
c. the number of contact hours the contractor must have with the customer.
d. the names of those responsible for tasks.

15. <?> establish the foundation for successful funding.

a. Public documents
b. Relationships
c. Research and records
d. Financial investments

DEFINING SCOPE, QUALITY, RESPONSIBILITY, AND ACTIVITY SEQUENCE

1. The work package includes all of the specific work activities that need to be
performed to produce the deliverable associated with that work package.
TRUE
2. The quality plan may also state that suppliers must provide documentation certifying
that the materials they supply meet certain required specifications.
TRUE
3. The project quality plan should state which tools and techniques to use and when.
TRUE
4. The project scope document is valuable for establishing a common understanding
among project stakeholders regarding the scope of the project.
TRUE
5. For large or complex projects, it may be difficult for one individual to determine all the
work elements to include in the work breakdown structure.
TRUE
6. Some activities in a network diagram may be done concurrently.
TRUE
7. Planning for quality is a necessary, yet often forgotten or dismissed, function on a
project.
TRUE
8. Activities define more generally than work packages how the work will get done.
FALSE
9. The focus must be on relying on after-the-fact inspections or testing and then do the
necessary work to correct quality problems.
FALSE
10. The inclusion of specifications or standards will help assure quality of the
deliverable.
TRUE
11. A project scope statement defines the sequence of how the activities will get done.
FALSE
12. The agreed-upon project scope document establishes the baseline for any changes
that may be made to the scope during the performance of the project.
TRUE
13. A detailed description of each deliverable will help to manage stakeholder
expectations.
TRUE
14. The work breakdown structure is the same thing as the project organization chart or
structure.
FALSE
15. Certain activities in a network diagram have to be done in serial sequence.
TRUE
16. The key to quality control is to wait until all the work is completed before checking or
inspecting for quality.
FALSE
17. Some projects have a set of activities that are repeated several times.
TRUE
18. For some projects, the terms of payment may be tied to the customer’s acceptance
of certain deliverables.
TRUE
19. With the quality plan in place including procedures for the application of appropriate
quality tools and techniques, quality can then be monitored and controlled.
TRUE
20. The network diagram can be created using a graphic chart format or as an
indentured list.
FALSE
21. It is easier to define the specific activities for near-term work; but as more
information is known or becomes clear, the project team can progressively elaborate the
specific activities.
TRUE
22. All branches of the WBS have to be broken down to the same level.
FALSE
23. The project manager should involve every project member in developing the WBS to
have special expertise, knowledge, or experience that will help develop a more
comprehensive and complete WBS.
FALSE
24. The work breakdown structure can include specifications regarding size, color,
weight, or performance parameters, such as speed, uptime, throughput, processing
time, or operating temperature range, that the project result must satisfy.
FALSE
25. The customer may hire an independent third party or laboratory to be its
representative or perform tests when checking the quality of a project deliverables.
TRUE
26. An activity, also referred to as a task, is a defined piece of work that consumes effort
by people and not necessarily time.
FALSE
27. The work breakdown structure subdivides the project into smaller pieces called work
items.
TRUE
28. An understanding of project deliverables would also be a setback to developing a
good working relationship with the customer.
FALSE
29. An activity does not necessarily require the expenditure of effort by people.
TRUE
30. Having the contractor or project team review the statement of work with the sponsor
or customer provides an opportunity to make sure everything that the customer expects
is included.
TRUE

1. The project scope document defines <?> in terms of the statement of work and
deliverables, and the WBS establishes the framework for to produce the project
deliverables.
a. what needs to be done, how the work will get done
b. who needs to get the work done, who will get the work done
c. how the work will get done, what needs to be done
d. who will get the work done, how it needs to be done

2. The <?> at a level of a high degree of confidence that all the activities that need to be
performed to produce the deliverable can be defined, the types and quantities of
resources can be determined, and the associated activity durations and costs can be
reasonably estimated.
a. resources assigned are
b. project scope is
c. applicable technical standards are
d. work packages are

3. It is important to document the detailed requirements in the <?> in order to establish

a clear understanding with the sponsor or customer.
a. work breakdown structure
b. network diagram
c. project scope document
d. statement of work

4. In the network diagram for the following list, what activity immediately follows activity
B?
Activity Immediate Predecessor
A -
B A
C A
D B,C
E D
F D
G E,F
H G
a. none, B is the starting activity
b. C
c. A
d. D

5. The <?> states the specific deliverable that is expected to be completed from the
work activities associated with each lowest level-work package.
a. WBS in a hierarchical graphic chart format
b. network diagram
c. responsibility assignment matrix
d. WBS in an indentured list format

6. Each box for an activity in a network diagram is assigned

a. a rational number.
b. a unique activity number.
c. the next number after its predecessor’s number.
d. an integral number.

7. To help assure quality, the project quality plan should contain written procedures for
a. scope creep.
b. using various quality tools and techniques, such as audits, inspections, testing,
checklists, and so on.
c. assigning resources to tasks to be sure they meet the acceptance criteria.
d. communicating with stakeholders about subcontractors.

8. Arrows linking the activity boxes in a network diagram show the <?> of the dependent
relationship.
a. requirement
b. direction
c. strength
d. time of the slack to start

9. The project objective must be clearly defined and agreed upon by the
a. stakeholders for the project.
b. sponsor or customer and the project team or contractor that will perform the project.
c. project team and subcontractors.
d. suppliers of materials to the project.

10. Although major or key deliverables may be stated in the project charter or request
for proposal, they need to be <?> in the project scope document.
a. repeated
b. listed in sequence with the responsible person or organization
c. expanded on in greater detail
d. stated at higher levels

11. Standard subnetworks should be developed for those portions of projects for which
a. repeat once or twice in the project.
b. take up too much space on the network diagram.
c. the logical relationships among the activities have been well established through
historical practice.
d. need to be fast tracked to get the project scheduled.

12. A change in responsibility, that is, a different person or organization takes over
responsibility for continuing the work, it should define
a. activities in the network diagram that must be completed serially.
b. predecessor activities in a network diagram.
c. the end of one activity and the start of other activities in the network diagram.
d. activities in the network diagram that that must be completed concurrently.
13. In the network diagram for the following list, what activity immediately follows activity
E?
Activity Immediate Predecessor
A -
B A
C A
D B,C
E C
F D
G E
H F
I G,H
J I
a. G
b. D
c. C
d. F

14. If something is <?> the statement of work, then it should be assumed that <?>.
a. left out of, will be completed during the project.
b. missing from, if the RFP stated the requirement is will be completed.
c. included, it will not change during the course of the project.
d. not included in, it will not be done or provided.

15. A <?> is a hierarchical decomposition of the project work scope into work packages
that produce the project deliverables.
a. statement of work
b. project scope document
c. network diagram
d. work breakdown structure

16. The WBS is <?> of deliverables or end items that will be accomplished or produced
by the project team or contractor during the project.
a. a hierarchical tree
b. network diagram
c. serial list
d. control system
17. The project scope is all the work that must be done to do all of the following except:
a. produce all the project deliverables.
b. accomplish the project objective.
c. satisfy the sponsor or customer that all the work and deliverables meet the
requirements or acceptance criteria.
d. meet with every stakeholder.

18. A change control system needs to be established to define how

a. the acceptance criteria are evaluated.
b. changes will be documented, approved, and communicated.
c. changes will be made.
d. the quality plan is applied.

19. The <?> shows all the individuals associated with each work item in the work
breakdown structure, as well as all the work items associated with each individual.
a. responsibility assignment matrix
b. project scope document
c. work breakdown structure
d. network diagram

20. It is important to plan for <?> in performing the project to assure that the work is
done according to specifications and applicable standards and that deliverables meet
acceptance criteria.
a. quality
b. time
c. scope creep
d. resources

DEVELOPING THE SCHEDULE

1. Project management is a proactive approach to controlling a project to ensure that
the project objective is accomplished, even when things do not go according to plan.
TRUE
2. At the beginning of every project, it is possible to estimate the durations for all
activities with a high level of confidence regarding their accuracy.
FALSE
3. If the total slack is zero, the activities on the path do not need to be accelerated but
cannot be delayed.
TRUE
4. The estimated duration for an activity must be based on the estimated quantity of
resources required to perform the activity.
TRUE
5. Padding estimates with the vision of becoming a hero when the activities are
completed in less time than estimated is not a good practice.
TRUE
6. A Gantt chart is the often the name for the network diagram tool for planning and
scheduling.
FALSE
7. The project team can progressively elaborate the estimated durations as more
information is known or becomes clear to allow for more accurate estimated durations.
TRUE
8. The estimated duration should be aggressive, yet unrealistic.
FALSE
9. Throughout a project, changes may occur that have an impact on the schedule.
TRUE
10. The amount of slack should determine the priority with which these concentrated
efforts are applied.
TRUE
11. An updated project schedule can be generated regularly that forecasts whether the
project will finish ahead of or behind its required completion time.
TRUE
12. The estimated activity resources will also be used later for estimating activity costs
and determining the project budget.
TRUE
13. The project control process starts with establishing a baseline plan that shows how
the project scope will be accomplished on schedule and over budget.
FALSE
14. Changes might be initiated by the customer or the project team, or they might be the
result of an unanticipated occurrence.
TRUE
15. The estimated resources required for an activity will influence the estimated duration
to perform the activity.
TRUE
16. When the customer requests a change, the contractor or project team should
estimate the impact on the project schedule and budget and then go ahead with the
work without customer approval.
FALSE
17. Changes requested early in the project always have less impact on schedule and
budget than if they are requested later in the project.
FALSE
18. A consistent time base, such as hours or days or weeks, should be used for all the
estimated durations of activities in a network diagram.
TRUE
19. The latest finish time for a specific activity must be the same as or earlier than the
earliest of all the latest start times of all the activities emerging directly from that specific
activity.
TRUE
20. The contractor may not want to commit to completing the project by a specific date
until the customer has approved the contract.
TRUE