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7/18/23, 2:20 PM PMP - test Flashcards - Cram.com
. In initiating a contract, the primary focus is on

obtaining a product or service without regard for
the termination. The contract for goods or services
should have a termination provision (after
successful completion) that ________.
A. fixes on a date that designates completion
B. permits adjustments to the perceived
Answer: C
termination, when necessary
C. requires a specific action on the part of the
seller and the buyer
D. requires the seller to demonstrate the product's
capability
E. requires the buyer to formally accept the product
on a specific date
. The language of contracts does not preclude

misunderstanding and situations that adversely
affect project completion. Therefore, a contract
should always have a method of removing the
obstacles to progress. One method is to form a
________ committee to address matters that the
project manager and the customer's representative Answer: B
cannot handle.
A. top management
B. disputes resolution
C. problem processing
D. steering
E. none of the above
It is important to review the performance of

subcontractors during post-contract evaluations.
This review establishes the baseline for ________.
A. payment of current bills and incentive bonuses
Answer: B
B. demonstrated performance and future potential
C. future pricing and costs
D. work measurement and work standards
. Project contracts can be separated into two broad

categories
A. how the work is to be performed; who will
perform the work
B. what procedures are to be used; how the work
will be performed
Answer: D
C. when the work is to be performed; what
performance standards will be used
D. what the contractor (seller) is to provide; how
the work is to be performed
E. who may be used to perform the work; the
procedures to be used
. In a cost-reimbursable contract, the owner (buyer)

accepts most of the ________. Therefore, the
owner has more input as to how the work is
accomplished as compared to a fixed price
contract.
A. risk and exercises more control over the project
Answer: A
B. cost and has a greater interest in the schedule
C. design work and influences the end product
D. project management and daily direction of the
work force
E. planning function and cost disbursements for the
project
. During the proposal and bidding phase, the owner

(buyer) must assess the capability of the contractor
(seller) to perform the work. For example, if the
owner believes the proposed team consists of
some individuals who do not have the requisite
qualifications and suggests that these individuals
be replaced, the contractor should ________.
A. disregard the owner's suggestions unless it
precludes the contractor from obtaining the
contract
B. immediately make changes to follow the owner's
Answer: C
suggestions although the contractor believes the
replacements are less qualified
C. discuss the suggestions with the owner and
clarify the qualifications of individuals prior to
making a change
D. tell the owner that personnel working on the
contract are not his/her responsibility and make no
changes
E. tell the owner that the individuals will be
replaced and ignore the situation (the owner is not
responsible for personnel selection)
The contractor (seller) accepts all liability for

engineering errors, poor workmanship, and
consequential damages under a(n) ________
contract.
A. letter Answer: D
B. incentive fee
C. cost-plus
D. fixed price
E. variable production
. Contracting for project work follows a set

sequence of activities that ensures a favorable
contracting strategy. The sequence of contracting
activities includes the following
A. receive proposals; evaluate proposals; select
winner
B. prepare proposals; submit proposals; select
Answer: D
bidder
C. prepare proposals; receive proposals; review
proposals
D. receive invitation for bid; review invitation for
bid; submit bid
E. prepare proposals; review proposals; submit
proposals
Contractor screening is important to ensure that

candidates are capable of performing the work and
the number is neither excessive, which will make
the proposal evaluation process difficult, nor too
few, which will minimize the competition. The four
key items to be used in contractor screening are
Answer: A
________.
A. capacity, experience, capability, and interest
B. capital, capacity, experience, and location
C. experience, interest, financial stability, and skills
D. facilities, capital, capacity, and capability
E. industry, experience, risk, and cost
A request for proposal (RFP) is used to

A. establish a project master plan.
B. establish project baselines.
C. create project budgets. Answer: E
D. solicit bids from contractors.
E. maintain control over unauthorized work
changes.
. When invitations for bid are issued to the

contractors, the bids (proposals) must be submitted
in a standard format because ________.
A. the owner (buyer) has a format that he/she
routinely uses and wants to force the contractors to
meet his/her requirements
B. the Uniform Commercial Code specifies that all
proposals will comply with the law and the standard
format
Answer: E
C. the government has specified that proposals
must meet the requirements of contract law and
this assures the incorporation of all items
D. the Association of Contractors has prescribed
the format to which all bidders must comply to
meet a legal proposal
E. it gives the greatest assurance that all items are
covered and the proposals can be evaluated in a
uniform manner
Submission of proposals to perform work is the

avenue for acquiring most projects. The proposals,
when submitted, must contain specific items to
obligate or bind the tendering organization. The
most important item is ________.
A. the complete description of the work to be
Answer: C
performed
B. the list of terms and conditions
C. the signature of a corporate officer
D. a statement of work that describes how the work
will be accomplished
E. a price for the complete work to be performed
The most critical aspect of selecting a contractor

and awarding a contract is the proposal evaluation
(or bid review) process. The evaluators must be
aware of the need to balance fact versus judgment,
objective versus subjective reasoning, work tasks
versus costs, time versus price, and ________. Answer: D
A. certainty versus uncertainty
B. quality versus cost
C. quality versus price
D. risk versus opportunity
. Contracting is a means of obtaining required

goods and/or services that are required to meet the
needs of a project. The contract defines the legal
relationship between the participants and what
each participant is expected to do before the
contract can be concluded. The contract also forms
a ________ in which the participants strive to work
toward the common goal of successfully Answer: A
completing the legal obligations in the most
efficient manner.
A. union
B. partnership
C. consortium
D. single team
E. situation of opposition
. The proposal preparation is in itself a short-term

project that requires intense effort to be completed
in the owner's (buyer's) format and time frame,
while being responsive to the requirements of the
formal invitation for bid. A company bidding for
projects can ease the workload and enhance the
potential for successfully "winning" contracts by
Answer: E
________.
A. appointing the proposal manager early in the
process
B. identifying a proposal staff early in the process
C. having a technical information data base
D. having standard scopes of services
E. all of the above
Similar to a small project, the proposal preparation

process is started by a ________ meeting where
the technical, legal, and compensation
considerations are reviewed and assignments of
responsibility are made.
Answer: C
A. preliminary proposal
B. planning and approval
C. kickoff
D. technical assessment
E. staff assignment
. When entering into a contract, it is often assumed

that the performance of the work will be as
specified and no disputes will be raised during the
performance period. On the contrary, it is better to
assume that there will be disputes and include a
procedure in the contract as to the means for
dispute resolution because ________.
A. contracts, by their very nature, create situations
where disputes will arise, but they can be easily
resolved with good procedures
Answer: A
B. the tracking of claims is important for the best
"win" position during the subsequent litigation
C. disputes must be brought before the National
Contract Arbitration Board to obtain equitable
resolution
D. there will be a hostile relationship between the
contract participants once the contract is signed
E. it is more economical to resolve disputes as
soon as claims are made and before time and
effort are wasted
. A contract is a promise to do or not do something

in exchange for some form of consideration. A
negotiated contract is one where both participants
agree on the basis for principal considerations
A. the period of performance and the specifications
for the project
B. how the work will be performed, at what time,
and for what price Answer: C
C. the services to be rendered by one party and
the price to be paid by the other party
D. who will perform the work and who will pay for
the work
E. the description of services to be rendered and
the description of the payment and payment
schedule
In abstract theory, a contract is not essential to the

performance of a project. Contracts are, however,
useful when the performance involves ________ ,
particularly when they are interdependent.
A. personnel, money, and material
Answer: D
B. cost, schedule, and quality
C. new, unique, and complex work
D. substantial, complex, and extended
commitments
E. subcontractors, vendors, and suppliers
When making the project procurement plan, the

project manager should consider all of the following
EXCEPT
A. Preliminary cost estimates
Answer: D
B. Market conditions
C. Project funding availability
D. Application area extensions
E. Product descriptions
. Procurement documents should have all of the

following attributes EXCEPT
A. Facilitating accurate and complete responses
B. Including a complete statement of work Answer: D
C. Describing the desired form of response
D. Including the list of potential
bidders/respondents
A request for bid differs from a request for proposal

in that the
A. RFP is used when source selection will be price
driven
B. RFP is used when the project time-frame is
Answer: C
limited
C. RFB is used when source selection will be price
driven
D. RFP disregards price considerations
E. RFB is concerned with price exclusively
. Contract administration change requests may

include all of the following EXCEPT
A. Modifications to the terms of the contract
B. Termination of the contract if the seller's work is
unsatisfactory Answer: D
C. Modification to the description of the product or
service to be provided
D. Seller invoices
E. Contracted changes
Which of the following is true about the advertising

in the solicitation process? I. It is sometimes
required on public projects II. It is an effective
method of expanding the list of potential bidders III.
It can cause public pressure resulting in bid
disputes Answer: C
A. I only
B. Ii only
C. I and II only
D. I and III only
E. I, II, and III
Which type of contract provides the highest risk to

the Owner (Buyer)?
A. Cost Plus Percentage of Cost
B. Cost Plus Fixed Fee Answer: A
C. Firm Fixed Price
D. Fixed Price Plus Incentive Fee
E. Cost Plus Incentive Fee
In negotiations, what is a fait accompli tactic?

A. Accomplishing the phase before the other side is
ready
B. Pretending to accept the other side's offer
C. Claiming an issue has already been decided on Answer: C
and cannot be changed
D. Acting in good faith
E. Promising that a requirement will be completed
before it is due
An expressed warranty
A. Is provided by the sales manager
B. Is a statement of the characteristics of the
product
Answer: B
C. Covers a longer period than the implied
warranty
D. Is the best guarantee to the buyer
E. Can be sold separately
The project's contractor payment system should

include
A. An administrative review
B. The contractor submission Answer: D
C. A review of work performed
D. Negotiations over price
E. A viable account payable system
The contract administrator should provide

___________ at formal closure of project I. Formal
notice of project completion to the contractor II.
Letters of commendation to all project staff III.
Formal notice of acceptance to the contractor IV.
Internal notice to senior management/buyer Answer: C
A. I only
B. IV only
C. I and III only
D. II and IV only
E. I, III, and IV only
Which type of contract should be used for a well-

defined project
A. Unit price contract
B. Fixed price contract
Answer: B
C. Cost reimbursable contract
D. Partnership contract
E. A unit price contract that disallows such
contracting
Contract close-out documentation includes all of

the following EXCEPT
A. Technical documentation
Answer: C
B. Financial documents
C. The RFP or RFB and seller's working proposal
D. Results of contract-related inspections
. Potential contract changes should be

A. Postponed as long as possible to protect the
budget
B. Viewed as negative, quantified, and tabulated
Answer: C
C. Quantified and fed back through the project
planning and procurement processes
D. Reviewed by senior management and the buyer
E. Submitted for bids to the relevant vendor list
The purpose of a procurement audit is to do all of

the following EXCEPT
A. Maintain a complete file of contract-related
records
B. Determine if all required work has been
completed
Answer: A
C. Determine if the bid documents used were
effective
D. Determine if the contract change control system
was effective
E. Identify successes and failures and their
implications
When the procurement item is available from only

one supplier, all of the following evaluation criteria
should be identified and documented to support an
integrated assessment EXCEPT
A. Management approach Answer: E
B. Financial capacity
C. Life cycle cost
D. Technical capabilities
E. Mode of delivery
All of the following methods are available to the

project manager for short-listing contract proposals
EXCEPT
A. Comparing proposals against independent
estimates Answer: D
B. Weighting systems
C. Subjective screening systems
D. Resource distribution system
E. Negotiation
Which terms are used to describe contested

changes when the seller and project management
team disagree on compensation for the change? I.
Appeals II. Mediation III. Claims IV. Disputes V.
Arbitration
Answer: D
A. I and III only
B. II and IV only
C. IV and V only
D. I, III, and IV only
E. II, III, and V only
FFP is an acronym for

A. Free Flow Performance
B. Fundamentally Fixed Price
Answer: C
C. Firm Fixed Price
D. Free Form Project
E. Fixed File Procurement
The buyer has negotiated a cost-plus-incentive fee

contract with the seller. The contract has a target
cost of $300k, a target fee of $40K, a share ration
of 80/20, a maximum fee of $60K, and a minimum
fee of $10K. If the seller has actual costs of $380K,
how much fee will the buyer pay? Answer: E
A. $104K
B. $56K
C. $40K
D. $30K
E. $24K
Which of the following terms is an expression by

one party of its assent to certain terms in the
contract provided that the other party expresses its
assent to the identical terms?
A. Proposal Answer: D
B. Counter-offer
C. Bargain
D. Offer
E. Exchange
Which term describes the failure by either the

buyer or seller to perform part or all of the duties of
a contract?
A. Termination of contract
Answer: C
B. Partial performance
C. Breach of contract
D. Contract litigation
E. Contract waiver
Which of the following practices is NOT an

important element of effective contract
administration?
A. Preparing contract change documentation
B. Processing payment vouchers Answer: C
C. Establishing the appropriate contract type
D. Implementing a contract change control system
E. Preparing monthly contract status reports for the
buyer
When actual costs exceed estimated costs without

any change in the scope of work, the project is
experiencing
A. Accelerated costs
Answer: D
B. Cost growth
C. Schedule compression
D. Cost overrun
E. Cost risk
Contract type selection is dependent on the degree Answer: A

of risk or uncertainty facing the project manager.
From the perspective of the buyer, the preferred
contract type in a low-risk situation is
A. Firm-fixed-price
B. Fixed-price-incentive
C. Cost-sharing
D. Cost-plus-fixed fee
E. Cost-plus-a-percentage-of-cost
Generally speaking, compensation to a contractor

in a cost contract is based on
A. Actual costs incurred based on the contractor's
best efforts
B. The amount of time required to complete the
contract Answer: A
C. Delivery of the goods and services stipulated in
the contract
D. The number of resources used
E. Actual costs incurred minus profit if the cost
ceiling was exceeded
The process of monitoring contract performance,

making payments, and awarding contract
modifications occurs during
A. The pre-award phase
Answer: C
B. The award phase
C. Contract administration
D. Contract formation
E. Contract resolution
Which term describes those costs that are

traceable to or caused by a specific project work
effort?
A. Variable
Answer: B
B. Direct
C. Indirect
D. Fixed
E. Semi-variable
Subcontracting may be the best option when

A. The subcontractor possesses special technical
or engineering skills
B. The performing organization possesses limited
capacity in an area
Answer: E
C. The subcontractor can augment the contractor's
labor force at a lower cost than an in-house
capability can be maintained
D. A and C
E. A, B, and C
During negotiation, the seller takes exception to the

buyer's terms and conditions and proposes
different terms and conditions. Which negotiation
technique is the seller using?
A. Recommendation Answer: E
B. Rejection of offer
C. Separate offer
D. Suggestion
E. Counter-offer
Which of the following contract types places the

greatest risk on the seller to control costs?
A. Fixed-price with economic price adjustment
B. Fixed-price incentive (firm target) Answer: C
C. Firm-fixed-price
D. Cost-plus-award fee
E. Cost-plus-incentive fee
Which of the following contract types does NOT

encourage the seller to control costs and, as a
result, places the greatest risk on the buyer?
A. Cost-sharing
Answer: E
B. Cost-plus-award fee
C. Cost-plus-fixed fee
D. Cost-plus-incentive fee
E. Cost-plus-a-percentage-of-cost
The purpose of the bidders' conference is to

A. Ensure that prospective sellers have a clear,
common understanding of the buyer's
requirements
B. Confirm which bidders are going to be
considered in the procurement
Answer: A
C. Ensure that all qualified sellers are on the
qualified sellers list
D. Obtain detailed information on the prospective
sellers' past performance
E. Ensure that all bidders attending the conference
receive amendments
A specification that describes the buyers

requirements with special dimensions, tolerances,
or features, such as chemical or electronic
requirements and that is accompanied by
engineering drawings, is called a
Answer: A
A. Design specification
B. Functional specification
C. Performance specifications
D. Commercial standard
E. Qualified product
The language of contracts sometimes causes

misunderstandings and creates situations that
adversely affect project completion. Therefore, a
relatively fast and informal method for removing the
obstacles to progress should always be available.
One such method is to submit the issue in question
to an impartial third party for resolution. This Answer: B
process is known as
A. Cause of action
B. Alternative dispute resolution
C. Problem processing
D. Steering resolution
E. Mediation litigation
The legal contractual relationship that exists

between the buyer and the seller is called
A. Caveat emptor
B. Apparent authority Answer: C
C. Contract privity
D. Terms and conditions
E. Force majeure
Japanese quality control has improved dramatically

in the last 30 years for all of the following reasons
except
A. The use of quality control circles
B. Small, continuous improvements in quality
Answer: E
control
C. The use of worker suggestion systems
D. The use of quality control charts
E. Focusing quality control efforts on production
output
Quality management deals with all of the following

topics except
A. Conformance to requirements/specifications
B. Satisfying the needs of the customer Answer: C
C. Making Products more desirable and luxurious
D. A and C
E. B and C
Which of the following statements about the cost of

quality are true?
A. The cost of quality is the expense of
nonconformance to requirements and
specifications
B. The costs of quality are mostly the direct
responsibility of workers who are manufacturing Answer: A
the product
C. Quality control programs should only be
implemented when the costs of quality are
excessive
D. a and B
E. a and C
The zero defects concept

A. Is a performance standard for management
B. Is a motivational technique that promotes "doing
it right the first time".
C. Is used by management to communicate to all Answer: D
employees that everyone should do things right the
first time.
D. A and C
E. B and C
Quality assurance
A. Refers to the prevention of product defects
B. Is an auditing function that provides feedback to
the project team and Client about the quality of
output being produced
Answer: B
C. Is the technical process that includes the
construction of control charts which specify
acceptability limits for conforming output
D. A and B
E. b and C
Financial compensation is the primary motivational

tool for which of the following management
theories or programs?
A. Zero Defects program
Answer: B
B. Theory X management
C. Theory Y management
D. Quality Control Circles
E. A and C
In the project environment, the individual ultimately

responsible for quality control is
A. The line workers who must strive "to do things
right the first time' to avoid quality problems
B. The company's quality control manager who
must work with the project members to ensure the
quality control program is effective
Answer: D
C. The head of the production department who
retains ultimate quality control responsibility for all
the company's projects
D. The project manager who has ultimately
responsibility for the entire project
E. The customer who must ensure that he is
receiving a quality product from the vendor
An acceptance control chart has limits that are

based on the specification limits for the product
rather than limits which differentiate between
random and assignable causes. Under which of the
following circumstance should a QC manager
consider using an acceptance control chart?
A. When the engineering tolerance on a dimension
greatly exceeds the natural dispersion of the
Answer: E
manufacturing process
B. When the number of samples outside the
current control chart limits become too costly and
Cumbersome to investigate
C. When a process is subject to constant but stable
tool wear
D. A and B
E. A and C
The majority of product defects could be prevented

in most processes if manufacturers would do the
following
A. Increase the use of acceptance control charts
instead of standard three-sigma control charts
Answer: B
B. Make a concerted effort to eliminate the
potential for product defects in the design stage
C. Create a quality control department
D. A and B
E. A and C
Quality attributes
A. Are used to determine how effectively the
organization accomplishes its goals
B. Can be objective or subjective in nature
Answer: E
C. Are specific quality characteristics for which a
product is designed, built, and tested
D. A and B
E. B and C
Most quality problems

A. Originate in the quality department where the
ultimate responsibility for quality rests
B. Originate on the shop floor because of waste
and product rework
Answer: C
C. Are the result of management inattention to
potential quality improvement ideas
D. Could be eliminated if shop supervisors
monitored their workers more closely
E. A and B
The Pareto Principle is a technique used by quality

managers to determine which quality control
problems concerning a particular service or
manufacturing process should be corrected. Which
of the following statements best represents the
philosophy employed by this principle?
A. In order to minimize financial losses from quality
control problems, all problems which have a
measurable cost associated with them should be
corrected.
B. The majority of defects are caused by a small
Answer: B
percentage of the identifiable problems.
Improvement efforts should be reserved for these
few vital problems.
C. In order to achieve zero defects, all quality
control problems, including those which do not
have a direct financial cost, should be corrected.
D. Generally, 80% of the quality control problems
are justifiable for correction via cost-benefit
analysis. The remaining 20% are not financially
worthy of improvement efforts.
E. A and d
The Japanese Quality Control (QC) Circle

movement motivated its participants in many ways.
Which of the following represents the most
important motivation for the QC circle participant
A. Improving the performance of the company
Answer: A
B. Self-improvement
C. Financial incentives
D. Recognition among co-workers
E. Strengthening of relationships between co-
workers.
In order to achieve long-term quality

improvements, management must do the following
A. Motivate the employees with seminars, contests,
and institution of programs such as "Quality
Improvement" day
B. Create a quality control department and give the
head of the department ultimate responsibility for Answer: C
quality improvement
C. Implement of a formal quality control program
with worker and management involvement
D. Establish financial incentive packages for
workers
E. A and D
Quality assurance is
A. top management's intention regarding quality
B. functions determining implementation of the
quality policy
C. actions to provide confidence of satisfying Answer: C
quality requirements
D. responsibilities and processes which implement
quality management
E. all of the above
Quality is
A. zero defects
B. a problem
Answer: C
C. a specification
D. a cost
E. a, c and d
Which are the best two charts to show trends in a

process?
A. Pareto and Control
B. Control and Run Answer: B
C. Histogram and Run
D. Gantt and Pert
E. Gantt and CPM
If the acceptance sampling attribute for a lot is

30%, this means that
A. 30% of all lots must be tested
B. 30% of all lots must pass the test
Answer: D
C. any given lot must have 30% or fewer defects
D. a sample of a given lot must have 30% or fewer
defects to pass the entire lot
E. c and d
The pillar(s) of quality is (are)

A. Quality is free
B. Doing it right the first time
Answer: E
C. Zero defects
D. Process improvement
E. B and C
When a product or service completely meets a

customer's requirements
A. quality is achieved.
B. cost of quality is high. Answer: A
C. cost of quality is low.
D. the customer pays the minimum price.
E. a and b.
Using Pareto's Rule, and given the data in the

following table, where should corrective action
focus? Origin of problem % of problems Design 80
Development 2 Prototype 9 Testing 6 Fabrication
3"
Answer: A
A. Design
B. Design, development, and prototype
C. Design and prototype
D. Development, prototype, and fabrication
E. None of the above
Cost of quality is a concept that includes

A. the cost necessary for ensuring conformance to
requirements.
B. the life cycle cost of the project.
Answer: A
C. all research and development costs related to
the project.
D. only the cost of the quality control function
E. a and b.
The process of determining that technical

processes and procedures are being performed in
conformance with scope requirements and quality
plans is called quality
A. management. Answer: D
B. assurance.
C. process review.
D. control.
E. checks.
Quality control is
A. identifying which quality standards are relevant
to the project and determining how to satisfy them.
B. monitoring specific project results to determine if
they comply with relevant quality standards and
identifying ways to eliminate causes of
unsatisfactory performance.
C. evaluating overall project performance on a
Answer: B
regular basis to provide confidence that the project
will satisfy the relevant quality) standards.
D. taking action to increase the effectiveness and
efficiency of the project so as to provide added
benefits to both the performing organization and
the project customer.
E. assuring the production of goods that meet the
highest standards of luxury.
Quality planning is
A. identifying which quality standards are relevant
to the project and determining how to satisfy them.
B. monitoring specific project results to determine if
they comply with relevant quality standards and
identifying ways to eliminate causes of
unsatisfactory performance.
C. evaluating overall project performance on a
Answer: A
regular basis to provide confidence that the project
will satisfy the relevant quality standards
D. taking action to increase the effectiveness and
efficiency of the project so as to provide added
benefits to both the performing organization and
the project customer.
E. assuring the production of goods that meet the
highest standards of luxury.
Quality management includes forming and

directing a team of people to achieve a qualitative
goal within an effective cost and time frame that
results in
A. a project completed in the shortest possible
time.
B. a product or service that conforms to the Answer: B
requirement specification.
C. an award-winning product that brings public
recognition to the project.
D. an innovative project that establishes the
qualifications of the project team.
E. B and C.
According to current quality management thinking,

which of the following approaches to quality
improvement is least likely to produce positive
results ?
A. increased inspection Answer: A
B. Continuous improvement
C. Quality circles
D. Statistical quality control
E. Use of worker suggestion systems
The concept that states "the optimal quality level is

reached at the point where the incremental
revenue from product improvement equals the
incremental cost to secure it" comes from
A. quality control analysis. Answer: B
B. marginal analysis.
C. standard quality analysis.
D. conformance analysis.
E. systems analysis.
Which of the following best characterizes the

results of an increase in quality*?
A. increased productivity, increased cost-
effectiveness, and decreased cost risk.
B. Reduced productivity and no change to cost-
effectiveness or cost risk. Answer: A
C. Reduced productivity and an increase in overall
product or service cost.
D. increased productivity and cost-effectiveness.
E. increased productivity, decreased cost-
effectiveness and increased cost risk.
Which of the following statements regarding quality

is false?
A. Quality improvement depends upon better
definition and increased awareness of the
requirements specifications.
B. Future gains in quality will often rely on
advanced technology.
Answer: B
C. Recognition of key actions required of each
team member is necessary to meet quality
objectives.
D. Computer-aided design systems can improve
quality, but only at the expense of an increase in
the cost of design.
E. A and C.
You are sampling items from a batch and plotting

the results on a control chart. How will an increase
in the number of items in the sample affect the
value of the standard deviation used to set the
control limit?
Answer: B
A. increase it.
B. Decrease it.
C. No effect on it.
D. First increase it, then decrease it.
E. First decrease it, then increase it.
If the level of conformance directly increases as a

result of new processes. different resources, or
changed methods. the required cost of monitoring
is likely to
A. increase as well. Answer: C
B. remain the same.
C. decrease.
D. decrease initially then increase slightly.
E. increase then tend to level off
The primary driver(s) behind the demand for

continual quality improvement is/are
A. an increase in the number of projects being
worked.
B. the government cost improvement reports that
have created widespread public interest in quality.
Answer: E
C. the prevalence of media reports on quality!-
circles and other quality improvement techniques
D. the need to both reduce costs and ensure
consistency in the performance of products and
services.
E. b and d.
The concept of quality is based on

A. meeting luxury goods standards.
B. producing excellent products that are superior to
other similar items. Answer: C
C. conforming to the requirements specifications
D. maintaining uniformity of design
E. a and c.
An assignable variance tells us

A. our equipment is becoming obsolete.
B. top management should initiate increased
worker training.
Answer: C
C. there is an identifiable problem that must he
fixed.
D. schedule variances will be reduced.
E. ours use of quality circles is inadequate
From a high level perspective, quality

A. is ensured by having inspectors.
B. cannot be quantitatively measured.
C. and productivity are inconsistent objectives. Answer: D
D. is primarily (85-95%) a management problem.
E. problems are usually caused by unmotivated
employees.
Which is not a commonly used quality

management tool?
A. Fishbone diagram
B. CSSR report Answer: E
C. Pareto chart
D. Control chart
E. None of the above (all are commonly used)
Quality is often influenced by all of the following

except
A. fabrication processes and methods.
B. supervision. Answer: C
C. inspection
D. cost of materials.
E. design.
The___ of a product or service most affects its

reliability and maintenance characteristics.
A. design
B. concept Answer: A
C. fabrication
D. performance
E. cost
Random variance in a process, as measured by

the standard deviation. can be directly reduced by
A. improving the overall system of production
B. increasing the number of quality inspectors.
Answer: E
C. making use of run charts.
D. making better use of Pareto charts.
E. identifying patterns of variance using control
charts.
A project manager notices that all the

measurements recorded on a control chart lie
within the control band range. However, most of
the measurements are below the midpoint
(negative variance). Quality management practice
offers us what guidance in dealing with this
situation?
A. The project manager should apply the "rule of
seven." Answer: A
B. There is no problem as long as the variances lie
within the control band.
C. Negative variance indicates a problem which
should be remedied.
D. These variances are most likely caused by
random factors.
E. increased worker ownership should be
encouraged.
The project management team's for quality should

A. extend beyond the completion of the project.
B. stop at the point of delivery. .
Answer: A
C. be significantly reduced by a good warranty..
D. be ignored by the project manager.
E. a and c.
On a project, quality should generally be of

A. equal priority with cost and schedule.
B. lower priority than cost and schedule.
C. equal priority with cost, but higher priority than
Answer: A
schedule.
D. equal priority with schedule. but higher priority
than cost.
E. higher priority than cost and schedule.
100% inspection for defects may be neither Answer: E

possible nor desirable. When is sampling for
defects likely to be most useful?
A. When destructive testing is required
B. When the cost of 100% inspection is high.
C. When we believe there are not many defects.
D. a, b, and c.
E. a and b.
A fundamental tenet of modern quality

management holds that quality is most likely to be
achieved
A. by planning it into the project.
B. by developing careful mechanisms to inspect for
Answer: A
quality
C. by developing prestigious products and
processes.
D. by striving to do the best job possible.
E. by conducting quality circle activities.
Poor quality in a design project is likely to directly

affect ________________ costs.
A. manufacturing/building
B. advertising Answer: E
C. overhead
D. post-completion support
E. a and d
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. In initiating a contract, the primary focus is on

. The language of contracts does not preclude

It is important to review the performance of

. Project contracts can be separated into two broad

. In a cost-reimbursable contract, the owner (buyer)

. During the proposal and bidding phase, the owner

The contractor (seller) accepts all liability for

. Contracting for project work follows a set

Contractor screening is important to ensure that

A request for proposal (RFP) is used to

. When invitations for bid are issued to the

Submission of proposals to perform work is the

The most critical aspect of selecting a contractor

. Contracting is a means of obtaining required

. The proposal preparation is in itself a short-term

Similar to a small project, the proposal preparation

. When entering into a contract, it is often assumed

. A contract is a promise to do or not do something

In abstract theory, a contract is not essential to the

When making the project procurement plan, the

. Procurement documents should have all of the

A request for bid differs from a request for proposal

. Contract administration change requests may

Which of the following is true about the advertising

Which type of contract provides the highest risk to

In negotiations, what is a fait accompli tactic?

The project's contractor payment system should

The contract administrator should provide

Which type of contract should be used for a well-

Contract close-out documentation includes all of

. Potential contract changes should be

The purpose of a procurement audit is to do all of

When the procurement item is available from only

All of the following methods are available to the

Which terms are used to describe contested

FFP is an acronym for

The buyer has negotiated a cost-plus-incentive fee

Which of the following terms is an expression by

Which term describes the failure by either the

Which of the following practices is NOT an

When actual costs exceed estimated costs without

Contract type selection is dependent on the degree Answer: A

Generally speaking, compensation to a contractor

The process of monitoring contract performance,

Which term describes those costs that are

Subcontracting may be the best option when

During negotiation, the seller takes exception to the

Which of the following contract types places the

Which of the following contract types does NOT

The purpose of the bidders' conference is to

A specification that describes the buyers

The language of contracts sometimes causes

The legal contractual relationship that exists