4.Pmp 275 Sample Questions

Mohamed Nazaruddin
Mohamed Nazaruddin Mohamed Nazaruddin

1. If a project Manager calls for a meeting with the project team to review the
knowledge gained from previous projects, in what manner is the team
involved?
A. Identification of Scope
B. Risk Identification
C. Project status team meeting
D. Scope Identification
Ans : D
2. Through which channel, a perfect communication can take place between

the project team member and the Project Manager?
A. By written and oral communication
B. Through daily status report
C. Via formal chain of command
D. By updating daily status reports
Ans : B
3. If a Project Manager Places a purchase order for an equipment, which of the

following will represent it?
A. Investment on capital
B. Cash-out flow
C. Commitment
D. Expenses
Ans : A
4. What are the major processes involved in the management of project

integration?
A. Development of a Project plan, initiating a project, and control of overall
change
B. Development of a Project plan, execution of the project plan, and control of
scope change
C. Development of a Project plan, execution of the project plan, and control of
overall change
D. Development of a Project plan, control of overall change, and control of scope
change
Ans : B
5. Which one of the following is not essential in creating an effective

stakeholder management?
A. Timely status information
B. Definition of clear requirements
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C. Frequent cost report
D. Scope change control
Ans : C
6. Which of the following is more efficient in handling complex projects

involving cross-disciplinary efforts?
A. A Traditional Manager
B. An effective functional organization
C. Leading Project Managers
D. A strong functional organization
Ans : D
7. Point out the tools that are used as effective means in procurement
planning?
A. Analysis for make or buy, selection of the type of contract and system for
weighting
B. Analysis for make or buy, expert judgment and selection of the type of
contract
C. selection of the type of contract, conferences by bidders and expert judgment
D. Expert judgment, audits and conferences by bidders
Ans : C
8. In which particular phase do the project sponsors have the greatest

influence on the quality, scope, time and cost of the project?
A. Execution phase
B. Development phase
C. Close-down phase
D. Concept phase
Ans : B
9. Which of the following project management tools cannot be use by a project

management professional in comparing earned value performance data?
A. Risk mitigation plans
B. Risk mitigation plans
C. Forecasting final costs and scheduling estimates
D. Technical performance metrics
Ans : D
10. The purpose of decomposition process is to construct:

A. Work breakdown structure
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B. Critical Path Method Diagram
C. Precedence network
D. Variance analysis
Ans : A
11.Which of the following statements is not true?
A. Standards and regulations are mandatory.

B. According to ISO, standards are not mandatory, but regulations are.
C. Standards often begin as guidelines that are not mandatory.With later widespread
adoption, they can become de facto regulations.
D. Standards and regulations are socio-economic influences to a project.
Answer: A
11. Which type of leadership is best suited for optimizing team performance in
projects?
A. Democratic leadership.
B. Participative leadership.
C. Autocratic leadership.
D. Benevolent authoritative leadership
Answer: B
12. Where is the result node (outcome) shown on a typical Ishikawa or

Fishbone diagram?
A. Top.
B. Bottom.
C. Right hand side.
D. Center.
Answer: C
13. A project management team has subcontracted work to a service company.

The process of ensuring that this service company's performance meets
contractual requirements is called
A. Contract Administration.
B. Staff Acquisition.
C. Contract Closeout.
D. Contract Negotiation
Answer: A
14. What are workarounds in project management?
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A. Workarounds are essentially the same as rework.
B. Workarounds are alternative strategies.
C. Workarounds are unplanned responses to emerging risks that were previously
unidentified or accepted.
D. Workarounds are activities performed according to applicable contingency
plans
Answer: C
15. What are faits accomplis?

A. A French dinner after a kick-off meeting.
B. Unachievable deliverables.
C. Accomplished objectives.
D. Decisions made earlier which limit the options for decision making.
Answer: d
16.During execution of a project which is performed for a customer on a T&M

(Time and Material) contract base a new project manager is taking over the
assignment.
He discovers that two members assigned to the project have charged time
without performing any work.Upon further investigation, he determines that
this occurred because there were no other project assignments available for
these people.The customer is unaware of these facts.
What should the project manager do?
A. Try to find some productive work for these staff members in the project and
leave them on the team.
B. The best thing is to do nothing.The customer will not realize the problem
anyway.
C. Try to find a responsible person for the over-assignment who can be made
accountable.
D. Take the two people off the team immediately and arrange for the refund of
the excess charges to the customer .
Answer: d
17.In the following network logic diagram start dates are defined as early
morning, finish dates are evening.
If tasks are scheduled to begin at early start date, what is true?
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A. Activity B has a free float of 10 d.
B. Activity B has a total float of 10 d.
C. Activity A has a free float of 10 d.
D. Activity A has a total float of 10 d.
Answer: B
18. Which of the following is not considered to be part of Project Resource

Management?
A. Working staff.
B. Materials.
C. Equipment.
D. Time and money.
Answer: D
19. Toolsand Techniques of Risk Response Planning include

A.Identifying, quantitative and qualitative analysis, monitoring and control.
B.Avoidance, transference, mitigation, acceptance.
C.Identification, assessment of magnitude and probability, assessment of costs
of response .
D. Risk management reviews
Answer: B
21. A project manager performs Earned Value Analysis and finds the following
values:
EV: 100,000; PV: 125,000; AC: 100,000
A. The project is on schedule but costs exceed budget.

B. The project is on schedule and on budget.
C. The project is behind schedule but on budget.
D. Then project is behind schedule and costs exceed budget.
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Answer: C
21.
22. What are "Global Literacies"?.

A. The ability to read reports written in many different languages.
B. The ability to succeed in a cross cultural environment.
C. The ability to develop internationally accepted contracts.
D. The ability to communicate using drawings and pictograms which are
understood all over the world
Answer: B
23. During a project the scope of product purchased on a cost reimbursable

contract has increased. In the contract the contractors indirect costs are
calculated as 20 % of the direct costs. What is most likely to be true?
A. The contractors indirect costs will increase and the customers payment for
them will increase, too.
B. The contractors indirect costs will increase but the customers payment for
them not.
C. Neither the indirect costs nor the customers payment for indirect costs will
increase.
D. The contractors indirect costs will not increase but the customers payment
for them will.
Answer: D
24. A project management team is evaluating the causes that might contribute
to unsatisfactory performance and quality. Which of the following
statements is not true?
A. Normal process variation is attributable to random causes.
B. Special causes are easier to predict and handle than random causes.
C. Special causes are unusual events.
D. A process can be optimized to limit the bandwidth of variations due to random
causes.
Answer: B
25. You are performing a project management audit in your company and find
that most of the project plans are neither consistent nor up-to-date.
Which of the following statements is not true?
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A. Projects should never be executed without a valid, updated and working
project plan.
B. The project plan is secondary because it is only the results that matter.
C. A great deal of effort is required to develop and update a project plan, but the
benefits include less pressure on all stakeholders and a resulting product that
will satisfy the requirements.
D. Poor planning is one of the major reasons for cost and time overruns.
Answer: B
26. What is active risk acceptance?

A. Creating contingency reserves in money and time.
B. Developing a plan to minimize potential impact.
C. Developing a plan to minimize probability.
D. Making additional resources available
Answer: A
27. Project costs are over budget when

A. CPI > 1.
B. CPI < 1.
C. CPI < 0.
D. SPI = 1.
Answer: B
28. Which of the following statements is not true?

A. Only those who realize that cultural differences are a resource to be fully
utilized will survive.
B. There is a common ground for people from different cultures on which they
can interact without unsolvable conflicts.
C. Cultural differences will always be an obstacle to be overcome.
D. Culture is a critical lever for competitive advantage.
Answer: C
29. What is a quality audit?

A. A team meeting dedicated to measuring and examinations.
B. A quality based inspection of work results.
C. A structured review of quality management activities.
D. A meeting with the customer to identify quality requirements.
Answer: C
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30. You are assigned as the project manager in a project with an
aggressive schedule. During a recent meeting your team complained about
the high pressure applied and the many hours of overwork time.
What is the preferred solution to handle the problem?
A. Try to obtain additional budget and time.

B. Improve team communication and availability of high quality data on risks.
Use this information to enable you to make well-founded decisions earlier.
C. The problem might be the customer disturbing project rhythm. Keep him on
distance from the team.
D. Apply fast tracking to shorten project duration without additional work.
Answer: A
31. Activity 1 has a duration of 20 days, Activity 2 of 10 days, Activity 3 of 5

days and Activity 4 of 6 days. What is the minimum total duration between
the Milestones A and B?
A. 36 days
B. 37 days
C. 39 days
D. 42 days
Answer: B
31.
32. Which of the following statements is true concerning Scope Definition?

A. The Activity List is a principle output used for resource allocation and is an
input to network diagramming.
B. The Scope Statement is a principle output containing a narrative description
of project work and deliverables.
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C. The Project Charter is a principle output and authorizes the project.
D. The Work Breakdown Structure is a principle output and should be broken
down to a level which allows sufficient accuracy in planning.
Answer: D
33. All the following statements regarding "whistleblowing" are true except
A. It is the term used to define an employees decision to disclose information on
unethical, immoral or illegal actions at work to an authority figure.
B. An employee should always discuss the matter with people external to the
company before following the "chain of command" and discuss it with the
immediate superior.
C. The consequences of whistleblowing are often extreme and include possible
being branded as having bad judgment, firing, civil action and imprisonment.
D. Carefully considered whistleblowing can lead to the end of unethical business
practices.
Answer: B

A. Attribute sampling is the process of assessing whether results conform to
specifications or not.
B. Prevention means keeping errors out of the process
C. Variables sampling means that the result is classified into one of the 3
categories: "acceptable" - "acceptable after rework" - "rejected".
D. Inspection means keeping errors out of the hands of the customer.
Answer: C
35. Why should assumptions be documented?

A. Assumptions might prove to be wrong. Knowing which assumptions were
incorrect allows baseline adjustments in case of project crisis.
B. Assumption analysis is a valuable tool and technique of Risk Identification.
C. Assumptions limit the project management team's options for decision
making.
D. In case of schedule or budget overruns, the documentation of assumptions
supports a clear assignment of responsibility.
Answer: B
36. All the following statements are true except

A. It is axiomatic of the quality management discipline that the benefits
outweigh the costs.
B. Quality should be tested and inspected into work results on a regular base.
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C. The primary cost of meeting quality requirements is the expense associated
with project quality management activities.
D. The primary benefit of meeting quality requirements is less rework, which
means higher productivity, lower costs, and increased stakeholder
satisfaction.
Answer: B
37. Which of the following statements about diagramming methods is not

A. PDM is the same as AON.
B. ADM is the same as AOA.
C. GERT is the same as System Dynamics Model.
D. GERT and System Dynamic Model are examples of
conditional diagramming methods
Answer: C
38. A project is managed by a project coordinator. Which of the following

statements is most likely to be true?
A. The performing organization is a weak matrix.
B. The performing organization is doing "management by projects".
C. The performing organization is a strong matrix.
D. The performing organization is projectized.
Answer: A
39. Which of the following statements concerning cross-cultural differences is

true?
A. There is no one "best way" for project organization.
B. Some cultures have values, some not.
C. Cultural dilemmas should be denied to not allow them to disrupt project work.
D. Communicating across cultures should only be done using language. The
nonverbal dimension bears too many risks.
Answer: A
40. What are dummy activities?

A. Activities in PDM which are not necessary and can be dropped if time is
running out.
B. Arrows in ADM which represent dependencies between nodes without real
activities.
C. Activities, which can be passed to the team members with the lowest IQ.
D. Activities in PDM which are not performed by team members.
Answer: B
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41. Which of the following are not cost of quality?
A. Prevention costs.
B. Failure costs.
C. Transportation costs.
D. Appraisal costs.
Answer: c
41.
42. What is a trigger in project risk management?

A. An expected situation causing an unidentified risk event to occur.
B. A warning sign that an identified risk event might have occurred.
C. An unexpected situation causing an identified risk event to occur.
D. An unexpected situation causing an unidentified risk event to occur.
Answer: b
43.According to the project plan, a contractor is scheduled to deliver some

software components at the end of the day. A regular payment is due to be
made to this contractor tomorrow.
The project team received a note this morning informing them that the
software delivery will be delayed by 2 weeks.
This morning, the project team received a note that the software will be
delayed by 2 weeks.
How should the project management team react?
A. The project management team should delay payment for 2 weeks.

B. The project management team must immediately find a different contractor.
C. The project management team should conduct a meeting with the contractor
to resolve the delivery issues before making the payment.
D. The project management team should make the payment and reschedule the
project plan.
Answer: C
44.In a software company a large number of simultaneously performed

projects utilize the same groups of human and other resources.
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What is the term commonly used for this situation?
A. Concurrent engineering.
B. Resource over-allocation.
C. Resource pooling.
D. Program management
Answer: c
45. What does the acronym RAM commonly stand for in project management?
A. Responsibility Assignment Matrix.
B. Remotely Applied Measurements.
C. Risk Aware Management.
D. Randomly Accessible Material.
Answer: A
46. What is not handled as a constraint in project management?

A. Laws and regulations.
B. Limits of authorization.
C. Team preferences.
D. Physical constraints.
Answer: C
47. A precontract agreement that establishes the intent of a party to buy

products or services is called a
A. Seller initial response.
B. Seller immediate response.
C. Letter of intent.
D. Letter of credit.
Answer: C
48. What should not be part of a risk management plan?

A. Roles and responsibilities for handling risks.
B. Timing of risk management activities.
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C. The managerial approach towards risk.
D. Individual risks
Answer: D
49.A project manager performs Earned Value Analysis and finds the following
results:
EV: 250,000; PV: 200,000; AC 275,000
BAC is 500,000.
What is right?
A. EAC = 400,000
B. EAC = 550,000
C. BTC = 400,000
D. ETC = 75,000.
Answer: B
50. The construction of a residential home will cost a certain amount per square
foot of living space. This is an example of what type of estimating?
A. Analogous estimating.
B. Bottom-up estimating.
C. Top-down estimating.
D. Parametric modeling.
Answer: D
51. Which of the following should not be reason for rebaselining in a project?
A. Scope changes.
B. Cost variances.
C. Major schedule changes.
D. New information indicating that the basis for the original project cost
estimates was incorrect
Answer: B
51.
52. When a change control systems provision for changes without formal
review in case of emergency is being utilized
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A. Changes can be simply applied without further managerial activities if they
help solving the problem.
B. Changes must still be documented and captured so that they do not cause
problems later in the project.
C. A new change control board (CCB) should be established.
D. The project baseline must be changed as well.
Answer: B
53. Which of the following is generally not regarded to be a motivator according

to Frederick Herzberg?
A. Working conditions and interpersonal relations.
B. Responsibility for enlarged task.
C. Interest in the task.
D. Recognition for achievement.
Answer: A
54. Companies and institutions commonly hire leaders with

A. A strong position in negotiating.
B. Experience in tricking business partners.
C. Integrity and expertise.
D. A strong link to local traditions.
Answer: C
55.You are the project manager and have contracted with a service provider to
develop a complicated software solution This software is necessary to
control the machinery equipment which your project team will develop. It is
a lump-sum contract with additional incentives for meeting predefined
schedule targets. The payment schedule and incentives are as follows:
10% with order
20% after submission of prototype (+ 5% if delivered one week
early)
50% after product delivery (+ 5 % if delivered one week early)
20% after final product acceptance (+ 5 % if delivered one week
early)
Yesterday the company submitted the prototype to your project team. This was
2 weeks after the scheduled delivery date and 3 weeks after the date necessary to
qualify for the incentive payment.
This morning, the manager of the contractor approached you to ask for changes to
the payment schedule. They found that their initial work and costs were much
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higher than originally expected and they now wish to increase the second payment
to 30% and reduce the final payment to 10%.
During the discussion you got the impression that the company is in serious
financial trouble.
Which of the following might be the most appropriate initial step?
A. Offer to pay 25% now and to reduce the final payment down to 15%.
B. Point out that the contractor is not in a position to demand a change to the contract.
C. Demand an urgent meeting with the seller.
D. Revisit the planning processes of project risk management to understand the
upcoming risks in conjunction with the seller before any further decisions are made.
Answer: D
A review of management processes and the associated documentation is commonly called
A. Audit.
B. Inspection.
C. Testing and measuring.
D. Screening.
Answer: A
Which of the following is true in regard to the Code of Accounts?
A. It allows one to easily identify the breakdown level of the item in the resource structure.
B. It describes the coding structure used by the performing organization to report financial
information in its general ledger.
C. It is the collection of unique identifiers generally assigned to WBS items.
D. It defines ethical behavior in the project and the responsibilities to the customer and the
profession.
Answer: C
You are a member of your company's project office. The company is running many
concurrent projects; most of them share a resource pool. Understanding how resources are
utilized across projects is seen as being essential to cost effectiveness and profitability.
You recently received an inquiry to assess the benefits of using project management
software to manage the company's project portfolio.
Which of the following is true?
A. Project management software has the capability to help organize resource pools.
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B. Project management software will dramatically simplify the task of leveling resources
across projects with different project management teams.
C. Supporting project portfolio management is not the project office's business.
D. Evaluating project management software is not the project office's business.
Answer: A
What are SMART objectives?
A. Objectives specified with far more detail than necessary for a successful project.
B. Easily achievable objectives.
C. Objectives that should be achieved in order to attain formal recognition.
D. Objectives that have specific, measurable, assignable, realistic and time-related
specifications.
Answer: D
You have been assigned to a new project and have finished the scope statement. You and
your team are now going to create a Work Breakdown Structure. You are spending a lot of
time discussing how to create a completely decomposed Work Breakdown Structure.
Which of the following is not relevant to this discussion?
A. Status/completion is measurable.
B. Time/cost is easily estimated.
C. Start/end events are clearly defined.
D. Resource availability can be reliably foreseen.
Answer: D
Sample Questions
61. A project manager performs Earned Value Analysis and finds the following
results:
AC: 220,000, PV: 250,000, EV: 220,000.
A. CV = 0.
B. CV = 30,000.
C. CV = -30,000.
D. CV = 1
Answer: A
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61.
62. During a company event, you had the opportunity to talk to a colleague
project manager. He told you that in his current project actual costs are
15% under cumulated costs scheduled for today.
What do you think?
A. The information available is not sufficient to assess project performance.

B. The project will probably be completed with total costs remaining under
budget.
C. A significant cost increase during the further course of the project will
probably bring the costs back to baseline level.
D. Original cost planning must have been poor to allow this variance.
Answer: A
63. Which is true regarding projects?

A. A project is a unique service undertaken to create a temporary product.
B. A project is a unique endeavor undertaken to create a temporary service.
C. A project is a temporary endeavor undertaken to create a unique product or
service.
D. A project is a temporary product undertaken to create a unique endeavor or
service
Answer: C
64. Which of the following statements describes the relationship between

project phases and the project life cycle?
A. The project lifecycle contains the iterative incremental elements inside a
project phase.
B. Collectively, the project phases are known as the project life cycle.
C. The project lifecycle is regarded as a sequence of project activities while
phases are defined to control the overlapping of activities.
D. The project lifecycle contains the repetitive elements inside a project phase
Answer: B
65. A project management team discusses what scope means in a project.
All of the following statements are true except
A. The processes, tools, and techniques used by project scope management are
mostly depending on the application area.
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B. Product scope includes features and functions that are to be included in a
product or service.
C. Project scope includes the work that must be done in order to deliver a
product with the specified features and functions.
D. Project Scope Management includes the processes required to ensure that the
project includes all the work required and only the work required.
Answer: A
66. What is the S-curve in project management?
A. A graph that is generated if a normal curve is integrated.

B. A graph that is to be integrated to generate a normal curve.
C. A metaphoric description of the short term uncertainties that are present in
every project.
D. The graph that describes the typical growth of earned value during the course
of the project.
Answer: D
67. The output of the resource planning process is a document "resource

requirements". This a description of what types of resources are required in
what quantities...
A. where the term resources is limited to equipment and materials.
B. for each element at the lowest level of the work breakdown structure.
C. where the term resources is limited to human resources.
D. to be obtained solely from the performing organization.
Answer: B
68. The major output document of Scope definition is the.

A. Hierarchically structured WBS.
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B. Flat Activity List.
C. Narrative Scope Statement.
D. The Project Charter for the project manager
Answer: A
69. In regards of a cost baseline all of the following is true except

A. It is a time-phased budget that will be used to measure and monitor cost
performance on the project.
B. It can be easily created and updated as necessary.
C. It is developed by summing estimated costs by period.
D. It is usually displayed in the form of an S-curve.
Answer: B
70. Which is not true in regard of RoI (Return on Investment)?

A. It defines the cumulated net income from an investment at a given point in
time or during a defined period.
B. It includes investment, direct and indirect costs and may include allowances
for capital cost, depreciation, risk of loss, and/or inflation.
C. It is generally stated in currency units, as a percentage or as an index figure.
D. It is the time when cumulated net income is equal to the investment.
Answer: D
71. Regarding Delphi Technique all of the following statements are true except
A. It is a way to reach a consensus of experts.
B. Experts are identified but participate anonymously while a facilitator uses a
questionnaire to solicit ideas.
C. The experts are encouraged by the facilitator to make direct contact with each
other during the assessment process to create a higher number of feedback
loops.
D. The responses are submitted and are then circulated to the experts for further
comment.
Answer: C
71.
72. Regarding quality and grade all of the following statements are true except
A. Low quality is always a problem; low grade may not be. Grade is a category
or rank given to entities having the same functional use but different
requirements for quality. Quality is the totality of characteristics of an entity
that bear on its ability to satisfy stated or implied needs. Quality can simply
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be improved through intelligent testing and examining, upgrading requires
additional expenses.
Answer: D
73. Network templates which contain only portions of a network are often
referred to as
A. Subnets or fragnets
B. Subprojects
C. Programs
D. WBS items
Answer: B
74. In making an investment in a project, investors require compensation for

which of the following?
A. The risk-free rate of return plus a risk premium plus a premium for inflation.
B. Sacrifice of immediate use of cash for consumption or other investments,
possibility of inflation and risk.
C. Payback period in years x investment x (1 + discount rate)periods.
D. Inflation and depreciation.
Answer: B
75. A summary activity in a network logic diagram is often referred to as a

A. Hammock.
B. Dangler.
C. Milestone.
D. Subtask.
Answer: A
76. When a project phase is finished, this is also known as a ____.

A. Kill point
B. Milestone
C. Scope creep
D. Quality metrics
Answer: A
77. Ongoing project planning is also known as ________.

A. Rolling wave planning
B. Buildup planning
C. Activity planning
D. Project processes
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Answer: A
78. A ______looks at determining if the project idea is a realistic project.

A. Case project study
B. Feasibility study
C. Matrix study
D. Demand study
Answer: B
79. You are the project manager for a seminar and training session that
approximately 2,000-2500 employees will be attending. You have rented a
hall for the seminar; however, you are unsure exactly how many people will
attend. Moreover, the number of tables required will change depending on
attendance. The cost of the furniture should be considered?
A. Variable cost
B. Direct cost
C. Fixed cost
D. Transient cost
Answer: A
80. Which of the following is the correct formula for calculating present value of
a business or organization?
Note: R = Interest rate, n = time periods
A. Present Value = Future Value/(1+R)n

B. Present Value = Future Value/(1-R)n
C. Present Value = (1+R)n
D. Present Value = (1-R)n / Future Value
Answer: A
81. A narrative description of products or services to be supplied under contract

is called:
A. the project plan.
B. a statement of work.
C. an exception report.
D. Pareto analysis.
Answer: B
81.
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82. An example of scope verification is:
A. reviewing the performance of an installed software module.
B. managing changes to the project schedule.
C. decomposing the WBS to a work package level.
D. performing a benefit/cost analysis to determine if we should proceed with the
project.
Answer: A
83. Which of the following is not an example of a source of scope change?

A. a variation in government regulations.
B. failure to include a required feature in the design of a telecommunication
system.
C. a need to engage in bottom-up cost estimating.
D. introducing technology that was not available when scope was originally
defined.
Answer: C
84. The subdivision of major project deliverables, as identified in the scope

statement, into smaller, more manageable components is called:
A. parametric estimation.
B. scope definition.
C. feasibility analysis.
D. benefit-cost analysis.
Answer: B
85. The process of establishing clear and achievable objectives, measuring their
achievement, and adjusting performance in accordance with the results of
the measurement is called:
A. strategic planning.
B. alternative objectives inventory.
C. management by objectives.
D. contingency planning.
Answer: C
86. Configuration management is:

A. used to ensure that the description of the project product is correct and
complete.
B. the creation of the work breakdown structure.
C. the set of procedures developed to assure that project design criteria are met.
D. a mechanism to track budget and schedule variances.
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Answer: A
87. A fundamental tenet of modern quality management holds that quality is

most likely to be achieved by:
A. planning it into the project.
B. developing careful mechanisms to inspect for quality.
C. striving to do the best job possible.
D. conducting quality circle activities.
Answer: A
88. Your most recent project status report contains the following information:
BCWP = 3,000, ACWP = 3,500, and BCWS = 4,000. The schedule variance is:
A. + 1,000.
B. + 500.
C. - 500.
D. - 1,000.
Answer: D
89. Learning curve theory emphasizes that in producing many goods:

A. cost decreases as production rates increase.
B. average unit cost decreases as more units are produced.
C. materials become cheaper when they are purchased in bulk.
D. laborers become more productive because of technological advances.
Answer: B
90. Rearranging resources so that constant resource levels are maintained is

called:
A. floating.
B. leveling.
C. restructuring.
D. crashing.
Answer: B
91. The _________ is a time-phased budget that will be used to measure and
monitor cost performance in the project.
A. work breakdown structure
B. project schedule
C. cost baseline
D. cost budget
Answer: C
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91.
92. To transfer most of the cost risk to the contractor, the client may use a
___________ contract.
A. cost plus award fee
B. cost plus incentive fee
C. cost plus fixed fee
D. fixed price
Answer: D
93. An appropriate sequence for risk management activities is:

A. risk identification, risk quantification, and risk response development and
control.
B. risk identification, risk assessment, and risk planning.
C. risk identification, risk mitigation, and risk management.
D. risk identification, risk elimination, and risk mitigation.
Answer: A
94. Theory X holds that:

A. quality improvements lie in the hands of quality circles.
B. profits are tied to meeting schedule deadlines.
C. absenteeism is tied to poor working conditions.
D. workers are inherently unmotivated and need strong guidance.
Answer: D
95. All of the following are characteristics of parametric estimating except:

A. historical information.
B. quantifiable.
C. scalable.
D. activity lists.
Answer: D
96. Inputs to cost budgeting include all of the following except:

A. cost baseline
B. cost estimate
C. work breakdown structure
D. project schedule
Answer: A
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97. Inputs used during scope planning include all of the following except:
A. constraints.
B. project charter.
C. budget/cost analysis.
D. product description.
Answer: C
98. Cost control outputs include all of the following except:

A. estimate at completion.
B. budget updates.
C. revised cost estimates.
D. cost baseline.
Answer: D
99. Risk identification outputs include the following except:

A. decision trees.
B. inputs to other processes.
C. risk symptoms.
D. potential risk events.
Answer: A
100. Inputs into overall change control include all of the following except:
A. project plan.
B. change requests.
C. change control system.
D. performance reports
Answer: C
101. Activity duration estimate inputs include all of the following except:
A. resource requirements.
B. basis of estimates.
C. activity lists.
D. constraints.
Answer: B
101.
102. All of the following are contract types except:

A. unit-price.
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B. make-or-buy.
C. cost reimbursable.
D. lump sum.
Answer: B
103. Initiation inputs for a project include all of the following except:
A. product description.
B. strategic plan.
C. project charter.
D. selection criteria.
Answer: C
104. Responses to risk threats include all of the following except:

A. avoidance.
B. acceptance.
C. mitigation.
D. rejection.
Answer: D
105. The process of performance reporting includes all of the following

except:
A. status reporting.
B. progress reporting.
C. forecasting.
D. product analysis.
Answer: D
106. Constrained optimization methods of project selection include:

A. scoring models.
B. benefit-cost ratios.
C. multi-objective programming algorithms.
D. subjective analyses.
Answer: C
107. Which of the following statements concerning contract type is

correct?
A. a fixed price contract contains the most risk for the buyer.
B. cost reimbursable contracts offer sellers the highest profit potential.
C. lump sum contracts offer sellers the greatest profit potential.
D. unit price contracts are illegal in many jurisdictions.
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Answer: C
108. A Work Breakdown Structure (WBS) numbering system should allow

project staff to:
A. identify the level at which individual WBS elements are found.
B. identify configuration management milestones.
C. estimate the costs of WBS elements.
D. provide project justification.
Answer: A
109. All of the following are true quality statements except:

A. Quality improvement depends upon better definit ion and increased
awareness of the requirements/specifications.
B. Project quality management must address both management of the project
and the product of the project.
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.
Answer: D
110. All of the following are examples of tools often used in cost
estimating except:
A. parametric modeling.
B. analogous estimating.
C. bottom-up estimating.
D. activity duration estimates.
Answer: D
111. At XYZ InC., the hourly wage for semi-skilled workers is $14.00. The
annual audit shows that fringe benefits cost 30% of basic wages, and
that overhead costs are 60% of wages plus fringe benefits. What is the
"loaded" hourly wage for a semi-skilled worker at XYZ Inc.?
A. $27.14.
B. $28.96.
C. $30.03.
D. $29.12.
Answer: D
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111.
112. Of the following estimates, which most accurately reflect the actual
cost of the project?
A. conceptual estimates.
B. order of magnitude estimates.
C. preliminary estimates.
D. bottom-up estimates.
Answer: D
113. The most crucial time for project risk assessment is:
A. when a problem surfaces.
B. during the planning phase.
C. during the close-out phase.
D. after the project schedule has been published.
Answer: B
114. When there is uncertainty associated with one or more aspects of the
project, one of the first steps to take is to:
A. revise project plan.
B. conduct a risk-benefit analysis.
C. conduct a needs analysis.
D. increase the estimated cost of the project.
Answer: B
115. Including a contingency reserve in the project budget is intended to:

A. reduce the probability of scope changes.
B. increase the probability of scope changes.
C. reduce the probability of a cost overrun.
D. increase the probability of a cost overrun.
Answer: C
116. Given the information in the following table, what is the expected
value from this risk event? Probability Result
.4 -10,000
.3 -7,500
.2 -5,000
.1 +2,500
A. -10,000.
B. - 7,500.
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C. + 2,500.
D. -7,000.
Answer: D
117. A contractor is working on a fixed price contract that calls for a

single, lump sum payment upon satisfactory completion of the contract.
About halfway through the contract, the contractor's project manager
informs their contract administrator that financial problems are making it
difficult for them to pay their employees and subcontractors. The contractor
asks for a partial payment for work accomplished.
Which of the following actions by the buyer is most likely to cause problems
for the project?
A. starting partial payments for work accomplished.

B. making no payments because it would violate the conditions of the contract.
C. paying for work accomplished to date.
D. negotiating a change to the payment conditions in the contract.
Answer: B
118. A precise description of a physical item, procedure, or service for

implementation of an item or service is called a:
A. work package.
B. baseline.
C. product description
D. work breakdown structure (WBS) element.
Answer: C
119. A project should be terminated for all of the following reasons except:
A. lack of team synergy.
B. the project no longer meets the company's objectives.
C. the resources are not available to complete project activities.
D. project funding has been significantly reduced.
Answer: A
120. One common way to compute estimated at completion (EAC) is to

take the project budgeted-at-completion and:
A. divide it by the schedule performance index.
B. multiply it by the schedule performance index.
C. multiply it by the cost performance.
D. divide it by the cost performance index.
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Answer: D
121. Which of the following is a tool used to secure expert judgment?

A. Peer review
B. Delphi technique
C. Expected value technique
D. Work Breakdown Structure (WBS)
Answer: B
121. Explanation: The 'Delphi technique' is a commonly used tool to secure expert
judgment while initiating a project.
'Peer review' is a project selection tool, 'Expected value' is a method quantitative risk
analysis, and 'WBS' is a project-planning tool.
122. Based on the information provided below, which project would you
recommend pursuing?
Project I, with BCR (Benefit Cost ratio) of 1:1.6;

Project II, with NPV of US $ 500,000;
Project III, with IRR (Internal rate of return) of 15%
Project IV, with opportunity cost of US $ 500,000.
A. Project I
B. Project III
C. Either project II or IV
D. Can not say from the data provided
Answer: B
Explanation: Project III has an IRR of 15%, which means the revenues from the
project equal the cost expended at an interest rate of 15%.
This is a definitive and a favorable parameter, and hence can be recommended for
selection.
Project I have an unfavorable BCR and hence cannot be recommended.
Information provided on projects II and IV is not definitive, and hence neither of

projects II and IV qualifies for a positive recommendation.
123. What the project manager to ensure that all work in the project is
included should do?
A. Create a contingency plan
B. Create a risk management plan
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C. Create a WBS
D. Create a scope statement
Answer: C
Explanation: A WBS is a deliverable oriented grouping of project components that

organizes and defines the total scope of the project.
124. What kind of a relationship is implied when completion of a successor

is dependent on initiation of its predecessor?
A. finish-to-start (FS)
B. finish-to-finish (FF)
C. start-to-start (SS)
D. start-to-finish (SF)
Answer: D
Explanation: A start-to-finish (SF) relationship between two activities implies that the
completion of successor is dependent on the initiation of its predecessor.
A finish-to-start (FS) relationship between two activities implies that the initiation of
successor is dependent on the completion of predecessor.
A finish-to-finish (FF) relationship between two activities implies that the completion
of successor is dependent on the completion of predecessor.
A start-to-start (SS) relationship implies that the initiation of successor is dependent

on the initiation of predecessor..
125. What should a project manager do or follow to ensure clear

boundaries for project completion?
A. Scope verification
B. Complete a scope statement
C. Scope definition
D. Risk management plan
Answer: B
Explanation: The project team must complete a scope statement for developing a
common understanding of the project scope among stakeholders. This lists project
deliverables - summary level sub-products, whose full and satisfactory delivery
marks the completion of the project.
Scope verification is the process of securing a formal acceptance of the project scope
by stakeholders.
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Scope definition is the process of subdividing the major project deliverables into
smaller, more manageable components.
A risk management plan involves setting up processes for identifying and dealing
with project risks.
126. An organization is certified to a stringent environmental standard and

uses that as the key differentiator with its competitors. Alternative
identification during scope planning for a particular project has thrown up
an expeditious approach to achieve a project need, but this involves a risk
of environmental contamination. The team evaluates that the likelihood of
the risk is very low. What should the project team do?
A. Drop the alternative approach
B. Work out a mitigation plan
C. Procure an insurance against the risk
D. Plan all precautions to avoid the risk
Answer: A
Explanation: The organization's reputation being at stake, the threshold for such a
risk would be very low.
Mitigation plan against an environmental contamination would mean reducing the

impact, which may not be a plausible response.
Procuring an insurance against the risk would only transfer the monetary impact of
the risk, and not the intangible impact like, the reputation of the organization.
Planning precautions against the occurrence would still leave an opportunity of

occurrence.
This cannot be completely avoided.
The best option would be to drop the approach - that is, complete avoidance of the
risk.
127. The following three tasks form the entire critical path of the project
network. The three estimates of each of these tasks are tabulated below.
How long would the project take to complete expressed with an accuracy of
one standard deviation?
Most
Task Optimistic Pessimistic
likely
A 15 25 47
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B 12 22 35
C 16 27 32
A. 75.5
B. 75.5 +/- 5.08
C. 75.5 +/- 8.5
D. 75.5 +/- 2.83
Answer: B
Explanation: The critical path is the longest duration path through a network and
determines the shortest time to complete the project. The PERT estimates of the
tasks listed are 27, 22.5 & 26. Therefore, the length of the critical path of the project
is 27+22.5+26 = 75.5.
The standard deviations of the estimates of the three tasks are determined as (P-
O)/6 = 2, 3.83 & 2.67 respectively. The standard deviation of the total path is
determined as Sq. root (sum of variances), where variance = square of standard
deviation. Thus, standard deviation of critical path = Sq. root (4+14.67+7.13) =
5.08.
128. After a study of the work processes on a project, a quality audit team
reports to the project manager that irrelevant quality standards were being
used by the project, which might lead to rework. What was the objective of
the project manager in initiating this study?
A. Quality control
B. Quality planning
C. Checking adherence to processes
D. Quality assurance
Answer: D
Explanation: Determining validity of quality standards, followed by the project is a

'quality assurance' activity.
Compliance of work results to required specifications is a 'quality control' activity.
Determining quality standards is a 'quality planning' activity.
'Checking adherence to processes' is a quality audit activity to ensure that standard

operating procedures or job instruction documents (SOPs or JIDs) are being followed
for producing the deliverables of the process.
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129. Which of the following provides the foundation for team
development?
A. Motivation
B. Organizational development
C. Conflict Management
D. Individual Development
Answer: D
Explanation: Individual development (managerial and technical) is the foundation of

a team.
130. Which of the following is NOT an input to project plan execution?

A. Work authorization system
B. Project plan
C. Corrective action
D. Preventive action
Answer: A
Explanation: A Project plan is the basis of project plan execution and is a primary
input.
Work authorization system is a tool used for orchestrating execution of various

project tasks.
Whereas, Corrective and Preventive actions are inputs to the project plan execution
process from various controlling processes.
131. A project manager would find team development the most difficult in
which form of organization?
A. Weak Matrix organization
B. Balanced Matrix organization
C. Projectized organization
D. Tight Matrix organization
Answer: A
131. Explanation: In a functional organization, the project team members have

dual reporting to two bosses - the project manager and the functional manager.
In a weak matrix organization, the power rests with the functional manager.
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In a balanced matrix organization, the power is shared between the functional
manager and the project manager. A projectized organization is grouped by projects
and the project manager has complete control on the project and its team.
A Tight matrix organization refers to co-locating the project team and has nothing to
do with a matrix organization.
Therefore, a project manager would find it difficult to drive team development in a

weak matrix organization.
132. The project manager of a large multi-location software project team

has 24 members, out of which 5 are assigned to testing. Due to recent
recommendations by an organizational quality audit team, the project
manager is convinced to add a quality professional to lead the test team at
additional cost, to the project.
The project manager is aware of the importance of communication, for the

success of the project and takes this step of introducing additional
communication channels, making it more complex, in order to assure quality
levels of the project.
How many additional communication channels are introduced as a result of

this organizational change in the project?
A. 25
B. 24
C. 1
D. 5
Answer: A
Explanation: Number of communication channels with "n" members = n*(n-1)/2
Originally the project has 25 members (including the project manager), which makes
the total communication channels as 25*24/2 = 300.
With the addition of the quality professional as a member of the project team, the
communication channels increase to 26*25/2 = 325.
Therefore, the additional channels as a result of the change, that is, 325-300 = 25.
133. Once the project is complete, the complete set of project records
should be put in which of the following?
A. Project Archives
B. Database
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C. Storage room
D. Project Report
Answer: A
Explanation: Project records should be prepared for archiving by the appropriate

parties.
134. Which of the following is a common format for performance

reporting?
A. Pareto Diagrams
B. Bar charts
C. Responsibility Assignment Matrices
D. Control Charts
Answer: B
Explanation: Common formats for Performance Reports are, bar charts (also called
Gantt Charts), S-curves, histograms and tables etc.
135. If the cost variance is positive and the schedule variance is also
positive, this indicates the:
A. Project is under budget and behind schedule
B. Project is over budget and behind schedule
C. Project is under budget and ahead of schedule
D. Project is over budget and ahead of schedule
Answer: A
Explanation: Positive Schedule Variance means the project is ahead of schedule;

Negative Cost Variance means the project is over-budget.
136. During execution of a project, an identified risk event occurs that

results in additional cost and time. The project had provisions for
contingency and management reserves. How should these be accounted
for?
A. Contingency reserves
B. Residual risks
C. Management reserves
D. Secondary risks
Answer: A
Explanation: The question is about correct accounting for risk events that occur and
updating the reserves.
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Reserves are meant for making provisions in cost and schedule, to accommodate for
consequences of risk events.
Risk events are classified as "unknown unknowns" or "known unknowns", where

"unknown unknowns" are risks that were are not identified and accounted for, while
"known unknowns" are risks that were identified and provisions were made for them.
Provisions for "unknown unknowns" are in management reserves while those for
"known unknowns" are accommodated in contingency reserves. Management
reserves are at the discretion of senior management while the contingency reserves
are at the project manager's discretion.
Residual and secondary risks are remaining unmitigated risks and resultant risks of
mitigation, respectively. These are not reserves.
In this case, the risk event is one of the identified risks and therefore, 'contingency
reserve' is the one where the cost and schedule impact would be accommodated in.
137. Which one of the following is the last step of project closing?
A. Client has accepted the product
B. Archives are complete
C. Client appreciates your product
D. Lessons learnt are documented
Answer: B
Explanation: Archiving is the last step in the project closing.
138. Who should be involved in the creation of lessons learned, at closure

of a project?
A. Stakeholders
B. Project team
C. Management of the performing organization
D. Project office
Answer: A
Explanation: 'Stakeholders' include everyone who are actively involved in the project
or whose interests may be affected as a result of the project execution or
completion.
The 'project team' creates the lessons learned on the project.
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The role of the 'project office' depends on the function defined for it within the
performing organization and it could be either facilitating best practices for all
projects or could constitute the project team.
As lessons learned should capture all variations and what could have been done
better for future deployment, 'stakeholders' should be involved in creation of lessons
learned.
139. An organization has recently started outsourcing work to a low cost,

high value, engineering center located in a different country.
Which of the following should the project manager provide for the team as a
proactive measure?
A. A training course on the laws of the country

B. A course on linguistic differences
C. An exposure to the cultural differences
D. A communication management plan
Answer: C
Explanation: Understanding cultural differences is the first step towards an effective

communication amongst the project team involving outsourced work from a different
country. So, what is needed in this case is 'an exposure to the cultural differences',
which is being mentioned as choice C.
Choice A, that is, 'a training course on the laws of the country' is a subject of legal
experts and not of the project team.
Choice B, that is, ' a course on linguistic differences' would not serve the purpose of
understanding and appreciating cultural differences, for better teaming.
Choice D, that is, 'a communication management plan' is a document that provides
data gathering and dissemination amongst stakeholders of the project. It is
necessary for the project but does not help in bridging communication gaps across
different cultures
140. While reviewing the progress, the project manager assesses that an
activity has been missed out from the implementation plan. A milestone,
scheduled to be achieved within another week, would be missed with the
current implementation plan.
Which of the following is the next best action for the project manager in this
situation?
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A. Report the error and the expected delay
B. Omit the status update on the milestone
C. Report the error and the planned recovery actions
D. Assess alternatives to meet the milestone
Answer: D
Explanation: Choice D, that is, 'assess alternatives to meet the milestone' indicates
confronting the issue with an attempt to resolve the issue. Hence this would be the
best approach.
Choices A and C, that is, 'report the error and the expected delay' or 'report the error
and the planned recovery actions' do not attempt to solve the problem.
An attempt to solve the problem is the next best thing to do in this situation, before
reporting the issue correctly.
Choice B, that is, 'omit the status update on the milestone' is unethical.
141. Which of the following it the logical flow of any project?

A. Planning, Initiating, Executing, Controlling, Closing
B. Initiating, Planning, Controlling, Executing, Closing
C. Planning, Initiating, Executing, Controlling, Closing
D. Initiating, Planning, Executing, Controlling, Closing
Answer: D
141.
142. In which phase of a project would you estimate activity duration and
resources?
A. Initiating
B. Executing
C. Planning
D. Controlling
Answer: C
143. Which of the following according to the PMBOK is described as, a

category or rank given to entities having the same functional use but
different technical characteristics?
A. Grade
B. Quality
C. Flow design
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D. Benchmark
Answer: A
144. Which of the following is another name for an Ishikawa diagram?

A. Cause and Effect Diagram
B. Bell Curve
C. Pareto Diagram
D. Trend Analysis
Answer: A
145. Refinements are considered updates for the ____.

A. GERT
B. ADM
C. WBS
D. CQM
Answer: C
146. The acronym CPPC stands for?

A. Cost Plus Percentage of Control
B. Cost Plus Percentage of Contract
C. Cost Plus Percentage of Cost
D. Cost Plus Plus Cost
Answer: A
147. Which of the following is not considered part of Maslows Hierarchy of

Needs?
A. Social needs
B. Safety
C. Motivation
D. Self-actualization
Answer: C
148. Parento diagrams work on the ___ rule.

A. 50/50
B. 60/40
C. 80/20
D. 90/10
Answer: C
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149. Which of the following is a key aspect of quality control?
A. Limited in scope
B. Minimal planning resources
C. Generic cost controls
D. Project wide focus
Answer: D
150. The creator of the project charter is identified as the ______.

A. Project manager
B. Outside senior manager
C. Internal control expert
D. Quality control expert
Answer: B
151. You are managing the release of a new drug in the market. Your role
is that of a:
A. Functional Manager, because you have good understanding functional
knowledge of the pharmaceutical industry
B. Project Manager, because you are creating a unique product within specific
time schedules
C. Operations Manager, because you have to do several repetitive tasks
D. Program Manager, because you have to manage several sub-projects to
effectively do your job
Answer: B
151.
Explanation: Projects involve doing something that has not been done before and
which is, therefore, unique. A product or service may be unique even if the category
to which it belongs is large....
A project to bring a new drug to market may require thousands of doses of he drug
to support clinical trials
152. Which of the following is not the feature of a project?

A. Constrained by limited resources
B. Planned, executed and controlled
C. Creates unique product or service
D. May be ongoing and repetitive
Answer: D
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Explanation: Operations and projects differ primarily in that operations are ongoing
and repetitive while projects are temporary and unique. A project can thus be
defined in terms of its distinctive characteristics - a project is a temporary endeavor
undertaken to create a unique product or service
153. You are managing the release of a new drug in the market. Your role
is that of a:
A. Functional Manager, because you have good understanding functional
knowledge of the pharmaceutical industry
B. Project Manager, because you are creating a unique product within specific
time schedules
C. Operations Manager, because you have to do several repetitive tasks
D. Program Manager, because you have to manage several sub-projects to
effectively do your job
Answer: B
Explanation: Projects involve doing something that has not been done before and
which is, therefore, unique. A product or service may be unique even if the category
to which it belongs is large.
A project to bring a new drug to market may require thousands of doses of he drug
to support clinical trials.
154. Which of the following statement related to Standards and

Regulations is not correct?
A. Standard is a document approved by a recognized body - there can be
multiple standards for one product.
B. Regulations are mandatory but Standards are not mandatory.
C. Standards after widespread adoption may become de facto regulations.
D. The influence of standards and regulations for a project is always known
Answer: D
Explanation: For many projects, standards and regulations (by whatever definition)
are well known and project plans can reflect their effects. In other cases, the
influence is unknown or uncertain and must be considered under Project
Risk Management
155. Your IT company is responsible for making software virus programs.

You are responsible for managing both the individual product releases and
the co-ordination of multiple releases over time. Your role is that of a:
A. Program Manager
B. Project Manager
C. Functional Manager
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D. Operations Manager
Answer: A
Explanation: A program is a group of projects managed in a co-ordinated way to

obtain benefits which are not available from managing them individually. Many
programs also involve elements of ongoing operations.
156. A Project Manager must have good understanding of the mechanics of

power and politics to be effective. As defined by Pfeffer, power includes all
the following except:
A. The Potential to influence behavior
B. Potential to change the course of events and overcome resistance
C. Ability to get people to do things that they would not otherwise do
D. Ability to handle power struggles and organizational games
Answer: D
Explanation: Pfeffer defines power as "the potential ability to influence behavior, to

change the course of events, to overcome resistance, and to get people to do things
that they would not otherwise do."The negative sense, of course derives from the
fact that attempts to reconcile these interests result in power struggles and
organizational games that can sometimes take on a thoroughly unproductive life of
their own.
157. Which of the following statement related to Standards and

Regulations is not correct?
A. Standard is a document approved by a recognized body - there can be
multiple standards for one product.
B. Regulations are mandatory but Standards are not mandatory.
C. Standards after widespread adoption may become de facto regulations.
D. The influence of standards and regulations for a project is always known
Answer: D
Explanation: For many projects, standards and regulations (by whatever definition)
are well known and project plans can reflect their effects. In other cases, the
influence is unknown or uncertain and must be considered under Project
Risk Management.
158. A Project Manager must have good understanding of the mechanics of

power and politics to be effective. As defined by Pfeffer, power includes all
the following except:
A. The Potential to influence behavior
B. Potential to change the course of events and overcome resistance
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C. Ability to get people to do things that they would not otherwise do
D. Ability to handle power struggles and organizational games
Answer: D
Explanation: Pfeffer defines power as "the potential ability to influence behavior, to

change the course of events, to overcome resistance, and to get people to do things
that they would not otherwise do."The negative sense, of course derives from the
fact that attempts to reconcile these interests result in power struggles and
organizational games that can sometimes take on a thoroughly unproductive life of
their own.
159. Phase end review of projects is also referred to as:

A. Phase Exits
B. Kill Points
C. Stage Gates
D. All the above
Answer: D
Explanation: The conclusion of a project phase is generally marked by a review of

both key deliverables and project performance to date, to a) determine if the project
should continue into its next phase and b) detect and correct errors cost effectively.
These phase-end reviews are after called phase exits, stage gates or kill points
160. You are working in the Project Office of your organization. What is
your job responsibility?
A. Managing the different activities of a project
B. Always being responsible for the results of the project
C. Providing support functions to Project Managers in the form of training,
software, templates etc.
D. Providing Subject Matter Expertise in the Functional areas of the project
answer: C
Explanation: Project Office: There is a range of uses for what constitutes a project
office. A project office may operate on a continuum from providing support functions
to project managersin the form of training, templates, etc. to actually being
responsible for the results of the project
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1. ________ is typically not referred to as a buffer type in critical chain project management.
Resource buffer
Free buffer
Feeding buffer
Project buffer
See
references Marked for review
2. A company has to make a choice between two projects, because the available resources in money
and kind are not sufficient to run both at the same time. Each project would take 9 months and
would cost $250,000.
1. The first project is a process optimization which would result in a cost reduction of $120,000 per year.
This benefit would be achieved immediately after the end of the project.
2. The second project would be the development of a new product which could produce the following net
profits after the end of the project:
1. year: $ 15,000
2. year: $ 125,000
3. year: $ 220,000
Assumed is a discount rate of 5% per year. Looking at the present values of the benefits of these
projects in the first 3 years, what is true?
Both projects are equally attractive.
The first project is more attractive by app. 7%.
The second project is more attractive by app. 5%.
The first project is more attractive by app. 3%.
See
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3. A production process has been defined as part of an industrial equipment manufacturing project. The
process is intended to produce steel bolts with a length of 20 cm. The control limits are 19.955cm
and 20.045cm.
The measurements made at the end of the process yielded the following results:
20.033cm, 19.982cm, 19,995cm, 20.006cm, 19.970cm, 19.968cm, 19.963cm, 19.958cm,

19.962cm, 19.979cm, 19.959cm.
What should be done?

The process is under control. It should not be adjusted.
A special cause should be investigated, the process should be adjusted.
The control limits should be adjusted.
The measuring equipment should be recalibrated.
See
4. Your project management team includes two external consultants each from a different company.
You found that repeated conflicts between the two consultants already slow down project progress
and jeopardize achievement of objectives.Which stage of team development can be difficult to
overcome in such a situation?
Storming from Forming, Storming, Norming, Performing
Panic from Enthusiasm, Panic, Hope, Solution
Kickoff from Assignment, Kickoff, Training, Communicating
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Frustration from Direction, Frustration, Cooperation, Collaboration
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5. During a project, earned value analysis is performed, resulting in the following numbers:
EV: 523,000; PV: 623,000; AC: 643,000.
Which results are correct?

CV: +120,000; SV: +100,000
CV: +100,000; SV: +120,000
CV: -100,000; SV: -120,000
CV: -120,000; SV: -100,000
See
6. A project manager spent some days to create a multi-page document, which he called project
charter. The document should have been issued by the project sponsor. The sponsor found the
document outsized and asked for a condensed document.
Which of the following is usually not an element of the project charter?

The authority level of the project manager
Detailed control account and work package descriptions
The business need that the project was undertaken to address
High-level risks
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See
7. A document called ____________ is created by decomposing the project scope into smaller, more
manageable elements.
Scope Statement
Network Logic Diagram
Work Breakdown Structure
Requested Change
See
Which of the following tools is used to create a risk management plan?
8.
Risk planning meetings
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Documentation reviews
Data precision rankings
Diagramming techniques
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9. In order to speed up a project, you made a decision to fast-track a phase currently performed with
five team members, and another one which was planned to begin in four weeks time with another
five team members.
Which of the following activities should you do first?

Make sure that all exit criteria of the consecutive phase have been met to ensure the flow of
communications in a team situation which is more complex by a factor of 2.
Make sure that all entry criteria of the previous phase have been met by planning and
performing a phase gate meeting to assess technical aptness.
Make sure that all exit criteria of the previous phase have been met by planning and
performing a phase gate meeting to assess technical performance.
Restructure your team and delegate tasks in order to ensure the flow of communications in a
team with the number of communication channels increased by a factor of 4.5.
See
10. A project manager has been asked to support an internal project request by developing a business
case.
What kind of information is the person expected to provide in the document?

The detailed information from a business standpoint to determine whether bidding for the
customer project will be successful.
The detailed information from a project management standpoint to determine whether the
project will be successful.
The detailed information from a technical standpoint to determine whether the project will be
successful.
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The necessary information from a business standpoint to determine whether the project is
worth the investment.
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You found the following earned value analysis information for a project that was recently closed-
out:SPI = 0.7, CPI = 1.0
11.
The project has been cancelled while it was executed. At that time the project was behind
schedule and on budget.
The project's deliverables have all been finished. The project came in behind schedule but on
budget.
The project's deliverables have all been finished. The project came in ahead of schedule but
on budget.
The project's deliverables have all been finished. The project came in on schedule but over
budget.
See
Which should be included in a requirements management plan?
12.
The document should trace requirements to project scope / WBS deliverables.
It should describe how requirements activities will be planned, tracked, and reported.
It should trace high-level requirements to more detailed requirements.
It should trace requirements to business needs, opportunities, goals, and objectives.
See
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13. In a traditionally drawn decision tree, a circle represents ___________.
a chance to which no expected monetary value can be assigned so that a likely pay-off can
not be shown.
a decision to which no expected monetary value can be assigned so that a likely pay-off can
not be shown.
a chance to which an expected monetary value may be assigned to calculate the most likely
pay-off.
a decision to which an expected monetary value may be assigned to calculate the most likely
pay-off.
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A project management team has subcontracted work to a service company. Which of the following
tools is the best choice to assure that this company will be able to meet the quality requirements of
14. the project?
Quality audit
Deliverable inspection
Fixed price contract
Service level agreement
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15. With your team you are using judgment from subject matter experts to identify and analyze project
risks. There is a small number of experts available, but some of them have long been in a teacher-
student or manager-assistant relationship.
Which of the following techniques can ensure best that there is no dominating opinion during an
expert review?
Peer review
SWOT analysis
Delphi technique
Monetary value calculation
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16. You are running a project for a customer based on a cost-reimbursable contract with the following
terms:
Target costs: $ 1,000,000

Fixed fee: $ 100,000
Benefit/cost sharing: 80% / 20%
Price ceiling: $ 1,200,000
Which is the PTA (= point of total assumption, break point) of the project?
$1,300,000
$1,500,000
$80,000
$1,125,000
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17. During execution of a project which is performed for a customer on a T&M (time and material)
contract base, a new project manager is taking over the assignment.
He discovers that two members assigned to the project have charged time without performing any
work for the project customer. Upon further investigation, he determines that this occurred because
there have been no other project assignments open for these employees. The customer is unaware
of these facts.
What should the project manager do?

Try to find some productive work for these staff members in the project and leave them on
the team.
The best thing is to do nothing. The customer will not realize the problem anyway.
Try to find a responsible person for the over-assignment who can be made accountable.
Take the two people off the team immediately and arrange for the refund of the excess
charges to the customer.
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18. Start dates in the following network logic diagram are defined as early morning, finish dates are
evening.
If tasks are scheduled to begin at early start date, what is true?
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Activity B has a free float of 10 d.
Activity B has a total float of 10 d.
Activity A has a free float of 10 d.
Activity A has a total float of 10 d.
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19. Your project is executed with a globally spread virtual team. The project progress has been found to
be too slow. Which measure is most likely to immediately speed up the project?
Technical training for all team members
Daily phone conferences and detailed reporting
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A team meeting at a location convenient to all team members
Collocation of team members at a suitable place
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A project management team wants to procure some customized products which are available in
identical grade and quality from many vendors. What should be included in the procurement
20. package to ensure that their offers will be comparable?
A statement of work describing the needs of the project in sufficient detail to enable vendors
to make suitable proposals
A statement of work specifying attributes and metrics of the requested deliverables in detail to
allow vendors submission of bids
The approved project scope statement, the WBS which should be broken down to work
package level and the WBS dictionary
The risk management plan and the reports from those risk management reviews which have
been made so far
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21. Which of the following becomes increasingly important in a virtual team environment?
Requirements engineering
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Communication planning
Formal procurements closure
Network diagramming
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22. You are assigned as the project manager to a project which is executed for a customer under FP
contract. Your customer informed you this morning that they insist on certain "refinements" of the
project scope. You agree that the requested actions make really sense to the project, but believe
that they constitute a major change increasing the project scope. What should you do next?
Accept the request of the customer. Diligently document the additional costs and working
hours spent by yourself and the team on the implementation of the change and invoice these
to the customer at appropriate rates.
Perform earned value analysis to assess the current status of the project and get all the
numbers you need to communicate the case to the change control board which then will have
to make the best decision regarding the customer request.
Check the contract, the project charter, the scope statement and other documents related to
the project and the contract. Implement ADR (alternative dispute resolution) procedures if the
conflict cannot be resolved otherwise.
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Talk to the project sales department and find a joint solution with them how to best reject the
request considering the commercial and strategic value of the customer to the organization
you are working for.
See
23. A prime contractor in a customer project under CPFF contract has run into unexpected technical
problems. Fixing them will require a lot of additional work to be done. The company made a decision
to book more staff and equipment from their subcontractors in order to adhere to the agreed
timeline. The customer agreed to this decision. What will most likely happen?
The contractors indirect costs will increase and the customers payment for them will
increase, too.
The contractors indirect costs will increase, but the customers payment for them will not
increase.
The contractors indirect costs will not increase, but the customers payment for them will.
Both the contractor's indirect costs and the customers payment for them will not increase.
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24. A project management team is evaluating the causes that might contribute to unsatisfactory
performance and quality. Which of the following statements is not true?
Normal process variation is attributable to random causes and sometimes also called "white
noise".
Special causes are easier to predict and handle than random causes (also called common
causes).
Special causes are unusual events which are difficult to foresee and often produce outliers.
A process can be optimized to limit the bandwidth of variations due to random causes.
See
25. You are performing a project management audit in your company and find that most of the project
plans are neither consistent nor up-to-date.
Which of the following statements is not true?

Projects should never be executed without a valid, updated and working project management
plan.
The consistency of the project management plan is secondary because it is only the results
that matter.
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A great deal of effort is required to develop and update a project plan, but the benefits include
less pressure on all stakeholders and a resulting product that will satisfy the requirements.
Poor planning and insufficient updating of project management plans are common reasons for
cost and time overruns.
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26. You want to perform active risk acceptance. What should you do?
Create contingency reserves in resources, money and time.
Develop a plan to minimize impact in case that an identified risk occurs.
Develop a plan to minimize the probability of occurrence for identified risks.
Make additional resources available to speed up the project.
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27. A project manager made 3-point estimates on a critical path and found the following results:
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Assuming 3 sigma precision level for each estimate, what is the standard deviation of the allover
path?
App. 4.2 days
App. 5.2 days
App. 6.2 days
You can not derive the path standard deviation from the information given.
See
When do bidder conferences normally take place?
28.
After the contract has been awarded to keep alternatives open.
After submission of bid or proposal, but before contract award.
Prior to the submission of a bid or proposal by the bidder.
After technical meetings with bidders to discuss contract requirements.
See
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29. What is defined by control limits?
A measuring instrument solely used to describe process capability. The process is found
capable if the 3 sigma range is exceeded by not more than 0.3% of a tested sample lot.
The limits of the six sigma area on either side of a control chart to plot measured values; data
found outside the area are out of specification and can lead to rejection of an entire batch.
The area consisting of typically three standard deviations on either side of a mean value of a
control chart to plot measured values found in statistical quality control
The area consisting of typically three standard deviations on either side of a mean value of a
control chart to plot measured values found in quality assurance
See
The scope baseline consists of what?
30.
Scope statement, WBS, and WBS dictionary
Cost baseline, quality baseline and schedule baseline
Configuration management plan and configuration identification document
Procurement statement of work and project scope statement
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31. Activity 1 has a duration of 20 days, activity 2 of 10 days, activity 3 of 5 days and activity 4 of 6
days.
What is the minimum total duration between the milestones A and B?

36 days
37 days
39 days
42 days
See
Which tool and technique is used in the processes Create WBS and Define activities?
32.
Nominal group technique
Human resource assignment
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Brainstorming
Decomposition
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33. Which of the following statement(s) on whistleblowing is/are not true?
a. It is a term used to define an employees decision to disclose information on unethical, immoral or

illegal actions at work to an authority figure.
b. An employee should always discuss the matter with people external to the company before following
the "chain of command" and discuss it with the immediate superior.
c. The consequences of whistleblowing are often extreme and might include being branded as an owner of
bad judgment, layoff, civil action and imprisonment.
d. Carefully performed whistleblowing can lead to the end of unethical business practices.
b, c
c, d
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Attribute sampling is the process of assessing whether results conform to specifications or not.
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Prevention means keeping errors out of the process by applying actions before the process
starts changing its input.
Variables sampling means that the result is classified into one of the 3 categories:"acceptable"
- "acceptable after rework" - "rejected".
Inspection is often mainly done to keep errors out of the hands of the customer instead of as
a means of process control.
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35. Which statement describes best why you should document assumptions?
Assumptions might prove to be wrong. Knowing which assumptions were incorrect allows
baseline adjustments in case of project crisis.
Assumption analysis is a valuable tool and technique to explore the validity of assumptions
during risk identification.
Assumptions limit the project management team's options for decision making because they
can not be controlled by the team.
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In case of schedule or budget overruns, the documentation of assumptions supports a clear
assignment of responsibility.
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36. Which is normally not regarded as an element of cost of quality?
Prevention costs
Maintenance cost
Appraisal costs
Failure costs
See
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37. You have recently been assigned as a project manager to a new B-O-T (build, operate, transfer)
capital project. Reviewing the initial documentation you found out that it has been calculated with a
very small margin during operations of its product for the shareholders. What should you do?
As you are not responsible for lifecycle costing, you don't have to worry about operation
profits. Focus on project costs from initiation through handover.
Ensure maximum profits by buying the best and cheapest items, components and
modulespotentially from a big number of different suppliersand integrating them.
Create a realistic plan broken down to a sufficient level of detail. Perform all risk management
processes. Ensure real-time communications with all stakeholders.
Try to get a second project manager assigned to share decision making and accountability to
shareholders with the person.
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38. A project is handled by departments of an organization and expedited by a project coordinator.

Which of the following statements is most likely to be true?
The performing organization is a weak matrix.
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The performing organization is doing "management by projects".
The performing organization is a strong matrix.
The performing organization is projectized.
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39. You are project manager in a global project with a team consisting of people from various countries.
What can you try to prevent misunderstandings due to cross-cultural differences?
Use all communication methods available that are suitable for the team and follow up in
writing when communicating verbally. Remember that cultural and individual diversity may
help project teams solving unforeseen problems during the course of the project.
When you are about to form a team for your project, keep in mind that some cultures are
developed, others are more primitive. Some have values, some not. You should consequently
avoid choosing members from countries with cultures that are not similar to your own.
Cultural dilemmas can prevent any project from being successful. They should therefore be
smoothed or suppressed so as to make sure that they cannot disrupt project work. Your effort
should concentrate on communication that can help reach that goal.
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As norms regarding communication habits differ significantly across various cultures,
communicating between people from different countries should only be done using language.
The nonverbal dimension simply bears too many risks.
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40. Which statement on conflicts is true?
Conflict resolution should focus on people, not issues.
Conflict is natural and forces a search for alternatives.
Conflict should always be handled in private and not in the team.
Too much openness is a common cause of conflict.
See
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41. A change request in a project has been rejected some weeks ago. Yesterday, the project manager
found out that it nevertheless has been implemented by the team members, who knew of the
change request, but not of the rejection.
In order to avoid such a situation, rejected change requests should be consistently communicated to
stakeholders through which process?
Report performance
Verify scope
Perform integrated change control
Monitor and control risks
See
42. What is a trigger in project risk management?
An expected situation causing an unidentified risk to occur
A warning sign that a previously identified risk might be occurring or has occurred
An unexpected situation causing an identified risk to occur
An unexpected situation causing an unidentified risk to occur
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43. According to the project plan, a contractor is scheduled to deliver some software components today
afternoon. A regular payment is due to be made to this contractor tomorrow.
You and your project team received a note this morning informing you that the software delivery
will be delayed by 2 weeks.
What should you do right now?

You should delay the payment also for 2 weeks.
You must immediately find a different contractor.
You should conduct a meeting with the contractor to resolve the delivery issues before making
the payment.
You should make the payment and reschedule the project plan.
See
44. In a software company a large number of simultaneously performed projects utilize the same
groups of human and other resources.
What is the term commonly used for this situation?

Concurrent engineering
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Resource over-allocation
Resource pooling
Program management
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45. What does the acronym RACI commonly stand for in project management?
Responsible, Accountable, to be Consulted, to be Informed
Remote, Attached, Connected, Integrated
Risk Analysis and Caution Initiative
Randomly Accessible Cashflow Information
See
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46. You have used estimates made by your team members and applied the critical path method to
compute a network logic diagram for your project. Then you found out that it cannot be sufficiently
optimized for scarce resources and fast progress towards a given deadline. What should you do
next?
Apply resource leveling heuristics to uncritical activities only.
Reduce estimates on duration and work efforts by an adequate percentage.
Apply Three-point estimation and critical chain project management.
Remove physical constraints and replace hard logic with soft logic.
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47. Liquidated damages (LDs) are contractually agreed payments in order to...
...give the contractor an incentive to meet an aggressive schedule or challenging quality

objectives.
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...penalize the contractor for late completion of a project or failure to meet specifications.
...cover the customer's costs caused by late completion or failure to meet specifications by the
contractor.
...make a bid or proposal binding for the offerer while the customer has time to select among
various bidders.
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48. What should not be covered by a risk management plan?
Roles and responsibilities for handling project risks
Timing of project risk management activities
The methodological approach used for risk management
Individual risks and potential responses to them
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49. You are assigned as the project manager to a project which had a one-time cost variance in the past
caused by unexpected rework which has meanwhile been finished. You perform earned value
analysis and get the following results:
EV: 250,000; PV: 200,000; AC 275,000
BAC is 500,000.
What is right?
EAC = 550,000
EAC = 525,000
EAC = 500,000
EAC = 425,000
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50. An estimation has been made that the construction of a residential home will cost a certain amount
per square foot of living area. This is an example of what type of estimating?
Analogous estimating
Bottom-up estimating
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Top-down estimating
Parametric estimating
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51. What is true for prototypes?
Prototyping causes significant costs and should be avoided wherever possible.
They are tangible and allow for early feedback on requirements by stakeholders.
Prototypes are mostly developed toward the end of a design or build phase.
Prototypes increase the risk of misunderstandings between developers and users.
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52. What is a constructive change?
A change request that helps improving the project and its product, service or result and is
discussed generally in a friendly style.
A direction by the buyer or an action taken by the seller that the other party considers an
undocumented change to the contract.
A field change or ad-hoc change mandated by the project customer in a public construction
project.
A change request which will lead to the re-construction of an older version of the project
performance baseline by the contractor.
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53. Which of the following is generally not regarded to be a motivator according to Frederick Herzberg?
Working conditions and interpersonal relations
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Responsibility for enlarged task
Interest in the task
Recognition for achievement
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54. What is true for modern project management? Project managers need...
... to have a strict standing in negotiating
... to show experience in tricking business partners
... to be team players and facilitators instead of "bosses"
... to be strongly linked to local traditions
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55. You are the project manager in an engineering project and have recently signed a contract with a
software vendor for the development of a complicated control solution. The software will be used to
control machinery equipment which your project team is currently developing. The contract is a
lump-sum contract. The contractor has target cost estimated which seem rather low to you. Which
of the following statements is not true for this situation?
It is the contractor's risk in this type of contract that their profit may vanish if costs have been
underestimated.
This form of contract should only be chosen when all the requirements for the building of the
product are well-known by all parties involved.
In a fixed-price contract, change requests can cause issues regarding additional time and
extra costs for the changes to be applied.
It is likely that your organization may have to assume any unexpected additional costs for the
software development.
See
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A review to determine whether of project activities comply with organizational and project policies,
processes, and procedures is commonly called
56.
Quality auditing
Inspection
Quality testing
Reject screening
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57. Which of the following is true regarding the code of accounts?
It allows one to easily identify the breakdown level of the item in the resource structure.
It describes the coding structure used by the performing organization to report financial
information in its general ledger.
It is the collection of unique identifiers generally assigned to WBS items.
It defines ethical behavior in the project and the responsibilities to the customer and the
profession.
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58. You are the manager of your company's project management office. The company is running many
concurrent projects; most of them share a resource pool of technical staff. Understanding how
resources are utilized across projects has been found essential to overall project performance,
including cost effectiveness and profitability.
This morning you received a message that the resource pool members will be unable to perform as
planned for the next months because the overall work load has grown too high and while delays are
adding up, the morale of the staff is going down.
What should you do next?

Ensure that quantitative information for all projects is being made available in a uniform and
reliable fashion and verify that the project management methodology is adhered to. Then
consolidate the information to get an understanding of the problems related with the use of
shared resources.
Implement an enterprise project management software solution which is able to level the
human resources across the various projects and which has the capability to model resource
assignment on a percentage level thus optimizing resource utilization for the overall
organization.
Do nothing related to the described problem unless you are explicitly requested by the
organizations upper management. Supporting decision making on the level on which project
portfolio management is done, is not the project management office's business.
Evaluate project management software which supports planning and scheduling across
enterprise-wide project portfolios. Avoid managing the availability of shared enterprise
resources for the projects run by an organization because this is not the business of a project
management office.
See
You have been criticized that certain specifications in your scope statement do not pass the test for
SMART objectives. What are SMART objectives?
59.
Objectives specified in far more detail than necessary for a execution of a successful project.
Easily achievable objectives which help you reducing the pressure on yourself and the team.
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Objectives that should be achieved in order to attain formal recognition by both the customer
and the project sponsor.
Objectives that are described using specific, measurable, assignable, realistic and time-related
specifications.
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60. You have been assigned as a project manager to a software project. While you and your team are
working on a WBS (work breakdown structure), estimations for activity durations based on the
activity list vary significantly. Which additional documents may help you clarify this situation?
Milestone list and scope baseline.
Project schedule network diagrams and human resource plan.
Activity cost estimates and scope baseline.
Activity attributes and project scope statement.
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61. You are performing earned value technique on your project.
After budget approval, an additional and unexpected cost item has been identified, which made the
project more expensive some weeks ago. The item has meanwhile been paid by the project team,
and it is expected that for the remaining duration of the project, costs will be as budgeted.
In this case, which is the best formula to calculate EaC (Estimate at Completion)?
EaC = BaC - CV
EaC = BaC / CPI
EaC = AC + BtC / CV
You can not compute the EaC.
See
62. During a company event, you had the opportunity to talk to a colleague project manager. He told
you that in his current project actual costs are 15% under cumulated costs budgeted for today.
What do you think?

The information given to you by the colleague is not sufficient to assess project performance.
The project will probably be completed with total costs remaining under budget until the end.
A significant cost increase during the further course of the project will probably bring the costs
back to baseline level.
Original cost forecasting and budgeting for the project must have been poor to allow this
variance.
See
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63. What is the meaning of a concept called the "Journey to Abilene"?
Project managers should visit their customers far more often than what is usual in order to
avoid misunderstandings and bad emotions.
International projects may have an increased need for traveling which can lead to additional
costs and troubles with time zones.
Committee decisions can have the paradox outcome, that a jointly made or approved decision
is not desired by any individual group member.
A project is a temporary endeavor undertaken to create a unique product, service or result.

Repeating it would be similar to making the same journey twice.
See
64. Which of the following statements describes best the relationship between project phases and the
project life cycle?
The project life cycle includes the time when the project is performed and the expected
product lifespan after that.
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In project management, the sequence of project phases and phase gates is often referred to
as project life cycle.
The project life cycle is regarded as a sequence of project activities while phases are defined
to control overlapping activities.
The project life cycle describes how iterations of project management processes are used
when a project schedule is developed.
See
Which is an appropriate order in most project situations for the development of scope-related
documents?
65.
1. Project SOW (statement of work), 2. Project charter, 3. Project scope management plan, 4.
Project scope statement, 5. WBS (work breakdown structure) and WBS dictionary.
1. Work breakdown structure, 2. Scope statement, 3. Project charter, 4. CSOW (contractual
statement of work), 5. Contractual work breakdown structure
1. Feasibility study3. Contract, 4. CWBS (contractual work breakdown structure), 5. Scope of
work descriptions, 6. PID (project initiation document).
1. BOM (Bill of materials), 2. CAP (control account plan), 3. Project charter4. Change
management plan,5. Scope baseline.
See
66. What is the S-curve in project management?
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A graph that is generated if a normal curve is integrated.
A graph that is to be integrated to generate a normal curve.
A metaphoric description of the short term uncertainties that are present in every project.
The graph that describes the typical growth of earned value during the course of the project.
See
An output of the process Estimate activity resources is a document called "activity resource
requirements". It identifies the types and quantities of resources...
67.
...while the term resources is limited to equipment and materials.
...required for each activity in a work package.
...while the term resources is limited to human resources.
...to be obtained solely from the performing organization.
See
Page 85 of 90
Mohamed Nazaruddin

What is not the purpose of configuration control when configuration management is applied in a
project?
68.
Verification that the configuration identification for a configuration item is accurate, complete,
and will meet specified program needs.
Ensuring that proposed and approved changes to configuration items are fully analyzed.
Ensuring that proposed and approved changes to configuration items are fully documented.
Managing and controlling the frequently requested changes to a project by applying agreed
rules.
See
Which statement describes best the meaning of the term cost baseline?
69.
A cost baseline is always created by translating time-phased cost information into cost data on
activity or work-package level.
A cost baseline is an approved time-phased budget that will be used to measure and monitor
cost performance on the project.
Data to draw a cost baseline can be easily generated and updated as necessary from
information related to actual project cost.
A cost baseline is usually displayed in the form of an inverse S-curve drawn from the
beginning of the project until data date.
See
70. Which is not true in regard of RoI (return on investment) for a project?
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Mohamed Nazaruddin

It defines the cumulated net income from an investment at a given point in time or during a
defined period.
It includes investment, direct and indirect costs and may include allowances for capital cost,
depreciation, risk of loss, and/or inflation.
It is most commonly stated as a percentage of the investment or as a dimensionless index

figure.
It is the time when cumulated net income is equal to the investment.
See
A project sponsor requested earned value data on two concurrent projects from the project
managers. Both projects are regarded as equally important and strategically beneficial and have
71. been finished by over 80%. He received the following information:Project A: PV: $1,800,000 EV:
$2,300,000 AC: $2,100,000Project B: PV: $2,000,000 EV: $1,500,000 AC: $1,600,000The
sponsor considers to shift some resources from project A to project B to speed up the second
project which is currently behind schedule. What is the most likely outcome of such a measure?
Changing team assignments during late course of a project typically increases cost efficiency.
Changing team assignments during late course of a project typically increases time efficiency.
According to the law of diminishing returns, the consolidated cost variance of the two projects
will decrease.
According to the law of diminishing returns, the consolidated cost variance of the two projects
will increase.
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Mohamed Nazaruddin

See
72. Which of the following statements describes best the relationship of quality and grade?
Low grade is always a problem; low quality may be overcome by a good rework and repair
process.
Grade is a category or rank given to entities having different functional requirements but the
same need for quality.
Both quality and grade can often be improved through intelligent measuring, testing and
examining.
Low quality is always a problem as it bears on the ability of an item to meet requirements; low
grade may sometimes be acceptable.
See
Network templates which contain only portions of a network are often referred to as
73.
Sub-networks or fragment networks
Subprojects
Programs
WBS items
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Mohamed Nazaruddin

See
74. You have been asked to calculate the internal rate of return (IRR) of a project? What will you
assess?
The time period needed to pay back the investment from a project when future income is
discounted.
The inherent discount rate or investment yield rate produced by the project's deliverables over
a pre-defined period of time.
The rate of negative risk that can be accepted for a project without turning the expected net
present value negative.
The expected benefit from a projects deliverable calculated as a percentage of the original
investment over a specified time period.
See
You just created the following network logic diagram to describe the planned flow of activities for
your project which will start tomorrow:
75.
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Mohamed Nazaruddin

Which potential inconsistency in the diagram should you solve right now?
Activity E is open ended ( a "dangle") in relation to the finish milestone path convergence.
Activity F is open ended in relation to the path divergence after the start milestone.
You cannot calculate a critical path when lags and/or leads are calculated in percent.
Activities E to F need another task drawn as a hammock to calculate level of effort.
Page 90 of 90

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Mohamed Nazaruddin

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2. Through which channel, a perfect communication can take place between

3. If a Project Manager Places a purchase order for an equipment, which of the

4. What are the major processes involved in the management of project

5. Which one of the following is not essential in creating an effective

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6. Which of the following is more efficient in handling complex projects

8. In which particular phase do the project sponsors have the greatest

9. Which of the following project management tools cannot be use by a project

10. The purpose of decomposition process is to construct:

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11.Which of the following statements is not true?

A. Standards and regulations are mandatory.

12. Where is the result node (outcome) shown on a typical Ishikawa or

13. A project management team has subcontracted work to a service company.

14. What are workarounds in project management?

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15. What are faits accomplis?

16.During execution of a project which is performed for a customer on a T&M

What should the project manager do?

If tasks are scheduled to begin at early start date, what is true?

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18. Which of the following is not considered to be part of Project Resource

19. Toolsand Techniques of Risk Response Planning include

EV: 100,000; PV: 125,000; AC: 100,000

A. The project is on schedule but costs exceed budget.

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22. What are "Global Literacies"?.

23. During a project the scope of product purchased on a cost reimbursable

Which of the following statements is not true?

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26. What is active risk acceptance?

27. Project costs are over budget when

28. Which of the following statements is not true?

29. What is a quality audit?

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What is the preferred solution to handle the problem?

A. Try to obtain additional budget and time.

31. Activity 1 has a duration of 20 days, Activity 2 of 10 days, Activity 3 of 5

32. Which of the following statements is true concerning Scope Definition?

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34. Which of the following statements is not true?

35. Why should assumptions be documented?

36. All the following statements are true except

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37. Which of the following statements about diagramming methods is not

38. A project is managed by a project coordinator. Which of the following

39. Which of the following statements concerning cross-cultural differences is

40. What are dummy activities?

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42. What is a trigger in project risk management?

43.According to the project plan, a contractor is scheduled to deliver some

How should the project management team react?

A. The project management team should delay payment for 2 weeks.

44.In a software company a large number of simultaneously performed

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46. What is not handled as a constraint in project management?

47. A precontract agreement that establishes the intent of a party to buy

48. What should not be part of a risk management plan?

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EV: 250,000; PV: 200,000; AC 275,000

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53. Which of the following is generally not regarded to be a motivator according