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Nineteenth Edition

Farndales

PMP and CAPM
Preparation Guide

Nineteenth Edition
To accompany the PMBOK Guide 4th ed.
Keith Farndale, MBA, PEng, PMP, EVP

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 1
INSIDER TIP: Be sure to enroll for our occasional PMP
Intelligence messages! Keith Farndale sends you
reports from other exam writers, answers questions
about exam content, and passes on the latest
information about the PMP and CAPM exams.
Go to http://www.procept.com/ and sign up for the e-
newsletter.
And at http://www.procept.com/pmresources.html, you
can also access our free Practice spreadsheet for the
on-line PMP application.
Be sure to let us know how the exam goes for you!

Copyright 2011 by Procept Associates Ltd.

Anybody can access the latest version of this booklet in PDF form for free. Send your friends to
www.procept.com. The copyright holder permits the downloading of this document for personal use in
both paper and electronic forms, but reserves all other rights pursuant to the Copyright Act. Commercial
use is only allowed by written permission.

How to reach us:


Procept Associates Ltd. Telephone: (416) 693-5559
1234 Kingston Road, Suite 125 Web site: www.procept.com
Toronto, Ontario M1N 1P3 E-mail: info@procept.com
Canada

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 2
Contents
The Purpose & Scope of this Booklet 4
About the Author 4
About the PMP and CAPM 5
Benefit from our Preparation Courses 5
The PMP and CAPM Examinations 6
The Examination Process 6
The PMP Examination 6
The CAPM Examination 7
The Nature of the Questions 8
How to Answer Multiple-Choice Questions 9
Recurring Project Management Principles in the Exam 9
Sample Tests Can Help You Prepare 10
Studying for the PMP and CAPM Exams 10
Exam Content 12
Knowledge Areas 14
PMP and CAPM Practice Exam 17
Sample Questions 18
Answers to Sample Questions 73
Where to Get More Workbooks and Sample Tests 81

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 3
The Purpose & Scope of this Booklet
This booklet will help you prepare for the Project Management Professional and
the Certified Associate in Project Management examinations. It is intended to
supplement information published by the Project Management Institute (PMI).
The early part of this booklet describes the examination and the examination
process, provides tips for answering multiple-choice questions, and suggests a
study process. The final section of the book contains a practice exam, followed by
the answers to the questions. Unlike in the real exams, our questions are
organized according to the knowledge areas of A Guide to the Project
Management Body of Knowledge (PMBOK Guide). Grouping project
management knowledge into the knowledge areas helps focus your thinking about
project management, and helps you organize your preparations for the
examinations.
Of course, it is essential for you to visit the PMI web site, www.pmi.org, and we
suggest that you talk to others who have taken the exam.

About the Author


Keith Farndale, MBA, P.Eng., PMP, EVP is President of Procept Associates Ltd.
a team of trainers and consultants in project management, business analysis and
IT service management based in Toronto, with customers across Canada, and in
Africa, USA, South America, UK and the Middle East.
Procept offers regularly-scheduled training, including PMP exam preparation,
through the University of Toronto, University of Waterloo, Simon Fraser
University, University of Calgary, Dalhousie University, Bank of Montreal, TD
Bank Financial Group, AMEC, Land Surveyors associations, and to other
organizations in Canada and abroad.
Keith is an adjunct lecturer in project management in M.Eng. program at the
University of Toronto.
Prior to his current roles, Keith enjoyed a career in the management of industrial
engineering and construction projects. He has been President of the Southern
Ontario Chapter of the Project Management Institute, receiving an Outstanding
Contribution Award. He is active in the Project Management Association of
Canada (part of IPMA) and AACE International.

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 4

About the PMP
The Project Management Professional began in 1984. It requires prior experience
leading and directing project management tasks, a minimum amount of project
management training or education, and requires passing the examination. The
exam consists partly of knowledge questions that test your recall, and with many
more situational questions that test your judgment at applying that knowledge.

Salary surveys by PMI indicate that PMP - designated project managers earn
higher salaries than project managers without the designation.


About the CAPM
The Certified Associate in Project Management was introduced in 2003 and
revised in 2005. It is intended to be an entry-level credential. Compared to the

PMP exam, it has only recall-based knowledge questions, and only a very few

situational questions. The CAPM is designed for people who have insufficient

experience to qualify for the PMP exam, and who may have little or no project
management experience.
Both exams test your knowledge of generally accepted project management
principles and techniques that can be applied in any industry.

Benefit from our Preparation Courses


Consider attending our 6-day Comprehensive Project Management Seminar,
available directly from Procept or through one of our university partners. This
course can be presented by us as an in-company course anywhere.

Or consider Procepts intensive 3 to 5 day PMP and CAPM Preparation
Seminar. This course assumes that candidates are well along in their preparation
and just need a cram review. It is available as an in-company course anywhere.
For example, we regularly present this course to TD Bank and Bank of Montreal.
For more information, go to www.procept.com, info@procept.com, or call us at
416-693-5559 for details about these or our many other courses.

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 5

The PMP and CAPM Examinations
The Examination Process
The examination is administered at a computer workstation at Prometric
testing centres around the world. Go to www.2test.com to see the list of
locations. Be aware that your chosen centre may be booked up, and you may
have to wait 4-8 weeks to get a booking. Exam-takers report that the on-screen
examination process works very well.
The exam includes an initial on-line tutorial to make you familiar and
comfortable with the process. Do it! In fact, you can ask for a second tutorial
session.
At any time, you can flag questions, and you can go back and review the
flagged questions, or review all of the questions. When you reach the end of
the exam, you will be prompted with choices to review the questions you had
marked as well as the questions you have not yet answered (highlighted in
red), or to finish the examination. When you finish, you will receive your
result immediately.

The PMP Examination


The PMP examination lasts 4 hours and consists of 200 questions. Many
people need only about 3 hours to complete the exam. You will have time to
SLOW DOWN and read the questions properly. But carefully track your time
occasionally some people do take the whole 4 hours for their first pass
through the exam.
The PMP passing grade is approximately 61%. PMI has said they wanted to
design the exam so that about 70% to 75% of exam-writers will pass the
exam.
Prior to the PMP exam change in September 2005, the average grade had been
reported by PMI to be 73%. PMI reported to us in 2003 that 79% of first-time
PMP exam-takers passed the exam. For our own Procept courses, we have
documented that more than 94% of our reported candidates have passed the
exam on their first attempt.
After you attain your PMP designation, you will be required to follow PMIs
re-certification process in order to retain the credential. Re-certification
requires that you be engaged in professional development activities such as
attending further courses. Courses you take prior to your PMP do not count.

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 6
Each PMP examination question relates to one of the five process groups

in the PMBOK Guide. The questions are selected in the following proportions:
Initiating 13%,
Planning 24%,
Executing 30%,
Monitoring and Controlling 25%,
Closing 8%.

DID YOU KNOW? Statistical results in past years show a positive


correlation between a candidates years of experience in a project
management environment, and the likelihood of passing the exam.

The CAPM Examination


The CAPM examination is shorter, lasting 3 hours with 150 questions.
The passing grade is 65%. Results have not been made available to indicate
what proportion of candidates actually passes the exam.
There is no re-certification for the CAPM the designation simply expires
after 5 years. PMI expects that by that time you will be ready to write the
PMP exam.
The proportions of CAPM exam questions are as follows:
Framework and processes (PMBOK Guide chapters 1-3) 19%
Integration (PMBOK Guide chapter 4) 11%,
Scope (PMBOK Guide chapter 5) 11%,
Time (PMBOK Guide chapter 6) 11%,
Cost (PMBOK Guide chapter 7) 9%,
Quality (PMBOK Guide chapters 8) 7%
Human Resources (PMBOK Guide chapter 9) 7%
Communications (PMBOK Guide chapter 10) 7%
Risk (PMBOK Guide chapter 11) 11%
Procurement (PMBOK Guide chapter 12) 7%

The Nature of the Questions


The questions have been carefully prepared and polished, with input from
educational and psychometric testing experts. The examination is designed to

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 7
have a high degree of reliability and validity. The question content has been
selected to match the knowledge that project management practitioners actually
use in their jobs.
The questions will not be specific to any one industry. Nor will the questions
be specific to the United States.
The language will be straightforward, without double negatives and without
unfairly confusing or ambiguous language. Most of the questions will have
only two or three lines of text. A few will be very long.
Each question has four different answers: (a), (b), (c), (d). Only one answer is
correct. The choices will NOT include (a) and (b), or all of the above, or
none of the above.
There will only be a very few quantitative questions, and they will require
only very quick and easy arithmetic. Our exam-writers suggest using the on-
screen calculator even for the easiest calculations. It is surprisingly easy in the
pressure of an exam, for 2+2=5.
Exam writers report that there are about 5-12 questions about the inputs / tools
and techniques / outputs of the 42 PMBOK Guide processes in the PMP
exam, more in the CAPM exam. A few may be direct questions such as
which is an output from scope definition More of them will be less direct
questions such as you are preparing a performance report; what information
do you need, or You are closing out the project, which inputs do you
need?
Acronyms will be spelled out in full, except for the earned value questions.
Sometimes an answer will be a true statement, but will be the wrong answer to
the question.
Be sure to study the inputs, tools and techniques, and outputs for each

detailed process in the PMBOK Guide. Dont try to memorize them, just feel
comfortable with them, so they make sense.
For the PMP exam, most of the questions will be situational rather than
knowledge (i.e. recall) based. This type of question presents a situation and
asks you what should be done next, or what should have been done earlier to
avoid a problem that developed. These questions require judgment based on
PM experience. The CAPM exam will have very few situational questions.
Apparently there are reasons (from educational testing technique) that some
will be trick questions. If a question seems too simple, maybe it really is
that simple. For example, what is the EV when the PV is 600, the EV is 300,
and the AC is 400? Or, given EV of 32 thousand, PV of 40 thousand and AC
of 35 thousand, what is the PV?
Some of the situational questions will contain lots of irrelevant information.
Sometimes only the last sentence will have any relevance to the answer!

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 8
A few questions will seem to be out of the blue, with terms that are not in

the PMBOK Guide, and appear to be from general management.
Important terms like EXCEPT, FIRST, and NOT may be in upper case.

How to Answer Multiple-Choice Questions


Experience indicates that a knowledgeable and experienced candidate should be
able to delete two of the answers as wrong, and then have a more difficult time
selecting between the remaining two. (Some recent exam-writers say that about
60% of the questions are like that.) You may feel that all four answers could be
correct, depending upon the circumstances. Or you may feel that all of the
answers could be wrong, depending upon the circumstances. Choose the best
answer. If you cannot decide, guess from one of the remaining choices. Leave no
questions unanswered!
Read each question slowly and carefully, and read it more than once. Think about
what might be the right answer before reading them. Then read all of the answers
do not jump to the obvious answer. You have plenty of time. However, do not
read too much into the question. Dont think that just because the question and the
answer look easy, that there must be a trick.
Do not think narrowly from the point of view of your companys project
management environment, or from your previous employment. Think of generic
project management practice. It is very important to understand and apply the
processes and definitions in the PMBOK Guide.
When in doubt, most people have a built-in bias to select an answer from the first
couple of choices instead of from the later ones. Resist that tendency!
Take a stretch break every 15 minutes take 60 seconds to stand up and stretch,
take a few deep breaths, and re-centre. And also take a proper 5 minute break half
way through, to sign out of the exam room, walk around and have a snack. But be
aware that your time will keep ticking.
Dont change your answer later unless you have a new insight. A study has shown
that answer changes are 3 times more likely to be wrong than to be right!

Recurring Project Management Principles in the Exam


You can expect several questions to come from the belief that the following are
all-important project success factors:
The projects alignment with the strategic objectives of the performing
organization.
The communication role of the Project Manager. (Communication should take
about 90% of her time!)
The role of the Work Breakdown Structure role in planning and controlling
the project.
Plan. Plan. Plan.

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 9
Get the project team involved in planning.
Use lessons learned and historical records.
The project manager assumes responsibility for the whole project.
Pay more attention to closing.
Control the growth of scope.

Sample Tests Can Help You Prepare


Most third-party sample tests have not been subject to the rigorous psychometric
and statistical reviews of the real exam. They have not had the same benefit of the
large cash flow that the real exam has generated for PMI. Some practice test
questions are poorly worded and sometimes the answers are simply wrong. But
many exam candidates find reviewing sample tests helpful in three ways:
First, the review ensures that they cover the exam content sufficiently.
Second, it provides practice at answering multiple-choice questions.
Third, at least some of the sample questions will be a close match to real exam
questions.
See Where to Get More Workbooks and Sample Tests, at the end of this
document.


Studying for the PMP and CAPM Exams
People often ask how much study time they should plan to expend, in addition to
a preparation course. It all depends. Some people simply take one of our project

management courses, read the PMBOK Guide, and complete our sample
questions later in this booklet. We know that others spent as much as 250 hours of
study. More typical durations were about 25 to 60 hours.
Only you can decide, based on how comfortable you feel with the content, how
you do with our sample questions, and how much of the processes have you been
exposed to at work.
Your most important reference is A Guide to the Project Management Body of

Knowledge (the PMBOK Guide).
The project management body of knowledge is an inclusive term that describes
the sum of knowledge within the profession of project management. The book is

only a guide to the subset of the PMBOK generally recognized as good
practice. It provides a good framework for the areas of knowledge, which you
can then read about in more detail in other reference books.

Almost all of the exam questions are on a topic that is mentioned in the PMBOK
Guide, but the Guide may not give you enough information to answer the
question. As an example, Bill Duncan says the Guide discusses critical path but

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 10
doesnt tell you how to calculate it. The exam normally has questions that require
you to calculate the critical path.

Perhaps the most important part of the PMBOK Guide is the GLOSSARY.
Although the examination avoids magic word questions, it is important to know
PMIs exact meaning of a word or phrase when answering a multiple-choice
question. Also, there are words defined in the glossary, that appear on the exam,

but that are not found in the text of the PMBOK Guide. Assuming that you have
already completed a curriculum of project management courses, we suggest the
following step-by-step study process:

1) Study the PMBOK Guide.
2) Join a free discussion group. Go to www.groups.yahoo.com, become a
Yahoo! Member, and join the PMHub group
3) Try some sample tests.

4) For the areas where you tested poorly, and for topics in the PMBOK Guide
which you did not thoroughly understand, read further references books. Be
aware of the eReads program of books free for PMI members. Take notes
for subsequent review.
5) Read discussion forums, such as at www.PMHub.net.
6) Attend a PMP examination preparation class, such as our three to six day
courses described earlier in this booklet.
7) Apply for the examination with PMI as soon as you can claim the 35 hours
of training, so that you put yourself under pressure to complete your
preparation. You can find the location of test centers, and you can schedule
and reschedule, at www.2test.com. If you want to practice the assembly of
your application prior to actually applying on-line, you can use our free
application practice tool at our PM Resources page at www.procept.com. PMI
will reply to your application in about 2 business days.
8) It is important to report correct information on your exam application. We
quote PMI:
Candidates who submit PMP credential applications with errors such as
miscalculated dates/degrees for attained education, incorrect start and end dates on
Project Management Experience Forms and incorrect dates of completion for project
management education received will fail the audit and will not be permitted to test.
9) PMI audits a small proportion, less than 5% of exam applicants. If you are
audited, they will tell you immediately upon receipt of your application and
payment, and before you are allowed to book the exam time. PMI will want to
verify (1) the information on your experience verification form, (2) proof of
your 35 hours of PM training, and (3) a copy of your bachelors degree or
transcript (if applicable).
10) Book your examination for a time of day when your biorhythms are peaking.
(Some of us are best in the morning, others may be good in the late afternoon
or evening.)

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 11
11) Try to take the exam within 1 month after the course. People who have waited
longer 3 months or 1 year say it took a lot of extra work re-learning the
content.
12) Visit the exam site to see how long it takes to get there, where to park, and
what the testing room looks like. This will reduce anxiety.
13) Avoid a heavy meal the evening before the exam. Choose a dinner high in
carbohydrate and fiber, and low in fat. Avoid alcohol in the period 48 hours
before the exam.
14) Do not study the night before the exam. Relax.
15) Do not skip breakfast the morning of the exam. Have a breakfast high in
protein and complex carbohydrates with little or no sugar. Avoid caffeine and
sugar within three hours before the exam. The stimulating effect is followed
by a loss of concentration and energy about two hours after consumption.
16) Drink water during the exam. Dehydration is known to impair thinking. You
will not be allowed to take water into the exam workstation; you will be able
to drink it during breaks.
17) Bring earplugs to the exam centre. Some of the centres are noisy.

INSIDER TIP: According to adult educators, baroque and classical music,


and peppermint essence are known to sharpen the intellect. Listen to
Mozart while sucking on mints on the way to the exam! Another study
showed that chewing gum during an exam calms you down and raises your
test scores. No kidding!

PMP Exam Content


PMI has indicated the breakdown of PMP questions shown on the next page. The
CAPM has a different proportion, as described earlier in this booklet.

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 12
Initiating the Project 13%
Perform project assessment
Define high-level scope
Perform stakeholder analysis
Identify and document high-level risks, assumptions, and
constraints
Develop project charter
Obtain project charter approval
Planning the Project 24%
Assess detailed project requirements, constraints and
assumptions
Create the WBS
Develop a budget plan
Develop a project schedule
Develop a human resource management plan
Develop a communication plan
Develop a procurement plan
Develop a quality management plan
Develop a change management plan
Develop a risk management plan
Present project plan for approval
Conduct kick-off meeting
Executing the Project 30%
Obtain and manage project resources including outsourced
deliverables
Execute the tasks defined in project plan
Implement quality management plan
Implement approved changes
Implement approved actions and workarounds
Maximize team performance
Monitoring and Controlling the Project 25%
Measure project performance
Manage changes to the project
Ensure project deliverables conform to quality standards
Update the risk register and risk response plan
Assess corrective actions on the issue register
Communicate project status
Closing the Project 8%
Obtain final acceptance of project deliverables
Transfer ownership of deliverables
Obtain financial, legal, and administrative closure
Distribute final project report
Collate lessons learned
Archive project documents
Measure customer satisfaction

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 13
Knowledge Areas
Your best study guide is the structure of project management processes, and their

tools and techniques, inputs and outputs, as discussed in the PMBOK Guide. You

need not memorize the PMBOK Guide, but you must be comfortable with its
content the flow of the processes and their major inputs and outputs
The following list provides some insider tips.

Project Integration Management

INSIDER TIPS: Some questions, especially in Direct and Manage Project


Execution, may come from general management skills and therefore they
may not be specific to project management.

Be familiar with differences between project, program, portfolio.

Project Scope Management

INSIDER TIP: Historically, candidates have done well in scope management


questions.

Project Time Management

INSIDER TIP: Of course there will be questions on the Critical Path Method,
but there may be surprisingly few.

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 14
Project Cost Management
(about 20 questions)

INSIDER TIPS: Candidates from projects without rigorous cost management


may find these questions difficult.

At the beginning of the exam, draw typical earned value curves, with their
variances and acronyms, on the scrap paper supplied.

Expect lots of EV questions, but they will not be complex.

Although project selection is not part of project management in PMIs


view, project managers are expected to be familiar with cost-benefit
selection criteria including Net present value and Internal Rate of Return
concepts

Project Quality Management

INSIDER TIPS: Historically, candidates have done poorly in quality


management questions.

Questions will be either about quality philosophy, or about the quality tools.

In the past, some questions have appeared to be manufacturing-oriented.

Project Procurement Management

INSIDER TIPS: Candidates with no procurement in their projects may find


these questions difficult.

In a procurement situation, assume that you are the customer, not the
vendor.

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 15
Project Risk Management

INSIDER TIPS: Candidates who have little quantitative training may find
some of these questions difficult.

Dont get EMV (expected monetary value) confused with PV (planned


value) or NPV (net present value).

Project Human Resources Management

INSIDER TIP: Historically, candidates have done well in human resource


management questions.

Project Communications Management

INSIDER TIP: Historically, candidates have done well in communications


management questions.

Professional and Social Responsibility

INSIDER TIPS: This performance domain was added to the exam


specification in March 2002, and then was deleted in July 2011. The
content of questions on ethics, cultural sensitivity, negotiating, etc.
continues, either within the five process groups or identified as cross-

cutting skills. It is not specifically covered in the PMBOK Guide.

Review the PMI Member Code of Ethics and Professional Conduct at


http://www.pmi.org.

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 16

PMP and CAPM Practice Exam

1. Project Integration, Context, and Cross-cutting skills 29 questions


2. Project Scope Management 19 questions
3. Project Time Management 34 questions
4. Project Cost Management 33 questions
5. Project Quality Management 28 questions
6. Project Human Resources Management 33 questions
7. Project Communications Management 26 questions
8. Project Risk Management 29 questions
9. Project Procurement Management 31 questions

Notes
There are 262 questions. Allow yourself 5 hours 15 min. This practice test is a
little more difficult than the real PMP and CAPM exams, but the content you
are tested on is similar. There are two big differences:
The real exams are not organized by knowledge areas. We organized this practice
exam by knowledge areas to help you realize your weaker and stronger areas.
The real PMP exam has about 90% situational questions and 10% knowledge-
based questions. We designed this sample test to contain about 90% knowledge-
based questions to test you on the project management content. Combine the
project management content knowledge learned in our PM courses and tested in
this booklet, with your own PM experience, and you will do well on the
situational questions.

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 17
1. Integration Management, Context, Cross-Cutting Skills

1.1 As a Project Manager, you are most likely to have the strongest influence in an
organization which is:
(a) A balanced matrix
(b) A functional organization
(c) Projectized
(d) A strong matrix

1.2 Executing processes


(a) Recognize that a project or phase should initiate execution
(b) Coordinate people and resources to carry out the Project
Management Plan
(c) Devise and maintain a workable scheme to accomplish the business need
that the project was undertaken to address
(d) Identify variances from the Project Management Plan

1.3 Monitoring and controlling processes


(a) Recognize that a project or phase should initiate execution
(b) Coordinate people and resources to carry out the Project
Management Plan
(c) Identify variances from the Project Management Plan
(d) Devise and maintain a workable scheme to accomplish the business need
that the project was undertaken to address

1.4 You were a project manager replacing a legacy system as part of a Y2K
project. Your responsibilities included initiating preventive action in
anticipation of possible problems. Which process group covers this?
(a) Executing
(b) Monitoring and controlling
(c) Planning
(d) Closing

1.5 You are one of four full-time project managers in an organization all sharing
an Administration Officer. There are several projects per year that involve
about 25% of the organization's employees, however, these employees do not
report to you. Some of the PMs control their budgets; some do not. Your
organization can best be classified as:
(a) Functional
(b) A strong matrix
(c) Projectized
(d) A balanced matrix

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 18
1.6 Congratulations, you have been promoted to Manager of Continuous Process
Improvement. Your new work
(a) Is a project because the work will be performed within schedule and
cost constraints
(b) Is not a project because continuous improvement will continue
indefinitely
(c) Is a project because it is constrained by limited resources
(d) Is a project because improvements must be planned, executed,
and controlled

1.7 In a balanced matrix organization, which of the following is the least


important responsibility of the Project Manager?
(a) Work package definition
(b) Resource requirement definitions
(c) Communication of major milestones
(d) Personnel performance measurements

1.8 Being answerable for the satisfactory completion of a specific assignment is


called
(a) Formal authority
(b) Accountability
(c) Responsibility
(d) Fiduciary responsibility

1.9 You are responsible for the rehabilitation of a number of social housing
complexes in the same municipality. Your current assignment is
(a) Project management
(b) Functional management
(c) Physical asset management
(d) Program management

1.10 The following knowledge area is part of the closing process group
(a) Project communications management
(b) Project scope management
(c) Project cost management
(d) Project integration management

1.11 Close Project should take place:


(a) No earlier than two weeks after project completion
(b) Once, at project completion, including acceptance, documentation,
and capturing historical information
(c) At the end of each project phase
(d) Just before the end of the project, when the team is still available

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 19
1.12 The Project Statement of Work:
(a) Is an input to Project Management Integration
(b) Occurs during project execution
(c) Occurs the end of each project phase
(d) Is an output from Project Procurement management

1.13 Configuration Management:


(a) Directs the identification and documenting of functional and physical
characteristics
(b) Is the product-oriented creation of the WBS
(c) Is the set of drawings laying out the physical layout of the product
(d) Is a mechanism to track budget and schedule variances

1.14 A work authorization system provides:


(a) A means for effective internal coordination of the projects activities
(b) An audit trail of all work authorized from project initiation to
completion
(c) A means for communication of work activity between the project
manager and the performing organizational unit
(d) All of the above

1.15 A Project Charter is a document that is effectively a contract or agreement


about the project between two primary people. The two people are:
(a) Functional manager and work package leader
(b) Functional manager and project manager
(c) Project manager and project sponsor
(d) Project sponsor and customer

1.16 Project stakeholders may include:


1. users such as the eventual operator of the project result
2. those who want to impede the project
3. partners, such as in joint venture projects
4. possible suppliers or contractors
5. members of the project team and their unions
6. interested groups in society

(a) All
(b) Only 2
(c) 1, 3, 5
(d) 1, 2, and 3

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 20
1.17 Project management was born out of the need for a more efficient and
effective means to accomplish goals for work of a defined time duration.
Which of the following is NOT a criterion for using a project management
approach to perform work?
(a) Ad hoc undertaking concerned with a single definable end product
(b) Undertaking which is routine and frequently performed by the
present organization
(c) Undertaking which is of greater complexity of scope than normal
(d) Undertaking requiring quick response to change and value of time

1.18 Which is true of a project?


(a) Success is measured in terms of aggregate performance of portfolio
components
(b) Success is measured by the degree to which it satisfies the needs and
benefits for which it was undertaken
(c) Success is measured by product and process quality, timeliness,
budget compliance, and degree of customer satisfaction
(d) Success is measured by all of the above

1.19 Which is true of a program?


(a) Program managers monitor progress to ensure the overall goals,
schedules, budget and benefits will be met
(b) Program managers monitor aggregate performance and value
indicators
(c) Program managers monitor and control the work of producing the
products, services or results that the program was undertaken to
produce
(d) Program managers monitor all of the above

1.20 Your company produces custom-designed products for an international client.


When working with this company, there are often change requests. Two years
after a product was delivered to the client, a problem was brought to the
attention of your company. While undergoing repairs on the product, your
client discovered there was a discrepancy between the drawings and the
product and this made the repair process quite time-consuming. The client
seems less than enthusiastic about working with your company again. In
response to this situation, you should tell your sponsor:
(a) The client accepted delivery over two years ago and contractually you
are only responsible for repairs that are required within the first year
(b) In regards to the problem that occurred two years ago, just say oops
and tell the sponsor he should assure the client that this sort of problem
will never happen again
(c) With the upcoming project you will apply more rigorous configuration
management
(d) Tell the sponsor that it was a change control problem

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1.21 You are the Project Manager for a company that has experienced a significant
number of change requests on a project for an external client. Previous projects
for this client have also experienced numerous change requests and the final
product for every project has been delivered later than originally anticipated
and for a substantially higher cost than expected. You have received yet
another change request from the client for the current project. Under the
circumstances, your best course of action would be to:
(a) First, consult your team to determine the impact on cost, time, quality,
and other implications
(b) Advise the client that because there have been too many changes already
they are going to have to accept that some changes cannot be
accommodated
(c) Consider the impact of the change on cost, time, scope and other
implications before deciding whether to proceed with the change
(d) Accept that change is a necessary part of any project.

1.22 Ann Thracite, PMP is a mining engineer retained by a coal mine owner.
She provides engineering services and mining surveys, and she assigns the
coal mining contractors to the various mine locations. She also owns a
laboratory that evaluates the quality of the coal mined by the coal
contractors. The cost and quality of mining the coal may vary. She told the
owner that she also owns a laboratory, but she does not reveal that it is
substantial in size and extent, and that it employs several professionals.
Which of the following is the best statement?
(a) She disclosed the potential conflict of interest; therefore no further
communication to the mine owner was required
(b) Same as (a), plus she should be careful not to show favoritism to a
contractor who is a laboratory customer
(c) She should have fully disclosed the nature of the laboratory
operations to the mine owner
(d) She should refuse to take on the assignment with the mine owner,
because of conflict of interest

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1.23 Project Manager Justin Thyme had just been transferred to Saudi Arabia to
supervise a project for the Saudi government. The assignment was to last
for four years, so his family accompanied him. Upon moving into their
rented house, they discovered several things that needed repair. The
landlord, very happy to have rented the house on such a long term lease,
was very prompt in responding to their request for repairs. However, when
he arrived, Justin was not home and the landlord entered without speaking
or acknowledging his wife Lornas presence. The repairs proceeded under
the landlords supervision. Lorna was insulted. Since she was the one
home at the time, she thought the landlord should have discussed the
repairs with her. How should Justin respond?
(a) Conclude the landlord was rude and disrespectful
(b) Enquire about customs from a Saudi colleague
(c) Move the family home to the US
(d) Find another landlord

1.24 A North American firm had been working for months to locate a suitable
distributor for its products in Europe. Finally invited to present a
demonstration to a reputable distributing company in Frankfurt, it sent a
promising young executive, Fred Wagner, to make the presentation. Fred
spoke fluent German and felt a special interest in this assignment because
his paternal grandparents had immigrated to the United States from the
Frankfurt area. When Fred arrived at the conference room where he would
be making his presentation he shook hands firmly, greeted everyone with a
friendly Guten Tag, and even remembered to bow the head slightly as is
the German custom. Fred, a very effective speaker, prefaced his
presentation with a few humorous anecdotes to set a relaxed and receptive
atmosphere. Which of the following is more true about the cultural
implications?
(a) Things look great so far
(b) Freds youth will be valued
(c) Joke telling will be viewed as inappropriate in this setting
(d) Humour translates well into all cultures

1.25 A project manager in the USA accepted a gift of a Rolex wrist watch after
dinner. What has he or she done?
(a) Met local cultural expectations
(b) Committed a conflict of interest
(c) May be guilty of ethno-centrism
(d) Nothing to be concerned about, it was a low-value gift

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1.26 You download from the internet a short paper authored by a competitor.
You use it without giving credit. You are in violation of the responsibility
to:
(a) Respect the confidentiality of sensitive information
(b) Respect property rights of others
(c) Offer true information to the PMI
(d) Disclose conflict of interest

1.27 On your PMP or CAPM application, in order to meet the requirements for
hours of experience, you exaggerate your number of months on a project.
You are in violation of the responsibility to:
(a) Be truthful
(b) Cooperate with PMI concerning ethics violations of the PMI Code of
Ethics and Professional Conduct
(c) Provide accurate advertising
(d) Support and disseminate the PMI Code of Ethics and Professional
Conduct

1.28 You find out that a fellow PMP or CAPM lied about her experience on her
application for the certification. You decided to overlook it because she is
a friend and work colleague of yours. You are in violation of the
responsibility to:
(a) Report possible violations of the code of conduct to PMI
(b) Cooperate with PMI concerning ethics violations
(c) Disclose conflict of interest
(d) Support and disseminate the PMP Code of Professional Conduct

1.29 You are the Director, PM. You are discussing the relationship between project
management and corporate strategy. Which statement is best?
(a) Corporate strategy is a separate discipline, not directly relevant to projects
(b) Corporate strategy drives portfolios and programs, not projects
(c) All projects should be aligned with the strategic plan
(d) A few projects may be strategic, but many others can instead be
considered corporate or facility maintenance

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2. Project Scope Management

2.1 It is widely accepted that the work breakdown structure should be


decomposed into smaller and smaller tasks until the average work
package:
(a) Is no more than 80 hours of duration
(b) Is no more than 80 labour hours of effort
(c) Can be accomplished by one person in one week
(d) Is at a level of detail that suits the project manager

2.2 Outputs from the Collect Requirements process include all of the
following except:
(a) Requirements documentation
(b) Requirements management plan
(c) Stakeholder register
(d) Requirements traceability matrix

2.3 Which of the following criteria is the least likely to be used to create the
major WBS divisions?
(a) Geographical dispersion of the sub-projects
(b) Organizational breakdown structure of the performing organization
(c) Physical deliverables
(d) By phase

2.4 Which of the following criteria describe a well-defined WBS control


account or work package?
(a) Assignable; interdependent; achievable; integratable
(b) Assignable; interdependent; achievable; measurable; integratable
(c) Assignable; interdependent; achievable; measurable
(d) Assignable; independent; measurable; integratable

2.5 A document authorizing a project is called:


(a) Project statement of work
(b) WBS
(c) Scope statement
(d) Project charter

2.6 A configuration management system frequently includes the following:


(a) Estimate at completion
(b) Change control board
(c) PV, EV, AC
(d) Benefit-cost ratio

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2.7 Your project team has just been told that your organizations Vice-
President Finance has revised the method of calculating the financing
costs of internal projects. This will immediately increase the overhead
item in your project budget by a total of 1% of the budget. Your project is
trending below budget, and you have enough contingency allowance that
you believe the above changes will not endanger your project's cost
baseline budget at completion. What should you do?
(a) Document the cause of cost variance, so it is in the project records
(b) Document a change and ask for approval of the budget increase
(c) Lower the budgeted amount for one of the under-running budget
items, so the budget remains the same
(d) Recognize that this is the way it is for internal project managers,
and you do not have any power anyway

2.8 The projects existence is formally recognized, possibly for the first time,
in the projects:
(a) Project SOW
(b) Charter
(c) Scope statement
(d) Project management plan

2.9 The work breakdown structure is a deliverable-oriented grouping of


project elements (products or services) which defines, or provides a
structure for defining the:
(a) Project staffing, skill requirements, scope definition
(b) Work packages, control accounts, schedules
(c) Project change control, risk identification, labour rates
(d) Project charter, project plan

2.10 The scope statement provides all of the following EXCEPT:


(a) A list of assumptions
(b) Process and criteria for acceptance
(c) A baseline to assist in evaluating potential scope changes
(d) How changes will be monitored and controlled

2.11 The work breakdown structure comprises several levels of decomposition


of the total project. The lowest level of deliverable is often referred to as
the:
(a) Control (cost) account
(b) Planning element
(c) Working interface
(d) Work package

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2.12 From a top management perspective, the progress of the project is
measured in completion of blocks of work over time. The project manager
plans for reporting progress, using the __________ as the basis of
structuring the budget, schedule, resource allocation, and providing
detailed scope definition.
(a) Project Management Plan
(b) PERT or CPM
(c) Project charter
(d) Work breakdown structure

2.13 During the planning and execution phases, there is often a need to conduct
trade-offs between project constraints. These trade-offs may be made
between ____________.
(a) Risk, cost, and schedule
(b) Technologies, design, and engineering
(c) Cost, schedule, scope, quality, resources and risk
(d) Conceptual, planning, and execution phases

2.14 The document or system authorizing you to start a package of work and
therefore to charge resources against it is the:
(a) Work authorization
(b) Project charter
(c) Project plan
(d) Responsibility assignment matrix

2.15 When considering the scope of a project:


(a) Product scope accomplishment is measured against the plan
(b) Project scope accomplishment is measured against the
requirements
(c) Project scope accomplishment is measured against the plan
(d) Product scope and Project scope are measured against the Project
Statement of Work

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2.16 In the accompanying WBS fragment, what would be an appropriate WBS
numbering system?
(a) BB=20001, EE=20002, FF=20003, CC=20010, DD=20020
(b) BB=21000, EE=21100, FF=21110, CC=22000, DD=23000
(c) BB=21001, EE=22001, FF=22003, CC=21010, DD=21020
(d) BB=20000, EE=21000, FF=25000, CC=22000, DD=23000

2.17 You have been asked to re-baseline your cost-reimbursable project for
an external customer. Which of the following is the best reason to do so:
(a) Productivity has been lower than anticipated
(b) Your engineering department has implemented a new Computer
Aided Design and Drafting system for this project, and plans to
charge the costs to the project
(c) Your customer has authorized $100,000 in overtime payments in
order to achieve an earlier product-to-market schedule
(d) Your production department has instituted a new Quality
Management System, largely in reaction to complaints from your
customer

2.18 While working on a project for an external customer, she asks you to
perform some additional work that is not in the contract. You should:
(a) Convene a meeting of the project team and rewrite the scope
statement
(b) Refuse the request, and report the customer to your Sponsor
(c) Advise the customer to initiate a formal change request
(d) Honor the request as a sign of cooperation

2.19 In the case of multi-phase projects,


(a) The Business Case is prepared based on the Project Charter
(b) The Business Case is prepared based on the Project Scope Statement.
(c) The Business Case may be reviewed periodically to ensure the project
still makes sense
(d) The Business Case is prepared based on the Project Management Plan

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3. Project Time Management

3.1 As the number of different critical paths through a scheduling network


increases, the estimated project duration as calculated by traditional
methods, becomes:
(a) Less precise
(b) More reliable
(c) Less achievable
(d) Easier

3.2 Which is more popular PDM (precedence diagrams) or ADM (arrow


diagrams) and why?
(a) ADM because it can be time-scaled
(b) PDM because it allows more complex relationships
(c) PDM because it is more intuitive
(d) ADM because that is what most software packages use

3.3 What does it mean (or what should you do) if the Total Float is negative?
(a) Project completion is forecast to be late
(b) It must be an error in the calculations
(c) The duration is in the tail of the probability distribution
(d) You should try to resolve using resource levelling

3.4 Resource levelling will often affect the project by making it:
(a) Shorter
(b) Longer
(c) More responsive to customer needs
(d) More risky

3.5 Crashing:
(a) Means the same as fast-tracking
(b) Is caused by hardware or software problems
(c) Can lead to resource over-allocation
(d) Is a feature of scheduling software

3.6 In the PMBOK Guide, project schedule network diagram is an output
from:
(a) Define Activities
(b) Sequence Activities
(c) Estimate Activity Durations
(d) Control Schedule

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3.7 Computing the duration of the network after all logic is completed and all
time estimates are included, requires a forward and a backward pass
resulting in:
(a) A sort of all activities into a forward group and a backward group
(b) New logic for the schedule if it exceeded the desired time duration
(c) Identification of: float on each activity, and the critical path
(d) Separating the critical path from the non-critical path activities in the
network

3.8 The critical path can be defined as the longest track through a network.
The computation of the network will determine that there are:
(a) Only one critical path
(b) One or more critical paths
(c) Always more than one critical path
(d) Always more than two critical paths

3.9 A contractor informs the PM that there is a slippage in its work schedule
by at least two weeks. This work is thought to be on the critical path of the
project. The PM should do all of the following EXCEPT:
(a) Review the contract to determine the contractors obligation to meet
the current schedule
(b) Review the contractors schedule to determine whether there is an
actual two-week delay
(c) Review the project master schedule to determine if there indeed will
be a two-week impact on the project
(d) If it does create a two week impact on the project, deduct the
calculated direct costs of the delay from your payment to the
contractor

3.10 The project schedule is a dynamic document maintained in computer


systems that starts with the baseline plan. While the schedule is updated to
reflect changes in scope, or reflect actual data, the baseline schedule:
(a) Becomes the current schedule
(b) Is maintained as the original baseline for post-project evaluations
(c) Is deleted as being unusable and not needed to manage the scope
(d) Is amended to remove any errors, but maintained for post-project
evaluations

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3.11 Schedule control starts with collecting progress information as of the data
date, and leads to:
(a) Creating a bar chart schedule showing target schedule bars, actual
start and finish dates, and forecast start and finish dates
(b) Calculation of CV and CPI
(c) Calculation of EAC and SPI
(d) Project schedule updates, corrective action

3.12 PDM differs from Arrow Diagramming Method in that PDM uses:
(a) Nodes/boxes to represent slack time
(b) Dummy activities to constrain events
(c) Arrows to represent work
(d) Nodes/boxes to represent work

3.13 Most CPM software packages allow four different dependency


relationships, including:
(a) Mandatory
(b) Finish-to-Finish
(c) Dummy
(d) Resource-levelled

3.14 In a precedence diagram, the placement of the connecting lines to other


activities is significant because the lines indicate:
(a) One of the relationships of logic
(b) A dashed connectivity for dummy activities
(c) The required delay between the finish of one activity and the start
of another
(d) Resources needed to complete the next activity

3.15 There is a belief that all task durations can be altered by increasing or
reducing the work force on the task. Following that belief, one could
compress the task duration to one-half by doubling the work force. Which
of the following statements is NOT relevant to this assumption?
(a) The skills may not be available to double the work force
(b) The process may not facilitate the additional personnel (such as a
sequential assembly operation)
(c) The compression of work into a shorter duration by more people
may be inefficient
(d) Learning curve theory supports increased efficiency when additional
labour units are added

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The next four questions are based on the accompanying precedence diagram.
Note that this network is much more complex than you will see in the real exams.
Notice the negative number.

3.16 The critical path is:


(a) ABHK
(b) ACEJK
(c) ADGK
(d) ADFJK

3.17 For activity J, the early start is the beginning of day number ________:
(a) 6
(b) 7
(c) 8
(d) Cannot calculate

3.18 For activity E, the late finish is the end of day number _________:
(a) 6
(b) 7
(c) 8
(d) Cannot calculate

3.19 The total float for activity E is:


(a) 0
(b) 1
(c) 2
(d) Cannot calculate

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3.20 An activity will expend 160 labour hours by two people working regular
5-day weeks with eight-hour days, starting on a Monday. What are the
duration, elapsed time, and effort?
(a) 10 working days, 10 working days, 2 staff
(b) 2w, 10d, 80 hours
(c) 10d, 12 calendar days, 160 staff hours
(d) Insufficient data

3.21 The progressive detailing of the WBS and project plan throughout the
project phases is often called:
(a) Continuous planning
(b) Scope planning
(c) Rolling window
(d) Rolling wave

3.22 Mandatory dependencies:


(a) Result from interfaces with other projects, or actions outside
the project
(b) Are contractually required or inherent in the nature of the work
(c) Are defined by customers or key project stakeholders
(d) Are the dates by which an activity must be started or completed

3.23 A hammock activity is one which:


(a) Indicates that the project work pauses and then resumes
(b) Has zero duration but which utilizes resources
(c) Terminates one path of the network
(d) Spans between two points in the schedule, summarizing the detailed
activities in between

3.24 A schedule network loop is created when the network logic allows a
path to pass through the same node twice. A network loop:
(a) Cannot be analyzed by traditional schedule techniques
(b) Can be analyzed using CPM
(c) Can be analyzed using PERT
(d) Can be analyzed by Critical Chain

3.25 Total float is the amount of time that:


(a) The activity can be delayed without affecting the finish times of
any other activity
(b) The activity can be delayed without affecting project completion date
(c) Activities on the critical path can be delayed
(d) Equals the difference between the early start and the late finish of
the activity

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3.26 Resource levelling can apply to:
(a) Time and money constraints only
(b) Human resource constraints only
(c) Human resource, time and money constraints
(d) Human resource, equipment, facility constraints

3.27 Consider the following network:


The Start activity is followed by activity A. Activity A is followed by
Activity C. The Start activity is also followed by Activity B. Activities
D and E are successors from Activity B. Activities C and D and E are
predecessors to the Finish milestone. Durations are in days.

Activity Normal "Crashed" Extra Cost to


Duration Duration Crash the
Duration
Start 2 1 $8,000
A 5 4 $10,000
B 6 4 $12,000
C 4 3 $12,000
D 4 3 $5,000
E 3 2 $5,000

What is the least cost to crash the schedule to 10 days?


(a) $12,000
(b) $10,000
(c) $13,000
(d) Insufficient data to calculate

3.28 You are required to fast-track your project schedule. Therefore you
should be prepared to:
(a) Eliminate some items of scope, with appropriate stakeholder
approval
(b) Increase resources if they become over-allocated
(c) Communicate a time extension
(d) Shorten the duration of critical path activities

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3.29 The project starts Monday morning and has a 7-day work week. Task A (1
day long) is the predecessor to B (5 days), and C (4 days) and D (2 days).
Task C is the predecessor to E, with a start-start relationship. Task E is
three days long. Tasks B and E are predecessors to F (2 days long). Task
D is also a predecessor to F, but with a finish-finish relationship. The
Early Finish for the project is the end of the day on a
(a) Wednesday
(b) Monday
(c) Saturday
(d) Sunday

3.30 Which of the following is a true statement?


(a) Total float is usually the same as or smaller than free float
(b) Free float is usually the same as or smaller than total float
(c) Total float is the sum of the individual floats along a path
(d) Once the project schedule is approved, float only changes if a project
change is approved

3.31 PERT is:


(a) Program Evaluation and Review Technique
(b) Project Earned Review Technique
(c) Project Evaluation and Review Technique
(d) Program Evaluation and Review Tool

3.32 There are three tasks A, B, and C. A has duration of 5 weeks. B cannot start
until A has ended and 1 extra week has been used to assign team members. C
starts one week after B starts. When does event C end, if B = 6 weeks duration
and C = 8 weeks duration?
(a) at the end of 18 weeks
(b) at the end of 17 weeks
(c) at the end of 15 weeks
(d) at the end of 20 weeks

3.33 What is the dependency between B and C above?


(a) Start to start
(b) Finish to start
(c) Finish to finish
(d) Start to finish

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3.34 Your project is behind schedule and your sponsor has asked you to crash the
schedule. You will:
(a) Review your logic to see if you can start some tasks earlier than planned
(b) Find tasks that can be done in parallel that you had originally determined
would be best to do in sequence
(c) Find ways of compressing the schedule for the least incremental cost
(d) Request that the Functional Manager provide additional resources

4. Project Cost Management

4.1 In appraising a proposed investment in a long-term project, NPV:


(a) Is generally the appropriate cost of capital expressed as a percentage
rate it incorporates a judgment of the uncertainty (riskiness) of the
future cash flows
(b) Is a capital budgeting method -- the annualized effective
compounded return which can be earned on the invested capital
(c) Estimates the cash inflow and outflow through the project and to
some time horizon during the life of the project result, incorporating
the cost of financing
(d) Is the Net Planned Value of the project

4.2 The type of cost estimate which most requires a WBS is:
(a) Analogous
(b) Parametric
(c) Expert judgment
(d) Bottom-up

4.3 Analogous estimating uses


(a) One or more previous similar projects
(b) Estimates of individual work packages
(c) Optimistic, most likely and pessimistic estimates
(d) Reserve analysis

4.4 When crashing the schedule, a trade-off of schedule vs cost is often


required. Typically, the first extra dollar is invested in:
(a) The first critical path task in the project
(b) A late, risky critical path task
(c) The longest critical path task
(d) The critical path task with the greatest schedule saving for that dollar

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4.5 The estimating of a project can be very complex in the development of
valid cost estimates and price quotes from vendors. The tool that facilitates
the estimating of a project by providing a structured decomposition of the
total project into individual elements is:
(a) Chart of accounts
(b) Budget
(c) Configuration management
(d) Work breakdown structure

4.6 There is a project to build a 5,000 square foot deck. The budget allows
four crew hours for each 100 sq. ft., at a cost of 100 per crew hour. The
Planned Value (also known as BCWS) to date is 10,000. The work is
40% completed, at a cost of 9,000 to date. What is the Cost Variance?
(a) 1,000
(b) -1,000
(c) 2,000
(d) -2,000

4.7 Of the following types of costs, the one which is not relevant to making a
rational financial decision about the future of a project:
(a) Opportunity cost
(b) Direct cost
(c) Sunk cost
(d) Indirect cost

4.8 In an earned value system, the formula PV minus EV equals:


(a) Schedule difference
(b) Schedule variance
(c) Cost variance
(d) None of the above

4.9 Indices can give us an indication of the status of a project. In an earned


value system, there are two indices: Cost Performance Index (CPI) and
Schedule Performance Index (SPI). The formula for the CPI is:
(a) Actual Cost divided by Planned Value
(b) Actual Cost divided by Earned Value
(c) Earned Value divided by Actual Cost
(d) Planned Value divided by Earned Value

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4.10 In the earned value system, the status of the project is reported as PV =
100, AC = 110, EV = 95. The project is now:
(a) Under spent and ahead of schedule
(b) Overspent and ahead of schedule
(c) Under spent and behind schedule
(d) Overspent and behind schedule

4.11 Project budgets often have direct and indirect costs that the project
manager must track to ensure the budget is not exceeded. The project
manager has the most control over direct costs such as:
(a) Bonuses, fees, awards
(b) Labour, materials, equipment
(c) Labour, supervision, fees
(d) Overhead, general & administration, fees

4.12 If SV = 0, PV = 800, AC = 750, the project is:


(a) Over budget, on schedule
(b) Over budget, behind schedule
(c) Under budget, on schedule
(d) Under budget, behind schedule

4.13 In your earned value analysis, you need to know the percent complete
for each work package, as of the time now. This percentage is best
estimated by means of:
(a) A consensus of the intuitive opinions of the task leader and the
project manager
(b) Starting with the amount of the Approved Estimate not yet spent on
the work package
(c) Actual cost of the work package to date, divided by the budgeted cost
of the work package
(d) Finding achieved milestones within the work package

4.14 The currently estimated cost at completion, if the variances to date are
expected to continue, can be extrapolated as follows:
(a) EAC = BAC / CPI
(b) EAC = BAC x CPI
(c) EAC = BAC / SPI
(d) EAC = BAC x SPI

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4.15 Estimating the type and quantities of resources required is NOT part of:
(a) Determine Budget
(b) Estimate Costs
(c) Project Time Management
(d) Control Costs

4.16 The best single source for preparing estimates of dollars or work hours for
project activities, when available, is:
(a) Purchased manuals of estimating standards based on a database of
project records
(b) Recollections of team members, combined with previous project
estimates from the corporate project data repository
(c) Detailed cost records from previous projects in the company
(d) Top-down project estimates prepared by analogous or parametric
modelling

4.17 You had planned to spend $500 per week on materials and $500 per week
on labour for a four-week fencing project. The materials, and they are now
all purchased and on site. You have spent a total $3,200 to the end of the
second week. You had expected to build 200 of the total 400 linear feet of
fence by now, but you have actually built 220 feet. What can you
conclude?
(a) Ahead of schedule, under budget
(b) Ahead of schedule, over budget
(c) Behind schedule, under budget
(d) Behind schedule, over budget

4.18 Parametric models for cost estimating are:


(a) A form of expert judgement
(b) Quick and easy to create
(c) Dependent on the accuracy of the historical database used
(d) Only useful for smaller projects

4.19 In the PMBOK Guide, inputs into Estimate Costs include:
(a) Staffing requirements, procurement policies, WBS
(b) Work Breakdown Structure, Scope Statement, historical information,
market conditions, organizational policies, staffing management plan
(c) WBS, scope documents, Risk Management Plan
(d) Expert judgment, historical information, Work Breakdown Structure,
Cost Baseline

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4.20 In the PMBOK Guide, the Cost Management Plan is a(n) ______ for the
_______ process.
(a) Output, Estimate Costs
(b) Input, Plan Risk Management
(c) Input, Estimate Costs
(d) Tools and techniques, Control Costs

4.21 The following is a time-phased estimate that will be used to help measure
and monitor cost performance in the project
(a) Cash flow curve
(b) S-curve
(c) Cost performance baseline
(d) Cost budget

4.22 All of the following are characteristics of parametric estimating EXCEPT:


(a) Historical information
(b) Quantification
(c) Scalable
(d) Activity list

4.23 Whose responsibility should it be to manage cost and schedule


contingencies?
(a) Project manager
(b) Work package leader
(c) Customer, through project sponsor
(d) Project sponsor

4.24 You are the Program Manager with an order for 100 light armored vehicles for
the US Army which is approximately half completed. SPI(per) = 0.99;
SPI(cum) = 0.95; CPI(per) = 1.2; CPI(cum) = 1.60. Which is the most likely
statement?
(a) The budget was significantly overestimated.
(b) Schedule progress is getting worse in the most recent period.
(c) Both schedule and cost performance are getting better in the most
recent period.
(d) Anticipated completion is about 5% behind schedule.

4.25 On a work package for Create RFP for Consulting Services, you want to
avoid subjective estimates of completion, for earned value measurement.
You would choose the method:
(a) Percent complete
(b) Equivalent completed units
(c) Apportioned
(d) Weighted milestones

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4.26 What is the most accurate way to calculate EAC, for a project that is about half
complete?
(a) BAC/CPI
(b) AC plus ETC
(c) AC plus budget for remaining work
(d) BAC less AC

4.27 The owner of your firm has asked you to prepare an estimate for a very large
project for a new client. The scope has not been fully defined. Unfortunately,
she has given you an extremely limited amount of time for this task. You
should:
(a) Use the WBS as the basis for creating the budget.
(b) Explain that it is not possible to create a budget if you do not have a fully
developed Scope Statement
(c) Use analogous estimating and communicate how you developed the
budget
(d) Prepare a bottom up estimate because this is the most accurate form of
estimating

4.28 The project has a $20,000 budget for labour. Forty hours have been spent
against the 200 hour budget. What is the Earned Value of the project?
(a) $2,000
(b) $4,000
(c) $8,000
(d) Not calculable

4.29 TASK BAC AC EV


One $5,000 $6,000 $5,000
Two $6,000 $8,000 $4,000
Three $4,000 $1,000 $1,000
Four $4,000 $0 $0

Assume that the efficiency of work-in-progress continues, and that Task


Four is a fixed price contract. Your total Estimate at Completion is:
(a) $19,000
(b) $21,000
(c) $26,000
(d) Cannot be determined

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4.30 The Cost/Schedule Analyst has calculated the following: Planning has
PV= $20,000 and EV=$25,000. Testing has PV=$17,000 and
EV=$15,000. Design has PV=$34,000 and EV=$42,000. Your project is
(a) 15% ahead of schedule
(b) 15% behind schedule
(c) 15% ahead of schedule, but over budget
(d) 15% behind schedule and budget

4.31 Payback period is:


(a) A method of analysis with serious limitations and qualifications for
its use, because it does not account for the time value of money, risk,
and other things
(b) A central tool in discounted cash flow (DCF) analysis, and is a well-
regarded method to appraise long-term projects
(c) The sum of a time series of cash flows, both incoming and outgoing
(d) The annualized effective compounded return rate" or discount rate
that makes the net present value (NPV) of all cash flows (both
positive and negative) from a particular investment equal to zero

4.32 The calculated Internal Rate of Return of a proposed project is 17%. The
cost of capital of the organization is 15%, but your VP Finance has
selected a required rate of return (also known as a hurdle rate) for this
project to be 20% because of risk of the investment.
(a) This project is more favourable than any other competing project
with a lower estimated IRR
(b) Cannot calculate from the above information
(c) The project looks unfavourable
(d) The project looks favourable

4.33 When the project actually completes and is one month late, the Schedule
Performance Index equals:
(a) One month
(b) Cannot calculate from the above information
(c) Zero
(d) One

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5. Project Quality Management

5.1 Quality management could be defined as the process of ensuring that a


project meets the:
(a) Specifications and statements of work of the projects clients
(b) Legal, financial and obligations of the projects clients
(c) Legal and moral requirements of the projects clients
(d) Implied and stated needs of the projects clients

5.2 The processes of Project Quality Management are quality ________,


_______, and ________.
(a) Insurance, assurance, warranties
(b) Planning, assurance, control
(c) Form, fit, function
(d) Reliability, maintainability, the other attributes

5.3 Data-based decision making includes Pareto analysis as a means of


reducing errors in the total project process. Pareto analysis is:
(a) A method of rejecting errors or variances from standards following
self-inspection
(b) A procedure for ranking the causes to identify those contributing the
most to failures
(c) Counting errors or failures to determine the added cost of all
operations that do not meet the requirements
(d) Comparing error rate with hurdle rate to determine the allowable
percentage of errors

5.4 Inputs to quality control are all of the following EXCEPT:


(a) Performance measurements
(b) Project Management Plan
(c) Inspections
(d) Checklists

5.5 Quality:
(a) Is ensured by having inspectors
(b) Cannot be measured
(c) And productivity are inconsistent objectives
(d) Is at least 85% a management responsibility

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5.6 When considering quality:
(a) Low grade products are not suitable for inclusion in a high-quality
project
(b) Conformance to quality standards requires that extra costs be incurred
(c) Investments in a quality system require a long payback period
(d) Customer satisfaction requires products be suitable for use and conform
to specifications

5.7 Customers are the driving force in any project and they determine the
requirements to be met. In dealing with customers complaints, it is
important to:
(a) Avoid commitment to the correction of an out-of-warranty item
(b) Give them something more than they contracted to receive (exceed
their expectations)
(c) Provide them with the full scope of the contracted product or service
(d) Change customers perceptions about the product or service
requirements because customers always ask for too much.

5.8 Self-inspection by the individual performing the work can be used to


achieve quality in a product. The advantages of self-inspection are all of
the following EXCEPT:
(a) Immediate feedback to permit adjustments to the process
(b) Minimizes end product repairs and material waste
(c) Reduces the number of end product inspections and test
(d) The process moves internal failures to become external failures

5.9 For a population with a mean value of 100 and a standard deviation of 20:
(a) A value of 19 is within one standard deviation from the mean
(b) 85, 95, and 115 are within the range of values which could be
expected about 68% of the time
(c) The standard deviation is a measure of central tendency and is too
large a fraction of the mean in this case to provide useful
expectations of the likelihood of the frequency of any particular
value
(d) Values of 33 and 166 fall within the three-sigma limits

5.10 Statistical Process Control is used in quality programs to determine


whether repetitive operations meet predictable standards. To permit
accurate monitoring of the operation, SPC uses:
(a) 100% inspection, random rejection
(b) Acceptance sampling, automatic rejection
(c) Continuous sampling, error detection methods
(d) Statistical sampling, control bands

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5.11 To improve productivity along with quality levels, a quality program
within a project should be based on:
(a) Early detection of errors
(b) Early correction of errors
(c) 100% detection and correction of errors
(d) Prevention of errors

5.12 Which of the following is not a principle of modern quality assurance and
control?
(a) Increased effort on inspection
(b) Quality is a management responsibility
(c) Continuous improvement
(d) Customer satisfaction

5.13 An Ishikawa diagram:


(a) Is a type of bar chart showing the number or percentage of defects,
rank ordered by cause
(b) Is a structured tool, usually industry specific, used to verify that a set
of required steps has been performed
(c) Uses an analytical technique to help identify which variables have
the most influence on the overall outcome
(d) Illustrates how various causes and sub causes may have created the
problem

5.14 The ISO 9000 standards are:


(a) Usually not applicable to project organizations because every project
is different
(b) Guidelines; implementation details will vary from one organization
to another
(c) Not applicable to a companys project management processes, by
definition of a project
(d) Concentrating on continuous improvement, deemphasizing
documentation

5.15 Cost of Quality:


(a) Is a measure of cost efficiency
(b) Is the cost of the QC function
(c) Includes quality planning, quality control, quality assurance, and
rework
(d) Is free

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5.16 Perform Quality Assurance in the PMBOK Guide is:
(a) Monitoring and recording results of executing the quality activities to
assess performance and recommend necessary changes
(b) Auditing the quality requirements and the results from quality control
measurements to ensure appropriate quality standards and operational
definitions are used
(c) The overall quality intentions and directions of an organization as
regards quality, as formally expressed by top management
(d) The degree to which a set of inherent characteristics fulfills
requirements

5.17 Some industries use six sigma control to establishing upper and lower
control limits (UCL and LCL) to provide very tight process control.
(Sigma is the standard deviation of the probability distribution.) The
more traditional limits for process control charts are as follows:
(a) Two sigma between UCL and LCL
(b) Six sigma between UCL and LCL
(c) Three sigma between UCL and LCL
(d) Three sigma between specification limits (USL and LSL)

5.18 Which of the following statements about random variation (common


causes) and assignable variation (special causes) is the least true:
(a) Most deviation outside of the control limits will be because of
assignable variance or measurement calibration error
(b) Random variance can be reduced by improving the overall
production process
(c) We need only be concerned about assignable variance, not about
random variance
(d) If seven or more consecutive points lie above or below the mean, we
should consider it to be an assignable variance

5.19 One of the fundamental tenets of quality management is that quality:


(a) Exceeds client expectations
(b) Is planned in, not inspected in
(c) Does not cost
(d) Requires constant monitoring

5.20 In today's view of quality, who defines quality?


(a) Senior management (Project Sponsor)
(b) Project management
(c) Functional management
(d) Customers

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5.21 A process is out of control when:
(a) There are special causes of variation
(b) There are common causes of variation
(c) There are special and non-assignable causes of variation
(d) We cannot apply statistical process control

5.22 What number of consecutive data points on one side of the mean on a
control chart leads us to conclude that the process is out of control?
(a) 3
(b) 5
(c) 7
(d) 11

5.23 For the following group of numbers (80, 10, 10, 50, 70, 90), what is the
mode?
(a) 10
(b) 80
(c) 50
(d) 70

5.24 Using the numbers from question 5.23, what is the mean?
(a) 17
(b) 80
(c) 52
(d) 71

5.25 Using the numbers from question 5.23, what is the median?
(a) 10
(b) 80
(c) 60
(d) 70

5.26 Benchmarking of practices


(a) Should be with other application areas
(b) Should be outside the performing organization
(c) Both (a) and (b)
(d) Can be within the performing organization

5.27 The 80 20 rule is attributed to:


(a) W. Edwards Deming
(b) Joseph Juran
(c) Phil Crosbie
(d) Wilfredo Pareto

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5.28 Which of these tools helps to analyze future outcomes?
(a) Decision tree
(b) Pareto diagram
(c) Fishbone diagram
(d) Run chart

6. Project Human Resources Management

6.1 Bruce Tuckmans model of team development suggests the following


stages of team development:
(a) Forming-Norming-Storming-Performing-Adjourning
(b) Forming-Storming-Norming-Performing-Adjourning
(c) Storming-Norming-Storming-Performing-Adjourning
(d) Performing-Norming-Storming-Forming-Adjourning

6.2 The project manager leads a project team that is borrowed from several
discipline departments. She must particularly use negotiating skills
because she:
(a) Is expected to discuss all facets of the technical parameters of the
project
(b) Will be leading individuals without having direct control over them
(c) Will encounter the shop talk of each discipline that is unique
(d) Will be using these skills to avoid scope growth

6.3. One popular model has five approaches to conflict resolution. Which one
is a win-lose technique in which the project manager uses his or her
power to overrule one of the parties?
(a) Confrontation
(b) Hierarchical
(c) Authoritative
(d) Forcing

6.4 Outputs from Acquire Project Team do NOT include:


(a) Project Staff Assignments
(b) Project Organizational Charts
(c) Resource Calendars
(d) Project Management Plan updates

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6.5 The responsibility assignment matrix specifies:
(a) Who does what on a project
(b) Project reporting relationships
(c) The hierarchy of the project organization
(d) Who gets which document

6.6 In traditional listings of power sources, the project manager may possess
two forms of power obtained other than from a formal appointment
(legitimate power) which he may use to further the objectives of the
project. These are:
(a) Physical, mental
(b) Spiritual, emotional
(c) Expert, assumed
(d) Expert, referent

6.7 The process of getting a group of diverse individuals to effectively work


together is a definition of:
(a) Leadership
(b) Project management
(c) Team building
(d) The project managers responsibilities

6.8 Conflict within a project team can be reduced with good planning and with
effective communications between the project manager and the team. The
most important information for the project manager to convey is:
(a) The key decisions that have been made and how the key decisions
impact the team
(b) The system of rewards that permits recognition of team members
through monetary or non-monetary awards
(c) Clear, unambiguous goals as to where the project is headed
(d) That top management will not be interfering with this project as they
usually do with other projects

6.9 The matrix structure is often used for implementing projects because each
project cannot justify the required specialists on a full-time basis. The use
of a matrix organization __________ the apparent capabilities for
marketing to external clients, and can __________ overall manpower
fluctuations as projects progress.
(a) Changes, reduce
(b) Reduces, maximize
(c) Enhances, minimize
(d) Minimizes, stabilize

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6.10 The matrix organization, compared to the projectized organization,
tends to give the employee:
(a) Better job security
(b) Fewer conflicts
(c) Additional workload
(d) More specialized experience

6.11 An independent task force (projectized structure) provides stability for


project staff during execution of the project. But a major concern of the
staff, from a personal viewpoint, can be:
(a) Performing assigned jobs well and improving individual skills
(b) Anxieties regarding their next assignment after the project is
completed
(c) Keeping the functional staff out of the project to preclude
interference with progress
(d) Ensuring the budget is spent so the project will not have any residue
of funds for reallocation

6.12 The inability for functional members to keep current in their respective
disciplines can be a tendency of which organizational form?
(a) Functional
(b) Projectized
(c) Strong matrix
(d) Weak matrix

6.13 A strong matrix organization differs from a weak matrix organization in


that the strong matrix:
(a) Is more difficult to manage than the weak matrix
(b) Has the balance of power shifted in the project managers direction
(c) Provides the project manager with essentially the same authority and
responsibility that he/she would have in a projectized organization
(d) Has the balance of power shifted in the functional managers
direction

6.14 You have been assigned to a project that requires communications


between two technical disciplines. Which of the following organizational
forms would be the MOST difficult?
(a) Individual
(b) Functional
(c) Projectized
(d) Matrix

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6.15 The purpose of resource smoothing is:
(a) To perform the work with the resources that are available
(b) To flatten the peaks and valleys of resource allocation
(c) To optimize resource allocation
(d) To plan resources in a systematic and consistent manner

6.16 Four commonly discussed PM organizational structures are:


(a) SWOT team, blind panel, change control board, self-managed team
(b) Strong matrix, weak matrix, balanced matrix, pure functional
(c) Project coordinator structure, strong matrix, projectized, balanced
matrix
(d) Projectized, functional, operational, hierarchical

6.17 When a project operates in a matrix environment, the largest concern(s) of


the project manager is / are all EXCEPT:
(a) That project team members report to their functional manager and to
the project manager
(b) To manage the dual reporting relationship
(c) To negotiate with the functional manager for who and how
(d) Staff management including performance reviews, recruiting,
personnel development, team-building

6.18 Conflicts between team members who are anxious for closure and those
who wish to consider more alternatives ___________.
(a) Waste time
(b) Should be discouraged
(c) Might facilitate problem solving
(d) Are indicative of larger problems

6.19 Project team building is most difficult in which kind of environment?


(a) Weak matrix
(b) Strong matrix
(c) Projectized
(d) Functional (with the team entirely within the functional department)

6.20 The Project Manager has complete authority over the project team, but
reports to three people: to the Sponsor, to the Customer, and to his regular
Department Manager. Which type of organization is this?
(a) Balanced matrix
(b) Tri-partite matrix
(c) Projectized
(d) Balanced scorecard

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6.21 Which structure contributes the most to staff anxiety at the close of the
project?
(a) Functional
(b) Weak matrix
(c) Projectized
(d) Strong matrix

6.22 The process of establishing clear and achievable objectives for an


employee, measuring their achievement, and adjusting performance
accordingly, is called:
(a) Strategic planning
(b) Alternatives objectives analysis
(c) Management by objectives
(d) Contingency planning

6.23 Delaying activities so that resource availability is not exceeded is called:


(a) Floating
(b) Levelling
(c) Critical chain scheduling
(d) Crashing

6.24 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

6.25 A project team that needs minimal direction and minimal support
regarding project details to achieve project objectives effectively and
collaboratively exhibits which of the following group stage of
development?
(a) Adjourning
(b) Storming
(c) Forming
(d) Performing

6.26 Which is NOT an important function of the kick-off meeting?


(a) Identify project goals
(b) Introduce the players
(c) Get team buy-in
(d) Present the Project Management Plan

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6.27 If the project managers Executive Director tells the project manager to
forgive a project team member for an offence he committed, what kind of
leadership is the Executive Director showing?
(a) Referent
(b) Legitimate
(c) Expert
(d) Technical

6.28 What should a project manager delegate?


(a) Authorize a technical team leader to release a technical specification
(b) Delegate to her Project Administrator to issue letters of commendation
to team members
(c) Delegate the promotion of a technical team leader to a project
management role
(d) Ask her Cost and Schedule Analyst to investigate and evaluate

6.29 You are to manage a project with a research specialist, an operations team
lead, and 5 functional specialists. Which organizational structure will provide
you with the highest level of authority?
(a) Projectized
(b) Matrix
(c) Functional
(d) Organic

6.30 What is the halo effect?


(a) Another name for expert power observed in group dynamics
(b) Indicative of a charismatic personality
(c) The aura surrounding a halogen bulb
(d) Admiring all of a persons actions, because of a good quality observed in
the past

6.31 You work in a projectized environment. One of your team members was very
keen to organize a team-recognition activity. He was going to be the Master of
Ceremonies for a mini awards show and he was going to write a comical
script and give out awards to various people for funny things they did during
the project. Two months later when the project was wrapping up, he was no
longer interested in working on the team-recognition activity. You assess his
change in behavior and consider various motivational theories. You conclude
that:
(a) Now that the time has come for him to get up on the stage he is really
nervous
(b) Pavlovs theory explains his hesitant behavior
(c) You should adopt a Theory Y management style because he has a Y
personality
(d) He is probably worried about job security and he has moved down one
level in Maslows Hierarchy of Needs

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6.32 In a multicultural environment, it is critical to establish a corporate culture
that facilitates:
(a) Problem-solving through different approaches
(b) Learning and communication.
(c) Partnerships, strong alliances and joint ventures
(d) Negotiations

6.33 Among the following factors, which would most affect our choice of a
strategy for handling conflict:
(a) The fact that there is a conflict
(b) The environmental context
(c) The corporate vision
(d) The critical nature of the strained relationship

7. Project Communications Management

7.1 The successful project manager spends most of her time:


(a) Planning with top management and customer
(b) Planning with his/her personnel
(c) Thinking, studying, analyzing, planning
(d) Communicating with people

7.2 The Communications Management Plan may describe all of the following
EXCEPT:
(a) Stakeholder communication requirements
(b) Communication barriers
(c) Communication methods and technologies
(d) Communication schedules

7.3 If we expect that the project performance to date will continue, then which
is the MOST true:
(a) BAC = EAC / CPI
(b) (Forecast total project duration) = (planned total project duration) / SPI
(c) EAC = BAC / CPI
(d) EAC = BAC

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7.4 The PM is appointed to manage a project that has just been given approval
to start the planning phase. New to the organization, she joins a project
team previously chosen by top management. The best method of initiating
the communication process with the team and to establish expectations is
by:
(a) Sending a formal memorandum to each team member to outline
project objectives, requirements of the team, and time frame
(b) Calling a briefing session to set objectives of the management and
direct how these objectives will be met
(c) Calling a kick-off meeting to present the objectives and open the
floor for discussion on how the objectives will be achieved
(d) Preparing a work assignment list and sending a copy to each
individual tasked with accomplishing a planning task

7.5 The project environment is always in need of effective communication


where individuals exchange information. When everyone is permitted to
talk to anyone, essential communications:
(a) Can take the shortest route from the sender to the person needing the
information
(b) Are lost in the myriad of informal discussions and most often is
never delivered to the intended receiver
(c) Take as much as three times longer than when formal communication
channels are followed
(d) Unfavourably change the context in which complex issues are
delivered as compared to the formal written communications

7.6 When the project charter was signed, there were only two people working on
the project. At the time of the kick-off meeting, there were six. By the time
the work breakdown structure had been finished, the team had grown to 24. At
the hand-over to the customer, only eight people remained on the project.
Referring to two-way communication lines within the team, which of the
following statements is correct?
(a) The difference in communication lines between initiation and closing is
27
(b) The largest number of communication lines is 552.
(c) The number of communication lines follows an S-curve as you progress
through your project
(d) The number of communication lines at the time of the kick-off meeting
is 30

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7.7 The PM is called to an information meeting with the external customer and a
problem is raised. This problem has major implications, but the customer
wants to pursue a solution at the meeting. The PM should:
(a) Give the customer a range of solutions that might be acceptable to
his/her company
(b) Give the customer an interim solution which must be approved by
his/her boss
(c) Collect as much information as possible on the problem without
committing his/her company to a solution
(d) Tell the customer that she will not address any problems because this
is only an information exchange meeting

7.8 Customers will often attempt to resolve issues in meetings with the project
manager. The project manager should anticipate the raising of issues and
be:
(a) Ready and willing to give an immediate response
(b) Sensitive to all the nuances of the issues, but have a well-thought out
answer before responding to the customer
(c) Ready to deflect the issues through persuasion and argument
(d) Sensitive to the customers issues but refuse to respond unless each is
formally endorsed by his management

7.9 The matrix organization is known for all of the following EXCEPT:
(a) Complexity of communication
(b) High amount of conflict
(c) Dual focus on quality and cross-functional co-ordination
(d) Less communication is required

7.10 The main player in project communications is the __________.


(a) Sponsor
(b) Project manager
(c) Functional manager
(d) Customer

7.11 You are giving your team instructions on how to perform a new test which
is different from the way that the team had performed it previously. The
best way to ensure that the team has understood what you want is to:
(a) Obtain feedback
(b) Analyze the team's perception barriers
(c) Use multiple media in presenting the instructions
(d) Ensure redundancy in the communication

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7.12 You are the Director of the Project Management Centre of Excellence in a
weak matrix. You observe that projects tend to repeat the same mistakes. The
project schedule templates already include a lessons learned task. There is a
lessons learned repository. It is jokingly said that they are lessons observed
instead of lessons learned. What might be the most effective thing for you to
do:
(a) Hold the project managers responsible to carry out the lessons learned
meeting and to document the lessons
(b) Publish the lessons in a company-wide newsletter
(c) Add an expectation in the Project Charter template, that project
managers will search for lessons learned at the launch of the project
(d) Hold the lessons learned meetings at the ends of the projects yourself

7.13 Which of the following is NOT an element of preparing the


communications plan?
(a) Determining the information and communication needs of vendors
(b) Identifying the influence and interests of the stakeholders, and
document their needs and expectations
(c) Assessing the channels and media required to communicate to each
team member
(d) Creating performance reports and lessons learned

7.14 In the PMBOK Guide, the Project Management Plan is an input to all of
the following EXCEPT:
(a) Plan Communications
(b) Distribute Information
(c) Manage Stakeholder Expectations
(d) Report Performance

7.15 In the PMBOK Guide, performance measurements form part of the
____________ component of the Report Performance process.
(a) Inputs
(b) Tools and techniques
(c) Outputs
(d) None of the above

7.16 Your team increased from four to five members. How many more
potential lines of communication are there among the team members?
(a) 10
(b) 4
(c) 5
(d) 6

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7.17 The Drafting Department has just assigned a drafter to your project whom
you have never previously met. You inform him the way you want the
drawing and ask him if he understood what you said. He responds, "Yes"
Two weeks later, you receive the drawing and find out that the drawing is
not to your specifications. You question the drafter, and he responds, "This
is the standard way we always prepare these drawings." If we consider this
to be a communication failure, what would have been the most effective
way for you to avoid it?
(a) Communicate with the drafting manager instead
(b) Look for noise factors and avoid them
(c) Use redundancy by telling him your message twice
(d) Make better use of feedback

7.18 Communication planning is most tightly linked with


(a) Cost estimates
(b) Organizational policies
(c) Cost budgets
(d) Performance measurements

7.19 The following is not a type of performance reporting


(a) Status reporting
(b) Variance reporting
(c) Forecasts
(d) Benchmark reporting

7.20 Everyone on the project team is outgoing and the company has a casual work
environment. During team meetings, there are often 2 or more people speaking
at the same time. What should the project manager do?
(a) Establish meeting protocols
(b) Have a training session about rules of order for meetings
(c) Make sure the minutes of the meetings are well-documented
(d) Nothing. There is no evidence there is a problem

7.21 Manual filing systems, electronic databases, and past-project schedules are
examples of
(a) A communication management plan
(b) Organizational process assets
(c) Enterprise environmental factors
(d) Configuration management tools

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 58
7.22 When negotiating across cultures, which is not a good idea:
(a) Listen to the whole message before offering a response
(b) Concentrate on the message rather than the style of the presentation
(c) Concentrate on the style of the message rather than the message
(d) Take notes during the presentation

7.23 In preparing for an international business encounter, which is the LEAST


true (or least important) of the following:
(a) Become familiar with local non-verbal patterns of communication
(b) Learn to postpone making a judgment or decision
(c) Understand that cultures are partly genetic (nature) and partly
learned (nurture)
(d) Understand your own culture and how it influences who you are

7.24 To initiate the communication process with a view to establishing


expectations for a newly-approved project, the team leader must:
(a) Call a briefing session
(b) Prepare a work assignment
(c) Send a formal memorandum
(d) Call a kick-off meeting

7.25 Project leaders need to encourage communications so as to achieve


effective problem solving and decision-making as well as a higher
performance. The following statement is appropriate toward this goal:
(a) The main issues you are identifying are
(b) The three main issues I think you are identifying are
(c) These are the main issues identified. Lets move on.
(d) These are non-issues.

7.26 The Issues Register (or Issues Log)


(a) Is a part of document control, recording revisions to documents, and
the issue of documents to stakeholders
(b) Documents matters in question or in dispute
(c) Is part of Configuration Management
(d) Is not part of project management

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 59
8. Project Risk Management

8.1 Project risk management means the following throughout the life cycle
of a project.
(a) Planning, researching, analyzing, reporting risk
(b) Planning, identifying, analyzing, responding to risk
(c) Planning, reviewing, monitoring, managing risk
(d) Planning, identifying, analyzing, mitigating risk

8.2 If the data resulting from an analysis of project historical results is


normally distributed, the resulting frequency histogram will be:
(a) What we expect to see
(b) Probably skewed to one side of the mean
(c) In a beta distribution shape
(d) Equally distributed around the mode

8.3 A project risk may be scored on two scales:


(a) Severity of impact, timing of impact
(b) Cost, schedule
(c) Probability, impact
(d) Frequency, our risk tolerance

8.4 Risk event or condition is a description of what might happen to the


projects _____________.
(a) Uncertainty
(b) Benefit or detriment
(c) Schedule & Budget
(d) Known-unknowns

8.5 Contingent response strategies:


(a) Identifiy strategies to be used if specified risk events occur
(b) Are means to address risks to the project and assign them through
a formal process
(c) Lead to the development of contingency reserve within the cost
and schedule baseline
(d) Utilize simulations, decision trees, and expected monetary value

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8.6 You are negotiating with a seller to provide an unusual solution which has
never been accomplished before. Both of you attempting to reduce your
risk, you want to award a ______contract, and similarly, the seller will
sign only a _______contract.
(a) Letter, formal
(b) Fixed price, cost reimbursable
(c) Cost plus, fixed price
(d) No-fault, no-obligation

8.7 Your project is one with many hazards that may injure one or more
persons. The project manager may consider the following as a means of
transferring the risk.
(a) Abandoning the project
(b) Buying insurance for personal bodily injury
(c) Establishing a contingency fund
(d) Establishing a management reserve

8.8 A risk owner:


(a) Is the customer in a cost-reimbursable contract
(b) Watches the risk, looks for triggers
(c) Suffers the impact
(d) Is shielded by the Project Sponsor

8.9 Intellectual property rights of an individual or organization by means of


patent or copyright have value to the owner. Any infringement on those
rights during the implementation of a project can have the following
effect:
(a) Cause a lawsuit to be initiated for damages
(b) Cause the project to be halted pending a legal determination of
property rights
(c) Cause damages to be awarded to the holder of a patent
(d) All of the above

8.10 Qualitative risk analysis for a project can well be started by using a
document that ensures all project elements are evaluated. The project
document best suited is:
(a) Contract statement of work
(b) Specification
(c) Statement of work
(d) Scope statement

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8.11 Implied warranties are usually those associated with the following:
(a) Operability, durability
(b) Lawful use of the product, safety of use
(c) Conformance to specifications
(d) Fitness for purpose or use

8.12 Risk of property loss may be transferred to an insurance company. The


project manager can calculate the ratio of insurance premium to the
expected value of a loss, to make an informed decision about buying
insurance. For example, if the insurance premium is $10,000, value of the
property is $200,000, and probability of loss is 4%, the insurance:
(a) Is desirable because it will cost less than the probable losses
(b) Is undesirable because it costs more than the probable losses
(c) May be desirable or not depending upon the stakeholders risk
tolerance
(d) Is desirable because it transfers the $200,000 possible loss

8.13 Project risk should be identified and assessed during the planning phase.
Once the execution phase starts, it may be too late to objectively assess
risk and select the more attractive alternatives. During the execution
phase, some indications of risk (i.e., failure to meet the projects
objectives) may be:
(a) Instability of project progress information
(b) Conflict between the project manager and customer
(c) Numerous change orders pending approval
(d) All of the above

8.14 In risk analysis, expected value can be used as a means of determining the
weighted outcome of alternatives. The formula for this weighted outcome
is the sum of two or more of the following:
(a) Probability of outcome divided by the outcome in dollars
(b) Probability of outcome multiplied by the outcome in dollars
(c) Desired outcome multiplied by the outcome in dollars
(d) Desired outcome divided by the outcome in dollars

8.15 Which of the following answers ranks project cost estimating methods in
order of increasing potential accuracy?
(a) Parametric, Bottom-Up, Analogous
(b) Analogous, Parametric, Bottom-Up
(c) Bottom-Up, Analogous, Parametric
(d) Bottom-Up, Parametric, Analogous

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 62
8.16 When risk quantification produces a list of opportunities and threats:
(a) All opportunities and threats should be pursued vigorously
(b) All opportunities should be pursued
(c) All threats and opportunities should be studied thoroughly to
determine their costs
(d) Some opportunities and threats may be set aside with no further
action.

8.17 A possible weakness of Monte Carlo simulation methods for schedule risk
analysis is:
(a) The risks may be statistically independent
(b) The risk probability may not be normally distributed
(c) Risk and cost are inseparable
(d) It only considers those schedule risks for tasks which are in the
schedule network

8.18 Risk A has a 10% chance of happening on your project, and unrelated
Risk B has a 40% chance, and unrelated Risk C has a 10% chance. What
is the probability that all three will happen?
(a) 60%
(b) almost 100%
(c) 0.4%
(d) 40%

8.19 We have to select one of several competing strategies. To do so, we have


estimated the possibility of three future scenarios. Based on the table
below, which strategy has the highest expected monetary value?
PAYOFF TABLE (Profit in Millions)
Strategy Scenario 1 (25%) Scenario 2 (50%) Scenario 3 (25%)
S1 80 50 120
S2 80 80 80
S3 160 120 -20
S4 20 40 20
S5 -20 100 220

(a) S2
(b) S3
(c) S4
(d) S5

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 63
8.20 The ultimate purpose for risk management is:
(a) Analysis
(b) Reducing uncertainty
(c) Assessment
(d) To develop contingent responses and contingency reserves

8.21 In what type of projects should the principles of risk management be


applied?
(a) When the project is large
(b) When the project is large and there is substantial uncertainty
(c) When the project is large and there is substantial uncertainty and
the consequences of the risk occurring are substantial
(d) All projects

8.22 To approve a project and begin execution before planning and risk
assessment information is complete and available:
(a) May bea consicous choice in order to complete in reduced overall
duration
(b) Is appropriate for non-high-risk projects
(c) Is incompatible with project risk analysis
(d) Is unlikely to require the use of risk triggers

8.23 What is the expected value of a project based on the following data?
Outlook Value Probability
Marginal $60,000 0.25
Good $100,000 0.50
Poor $40,000 0.25

(a) $190,000
(b) $75,000
(c) $100,000
(d) $120,000

8.24 Which of the following scheduling methods uses more of the risk
management concepts?
(a) Precedence Diagramming Method
(b) Benefit-Cost Linear Optimization
(c) Critical Path Method (CPM)
(d) CPM with Monte Carlo Simulation

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8.25 Monte Carlo Simulation:
(a) Was originally developed by Dr. Carlo as part of the Manhattan
Project in the 1940s
(b) Involves gambling
(c) Assumes that future events will occur at random according to pre-
estimated probability distributions
(d) Is a facilitation technique to stimulate creative risk evaluation and
resolution

8.26 In 3-point estimate of duration or cost, the expected value (or mean or
average) of a Beta shaped frequency distribution equals the following.
Note that P means pessimistic, O means optimistic, and ML means the
most likely estimate.
(a) (P-O) / 6
(b) (P + 4ML + O) / 6
(c) (O + ML + P) / 3
(d) [(P-O)(P-O) + (ML-O)(ML-P)] / 18

8.27 Which contract presents the highest cost risk to the buyer?
(a) Fixed price
(b) Cost plus fixed fee
(c) Fixed price incentive fee
(d) Cost plus percentage of cost

8.28 Expected Monetary Value analysis assumes:


(a) Risk aversion
(b) Risk neutrality
(c) Risk seeking
(d) Statistical independence of the variables

8.29 Your company has just initiated an internal project recognizing it has a high
level of risk. The owner of your company, who is also your direct manager,
has just assigned you to be the Project Manager. This situation is both familiar
and uncomfortable. Your response to this situation is to:
(a) Accept the project because the risk level of a project is acceptable if it is
acceptable to the organization
(b) Recommend cancelling the project because you are not comfortable with
the risks
(c) Suggest they assign a different PM
(d) Tell your boss to take a course in Project Risk Management

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 65
9. Project Procurement Management

9.1 In the area of contracting, there are two main types of contracts that reflect
how the total price is determined. The _______ contract has an objective
of a pre-determined end price while the _______contract typically has an
objective of a target end price.
(a) Full value, partial value
(b) Definitive, undefined
(c) Incentive fee, award fee
(d) Fixed price, cost reimbursable

9.2 The selection of the type of contract is important because of the cost risk
involved. The buyer may attempt to transfer the risk to the seller. If so, the
buyer will attempt to award the following type of contract to the seller.
(a) Fixed price
(b) Cost plus
(c) Time and materials
(d) Incentive fee

9.3 Contract terms and conditions may be written in any form that is
understandable and enforceable. Sometimes project personnel attempt to
be creative in developing the document. Given a choice, it is best to:
(a) Prepare a unique document
(b) Tailor an old document
(c) Use standard clauses in contracts
(d) Avoid using contractual documents

9.4 You plan to issue a purchase order (PO) to a supplier to provide services
to the project. The contract is in place when:
(a) Both offer and acceptance has occurred
(b) It has been received by the buyer
(c) It is signed by both seller and buyer
(d) It is issued by the project procurement section

9.5 Many projects have several contracts to award and administer throughout
the project life cycle. Therefore, it is advisable to have a tool that
anticipates and describes the types of contracts required for the project,
namely:
(a) Responsibility matrix
(b) Listing of contracts
(c) Project configuration management plan
(d) Procurement management plan

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 66
9.6 A contract may specify a disputes resolution mechanism to handle
disagreements which may arise during execution of the work. What is the
name of a method which can address matters that the seller and the
customer representative cannot handle themselves?
(a) Configuration Management
(b) Problem Processing Board
(c) Steering Committee
(d) Arbitration

9.7 It is important to review the performance of sellers as a basis for


evaluating them for future procurements. This review is part of the process
of:
(a) Report Performance
(b) Perform Quality Control
(c) Close Procurements
(d) Close Project

9.8 Contracts may be cost reimbursable or fixed price. In a fixed price


contract the buyer must be specific in:
(a) How the work is to be performed, but not necessarily in who will
perform the work
(b) What procedures are to be used, but not necessarily in how the work
will be performed
(c) When the work is to be performed, but not necessarily in what
performance standards will be used
(d) What the supplier is to provide, but not necessarily in how the work
is to be performed

9.9 Project managers choose different types of contracts according to the


situation. In a cost-reimbursable contract, the buyer accepts the following,
but has more input as to how the work is accomplished.
(a) Most or all of the third-party liability, and most or all of the cost risk
(b) All of the cost risk
(c) All of the cost, and the direct supervision
(d) Planning and direction of the work

9.10 Why do RFPs often require that responses be in a standard format?


(a) The customer has a format that they routinely use and they want to
force the sellers to meet its requirements
(b) The suppliers associations have prescribed the format to which all
bidders must comply
(c) The law specifies that all proposals will comply with a standard
format
(d) It helps the buyer assure that all items are covered and the proposals
can be evaluated in a fair and uniform manner

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9.11 An advantage(s) to the customer of a cost reimbursable Purchase Order
(compared to one which is fixed price) can be all of the following
EXCEPT:
(a) Earlier completion time
(b) Allows scope of work to change
(c) Lower bidding effort by prospective sellers
(d) More rigorous bidding effort by the prospective sellers

9.12 Which of the following answers about contract changes is MOST correct?
(a) Detailed scope descriptions and integrated cost/schedule performance
tracking system will eliminate the most common causes of change
(b) Lump-sum contracts are the most favourable for the buyer, in
limiting contract changes
(c) Changes are almost inevitable, and, therefore, the contract should
contain formal procedures to incorporate changes
(d) Changes are harmful to the project and must be prevented

9.13 A project proposal is being prepared and the pricing of the work has been
given to you. In estimating the cost of work, the best source of cost
information is obtained from:
(a) Customer
(b) Historical records
(c) Past project estimates
(d) Top management

9.14 Complete, precise, verifiable description of a system, component,


product, etc describes:
(a) Project Scope Statement
(b) WBS element
(c) Specification
(d) WBS dictionary item

9.15 The disadvantages of fixed price contracts (to a buyer) are:


(a) The risk premium is known
(b) Requires the time to develop a firm knowledge of what is wanted
before contract award
(c) Must be closely followed to avoid overruns
(d) Applicable only to certain industries

9.16 Unit price contract is used when:


(a) Seller is paid when each unit of the work is completed
(b) Each unit of a project has a lump-sum contract
(c) Quality and type of work can be defined, but the quantity is unknown
(d) There are incentives to the buyer to reduce the quantity used

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9.17 In addition to cultural assumptions that are unconsciously present, what
other obstacles face the international negotiator?
(a) Making same concessions as he or she would domestically
(b) Getting consensus implemented at headquarters
(c) Retaining local interpreters/translators
(d) Working within different and sometimes conflicting legal structures

9.18 The formal invitation to submit a price for common or standard goods or
services is often referred to as:
(a) Request for Proposal
(b) Request for Quotation
(c) Contractor Initial Response
(d) Request for Information

9.19 A waiver is a term applied to the relinquishing of the rights of:


(a) Supplier
(b) Owner
(c) Buyer
(d) Any party to the contract

9.20 When preparing a large complex proposal in response to a formal request


for proposals:
(a) Bidders can expect to invoice their proposal costs if successful in
winning the competition
(b) A bidder will be eliminated if significant proposal instructions are
not followed exactly
(c) A bidder who submits an alternate proposal instead of a fully
compliant proposal can expect consideration of the alternate even if it
deviates significantly from the requirements document
(d) Bidders can expect to invoice their proposal costs if unsuccessful in
winning the competition

9.21 Adhering to contractual requirements of the customer is the ultimate


responsibility of the
(a) Functional Manager
(b) Project Team
(c) Controls Officer
(d) Project Manager

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9.22 By which means is a supplier able to control cost overruns caused by
changing requirements?
(a) Project cost and risk review
(b) Subcontract amendments
(c) Change control
(e) Fixed price sub-contracts

9.23 You are a Project Manager newly assigned to a pre-existing project that
your firm is performing for an outside customer. You discover a clause in
a subcontractor's contract with you, which will lead unavoidably to a 5%
unbudgeted increase in the total cost of the project.
(a) You follow the Configuration Management process and take it to the
Configuration Control Board
(b) This is bad news, but there is no need to do anything now it is a
sunk cost by the previous project manager
(c) Present it to the customer it is a scope change that requires a budget
increase
(d) Show it in the ETC and EAC in your project cost report, which will
result in a Varience at Completion.

9.24 You (the customer) are planning to contract out a scope of work that is not
well defined. In addition, you would like to actively participate with your
own forces in the performance of the work. Which contract type is the
most suitable for this situation?
(a) Time and Material
(b) Cost Plus Fixed Fee
(c) Cost Plus Incentive Fee
(d) Firm Fixed Price

9.25 Evaluation and selection criteria are often:


(a) Developed by each vendor independently in order to competitively
anticipate the buyers real requirements
(b) Kept confidential by the customer
(c) Communicated to all bidders during the solicitation process
(d) Communicated to all bidders after the source selection, in case of a
bid protest

9.26 Cost control by a buyers contract administrator on a fixed price type of


contract includes:
(a) Verifying vendors time sheets and material receipts
(b) Negotiating prices with vendors suppliers and subcontractors
(c) Earned value analysis for vendors work
(d) Verifying requests for payment against contract payment terms

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9.27 You have inherited a substantial fixed price contract with poor scope
definition. Contract work is 20% complete. The relationship with your
contractor is already tense because your predecessor refused to approve
the contractors change orders claiming that they were implied in the
contract scope of work. What is probably your best strategy in order to
restore good relationship, satisfy the project requirements and complete
the contract work within reasonable cost? Your actions are governed by
the strict company code of ethics.
(a) Continue under the same contract; tighten up control of contractors
work
(b) Using new information that has become available since the signing of
the contract, negotiate with the contractor a new contract price based
on the new scope definition
(c) Convert the contract to one of the cost reimbursable types
(d) Terminate the contract and re-bid the work with new scope definition

9.28 The seller delivers a Cost Plus Incentive Fee project at an actual cost of
$90,000. The terms of the contract are a target cost of $100,000, a target
fee of $10,000, and therefore a target price of $110,000. The over-
run/under-run share ratio is 70% to the customer and 30% to the seller.
The final price is:
(a) $13,000
(b) $93,000
(c) $103,000
(d) $113,000

9.29 You have a Cost Plus Incentive Fee contract with the seller. The target
cost is $400,000, the target fee of $40,000, the share ratio is 80%
(customer) to 20% (seller), the maximum fee is $60,000 and the minimum
fee is $20,000. The seller has actual direct costs of $480,000. How much
fee will the seller collect?
(a) $16,000
(b) $24,000
(c) $40,000
(d) $504,000

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9.30 Your seller is working on a Fixed Price contract that calls for a single
payment upon completion. Part way through the contract, the seller tells
you that, although the company is profitable, poor cash flow is making it
difficult for them to pay their employees and subcontractors. The seller
asks for a partial payment for work accomplished. Which of the following
actions by you is most likely to cause problems for the project?
(a) Negotiating a change to the payment conditions in the contract
(b) Making no payments because it is contrary to the conditions of the
contract
(c) Starting partial payments for work accomplished
(d) Paying for work accomplished to date

9.31 The Make-or-buy analysis considers


(a) Direct costs only
(b) Direct and indirect costs
(c) Direct and sunk costs
(d) Direct and indirect and sunk costs

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 72
Answers to Sample Questions

1. Processes and integration answers real or potential conflicts of interest to



1c PMBOK 2.4.2 the appropriate stakeholders we treat
the appearance of a conflict of interest
2b PMBOK 3.5

as a conflict of interest (The
3c PMBOK 3.6 question is from an actual case
4b PMBOK 3.6

published by the National Society for
Professional Engineers.)
5d PMBOK Figure 2-1. Full-time,
sharing, and budgets are the key 23b Ferraro, Cultural Dimensions of
International Business. According to
6b PMBOK 1.2
Saudi Arabian customs, the landlord
7d was treating Lorna with respect and
8b Kerzner, Project Management: A Systems utmost politeness. Since her husband
Approach, 7th ed p97 was absent, it would have been

9d PMBOK 1.4.2 managed in a considered an invasion of her privacy to
coordinated way speak to Lorna.

10d PMBOK Table 3-1 24c Ferraro, pp64, 167. Exam questions will

not be this lengthy. And you will not be
11c PMBOK 4.6 first para formally expected to know actual cultural
complete the project or phase differences

12a PMBOK 4.1.1.1 and 12.1.3.2. Do not 25b It could be considered to be a perceived
confuse with the Procurement SOW conflict of interest in American business

13a PMBOK 4.3.2.2 culture

14d PMBOK 4.4.1.3 and glossary 26b PMI Code clause 3.3.4

15c PMBOK 4.1 (or could be PMO or 27a PMI Code clauses 5.2.3
portfolio steering committee) 28a PMI Code clauses 2.3.2, 2.3.3

16a PMBOK 2.3 and glossary
29c quotes PMBOK 4.1.1.1; PMBOK 1.4.3
17b is less strong

18c PMBOK Table 1-1. (a) is for
portfolios; (b) is for programs 2 Scope answers

19a PMBOK Table 1-1. (b) is for 1d level of detail will vary,
portfolios; (c) is for projects
PMBOK 5.3.2.1
Note: The PMP and CAPM exams will
2c PMBOK Fig 5-2, (c) is an input
NOT include an answer all of the
3b PMBOK 5.3.2.1
above
4d Independent, not interdependent
20c PMBOK 4.5
5d PMBOK 4.1
21a
6b PMBOK 4.5, glossary
22c She should have more fully disclosed it.
The PMI Code of Ethics and 7b The author admits to being a purist
Professional Conduct clause 4.3 says, 8b PMBOK 4.1

We proactively and fully disclose any

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 73

9b PMBOK 5.3 10b

10d PMBOK 5.2.3.1. Answer (d) is quoted 11d PMBOK 6.6.3 Outputs do not

from the PM Plan, PMBOK 4.2.3.1 include CV, CPI, EAC

11d PMBOK 5.3 and glossary 12d

12d PMBOK 5.3.2.2 13b PMBOK 6.2.2.1

13c PMBOK 1.3 14a

14a PMBOK 4.4.1.3, glossary 15d (d) is simply untrue

15c Quoted from PMBOK top of p105 16c See illustration
16b Numbering system should reveal the 17c See illustration
parent-child relationships, see 18c See illustration

illustration. PMBOK 5.3.3.1 unique
identifier provides a structure 19b See illustration

17c Authorized is the important word. 20c PMBOK glossary



Depending on what the Scope 21d PMBOK pp 46, 120, 135 & glossary
Management Plan says, the 3 other
22b PMBOK 6.2.2.2
reasons may be handled by recording a

variance instead of by a project change 23d PMBOK 6.5.3.1, glossary


and baseline update 24a

18c The answers suggest that there is a 25b PMBOK glossary
process. Follow it!
26d PMBOK glossary
19c PMBOK 4.1.1.2. The Business Case 27c See illustration
precedes the Project Charter
28b If you fast-track, you are performing
activities in parallel instead of
3. Time answers consecutively. The parallel activities
may require the same resources,
1c

therefore you may need more
2b PMBOK 6.2.2.1 discusses PDM
29b Path A-B-F is the critical path, with a
3a length of 8 days, from Monday to
4b Resource levelling is discussed at Monday inclusive

PMBOK 6.5.2.4 30b Definitions are in the PMBOK glossary


5c Discussed in PMBOK glossary
31a PMBOK glossary, 6.4.2.4, 7.1.2.5

6b PMBOK 6.5.2.7 and Fig 6-1 32c
7c 33a
8b
34c PMBOK 6.5.2.7 & glossary
9d (d) may be true in some circumstances,
but certainly not all, not until after
discussions with the contractor

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 74
Question 2.16

Question 3.16-3.19

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 75
Question 3.27

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 76
4. Cost answers 26b All can be used. Given that the project is
1c (a) is the discount rate; (b) is the Internal half complete, you can probably
Rate of Return, (d) is nonsense. Net effectively re-estimate the remaining
Present Value is not described in PMBOK project tasks
Guide
27c PMBOK 7.1.2

2d PMBOK 7.1.2.4 28d We do not know how much work was
3a PMBOK 7.1.2.2

accomplished
4d PMBOK 6.5.2.7

29c EAC=BAC/CPI=BACxAC/EV for Tasks
1 to 3; EAC=BAC for Task 4
5d
30a PV=71k, EV=82k, SV=11k, SV%=15.7k
6b BAC = $20000, EV=$8000, AC=9000,
CV=EV-AC=-1000 31a (b) is NPV, (c) is NPV, (d) is IRR.
Wikipedia is an excellent reference
7c Not in PMBOK Guide
32c IRR is not good at comparing projects, it
8d SV=EV-PV

is good at evaluating a single project
9c PMBOK 7.3.2 (www.wikipedia.com)
10d Less has been achieved than planned 33d SPI=EV/PV. When complete, EV=PV.
11b PMBOK 12.1.2.3

Therefore SPI=1 and SV=0.
12c SV=EV-PV, therefore EV=800, CV=EV-
AC=50
13d Fleming and Koppelmann, Earned Value 5. Quality answers

PM 1d PMBOK p190 customer satisfaction ...
14a PMBOK 7.3.2.2
conformance to requirements ... and
fitness for use, and ISO 9000:2000
15d
2b PMBOK Fig 8-1, but words are slightly
16c Previous actual costs are better than different
previous estimates!
3b PMBOK 8.3.2.5
17b BAC = $2000 material + $2000

installation = $4000. PV = $2000 4c PMBOK Fig 8-1


materials + $1000 installation = $3000. 5d W. Edwards Deming, and PMBOK Ch 8
EV = $2000 materials + $1100 intro
installation = $3100. AC = $3200) 6d Some of this is discussed in PMBOK Ch


18c PMBOK 7.1.2.3 8 introduction, p 190

19b PMBOK 7.1.1 7c

20b PMBOK 7.3.1.1 & 11.1.1.2 8d (d) does not make any sense

21c PMBOK 7.2.3.1 9b This type of statistical question has been
22d PMBOK 7.1.2.3
on the exam in the past; we cannot know
for sure for the present
23a PMBOK 7.1.2.2
10d Listed but poorly explained in PMBOK
24a 8.1.2.3. Fig 8-6 is a clumsy example of an
25d All are real methods, but (d) is the most SPC chart
appropriate
11d PMBOK Ch 8 introduction, p 190

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 77

12a PMBOK pp190-191 11b Because the project will end

13d PMBOK 8.3.2.1 12b

14b Slight reference in PMBOK Ch 8 13b PMBOK 2.3.3
introduction, p 190
14b PMBOK 2.3.3

15c PMBOK 8.1.2.2 and glossary 15b Smoothing is less rigorous than levelling
16b (a) is QC, (c) is quality policy, (d) is a 16c Weak matrix is sometimes called project

definition of quality, PMBOK p189 co-ordinator organization

17b PMBOK 8.3.2.2 & 8.1.2.3 17d Much of (d) is done by the functional

18c PMBOK 8.3.2.3 manager

19b PMBOK p190 18c Stuckenbruck chapter in Adams book
20d 19a Cable & Adams chapter in Adams book

21a PMBOK 8.1.2.3 & 8.3.2.3 20c
22c 21c
23a 22c Not all exam questions are based on the

24c PMBOK Guide


25c 23b
26d PMBOK 8.1.2.4
24d Be prepared for questions on theories of
Maslow and MacGregor, even though
Note: The PMP and CAPM exams will NOT they are not mentioned in the PMBOK

have both in an answer Guide


27d Pareto chart
25d PMBOK 9.3.2.3

28a PMBOK 11.4.2.2 26d It is unlikely that the Project
Management Plan is ready for
presentation, given that the team is only
6. Human Resources answers now assembled

1b PMBOK 9.3.2.3 27b Legitimate = formal authority within
organization
2b Adams
28d (a) sounds like a functional role -
3d PMBOK 9.4.2.3

probably not for her to authorize; she
4b PMBOK 9.1.3.1, 9.2.3 should do (b) and (c) herself

5a PMBOK 9.1.2.1 29a Projectized always has the highest
6d The traditional power types are: reward, authority, by definition
coercive, referent, expert, legitimate 30d www.dictionary.com
power -- Adams
31d Because of the projectized environment,
7c Stuckenbruck chapter in Adams book he may be facing insecurity about future
8c Stuckenbruck chapter in Adams book employment
9c 32b Brake, Walker and Walker, Doing
Business Internationally, pp 155-157
10a Because the project will end
33d Ibid, p214

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 78

21b PMBOK 2.4.3, 10.2.1.4
22c Ferraro, p126, look beyond the stylistic
7. Communications answers
features and concentrate on the content of
1d As for managers in general the message

2b PMBOK 10.1.3.1 23c Ferraro, pp136-139, cultures are

3c PMBOK 10.5.2.2 & 7.3.2.2. (In order to learned
forecast a schedule overrun per answer b, 24d
earned value is not enough. We also need
to look at the critical path in the 25b Verma, p194

schedule.) 26b PMBOK 9.4.2.4 calls it an Issues Log;
4c but future editions may call it a Register
instead. Also see Glossary
5a

6a PMBOK 10.2.2.1, Metcalfes Law, see
www.wikipedia.org
8. Risk answers
7c
1b Closest match to PMBOK Fig11-1
8b
2d A normal distribution is a symmetrical
9d bell-shaped curve. Other shapes are in

10b PMBOK Figure 11-14

11a team understands is the key 3c PMBOK 11.3.2

12c You probably do not have the authority 4b PMBOK glossary, Risk
for (a), and (b) is an insensitive way to
5a PMBOK 11.5.2.3
publish negative experiences, and the
6b PMBOK 11.5.2.1, last sentence in
lessons seem to be captured already.
transfer
Maybe getting project managers to
commit to the Project Sponsor to go and 7b PMBOK 11.5.2.1, transfer
collect appropriate lessons would be most
8b PMBOK 11.5 intro, 11.5.1.1, 11.5.3.1,
effective 11.6

13d PMBOK 10.2 9d

14a PMBOK Fig 10-1 Note: The PMP and CAPM exams will NOT
15a PMBOK Fig 10-1

have all of the above in an answer

16b Old = 4(4-1)/2 = 6. New = 5(5-1)/2 = 10. 10d PMBOK 11.2.1.4
Or simply: the new team member has to 11d As opposed to explicit written

communicate with 4 people. PMBOK warranties
10.1.2.1
12c PMBOK p276
17d Question adapted from Kerzner 13d

18b PMBOK 10.2.1 and 2.4.3. Policies are
14b PMBOK 11.4.2.2
part of organizational process assets.
15b
19d PMBOK 10.5.3.1 (d is meaningless)
16d
20a
17d

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 79
18c (probability of A) x (probability of B) x 8d
(probability of C) = 0.4% 9b
19d EMV = 75,80,95,30,100. Payoff tables
10d PMBOK 12.1.3.4 uses slightly different
are not in the PMBOK Guide words

20b PMBOK p273 11d
21d 12c
22a but that itself is risky! Max Wideman, 13b
Risk Management, PMI
14c PMBOK glossary
23b
15b
24d PMBOK 11.4.2.2
16c Not in PMBOK Guide, but it is worth
25c PMBOK 11.4.2.2 recognizing this type of contract
26b (a) is the Standard Deviation for a beta
17d Ferraro, p116
distribution; (c) is the mean for a
triangular distribution; (d) is the SD for a 18b PMBOK 12.1.3.4

triangular distribution. PMBOK 6.4.2.4, 19d Not in PMBOK Guide
7.1.2.5 20b
27d CPPC was dropped from the PMBOK 4th

21d Martin chapter in Adams book


ed., but lets be aware of it
22c PMBOK 12.3.2.1
28b PMBOK 11.4.2.2
23d This is more of a cost management
29a PMBOK Ch 11 intro at top of p276. Get question
your boss involved in the project risk
management process! 24a

25c Slight reference in PMBOK 12.1.3.5
26d
9. Procurement answers 27b

1d PMBOK 12.1.2.3 28c The final price is $103K = $90K cost +
2a PMBOK 12.1.2.3
$10K target fee + $3K incentive
3c 29b The final fee = $40 target fee [20% x
$80,000 overrun], with the vendor
4a Offer and acceptance can happen suffering by 20% of the overrun
different ways
30b
5d PMBOK 12.1.3.1
6d 31b PMBOK 12.1.2.1. Sunk costs are not

mentioned in the PMBOK Guide and are
7c PMBOK 12.4.1.2, and also in 12.3.2.2 in any case not relevant to this question

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 80
Where to Get More Preparation Workbooks
and Sample Tests
There are lots of good preparation workbooks with sample exams. The ones we
prefer are the following. All are soft cover books and available at internet
bookstores. If you buy one, make sure it is aligned with the appropriate edition of
the PMBOK Guide.

Ward, LeRoy, ed. PMP Exam: Practice Test and Study Guide, ESI International.
An excellent sample test. This book has 600 questions prepared by an
organization with a lot of experience in preparing candidates for the
examination. Good practice, especially for situational questions.

Mulcahy, Rita. PMP Exam Prep. Excellent study guide and sample test.
Comes with games and other ways to help you learn. Exam writers say her
sample test is very much like the real exam, but maybe a bit easier. Easy to
find on the internet, and you may be able to buy a used copy.

Greene and OReilly. Head First PMP . Lengthy but very readable, designed in a
very visual style.

INSIDER TIP: There are study groups, preparation suggestions, and sample
tests at a number of web sites. Some of them offer free demos. See our
latest list at www.procept.com/pmresources.html. We have not
reviewed the various sites for quality.

2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 81
2011 Procept Associates Ltd. Farndales PMP and CAPM Preparation Guide 82