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In examination, you will get each question one by one on computer

screen.

1 Which of the following is an advantage of centralized contracting?

A. Makes it easier to find vendors


B. Increases company expertise in contracting
C. Gives more loyalty to the project
D. Allows a contracts person to work on a single project

Answer: B

Hint: A centralized department is created to bring in processes and


uniformity, which leads to development of expertise.

2 Risks will be identified during which risk management process


(es)?

A. Perform Quantitative Risk Analysis and Identify Risks


B. Identify Risks and Control Risks
C. Perform Qualitative Risk Analysis and Control Risks
D. Identify Risks

Answer: B

Hint: PMBOK 5 Page 312, Figure 11.1

3 The highest point of Maslow's hierarchy of needs is:

A. Physiological satisfaction
B. Attainment of survival
C. Esteem
D. Self-actualization

Answer: D
Hint: Read Maslow's theory on hierarchy of needs. Self-
actualization is on top of the pyramid.

4 Who is ultimately responsible for quality management on the


project?

A. Project engineer
B. Project manager
C. Quality manager
D. Team member

Answer: B

Hint: PMBOK 5 Page 16, Sec 1.7 Role of the Project Manager

5 In the context of estimation, a heuristic is best described as a::

A. control tool.
B. scheduling method.
C. planning tool.
D. rule of thumb.

Answer: D

Hint: PMBOK 5 Page 204, Sec 7.2.2 Estimate Costs: Tools &
Techniques

6 If earned value (EV) = 350, actual cost (AC) = 400, planned


value (PV) = 325, what is cost variance (CV)?

A. 350
B. -75
C. 400
D. -50

Answer : D

Hint: CV = EV - AC
7 A project manager has just been assigned to a new project and
has been given the preliminary project scope statement and the
project charter. The first thing the project manager must do is:

A. create a project scope statement.


B. confirm that all the stakeholders have contributed to the scope.
C. analyze project risk.
D. begin work on a project management plan.

Answer: B

Hint: PMBOK 5 Page 66 Sec 4.1 Develop Project Charter

8 You are taking over a project during the planning process group
and discover that six individuals have signed the project charter.
Which of the following should most concern you?

A. Who will be a member of the change control board


B. Spending more time on configuration management
C. Getting a single project sponsor
D. Determining the reporting structure

Answer: D

Hint: PMBOK 5 Page 66 Sec 4.1 Develop Project Charter

9 The project manager is making sure that the product of the


project has been completed according to the project management
plan. What part of the project management process is he in?

A. Planning
B. Executing
C. Monitoring and controlling
D. Closing

Answer: D

Hint: PMBOK 5 Page 57 Sec 3.7 Closing Process Group


10 The WBS and WBS dictionary are completed. The project team
has begun working on identifying risks. The sponsor contacts the
project manager, requesting that the responsibility assignment
matrix be issued. The project has a budget of U.S. $loo,ooo and is
taking place in three countries using 14 human resources. There is
little risk expected for the project and the project manager has
managed many projects similar to this one. What is the next thing
to do?

A. Understand the experience of the sponsor on similar projects.


B. Create an activity list.
C. Make sure the project scope is defined.
D. Complete risk management and issue the responsibility
assignment matrix.

Answer: B

Hint: PMBOK 5 Page 149 Sec 6.2 Define Activities

11 Risk tolerances are determined in order to help:

A. the team rank the project risks.


B. the project manager estimate the project.
C. the team schedule the project.
D. management know how other managers will act on the project.

Answer: A

Hint: PMBOK 5 Page 311 Risk tolerance

12 A project manager is employed by a construction company and


is responsible for the furnishing of the completed building. One of
the first things that the project manager for this project should do
is to write a:

A. Work breakdown structure.


B. Budget baseline.
C. Project charter.
D. Project plan.

Answer: C

Hint: PMBOK 5 Page 66 Sec 4.1 Develop Project Charter; Page 16,
Sec 1.7 Role of the Project Manager

13 Your company has an emergency and needs contracted work


done as soon as possible. Under these circumstances, which of the
following would be the helpful to add to the contract?

A. A clear contract statement of work


B. Requirements as to which subcontractors can be used
C. Incentives
D. A force majeure clause

Answer : C

Hint: Read about Type of Vendor Contracts such as Cost Plus


Incentive Fee (CPIF)

14 The "halo effect" refers to the tendency to:

A. promote from within.


B. hire the best.
C. move people into project management because they are good in
their technical fields.
D. move people into project management because they have had
project management training.

Answer : C

Hint: Flaw in Expert Judgment when people good in certain areas


are deemed as good in all areas.

15 A project manager is trying to complete a software


development project, but cannot get enough attention for the
project. Resources are focused on completing process-related work
and the project manager has little authority to properly assign
resources. What form of organization must the project manager be
working in?

A. Functional
B. Matrix
C. Expediter
D. Coordinator

Answer: A

Hint: PMBOK 5 Page 21, Sec 2.1.3 Organizational Structures

16 All of the following are characteristics of a project EXCEPT:

A. Temporary
B. Definite beginning and end
C. Interrelated activities
D. Repeats itself every month

Answer : D

Hint: PMBOK 5 Page 3, Sec 1.2 What is a Project?

17 A team is using a fishbone diagram to help determine what


quality standards will be used on the project. What part of the
quality management process are they in?

A. Perform quality control


B. Perform quality assurance
C. Plan Quality Management
D. Variable analysis

Answer : C

Hint: PMBOK 5 Page 235, Sec 8.1.2 Plan Quality Management


18 The equivalent of cost reimbursable contracts is frequently
termed:

A. Back charge contracts.


B. Fixed price contracts.
C. Progress payment contracts.
D. Cost plus contracts.

Answer: D

Hint: Read about Type of Vendor Contracts such as Cost Plus


Incentive Fee (CPIF)

19 A buyer extends a formal invitation containing a scope of work.


The invitation seeks a response describing the methodology and
results that will be provided to the buyer. This is called:

A. Invitation to bid.
B. Request for information.
C. Request for proposal.
D. Request for bid.

Answer: C

Hint: PMBOK 5 Page 558 Request for proposal definition

20 A project manager must have some work done by an outside


contractor. This work has a great deal of risk associated with it,
and it has become very difficult to find a contractor willing to take
on the job. Which of the following types of contract would offer the
greatest incentive to the contractor?

A. Cost plus percentage of cost as an award fee


B. Cost plus fixed fee
C. Cost plus incentive fee
D. Firm fixed price

Answer: A
Hint: Option A is most lucrative incentive while option C also offers
incentives. Read about Type of Vendor Contracts such as Cost Plus
Incentive Fee (CPIF)

21 Purchasing insurance is considered an example of risk:

A. mitigation.
B. transfer.
C. acceptance.
D. avoidance.

Answer B

Hint: PMBOK 5 Page 344 Sec 11.5.2.1 Strategies for Negative Risks

22 A cost performance index (CPI) of 0.89 means:

A. at this time, we expect the total project to cost 89 percent more


than planned.
B. when the project is completed we will have spent 89 percent
more than planned.
C. the project is only progressing at 89 percent of that planned.
D. the project is only getting 89 cents out of every dollar invested.

Answer: D

Hint: PMBOK 5 Page 219 - Cost performance index

23 In a matrix organization, which of the following is true??

A. The project manager is responsible for employee skills


improvement.
B. The functional manager is responsible for employee skills
improvement.
C. The project manager is responsible for the employee.s annual
appraisal.
D. The employee is responsible for his or her own skills
improvement.
Answer: B

Hint: PMBOK 5 Page 21, Sec 2.1.3 Organizational Structures

24 Your program manager has come to you, the project manager,


for help with a bid for her newest project. You want to protect your
company from financial risk. You have limited scope definition.
What is the BEST type of contract to choose?

A. Fixed price (FP)


B. Cost plus percent of cost (CPPC)
C. Time and material (T&M)
D. Cost plus fixed fee (CPFF)

Answer : D

Hint: CPFF is the best contract type from buyer perspective as the
seller is aware that cost overruns may have to be borne by him.

25 The project management process groups are:

A. Initiating, planning, expediting, and control.


B. Plan, organize, develop, and control.
C. Plan, do, observe, commit.
D. Initiating, planning, executing, monitoring &controlling, and
closing.

Answer: D

Hint: PMBOK 5 Page 49 Definitions of Process Groups

26 In which project management process group is the detailed


project budget created?

A. Initiating
B. Before the project management process
C. Planning
D. Executing
Answer : C

Hint: PMBOK 5 Page 61 Table 3-1 Project Management Process


Group and Knowledge Area Mapping

27 Which of the following conflict resolution techniques will


generate the MOST lasting solution?

A. Forcing
B. Smoothing
C. Compromise
D. Problem solving

Answer : D

Hint: Except Problem Solving, all other approaches are temporary


solutions resulting in recurring conflicts.

28 Breaking the major deliverables into smaller, more manageable


components to provide better control is called:

A. Scope planning.
B. Decomposition.
C. Scope base lining.
D. Bill of Materials (BOM).

Answer : B

Hint: PMBOK 5, Page 128, Sec 5.4.2.1 Decomposition

29 Which of the following is NOT an input to the initiating process


group?

A. Company processes
B. The company culture
C. Historical WBSs
D. Project scope statement
Answer : D

Hint: PMBOK 5, Page(s) 61, 106. Scope statement is output of


Define Scope process under Planning.

30 Workarounds are determined during which risk management


process?

A. Identify Risks
B. Perform Quantitative Risk Analysis
C. Plan Risk Responses
D. Control Risks

Answer : D

Hint: PMBOK 5, Page 353, Sec 11.6.3.2

31 A person who is involved in or may be affected by the activities


or anyone who has something to gain or lose by the activity of the
project is called a:

A. Team member.
B. Customer.
C. Stakeholder.
D. Supporter.

Answer : C

Hint: PMBOK 5, Page 563, Definition of Stakeholder

32 Quality is:

A. meeting and exceeding the customer's expectations.


B. adding extras to make the customer happy.
C. the degree to which the inherent characteristics fulfill
requirements.
D. conformance to management's objectives.
Answer : C

Hint: PMBOK 5, Page 556, Definition of Quality

33 A schedule performance index (SPI) of 0.76 means:

A. you are over budget.


B. you are ahead of schedule.
C. you are only progressing at 76 percent of the rate originally
planned.
D. you are only progressing at 24 percent of the rate originally
planned.

Answer : C

Hint: PMBOK 5, Page 224, Table7-1 SPI definition, usage and


interpretation

34 Contract closure is different from administrative closure in that


contract closure:

A. occurs before administrative closure.


B. is the only one to involve the customer.
C. includes the return ofproperty.
D. may be done more than once for each contract.

Answer : A

Hint: PMBOK 5, Page 100, Sec 4.6 Close Project or Phase

35 During the full life cycle of the project, a plot of the project.s
expected expenditures will usually follow a characteristic ..S..
shape. This indicates that:

A. There is a cyclic nature to all projects.


B. Problems will always occur in the execution phase.
C. There are high expenditures during closeout.
D. The bulk of the project budget will be spent in the execution
phase.

Answer :D

Hint: PMBOK 5, Page 214, Figure 7-9 Cost Baseline, Expenditures,


and Funding Requirements

36 An output of administrative closure is the creation of:

A. project archives.
B. a project charter.
C. a project management plan.
D. a risk analysis plan.

Answer : A

Hint: PMBOK 5, Page 100, Sec 4.6 Close Project or Phase

37 A temporary endeavor undertaken to create a new product or


service is called a:

A. New product development.


B. Project.
C. Program.
D. Enterprise.

Answer : B

Hint: PMBOK 5, Page 553, Definition of Project

38 An example of scope validation is:

A. Reviewing the performance of an installed software module.


B. Managing changes to the project schedule.
C. Decomposing the WBS to a work package level.
D. Performing a benefit-cost analysis to determine if we should
proceed.
Answer : A

Hint: PMBOK 5, Page 133-134 Sec 5.5 Validate Scope

39 What conflict resolution technique is a project manager using


when he says, "I cannot deal with this issue now!"

A. Problem solving
B. Forcing
C. Withdrawal
D. Compromising

Answer : C

Hint: Avoidance or procrastination to deal with an issue comes


under Withdrawal.

40 Approved Change Requests are an input to:

A. Control Scope and Validate Scope.


B. Direct and Manage Project Work.
C. develop project management plan and develop project charter.
D. Develop Project Management Plan and Develop Schedule.

Answer : B

Hint: PMBOK 5, Page 82, Sec 4.3.1.2 Approved Change Requests

41 A group of related projects that are managed in a coordinated


way that usually include an element of ongoing activity is called a:

A. Major project.
B. Project office.
C. Program.
D. Group of projects.

Answer : C

Hint: PMBOK 5, Page 553, Definition of Program


42 To control the schedule, a project manager is reanalyzing the
project to predict project duration. She does this by analyzing the
sequence of activities with the least amount of scheduling
flexibility. What technique is she using?

A. Critical path method


B. Flowchart
C. Precedence diagramming
D. Work breakdown structure

Answer : A

Hint: PMBOK 5, Page 536, Definition of Critical Path Method (CPM)

43 A project manager has assembled the project team, identified


56 risks on the project, determined what would trigger the risks,
rated them on a risk rating matrix, tested their assumptions and
assessed the quality of the data used. The team is continuing to
move through the risk management process. What has the project
manager forgotten to do?

A. Simulation
B. Risk mitigation
C. Overall risk ranking for the project
D. Involving of other stakeholders

Answer : D

Hint: PMBOK 5, Page 319-321 Sec 11.2 Identify Risks

44 Configuration management plan is:

A. Used to ensure that the description of the project product is


correct and complete.
B. The creation of the work breakdown structure.
C. The set of procedures developed to control changes.
D. A mechanism to track budget and schedule variances.
Answer : C

Hint: PMBOK 5, Page 138, Sec 5.6.1.1 - Configuration


management plan

45 A rough order of magnitude estimate is made during which


project management process group?

A. Project planning
B. Project closing
C. Project executing
D. Project initiating

Answer : D

Hint: PMBOK 5, Page 201, Sec 7.2 Estimate Costs

46The work defined at the lowest level of the breakdown structure


to estimate as well as manage time and cost is called the:

A. Activity.
B. Task.
C. Work package.
D. Cost account.

Answer : C

Hint: PMBOK 5, Page 567, Definition of Work Package

47 All of the following are examples of the cost of nonconformance


EXCEPT?

A. Rework
B. Quality training
C. Scrap
D. Warranty costs

Answer : B
Hint: PMBOK 5, Page 235

48 What type of contract do you not want to use if you do not have
enough labor to audit invoices?

A. Cost plus fixed fee (CPFF)


B. Time & material (T&M)
C. Fixed price (FP)
D. Fixed price incentive fee (FPIF)

Answer : A

Hint: CPFF would involve auditing invoices presented by the vendor


to account for the costs incurred.

49 A project manager has just been assigned to a project. The


document that recognizes the existence of the project is called:

A. The statement of work.


B. The project assignment.
C. The project charter.
D. The product description.

Answer : C

Hint: PMBOK 5 Page 66 Sec 4.1 Develop Project Charter

50 The WBS for the project represents:

A. All the tangible items that must be delivered to the client.


B. All the work that must be completed for the project.
C. The work that must be performed by the project team.
D. All the activities of the project.

Answer : B

Hint: PMBOK 5, Page 567, Definition of Work Breakdown Structure


(WBS)
(1) A planning method, which provides details of the work to
accomplish, but also provide some preliminary description of the
work to be done in later phases is called :

A. Expert Judgment
B. Rolling wave
C. Strategic
D. Operational

Answer:B

Hint:In Rolling wave, high level plan is made and detailed plans are
made for activities just a little before they have to be executed.

(2) What is the term used for the area that entails processes and
activities that define, combine, unify and coordinate the processes
and project activities carried out within the various Project
Management Process Groups?

A. Project Integration Management


B. Strategic Management
C. Operations Management
D. Project Process Management

Answer: A

Hint:See Project Integration Management definition, Page 63,


PMBOK 5

(3) When Integration is used under Project Management, it


includes all of the following activities except for.

A. Unification
B. Consolidation
C. Communication
D. Review
Answer: D

Hint: Refer First para, Page 63, PMBOK 5

(4) One of the initial project documents, issued by senior


management, which outlines the authority of the project manager,
is called Project charter. As a seller, what other document can be
used in this place:

A. Work breakdown structure


B. Project scope
C. Contract
D. Internal memo

Answer:C

Hint: A Contract authorizes work for a seller

(5) During the planning development process, at times it is


necessary to make certain assumptions to enhance the project plan
when the data is not available. In regard to making those
assumptions, which one of the following is most true for project
planning purposes?

A. The assumptions will be considered as true, real, or certain.


B. By making the assumption, it tends to reduce the project risk.
C. Project assumptions are based upon historical data used for the
project.
D. Senior management predefines the budget constraints.

Answer:A

Hint: Project scope statement: Assumptions, Page 124, PMBOK 5

(6) A project planning methodology is any structured approach


used to guide the project team during development of the project
plan. What is an example of this methodology?
A. Standard forms or templates.
B. Upper management involvement
C. Functional work authorizations
D. Stakeholders skills

Answer: A

Hint: Use of predefined templates helps achieve standardization in


processes

(7) Ahmar, a project manager in a construction company has been


authorized to apply the organizational resources to project
activities. The authorization comes in the form of.

A. Project Management Plan


B. Project Charter
C. Justifications
D. Memos

Answer: B

Hint: Project Charter authorized the manager to obtain access to


resources

(8) The process of defining, preparing and organizing all subsidiary


plans along with integrating them into the comprehensive project
plan is known as.

A. Develop Project Charter


B. Develop Project Management Plan
C. Project Process Groups
D. Strategic Management

Answer: B

Hint: Refer Sec 4.2, Page 72, PMBOK 5


(9) The project closing process is essential to overall project
planning. What is considered one of the most important steps in
closing the project?

A. Insuring that plans are produced to implement the project by


phases.
B. Issuing work orders so that financial data can be collected.
C. Transition the lease of equipment to the owner
D. Satisfying the contractual obligations

Answer: D

Hint: All the requirements must be fulfilled before the closing


process

(10) Each project phase is marked by completion of one or more:

A. Tasks.
B. Milestones
C. Deliverables
D. Life cycles

Answer: C

Hint: Some deliverables are produced as outputs from processes


performed to complete project work.

(11) Abdullah, a project engineer is working on an IT project that


requires him to direct the project activities and initiate the
approved changes in the project work. He is executing which
activity of the Project Integration Management Process.

A. Monitor and Control Project Work


B. Perform Integrated Change Control
C. Direct and Manage Project Work
D. Develop Project Management Plan

Answer: C
Hint: Direct and Manage Project Work, Page 79, PMBOK 5

(12) A project manager in a construction company identified the


project activities that were not giving output as per the
performance goals outlined in the project management plan. The
finding is the result of:

A. Monitor and Control Project Work


B. Direct and Manage Project Work
C. Develop Project Charter
D. Devising of Project Management Plan.

Answer: A

Hint: Monitor and Control Project Work, Page 86, PMBOK 5

(13) Murli, a project manager in a Telecom Company got all the


project related information listed and improvised in the
Organizational Process Assets (OPA) along with its communication
across the organization. The process undertaken by him is known
as:

A. Monitoring and Controlling Project Work


B. Closing Project or Phase
C. Perform Integrated Change Control
D. Directing and Managing Project Work

Answer: C

Hint: Refer to Perform Integrated Change Control, Page 94, PMBOK


5

(14) Rahim, a project manager on a Distribution and Logistic


Project is devising a cost estimate for a contingency plan. He will
resort to integration of the following except for:

A. Cost Management Plan


B. Project Schedule
C. Risk Register
D. Stakeholder Register

Answer: D

Hint: Cost estimate doesn't require a stakeholder register

(15) A project management team working on a manufacturing and


materials project complete it on time by undertaking the following
activities under the project management plan except for:

A. Cost Management
B. Time Management
C. Performance of Corporate Social Responsibility
D. Scope Management

Answer: C

Hint: Corporate Social Responsibility isn't related with project


management

(16) For the developing a project charter of an IT project, the


project manager utilized various inputs for it that exclude?

A. Project statement of work


B. Organizational Process Assets
C. Enterprise Environmental Factors
D. Schedule forecasts

Answer: D

Hint: Schedule comes into picture quite later

(17) Rahim, a project manager in a manufacturing company has


devised the project management plan for a project on construction
of company premises. The project management plan that will guide
project execution and control has been developed on the basis of
the following inputs but.
A. Project Charter
B. Work Performance Information
C. Outputs from other processes
D. Enterprise Environmental Factors

Answer: B

Hint: Work Performance Information comes as a result of validate


scope process

(18) A project manager is directing and managing a project. While


doing that, he is utilizing some tools and techniques. The tools and
techniques guiding him do not include.

A. Change Control Tools


B. Expert Judgement
C. Project Management Information system
D. Meetings

Answer: A

Hint: Change Control Tools are used in Perform Integrated Change


Control process

(19) While directing and managing a project, the activities


undertaken by the project manager got the following output that
excludes.

A. Work Performance Data


B. Change Log
C. Change Requests
D. Deliverables

Answer: B

Hint: Change log is an output of Perform Integrated Change


Control process
(20) Monitor and Control Project Work is a process that utilizes
various inputs for detecting and correcting the shortcomings in any
of the areas to ensure achievement of the goals of the project.
Which of the following inputs is used for the process?

A. Agreements
B. Approved Change Requests
C. Validated Changes
D. Accepted Deliverables

1) Milestones established by the customer must be adhered to by:

A. Project manager
B. Functional managers
C. The customer
D. Both a and b

Answer:D

Hint: Both Project Manager and Functional Manager are responsible


for project team and working towards achieving project milestones.

(2) The decision to request an increase the resources for a project


is the responsibility of the:

A. Functional manager
B. Project manager
C. Director of project management
D. Customer

Answer: B

Hint: It is Project Manager's responsibility.

(3) In which of the following project phases is the project schedule


developed?

A. Conceptual
B. Planning
C. Implementation
D. Design

Answer: B

Hint: Refer Process and Knowledge area mapping on Page 61,


PMBOK 5

(4) To crash a schedule you should:

A. Increase the time allowed on those tasks that have float.


B. Try to invest more time on tasks that are behind schedule.
C. Replace the team members that are not performing well.
D. Put extra resources on those tasks that are on the critical path.

Answer:D

Hint: See Crashing definition on Page 181, PMBOK 5

(5) The process of establishing the policies, procedures and


documentation for planning, developing, managing, executing and
controlling the project schedule is known as

A. Plan Schedule Management


B. Control Schedule
C. Develop Schedule
D. Sequence Activities

Answer:A

Hint: See Plan Schedule Management definition on Page 141,


PMBOK 5

(6) Which of the following is NOT one of the primary needs for
good project scheduling?

A. Clear scope of work


B. Decreasing the time required for decision making
C. Eliminating idle time
D. Developing better trouble shooting procedures

Answer: D

Hint: Effectiveness of trouble shooting procedures doesn't play a


role in project scheduling

(7) The inputs used in the Define Activities process includes all but

A. Scope baseline
B. EEF
C. OPA
D. Milestone list

Answer: D

Hint: See Figure 6-1, Page 143, PMBOK 5

(8) The successful project managers spend most of their time:

A. Planning with their personnel


B. Planning with the top management
C. Communication with the project team
D. Studying project results.

Answer: C

Hint: Communication takes nearly 90 percent of project manager's


time.

(9) Resource leveling attempts to :

A. Balance the demand and supply of resources considering the


availability constraints.
B. Ensure that the budget abnormalities are overcome.
C. Reduce the amount of resources so that they can be shared with
on other endeavors.
D. Increase the amount of the project manager's authority so that
budget dollars can be appropriated.

Answer: A

Hint: Read about Resource leveling on Page 179, PMBOK 5

(10) The tools and techniques used in Estimate Activity Durations


exclude which of the following

A. Analogous Estimating
B. Group Decision-Making Techniques
C. Reserve Analysis
D. Leads and Lags

Answer: D

Hint: See Figure 6-1, Page 143, PMBOK 5

(11) The Project Time Management Process consists of following


seven processes:

a. Define Activities

b. Develop Schedule

c. Plan Schedule Activities

d. Sequence Activities

e. Estimate Activity Durations

f. Estimate Activity Resources

g. Control Schedule

The correct sequence is:


A. a-b-c-d-e-f-g
B. c-a-d-f-e-b-g
C. b-a-c-d-e-f-g
D. b-c-a-d-f-e-g

Answer: B

Hint: See Figure 6-1, Page 143, PMBOK 5

(12) The hierarchical representation of resources by category and


type, which is useful for organizing and reporting project schedule
data with resources utilization information is known as

A. WBS
B. Activity Resource requirements
C. Resource breakdown Structure
D. None of the above

Answer: C

Hint: Read about Resource Breakdown Structure on Page 165,


PMBOK 5

(13) The representation of the plan for executing the project's


activities including durations, dependencies, and other planning
information, used to produce project schedules along with other
scheduling artifacts is known as

A. Schedule Compression
B. Schedule Model
C. Schedule Data
D. None of the above

Answer: B

Hint: See Schedule Model definition, Page 561, PMBOK 5


(14) A subsidiary plan that identifies a scheduling method and
scheduling tool, and sets the format and establishes criteria for
developing and controlling the project schedule is known as

A. Schedule Management Plan


B. Develop Project Management Plan
C. Project Schedule Presentation
D. Both A & C

Answer: A

Hint: See Schedule Management Plan definition, Page 561, PMBOK


5

(15) Which of the following is the output of the Plan Schedule


Management process?

A. Activity List
B. Schedule Management Plan
C. Activity List
D. Project Schedule Network Diagram

Answer: B

Hint: See Figure 6-1, Page 143, PMBOK 5

(16) The following inputs are used in both Sequence Activities and
Estimate Activity Resources process, excluding

A. Schedule Management Plan


B. Activity List
C. Risk Register
D. Activity Attributes

Answer: C

Hint: See Figure 6-1, Page 143, PMBOK 5


(17) What is the term for an iterative planning technique in which
the work to be accomplished in the near term is planned in detail,
while the work in the future is planned at a higher level

A. Decomposition
B. Rolling Wave Planning
C. Alternative Analysis
D. Reserve Analysis

Answer: B

Hint: Refer to Rolling Wave planning on Page 152, PMBOK 5

(18) Abdullah, a project manager is identifying and documenting


relationships among the project activities of an IT project. He is
undertaking which of the following process?

A. Sequence Activities
B. Define Activities
C. Develop Schedule
D. Estimate Activity Durations

Answer: A

Hint: See Sequence Activities on Page 141, PMBOK 5

(19) The logical relationships under Precedence Diagramming


Method (PDM) include:

A. Finish-to-start
B. Start-to-finish
C. Predecessor-Follower
D. Only A and B
E. A, B, and C

Answer: D

Hint: See Precedence Diagramming Method on Page 156, PMBOK 5


(20) The method of estimating project duration or cost by
aggregating the estimates of the lower-level components of the
WBS is known as:

A. Alternative Analysis
B. Bottom-up Estimating
C. Parametric Estimating
D. Three-point estimating

Answer: B

(1) Which type of project cost estimate is the most accurate?

A. Preliminary
B. Definitive
C. Order of magnitude
D. Conceptual

Answer:B

Hint: Definitive estimates are in range -5% to 10% in accuracy.


Page 201, PMBOK 5

(2) Which of the following type of contracts is most preferable to


the contractor doing the project work?

A. Cost plus fixed fee


B. Fixed price
C. Fixed price plus incentive free
D. B and C

Answer: A

Hint: Cost plus fixed fee covers the actual cost

(3) ) To assist in budget control, it is suggested that an estimate


be created at the _____ ____ ______ level of the WBS
A. Highest
B. Lowest
C. Major work effort
D. Third

Answer: B

Hint: Work package is the lowest unit of work to estimate cost and
duration.

(4) Cost Variance (CV) is which of the following equations?

A. CV = EV - PV
B. CV = EV - AC
C. CV = EV / AC
D. A and c

Answer:B

Hint: Cost variance, Page 218, PMBOK 5

(5) Determining budget can be best described by which of the


following?

A. The process of developing the future trends along with the


assessment of probabilities, uncertainties, and inflation that
could occur during the project
B. The process of accumulating costs of individual activities to
establish a cost baseline.
C. The process of establishing budgets, standards, and a
monitoring system by which the investment cost of the project
can be measured and managed
D. The process of gathering, accumulating, analyzing, reporting,
and managing the costs on an on-going basis

Answer:B

Hint: Page 193, PMBOK 5


(6) Which of the following is a direct project cost?

A. Lighting and heating for the corporate office


B. Workers Compensation insurance
C. Piping for an irrigation project
D. A and B

Answer: C

Hint: cost of resources used in a project. See Page 202, PMBOK 5

(7) Control Costs can be best described by which of the following?

A. The process of developing the future trends along with the


assessment of probabilities, uncertainties, and inflation that
could occur during the project
B. The process of assembling and predicting costs of a project over
its life cycle
C. The process of assembling and predicting costs of a project over
its life cycle
D. The process of monitoring the status of the project to update
project costs and managing changes to the cost baseline.

Answer: D

Hint: Control Costs, Page 193, PMBOK 5

(8) The PV = $250, the AC = $350, and the EV = $200. Calculate


the Cost Variance.

A. -$150
B. $150
C. -$50
D. $50

Answer: A

Hint: CV=EV-AC
(9) One of the types of cost estimation is Rough Order of
Magnitude. This estimate:

A. is performed when detailed information is available


B. is performed after the scope is clearly defined
C. is a near perfect estimate
D. Usually made before the project is designed, and must therefore
rely on the cost data of similar projects built in the past.

Answer: D

Hint: Page 201, PMBOK 5

(10) The sum of all budgets established for the work to be


performed is known as:

A. Planned Value
B. Aggregated Planned Value
C. Budget at Completion
D. Estimate at Completion

Answer: C

Hint: Refer Table 7-1, Page 224, PMBOK 5

(11) The processes involving planning, estimating, budgeting,


financing, funding, managing, and controlling costs so that the
project can be completed within the approved budget fall under

A. Project Cost Management


B. Project Management Process
C. Project Scope Management
D. Project Integration Management

Answer: A

Hint: Read First para, Page 193, PMBOK 5


(12) The process that establishes the policies, procedures and
documentation for planning, managing, expending, and controlling
project costs is known as

A. Control Costs
B. Estimate Costs
C. Plan Cost Management
D. Determine Budget

Answer: C

Hint: Page 193, PMBOK 5

(13) The process of monitoring the status of the project to update


the project costs and managing changes to the cost baseline is
called

A. Determine Budget
B. Control Costs
C. Estimate Costs
D. Plan Cost Management

Answer: B

Hint: Page 193, PMBOK 5

(14) The Project Cost Management Process comprises the


following activities:

a. Determine Budget

b. Plan Cost Management

c. Estimate Costs

d. Control Costs

What is the correct sequence?


A. a-b-c-d
B. c-a-b-d
C. b-c-a-d
D. a-c-b-d

Answer: C

Hint: See Figure 7-1, Page 194, PMBOK 5

(15) The process of developing an approximation of the monetary


resources needed to complete project activities is known as

A. Estimate Costs
B. Determine Budget
C. Both A & B
D. None of the above

Answer: A

Hint: Page 193, PMBOK 5

(16) Which one of the following is not an input used in the process
of Estimate Costs?

A. Scope Baseline
B. Human Resource Management plan
C. Cost Management Plan
D. Project Funding Requirements

Answer: D

Hint: See Figure 7-1, Page 194, PMBOK 5

(17) The tools and techniques used in the process of Determine


Budget includes all but

A. Cost Aggregation
B. Cost of Quality
C. Expert Judgement
D. Historical Relationships

Answer: B

Hint: See Figure 7-1, Page 194, PMBOK 5

(18) Which of the following output of Determine Budget process is


not used as an input in the Control Costs Process?

A. Project Funding Requirements


B. Cost Baseline
C. Both A & B
D. None of the above

Answer: B

Hint: See Figure 7-1, Page 194, PMBOK 5

(19) Which of the following is not an output of the Control Costs


process?

A. Cost Forecasts
B. Change Requests
C. Activity Cost Estimates
D. Work Performance Information

Answer: C

Hint:Hint: See Figure 7-1, Page 194, PMBOK 5

(20) The tools and techniques used in Control costs includes all
but

A. To-Complete Performance Index (TCPI)


B. Earned Value Management (EVM)
C. Reserve Analysis
D. Cost Aggregation
Answer: D

Hint: See Figure 7-1, Page 194, PMB

A project manager's main responsibility in a project meant to


create a product is: :

A. Ensuring it is high grade


B. To pack exciting features in the product
C. Ensuring it is high quality
D. Creating a product within allocated cost and schedule

Answer:C

Hint: A project manager is responsible to ensure high quality in a


way that the final product meets the specifications and quality
benchmarks.

(2) The process control charts are used:

A. to determine whether a process is or not


B. to detect the problem
C. to reject the problem
D. to determine the acceptability of the work product

Answer: A

Hint: PMBOK 5 page 238 Control charts

(3) The process of identifying quality requirements and/or


standards for the project and its deliverables and documenting how
the project will demonstrate compliance with quality requirements
and/or standards is called::

A. Plan Quality Management


B. Control Quality
C. Perform Quality Assurance
D. Both A & B

Answer: A
Hint: PMBOK 5, Page 231 Sec 8.1 Plan Quality Management

(4) Which of the following doesn't qualify to be a synonym for


inspection?

A. Audit
B. Peer Review
C. Process Analysis
D. Walkthrough

Answer:C

Hint: Process Analysis is done to identify the root causes of a


problem and suggest preventive actions.

(5) The primary components of the quality management function


are :

A. Plan Quality Management


B. Quality Assurance
C. quantitative measurement
D. quantitative assessment of the project
E. a and b

Answer:E

Hint: PMBOK 5 page 230 Figure 8.1 Quality Management Overview

(6) The term for the process and activities of the performing
organization that determine quality policies, objectives and
responsibilities so that the project will satisfy the needs for which it
was undertaken is :

A. Project Communications Management


B. Project Scope Management
C. Project Quality Management
D. Project Procurement Management

Answer: C

Hint: PMBOK 5, Page 227


(7) Which of the following has the greatest effect on product's
reliability and maintenance characteristic?

A. quality
B. product design
C. pricing
D. a and b

Answer: D

Hint: Pricing doesn't impact reliability

(8) On a project the project manager should strive for a "Quality


Level" that :

A. is the highest level possible


B. is as close to the project objectives as possible
C. represents the least cost to the project.
D. Exceeds the specified requirements of the project.

Answer: B

Hint: PMBOK 5 page 233, Sec 8.1.1 Plan Quality Management:


Inputs (Project scope statement)

(9) Quality control in the final analysis is :

A. using the process of monitoring project results to decide if the outputs


meet the requirements
B. a production system
C. an inspection system
D. fitness for purpose

Answer: A

Hint: PMBOK 5 page 248 Sec 8.3 Control Quality

(10) Cost of Quality includes:

A. all costs incurred to assure the production and delivery of acceptable


products and services.
B. Only costs classified as prevention, detection and corrective action.
C. Only the cost of scrap, rework due to defects, customer returns and
warranty costs.
D. The expense of upper management

Answer: A

Hint: PMBOK 5 page 235 Sec 8.1.2.2 Cost of Quality

(11) The common tools and techniques used in both Plan Quality
Management and Control Quality is:

A. Cost-Benefit Analysis
B. Benchmarking
C. Seven Basic Quality Tools
D. Inspection

Answer: C

Hint: PMBOK 5, Page 230, Fig 8-1 Project Quality Management


Overview

(12) Which of the following outputs of the Plan Quality


Management is not used as an input in the Perform Quality
Assurance process?

A. Quality Management Plan


B. Process Improvement Plan
C. Quality Metrics
D. Quality Checklists

Answer: D

Hint: PMBOK 5, Page 230, Fig 8-1 Project Quality Management


Overview

(13) The tools and techniques used in the process of Perform


Quality Assurance includes all except:

A. Quality Management and Control Tools


B. Quality Audits
C. Inspection
D. Process Analysis
Answer: C

Hint: PMBOK 5, Page 230, Fig-8-1, 8.2

(14) All of the following are the outputs of the Control Quality
Process excluding:

A. Change Requests
B. Quality Metrics
C. Quality Control Measurements
D. Work Performance Information

Answer: B

Hint: PMBOK 5, Page 230, Fig-8-1

(15) Which of the following are used to identify the vital few
sources that are responsible for causing most of a problem's
effects?

A. Pareto Diagrams
B. Check sheets
C. Scatter Diagrams
D. Control Charts

Answer: A

Hint: PMBOK 5, Page 237 Pareto Diagrams

(16) Also known as correlation charts, the tool used to explain a


change in the dependent variable, Y, in a relationship to a change
observed in a corresponding independent variable, X is called

A. Scatter Diagrams
B. Histograms
C. Cause-and-effect diagrams
D. Pareto Diagrams

Answer: A

Hint: PMBOK 5, Page 238 Scatter diagrams


(17) The statistical method for identifying the factors that may
influence specific variables of a product or process under
development or in production is called

A. Statistical Sampling
B. Design of Experiments (DOE)
C. Benchmarking
D. Cost-Benefit Analysis

Answer: B

Hint: PMBOK 5, Page 239, Sec 8.1.2.5 Design of Experiments

(18) The technique used as an additional quality planning tool and


allow ideas to be brainstormed in small groups and then reviewed
by a larger group is known as

A. Brainstorming
B. Nominal Group Technique
C. Force-Field Analysis
D. Quality Management and Control Tools

Answer: B

Hint: PMBOK 5, Page 240, 8.1.2.7 Brainstorming

(19) Which of the following specifically describes a project or


product attribute and how the control quality process will measure
it?

A. Quality Checklists
B. Process Improvement Plan
C. Quality Management Plan
D. Quality Metrics

Answer: D

Hint: PMBOK 5, Page 242, 8.1.3.4 Quality Checklists

(20) The name for the tool used in Perform Quality Assurance to
represent decomposition hierarchies such as the WBS (work
breakdown structure), RBS (risk breakdown structure), and OBS
(organizational breakdown structure) is:

A. Tree Diagrams
B. Process decision program charts (PDPC)
C. Affinity Diagrams
D. Matrix Diagrams

1) From HR perspective, the project manager's responsibility in the planning role


includes:

A. Hiring the team


B. Preparing org charts
C. Developing Staffing management plan
D. Feedback sessions
E. Both b and c

Answer:E

Hint: PMBOK 5, Page 264 Sec 9.1.3 Plan Human Resource Management: Outputs

(2) Expert power is the power that comes from the amount of knowledge a person
has obtained in a specific area. This type of power is:

A. Critical to a project manager because the PM has to have as much or more


knowledge than any of the team members to make sure the project is
completed successfully
B. Used by the PM to influence upper management and the critical stakeholders
C. Important if the project manager wants to maintain the respect of the project
team
D. Used sparingly if at all by the PM because the PM is not required to be an
expert apart from managing the project

Answer: D

Hint: PMBOK 5, Page 16, Sec 1.7 Role of the Project Manager
(3) To successfully motivate a team in today's high tech - high demand environment,
which motivational theories should the PM use to maintain a happy, productive
team?

A. Expectancy and Theory X


B. Theory Y and Maslow's Hierarchy
C. Herzberg's Hygiene Factors and Expectancy
D. Theory Y, Expectancy and Herzberg's Hygiene Factors

Answer: D

Hint: These theories are finding widespread acceptance in today's business


environment.

(4) To successfully manage a project, the project manager must play both a manager
and leadership role. In a manager's role, the project manager will do all but which of
the following:

A. Define Roles and Responsibilities


B. Extend favors to some important team members
C. Provide feedback to team members
D. Resolving interpersonal conflicts
E. Both b and d

Answer:B

Hint: PMBOK 5, Page 257, Fig 9-1

(5) To be successful in a functional organization, the PM must rely on:

A. Referent power
B. Formal authority
C. Informal power structure
D. Broad span of control

Answer:A
Hint: Referent power is based on the authority extended by a more powerful person.
A project manager can exercise the power given by project sponsor to take decisions
in the project interest.

(6) Which form of power is the LEAST effective from the project manager's
viewpoint in terms of influencing functional managers?

A. Formal power
B. Expert power
C. Penalty power
D. Referent power

Answer: C

Hint: Penalty is the least effective forms of influencing and should not be used at all,
if possible.

(7) The Project manager should be able to fulfill the role of:

A. an integrator
B. a functional manager
C. a line manager
D. a sponsor

Answer: A

Hint: A project manager is responsible for collective project success. Refer PMBOK
5, Page 16, Sec 1.7 Role of the Project Manager

(8) The most successful project manager usually:

A. Work their way up from assistants in the project office to full-fledged project
managers, supplementing that experience with formal education.
B. Comes right from Harvard's MBA program into managing very large projects.
C. Are the technical experts.
D. Have considerable experience as a functional manager before moving into the
project management arena.
Answer: A

Hint: A project manager must have experience in working on projects in various


roles including the role of a project manager.

(9) Which of the following is an important action that must be taken by top
management when implementing project management in an organization?

A. Completely selling the project management concept to the entire organization.


B. Choice of the type of project manager.
C. Choice of the type of project organization to be utilized.
D. All of the above.

Answer: D

Hint: It is important for project success that all stakeholders agree on the importance
of project management concepts and theories.

(10) The project manager has the most authority in the __________________ type of
organization.

A. Project expediter
B. Matrix
C. Projectized organization
D. Functional

Answer: C

Hint: Refer PMBOK 5, Page 22 Table 2-1 Influence of Organizational Structures on


Projects; Page 556, Projectized organizatio

(11) The process that organize, manage, and lead the project team for the completion
of a project is called

A. Project Integration Management


B. Project Scope Management
C. Project Human Resource Management
D. Project Communications Management
Answer:C

Hint: PMBOK 5, Page 255, 1st Paragraph

(12) For the following Project Human Resource Management Processes

1. Plan Human Resource Management


2. Develop Project Team
3. Acquire Project Team
4. Manage Project Team

The correct sequence is:

A. 1-2-3-4
B. 3-2-1-4
C. 2-1-3-4
D. 1-3-2-4

Answer:D

Hint: PMBOK 5, Page 255, Fig-9-1

(13) Which of the following techniques is not used in the process of Plan Human
Resource Management?

A. Networking
B. Pre-assignment
C. Organizational theory
D. Meetings

Answer:B

Hint: PMBOK 5, Page 257, Fig 9-1, Sec 9.1

(14) The various inputs used while executing the process of Develop Project Team
includes all but

A. Personal Assessment Tools


B. Recognition and awards
C. Project Performance Appraisals
D. Training

Answer:C

Hint: PMBOK 5, Page 257, Sec 9.3

(15) The process of Manage project team uses which of the following inputs in its
execution?

A. Issue Log
B. Resource Calendars
C. Activity Resource Requirements
D. Human Resource Management Plan

Answer:A

Hint: PMBOK 5, Page 257, Sec 9.4

(16) The process of identifying and documenting project roles, responsibilities,


required skills, reporting relationships, and creating a staffing management plan is
known as

A. Develop Project Team


B. Manage Project Team
C. Plan Human Resource Management
D. Acquire Project Team

Answer:C

Hint: PMBOK 5, Page 257, Sec 9.1

(17) The information used for the development of the human resource management
plan includes all except

A. The project life cycle


B. A change management plan
C. A configuration management plan
D. Organizational Standard Processes

Answer:D

Hint: PMBOK 5, Page 259, Sec 9.1.1

(18) The concept that provides information regarding the way in which people,
teams, and organizational units behave is known as

A. Networking
B. Organizational Theory
C. Expert Judgment
D. None of the above

Answer:B

Hint: PMBOK 5, Page 263, Sec 9.1.2.3

(19) The phase of team building where the team begins to address the project work,
technical decisions, and the project management approach is known as

A. Performing
B. Storming
C. Forming
D. Norming

Answer:B

Hint: PMBOK 5, Page 276, Sec 9.3.2.3

(20) The Conflict Management approach that is used for emphasizing upon the areas
of agreement rather than areas of differences conceding one's position to the needs of
others to maintain harmony and relationships is called

A. Collaborate/Problem Solve
B. Compromise/Reconcile
C. Smooth/ Accommodate
D. Withdraw/Avoid
Answer:C

Hint: PMBOK 5, Page 283

(1) Which of the following can cause a conflict?

A. Insufficient action on the part of the project manager


B. Competition for facilities, equipment, material, manpower and other
resources
C. Personality conflicts between managers and/ or other personnel
D. All of the above

Answer:D

Hint: PMBOK 5, Page 282, Sec 9.4.2.3 Conflict Management

(2) Most of the project manager's external communication


comprises:

A. Written documents
B. Oral communication
C. Tactile contact
D. Informal contact

Answer: A

Hint: Written communication is the best form to maintain


documented evidence of what was communicated.

(3) The critical element in a project's communication system is


the:

A. Progress report
B. Project directive
C. Project manager
D. Customer

Answer: C
Hint: Project manager is responsible for executing and facilitating
all the project-related communication.

(4) Communication management:

A. Is Is important only in projects involving telephone, television, radio,


or newspaper production facilities and operations
B. Is not a big problem for people with normal speech, sight and hearing
C. Involves the sender, the message, the medium and the receiver
D. Preparing an agenda

Answer:C

Hint: PMBOK 5, Page 294, Figure 10-4. Basic Communication Model

(5) Truly effective communication:

A. Depends on using multiple channels


B. Depends on selecting the right method for each message and avoiding
duplication, since everyone is overloaded with information
C. Cannot depend solely on non-verbal signals which might be
misunderstood
D. Can only be achieved by communication professional
E. a, b and c

Answer:E

Hint: Project communication doesn't need a communication


professional or expert. It is every member's responsibility to
communicate with the project manager who facilitates all the
communication.

(6) Methods of transmitting information include:

A. Oral and written


B. Non-verbal/ visual
C. Telepathy
D. only A and B
E. A, B and C

Answer: D
Hint: Telepathy is not an advisable method of transmitting
information in Project Management

(7) A project management information system consists of:

A. A project management software package operating on appropriate


computer facilities
B. Software, documents, and procedures
C. Automated tools and manual methods for gathering, recording,
filtering, and dissemination of pertinent information for members of a
project team
D. All of the above

Answer: D

Hint: PMBOK 5, Page 92, Sec 4.4.2.3 Project Management


Information System

(8) The process of communication contains four major parts.


Which part is the vehicle or method used to convey the message?

A. Communicator
B. Message
C. Medium
D. Recipient

Answer: C

Hint: PMBOK 5, Page 293 Sec 10.1.2.3 Communication Models

(9) The contemporary view of conflict is that:

A. Conflict is bad
B. Conflict is caused by trouble makers
C. Conflict should be avoided
D. Conflict is often beneficial

Answer: D

Hint: Conflicts can help arrive at better solutions. : PMBOK 5, Page


518 X3.10 Conflict Management
(10) Approximately what percentage of the project manager's time
is spent in some form of communication, such as: conferences,
meetings, writing memos, reading and preparing reports, and
talking with project team members, upper management, and all
other stalk holders?

A. 10-20%
B. 50-70%
C. 75-90%
D. 21-45%

Answer: C

Hint: Nearly 90 percent of a manager's time is spent in


communication

(11) What is the term used for processes that are required to
ensure timely and appropriate planning, collection, creation,
distribution, storage, retrieval, management , control monitoring,
and the ultimate disposition of project information?

A. Project Communications Management


B. Project Scope Management
C. Project Procurement Management
D. Project Integration Management

Answer: A

Hint: PMBOK 5, Page 287

(12) Which of the following processes of Project Communications


Management involves developing an appropriate approach and plan
for project communications based on stakeholder's information
needs and requirements, and available organizational assets?

A. Manage Communications Management


B. Plan Communications Management
C. Control Communications Management
D. None of the above

Answer: B
Hint: PMBOK 5, Page 287, Section 10.1

(13) The inputs used in the process of Plan Communications


Management includes all except

A. Project Management Plan


B. Stakeholder Register
C. OPA
D. Communications Management Plan

Answer: D

Hint: PMBOK 5, Page 288, Section 10.1

(14) The tools and techniques used in the process of Manage


Communications excludes

A. Information Management System


B. Communication Technology
C. Communication Models
D. Communication Requirements Analysis

Answer: D

Hint: PMBOK 5, Page 288, Section 10.2

(15) The output of the Control Communications Process includes


all except

A. Change Requests
B. Work Performance Information
C. Project Communications
D. OPA Updates

Answer: C

Hint: PMBOK 5, Page 288, Section 10.3

(16) The results of the Plan Communications Management Process


should be reviewed regularly throughout the project and revised as
needed to ensure continued applicability. The statement is
A. True
B. False
C. Incorrect as the plan cannot change without approval
D. Not completely true as it is not possible to review the plan frequently

Answer: A

Hint: PMBOK 5, Page 290

(17) The choice of communication technology is not affected by

A. Project Environment
B. Skills of the project team
C. Sensitivity and confidentiality of the information
D. Ease of use

Answer: B

Hint: PMBOK 5, Page 292, Section 10.1.2.2

(18) The type of Communication Methods tool that uses very large
volume of information ,or for very large audience, and requires the
recipients to access the communication content at their own
discretion is called

A. Interactive Communication
B. Pull Communication
C. Push Communication
D. None of the above

Answer: B

Hint: PMBOK 5, Page 295.

(19) The process of creating, collecting, distributing, storing,


retrieving, and the ultimate disposition of project information in
accordance to the communications management plan is called

A. Manage Communications
B. Plan Communications Management
C. Control Communications
D. Both A & C
Answer: A

Hint: PMBOK 5, Page 297, Section 10.2

(20) An arrangement that provides a set of standard tools for the


project manager to capture, store and distribute information to
stakeholders about the project's costs, schedule progress, and
performance is known as

A. Performance Reporting
B. Information Management System
C. Expert Judgment
D. None of the above

Answer: A

(1) The process under Process Risk Management that prioritizes


risks for further analysis or action by assessing and combining their
probability of occurrence and impact is called

A. Perform Qualitative Risks Analysis


B. Perform Quantitative Risk Analysis
C. Plan Risk Management
D. Plan Risk Responses

Answer:A

Hint: PMBOK 5, Page 309, Sec 11.3

(2) The inputs used in the process of Perform Qualitative Risk


Analysis includes all except

A. Scope Baseline
B. Risk Register
C. Quality Management Plan
D. Risk Management Plan

Answer: C

Hint: PMBOK 5, Page 312, Sec 11.3


(3) A risk is defined as ____________ event or condition that, if it
occurs, has a positive or negative effect on one or more
project______________.

A. indefinite, probabilities
B. uncertain, objectives
C. sure, goals
D. definite, uncertainties

Answer: B

Hint: PMBOK 5, Page 559 Definition of Risk

(4) When is the risk and uncertainty in a project's life cycle at the
highest?

A. start
B. design
C. closing
D. implementation

Answer:A

Hint: PMBOK 5, Page 40, Figure 2-9

(5) A new project that was initiated, involved new technology and
had never been done before. What type of contract would the
owner want to issue to reduce or eliminate as much risk as
possible?

A. fixed price
B. Cost plus fix fee
C. Cost plus incentive fee
D. Time and Material

Answer:A

Hint: A fixed bid project has lesser risk for the firm that gives high-
risk work on contract

(6) The process of Control Risks does not have one of the following
as an output. Which one is it?
A. Work Performance Information
B. Change Requests
C. OPA updates
D. Risk Register

Answer: D

Hint: PMBOK 5, Section 11.6 Control Risks

(7) Which of the following fit the category of external risks?

A. Project delays, budget under-runs, movement of city utilities


B. Regulatory, currency changes, taxation
C. Natural disasters, regulatory, design
D. Inflation, design, social impact
E. Political unrest, budget overruns, size and complexity of the project

Answer: B

Hint: PMBOK 5, Page 317, Risk categories

(8) Decision trees are best used for :

A. Determining the interaction of the amount at stake and the expected


value
B. Association of the probabilities with the risk events
C. Calculating the average outcome when the future includes scenarios
that may or may not happen
D. A flow chart which determines the standard deviation of the risk event

Answer: C

Hint: PMBOK 5, Page 339 Decision tree analysis

(9) The total amount of risk that is calculated for a project is found
by

A. Multiplying the sum of each the risk times the amount at stake
B. Calculating the cumulative sum of the probability for each risk and
multiplying this value times the consequence of occurrence of the risk
events
C. Cannot be calculated since all risks are not known
D. The amount of project reserves available

Answer: B

Hint: PMBOK 5, Page 339 Decision tree analysis

(10) The strategy used under Strategies for Positive Risks or


Opportunities that is used to increase the probability and/or the
positive impacts of an opportunity is called.

A. Share
B. Accept
C. Enhance
D. Exploit

Answer: C

Hint: PMBOK 5, Page 346

(11) For the following processes of Project Risk Management:

1. Plan Risk Management

2. Perform Qualitative Risk Analysis

3. Identify Risks

4. Perform Quantitative Risk Analysis

5. Plan Risk Responses

6. Control Risks

The correct sequence is:

A. A.1-2-3-4-5-6
B. B.1-3-2-4-5-6
C. C.1-3-4-2-5-6
D. D.3-1-2-4-5-6

Answer:B

Hint: PMBOK 5, Page 309


(12) The process of implementing risk responses plans, tracking
identified risks, monitoring residual risks, identifying new risks, and
evaluating risk process effectiveness throughout the project is
called?

A. Plan Risk Responses


B. Control Risks
C. Identify Risks
D. Perform Qualitative Risk Analysis

Answer:B

Hint: PMBOK 5, Page 309

(13) The measure along the level of uncertainty or the level of


impact at which a stakeholder may have a specific interest. Below
that, the organization will accept the risk, and above this measure
the organization will not accept the risk. It is known as

A. Risk Threshold
B. Risk Appetite
C. Risk Tolerance
D. None of the above

Answer:A

Hint: PMBOK 5, Page 311

(14)

Which of the following tools and techniques is not used in the process of
Identify Risks

A. SWOT Analysis
B. Diagramming Techniques
C. Checklist Analysis
D. Risk Categorization

Answer:D

Hint: PMBOK 5, Page 312, Sec 11.2


(15) The tools and techniques used in the process of Plan Risk
Responses includes all except

A. Contingent Response Strategies


B. Risk and Impact Matrix
C. Strategies for positive risks or opportunities
D. Expert Judgment

Answer:B

Hint: PMBOK 5, Page 312, Sec 11.5

(16) A stakeholder risk profile analysis may be performed to grade


and qualify the project stakeholder risk appetite and tolerance. The
activity is an example of which technique used in the process of
Plan Risk Management

A. Meetings
B. Expert Judgment
C. Analytical Techniques
D. Both B& C

Answer:C

Hint: PMBOK 5, Page 315, Sec 11.1.2.1

(17) The Risk Management Plan, which is the outcome of the


process Plan Risk Management includes all except

A. Methodology
B. Roles and Responsibilities
C. Budgeting
D. Tracking

Answer:D

Hint: PMBOK 5, Page 316, 11.1.3.1

(18) The technique used under the Quantitative Risk Analysis


which is a statistical concept that calculates the average outcome
when the future includes scenarios that may or may not happen is
known as
A. Sensitivity Analysis
B. Expected Monetary value Analysis
C. Modeling and Simulation
D. Expert Judgment

Answer:B

Hint: PMBOK 5, Page 339

(19)

The technique used under the Quantitative Risk Analysis that translates the
specified detailed uncertainties of the project into their potential impact on
project activities is called

A. Expected Monetary value Analysis


B. Modeling and Simulation
C. Expert Judgment
D. Sensitivity Analysis

Answer:B

Hint: PMBOK 5, Page 340

(20) A risk response strategy used under tool of Strategies for


negative Risks or Threats through which the project team decides
to acknowledge the risk and not take any action unless the risk
occurs is called

A. Mitigate
B. Transfer
C. Accept
D. Avoid

(1) The fixed price contract is advantageous to the buyer because


it:

A. requires extremely well defined specifications


B. requires formal procedures for scope changes
C. seller assumes financial and technical risk
D. has a known cost
Answer:C

Hint: Read about Fixed-price contracts under Sec 12.1.1.9, Page


362 PMBOK 5

(2) The contract administration function includes:

A. funding management
B. managing relationships and interfaces
C. performance control
D. all of the above

Answer: D

Hint: PMBOK 5, Page 379, Sec 12.3

(3) The major type(s) of standard warranty used in the business


environment is(are):

A. express
B. implied
C. negotiated
D. A and B
E. A, B, and C

Answer: D

Hint: Warranty types include express and implied. Negotiated is


not a warranty type.

(4) A Unit Price (UP) contract provides:

A. a reimbursement of allowable costs plus a fixed fee which is paid


proportionately as the contract progresses
B. a reimbursement of allowable cost of services performed plus an
agreed upon percentage of the estimated cost as profit
C. the supplier with a fixed price for delivered performance plus a
predetermined fee for superior performance
D. a fixed price where the supplier agrees to furnish goods and services at
unit rates and the final price is dependent on the quantities needed to
carry out the work.
Answer:D

Hint: Time and Materials Contract, Page 364, PMBOK 5

(5) The process of managing procurement relationships,


monitoring contract performance, and making changes as
appropriate is called

A. Plan Procurement Management


B. Control Procurements
C. Close Procurements
D. Conduct Procurements

Answer:B

Hint: PMBOK 5, Page 355, Section 12.3

(6) From a contract management perspective, the project


manager must consider the:

A. acquisition process
B. contract administration
C. ecological environment
D. offer, acceptance, and consideration
E. a and b

Answer: E

Hint: Options C and D are not related to contracts

(7) The tools and techniques used in the process of Plan


Procurement Management includes all but

A. Make-or-buy analysis
B. Market Research
C. Bidder Conferences
D. Expert Judgment

Answer: C

Hint: PMBOK 5, Page 356, Sec. 12.1


(8) Which contract type places the most risk on the seller?

A. Cost plus percentage fee


B. Cost plus incentive fee
C. Cost plus fixed fee
D. Fixed price plus incentive fee
E. Firm fixed price

Answer: E

Hint: Read about types of contracts under Sec 12.1.1.9, Page 362
PMBOK 5

(9) Decisions made in developing the procurement management


plan can also influence the project schedule and are integrated with
Develop Schedule, Estimate Activity Resources, and make-or-buy
analysis. The statement is

A. True
B. False
C. Not sure
D. Incomplete Information

Answer: A

Hint: PMBOK 5, Page 360, 2nd Para.

(10) What is the last item a project manager must do to finalize


the project closing?

A. Reassign the team


B. Contract completion
C. Archive the project records
D. Complete lessons learned

Answer: B

Hint: Contract completion is most important

(11) The process that includes the contract management and


change control processes required to develop and administer
contracts or purchase orders issued by authorized project team
members is known as:

A. Project Procurement Management


B. Project Time management
C. Project Cost Management
D. Project Risk Management

Answer: A

Hint: PMBOK 5, Page 355

(12) For the processes in the Project Procurement Management,

1. Plan Procurement Management

2. Control Procurements

3. Conduct Procurements

4. Close Procurements

The correct sequence is:

A. A. 1-2-3-4
B. B. 1-3-2-4
C. C. 1-4-3-2
D. D. 3-1-2-4

Answer: B

Hint: PMBOK 5, Page 355, Fig. 12-1

(13) The inputs used in the process of Conduct Procurements


includes all except

A. Seller Proposals
B. Procurement statement of work
C. Source Selection Criteria
D. Agreements

Answer: D
Hint: Agreements are the output on conduct procurements process

(14) The contractual agreement under Fixed Price Contracts


,which influences the Plan Procurement project and is the favored
by buyers because the price for goods is set at the outset and
doesnt change until scope of work changes, is known as

A. Firm Fixed Price Contracts (FFP)


B. Fixed Price Incentive Fee Contracts (FPIF)
C. Fixed Price with Economic Price Adjustment Contracts ( FP- EPA)
D. None of the above

Answer: A

Hint: PMBOK 5, Page 363

(15) 15. The contractual agreement under Fixed Price Contracts


,which influences the Plan Procurement project and gives the buyer
and seller some flexibility in that it allows for deviation from
performance, with financial incentives tied to achieving agreed
upon metrics is called

A. Fixed Price Incentive Fee Contracts (FPIF)


B. Fixed Price with Economic Price Adjustment Contracts (FP- EPA)
C. Firm Fixed Price Contracts (FFP)
D. Fixed Assets Price (FAP)

Answer: A

Hint: PMBOK 5, Page 363

(16) The contractual agreement under Cost-reimbursable


Contracts, which influences the Plan Procurement project and
where if the final costs are less or greater than the original
estimated costs, then both the buyer and seller share costs from
the departures based upon a pre-negotiated cost sharing formula
,is called

A. Cost Plus Fixed Fee Contracts ( CPFF)


B. Cost Plus Award Fee Contracts (CPAF)
C. Cost Plus Incentive Fee Contracts ( CPIF)
D. Cost Plus Percentage Completion (CPPC)

Answer: C

Hint: PMBOK 5, Page 364

(17) The contractual agreement under Cost-reimbursable


Contracts, which influences the Plan Procurement project and
where the seller is reimbursed for all the legitimate costs , but the
majority of the fee is earned only based in the satisfaction of
certain broad subjective performance criteria defined and
incorporated into the contract is called

A. Cost Plus Fixed Fee Contracts ( CPFF)


B. Cost Plus Award Fee Contracts (CPAF)
C. Cost Plus Incentive Fee Contracts ( CPIF)
D. Cost Plus Firm Fixed Fee Contracts ( CPFFF)

Answer: B

Hint: PMBOK 5, Page 364

(18) The component of the project management plan that


describes how a project team will acquire goods and services from
outside the performing organization is called

A. Procurement Management Plan


B. Procurement Statement of Work
C. Procurement Documents
D. None of the above

Answer: A

Hint: PMBOK 5, Page 366, Sec. 12.1.3.1

(19) A general management technique used to determine whether


particular work can best be accomplished by the project team or
should be purchased from outside sources is called

A. Market Research
B. Make-or-buy Analysis
C. Expert Judgment
D. None of the above

Answer: B

Hint: PMBOK 5, Page 365, Sec. 12.1.2.1

(20) The type of hybrid contracts which influences the Plan


Procurement project is called

A. Time and Material Contracts (T&M)


B. Cost-reimbursable Contracts
C. Fixed Price Contracts
D. Both B & C

1) Which of the following knowledge area deals with identifying


people, groups or organizations that could impact or be impacted
by a project that required building a 3-mile long bridge connecting
two island cities of a country?

A. Project Communications Management


B. Project Stakeholder Management
C. Project Integration Management
D. Communication Plan

Answer:B

Hint: First para, Page 391, PMBOK 5

(2) Which of the following process would apply if you had to


communicate with the project team members to understand their
expectations from the outcome of their project?

A. Manage Communications
B. Plan Stakeholder Management
C. Manage Stakeholder Engagement
D. Control Stakeholder Engagement

Answer: C
Hint: Manage Stakeholder Engagement, Page 391, PMBOK 5

(3) Which of the following is/are required for identifying


stakeholders:

A. Stakeholder register
B. Procurement documents
C. Project management plan
D. all of the above
E. A and C

Answer: B

Hint: See Identify Stakeholders inputs, Page 392, PMBOK 5

(4) Which of the following is/are not required for manage


stakeholder engagement process?

A. Change management plan


B. Communications management plan
C. Stakeholder management plan
D. Change log

Answer:A

Hint: Manage Stakeholder Engagement, Page 391, PMBOK 5

(5) Which of the following is not a stakeholder?

A. Supplier
B. Customer
C. PMO
D. Competitor

Answer:D

Hint: A competitor has no stake in a project


(6) Stakeholder analysis can be performed using some
classification models such as:

A. Managerial grid
B. Johari window
C. Performance grid
D. Salience model

Answer: D

Hint: Stakeholder analysis, Page 396, PMBOK 5

(7) Which one of the following is the best way to manage


stakeholders?

A. Ensuring they don't get to meet outside of work


B. Meeting all of them when a milestone is ready
C. Keeping them informed throughout the project
D. Sending them gifts

Answer: C

Hint: All stakeholders must be kept informed about the project


progress

(8) The stakeholder engagement level where the stakeholder is


actively engaged in ensuring the project success is known as:

A. Leading
B. Supportive
C. Active
D. Neutral

Answer: A

Hint: See Analytical Techniques, Page 402 , PMBOK 5

(9) Stakeholders engagement assessment matrix is used to map


A. Current engagement level
B. Desired engagement level
C. Assured engagement level
D. Only A and B
E. A, B and C

Answer: D

Hint: The matrix helps map the difference between Desired and
Actual engagement level.

(10) When is the stakeholders ability to influence a project very


high?

A. In the early stages


B. Half-way through
C. Depends on their role and position
D. Just before final delivery

Answer: A

Hint: It becomes increasingly difficult to alter the course of action


as the project nears completion.

(11) During stakeholder analysis, Lisa - the project manager finds


that there are three new stakeholders that need to be added to the
stakeholder register. She code-named them as A, B, and C. Upon
further analysis, she found that A has already voiced concerns
about the project feasibility, B is unaware of the project while C
has been taking keen interest in the project and took an initiative
to solve an impediment. What should Lisa be doing on a priority?

A. Meet A to understand concerns and update issue log


B. Meet B to inform about the project and know the feedback
C. A, B
D. Thank C for the support
Answer: C

Hint: A and B could affect a project because of their concerns or


being uninformed. They should be met immediately.

(12) Stakeholder communication requirements are captured in:

A. Stakeholder Management Plan


B. Communications Management Plan
C. Procurement Documents
D. A and B

Answer: D

Hint: Both the plans capture the communication requirements

(13) Work Performance Information is an output of:

A. Plan Stakeholder Engagement


B. Manage Stakeholder Engagement
C. Control Stakeholder Engagement
D. Stakeholder Management Plan

Answer: C

Hint: See Control Stakeholder Engagement, Page 392, PMBOK 5

(14) Which of the following is/are not a technique used to manage


stakeholder engagement?

A. Delphi Technique
B. Management Skills
C. Interpersonal Skills
D. Communication Methods

Answer: A

Hint: Delphi Technique is not used to manage stakeholders


(15) Which of the following must be included in a stakeholder
register?

A. Stakeholders family history


B. Stakeholders hobbies
C. Expectations from the project
D. Communication skills

Answer: C

Hint: It is important for the PM to know each stakeholder's


expectation from the project

(16) Stakeholder classification should never be based on the


following category/group:

A. Internal/External
B. Aware/Unaware
C. Optimistic/Pessimistic
D. Supportive/Resistant

Answer: C

Hint: There is no such classification of stakeholders.

(17) What is the correct classification of engagement levels


according to the Stakeholders engagement assessment matrix?

A. Neutral, Resistant, Unaware, Supportive, Leading


B. Unaware, Neutral, Resistant, Supportive, Leading
C. Unaware, Resistant, Neutral, Supportive, Leading
D. Leading, Supportive, Neutral, Resistant, Unaware

Answer: C

Hint: See Analytical Techniques, Page 402, PMBOK 5


(18) In an analytical process, what could be a sign that indicates
the need of some actions or communications directed to manage a
stakeholder's engagement level?

A. The stakeholder talks less


B. The stakeholder's current engagement level varies from the
desired level
C. The stakeholder is remotely located
D. The stakeholder is external

Answer: B

Hint: Unmatched Desired and Actual engagement level is an


indicator of the need to assess the expectations and concerns of s
stakeholder.

(19) Stakeholder Management Plan includes all except one of the


following:

A. Scope and impact of change to stakeholders


B. Engagement levels of stakeholders
C. Stakeholders influence on project
D. Stakeholders Compensation and Remunerations

Answer: D

Hint: Stakeholder Management Plan doesn't talk about


compensation or remuneration

(20) Identify stakeholders is a part of:

A. Project Communications Management


B. Project Stakeholder Management
C. Project Human Resource Management
D. Project Integration Management

Answer: B
1 Which of the following is an advantage of centralized contracting?

A. Makes it easier to find vendors


B. Increases company expertise in contracting
C. Gives more loyalty to the project
D. Allows a contracts person to work on a single project

Answer: B

Hint: A centralized department is created to bring in processes and


uniformity, which leads to development of expertise.

2 Risks will be identified during which risk management process


(es)?

A. Perform Quantitative Risk Analysis and Identify Risks


B. Identify Risks and Control Risks
C. Perform Qualitative Risk Analysis and Control Risks
D. Identify Risks

Answer: B

Hint: PMBOK 5 Page 312, Figure 11.1

3 The highest point of Maslow's hierarchy of needs is:

A. Physiological satisfaction
B. Attainment of survival
C. Esteem
D. Self-actualization

Answer: D

Hint: Read Maslow's theory on hierarchy of needs. Self-


actualization is on top of the pyramid.

4 Who is ultimately responsible for quality management on the


project?
A. Project engineer
B. Project manager
C. Quality manager
D. Team member

Answer: B

Hint: PMBOK 5 Page 16, Sec 1.7 Role of the Project Manager

5 In the context of estimation, a heuristic is best described as a::

A. control tool.
B. scheduling method.
C. planning tool.
D. rule of thumb.

Answer: D

Hint: PMBOK 5 Page 204, Sec 7.2.2 Estimate Costs: Tools &
Techniques

6 If earned value (EV) = 350, actual cost (AC) = 400, planned


value (PV) = 325, what is cost variance (CV)?

A. 350
B. -75
C. 400
D. -50

Answer : D

Hint: CV = EV - AC

7 A project manager has just been assigned to a new project and


has been given the preliminary project scope statement and the
project charter. The first thing the project manager must do is:

A. create a project scope statement.


B. confirm that all the stakeholders have contributed to the scope.
C. analyze project risk.
D. begin work on a project management plan.

Answer: B

Hint: PMBOK 5 Page 66 Sec 4.1 Develop Project Charter

8 You are taking over a project during the planning process group
and discover that six individuals have signed the project charter.
Which of the following should most concern you?

A. Who will be a member of the change control board


B. Spending more time on configuration management
C. Getting a single project sponsor
D. Determining the reporting structure

Answer: D

Hint: PMBOK 5 Page 66 Sec 4.1 Develop Project Charter

9 The project manager is making sure that the product of the


project has been completed according to the project management
plan. What part of the project management process is he in?

A. Planning
B. Executing
C. Monitoring and controlling
D. Closing

Answer: D

Hint: PMBOK 5 Page 57 Sec 3.7 Closing Process Group

10 The WBS and WBS dictionary are completed. The project team
has begun working on identifying risks. The sponsor contacts the
project manager, requesting that the responsibility assignment
matrix be issued. The project has a budget of U.S. $loo,ooo and is
taking place in three countries using 14 human resources. There is
little risk expected for the project and the project manager has
managed many projects similar to this one. What is the next thing
to do?

A. Understand the experience of the sponsor on similar projects.


B. Create an activity list.
C. Make sure the project scope is defined.
D. Complete risk management and issue the responsibility
assignment matrix.

Answer: B

Hint: PMBOK 5 Page 149 Sec 6.2 Define Activities

11 Risk tolerances are determined in order to help:

A. the team rank the project risks.


B. the project manager estimate the project.
C. the team schedule the project.
D. management know how other managers will act on the project.

Answer: A

Hint: PMBOK 5 Page 311 Risk tolerance

12 A project manager is employed by a construction company and


is responsible for the furnishing of the completed building. One of
the first things that the project manager for this project should do
is to write a:

A. Work breakdown structure.


B. Budget baseline.
C. Project charter.
D. Project plan.

Answer: C
Hint: PMBOK 5 Page 66 Sec 4.1 Develop Project Charter; Page 16,
Sec 1.7 Role of the Project Manager

13 Your company has an emergency and needs contracted work


done as soon as possible. Under these circumstances, which of the
following would be the helpful to add to the contract?

A. A clear contract statement of work


B. Requirements as to which subcontractors can be used
C. Incentives
D. A force majeure clause

Answer : C

Hint: Read about Type of Vendor Contracts such as Cost Plus


Incentive Fee (CPIF)

14 The "halo effect" refers to the tendency to:

A. promote from within.


B. hire the best.
C. move people into project management because they are good in
their technical fields.
D. move people into project management because they have had
project management training.

Answer : C

Hint: Flaw in Expert Judgment when people good in certain areas


are deemed as good in all areas.

15 A project manager is trying to complete a software


development project, but cannot get enough attention for the
project. Resources are focused on completing process-related work
and the project manager has little authority to properly assign
resources. What form of organization must the project manager be
working in?
A. Functional
B. Matrix
C. Expediter
D. Coordinator

Answer: A

Hint: PMBOK 5 Page 21, Sec 2.1.3 Organizational Structures

16 All of the following are characteristics of a project EXCEPT:

A. Temporary
B. Definite beginning and end
C. Interrelated activities
D. Repeats itself every month

Answer : D

Hint: PMBOK 5 Page 3, Sec 1.2 What is a Project?

17 A team is using a fishbone diagram to help determine what


quality standards will be used on the project. What part of the
quality management process are they in?

A. Perform quality control


B. Perform quality assurance
C. Plan Quality Management
D. Variable analysis

Answer : C

Hint: PMBOK 5 Page 235, Sec 8.1.2 Plan Quality Management

18 The equivalent of cost reimbursable contracts is frequently


termed:

A. Back charge contracts.


B. Fixed price contracts.
C. Progress payment contracts.
D. Cost plus contracts.

Answer: D

Hint: Read about Type of Vendor Contracts such as Cost Plus


Incentive Fee (CPIF)

19 A buyer extends a formal invitation containing a scope of work.


The invitation seeks a response describing the methodology and
results that will be provided to the buyer. This is called:

A. Invitation to bid.
B. Request for information.
C. Request for proposal.
D. Request for bid.

Answer: C

Hint: PMBOK 5 Page 558 Request for proposal definition

20 A project manager must have some work done by an outside


contractor. This work has a great deal of risk associated with it,
and it has become very difficult to find a contractor willing to take
on the job. Which of the following types of contract would offer the
greatest incentive to the contractor?

A. Cost plus percentage of cost as an award fee


B. Cost plus fixed fee
C. Cost plus incentive fee
D. Firm fixed price

Answer: A

Hint: Option A is most lucrative incentive while option C also offers


incentives. Read about Type of Vendor Contracts such as Cost Plus
Incentive Fee (CPIF)
21 Purchasing insurance is considered an example of risk:

A. mitigation.
B. transfer.
C. acceptance.
D. avoidance.

Answer B

Hint: PMBOK 5 Page 344 Sec 11.5.2.1 Strategies for Negative Risks

22 A cost performance index (CPI) of 0.89 means:

A. at this time, we expect the total project to cost 89 percent more


than planned.
B. when the project is completed we will have spent 89 percent
more than planned.
C. the project is only progressing at 89 percent of that planned.
D. the project is only getting 89 cents out of every dollar invested.

Answer: D

Hint: PMBOK 5 Page 219 - Cost performance index

23 In a matrix organization, which of the following is true??

A. The project manager is responsible for employee skills


improvement.
B. The functional manager is responsible for employee skills
improvement.
C. The project manager is responsible for the employee.s annual
appraisal.
D. The employee is responsible for his or her own skills
improvement.

Answer: B

Hint: PMBOK 5 Page 21, Sec 2.1.3 Organizational Structures


24 Your program manager has come to you, the project manager,
for help with a bid for her newest project. You want to protect your
company from financial risk. You have limited scope definition.
What is the BEST type of contract to choose?

A. Fixed price (FP)


B. Cost plus percent of cost (CPPC)
C. Time and material (T&M)
D. Cost plus fixed fee (CPFF)

Answer : D

Hint: CPFF is the best contract type from buyer perspective as the
seller is aware that cost overruns may have to be borne by him.

25 The project management process groups are:

A. Initiating, planning, expediting, and control.


B. Plan, organize, develop, and control.
C. Plan, do, observe, commit.
D. Initiating, planning, executing, monitoring &controlling, and
closing.

Answer: D

Hint: PMBOK 5 Page 49 Definitions of Process Groups

26 In which project management process group is the detailed


project budget created?

A. Initiating
B. Before the project management process
C. Planning
D. Executing

Answer : C
Hint: PMBOK 5 Page 61 Table 3-1 Project Management Process
Group and Knowledge Area Mapping

27 Which of the following conflict resolution techniques will


generate the MOST lasting solution?

A. Forcing
B. Smoothing
C. Compromise
D. Problem solving

Answer : D

Hint: Except Problem Solving, all other approaches are temporary


solutions resulting in recurring conflicts.

28 Breaking the major deliverables into smaller, more manageable


components to provide better control is called:

A. Scope planning.
B. Decomposition.
C. Scope base lining.
D. Bill of Materials (BOM).

Answer : B

Hint: PMBOK 5, Page 128, Sec 5.4.2.1 Decomposition

29 Which of the following is NOT an input to the initiating process


group?

A. Company processes
B. The company culture
C. Historical WBSs
D. Project scope statement

Answer : D
Hint: PMBOK 5, Page(s) 61, 106. Scope statement is output of
Define Scope process under Planning.

30 Workarounds are determined during which risk management


process?

A. Identify Risks
B. Perform Quantitative Risk Analysis
C. Plan Risk Responses
D. Control Risks

Answer : D

Hint: PMBOK 5, Page 353, Sec 11.6.3.2

31 A person who is involved in or may be affected by the activities


or anyone who has something to gain or lose by the activity of the
project is called a:

A. Team member.
B. Customer.
C. Stakeholder.
D. Supporter.

Answer : C

Hint: PMBOK 5, Page 563, Definition of Stakeholder

32 Quality is:

A. meeting and exceeding the customer's expectations.


B. adding extras to make the customer happy.
C. the degree to which the inherent characteristics fulfill
requirements.
D. conformance to management's objectives.

Answer : C
Hint: PMBOK 5, Page 556, Definition of Quality

33 A schedule performance index (SPI) of 0.76 means:

A. you are over budget.


B. you are ahead of schedule.
C. you are only progressing at 76 percent of the rate originally
planned.
D. you are only progressing at 24 percent of the rate originally
planned.

Answer : C

Hint: PMBOK 5, Page 224, Table7-1 SPI definition, usage and


interpretation

34 Contract closure is different from administrative closure in that


contract closure:

A. occurs before administrative closure.


B. is the only one to involve the customer.
C. includes the return ofproperty.
D. may be done more than once for each contract.

Answer : A

Hint: PMBOK 5, Page 100, Sec 4.6 Close Project or Phase

35 During the full life cycle of the project, a plot of the project.s
expected expenditures will usually follow a characteristic ..S..
shape. This indicates that:

A. There is a cyclic nature to all projects.


B. Problems will always occur in the execution phase.
C. There are high expenditures during closeout.
D. The bulk of the project budget will be spent in the execution
phase.
Answer :D

Hint: PMBOK 5, Page 214, Figure 7-9 Cost Baseline, Expenditures,


and Funding Requirements

36 An output of administrative closure is the creation of:

A. project archives.
B. a project charter.
C. a project management plan.
D. a risk analysis plan.

Answer : A

Hint: PMBOK 5, Page 100, Sec 4.6 Close Project or Phase

37 A temporary endeavor undertaken to create a new product or


service is called a:

A. New product development.


B. Project.
C. Program.
D. Enterprise.

Answer : B

Hint: PMBOK 5, Page 553, Definition of Project

38 An example of scope validation is:

A. Reviewing the performance of an installed software module.


B. Managing changes to the project schedule.
C. Decomposing the WBS to a work package level.
D. Performing a benefit-cost analysis to determine if we should
proceed.

Answer : A

Hint: PMBOK 5, Page 133-134 Sec 5.5 Validate Scope


39 What conflict resolution technique is a project manager using
when he says, "I cannot deal with this issue now!"

A. Problem solving
B. Forcing
C. Withdrawal
D. Compromising

Answer : C

Hint: Avoidance or procrastination to deal with an issue comes


under Withdrawal.

40 Approved Change Requests are an input to:

A. Control Scope and Validate Scope.


B. Direct and Manage Project Work.
C. develop project management plan and develop project charter.
D. Develop Project Management Plan and Develop Schedule.

Answer : B

Hint: PMBOK 5, Page 82, Sec 4.3.1.2 Approved Change Requests

41 A group of related projects that are managed in a coordinated


way that usually include an element of ongoing activity is called a:

A. Major project.
B. Project office.
C. Program.
D. Group of projects.

Answer : C

Hint: PMBOK 5, Page 553, Definition of Program

42 To control the schedule, a project manager is reanalyzing the


project to predict project duration. She does this by analyzing the
sequence of activities with the least amount of scheduling
flexibility. What technique is she using?

A. Critical path method


B. Flowchart
C. Precedence diagramming
D. Work breakdown structure

Answer : A

Hint: PMBOK 5, Page 536, Definition of Critical Path Method (CPM)

43 A project manager has assembled the project team, identified


56 risks on the project, determined what would trigger the risks,
rated them on a risk rating matrix, tested their assumptions and
assessed the quality of the data used. The team is continuing to
move through the risk management process. What has the project
manager forgotten to do?

A. Simulation
B. Risk mitigation
C. Overall risk ranking for the project
D. Involving of other stakeholders

Answer : D

Hint: PMBOK 5, Page 319-321 Sec 11.2 Identify Risks

44 Configuration management plan is:

A. Used to ensure that the description of the project product is


correct and complete.
B. The creation of the work breakdown structure.
C. The set of procedures developed to control changes.
D. A mechanism to track budget and schedule variances.

Answer : C
Hint: PMBOK 5, Page 138, Sec 5.6.1.1 - Configuration
management plan

45 A rough order of magnitude estimate is made during which


project management process group?

A. Project planning
B. Project closing
C. Project executing
D. Project initiating

Answer : D

Hint: PMBOK 5, Page 201, Sec 7.2 Estimate Costs

46The work defined at the lowest level of the breakdown structure


to estimate as well as manage time and cost is called the:

A. Activity.
B. Task.
C. Work package.
D. Cost account.

Answer : C

Hint: PMBOK 5, Page 567, Definition of Work Package

47 All of the following are examples of the cost of nonconformance


EXCEPT?

A. Rework
B. Quality training
C. Scrap
D. Warranty costs

Answer : B

Hint: PMBOK 5, Page 235


48 What type of contract do you not want to use if you do not have
enough labor to audit invoices?

A. Cost plus fixed fee (CPFF)


B. Time & material (T&M)
C. Fixed price (FP)
D. Fixed price incentive fee (FPIF)

Answer : A

Hint: CPFF would involve auditing invoices presented by the vendor


to account for the costs incurred.

49 A project manager has just been assigned to a project. The


document that recognizes the existence of the project is called:

A. The statement of work.


B. The project assignment.
C. The project charter.
D. The product description.

Answer : C

Hint: PMBOK 5 Page 66 Sec 4.1 Develop Project Charter

50 The WBS for the project represents:

A. All the tangible items that must be delivered to the client.


B. All the work that must be completed for the project.
C. The work that must be performed by the project team.
D. All the activities of the project.

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