PMP Exam Prep ETC
Content
Project Management
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Table of Contents
Module 1: Introduction Module 2: Integration Management Module 3: Scope Management Module 4: Time Management Module 5: Cost Management Module 6: Quality Management Module 7: HR & Communication Management
Module 8: Risk Management Module 9: Procurement Management Module 10: Final Exam
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MODULE 1: INTRODUCTION
1. Which of the following Project Management Knowledge Areas describes processes and activities that integrates various elements of Project Management, and helps to identify, combine, unify, and coordinate within the Project Management Processdefine, Groups? A. B. C. D.
Project Procurement Manage Management ment Project Risk Management Project IIntegration ntegration Management Project Human Resources Management
2. There are distinct differences between Project Life Cycles and Project Phases. Which of the following statements describes the relationship between Project Phases and Project Life Cycles? A. Project Phase can contain one or more repetitions of the Project Life Cycle B. Collectively, the Projec Projectt Phases are k known nown as the Project Life Cycle C. The Project Life Cycle is know known n as the sequence of projec projectt activities; whereas, Project Phases are defined to control the overlapping activities D. The Project Life Cycle contains the repetitive, incremental elements inside a Project Phase 3. The Project Scope Statement provides the basis for future project decisions. This statement is also used to develop a common understanding of the Project Scope among Stakeholders. In which Project Management Process Group will you develop the Project Scope Statement? A. B. C. D.
Initiating Process Planning Process Executing Process Monitoring & Controlling Process
4. A Project Charter contains the project title, product description, and project goals and objectives. It is issued by the: A. B. C. D.
Project Initiator Project Stakeholder Project Manager Senior Manager
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5. The difference between Program Management and Project Life Cycle is best described as: A. Program Management is a collection of related projects; whereas, Project LifeManagement Cycle is a collection of related Project Phases. B. Program and Project Life Cycle are for better management control and they both consist of a collection of related projects. C. Program Management and Project Life Cycle are for better management control and they both consist of a collection of related Project Phases. D. Program Management is a collection of related projects; whereas, Project Life Cycle is a collection of Project Management Phases. 6. In order to be a successful Project Manager, you must possess critical interpersonal skills. These skills would include all of the following EXCEPT: A. B. C. D.
Influencing the organization Collaborating Motivating Problem solving
7. UCOM is in the process of selecting one of the following projects. You are a senior manager working for UCOM and your input is on the following most important for selecting a project. Based on the information which project would you select? Project SDH backhaul
Benefit: Cost Ratio 1:3
GPON backhaul Packet microwave backhaul WiMAX backhaul A. B. C. D.
2:1 5:2 3:2
SDH Backhaul project GPON backhaul project Packet microw microwave ave bac backhaul khaul projec projectt WiMAX backhaul project
8. Almas is running a one-year project that is expected to be in Initiation and Planning for seven months, Execution for four months, and Rollout for one month. During which period will his project cost the most money?
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A. B. C. D.
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Initiation Planning Execution Control
9. The Project Management Process Groups can be depicted as five groups that tend to overlap with each other from one group to another; however, the Monitoring and Controlling process group overlaps all the process groups. Why? A. Monitoring and Controlling is separate from the other process groups. B. Monitoring and Controlling has a plan that can be used throughout the Initiation, Planning, and Closeout of the project. C. Project Sponsor is responsible for the Monitoring and Controlling, so the Project Manager is not involved with that phase of the project. D. Monitoring and Controlli Controlling ng extends through throughout out the entire project from Initiating to the Closing processes. 10. Which of the following is not a feature of a project? A. B. C. D.
It is a temporary endeavor Constrained by limited resources Ongoing and repe repetitive titive Creates a unique product/service
11. _____is any unique and verifiable product/result, or capability to perform a ‘service’ that must be produced to complete a process, phase, or project. project. A. B. Deliverable Project scope statement C. Project Man Management agement Methodology D. Requested changes 12. Alisha is planning to invest US $30,000 in today’s dollars at an annual rate of interest of 9%; what would be the total value (Future Value) of her investment in three years? A. B. C. D.
US $38,850 US$22,915 US $23,166 US $25,900
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13. Gulf Dunes LLC always trying to get the best return on its investment. If the current interest rate is 5.6% and the return on investment (ROI) is 1.85, the return that a company would earn if it invests in the project is the: A. Benefit Cost Ratio (BCR) B. C. IRR Present value (PV) D. Earned value 14. Estimate Costs and Determine Budget are completed in which of the following Project Management Process Groups? A. B. C. D.
Executing Initiating Planning Monitoring & Controlling
15. The business need, strategic plan, and product scope description are all elements of a Project Statement of Work. These are all inputs to which one of the following process? A. B. C. D.
Develop Project Manag Management ement Plan Direct and Manage Project Exec Execution ution Develop Project C Charter harter Develop Proje Project ct Scope Statement
16. A project is a temporary endeavor undertaken to create a unique product, service, or result. Which of the following is an example of a Project? A. Creating Course Material B. Support S C. Customer Providing Technical Support upport D. Billing & Invoice proce processing ssing 17. Integrating and coordinating people, activities, and other resources to carry out the Project Management Plan for the project is performed during: A. B. C. D.
Initiation Planning Monitoring & Controlling Executing
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18. The Project Manager is responsible for performance appraisals during closure, and the Functional Manager is responsible for salary increases and career growth of team members. This represents a: A. Functional Organization B. Weak Matrix Organization C. Projectized Balanced Matrix Organization D. Organization 19. It is the Project Manager and Project Team’s responsibility to validate the th e project Constraints and Assumptions from time to time. Which of the following documents contain descriptions of Assumptions and Constraints? A. B. C. D.
Project Issues Log Project Charter Performance Measurement Project State Statement ment of Work
20. What is the difference diff erence between a Standard and a Regulation? A. B. C. D.
Standards are optional; Reg Regulations ulations are required Standards and Regulations are the same Standards are regulated by specific industries; Regula Regulations tions are laws Standards are required; Reg Regulations ulations are optional
21. Working in close proximity helps the project members to work as a team and has a positive impact on communication and productivity. This concept is an example of: A. Tight Matrix B. Team Building C. D. Develop Synergy Team 22. One of the documents includes work that must be completed in order to deliver a product with the specified features and functions of the product or service. Which of the following is it? A. B. C. D.
Project Charter Product Scope Statement Project M Management anagement Plan Project Sc Scope ope Statement
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23. A Project Charter includes all of the following work products EXCEPT A. Risk analysis B. Summary Budget C. Product description D. Stakeholder influences 24. At an annual rate of interest of 7%, if I expect to make $46,000 three years from now, what is the value of the investment? A. B. C. D.
-$37,398 -$42,990 +$46,000 +$37,398
25. Every PMP® should adhere to the PMI®’s Professional code of conduct. All of the following statements do apply EXCEPT A. PMP®’s must report clear violations of the PMI®’s Professional code of conduct B. PMP®’s must use all of PMBOK® concepts, tools and techniques C. PMP®’s must cooperate with PMI® on any ethics violations violations D. PMP®’s must disclose possible conflicts of interest interest
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PMBOK® The question itself is a definition of Integration Management; therefore, answer C is correct. PMBOK® A Project Life Cycle is composed of one or more phases. Answers A, C, and D do not describe the relationship between Project Phases and the Project Life Cycle, so they are incorrect. PMBOK® The Project Scope Statement is an Output of the Define Scope Process. According to PMBOK® the Define Scope process falls under the Planning Project Management Process Group. The correct answer is B. PMBOK® Answer A is correct because the Project Sponsor/initiator is the one who creates/approves the Project Charter PMBOK® Program Management is a collection of related projects; whereas, Project Life Cycle is a collection of related Project Phases. PMBOK® Collaborating is not an interpersonal skill. It is combined with general management skills, and other fundamental management skills. Answer B is the correct answer choice. One of the models in the Benefit Measurement method is a ‘Benefit cost ratio (BCR). BCR>1 means benefits are greater than the cost, which is always good to have. BCR=l means benefits are equals to cost (basically it is breakeven). In this problem BCR for Packet microwave project is the highest which is 5:2. That means the benefits are 2.5 parts for every part you invest as cost. Answer C is correct. The Execution Phase of a project has the highest level of activity and expense. The Planning Phase has the second- highest level of activity and expense. For most Project Life Cycles, the intermediate phases consume the highest level of staffing and time. During the Initial Phase, the project begins to gain momentum as the Level of activity rises. Therefore, answers A, B, and D are incorrect. PMBOK® Monitoring and Controlling processes are utilized to monitor and control all the other Initiating, Planning, Closing. This is stated in processes (D). (B) isinincomplete, since it Executing, does not and include “Executing” processes and also there is no ‘plan’. Project Sponsor is not involved in the management of the project; hence ‘C’ is ‘C’ is incorrect. (A) is true, but that is implied in (D) as well. PMBOK® Answer C is correct. Operations and projects differ primarily in that operations are ongoing and repetitive, while projects are temporary and unique. A project is a temporary endeavor undertaken to create a unique product or service. PMBOK® This is a PMBOK® ® definition of Deliverable. Answer B, C, and D are incorrect. FV = PV(1+i)^n = 30,000(1+0.09)^3 = 30,000 x 1.295 = $38,850 Answer B is correct. The internal rate of return (IRR) is the interest rate that makes the net present value of all cash flows equal zero. Answer A is incorrect because the benefit cost ratioproject. identifies the relationship between the cost and benefits of a proposed Answer C is incorrect because present value (PV) is the value today of
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PMBOK® The correct answer is C because during the Planning Process Group, Estimate Costs and Determine Budget will take place. This is a direct PMBOK® definition.. PMBOK® Creating course material is a temporary endeavor that creates a unique product, so&AInvoicing is correct. Customer providing technical support, and Billing processes aresupport, called Operations because they are ongoing and not a project. PMBOK® Answers A, B, and C are Incorrect because the Initiating Processes define and authorize the project. The Planning Processes define and refine objectives and create the project plan. The Monitoring a Controlling Processes regularly measure and monitor progress and Execution Is the one that carries out the Project Management Plan. Thus, answer D Is correct. PMBOK® Answers A and B are Incorrect because In the Functional and Weak Matrix Organizations, the Functional Manager has all of the power and authority. Answer V is incorrect because in a Projectized Organization, the Project Manager has all of the power. In this question, the authority has been shared by the Functional Manager and the Project Manager, so it is a Balanced Organization. answer C is correct. The ProjectMatrix Charter and ProjectThus, Scope Statement contain Assumptions and Constraints descriptions. The other documents stated do not; however, the other documents make use of Assumptions and Constraints information provided in the Project Charter and the Project Scope statement. PMBOK® Answers B, C, and D are incorrect because they do not accurately describe Standards and Regulations. Standards are optional and may sometimes be called guidelines. Regulations are not optional and are typically enforced by Laws. Answer A is correct. Tight Matrix or Collocation occurs when Project Team members are physically Located in close proximity, which improves communication, focus, and emphasis on project completion. PMBOK® According to the PMBOK® Guide, Project Scope is defined as the work that needs to be accomplished to deliver a product, service, or result with specific features and functions. Therefore, A, B, and C are incorrect. PMBOK® Answer A is correct. Risk analysis will not be a part of the Project Charter since it is part of planning PV = FV/(1 + r)^n = 46,000/(1+ .07)^3 = 46,000/1.23 = $37,398 Every PMP should adhere to the PMI’s Professional code of conduct. PMP codes do not say that you must use all PMBOK® concepts.
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MODULE 2: INTEGRATION MANAGEMENT
1. Atlas Telec Telecom om has decided to install new security ala alarms rms in all their franchises. The project has been chartered. The project sponsor does not want to get involved with project change control management. The branch managers are not cooperating with you because each manager has a different idea how this should be accomplished. Which of the following is the MOST likely cause of the project problems? A. The project manager and his team did not identify all the project stakeholders. B. Project sponsor in not wanting to get involved in the chang change e control management and the company politics is causing issues for your team in getting support from the branch managers. C. The project manager may not in installing security alarms and cannot convince hishave teamknowledge or the branch managers. D. The project manager did not follow basic PMI concepts such as project charter approval, which is making it harder for him to get support from the branch managers. 2. Stakeholders are individuals or organizations with a vested interest in the project. Positive stakeholders are those who would normally benefit from a successful outcome from the project, while negative stakeholders are those who see negative outcomes from the project’s success. In order to manage stakeholders expectations you need to identify project stakeholders during: A. Initiating, Planning, Executing, Monitoring and Controlling Process Groups B. Initiating, Planning, and Executing Process Gro Groups ups C. Initiating, Planning, and Closing Process Gr Groups oups D. Initiating, Planning, Executing, Monitoring and Controlling, and Closing Process Groups 3. Administer Procurements is part of: A. B. C. D.
Planning Process Group Initiating Process Group Executing Process Group Monitoring and C Controlling ontrolling Process Group
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4. Project Managers often have to rely on competent suppliers to accomplish only the work specified by the scope statement, WBS, and the WBS dictionary. Which document has the least importance in regards to selecting a vendor? A. B. C. D.
Qualified seller list Procurement Management Plan Bidders conferences Staffing Ma Management nagement Plan
5. Project selection methods are one of the tools & techniques of Develop Project Charter process. These selection methods generally fall into two broad categories: Benefit Measurement Methods and Mathematical Models. Following are all part of Mathematical Model methods EXCEPT: A. B. C. D.
Linear Programming Method Comparative approaches Multi Objective Programming M Method ethod Nonlinear Pr Programming ogramming Method
6. The main purpose/function of WAS is to: A. B. C. D.
Project overall control PM authority Managing the res resources ources Control sco scope pe o off work
7. ______ are any unique and verifiable product, result, or capability to perform a service that must be produced to complete a process, phase, or project. A. B. C. D.
Approved change req requests uests Deliverables Project Product
8. A contract administrator is responsible for all outputs of Administer Procurements. He/she also monitors, and accepts these necessary documents. The contract administrator is also responsible for: A. B. C. D.
Final payment Team performance reports Lessons learned Work performance information
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9. Documenting high-level risks, assumptions, and constraints leads to a better understanding of the project limitations/boundaries. In which one of the following processes do you conduct these activities? A. B. C. D.
Planning processes Initiating processes Executing processes Development processes
10. Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements. A project manager is the person responsible for accomplishing the project objectives which are documented in: A. B. C. D.
The Project charter Project Scope Statement The Project management plan The Deliv Deliverables erables do document cument
11. Corrective action is to bring expected future performance of the project work in line with the project management plan. Which one of the following is an example of a corrective action? A. Taking an alternate route to the party due to construction traff traffic, ic, with the hope of reaching on time B. Providing frequent security upda updates tes to a software prog program ram C. Fixing cracks in your basement detected during inspection D. Detailed review of the project plans by subject matter ex experts perts
12. Work performance of the completion the deliverables, and whatinformation has beenconsists accomplished up to thatstatus point.ofThis information is collected as part of the: A. B. C. D.
Direct and Manage Project Ex Execution ecution Monitor and Control Pr Project oject Work Schedule dev development elopment and monitoring Develop Proje Project ct Manag Management ement Plan
13. A project is a temporary endeavor undertaken to create a unique product, service, or result. Which of the following is an example of a Project? A. Creating Course Material B. Providing Customer Support C. Providing Technical S Support upport Issue No: 1
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D. Billing & Invoice proce processing ssing 14. Project stakeholders are individuals and organizations that are actively involved in a project, or whose interests may be affected as a result of project execution or project completion. A project team is also considered to be a stakeholder. This team consists of: A. The group that is performing the w work ork of the project B. Any one reporting directly to the Project Manager C. A group that is not directly related to the acquisition or use of the project’s product product D. The enterprise whose employ employees ees are most directly involved in doing the work of the project 15. It is the project manager and project team’s responsibility to validate the project constraints and assumptions from time to time. Which of the following documents contain descriptions of assumptions and constraints? A. B. C. D.
Project Issues Log Project Scope Statement Performance Measurement Project State Statement ment of Work
16. Which of the following Project Management Knowledge Areas describes processes and activities, integrates various elements of Project Management, and is identified, defined, combined, unified, and coordinated within the Project Management Process Groups? A. Project Procurement Man Management agement B. Project Risk Management C. Project Integration Management D. Project Human Resources Management 17. The purpose of a Project Charter is all of the following EXCEPT: A. To give functional power power to the Project Manager B. To authorize the beginning of a project C. To describe business need(s) the project will meet D. To give the Project Manager authority to go forward with the project 18. Francisco, a PMP, is a Project Manager for a multi-million dollar project broken down into five phases. He has completed three phases; and is getting into the next phase. Which of the following processes formally authorizes the project to continue into the next phase? A. Planning Process Issue No: 1
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B. Initiating Process C. Project Cl Close ose Process D. Define Sc Scope ope proc process ess
19. Youand have successfully completed the project and you customer. are formalizing project products final acceptance documents for the Whichthe of the following documents contains project and product descriptions and deliverable requirements? A. B. C. D.
Project Scope Statement Quality Management Plan Project Charter Project Scope Management Plan
20. Which of the following is a process that includes the actions necessary to define, integrate, and coordinate all subsidiary plans into a Project Management Plan? A. B. C. D.
Integration Plan Develop Project Ma Management nagement Plan Project IInformation nformation System Project Man Management agement Methodology
21. There are 4 projects in the project pipeline and the management team of Vodacom decided to pick one project based on benefit to cost ratio (BCR) model. The BCR value for the projects are as follows: Project-1 BCR 2:6, Project-2 BCR 4:1, Project-3 BCR 3:2, and Project-4 BCR 1:1. Based on this data which project do you think Vodacom will pick? A. B. C. D.
Project-4 Project-3 Project-2 Project-1
22. Maher has been assigned the responsibility of calculating the payback period for his project that is to be completed in 3 years. The internal rate of return (IRR) is 7% and the annual savings will be $200,000 per year. The total cost is $1,000,000 and the rate of return during this tune period is 3%. What is the payback period of Maher ’’s s project? A. B. C. D.
13.3 years 5 years 4 years 3 years
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23. Qasim and his tea team m spent 6 months to comple complete te all the Planning activ activities ities for a project. The outcomes of planning process were collected and put together a comprehensive and coherent document. This document will help the teaminto to execute, monitor, control, and close the project. His next response could be any of the following EXCEPT: A. Collecting and distributing project performance information to stakeholders based on communications management plan B. Take action to proactively ensure that the changes will be implemented or agreed upon C. Execute all the work packages and collect work performance perf ormance information D. Collect stakeholder’s agreement for subsequent activities on the project 24. The team is working to implement activities as defined in the Project Management Plan. This is to accomplish the performance requirement of the contract and the Statement of Work (SOW). Carrying out this activity would be appropriate in all of the following EXCEPT: A. Implementing activities that bring expected future project performance in line with project management plan B. Completing activities that reduce th the e threat of negative project risks risks from occurring C. Responding to problems by selecting alternate risk response strategies D. Executing the activities needed to collect project records, gather lessons learned, and archive project information 25. A project manager is required to understand, evaluate, define and manage expectations of stakeholders. This is essential to satisfy which one of the following: A. B. C. D.
Detailed project objective objectives s statement Customer ne needs eds an and ds specifications pecifications Sponsor and Senior Manag Management ement expec expectations tations Functional requirements
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PMBOK® The Project Management Team must identify the project stakeholders, determine their requirements and expectations, and to the extent possible manage their influence in relation to the requirements to ensure a successful project. Options A, B, & D in the above question are not the root cause of the problem. The main issue is: identifying the stakeholders and communicating with them in a timely manner. PMBOK® It is better to identify all of the project stakeholders at the beginning of the project, but as the project goes through different phases, the project team may identify more stakeholders for the project. Hence, ‘D’ is ‘D’ is correct. It is the project management team’s responsibility to identify all of the stakeholders through all of the process groups PMBOK® Administer Procurements is part of Monitoring & Controlling Process Group. PMBOK® Staffing Management Plan document is Least important during vendor selection process. Project Selection Methods - There are two broad categories. 1-Benefit Measurement Methods, 2-MathematicaL Models. Comparative approaches come under ‘Benefit Measurement Methods’ and the rest of them are part of Mathematical Models. PMBOK® The main purpose of WAS is to control scope of work PMBOK page# 432 Definition of deliverables PMBOK® The contract administrator administers the project performance reports; he/she does not administer the team performance reports. Work performance information is information on the status of the project activities being performed to accomplish the project work, and are routinely collected as part of the project management plan execution. The contract administrator administers payments but not Lessons learned -that - that is the project team’s responsibility. PMBOK® These activities are part of the initiation process. These high-level risks, assumptions, and constraints will be elaborated and analyzed in the Later phases. PMBOK® (A) Project charter is the document that formally authorizes a project, and (C) Project management plan defines how the project is executed, monitored and controlled, and closed. (D) Deliverables document will show all the deliverables. (B) Project scope statement contains project and product objectives. PMBOK® Taking action to bring expected future project performance into conformance with the project management plan is a corrective action PMBOK® Work performance information consists of the completion status of the deliverables, and what has been accomplished up to that point. This information is collected as part of Direct and Manage Project Execution. PMBOK® Creating course material is a temporary endeavor that creates a unique
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product, so A is correct. Customer support, providing technical support, and Billing & Invoicing processes are called Operations because they are ongoing and not a project. PMBOK® Answer B, C, and D are incorrect because they are the definitions of other Stakeholder groups. Answer A is the definition of the Project Team Stakeholder PMBOK® group. Project Scope Statement contains assumptions and constraints descriptions. The other documents stated do not; however, the other documents make use of Assumptions and Constraints information provided in the Project Scope statement. PMBOK® Definition of Integration Management; PMBOK® Answer A is correct because a Project Manager is not given functional authority in the Charter. Answer B is incorrect because the Project Charter does authorize the beginning of the project. Answer C is incorrect because the Charter should include a description of the business need(s) that the project will meet. Answer D is incorrect because the Project Charter does give the Project Manager authority to go forward with the project. PMBOK® Initiation defines and authorizes thebeproject or project phase. Thus, if itProcess is a newGroup project the Project Charter will developed and initiates the project. If it is an existing project, the Project Charter already exists, so it authorizes approval to begin the next phase with approval from the Project Sponsor. PMBOK® The Project Scope Statement contains the descriptions and needs to be accomplished and delivered. Project Scope Management Plan and Quality Management Plan are planning documents. The Project Charter contains business needs and high level project description, but not deliverable requirements. PMBOK® The Project Management Plan defines how the project is Executed, Monitored and Controlled, and finally closed. Here, the question is based on this process. Integration plan is a plan, Project Information System is a system, and Project Management Methodology is a methodology not a process. Therefore, the correct answer is B. One of the models in the Benefit Measurement method is a ‘Benefit cost ratio (BCR). BCR>1 means benefits are greater than the cost, which is always good to have. BCR=1 means benefits are equals to cost (basically it is breakeven). In this problem 8CR for Project-2 is the highest which is 4:1. That means the benefits are 4 parts for every part you invest as cost. PMBOK® Answer B is correct. The payback period is how Long it takes tak es to recoup your investment. In this example, the cost was $1,000,000I$200,000 = 5. Therefore, Answers A, B, and D are incorrect. PMBOK® Qasim has completed the Project Management Plan. He could, ideally, start with D, continue with A, and C. However, B is the least Likely aspect since it is a Monitor and Control activity. PMBOK® The Project Team is performing Direct and Manage Project Execution. A is implementing corrective actions, B is implementing preventive actions, 0 is executing administrative closure procedure. C refers to Monitor and Control
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Risks, which is conducted during Monitoring and Control and not in Execution. B which includes A, C, D is a better answer.
MODULE 3: SCOPE MANAGEMENT
1. You have successfully completed the project and you are formalizing the project and the product’s final acceptance documents for the customer. Which of the following documents contains project and product descriptions, acceptance criteria, constraints and deliverable requirements? A. B. C. D.
Project Scope Statement Quality Management Plan Project Charter Project Scope Management Plan
2. There are several Processes, Inputs, Outputs, Tools, and Techniques that you need to learn for the PMP exam. According to PMBOK®, the Project Management Life Cycle involves: A. Concept, Planning, Exec Executing, uting, Monitoring & Controlling, and Closing Closing B. Initiation, Planning, Execution, Monitoring, an and d Contract C. Initiation, Planning, Scheduling, Monitoring & Controlling, and Closing D. Analysis, Design, Build, Development, and Maintenance 3. Project Stakeholders are individuals and organizations that are actively involved in a project, or whose interests may be affected as a result of Project Execution or completion. A Project Team is also considered to be a Stakeholder. This team consists of: A. The group that is performing the w work ork of the project B. Any one reporting directly to the Project Manager C. A group that is not directly related to the acquisition or use of the project’s product product D. The enterprise whose employ employees ees are most directly involved in doing the work of the project 4. Completion of the Project Scope is measured against the: A. Project Charter and Project Scope s statement tatement B. Work Breakdown Structure (WBS) and Work Breakdown Structure Dictionary (WBSD) C. Product requirements, technical specifications specifications,, and implementation D. Project M Management anagement Plan Issue No: 1
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5. There are several Scope Management processes that can be utilized in any given project. Which of the following is NOT a Scope Management process that can be utilized? A. B. C. D.
Create WBS Verify Scope Scope Reporting Define Scope
6. The Project Team is responsible for developing the Scope Plan, which is a subsidiary of the Project Management Plan. Project Scope Management Processes includes the following: A. Collect Requirements, Project and Product Scope, Verify Scope and Control Scope B. Collect Requirements, Define Scope, Create WBS, and Control Scope C. Identify Stakeholders, Collect Requirements, Define Scope, Create WBS, and Verify Scope D. Collect Requirements, De Define fine Scope, Create WBS, and Close Projec Projectt or Phase 7. Your client, Momentum Engineering, has cancelled your project due to labor costs and a change in market conditions. Which of the processes would you be required to accomplish as cancellation? A. Verify Scope and Close Projec Projectt or Phase B. Verify ControlScope Scopeand andClose CloseProcurements Project or Pha Phase se C. D. Control Scope and Close Phase 8. Which is a document used in Project Management as basis for future project decisions? This document is also used to develop a common understanding of Project Scope among Stakeholders. A. B. C. D.
Project Scope Statement Project Charter WBS document Product Scope Document
9. A Code of Accounts is:
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A. A unique identifier assign assigned ed to each WBS item B. Cost center id identifier entifier assigned to each projec projectt C. A unique code in the organization’s organization’s Chart of Accounts Accounts D. A unique identi identifier fier assigned to eac each h WBS item 10. Which of the following baselines integrate Scope, Schedule, and Cost parameters against which project execution is measured: A. B. C. D.
Project Schedule Baseline Performance Measurement Baseline Project Sc Scope ope Baseline Project Co Cost st Baseline
11. Which of the following f ollowing statements about the WBS is FALSE? A. B. C. D.
It is one of the methods to build a Project Sc Schedule hedule It is one of the ite items ms that forms the Scope Bas Baseline eline It is considered a good commu communication nication tool It provides a framework for ordering a project’s tasks tasks
12. Your team used a technique called decomposition to subdivide the major project deliverables into smaller, more manageable components. In which process of Project Scope Management will this activity be conducted? A. B. C. D.
Define Activities Create WBS Collect Requirements Define Scope
13. According to PMBOK®, Scope Baseline is an important input for all processes EXCEPT A. B. C. D.
Define Activities Determine Budget Develop Schedule Estimate Costs
14. Who provides inputs to document the Lessons Learned in a project? A. B. C. D.
Project Manager Project Stakeholder Senior Manager Project Team
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15. Completeness and Correctness are activities that are performed in the Monitoring Controlling Process They are doneofinthe parallel to assure correctness& and acceptance of Group. the project. Which following two processes includes these activities? A. B. C. D.
Control Scope and Perform Quality Control Perform Quality Control and Clos Close e Project or P Phase hase Perform Quality Assurance an and d Control Sc Scope ope Verify Scope and Perform Q Quality uality Control
16. In Verify Scope, the Project Team will obtain formal acceptance of the completed Project Scope and associated Deliverables by the Stakeholders. Verify Scope is a part of Project Scope Management that is conducted at which point of the Project? A. B. C. D.
During Planning At the end of each P Project roject Phase During Controlling During Executing
17. Khalil comments that it is a myth that the requirements for large software projects are ever completely understood or completely specified. As a Project Manager, the implication of this statement is that: A. Changes may not be required on a project that is completely specified and documented by the clients. B. Project Manager has to while conduct DefineinScope process early and rigorously as possible, building flexibility to account for changes C. It is impossible to build a software system that is ever completely understood or completely specified, since changes can be disruptive. D. You doubt if you can e ever ver create large software projec projects ts that are not completely understood or completely specified. 18. There are several activities that will have a major impact on the Scope Change process. All the activities listed below meet these criteria EXCEPT A. Adding a new functiona functionality lity to the scope of the project B. Removing a func functionality tionality from the sco scope pe of the project C. Hiring a new Project Manager for the project Issue No: 1
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D. A resource cons constraint traint on one o off the Work Pa Packages ckages
19. There are several management plans, processes, inputs, outputs, tools, and techniques that you need to learn for the PMP exam. According to the PMBOK®, the Project Management Plan is developed by the: A. B. C. D.
Project stakeholders Senior manager Project manager Project Team
20. The Project Scope has been clearly defined, and the Project Team has decided to use the activity list and WBS to estimate the project cost/duration. This approach is called? A. B. C. D.
Bottom-up Estimation Top-down Estimation Analogous Estimation Expert judgment
21. Define Scope Process includes several outputs. Of these, one is considerably more important. According to the PMBOK®, which of the following is the most important output of the Define Scope Process? A. Project Scope Statement B. Project Sc Scope ope Man Management agement Plan C. Work Breakdown Structure D. Formal acceptance 22. Define Scope Process consists of several inputs. This includes Organizational Process assets, Project Charter, and Requirement Documentation. All of the following are the outcomes of Define Scope process EXCEPT: A. B. C. D.
Project Scope Statement Project Document Updates Project Scope Management Pla Plan n updates Scope Baseline
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23. The work package level of the WBS is comprised of a brief description of the scope, defined deliverable, list of associated activities, list of milestones, and other information for that particular component in the WBS. To determine this information you have to look in which of the following documents? A. B. C. D.
Project Charter Scope Statement Project M Management anagement Plan WBS Dictionary
24. A well-developed WBS is a way that the Project Manager can manage projects. It should be completed as early as possible in the project. All of the following make reference to the importance of a well developed WBS EXCEPT: A. A poorly developed WBS may cause defects and/or rework later on in the project life cycle resulting in significant costs. B. Maintaining the scope baseline is essential for managing scope changes on the project. Appropriate scope controls have to be instituted. C. Project Management performed without a good good WBS is akin to taking a random walk hoping to reach the goal D. A detailed project schedule co could uld provide the same level of detail and control, if not more, in lieu of a WBS 25. Collect Requirements is the process of defining and documenting stakeholder’s needs to meet the the project objectives. There are so many techniques/methods used to collect requirements. Unanimity, Majority, Plurality and Dictatorship are all multiple methods used in which of the following techniques? A. Group Creativity Technique Techniques s B. Facilitated Group Decis Decision ion Mak Making ing Techniques C. Workshops D. Focus Groups
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PMBOK® The Project Scope Statement contains the descriptions and needs to be accomplished and delivered. Project Scope Management Plan and Quality Management Plan are planning documents. The Project Charter contains business needs and high level project description, but not deliverable requirements. PMBOK® Answer A is correct, Initiating is sometimes called Concept. Answer B is incorrect because Close Procurements is not a process group. Answer C is incorrect because Scheduling is not a process group. Answer D is incorrect because none of these are part of the Project Management Life Cycle. PMBOK® Answer B, C, and D are incorrect because they are the definitions of other Stakeholder groups. Answer A is the definition of the Project Team Stakeholder group. PMBOK® Project Scope Is defined as the work that needs to be accomplished to deliver a product, service, or result with the specific features and functions. Completion of the Project Scope is measured against the Project Management Plan. Therefore, D is correct. PMBOK® Answer C is correct. Answers A, B, and 0 are incorrect because they are defined by the PMBOK® as Scope Management processes. Scope Reporting is not a Scope Management process. PMBOK® Collect Requirements, Define Scope, Create WBS, Verify Scope and Control Scope are part of Scope Management Processes. PMBOK® If a project is terminated, then Verify Scope will document the extent to which the work has been done, while Close Project/phase assists in archiving the project records along with lessons learned. PMBOK® Answer A is correct. The Project Charter initializes the project with business need; the WBS document contains the decomposed Deliverables from the major project Deliverables; and the Product Scope contains the product analysis and other information. Therefore, B, C, and D are all incorrect. PMBOK® Answer D is correct. In WBS, each package assigned with a unique number numb er is called a ‘Code of Accounts.’ Answers A, B, and C are incorrect. PMBOK® Answer B is correct. Project Performance Baseline integrates Scope, Schedule, and Cost. Therefore, answers A, C, and D are incorrect. PMBOK® Answer A is false, and therefore is the correct answer. A Work Breakdown
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Structure is not a method to build a Project Schedule. Answer B, C, and 0 are PMBOK® The Create WBS is a process of Project Scope Management. In this process, major project deliverables will be subdivided into smaller components for better understanding. Answer B is correct. PMBOK® Scope Baseline especially WBS is an input to so many processes except Develop Schedule. Answer C is the correct answer. PMBOK® Answer D is correct. Lessons Learned are important outputs of projects and can be used for historical data, and to provide assistance for other projects. They are documented by the Project Team. PMBOK® Verify Scope refers to completeness and Perform Quality control refers to correctness. Both will be executed in parallel. The Control Scope talks about managing changes to the Project Scope, and Perform Quality Assurance talks about assuring the quality of the project. Thus, D is the correct answer. PMBOK® Verify Scope process refers to the completeness of the project. At the end of each Projectanswer Phase, conducted. Therefore, B isscope correct.verification tasks must be The only way to respond to the statement is by conducting Scope Definition process early, regularly and rigorously while building in flexibility to accommodate change. All other options (A), (C) and (D) are not correct In general, changing the Project Manager has the least impact on the Scope Change Process. Project Management Plan is developed Project Team PMBOK® Expert judgment, Analogous Estimation, and Top-down Estimation are pretty much the same. These estimations are based on Historical Information. In Bottom-up Estimation, the team makes use of the WBS and activity list to come up with the estimation. Consequently, answer A is correct. PMBOK® An important output of thefrom Define Scope Process Statement. This is directly PMBOK® book. is the Project Scope PMBOK® According to PMBOK® page#49, Scope Baseline is an Output of the Create WBS Process. Thus, answer D is correct. Rest of them are outputs of Define Scope PMBOK® The WBS Dictionary is an Output of the Create WBS process. The WBS Dictionary contains all of the details about a Work Package. Therefore, D is the correct answer. The Project Charter, Scope Statement, and Project Management Plan will not contain all of the details of the Work Package. Therefore, A, B, and C are incorrect. The implication of statement (D) is that a project schedule could be used instead of a WBS. Actually a project schedule should be developed only after a good WBS has been created. Hence the argument is weak. All other options support the claim that a good WBSofis (D) essential. PMBOK®
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Unanimity, Majority, Plurality and Dictatorship are all multiple methods of Group Decision Making Techniques. Therefore, B is correct.
MODULE 4: TIME MANAGEMENT EXAM
1. In a Triple Constraint concept, which of the following statements is correct? A. B. C. D.
Scope, Cost, and Schedu Schedule le all have equal importance Schedule is more important tthan han Cost and Quality Cost is more important than Schedule a and nd Quality Scope is more im important portant than Schedule Schedule and Co Cost st
2. If the Final Testing task takes four days to complete, what day will wi ll the task’s User Acceptance Testing start?
A. B. C. D.
9th day 10th day 5th day 11th day
3. The project is chartered and has been approved by the Project Sponsor. The Project Team is in place and ready to work on this project. As a Project Manager, when will you develop an approximation of the cost of resources needed to complete the project activities? A. B. C. D.
Executing Initiating Planning Monitoring & Controlling
4. Project scheduling techniques are used to determine tasks with the least scheduling flexibility. Which of these techniques focuses on Float to accomplish this task? Issue No: 1
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A. B. C. D.
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CPM PERT GERT Resource Leveling
5. Every project has a set of project management processes in which the result is to ensure the timely completion of the project. Which of the following project management processes includes this activity? A. Project Integration Managem Management ent B. Project Scope Management C. Project Co Communication mmunication Management D. Project Time Ma Management nagement 6. Estimates to complete one of your project activities have been turned into you from experts on your project team. The estimates are as follows: the pessimistic estimate is 126 days, the optimistic estimate is 108 days, and the most likely estimates is 114 days. You can say with 68 percent certainty that the project will finish within which range of dates? A. B. C. D.
112 days to 118 days 111 day days s to 117 day days s 114 days to 116 days 113 day days s to 115 days
7. The Activity List is a comprehensive list that includes all scheduled activities planned to be performed on a project. Which of the following process is the Activity List an output of? A. Define Activities B. Sequence Activities C. Estimate Ac Activity tivity Durations D. Control Schedule 8. In the following network diagram, what is the float for task “C”? “C”?
A. 4 Months Issue No: 1
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B. 2 Months C. 3 Months D. 1 Month
9. Precedence Diagramming Method (PDM) is a method of constructing a Project Schedule Network Diagram. It uses boxes or rectangles as Nodes to represent activities and connects them with arrows to show their dependencies dependencies.. Which of the following statements is FALSE in regards to the PDM? A. B. C. D.
Uses all four (FF,FS,SS,SF) relationship relationships s Uses on only ly Finis Finish-To-Start h-To-Start relations relationship hip Also c called alled Activity-On-Node It is a tool and technique of Seq Sequence uence Activities
10. From the following information, determine the project duration:
A. 13 days B. 14 days days C. 15 D. 16 days 11. You come across many constraints in a project. pr oject. According to PMBOK®, the most important constraint in the Project Management field is the Triple Constraint.’ Which of the following is being referred to as the Triple Constraint?’ Constraint?’ A. B. C. D.
Scope, Time, and Cost Scope, Risk, and Quality Scope, C Cost, ost, and Quality Scope, Cos Cost, t, and Risk
12. You have received estimates for one of your project tasks as follows: Issue No: 1
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The Pessimistic estimate is 32 days, the Optimistic estimate is 18 days, and the Most Likely estimate is 25 days. Using this information, calculate the range of Finish Dates for this task with a certainty of 99.999 percent (6 STD). A. 24 days to 26 days B. 18 day days s to 30 day days s C. 24 days to 28 days D. 11 days to 39 day days s 13. In the environment of completing a project, there are three types of dependencies. Based on these dependencies, scheduled activities will be arranged in the Schedule Network Diagram. In which of the following f ollowing processes will you identify and document these dependencies among scheduled activities? A. B. C. D.
Sequence Activities Define Activities Develop Schedule Estimate Ac Activity tivity Durations
14. A Project is composed of many unknown factors, project budgets, resources, and schedules that are difficult issues to manage. A Project Manager is always trying to maintain a balance between these aspects of the project. These issues are known as: A. B. C. D.
Constraints Milestones Inputs Assumptions
15. Manufacturing a tool depends upon the completion of the tool design; the relationship between the manufacturing of the tool vs. the tool design refers to: A. B. C. D.
Preferred logic Hard logic Discretionary dependency External dependency
16. Using the following network diagram calculate Late Finish for the task “G”? “G”?
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A. B. C. D.
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12th day 13th day 14th day 15th day
17. You have learned that two technical architects have been rolled off another project, and you can use them for your project. However, you don’t need them until next month. If you wait, you may lose them. You have made some changes the Project Management Plan and decided to absorb the to costs for these twotoarchitects into your project. “Allocating scarce resources critical path activities first,” is a method followed in: in: A. B. C. D.
PERT Method Critical Path Method Resource Leveling heuristics Monte C Carlo arlo si simulation mulation
18. One of the following Develop Schedule tools and techniques is used to calculate theoretical early and late start and finish dates for all scheduled activities without regard for resource limitations. This is accomplished by performing a forward and backward pass analysis an alysis through the Project Schedule Network paths. What is this technique t echnique called? A. B. C. D.
Graphical evaluation and rev review iew technique Program evalu evaluation ation and review technique Precedence diagramming technique Critical Pa Path th Metho Method d
19. Gantt Charts/Bar Charts show activity start and end dates, as well as expected durations. These reports are used by the: A. Project Team B. Management Team C. Customer D. End User
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20. Once you have completed the task of arranging scheduled activities in a sequence, the next process is Estimate Activity Ac tivity Resources. In this process, you estimate the type and quantities of resources required to complete scheduled activities. This task uses all of the following EXCEPT
A. B. C. D.
Schedule Baseline Organizational Process Assets Resource Calendars Activity List
21. The Schedule Compression Technique includes Fast Tracking and Crashing. The main purpose of applying the Schedule Compression Technique is to: A. B. C. D.
Shorten the schedule w without ithout increasing the risk Shorten the s schedule chedule b by y changing the Critical Path Shorten the sched schedule ule without increasing the cost Shorten the sche schedule dule without chang changing ing the Scope
22. Activity, ‘U AT AT’,’, has has an early start (ES) of day 6, a late start (LS) of day 10, an early finish (EF) on day 12, and a late finish (LF) on day 16. Based on this information, which of the following statements accurately describes activity ‘UAT’ in the Network Diagram? Diagram? A. B. C. D.
It is a dummy node It is no nott on the Critical Path It is on the Critical Path It has a Float of 4 days
23. Which of the following techniques uses a weighted average duration estimate to calculate Activity Durations? A. B. C. D.
Three-Point Estimate Critical Path Method Precedence Diagramming Technique Graphical eva evaluation luation and rev review iew technique
24. The longest path in the Network Diagram is called the Critical Path. Which of the following statements is FALSE with regards to Critical Path? A. The project can have more than one Critical Path B. Dummy Node ca can n be a part o off the Critical Path C. The project mus mustt have a fixed number of Node Nodes s on the Ne Network twork Issue No: 1
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Diagram D. The project can have a negative float 25. You have received estimates for one of your project tasks as follows: The Pessimistic estimate is 38 days, the Optimistic estimate is 18 days, and the Most Likely estimate is 26 days. What is the task Standard Deviation? De viation? A. A. 2.33 B. B. 3.33 C. C. 1.33 D. D. 9.33
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Answers B, C, and D are incorrect because in the Project Management world, Triple Constraint stands for Scope, Schedule, and Cost. All three are equally important and play a major role in the project’s success. success. Final testing task takes 4 days + Lag 5 days = 9 days. So the next task which is th User Acceptance Testing will start on 10 day. Correct answer is “B” “B” ALL of the planning activities go into the Planning Process Group, and Cost Estimation is also a part of the planning activity. Therefore, answer C is correct. Answer A is correct. The Critical Path Method Is a Project-Scheduling technique that focuses on Float to determine tasks with the Least scheduling flexibility. Answer B is incorrect because PERT focuses on weighted average Duration Estimates. Answer C is not a Scheduling Technique. Answer D is incorrect because this is a technique applied to a Schedule Model that has already been analyzed by the CPM method. The question is from the PMBOK® book and is the definition of Time Management. The correct answer is D. Answer A. First you must determine expected value. That formula is: PERT = O + P + (4 M) /6 = (108 + 126 + (4 x114)) /6=115 Next, you need to determine the standard deviation formula for this question is: (P-O)/6 = (126-108) /6=3 68th percent means I sigma so the range = 115+3 = 112 to 118. Correct answer is ‘A’ ‘A’ The Activity List is an Output of Define Activities. ‘A’ is the correct answer. answer. Critical path is A->B->F-’End A->B->F- ’End = 5+4.4 = 5+4.4 = 13 Float formula = [Critical Path Length] - [Longest Non-Critical Non-Critical Path that has ‘C’ in it = 13-12 13-12 = 1 month. Correct answer is “D” “D” Answers A, C, and D are all true from the PDM perspective, answer B is false. Answer B is correct. S ->A ->C ->H ->end = 3+5+6+2 = 16 S ->’A ->’A->E ->E ->I ->end= 3+4+6+2 = 15 S ->B ->D ->F ->end= 3+5+5÷2 = 15 S ->B->E ->I ->end= 3+4+6+2 = 15 Answer is 16 days. Correct answer is “D” “D” Answer A is correct. Constraints are factors that can Limit the options of the team and need to be identified so they can be evaluated for their impact upon the outcomes of the project. In the Project Management field, the ‘Triple Constraint’ stands for Scope, Time, and Cost. Cost.
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First you must determine Expected Value. That formula is: [Optimistic + (4 x Most Likely) +Pessimistic) /6 The formula for this question is: (32+(4x25)+18)/6=150/6 = 25 Next, you need to determine the Standard Deviation formula for this question which is: (32-18) /6=2.33 => For 6 Standard Deviations it becomes 14. The 99.999 percent confidence level is determined by adding and subtracting two Standard Deviations to the expected value (25 +14). Therefore, the range of dates for this question is 11 days to 39 days. Correct answer is ‘D ‘D’. ’. Sequence Activities is the sub process. It involves identifying and documenting the logical relationships and dependencies among scheduled activities. Answer A is correct. Answer A is correct. Constraints are factors that can limit the options of the team, and need to be identified so they can be evaluated for their impact upon the outcomes of the project. Answer B is incorrect because Milestones are goal related achievements and not applicable to the question. Answer C is incorrect because Inputs are the project-related efforts and contributions that are related to Outputs, Tools, and Techniques. Answer D is incorrect because Assumptions are factors that are considered to be true, real, or certain for purposes of planning. Manufacturing a tool depends upon the design of the tool. Therefore, It is a ‘hard logic’/mandatory dependency. dependency. = 5+4+4 = 13 Critical path is A ->B ->F ->End First you need to calculate the float for task ‘G” 13 -12 =1 Late Finish (LF) = Early Finish (EF) + Task ‘G’ Float Float Float for task ‘G’ = 12 + 1 13th day. Correct answer is “B” “B” Resource Leveling is used to address scheduled activities that need to be performed to meet specified delivery dates. The purpose is to address the situation where shared or critical required resources are only available at certain times or at Limited quantities. The PM uses the Resource Leveling Technique so that he/she can assign or allocate scarce resources to critical path activities first. The Critical Path Method calculates the theoretical early and late start and finishes dates for all scheduled activities without regard for any resource limitations. Answer D is correct. Answers A and B are not a Develop Schedule Technique, and answer B takes the weighted average durations. Gantt Charts/Bar Charts are Develop Schedule Outputs. These charts show detailed about an activity such as start date, end date, and durations.information These reports are used by Project Management/Senior management.
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Answers B, C, and D are all Inputs to the Estimate Activity Resources Process EXCEPT the Schedule Baseline. Answer A is correct. D The Schedule Compression Technique shortens the Project Schedule without changing the Scope of the project. This is the definition of Schedule Compression Technique, and it is taken from PMBOK® page #156. Evidently, answer D is correct. B Nodes on Critical Path will always have zero Float. Float is calculated by using LF-EF or LS-ES LS-ES formula. When you apply this formula, activity ‘UAT’ has a Float (not lag) of 4 days. Therefore, it is not on the Critical Path. Float and Lag are different because Lag is waiting, time. Thus, answer B is correct. A PERT or 3 Point Estimate is the one uses weighted average duration estimate to calculate Activity Durations C ALL of the statements in the answers are true EXCEPT C. There are no
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restrictions on how many Nodes be placed Answer B: Standard Deviation is can calculated as: on a Network Diagram. (Pessimistic - Optimistic)/6
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The formula for this question is: (38-18)/ 6=3.33
MODULE 5: COST MANAGEMENT
1. Continuously improving and detailing a plan as more-detailed and specific information and more accurate estimates become available produces more accurate and complete plans. This results from successive iterations of the planning process. This concept is referred to as: A. B. C. D.
Planning Kaizen approach Progressive Elaboration Continuous improvement
2. In one of the Project Management Process Groups, work will include estimating the cost for scheduled activities and allocating that cost to Work Packages. In which Project Management Process Group will you conduct this activity? A. B. C. D.
Monitor & Control Execution Planning Initiation
3. Nabil, a PMP, has completed five months of his ten-month $450,000 budgeted project. The activities are evenly scheduled at 10% each month. His Earned Value Analysis shows that the PV & EV are $250,000, and AC is $295,000. What is the Variance at Completion value for Nabil’s Nabil’s project? project? A. +$140,000 Issue No: 1
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B. +$45,000 C. -$105,000 D. -$140,000
4. According to Project World Magazine research, most of the BAC will be spent on which of the following Project Management Processes? A. B. C. D.
Closing Executing Planning Monitoring and Controlling
5. In one of the Project Cost Management Processes, you will be analyzing factors that can create cost variances. This will be for the purpose of controlling changes to the project budget. In which Project Cost Management Process will you conduct this activity? A. B. C. D.
Estimate Costs Determine Budget Control Costs Control Schedule
6. A lot of time is spent on Project Planning, and most of the budget and resources are used during Project Execution. The Project Management Executing Process Group includes all of the following EXCEPT A. Report Performance and Verify Scop Scope e B. Acquire Project Team and D Develop evelop Project Team C. Conduct Procurements D. Perform Quality Assurance an and d Distribute In Information formation 7. The cost baseline is an output of Determine Budget process and is utilized as an input to: A. B. C. D.
Estimate Costs Determine Budget Control Cost Schedule Baseline
8. Multi-objective programming, nonlinear, dynamic, integer model, and linear model are examples of:
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A. B. C. D.
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Mathematical Models Benefit measurement method Monte Carlo simulation method Decision model method
9. In WBS, the layer between the Work Package level and the Control Account points is called the: A. B. C. D.
WBS Dictionary Planning Packages Work authorization plans Cost Controls
10. Haider is a Project Manager and has received Duration Estimates from the project team for all of the scheduled activities for the project. Which of the following does the PM need to complete in order to develop the schedule? A. B. C. D.
Schedule Baseline Reserves Recommended Corrective Actions Approved Change Requests
11. Afra is planning a project that requires an investment of $90,000 in today’s dollars at an annual rate of interest of 4.5%; what would be the total value of her investment (Future Value) in four years? A. US $75,230 B. US $75,630 C. US $107,280 D. US $65,900 12. Assad got two job offers, one from Alpha Data Inc., and the other one from DP World. Alpha Data Inc. is offering $90,000/year salary whereas DP World has offered him all the benefits and $95,000/year salary. Based on this information what is Assad’s Assad’s opportunity opportunity cost by not selecting Alpha Data Inc., job? A. B. C. D.
US $95,000 US $5,000 US $185,000 US $90,000
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13. Orange (France Telecom’s Telecom’s)) initial investment to provide a Value Added Service (VAS) is US $300,000. Expected cash inflow is US $25,000 per quarter for each quarter for the first two years, and US $50,000 per quarter from year three. What is the payback period for this project? A. B. C. D.
2 Years 1.5 Years 3 Years 2.5 Years
14. In Project Cost Management, the PM will be working on the activities that will include planning, estimating, budgeting, and controlling costs. One of the tools & techniques of Estimate Costs uses the actual cost of a previous similar project as the basis for estimating the project cost of the current project. Which tool and technique is this? A. Expert judgment B. Bottom-up Estimating C. Parametric Estimating D. Analogous Estimating
15. Your Project Team has completed the cost estimates for scheduled activities using WBS. Next, you will allocate the overall Cost Estimates to individual work activities. This process is called as: A. B. C. D.
Control Costs Determine Budget Resource Planning Estimate Costs
16. Among the following, which one is a time-phased budget that is used as the basis against which you measure, monitor, and control overall cost performance of the project? A. B. C. D.
Cost Baseline Schedule Baseline Project Baseline Scope Baseline
17. Abood, the Project Sponsor, has asked you for a forecast of the likely total cost of the project. This forecast is based on performance to date. Which of the following formulas will you use to provide the information that Abood has requested? A. ETC Issue No: 1
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B. EAC C. VAC D. BAC 18. Performance Measurement is a tool and technique used in the Control Schedule process. Which of the following measurements pertains to schedule? A. B. C. D.
SV and SPI SPI and CPI EAC and SPI SV and CV
19. After a presentation on the status of your project, it is observed that the cost variance and schedule variance are greater than zero. What does this information indicate? A. The project is under budg budget et and behind sched schedule ule B. The project is off the track C. The project is ov over er budget and behind schedu schedule le D. The project is u under nder budget an and d ahead of schedule schedule 20. Your contractor completed re-modeling the basement in your house. You are responsible to pay for the material and labor. The contractor estimated the cost of re-modeling at $30,000. However, when he submitted the bill, it was for $33,000. This $3,000 difference is called: A. B. C. D.
Budget at completion Estimate at completion Variance at c completion ompletion Estimate tto o co complete mplete
21. Diyaa, a PMP, is working for a Microwave Project. She is five months into a ten-month project. EV analysis shows that the schedule performance index is 1.0. The total budget for this project is $250,000, and she has already spent $125,000. According to the Project Management Plan, all the activities are evenly scheduled at 10% each month. Based on this, what is Diyaa’s Diyaa’s variance variance at completion for this project? A. $0 B. +$175,000 C. -$350,000 D. +$350,000 22. Nasser is three months into his ten-month project. His EV analysis shows that he has spent $250,000 thus far. He originally planned to spend $100,000 per month. According to the Project Management Plan, all of the activities are Issue No: 1
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evenly scheduled at 10% each month. The BAC is $1M. Based on this, what is the PV for Nasser’s Nasser’s project? project? A. $300,000 B. $150,000 C. $350,000 D. $1,000,000 23. One of your Project managers in the program is presenting the project progress report. According to that report, the Earned Value (EV) is $8,800, the Actual Cost (AC) is $8,500, and the Planned Value (PV) is $7,000. What is the Cost Variance for the project? A. B. C. D.
$1500 -$300 -$1500 $300
24. Your business analyst just completed the project Earned Value Analysis Report and showed the following diagram to you. Based on the diagram the project is:
A. B. C. D.
Under budget and behin behind d schedule Over budget and ahea ahead d of sch schedule edule Under budget and ahead of schedule Over budget and behind schedule
25. PV = $180,000, AC = $160,000, and EV = $150,000. Based on the information, can you say that resources and time were used efficiently? A. No, because SPI = 0.83 an and d CPI = 0.93 B. Yes, becaus because e SPI = 0.83 and CP CPII = 0.93 Issue No: 1
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C. No, because AC is les less s than PV D. Yes, because EV value is less than PV
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PMBOK® The Kaizen approach is a continuous improvement that is used as best practices in the market, but the correct answer is C because the question is the definition of Progressive Elaboration. PMBOK® All of the planning activities for a project are accomplished in the Planning Process Group. Estimate Costs and Determine Budget are part of the Planning process. Therefore, answer C is correct. BAC=$450,000 EAC= AC/% completed = 295,000/0.50 VAC= BAC-EAC= 450,000-590,000 = -$140,000 PMBOK® Answers A, C, and D are incorrect because in general, most of the project time will be spent on the Planning Process, and most m ost of the project money will be spent on the Executing Process. PMBOK® The question itself is the definition of Control Costs and is taken directly from the PMBOK®. Answer C is correct. PMBOK® Except A everything else takes place in the Executing process group. PMBOK® Cost Baseline is an Output of Determine Budget, and it is an Input to Control Costs. This is directly taken from PMBOK®. Therefore, answer C is correct. PMBOK® Project Selection Methods are Benefit Measurement methods and Mathematical Models. Examples of Mathematical Models are: Multi-objective programming, nonlinear, dynamic, integer model, and linear model. PMBOK® In WBS, the top most Layers are called Control Account points, and the bottom layer is called the Work Package level. In between these two Layers are the Planning Packages. In order to develop a Schedule, the PM must include Reserve time into the
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schedule plan. All of the other items are parts of Control Schedule and occur after Develop Schedule. Answer B is correct. PMBOK® FV = PV(1+i)^n = 90,000 (1+O.045)^4 = 90,000 x 1.192 = $107,280 PMBOK®: Opportunity cost is the total value of the opportunity that was not selected. In this case Alpha Data Inc., salary is US $90,000 by not selecting this job Assad is losing an opportunity cost of $90,000. Correct answer is ‘D ‘D’. ’. PMBOK® Project Selection Methods - One of the models in Benefit Measurement method is Payback period: the length of time it takes the company to recoup the initial cost of producing the product/service of the project. Initial investment = $300,000 Cash inflows = 25,000 4 quarters per year • 2 years = $200,000/year total inflow Year 2 Cash inflows = first quarter $50,000 + 2nd quarter $50,000 total $100,000. All together first two years $200,000 + 2 quarters of year 3. Based on this the payback period is 2 year 2 quarters - 2.5 years. PMBOK® In the Analogous Estimating technique, you use the actual cost of a previous similar project as the basis for estimating the project cost of the current project. Consequently, answer D is correct.
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PMBOK® Allocating overall cost to individual work activities is part of the Determine Budget Process. As a result, answer B is correct. PMBOK® The correct answer is A because Cost Baseline is a time-phased budget that is used as a basis against which to measure, monitor, and control overall cost performance on the project. PMBOK® The forecast of the Likely total costs of the project is the estimate at completion (EAC) formula. EAC= AC/ % complete. PMBOK® SV (Schedule variance) and SPI (Schedule Performance Index) are two performance measurements that are related to variances in the Control Schedule process. The rest of them are not. Therefore, answer A is correct. PMBOK® Answer D is correct. Anything above zero means the project is in good condition. In this scenario, it is ahead of schedule and under budget. In this respect, answers A, B, and C are wrong answers. PMBOK® Variance at completion (VAC) = BAC - EAC = 30,000- 33,000 = -3,000 PMBOK® VAC=BAC-EAC; BAC=350,000; EAC=AC/%complete; EAC=125000/0.50 = 250,000; VAC=250,000 - 250,000 = 0 PMBOK® Planned value is $100,000 per month. He is 3 months into the project so the total PV for 3 months is = 100,000+ 100,000 + 100,000 = $300,000. PMBOK® Cost Variance = EV - AC = $8,800 - $8,500 = $300 PMBOK® The o is on the 3rd Quadrant. In this quadrant X value (Cost Variance) is negative and Y value (Schedule Variance) is negative. That means the Cost
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Variance is over budget, and the negative side for the Schedule Variance is behind schedule.. PMBOK® Based on the facts provided, EV = 150,000, PV = 180,000, AC = 160,000. SPI EV/ PV = 150,000 /180,000= 0.83 and CPI = EV I AC = 150,000 / 160,000= 0.93
MODULE 6: QUALITY MANAGEMENT
1. Which of these is a document established by consensus and approved by a recognized body, and is a preferred approach that later becomes generally accepted as regulations and guidelines? A. B. C. D.
Standard Regulation Rule Project M Management anagement Plan
2. You are a project manager for LightsOn Inc., a field engineering company, which has won bids to add streetlights on city freeways. You have subcontracted procuring the streetlights from another vendor that you have worked with in the past. Based on an independent review, you discover that the process the vendor uses to report theft progress is inefficient. Which of the following is TRUE? A. You conducted the Verify Scope process and have performed an inspection to ensure the streetlights meet your specifications. B. You completed a performance review of the vendor’s work as part of the Report Performance process C. You are in the Perform Quality Assurance process and have performed a quality audit. Issue No: 1
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D. You are in Administer Procurements process and have just completed a contract audit to ensure that the vendor’s performance meets the contract requirements.
3. In which Project Management Process Group do you apply planned and systematic quality activities to ensure that the project deliverables meet relevant quality standards? A. B. C. D.
Monitoring & Controlling Executing Planning Initiation
4. All of the following are FALSE with regards to quality, cost, and risk EXCEPT: A. When quality is improved, productivity is decreased, risk is decreased, and cost effectiveness is increased B. When quality is improved, productivity is decreased, risk is increased, and cost effectiveness is decreased C. When quality is improved, produ productivity ctivity is increased, risk is inc increased, reased, and cost effectiveness is decreased D. When quality is improved, productivity is increased, risk is decreased, and cost effectiveness is increased 5. Who’s responsible for Quality Deliverables in a Project? Project? A. The Project Manager B. The Projec Projectt Manag Management ement Team C. The Project Team D. The Project Sponsor 6. On your projects, you have followed the Plan-Do-Check-Act cycle, which is the basis for the underlying interaction among the project management processes. Which one of the situations below has NOT followed this Plan-DoCheck-Act cycle? A. An Employee Union has called for a strike pending lack of an agreement with your Company on retirement benefits package for the employees. B. You authorize rollback of the emergency software patch that was applied to prevent illegal access to the Company’s Data Store. The T he vulnerability still exists. C. The Electricity Company has an automatic system of disconnection on non-payment of monthly utility bills. Issue No: 1
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D. You and your team attend a presentation by your Senior Management on their new initiative for restructuring the organization. 7. Project Quality Management includes the Plan Quality Process. What does Plan Quality accomplish? A. Identifying and documenting the quality stan standards dards that are relevant to the project B. Setting-up the quality c control ontrol department C. Implementing quality stand standards ards D. Measuring the qu quality ality standards a and nd results 8. The Quality Management Plan is a subsidiary plan of the: A. B. C. D.
Scope Managemen Managementt Plan Quality Management Plan Integration Management Plan Project M Management anagement Plan
9. Armani, a TQM specialist, plans to develop a continuous process improvement plan to ensure the project will continue to reduce defects, and eliminate inefficient and ineffective processes. His efforts will accomplish all of the following EXCEPT: A. Identify the goals of processes used along with the inputs, outputs, and the related data B. A flowchart of the proc processes esses to ena enable ble analysis of its in interactions teractions with other processes C. A method to describe how the project management team will implement the organization’s quality policy policy D. Understand process metrics and targets for improved performance performance 10. You are developing car bumpers for a company using quality metrics based on the 95th percentile on crash worthiness of bumpers. These are tested at impacts that do not exceed 5 mph. You have measures for the last 4 years, and you are trying to derive a metric metr ic for the current year for the new bumper design. This is an example of: A. B. C. D.
Benchmarking Metrics Baseline Reference
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11. The cost associated in conducting quality audits include-training costs, cost associated in implementing quality standards, and cost in implementing quality procedures. These are included in the: A. Cost of quality B. Quality Cost C. Cost o off no nonconformance nconformance D. Project Cost 12. Quality audits are a tool and technique of the Perform Quality Assurance Process. What is the main objective of a Quality audit? A. B. C. D.
To use outputs of quality audit as corrective actions To create a list of items needing to be audited To identify lessons learned that can improve the projec projectt performance To make sure that the project team w will ill follow quality s standards tandards
13. A line graph shows data points plotted in the order in which they occur and also indicates trends, variations, and declines in a process over time. This line graph would be included in which Perform Quality Control tool and technique? A. B. C. D.
Histogram Pareto chart Statistical sampling Run chart
14. The project plan provides a baseline for several things. Which of the following does the project plan not provide a baseline for? A. B. C. D.
Control Scope Cost Schedule
15. NASCAR racing has developed a series of quality checklists for ensuring safety on track. The Pit Manager is reviewing the checklist and has identified issues in the race car tires. In the context of Project Management, the activity that the Pit Manager is conducting is part of: A. Perform Quality Control, by identifying issue issues s in the race car tires that could avert potential dangers to other race car drivers
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B. Direct and Manage Project Execution — doing his duty as a Pit Manager, since NASCAR has instructed him to do so C. Walking through the sa safety fety checklist as mandated by NASCAR D. Perform Quality Assurance to ensure that the car tires worked as designed. Performing audits to uncover issues will provide valuable information. 16. Dalia, a programmer, has published many research papers. Her lifelong dream in this company is to become a technical architect. Management understands the situation, and they have promoted her to PMO director. This is an example of: A. B. C. D.
Management by objec objective tive Halo effect Management by exception Promote Within
17. Quality Cost is the cost of maintaining the same level of quality and preventing quality shortcomings. These costs include all EXCEPT: A. B. C. D.
Risk reduction costs Sunk costs Failure costs Customer satisfaction
18. Variance Analysis is a tool and technique of the Controlling Processes. All the Controlling Processes listed below utilize this tool and technique EXCEPT A. Control Scope B. Control Schedule C. Perform Quality Control D. Control Costs 19. Which of the following f ollowing statements is accurate? A. B. C. D.
Two sigma is equal to 95.99%. Three sigma is equal to 99.73%. Six sigma is equal to 9 99.46%. 9.46%. One sigma is equal to 95.47%.
20. “80% of work is accomplished by 20% of motivated people. This theory can be similarly extended to other areas.” Who is responsible for the 80%/20% theory? Issue No: 1
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A. B. C. D.
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Ishikawa Pareto McGregor Maslow
21. The main objective of implementing and meeting quality requirements is to: A. B. C. D.
Provide quality deliverables w with ith less rework Complete the project on time within the budget and the scope Cut down q quality uality inspection phase Provide quality deliverables with more work
22. Upper Control Limits and Lower Control Limits in Control Charts represent: A. Forecasting the produc productt specification limits B. Specification C. Customer 3 or 6 Sigma s set et by the limits proces process s D. Out of tolerance c control ontrol limits 23. Most of the auto suppliers practice the Just in Time (JIT) Inventory System. Based on JIT, the percentage of inventory that auto suppliers should have available at any given time is: A. B. C. D.
2% - 10% of daily production 16% - 1 19% 9% of daily production 24% - 52% of daily production 15% - 24% of daily production
24. Which of the following is an approved plan for which the work of the project would be measured and compared with the execution of the project, and also include measuring any deviations for management control purposes? A. B. C. D.
A Schedule Baseline A Cost Baseline A Sco Scope pe B Baseline aseline A Performance Measurement Baseline
25. Jamal, the sponsor, has come up with a list of product features required to sustain a strong market presence and maintain the current lead. He wants to study the cost of grouping various combinations of features for the quarterly releases of the product. Which one of the following tools would help him Issue No: 1
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understand the effects on the dependent variable when the independent variable changes? A. Run chart B. Scatter diagram C. Flow chart D. Pie chart
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PMBOK® The question is the definition of ‘Standard’ in the PMBOK® PMBOK® PMBOK® You have performed an independent review as part of quality audit. Quality audit’s aud it’s main purpose is to determine inefficient or ineffective processes and come up with corrective actions for improvements. PMBOK® The question is the Perform Quality Assurance definition. The Perform Quality Assurance Process is under the Executing Process Group. Quality results in several positive aspects in business including Less rework, higher morale, higher productivity, Lower risks, and better cost-effectiveness PMBOK® The Project Manager is responsible for the overall Quality of the Project; whereas, the Project Team is responsible for Quality Deliverables. Answer C is correct. PMBOK® The Plan-Do-Check-Act (PDCA) model closely Links to the PlanningExecution- Monitoring & Control process groups in Project Management. Options (A), (B), and (C) involve the PDCA, while there is none in (D). PMBOK® Identifying and documenting the quality standards that are relevant to the project is the Plan Quality definition. PMBOK® ALL Management Plans are subsidiary plans of the Project Management Managem ent Plan. Therefore, answer D is correct. PMBOK® A is the process boundaries, B is the process configuration, and D is other aspects of the process improvement plan. C refers to quality management plan and is not part of the process improvement plan.
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PMBOK® The objective of Quality audits is to identify inefficient and ineffective policies, processes, and procedures in use on the project. This statement is taken directly from PMBOK®. Answer C is the correct answer.
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PMBOK® The statement is the definition of Run Chart and it is taken directly from the PMBOK®. Answer D is correct. Answer A is correct because Control is not a baseline. B, C, and D describe the project baselines contained within a project plan. PMBOK® Quality audits are a part of the Perform Quality Assurance tools & techniques. Quality audits confirm the implementation of approved change requests, corrective actions, defect repair, and preventive actions and helps in identifying inefficiencies. Answer D is correct. When we consider a person good (or bad) in one category, we are Likely to
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PMBOK® Benchmark is a quality metric that involves comparing actual practices to those of other projects to provide a basis by which to measure performance. PMBOK® ALL costs that were mentioned in the question are a part of the Cost of Quality.
make cost a similar in other categories which call the Halo Effect. Sunk is theevaluation cost you have spent in the past andwe cannot reclaim. PMBOK® Control Scope, Control Schedule, and Control Costs are all Controlling Processes. ALL utilize the Variance Analysis as a tool & technique except Perform Quality Control. C is the correct answer. Three (3) sigma Is equal to 99.73%. PMBOK® Wilfred Pareto came up with the theory that 80% of the wealth is owned by 20% of the people; and by extension this has been applied to other areas as well. PMBOK® The cost of nonconformance is always high. One of the factors of non conformance is rework. This is the main reason you need to implement Quality standards. Answer A is correct. PMBOK® page# 209 section 8.3.2.2 Control Charts areand Perform Controlindic tools and Control Charts the upper lower Quality control Limits ates thetechniques. ‘acceptableInrange of variations’ which also represents 3 or 6 sigma. Answer C is correct. correct. Answer A is correct. JIT means just in time inventory. There is no logic behind this question all you need to do is to pick smallest %. PMBOK® The Schedule Baseline contains schedule information. The Cost Baseline contains cost information, and the Scope Baseline contains Work Package information. Whereas, the Performance Measurement Baseline integrates Scope, Schedule, and Cost parameters of a project, as well as measuring any deviations for management control purposes. Thus, P is the correct answer. PMBOK® Scatter diagram represents the relationship between a dependent and independent variable.
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MODULE 7: HR & COMMUNICATION MANAGEMENT
1. The outcomes of Progress Report, Status Report, Work Breakdown Structure (WBS), and RACI Matrix Chart are frequently used throughout a project. These are examples of: A. B. C. D.
Project Milestones Project Management Tools Work end products Deliverables
2. According to Fredrick Herzberg, people are motivated by factors such as working conditions, salary, promotion, and security. These factors contribute to the satisfaction that people derive from their job performance. This form of job satisfaction can be valuable to a Project Manager as he/she determines how to motivate team members and maximize theft efficiency. What is this theory called? A. Mc Cleland Theory B. Maslow’s Theory Theory C. A. X-YH.Theory D. Hygiene Theory Issue No: 1
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3. Report Performance is one of the Communications Management processes. It includes collecting and distributing performance information such as status reporting, progress measurement, and forecasting. Report Performance is part of which Project Management Process Group? A. B. C. D.
Monitoring & Controlling Process Grou Group p Executing Process Group Planning Process Group Initiating Proc Process ess Group
4. Work Breakdown Structure (WBS) can be considered as a: A. Quality Management tool B. Integration tool C. Risk Management tool D. Communication tool 5. Nader and Nair of Dubai Pumps Inc. are technical specialists for the reverse Osmosis Pump Filter Project. They do not agree on the best type of filter material for their new design. As their Project Manager, you employ the conflict resolution technique that will generate the most lasting solution. What is this technique called? A. B. C. D.
Compromise Smoothing Problem Solving Forcing
6. Due to pressure from fr om stakeholders, the eVision Project Team has decided to execute six of their project work packages simultaneously to recover some time. What is this technique called? A. B. C. D.
Simulation Technique Fast Tracking Expert judgment technique Crashing
7. The Management Connection News Magazine recently published an article stating that “most projects fail because of a lack of communication communicat ion within the Project Team.” Based on this statement, in order to have better communication and avoid in distractions from the Functional Managers, the Project Team must be placed a:
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A. B. C. D.
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Strong Matrix Tight Matrix Weak Matrix Balanced Matrix
8. The Virtual Teams are people with a shared goal who fulfill their roles with little or no time spent meeting face to face. They can be located on-shore, offshore, or near-shore. The Virtual Team is considered to be a tool and technique of the: A. B. C. D.
Develop Human Reso Resource urce Plan Acquire Project Team Develop Project Team Manage Project Team
9. Which of the following Management Plans provides information about the Stakeholder communication requirements, the frequency of communication, and the problem escalation process? A. B. C. D.
Stakeholder Manage Management ment Plan Human Resource Plan Quality Management Plan Communications Management Plan
10. You have been assigned as a Program Manager to manage an offshore voice portal communication project for Nawras, a leading wireless telecom company. You have noticed that there is a lot of communication occurring between the teams in USA, Europe, and Asia. You have been brought in to fix the issue of miscommunications. For the project to succeed, you are most unlikely to ignore the following: A. Develop mutual trust and co-operation between the various teams teams B. Learn to speak 4 different languages w within ithin 2 weeks of your 1st day at work C. Ensure that the team members h have ave sincerity and co compassion mpassion D. Calculate the number o off communications channels using n*(n-1)/2 11. Ten Communication channels already exist in the project. By adding two people to the project, how many more m ore Communication channels will you need? A. 10 B. 21 C. D. 32 11
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12. The Develop Project Team activities include working on improving the skills of team members in order to increase their ability to complete project activities. These activities help to create a cohesive environment where team members can work and trust each other. The Develop Project Team Process belongs to which Project Management Process Group? A. B. C. D.
Monitor & Control Execution Planning Initiation
13. One of your Stakeholders regularly arrives late to the project status meetings and wastes your project team’s time by telling his personal stories. What would you do to alleviate this problem? A. Discuss it with the Project Sponsor and ask for assistance in controlling the situation. B. Change Send a note to the boss o off once the Stakeholder a and nd explain the situation. situation. C. the meeting from a week to every other week so your team does not have to waste time. D. Create new ground rules for the meeting meetings s and ask every member member to adhere to them. 14. Which of the following is an approved integrated scope-schedule-cost plan for the project work? A. B. C. D.
Project Baseline Performance Measurement Baseline Scope-Schedule-Cost Baseline Integration Baseline
15. For better communication and to avoid distractions from the Functional Managers, the Project Team must be placed in a: A. B. C. D.
Weak Matrix Balanced Matrix Tight Matrix Strong Matrix
16. You are involved in your company’s contract contract negotiations. To begin the negotiation meeting, you make a statement, “Hello gentlemen, right now the time 12:15 p.m., and negotiation I would like technique? to wrap this meeting up by 03:00 p.m.” This is an is example of which
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A. B. C. D.
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Avoidance Ultimatum Forcing Deadline
17. Nadine asked her Project Manager to show her a report of the relationship between the project Work Packages. Which of the following reports would the PM present to Nadine? A. B. C. D.
Performance Report Network Diagram Report Bar Chart Report Responsibility Matrix Report
18. Your Project Communications Plan will be presented to your Stakeholders, and you will need to provide information on major deliverable due dates and key external interfaces. Which of the following charts will help you in providing this information? A. B. C. D.
Project Performance Charts Project Milestone Charts Project Gantt Charts Project Bar Charts
19. Among the project constraints, which of the following statements is correct? A. B. C. D.
Cost, Scope, and Sche Schedule dule all have an equal import importance ance Schedule is more important tthan han Cost and Quality Scope is more im important portant than Schedule Schedule and Co Cost st Cost is more important than Schedule a and nd Quality
20. As a project manager you decide to use Project Risk Management techniques for your project. These techniques will be used to develop strategies that will accomplish all of the following EXCEPT: A. B. C. D.
Increase the probability an and d impact of positive events Significantly reduce project risks Provide a rational b basis asis for better decision-making decision-making Remove or e eliminate liminate all p project roject risks
21. The Manage Project Team activities includes tracking team member performance,changes providingthat feedback to Functional Managers, resolving issues, and coordinating enhance project team performance. In which Project Management Process Group do you conduct these activities? Issue No: 1
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The Closing Process Group The Monitoring and Controlling Process Group Group The Exec Executing uting Proces Process s Group The Planning Process Group
22. The project was on time, within budget, and met all of the deliverables defined in the scope statement. The project team is preparing to close the project and is archiving all of the documents. Which one of the following documents is NOT included in the project archives? A. B. C. D.
Procurement documen documentt package Notes tak taken en by the lawy lawyer er Deliverable acceptance document Lessons learned documentation
23. Nabil is the Project Manager for a government project. His team consists of twenty people located building. In regards to decision making, he always consults with his teamininone coming up with a solution. Nabil’s management Nabil’s management style is considered to be: A. Laissez-Faire B. Bureaucratic C. Autocratic D. Democratic 24. You are working in a Weak Matrix Organization. What is the least effective form of communication in this type of organizational structure? A. Formal written communication B. Informal verbal communication C. Frequent phone calls D. Face to face meetings 25. Your business analyst just completed the project Earned Value Analysis Report and showed the following diagram to you. Based on the diagram the project is:
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A. B. C. D.
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Behind schedule Under budget Ahead of s schedule chedule Over budget
PMBOK® Answer D is the correct answer. Answer A is incorrect because not all of these Deliverables are significant enough to be considered Milestones. Answer B is incorrect because this List includes outputs of the Project Management processes, which could Later be used as toots. Answer C is incorrect because this is not a PMBOK® term. Answer P is correct. The ability to get promoted and Learn new skills are both examples of Hygiene factors that contribute to why people are motivated and enjoy their jobs. This theory is called the Hygiene Theory, and is proposed by Fredrick Herzberg. It is described in the Student Class Notebook. PMBOK® The statement is the PMBOK® definition of the Report Performance Process. Report Performance belongs to the Monitoring and Controlling Project Management Process Group. PMBOK® Answer D is correct. A W BS is considered a Communication tool. Answers A, B, and C are all incorrect, since WBS is an input into each of these. Problem Solving is a Conflict Resolution Technique. This technique allows you to resolve the problem for good. It will give the most Lasting solution. PMBOK® The Schedule Compression Technique includes Fast Tracking and Crashing. In order to gain time in Fast Tracking, scheduled activities are performed in parallel. In this question, the stakeholders are concerned with time, but not with cost. Answer B is correct. PMBOK® Tight Matrix/War room is a concept where the project team will be located
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under one roof or one Location. PMBOK® The Virtual Team is a tool and technique of the Acquire Project Team. This is taken directly from the PMBOK®. PMBOK® The Communications Management Plan is a subsidiary plan of the Project Management Plan. It provides information about Stakeholder communication requirements, the problem escalation process, and the frequency of communication. Developing mutual trust and co-operation between the various teams is most important thing for the project to succeed. PMBOK® Communication channels = n* (n-1)/2 = 5*(5.1)/2 = 20/2 = 10. This means that you have 5 people to begin with, and now you are adding two more people which means you have 7(7-1)/2= 7(7-1)/2= 21 channels. The question is “how many more,” so 21 - 10 = 11 more channels is what you need. PMBOK® The statement is the definition of Develop Project Team. The Develop Project Team belongs to the Executing Process Group. PMBOK® Manage Stakeholder Expectations refers to managing communications to satisfy the needs of project Stakeholders and resolve issues with them. The Project Manager controls the project status meetings. He/she is also responsible for the management of the Stakeholder. The correct answer is ‘D.’ ‘D.’ PMBOK® Scope, schedule and cost baseline will be often combined into a Performance Measurement Baseline which is used for earned value measurements The Tight Matrix is also referred to as Co-Location. It means placing the team members under one roof or room. Working in close proximity helps the project members to work as a team, and has a positive impact on communication and productivity. Answers A, B, and D are different types of Matrix Organizations. In a Matrix Organization, the communication is complex and there is already too many distractions. Deadline is a one of the negotiations techniques. It is described in the Student Class Notebook. PMBOK® The Network Diagram Report contains activity date information, Logical interdependencies, and the project critical path. The Performance Report contains project performance information. The Bar Chart report contains activity start and end dates as well as expected durations. And the Responsibility Matrix Report contains roles and responsibility information. Answers A, C, and D Reports do not show the relationship between the project Work Packages. The correct answer is B.
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PMBOK® Among the project Constraints, Scope, Schedule, and Cost all play three equal roles, along with quality, risk and resources PMBOK® Risk cannot be removed or eliminated from the project. By applying risk response techniques you can reduce the Impact of the project risk, i.e. maximize opportunities and minimize threats. The answers A, B and C are all
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Team Process. The Manage Project Team is part of the Executing Process Group. PMBOK® During contract closing, the project team archives all of the documents including the procurement document package, but not notes taken by the lawyer. It is not part of the project documentation. Any outcome of the Lawyer’s discussion/negotiation will be part of the project documents but not the notes Democratic is one of the leadership styles. The description of the question is Democratic Leadership style. It is described in the Student Class Notebook. PMBOK® In a Weak Matrix Organization, the PM reports to more than one Functional Manager. In this scenario, most of the PM’s time will be spent on communicating with the Functional Manager, and receiving their approvals. Therefore, formal written communication is the worst communication that a PM can implement in a Weak Matrix Organization. PMBOK® If the Cost Variance is above 1, that means the project is under budget.
MODULE 8: RISK MANAGEMENT
1. The Identify Risks process activities include determining which risks might affect the project and documenting theft characteristics. The Identify Risks process belongs to: A. B. C. D.
Monitoring & Controlling Process Grou Group p Executing Process Group Planning Process Group Initiating Proc Process ess Group
2. Following statements are all TRUE with regards to Risk EXCEPT A. Project risk is an uncertain event or co condition. ndition. B. It can have p positive ositive or negative impact on the project C. It might iimpact mpact the triple cons constraint traint D. Identifying the risks is an important eve event nt
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3. Toyota is planning to manufacture hybrid fuel hummers for the Department of Defense (DOD). Toyota is hoping that Department of Defense will buy the new hummers. The risk tolerance of DOD not purchasing the machine is 9%. This is called: A. B. C. D.
Utility function Risk control function Selection function Risk function
4. Risk factors are characterized as: A. B. C. D.
Cost, quality and project scop scope e Risk event, probability and amount at stake Risk identification, quantification and control Cost, project s schedule chedule a and nd quality
5. You are a Project Manager for a project using Voice Activated Directory Services (VADS). Your Customer is in another country, and has provided you with a limited travel budget. You identity this risk in your risk register. The critical point during the project is installation and setup that requires a visit to the Customer by a few of the project team members. Given these factors, what would be your best option? A. Develop a mitigation plan for installation and setup given that you have a limited travel budget. B. Develop a cause-and-effect diagram that identifies the risk and shows the cost effect of each choice on the objectives of the project C. Use sensitivity analysis to determine the causal influences of these risks and the time ordering of the events D. Develop an exploitation strateg strategy y and outsource completely to a local party to do the installation 6. Norman, the electrician, and Mervin, the plumber, are working on your project as independent vendors. Mervin has complained that there is some electrical shortage on the top floor water faucets. You are aware that Norman recently completed replacing electrical wiring in that area to comply with fire safety regulations. Your first thought? A. This is a type of residual risk that you had not foreseen. B. The electrical leakage is a secondary risk that has manifested manifested due to putting in new electrical wiring. C. secondary Hiring Norman a primary risk that in turn has caused the risk ofwas an electrical leakage.
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D. The electrical leakage is a primary risk that has been manifested due due to putting in new electrical wiring. 7. Perform Qualitative Risk Analysis process and Perform Quantitative Risk Analysis process are conducted after Identify Risks process. Perform Qualitative and Perform Quantitative Risk Analysis process belongs to: A. B. C. D.
Planning Process Group Monitoring & Controlling Proces Process s Group Executing Process Group Initiating Proc Process ess Group
8. Which of the following statements best describes the relationship between Project Life Cycle and Project Management Process Groups? A. Project Management Process Groups are completely independent of Project Life Cycle phases. B. Project Management Process Groups correspond one to one with Project Life Cycle Phases. C. Project Life Cycle phases can repeat within Project Management Process Groups. D. Project Management Pro Process cess Groups can rep repeat eat within a Project Life Cycle.
9. Which of the following Strategies for Positive Risk may be selected for risks that will modify the “size” of an opportunity by increasing probability and/or positive impacts, and by identifying and maximizing key drivers of these positive-impact risks? A. B. C. D.
Share Exploit Enhance Transfer
10. Etisalat is in the process of submitting a bid to design and build an IBS for Burj Khaleefa. Before submitting the bid, the management of Burj Khaleefa asks you to conduct an Expected Monetary Value analysis for the project. You conduct the analysis and report to the management, stating that the project has a 40% chance of experiencing a $40,000 loss, and 60% chance of making a $60,000 profit. What is the EMV for this project? A. $20,000 loss Issue No: 1
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B. $20,000 profit C. $52,000 loss D. $52,000 profit
11. The Risk Management Plan describes how risk management will be structured and performed on the project. It is a subset of the Project Management Plan. The project team develops the Risk Management Plan during: A. B. C. D.
Monitoring & Controlling Process Grou Group p Executing Process Group Planning Process Group Initiating Proc Process ess Group
12. Which of the following tool & technique of Perform Qualitative Risk Analysis is used to investigate the potential effect on a project objective such as time, cost, scope, or quality? A. Risk probability and impact as assessment sessment B. Sensitivity analysis C. Expected mo monetary netary value analysis D. Monte Carlo data si simulation mulation
13. There are several processes that you need to learn for the PMP exam including the inputs, outputs, tools and techniques. According to PMBOK®, the five Project Management Process Groups are: A. Initiation, Planning, Execution, Monitor, an and d Close Procurements B. Initiation, Planning, Sc Scheduling, heduling, Monitor & Control, and and Closure C. Initiating, Planning, Executing, Monitoring and Controlling, and Closing D. Analysis, Design Design,, Build, Development, and Maintenance Maintenance 14. Al Wasal Club are having their Football championship celebration party. They invite the fans, investors and other celebrities. As a HR director, you must make sure that the party will go smoothly. As a result you hired Dubai Drums to conduct the celebration. You are conducting risk transference that is done in which process? A. Risk Responses B. Plan Risk Analysis Planning C. Identify Risks Issue No: 1
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D. Plan Ris Risk k Ma Management nagement 15. Anonymously soliciting expert opinion is called: A. B. C. D.
Top-down technique Analogous technique Expert Judgment Delphi Technique
16. The following information in the table shows the probability and the expected results. What is the expected monetary value (EMV) of all of the risk events?
A. B. C. D.
-$1,975 +$1,975 -$3,775 +$3,775
17. It is company policy that any project your company executes must provide project documentation at the end of each project. As part of the project documentation, you need to provide the Next Steps. Next Steps not only provide details of the current phase of work completion, but also provide some preliminary description of work to be done in later phases. This is called: A. B. C. D.
Plan ahead Fast-forwarding Think ah ahead ead pla planning nning Rolling Wave Pl Planning anning
18. In what type of organization does the Project Manager maintain moderate to high level authority and autonomy of the project? A. Functional matrix B. Balanced matrix C. Tight matrix D. Projectized organization Issue No: 1
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19. In one of the processes we identify, analyze, and plan for newly arising risks. In this process we also keep track of identified risks, re-analyze risks, and monitor conditions for contingency plans. Which process includes these activities? A. B. C. D.
Plan Risk Managemen Managementt Identify Risks Project Monito Monitoring ring and Control Monitor and Control Ri Risks sks
20. During the Closing process on one of your projects, you are told that there is a regulatory commission’s item that is needed to be implemented before the plant starts producing natural gas. This risk item is considered a part of: A. External category B. Regulatorycategory category C. Technical D. Project M Management anagement category 21. You are working in a Matrix organization. During the Monitoring & Controlling stage of the project an unidentified risk event has occurred. The risk is significant and cannot be ignored. What is your most immediate response before you go to the change control management? A. B. C. D.
Communicate with your senior ma management, nagement, and take actio action n Communicate w with ith your team, and create a workaround Immediately create a planned respons response e to this risk Communicate with y your our stakeholders, a and nd explain the situation
22. _______ is a plan that will assist the project manager if the risk has a high impact or if the selected strategy may not be fully effective. This could include allocating more money or resources. This could also incorporate the development of alternative options and or changing the project scope. A. B. C. D.
Failback plan Scope plan Project M Management anagement Plan Contingency plan
23. You are coordinator assigned to handle the sports search stadium and rescue the Tsunami thatthehas devastated Sri Lanka. A local hasforbeen selected as a staging area. Due to concerns you have about the possibility of Issue No: 1
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post-flooding affecting your staging area, you adopt a risk response technique to minimize this possibility. In doing this you are implementing which of the following risk management strategies? A. B. C. D.
Risk Acceptance Risk Transference Risk Mitigation Monitor and Control Ri Risks sks
24. Determining which risks might affect the project and documenting their characteristics is completed during: A. B. C. D.
Plan Risk Responses Risk Control Plan Ris Risk kM Management anagement Identify Risks
25. of the followingtois aa strategy for positive opportunities where you Which allocate ownership third party who is risk bestorable to capture the opportunity for the benefit of the project? A. B. C. D.
Share Exploit Enhance Transfer
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Group. PMBOK® According to the PMBOK® all the above statements are true except statement (D). Identifying a risk is not an event it is an iterative process, and you need repeat this process throughout your project Life cycle. PMBOK® Another term for Risk Tolerance is Utility Function. According to PMBOK® when you are putting the project plan together you need to include the stakeholders risk tolerance Level into the project plan. Risk control function, Selection function, and Risk function are not PMBOK® terms. Risk is characterized by the event, impact, and probability. You should develop a mitigation plan for installation and setup to reduce the probability and /or impact of this (negative) risk to the project. (D) is incorrect because there is no involvement of your team as required in the question PMBOK Secondary risk arising out of implementing a response to the primary risk (of complying with regulations, in this Therefaucet. is no (C) relationship between the firefire risksafety and electrical shortage riskcase). in a water and (D) are not correct; (A) residual risk is the risk remaining after risk response strategies have been implemented.
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PMBOK® According to PMBOK®, Perform Qualitative Risk Analysis and Perform Quantitative Risk Analysis belong to Planning Process Group. D PMBOK® The Project Management Process Groups should be executed for each Project Life Cycle Phase and/or iteration. Answer A is incorrect because a relationship can exist between the Initiating, Planning, and Closing processes, and traditional Project Life Cycle Phases such as Concept, Analysis, and Closure. Answer B is incorrect because the Project Management Processes are used to manage the progress of the Project Life Cycle, and Project Life Cycle Phases are not normally associated with Controlling and Executing processes. Answer C is incorrect because it is the opposite of the correct choice. C PMBOK® This is the PMBOK® definition of Enhance Risk Response. It is one of the tools and techniques of Plan Risk Responses process. B 40% of $40,000 $16,000 (Loss); 60% of $60,000 = .$36,000(profit) EMV = 36,000- 16,000 = $20,000 profit. C PMBOK® The statement is the PMBOK® definition of the Risk Management Plan. The Risk Management Plan belongs to the Planning Process Group. A PMBOK® In Perform Qualitative Risk Analysis you will analyze identified risk events by prioritizing according to potential effect. Probability and impact assessment is one of the tools and techniques of this process. The others are tools and techniques of Perform Quantitative Risk Analysis process. C PMBOK® Answer C is the correct answer. Answer A is incorrect because Close Procurements is not a process group. Answer B is incorrect because Scheduling is not a process group. Answer 0 is incorrect because none of these are PMBOK® process groups A PMBOK® Plan Risk Responses is the process of developing options, and determining actions to enhance opportunities and reduce threats to the project’s objectives. Risk transference is part of Plan Risk Responses. D PMBOK® Analogous, Top-Down and Delphi techniques are all same the only difference is the risk experts participate in Delphi technique anonymously. A 10% of $5,000 = +$500; 15% of $10,000= -$1,500; 5% of $8,000 = +$400; 25% of-$5,500= -$1,375. EMV=500 -1,500 + 400- 1,375= -$1,975 D PMBOK® Answer 13 is the best answer. Answers A, B, and a nd C are not related to t o this topic at all. D PMBOK® Answer A is incorrect because the Functional Manager plays a major role in this Matrix as compared to the Project Manager. Answer B is incorrect because a Project Manager has a Low to moderate level of authority in these types of organizations. Answer C is incorrect because it is not an organizational structure. D PMBOK® This is the PMBOK (definition of Monitor and Control Risks. A PMBOK® In Risk Breakdown Structure (RBS) risk are categorized into technical, external, organizational, and project management. Regulatory restrictions, market conditions, and weather are all a part of External category. Technical
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and Project Management categories exist in the RBS. Regulatory Category does not exist in the RBS. PMBOK® Recommended corrective actions include contingency plans and workaround plans. If an unidentified risk event occurred in the project the best way to deal at that moment is workaround. Later you need to add this particular risk into risk register and then go through the entire Risk Management Process. PMBOK® This is the PMBOK® definition of Fallback Plan. PMBOK® Risk Acceptance (A) means accepting the risk and not changing the project management plan. Risk Transference (B) requires shifting the negative impact of a threat, along with ownership of the response to a third party. Risk Mitigation (C) implies a reduction in the probability and/or impact of an adverse risk event to an acceptable threshold. Option (D) is not a valid technique. Correct answer is C. PMBOK® This is the PMBOK® definition of Identify Risks process. The Identify Risks process belongs to the Planning Process Group. PMBOK® This is the PMBOK® definition of Share Risk Response. It is one of the tools and techniques of Plan Risk Responses process.
MODULE 9: PROCUREMENT MANAGEMENT
1. The Plan Procurements process activities include identifying project needs that can be best met by purchasing or acquiring products and services outside the project organization. The Plan Procurements process belongs to: A. B. C. D.
Monitoring & Controlling Process Grou Group p Executing Process Group Planning Process Group Initiating Proc Process ess Group
2. What subset of Project Management handles the following: Plan Procurements, Conduct Procurements, Administer Procurements, and Close Procurements?
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Project Quality Management Project Integration Management Project Con Contract tract Ma Management nagement Project Proc Procurement urement Ma Management nagement
3. According to your Project Management Plan, it will take 75 days to complete a project. An air compressor is required to perform some work. If you lease the equipment, it will cost you $55 per day. If you purchase it, the cost will be $2,900 and $100 onetime fee for lifetime warranty. Should you lease the air compressor or buy it? A. B. C. D.
Lease it because it will cost only $55 per day Buy it because you hav have e to pay only $2,900 Lease it becaus because e it would sav save e $2,900 Buy it because it would sav save e $1,125
4. The risk is primarily on the buyer in a: A. B. C. D.
Lump-sum contract Time & Material contract Cost-Reimbursable contract Purchase Order
5. You have signed a Fixed Price with Incentive (FPI) contract with the local government. According to the contract the profit ratio will be 80% to the govt. and 20% to you. The Target Profit is $ 10M, Target Cost is $120M, and Actual Cost of the project is $125M. Based on this information, what is the Resultant Profit for you? A. B. C. D.
S9 M $10 M $15 M $20 M
6. You have signed a Fixed Price with Incentive (FPI) contract with the local government. According to the contract, the profit ratio will be 80% to the govt. and 20% to you. For this contract, the Target Profit is $10M, Target Cost is $120M, and Actual Cost of the project is $125M. Based on this information, what is the Total Amount to be paid to you? A. $120 M B. 5124 M M C. $134 D. $129 M Issue No: 1
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7. You have signed a Cost Plus Incentive Fee (CPIF) contract with the local government. For this contract, the Target Fee is $15 M, Target Cost is $120 M, Minimum Fee is $12M, Maximum Fee is $20M, and Actual Cost of the project is $140M. According to the contract the profit sharing ratio is 80% to the Govt. and 20% to you. Based on this information what is the Resultant Profit for f or you? A. B. C. D.
S10 M S11 M S12 M S13 M
8. You have signed a Cost Plus Incentive Fee (CPIF) contract with the local government. For this contract, the Target Fee is $1 5M, Target Cost is $120M, Minimum Fee is $12M, Maximum Fee is $20M, and Actual Cost of the project pr oject is $90M. According to the contract, the profit sharing ratio is 50% to the Govt. and 50% to you. Based on this information what is the Resultant Profit for you? A. B. C. D.
$15 M $20 M $10 M $5 M
9. Which of the following process prepares the documents that will include documenting the requirements of products, services, results, and identifying potential sellers? A. Plan Procurements B. Conduct Procurements C. Administer Procurements D. Close Procurements 10. Projects may be performed internal or external to the organization. Outputs of a project include unique deliverables, products, services, or results. Performance evaluation documentation must be completed before and after the completion of the project. Who prepares the documentation of the performance evaluation of the vendor? A. B. C. D.
The Project manager The Project team The Buyer The Seller
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11. You are in the process of closing the project and archiving project documents. Results from the procurement audits will be included in the archives. Procurement audits are conducted from: A. B. C. D.
Initiation and Planning through Clo Closure sure Define Scope process throug through h Verify Scope Scope Plan Procurements process through Administer Procureme Procurements nts Plan Procurements process through Close Project or Phase
12. A contract administrator is responsible for all outputs of Administer Procurements. He/she also monitors, and accepts these necessary documents. The contract administrator will also provide: A. B. C. D.
Final payment Team performance reports Lessons learned Work performance information
13. Close Procurements and Administrative Closure are similar. They both require: A. B. C. D.
Contract documentations and closure Procurement audits a and nd c closure losure Contract file and clos closure ure Formal acce acceptance ptance a and nd closure
14. Maurice, a PMP, is being pressured by senior management to get the project back on track because it is 13 days behind schedule. By adding additional resources, you know that you are not likely to gain any significant time. You have explained this to your senior management. The knowledge of this situation is based on: A. Return on investment B. Earned Value Analysis C. The Law of Diminishing Returns D. The Law of Value Anal Analysis ysis 15. Which of the following is a part of an Operation? A. Implementing a new busin business ess procedure or proc process ess B. Providing w water ater supply to a community C. Designing a new transportation vehicle D. Building a drainage system for a community
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16. Dorian is a Project Manager and Demetrio is a Project Sponsor. Both are conferring about the Change Control process during Project Management Plan development sessions. All of the following are effective Change Control activities and techniques EXCEP7’ EXCEP7’ A. B. C. D.
Scheduled meeting Standard reports Lessons Learned Change Control proc procedures edures
17. Who is responsible for providing financial resources to the project? A. B. C. D.
Project Customer Project Sponsor Senior Manager Project Manager
18. Which one of the following is a sub-system of Configuration Management and is a collection of formal documented procedures that define how project deliverables and documentation are controlled, changed, and approved? A. B. C. D.
Change Control System Project Man Management agement Information System Work Authorization System Earned Valu Value e Manage Management ment System
19. As Director of Marketing, you have ordered customized USB memory keys from Shenzen Signal Electronics Co, with the Glo company logo. During verification, your team has identified deficiencies for which the vendor needs to rework. What processes and tools were invoked in the above scenario? A. Plan Procurements to order the USB memory keys, stakeholder analysis to understand your needs and Perform Quality Control to inspect for the defects B. Define Scope to understand y your our needs, Direct and Manage Project Execution to implement the solution and Quality Audits to identify deficiencies C. Collect Requirements to plan scope of work to be performed, Verify Scope to verify work performed and Monitor and Control project work D. Develop Project Management Plan for the work to be performed, Project Procurement Management to procure the USB memory keys and Close Project or Phase
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20. After careful research and evaluation of various options, you have concluded that you will attend Etisalat Academy’s Academy’s PMP Fast-Track Training Camp program. This is a project whose output is a: A. B. C. D.
Service Without a deliverable Product Result
21. During Close Procurements you will conduct all of the following EXCEPT: A. B. C. D.
Completing the contract file Formal acceptance Inspections and audits Lessons learned documentation
22. Procurement Statements of work (SOW) is an output of A. B. C. D.
Plan Procurements Conduct Procurements Administer Procurements Define Scope
23. All are inputs to Administer Procurements EXCEPT A. B. C. D.
Product documentation Contract Work performance information Approved Change requests
24. You’ve just joined a new firm as a PMP. They want your wisdom on how you should be involved during the contracting process. Which of the following statements is MOST accurate? A. During the contracting process, the project manager is typically not involved. B. During the contracting process, the projec projectt manager should try to be involved, if the schedule permits. C. During the contracting process, the project manag manager er provides a clear understanding of project risks to potential contractors. D. During the contracting process, the project manager directly supervises the contracts manager.
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25. In the executing processes of a project the project manager and his team will perform which one of the following activities: A. Manage changes to the project scope, schedule, and cost and update project plan as defined in the change management plan B. Conduct statistical testing, inspection, and use control charts to ensure project deliverables conform to quality standards C. Get final payments and ensure SOX SOX compliance D. Select a vendor according to the procurement plan and organizational policies
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PMBOK® The Plan Procurements process belongs to the Planning Process Group. PMBOK® Project procurement management is the one that deals with Plan Procurements, Conduct Procurements, Administer Procurements, and Close Procurements 75 days * $55/day = $4,125 vs. $2,900+100 = $3000 $4,125- $3,000 = $1,125 saving by buying the equipment PMBOK® In lump-sum contracts, the risk is high on the seller side. Where as in cost reimbursable contracts, buyer bears the risk. Actual Cost of $125M is more than the Target Cost of $120M. Variance = Target Cost ($120M) - Actual ($125M) = -$5M. Per contract, for overrun, the profit share Cost ratio is 80%-20%. So you will receive 20% of (- $5M) -1M. But the Target Profit is $10M. All together the Resultant Profit for you is S10M- $1M = $9M.
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Actual Cost of $125M is more than Target Cost of $120M. Variance = Target Cost ($120M) - Actual Cost ($125M) = -$5M. Per contract, for overrun, the profit share ratio is 80%-20%. Hence you will receive 20% of (- $5M) = -IM. But the Target Profit is $IOM. All together the Resultant Profit for you is $1OM- $1M = $9M. Total Amount to be paid to you is Resultant profit ($9M) + Actual cost of the project ($125M) = $134M
Actual Cost of $140M is more than the Target Cost of $120M. Variance = Target Cost ($120M) - Actual Cost ($140M) =-$20M. For Overrun project the profit share ratio is 80%-20%. 20% of -$20M = -$4M plus the Target Fee of $15M. ALL together the Resultant Profit for you is $15M-$4M = $11M. But $I1M is smaller than the Minimum Fee of $12M. Despite the overrun, you will still end up with a Resultant Profit of $12M. B Actual cost of $90M is Less than Target cost of $120M. Variance = Target Cost ($120M) - Actual Cost ($90M) = $30M. Per contract, the profit share ratio is 50%-50%. Hence, you are supposed to receive 50% of $30M = $1 SM Plus the Target Fee of $1SM. All together the Resultant Profit for you is $15M+$15M = $30M. However, this $30M is more than the Maximum Fee ($20M). So you will end up receiving a Resultant Profit of $20M A PMBOK® This is the PMBOK® definition of Plan Procurements. C PMBOK® The buyer prepares the seller’s performance documentation. It is not a project manager/team or sellers responsibility. This documentation can form basis for early termination of the seller’s contract, or determine how contract penalties, fees, or incentives are administered. (Contract Admin) C PMBOK® Procurement Audit is a tool & technique used in Close Procurements. It is a structured review of the procurement process from the Plan Procurements process through Administer Procurements. A, B, and D are not correct A PMBOK® The contract administrator administers payments but not Lessons learned and project performance reports -that is the project team’s responsibility. Work performance information is about the status of the project activities being performed and is Not contract administrator’s responsibility. responsibility. D Close Procurements and administrative closure both requires formal acceptance by the customer. C The question itself is the definition of the Law of Diminishing Returns. Therefore, answer C is correct. B PMBOK® Providing water supply is a water department’s primary operation. A, C, and P are projects so they are incorrect answers. C PMBOK® Change Control procedures, scheduled meetings, and standard reports, are all part of the Change Control process activities. A Lesson Learned is not a part of the planning activity. B PMBOK® Answer B is correct. The Project Sponsor provides financial resources to the project. Answers A, C, and D are incorrect. B PMBOK® Change control system is a sub system of Configuration Management system B PMBOK®-- Integration, Procurement, Quality, Scope Plan Procurements process is concerned about what project needs can be best met by purchasing or acquiring products, whereas ordering for a product is
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done in Conduct Procurements after signing a contract; hence (A) cannot be the answer. Project is not closed and hence Close Project or Phase process is not a correct choice in (D). Collect requirements creates a requirements management plan, and hence (C) is incorrect. The only choice is (B) D The output of this research project is a ‘result’. ‘result’. C PMBOK® During Close Procurements process except inspections and audits rest of the activities will take place. Inspections and audits is part of Administer Procurements process A PMBOK® According to PMBOK® Procurement Statements Of W Work ork is an output of Plan Procurements. A PMBOK® Except Product Documentation rest of them are all inputs to Administer Procurements process C During the contracting process, the project manager act as a facilitator D PMBOK® Rationale: A is Perform Integrated Change Control, B is Perform Quality Control, C is Close Project or Phase. D is Conduct Procurements, which is an execution process.
MODULE 10: FINAL EXAM
1. The Scope Statement provides a foundation of information to begin the project, and gives the team an idea of what is to be accomplished. This statement is one of three important documents in Project Management. Which of the statements below is NOT TRUE about the Scope Statement document? A. The Scope Statement provides a documented basis for preparing the WorkScope Breakdown Structure (WBS). by Fun B. The Statement is developed Functional ctional Managers during the concept stage of a project.
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C. The Scope Statemen Statementt does include a desc description ription of project objectives such as Cost, Schedule, and Quality measures. D. The Scope Statement is the basis for the contract between the buyer buyer and seller. 2. If your Project Manager submitted an EV report to you with the following information, what does this possibly not tell you about the project? EV = $200,000, SPI = 1.0, CV = 0: A. B. C. D.
BAC = 200,000 VAC=0.0 CPI=1.0 SV 0.0
3. Syed has successfully completed his PMP exam. He will now adhere specifically to all of the PMI standards. Which one of the following statements is FALSE regarding how Syed will approach the project management processes as a certified PMP®? A. Syed will insist that all the projects he works will have a Project Charter exactly as specified in PMBOK® B. Syed will provide accu accurate rate and truthful representations regarding his qualifications to the company when applying for new opportunities. C. Syed recognizes that he should keep sensitive sensitive corporate information confidential. D. Syed will satisfy the scope and objectives in all of the professional services in which he is involved. 4. According to PMBOK® guide, the Project Integration Management knowledge area consists of: A. A. Develop Project Chart Charter, er, Develop Project M Management anagement Plan, Direct and Manage Project Execution, Monitor and Control Project Work, Perform Integrated Change Control, and Close Project or Phase B. B. Develop Project Charter, Identify Stakeholders, Develop Project Management Plan, Direct arid Manage Project Execution, Monitor and Control Project Work, Perform Integrated Change Control, and Close Project or Phase C. C. Develop Project Charter, Dev Develop elop Scope Management Plan, Direct Direct and Manage Project Execution, Monitor and Control Project Work, and Perform Integrated Change Control D. D. Develop Project Management Plan, Direct and Manage Project Execution, Monitor and Control Project Work, Perform Integrated Change Control, &id Close Project or Phase
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5. One of the techniques used in proposal evaluation are called ‘seller ratings’. As a procurement manager you are reviewing seller ratings for all your vendors. You determine that the stakeholders are giving out contracts without checking the seller/vendor’s seller/vendor’s ratings. Proposal Evaluation is a tool & technique of: A. Administer Procurements B. Conduct Procurements C. Plan Procurements D. Close Procurements 6. The ratio of “remaining work” to the “funds remaining” is called: called: A. EV A. TCPI B. B. EAC ETC 7. Which of the following documents provides the basis for future project decisions and is also used to develop a common understanding of the Project Scope among Stakeholders? A. B. C. D.
Project Charter Project Scope Statement WBS Document Product Scope Document
8. The Monitoring and Controlling Process Group consists of those processes required to track, review, and regulate the progress and performance of the project. Following are all part of Monitoring and Controlling Process Group activities EXCEPT: A. Coordinating people and resources, as well as integrating and performing the activities of the project in accordance with the project management plan B. Controlling changes and recommending preventive action in anticipation of possible problems C. Monitoring tthe he ongoing project activities against the project management plan and the project performance baselines D. Influencing the factors that could circumvent integrated change control so only approved changes are implemented
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9. The processes that are used to acquire products, services or results, and conduct contract management processes is which of these? A. B. C. D.
Integration management Contract management Procurement management Project management
10. Ben & Jerry are from UPS, and both are PMPs. They have completed the RFP documents and are on their way to the bidder’s conference. Bidder’s Bidder’s conference will take place during: A. B. C. D.
Conduct Procurements Plan Procurements Administer Procurements Close Procurements
11. Mr. Asco Beans, a PMP, has all of the following powers derived from his position as the Project Manager of the Stem Cell project EXCEPT: A. B. C. D.
Expert Penalty Reward Formal
12. Which of the following f ollowing example is not a cost of nonconformance nonconformance? ? A. Quality training B. Rework C. Warranty costs D. Scrap 13. During the Close Project or Phase process, you and your team are documenting and archiving project related information. Your organization will be able to utilize this information for future projects in all areas EXCEPT A. B. C. D.
Project duration estimations Resolving team conflicts Administer Procurements Resource allocation
14. Kristy, a project manager, has traveled outside the US for the first time for a new the Middle East.people After three weeks, KristyShe is uneasy withlikely the habitsproject and in customs of the of the country. is most experiencing:
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A. B. C. D.
Time disorientation Discomfort from a ch change ange in food habits and the w weather eather Homesickness Culture shock
15. The team has decided to for this project. You and your have informed the team that getting your approval. At this called: A. B. C. D.
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execute work packages in the fast-track method sponsor are concerned about this approach and they will execute each work package only after meeting, you have put in place a system that is
Resource Assignmen Assignmentt System Change Control System Work Break Breakdown down Struc Structure ture System Work Authorization System
16. A structure is used to provide and organize a representation of the project. It allows the Work Packages to be arranged to the performing organizational units. Which of the following f ollowing structures accomplishes this? A. B. C. D.
Organizational Breakdow Breakdown n Structure (OBS) Linear R Responsibility esponsibility Chart (LRC) Work Break Breakdown down Struc Structure ture (WBS) Risk Brea Breakdown kdown Structure (RBS)
17. Manage Stakeholder Expectations Process includes managing communication needs of stakeholders, resolving issues, and providing information in a timely manner. Which Project Management Process Group does the Manage Stakeholder Expectations process belong to? A. Monitoring & Controlling Process Group B. Executing Process Group C. Planning Process Group D. Initiating Process Group 18. In order to be successful, every project must implement Reward and Recognition procedures. These are based on activities and performance that are under a person’s control. This is part of the Planning Process Group, but it is awarded as part of the: A. Acquire Project B. Develop HumanTeam Resource Plan C. Manage Project Team
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D. Develop Project Team 19. For internal projects, who provides Statement of Work (SOW)? A. Customer B. Project Manager C. Senior Manager D. Project Initiator 20. The Project Scope Management Plan manages all of the following EXCEFT A. Resource requirement updates updates B. Process of verifying scope C. Process of controlling scope D. Process to develop Work Breakdown Structure 21. Detroit Tigers management decided to terminate the ABC Construction manager and his team from their new sports arena- building project. They hired you as a PM for the project and modified the Project Charter to reflect this change. The new team is from the Hardley Construction Inc. The first task you have is to: A. Meet with the Hardley Construction Inc. team to facilitate a new Communication Plan B. Negotiate a new lower price to de demonstrate monstrate your au authority thority C. Meet with them to discuss a new management plan and update Ris Risk k Management Plan D. Meet with Hardley Construction Inc. team to formally let them know that you are the new authorized PM for this project 22. You have signed a Fixed Price with Incentive (FPI) contract with the local government. According to the contract, the profit sharing ratio is 50% to the Govt. and 50% to you if the project is completed under budget. The Target Profit is $1OM, Target Cost is $120M, and Actual Cost of the project is $11OM. Based on this information what is the Resultant Profit for you? A. B. C. D.
$20M $15M $10M $5M
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23. The Issues log, or action-item log is a tool & technique used to document and monitor the resolution of issues. According to PMBOK®, the Issue log is a tool & technique of: A. B. C. D.
Manage Stakeholder E Expectations xpectations Monitoring and Controlling Process Grou Group p Manage Project Team Distribute Information
24. According to the Theory of Needs, what motivates people is: achievement need, authority need, and affiliation need. Who proposed the Theory of Needs? A. B. C. D.
Douglas McGregor William Ouchi David McClelland Fredrick Herzberg
25. Will Smith, a PMP, is working in a Functional Organization and he is three weeks away from closing the project. You as a head of the organization, have found out that one of your employees does not have the skills necessary for the project. This employee may be required to undergo skills enhancement as he is a high performer. Will Smith does not want to lose him. In this scenario, who is responsible for ensuring that this employee will be trained? A. B. C. D.
Project Manager Project Stakeholder Project Sponsor Functional Manager
26. Projects are a means of organizing activities that cannot be addressed within the organization’s normal operation limit. That is the reason organizations use ‘projects’ as a means of achieving strategic goal. Which of the following is a strategic consideration to authorize a project? A. To improve the quality of life for the local tribal community, the United Nations authorizes a project arid allocates money to maintain roads and housing in the tribal community B. Detroit Energy authoriz authorizes es to build a new sub-station to s serve erve a new IT Technological Park C. An Electric Utility authorizes their customer department to reduce customer complaint responses from 36 hours to 24 hours D. ‘Down Fall’ Consulting authorizes their employees to start using a new and refined expense report system to enter their expense reports
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27. The Project Schedule’ is an Output of Develop Schedule and is utilized as an Input to: A. Estimate Activity Resources Resources B. Control Schedule C. Estimate Activity Durations D. Sequence Activities 28. As a certified PMP® Project Manager, in regards to dealing with violations of code of conduct you should: A. Ensure you have a clear and factual basis for a violation of the code of conduct before reporting it B. Report only v violations iolations of PMP® from your local chapter C. Do not report any violations unless they specifically affect your projects D. Report a violation of the code o off conduct as soon as you get a hint of of it 29. A clear distinction between the Project Management Plan Baseline and the Project Performance Baseline is: A. A. Both the Project Management Plan Baseline and the Project Performance Baseline do not change throughout the process. B. B. The Project Manag Management ement Plan an and d Project Performance Baselines both change intermittently as more information is available about the project. C. C. The Project Management Pla Plan n Baseline changes as more information becomes available about the project; whereas, the Project Performance baseline stays constant. D. D. The Project Manageme Management nt Plan Baseline changes as more information is available about the project; whereas, the Project Performance baseline will only change in response to an approved scope of work change. 30. Process Improvement Plan, Quality Metrics, Quality Checklists, and Quality Management Plan are all outputs of: A. B. C. D.
Plan Quality Perform Quality Assurance Perform Quality Control Integration Management
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31. Which of these documents established by consensus and approved by a recognized body is a preferred approach, that later becomes generally accepted as if it were a regulation? A. B. C. D.
Portfolio Management A Regulation A Project plan A Standard
32. Schedule Duration Estimations for the project activities can be reduced in many ways. This reduction may have a positive impact on your project time line. As a result, this can save money on the project. Ways to reduce the duration of activities include all of the following EXCEPT: A. Fast Tracking the sched schedule ule B. Crashing the schedule C. Re-Baseline D. Scope Reduction 33. Asians usually perform more than one task at a given time as compared to Europeans and Americans. This approach to time is called: A. B. C. D.
Polychronic Polyclinic Monochronic Ethnocentric
34. The Project Expeditor is considered to be a title for the Project Manager in which of the following Organizational Structures? A. B. C. D.
Projectized Strong Matrix Functional Tight Matrix
35. Tracking the weekly software development project’s rate of defects is done to assure that it conforms to the organization’s requirements for quality standards. Which tool would you be most likely to use? A. Control Charts B. Defect tracking tools C. Fishbone charts D. Defect reports
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36. Which of the following is not an interpersonal skill? A. B. C. D.
Leadership Motivation Collaborating Negotiation and conflict management management
37. The longest path in the Network Diagram is called the Critical Path. Which of the following statements is TRUE with regards to Critical Path? A. The project can have o only nly one Critical Path B. Dummy Node ca can n be part of the Critical Path direction C. The project must have a fixed number of Nodes on the Network Diagram D. The project will ne never ver have a neg negative ative float 38. The Schedule Compression Technique includes Fast Tracking and Crashing. This technique helps in shortening the Project Schedule by changing all of the items shown below EXCEPT A. B. C. D.
Increased Risk Project Scope Project Schedule Project Cost
39. Applying planned quality activities to ensure that the project uses all processes required to meet the project requirements is completed during: A. B. C. D.
Plan Quality Perform Quality Control Perform Qu Quality ality Assurance Perform Quality Management plan
40. The “good & bad” activities/processes, post-mortem, post -mortem, or blame storming are terminologies used for: A. Project Log Register B. Project Records C. Historical Information D. Lessons Learned 41. You are a Project Manager and one of your core team members has been consistently late for team meetings; this is creating a negative response from
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other team members. This individual works for the company that is the joint venture partner on the overall program. You decide to resolve this problem directly with the team member. This is best initiated with: A. B. C. D.
Formal verbal communica communication tion Formal written communication Informal v verbal erbal c communication ommunication Informal w written ritten co communication mmunication
42. According to PMBOK®, Perform Quality Control can be defined as: A. Monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes to eliminate causes of unsatisfactory results. B. Identifying the quality standards that are relev relevant ant to the project arid determining how to satisfy them. C. Making sure that all the planned and systematic activities are implemented within the quality system to provide confidence that the project results will satisfy the relevant quality standards. D. Addressing both the management of the project and the product of the project in terms of quality standards. 43. The Project Quality Management Processes include all of the activities of the performing organization. The organization determines policies, objectives, and responsibilities. All of the following processes are a part of the Project Quality Management EXCEPT’ EXCEPT’ A. B. C. D.
Perform Quality Control Overall Change Control Plan Quality Perform Qu Quality ality Assurance
44. Repunzel is giving her catering project to her friend Linda at Unique Foods Inc. Although the contract has not yet been finalized, Unique Foods has appointed Linda as the project manager and is preparing to proceed with staffing. Unique Foods has asked Linda to start planning the project. What should be Linda’s next response? response? A. Tell the Unique Food Inc. management that she will start working after she receives a letter of intent from Repunzel B. Schedule a meeti meeting ng with Repunzel, and go ov over er project deliverables C. Listen to the Unique Food Inc. manage management, ment, and start working on the Project Management Plan D. Start interviewing the candidates for the team, and do not offer job yet
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45. Lobster Inc. is planning to lay an undersea data cable between Europe and the Americas. Your company is going to be performing this project. As a seller you are going to include all the costs incurred on the project and a $3000 profit for services performed. What type of contract would you be signing? A. B. C. D.
CPFF, which carries the greates greatestt risk to the seller Firm Fixed Price, w which hich carries the gre greatest atest risk to seller Fixed plus incentive, whic which h carries the greatest risk to the buyer buyer CPFF, which ca carries rries the greatest risk to the buy buyer er
46. Due to unsatisfactory results from work performance on the current project, the Project Manager is deciding on the best strategy for assigning future tasks to team members. His new strategy will now help to guarantee the success of the project. Which of the following is the most appropriate strategy for staffing the project and assigning tasks? A. Assign tasks to team me members mbers before discuss discussing ing it with them. B. Terminate any employees who are unwilling to work more than ten hours a day. C. Assign tasks to only one individual whenever possible, so as to promote ownership and accountability. D. Assign multiple resources to tasks to ensure that backups are available in case of illnesses or other absence. 47. Which one of the following is a tool and technique used systematically to gather and analyze quantitative and qualitative information to determine whose interests should be taken into account throughout the project? A. B. C. D.
Expert Judgment Stakeholder Analysis Stakeholder Management Strategy Stakeholder Register
48. You are a Project Manager for a Low Income Group Housing (LIGH) project and are formalizing a final acceptance to close the project. Which of the following is most important in formalizing a final acceptance to close the project? A. B. C. D.
Verify Scope and WBS Close Project or Phase and Perform Quality Control Verify Scope and Close Project or P Phase hase Perform Quality Control and V Verify erify Scope
49. Jones calls you up at 7:30 pm and lets you know that she is stuck at Chicago O’Hare airport due to the blizzard of the century. She is to meet with
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Jinxton Associates at 8:00 am the next day to sign a $20M contract, and is not sure that she will be able to make it. She asks for your suggestions. What W hat could be your immediate response? A. You panic since it is very important for you to get the huge contract, since you have worked on it for f or many months. B. You suggest that she explore alternatives in re reaching aching the client, while ensuring her own safety first. There is no guarantee she can even get out of the airport. C. You contemplate suing the meteorological department for not providing an accurate weather forecast, as this could potentially result in your losing $20 MM project D. Advise her to resolve the issue by calling Jinxton Associates to let them know her situation and prepare them to possibly postpone or re-schedule the meeting in case she cannot make it. 50. In order to make a change in the project scope, you must go through the Change Control process. You have made a change request and just received an approval for these changes. The first baseline document you have to update is: A. Scope baseline B. Schedule baseline C. Quality baseline D. Scope statement 51. Organizations use programs and projects to further their strategic goals. Strategic goals are defined as anything planned for the long term growth of the organization. Who typically would be responsible for an organization’s strategic goal? A. B. C. D.
Program Team Project Manager Portfolio Manager Project Management
52. You are busy shopping for the holiday season at Wal-Mart and notice that there are long lines of Customers waiting to checkout theft shopping carts. You suggest the duty manager to open up another checkout counter. What would be the most appropriate action for the duty manager to initiate? A. Preventive action, by opening another checkout counter, to prevent backups B. Assist you to checkout, so that you don’t need to be in tthe he checkout line C. Study why there is such a backup, and then prevent defects in the checkout process
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D. Corrective action, by opening another checkout counter to speed up the process 53. Tinker Bell, PMP the recruiting manager for your project has recommended you to hire one of his project managers Rich Springfield for your project. After hiring Rich on his recommendation you learn that Rich does not have the qualifications that Tinker Bell had indicated in his recommendation. As a certified PMP you should first: A. Remove Rich Springfield from the projec projectt B. Request Tinker B Bell ell to recommend another PM for the projec projectt C. Report to PMI® that Tinker Bell has provided inaccurate and false information D. Remove Tinker Bell from recruiting position 54. The difference between Project Scope and Project Objectives? A. Scope refers to the amount of effort to complete a project; Objectives refer to a detailed description of the expected or desired outcome of the project. B. Scope refers to detailed description of the expected or desired outcome of the project; Objectives refer to the amount of effort to complete a project. C. Scope refers to how to accomplish the project work with desired outcomes; Objectives refers to what is to be accomplished. D. Scope and Objectives are both the sa same me because Project Objectives and goals are accomplished through the Project Scope. 55. There are distinct differences between Project Life Cycles and Project Phases. Which of the following statements describes the relationship between Project Phases and Project Life Cycles? A. A Project Phase can contain one or more repetitions of the Project Life Cycle. B. Collectively, the Projec Projectt Phases are k known nown as the Project Life Cycle C. The Project Life Cycle is know known n as the sequence of project activities; whereas, Project Phases are defined to control the overlapping activities. D. The Project Life Cycle contains the repetitive, incremental elements inside a Project Phase.
56. RelianceAuto.com is in the process of submitting a bid to design and build electric motor scooter for HondaScooter Inc. Before submitting the bid, the management of RelianceAuto asks you to conduct an Expected Monetary
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Value analysis for the project. You conduct the analysis and report to the management, stating that the project has a 40% chance of experiencing a $40,000 loss, and 60% chance of making a $60,000 profit. What is the EMV for this project? A. B. C. D.
$20,000 loss $20,000 profit $52,000 loss $52,000 profit
57. During the past three years there have been numerous changes made to the financial reporting requirements set forth by the Securities and Exchange Commission, an external government agency. In order to plan appropriately for the project you will first refer to: A. Enterprise Environmental Fac Factors tors B. Project scope statement C. Project charter D. Organizational Process Assets 58. Anonymously soliciting expert opinion is called: A. B. C. D.
Top-down technique Analogous technique Expert Judgment Delphi Technique
59. Perform Integrated Change Control process includes all of the following EXCEPT’. EXCEPT’. A. Control Scope, Control Cost, Control Schedule, Perform Quality Control and Monitor and Control Risks B. Monitoring project work and collecting Work Performance In Information formation C. Controlling and updating the scope, cost, budget, schedule and quality requirements based upon approved changes, by coordinating changes across the entire project. D. Maintaining the integrity of baselines by releasing only approved changes for incorporation into project products or services, and maintaining their related configuration and planning documentation 60. The behavior of individuals is often determined by their culture, language and beliefs. beliefs. Individuals will evaluate a foreigner’s behavior by the standards of their own culture, which they often believe is superior to the others. When you are doing this, you are demonstrating:
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A. B. C. D.
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Ethnocentrism Cultural diversity Dominant characteristics Valuing other c culture ulture
61. The Procurement Statement of Work (SOW) describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the products, and services. Procurement Statement of Work is an output of Plan Procurements and is used as an input to: A. B. C. D.
Conduct Procurements Close Procurements Plan Procurements Administer Procurements
62. Project managers are aware that one of the keys to success is to-plan ahead. This planning would be part of the Project Management Planning and its Execution. The performance of the process included in the Project Management Plan and its team would include all of the following actions EXCEPT for: A. Composing of one or more s subsidiary ubsidiary plans and other components components B. Defining how the project is executed, monitored, controlled, and closed C. Updating and revising through the Perform Integrated Change Control process D. Checking to see that the content in the proje project ct plan is least impacted by the application area and the complexity of the Project 63. Conducting performance measurements for a project will include the monitoring of the performance of the seller. It also includes the follow-up to see that the contractual requirements were met. This performance measurement will be conducted during: A. B. C. D.
Conduct Procurements Plan Procurements Close Procurements Administer Procurements
64. One of the inputs to the Project Plan execution involves everything that is done to bring the project back inline. This input completes the feedback loop and is known as the: A. Change Control
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B. Communication Plan C. Status Report D. Corrective Action 65. Richie Rich, a PMP, is a Project Manager for a multi-million dollar project. According to the company’s proprietary project management methodology, Richie Rich needs to submit a set of deliverables at each phase exit. He has completed three phases, and is getting into the next phase. Which of the following Project Management Process Group formally authorizes the project to continue into the next phase? A. B. C. D.
Planning Process Initiating Process Project Cl Close ose Process Define Sc Scope ope proc process ess
66. Even though a deliverable was missed on the project it is still running on schedule and within the budget. The management team discovered that one of the work packages has 32% additional buffer time built into the work package. As a project manager, after obtaining this information, your most immediate action would be to: A. Perform quality audits and re-baseline th the e schedule B. Set-up a meeting with the team members to discuss about the changes to the schedule baseline C. Request the team to follow quality standards and guidelines that were set-up in the planning stage of the project D. Identify who established the estimate for this package and release the team member
67. The Project Team and Project Manager communicate through: A. B. C. D.
Formal and informal written communic communications ations Formal w written ritten status reports Formal and informal w written ritten and verbal com communications munications Phone conv conversations ersations and team meeting meetings s
8. Johnson, a PMP, is working as a Project Manager in a Projectized organization. He has recently replaced the Project Manager for a development project. He has been tied up with many change requests from the customer. When making changes, who is normally responsible for formally reviewing and approving changes in the project?
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A. B. C. D.
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The Sponsor The Project Manager The Chang Change e Control Board The Project Client
69. Ordonez, a PMP, is giving his marketing presentation to the VP. In his presentation, Ordonez is using slides that you have developed, but makes no reference to your work. Ordonez is violating which part of the code of conduct: A. B. C. D.
Responsibility to dissemin disseminate ate PMI® Code of Conduct Conduct Reporting factual vio violations lations to PMI® Providing acc accurate urate and truthful information Responsibility to recognize and respect the intellectual property of others
70. As a result of executing the work packages for the project all the following will be outcomes of that t hat process EXCEPT: A. B. C. D.
Deliverables Project Forecasts Work Performance Information Project Manag Management ement Pla Plan n Updates
71. In order to develop a methodical and logical view of the information needed by various Stakeholders, you must analyze the needs and expectations of the Stakeholders. This will be accomplished by conducting: A. Plan Communications B. Project requirement analysis C. Manage Stakeholder Expectations D. Client req requirement uirement analysis 72. The Executing Process Group consists of the processes used to complete the work defined in the project management plan to accomplish the project’s requirements. All of the following are inputs to Direct and Manage Project Execution process EXCEPT A. B. C. D.
Project Management Pla Plan n Approved Change Requests Team Per Performance formance Assessment Enterprise E Environmental nvironmental Factors
73. Scoring models, comparative approaches, and economic models are all examples of:
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A. B. C. D.
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Monte Carlo Simulation method Constrained optimization method Benefit M Measurement easurement method Decision model method
74. A process is used to identify, analyze, and plan for newly identified risks. This process also will re-analyze those risks and monitor conditions for contingency plans. It will also review the execution of risk responses while evaluating their effectiveness. This process is called: A. B. C. D.
Plan Risk Responses Monitor a and nd C Control ontrol Ri Risks sks Plan Ris Risk kM Management anagement Identify Risks
75. Process of obtaining seller responses, selecting sellers by using Screening System, Weighting System and awarding contract are all part of A. B. C. D.
Conduct Procurements Plan Procurements Contract Management Administer Procurements
76. The following statements are all FALSE with regards to the characteristics of a deliverable EXCEPT A. They represent an increas increase e or a reduction in the scope of the project B. They correct current performance to be in line w with ith expected future performance C. They are typically distributed to te team am members as actionable items D. They are unique and verifiable and are documented in a project management information system 77. Which one of the following actions would be considered unethical according to the PMI® code of conduct? A. Providing accurate and truthful in information formation to the vendors B. Ensuring that your personal interest does not interfere with the decisions you make C. Accepting gifts and expensive lunch invitations from a contractor on your project D. Keeping sens sensitive itive company information confidenti confidential al
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78. Aaron is planning planning to invest US $35,000 in today’s dollars at an annual rate of interest of 6%; what would be the total value of his investment (Future Value) in six years? A. B. C. D.
-$24,647 -$23,647 +$43,648 +$49,648
79. The Geek Squad team from your organization submitted a proposal for brand new refrigerators. The team was hired to determine an economical way to produce this product line while containing the cost and maintaining the quality. Unfortunately, the project murder board has written off the project citing lack of profit margin. At the end of this t his effort, you will report on: A. Return on investment B. Earned value analysis C. The Law of Diminishing Returns D. Value analysis 80. The Project Sponsor approved and agreed to begin the second phase of your project, even though the first phase of the project is not completed. This practice of overlapping phases is known as: A. B. C. D.
Fast Tracking Project Management Progressive Elaboration Portfolio Management
81. The project was on time, within budget, and met all of the deliverables in the scope statement. The project team is getting ready to Close Project or Phase and is archiving all of the documents. Which one of the following documents is NOT included in project archives? A. B. C. D.
Procurement documen documentt package Team Performance reports Deliverable acceptance document Lessons learned documentation
82. Part of Executing Process Group involves coordinating people and resources in accordance with the project management plan. All of the following activities would be conducted as part of executing processes of a project EXCEPT
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A. Improving the performance and interaction of team members to enhance project performance B. Making project related information av available ailable to project stakeholders in a timely manner C. Controlling changes and recommending preventive actions in anticipation of potential problems D. Reviewing offers from the sellers, selecting a seller, and negotiating a written contract with the seller 83. You have been waiting for the Change Control Board (CCB) to approve a change request. Finally, they have approved the request. The very next step is to: A. B. C. D.
Make necessary c changes hanges to Schedule B Baseline aseline Make neces necessary sary chang changes es to Cost Baseline Make necessary changes to Projec Projectt Plan Baseline Make necessary changes to Qu Quality ality Baseline
84. Howard Cosell the project manager has learned that a project that was initially on schedule and within budget is now behind schedule and over budget. In the fact finding process Howard has put together all the information that will help him to complete the project on time within the budget. In doing this he will MOST LIKELY pay attention to all the following EXCEPT A. B. C. D.
Work performance information Cost, schedu schedule le progres progress s and status Rejected chan change ge requests and their status Individual performance reports
85. All of the following are Outputs of the Report Performance process EXCEPT A. B. C. D.
Organizational Process Assets Updates Product Analysis Report Performance Reports Change Requests
86. In order to determine only the work specified by the Project Scope Statement, project managers must rely on the performance of the team and reliable vendors/suppliers. The document that they would LEAST LIKELY have to review during the Conduct Procurement Pr ocurement Process would be: A. Procurement Documents B. Staffing Management Plan
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C. Source Selection Criteria D. Project M Management anagement Plan 87. Due to the limited knowledge base in both IT and business, the project went through some challenges. Upon conclusion the project stakeholders gave an unfavorable customer satisfaction rating. The rating is subjective in nature and you feel that this rating for the project was unjustified. All of the following are the lessons learned for this project that could be used to improve future project performance, EXCEPT: A. Accept the rating and follow the org organizational anizational guidelines B. Ensure adequate contingency is built in to allow for knowledge transfer and training for the project team C. Utilize post project s survey urvey rather than rati ratings ngs for high-risk projects D. Incorporate lessons learned from this project to future projects
88. The Project Team is providing a project status report in Word Perfect software. The Stakeholder has communicated that they would prefer to see the reports in the company’s proprietary reporting tools. Which of the following statements would be MORE accurate regarding this situation? A. Plan Communication process would have helped in determining the information and the communications needs of the project Stakeholders. B. It is company practice that all projec projectt status reports must be in Word Perfect as an attachment sent via email. C. It was unfair that your Stakeholder has singled you out in the status meeting to complain without discussing it with you first. D. Sending a courteous note back to the Stakeholder explaining why Word Perfect was selected and would be sufficient. 89. Applying appropriate updates to Organizational Process Assets, conducting phase-end reviews, archiving all relevant project documents in the Project Management Information System (PMIS) to be used as historical data, and obtaining acceptance by the project sponsor are all part of which Project Management Process Group? A. Planning Process Group B. Initiating Process Group C. Executing Process Group D. Closing Process Group 90. Your senior manager is disappointed to see that your project’s status report indicates that the SPI is 0.75. What may be the reasons for her displeasure?
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A. This indicates that your resources are effectiv effective e only for 6 hours out of their 8-hour workdays. B. Your project is over budg budget et by 25% C. You and your team are working hard in meeting the deadlines and have only 0.25 gap tovary, close.and 25% is the variance factor. D. Efficiencies of teams 91. As a PMP certified Project Manager in the Customer Service department, you are monitoring progress of the CRM implementation for ProPlan. The Customer has requested a change wherein all customer calls need to be recorded. You are asked to implement this change. You will present this change to the integrated Change Control process board along with what other inputs? A. Project Management plan, scope baseline, cost baseline, schedule baseline and quality baseline B. Change justification, client’s contract, client’s payment for the requested change, and client’s client’s justification for the shifting business need C. Project Management plan, Work performance information, recommended preventive action, recommended corrective actions, and deliverables D. Project Management plan, Work performance information, recommended preventive action, approved change requests, and deliverables 92. GB Consulting is a well known IT integrator and is having difficulty managing all of their projects. They have hired Erkel as a Program Manager to determine the cause of this difficulty. Which of the following types of reports would help him to gain more information about the task completion dates and major deliverables that he will present to his upper management? A. B. C. D.
Earned Value Report Milestone Report Project Status Report Variance Report
93. Effective Project Management anticipates changes and prepares to manage them. Any change to the project objectives needs to go through the Change Control process to ensure that the project’s objectives are met. Which of the following will not result in a change request? A. Your Auto parts department is surprised at the Clie Client’s nt’s requisition for a new part that you haven’t come across in the contract the contract
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B. Your construction manager indicates that a different layout of the room is possible in your new home, with no additional cost to you, but will take a week more of construction C. Your technical lead has just stated that she can complete her work one day ahead of schedule D. Your client decides to rollout marketing campaign from the original three markets to four new markets 94. When a repetitive type of approach is used with projects, there are several reoccurrences that take place throughout the entire process. Each of these continuous changes is called: A. B. C. D.
Progressive Elaboration A Prototype Deliverable A work product
95. _______ is a collection of projects or programs and other work that are grouped together to facilitate effective management of the work to meet strategic business objectives. A. B. C. D.
Project Management Program Management Portfolio Management Project Lifecycle
96. The Project Team is using the Perform Quality Assurance tools that include: Ishikawa diagram, Cost-Benefit analysis, Design of Experiments, and Quality Audits. In which Project Management Process Group do you use these tools? A. B. C. D.
Closing Process Group Monitoring and Controlling Process Grou Group p Executing Process Group Planning Process Group
97. The Closing Project or Phase Process Group finalizes all activities across the Project Management Process Groups to formally close the project or phase. Which of the following is an output of the Close Project or Phase Process? A. Accepted Deliverables B. Enterprise Environmental Factors
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C. Final Product, Service or result transition D. Work Performance Information
98. Corrective action is: A. Conducting a detailed review of the road construction project’s plans and drawings by the relevant experts. B. Fixing security issues in the newly commissioned software software package to thwart unwanted visitors. C. You have just completed your status meeting and realize that the project is behind schedule but under budget, partly because you lost two critical team members. You have requested for additional project time. D. Taking an alternate route to the movie theater after you w were ere stuck in the evening rush hour traffic. You are hoping to be on time for the start of the movie. 99. Perform Quality Assurance is the application of systematic quality activities to ensure that the project will employ all processes to meet customer requirements. Which of the following is a technique that can be used during the Perform Quality Assurance Process to identify lessons learned? A. B. C. D.
Ishikawa diagrams Control charts Quality audits Pareto charts
100. The Project Manager, Project Management Team, and Project Team always communicate through: A. B. C. D.
Formal and informal, written and verbal co communications mmunications Phone co conversations nversations and tea team m meetings Formal and in informal formal written com communications munications Formal written status reports
101. Sonia recently joined DUPLEX Inc. as a Project Manager. She came to learn that DUPLEX Inc. has already conducted a similar project. Some of the team members from that project are going to join her team. She is planning to start creating the Project Management Plan. Her first option is to depend on the: A. Project Sponsor
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B. Senior Managers C. Historical Information D. Project Team 102. Mona has been working as a Project Manager for WBW Constructions for the last five years. She has forcefully argued with management to put in place a formal Project Management system in place. Which one of the following would be a poor argument to support Mona’s stand? stand? A. Mona has conducted research and concluded that there is a lack of formal r igor igor in her organization’s Project Management, which has resulted in more project failures than the industry average. B. Team members compl complain ain about the lack of d direction irection and forethought in the task assignments, resulting in duplication and / or rework at critical times. C. Projects have generally run late and sometimes under under budget. Team members appear occupied with implementing corrective actions. D. Mona is a certified PMP and understands the benefits of a rigor based Project Management system. 103. You and your team are working to deliver a perpetual energy machine. Just when the machine is almost ready to be delivered as per schedule, a design defect is discovered. To fix this defect a small change to the scope of the project is required. Waiting for the Change Change Control Board’s (CCB) approval will delay the inauguration date of the machine which has been announced to the public. In this circumstance, what would you most likely do? A. You meet the schedule deadline by releasing the product now and fixing the issue in subsequent releases releases.. B. All scope changes require approval of the CCB. You inform your team to stop working until you can get the CCB to approve or deny the change C. The change control system gives you the authority to approve emergency changes. You consider this as an emergency and tell the team to fix the issue and inform the CCB later. D. Since time is the primary constraint for this project, you decide to approve the change yourself and tell the team to fix the error. You will inform the CCB later. 104. In a Control Chart, the upper and lower control limits are intended to show: A. Customer specification limits B. Customer expectations limits C. Calculated Sigma values D. Acceptable ra range nge of variation
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105. Jackie has been selected as a Project Manager for the AXON Inc. development project. His name was published in the Project Charter. In which process group of Project Management did this occur? A. Executing Process Gro Group up B. Initiating Process Group C. Planning Process Group D. Controlling Process Group
106. The Project Scope Scope Statement describes in detail the project’s deliverables and the work required to create those deliverables. In the process of executing the Project Management Plan the project manager will assure that all the work in the Project Scope Statement is accomplished EXCEPT A. Collect and complete the approved list of activities to bring future performance in line with predicted and planned performance B. Carefully review the collection of planning outputs which may vary depending on the application area and the size of the project C. Ensure sponsor/customer reviews the completed deliverables against acceptance criteria to close contractual obligations D. Compile information as per plan, collect project records, gather lessons learned, and document project success or failure 107. The project work results will be reviewed at the end of each Project Phase. This is done to assure the work was completed as defined in the Scope Statement. This also serves toGroup formalize the results. In which Project Management Process will the you acceptance conduct thisofactivity? A. B. C. D.
Initiation Planning Executing Monitoring & Controlling
108. You are working on a twelve-month long project. The cost of the project is S1M, arid you are exactly halfway through the project. You conducted an EV analysis that shows the following: EV=$500,000, PV=$600,000 and AC=$650,000. What is CPI & SPI? A. SPI = -0.80; CPI = -0.86 B. SPI = 0.76; C CPI PI 0.83 C. SPI = -0.8 -0.87; 7; CPI = -0.80
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D. SPI = 0. 0.83; 83; CPI = 0.76 109. In Project Cost Management, you will be working on the activities that will include planning, estimating,ofbudgeting, and work on estimating an approximation the costs of thecontrolling resources costs. neededThe to complete each scheduled activity will be conducted in which process? A. B. C. D.
Schedule Estimating Estimate Costs Control Costs Determine Budget
110. Following is a list of activities that are conducted immediately after the approval of the formal Project Management Plan EXCEPT: A. Subdivide major project deliverables and project work into smaller, more manageable components B. Obtain the human reso resources urces needed to complete the project C. Distribute project performan performance ce information to project st stakeholders akeholders in a timely manner D. Review offers from potential sellers, negotiate, select a seller, and sign the contract 111. In a Network Diagram, task-i duration is 30 days, the required completion is 72 days, the late finish is 90 days, and the estimated completion is 115 days. By using backward pass calculations, calculate the latest start time for task-i? A. 18 B. 60 C. 120 85 D. 112. Kirkland Trail Mix Company has hired you as a procurement manager. Kirkland previously used cost reimbursable contracts; however, you would like to experiment with a fixed-price and fixed- time contract. Which one of the following determines what type of contract to be used and how they will be managed? A. B. C. D.
Procurement Managemen Managementt Plan Contract Statement of Wor Work k Contract ty type pe s selection election Conduct Procurements
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113. You are a project manager for an international team from China, MiddleEast, UK and USA. To ensure that the team is not bogged down by the differences in their cultures and ethics you need to: A. B. C. D.
Speak with each grouptraining in their own language Provide cross-cultural Bring them together to US for team-building ac activities tivities Provide foreign language lessons
114. A Control Chart’s purpose is to determine whether or not a process is stable or has a predictable performance. It helps the Project Manager to: A. B. C. D.
Explore a desired future inco income me Focus on s stimulating timulating thinking Focus on the most critical issue to impro improve ve quality Determine if a proce process ss is functioning within set control limits
115. Which technique uses a weighted average duration estimation to calculate Activity Durations? A. B. C. D.
Graphical evaluation and rev review iew technique Three-Point Estimate Precedence Diagramming Technique Critical Pa Path th Metho Method d
116. A Project Manager in a Functional Organization will face several challenging tasks. This is a result of the Project Manager having many assigned responsibilities, but limited power or authority to complete them. To obtain support from the Manager must always relyProject upon: Team and other Stakeholders, the Project A. B. C. D.
Reward power Expert power Coercive power Referent power
117. Popeye, a PMP, has completed five months of his ten-month $450,000 budgeted project. All the activities are evenly scheduled at 10% each month. His Earned Value Analysis shows that the PV & EV are $250,000, and AC is $295,000. What is the Variance at Completion value for Popeye’s project? project? A. +$140,00 B. $45,000 C. -$105,000 D. -$140,000
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118. A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually is called: A. B. C. D.
Project Management Program Management Integration Management Portfolio Management
119. Mr. Rodriguez, the technical leader, has won the ‘Excellence’ award in the company. He is from a foreign country and has language difficulty; therefore, the team members are having trouble communicating with him. All of the following are measures you can take to improve the technical leads communications skills EXCEPT: A. Supporting the technical leader for his achievements at the weekly team meetings B. Recommending hi him m for a training class focusing on local accent C. Encouraging team members to exhibit em empathy pathy D. Requesting you yourr technical leader to minimize his communication communication 120. Outputs of Define Activities, Sequence Activities, Estimate Activity Durations, and Estimate Activity Resources, are all required and they are all inputs to: A. Control Schedule B. Develop Schedule C. Project Man Management agement Plan D. Schedule Management Plan 121. You’re the Project Manager for the Legal Beagle Inc. Project. While reviewing the project plan you realize that in order to bring the project up to schedule you need to allow an additional 4 hours per day per team member. In addition to the schedule and cost of the project, you need to consider the effect on the: A. B. C. D.
Completing the project within the budg budget et Quality of the deliverables Triple constraints — scope, quality, and cost Completing the project on time
122. You have read in PM News Letter that PM Training Institute is listed as a PMI®’s REP (Registered Education Provider). You know that this company
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owned by your associate did not receive approval as a REP from PMI. Your immediate step is to: A. Call PMI and report the code violation B. Call your associate and let him kn know ow that you are going to complain complain to PMI C. Call your associate and ask him to remove REP status from the advertisement D. Call your a associate ssociate and support him 123. A combination of Functional Organization and the Projectized Organization is called: A. B. C. D.
Strong Matrix Organization Tight Matrix Organization Weak Matrix Organization Composite Matrix Organization
124. In order to develop a Project Schedule, Scarlet is working on schedule development. She will be placing all of the tasks in a sequence. To accomplish this, she has decided to use one of the tools for Sequence Activities. All of the tools below are available to her EXCEPT: A. B. C. D.
Precedence Diagramm Diagramming ing Method (PDM) Dependence determination Program evaluation an and d review tech technique nique (PERT) Schedule Network Templates
125. Will Smith, a PMP, is working in a Projectized Organization and he is three weeks away fromdoes closing project. Smith has found one ofThis the team members notthe have the Will skills necessary for out thethat project. employee may be required to undergo skills enhancement, as he is a high performer. Will does not want to lose him. In this scenario, who is responsible for ensuring that this employee will be trained? A. B. C. D.
Project Manager Project Stakeholder Project Sponsor Functional Manager
126. Shorty, PMP has completed a project in Dubai. The project sponsor was pleased with his performance and awarded him with a gift of a golden watch. Shorty should do which of the following: f ollowing: A. Refuse the gift because it is agains againstt the code of conduc conductt
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B. Accept the gift and g give ive it to th the e project tea team m C. Accept the gift as it is the custom of the country D. Accept the gift but then return the favor by providing the Dubai company with a nicer gift 127. ____________is a mathematical model used to Develop Schedule. This model uses both Estimate Activity Durations and network logic to estimate duration estimates. Which of the Develop Schedule tools or techniques below provides for this? A. B. C. D.
CPM PERT GERT PDM
128. You You are examining the Network Paths for your project. Path l’s Duration is 3-3-3-4-2; 3-3-3-42; Path 2’s Duration is 2-3-4-62 -3-4-6-7; 7; Path 3’s Duration is 2-2-5-4-9; 2-2-5-4-9; and Path 4’s Duration is 4-3-4-4-8. 4-3-4-4-8. Which of the following paths is the Critical Path for this project? A. B. C. D.
Path 4 Path 3 Path 2 Path 1
129. A Pareto Chart is a specific type of histogram ordered by frequency of occurrence. It is used primarily to identify and evaluate nonconformities. The Pareto Charts help the Project Manager to: A. B. C. D.
Determine if a process is in control Concentrate and focus on the most critical issues to improve quality Focus on stimulating thin thinking king Explore a de desired sired future outcome
130. Benchmarking, Design of Experiments and Cost Benefit Analysis are used to determine which quality standards will be applicable for the project. These tools and techniques are part of which Quality Management Process? A. Perform Quality control B. Perform Quality Audit C. Plan Quality D. Variable analysis
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131. The characteristics of an Operation are: A. To complete all of the work that is defined in the Scope Statement and conduct the Closing B. Ongoing To attain opera the objec objectives tives of the o organization rganization and c close lose C. operations tions in the organization D. Ongoing and no non-Projectized n-Projectized activities to s sustain ustain the busines business s 132. Working in close proximity helps the project members to work as a team, and has a positive impact on communication and productivity. This concept is an example of: A. B. C. D.
Develop Team Colocation Synergy Team Building
133. As part of the Executing Process Group, the project managers wifi collect information regarding the status of each work package that has been implemented. The following activities would all be appropriate actions to collect information on the project status EXCEPT: A. B. C. D.
Progress on the project sc schedule hedule as percent c complete omplete Release team members wh who o completed the tasks Costs expended in relation to the budget approved approved Update corporate d databases atabases with les lessons sons learned
134. ___________is a communication method, where the project related information is sent to specific recipients who need to know the information. This ensures that the information distributed but does not certify thatmethod it actually reached or was understoodis by the intended audience. This of communication is called: A. B. C. D.
Pull Communication Interactive Communication Communication Analysis Push Communication
135. The Project Charter is issued by the Sponsor external to the project organization. The Project Manager then assumes responsibility for conducting all project activities. This includes the distribution of financial reports to appropriate Stakeholders. Which of the following documents contains report distribution information? A. Earned Value Manage Management ment document (EVM)
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B. Communications Management Plan doc document ument C. Responsibility As Assignment signment Matrix document (RA (RAM) M) D. Responsible, Acc Accountable, ountable, Consult, arid arid Inform (RACI) docum document ent
136. All of the following statements apply to the professional code of conduct EXCEPT: A. PMPs must use all PMBOK co concepts, ncepts, tools and techniq techniques ues B. PMPs must disclose pos possible sible conflicts of interest C. PMPs must report clear violations of the PMI’s Professional code of conduct D. PMPs must coop cooperate erate with PMI on a any ny ethics v violations iolations 137. All of the following are a part of Quality audits EXCEPT: A. Determining whether project activities comply with organizational policies B. Determining ine inefficient fficient and ineffective policies C. Validating Defect Repair D. Confirming the impleme implementation ntation of approved change reques requestt 138. At an annual rate of interest of 3%, if I expect to make $26,000 four years from now, what is the value of the investment? A. -$23,214 B. +$23,214 C. -$36,000 +$5,000 D. 139. The Process Improvement Plan is a subsidiary of the Project Managemen Managementt Plan. Which Quality Management Process is it an output of? A. B. C. D.
Perform Quality Control Plan Quality Project M Management anagement Plan Perform Qu Quality ality Assurance
140. Kevin, a PMP, has a current Project Team of twenty-five members located in one building. In regards to decision making, he never consults with the team. What is Kevin’s management style considered to be? be?
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Laissez-Faire Autocratic Democratic Bureaucratic
141. Partially through the project, you were informed by the project sponsor that the project must be terminated due a change in the technology. As a result of this information your next task will be to: A. B. C. D.
Execute Close Project or Phas Phase e process and leav leave e Documents les lessons-learned sons-learned for the project and leav leave e Archive the project results and leave Release project res resources ources immediately and leave
142. A Project Charter contains the project title, product description, and project goals and objectives. It is issued by the: A. B. C. D.
Project Initiator Project Stakeholder Project Manager Senior Manager
143. Calculate Critical Path Length for the following Network Diagram:
A. B. C. D.
8 Days 9 Days 10 Days 7 Days
144. “Managing the stakeholders expectations” is one of the critical factors for the project success. According to the PMBOK® guide, which one of the following group is responsible for managing the stakeholders in the project?
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A. All stakeholders have responsibility to make sure that their ‘wants, ‘wants, needs, and expectations’ are managed properly in a timely fashion f ashion B. Project sponsor is responsible for managing the stakeholders expectations C. It is the responsibility of Project Man Manager ager to manage the stakeholders stakeholders expectations D. It is the project team’s r esponsibility esponsibility to manage the stakeholders expectations. 145. AAA LOANS Inc. has purchased a brand new web server for its Mortgage division and expects to use it for the next 10 years. The server costs $9,500. It has a resale value of $3,000 after 5 years. It has $0 value after the 10th year. Using Straight-line depreciation, calculate the expense per year for this piece of hardware. A. B. C. A.
$450 $600 $950 $0
146. An incentive bonus is given for achieving certain performance objectives in a contract. This is in addition a ddition to the seller’s predetermined fee as well as for allowable costs for performing the contract work. This contract is classified as: A. B. C. D.
Cost-Plus-Incentive-Fee (CPIF) Time a and nd Ma Material terial (T& (T&M) M) Cost-Plus-Fixed-Fee (CPFF) Cost-Plus-Percentage of Costs (CPPC)
147. one of theineffective, stakeholders, provided the project manager, with aScar list ofFace, inefficient and processes andJulie procedures regarding the project activities. After reviewing the list with her team, Julie is assigning corrective actions to be taken by each team member. Among the following actions which one is she to do? A. Update the defect log report with the results of implemented defect repairs B. Determine the dependencies between the activities required to prevent failures similar to those presented in the report C. Log the project activity percent complete status in the Project Management Information system D. Conduct reviews to determine the extent to which quality metrics were met by the project team
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148. Billy, a PMP, is three months into his eighth-month project in Horizon, India. His Earned Value analysis shows that the SPI is 0.92 and CPI is 1.0. What does this mean? A. B. C. D.
Behind schedule and within Ahead of s schedule chedule an and d overbudget budget Ahead of s schedule chedule an and d within b budget udget Behind schedule and over budget
149. Evaluation criteria are used to rate proposals. They can be objective or subjective. The buyer will include this information as part of the procurement documents. This can be accomplished during: A. B. C. D.
Plan Procurements Conduct Procurements Administer Procurements Close Procurements
150. In the Earned Value Analysis, we are trying to determine exactly how efficient we are in using our resources. Which one of the following metrics provides this information? A. B. C. D.
Planned Value (PV) Cost Pe Performance rformance Index (CPI) Earned Value (EV) Schedule P Performance erformance Index (SPI)
151. Every company will have their own project methodology. They may be based on standards of the industry or personnel involved. in A all project management team would select a management methodology the following EXCEPT: A. For information on organizational process assets such as human resources is refined as a project management methodology matures in an organization B. When a PMO may identify and develop suc such h a system and impos impose e it on most projects to use it C. To use and demonstrate return on inv investment estment only when it is a formal system and uniform across the organization D. When it may be based on a project management standard such as PMBOK® although this is not a requirement 152. Disaster Recovery Procedures have been written, reviewed, accepted by senior management, and the employees have been trained. Periodic review of
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these procedures happens as part of Project Quality Management and is accomplished through Quality Audits. These audits are tools of: A. Perform Quality Control B. C. Quality PerformImprovements Qu Quality ality Assurance D. Plan Quality
153. Managing the contract and relationship between the buyer and seller, reviewing and documenting how a seller is performing or has performed in the project, and managing the contractual relationship with the outside buyer of the project are all part of Administer Procurements process. The Administer Procurements process belongs to: A. B. C. D.
Monitoring & Controlling Process Grou Group p Executing Process Group Planning Process Group Initiating Proc Process ess Group
154. Accepting cultural differences is most important in the global market place. As a project manager, when when should you consid consider er cultural differences? A. When you assign human resources to do the work in schedule activity process B. When you break down the scope statement into smaller and more manageable components C. When you are plann planning ing to give project rewa reward rd and recognition during Project Team D. Develop When you conduct individual project performance during Manage Project Team 155. All projects complete an Individual Performance Appraisal. This appraisal includes feedback from superiors, subordinates, and peers, as well as noting their comments and observations. This principle is referred to t o as: A. B. C. D.
Manage project team 360-degree feedback Open door policy Organizational policy
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156. Information on the status of project activities being performed to accomplish project work is routinely collected as part of the execution of the Project Management Plan. This is called the: A. B. C. D.
Project Performance Corrective Actions Information. Defect Repair Work Performance Information
157. Ml of the following are TRUE of the Executing Process Group as defined in PMBOK® EXCEPT: A. Integrates people and other resources to carry out the project management plan for the project B. Implements appro approved ved changes changes and c corrective orrective actions C. Applies the planned, systematic quality activities to ensure that the project employs all processes needed to meet requirements D. Conducts scope verification arid inspection for the completeness of the work 158. Due to change in technology, a nine-month project has come to an end after three months. The Project Sponsor has made a decision to terminate the whole project. You are a certified PMP® and according to PMI®, your next step is to: A. Send the team back to the home office and close the project immediately. B. Complete Verify Scope process and document the result to the lev level el and extent of completion. C. Close the project immediately immediately,, send a thank you note to the Spo Sponsor, nsor, leave premises. D. and Leave thetheproject immediately and inform the situation to your management. 159. Precedence Diagramming Method (PDM) is a method of constructing a Project Schedule Network Diagram. It uses nodes to represent activities and arrows to show their dependencies. Which of the following statements is FALSE in regards to the PDM? A. Uses FF, FS, SS, and SF relations relationships hips B. Is used in Critical Path Methodology for constructing schedule network diagram C. Also c called alled Activity-On-Arrow D. It is a tool and technique of Sequ Sequence ence Activities
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160. Denny Cram has traveled across the world working on projects as team leader, project manager, and program manager. All of the following statements that Denny makes could be considered inaccurate EXCEPT A. among PMBOK® provides the basis of the a common projects managers across globe lexicon and standards B. When projects are managed across shores, it is imperative the project manager prepares all management reports in local MS Word format. C. The world of global project man management agement is perpetrated with learning several languages in order to communicate issues D. Most of the companies outside of America and Europe follow uncertified processes and hence are inefficient 161. A tool may be used to display the pattern of the relationship between two variables. The tool also allows the quality team to study and identify the possible relationship changes between the dependent and independent variables. Which tool would this be? A. B. C. D.
Control chart Run chart Scatter diagram Pareto chart
162. Project Team is responsible for many activities. The following are all part of the Project Team’s responsibilities EXCEPT EXCEPT A. Developing a Project Charter B. Analyze and underst understand and the Scope C. specific ficBreakdown criteria of the produ product ct requirements D. Document Prepare thespeci Work Structure 163. Snowman has been assigned the responsibility of calculating the payback period for his project that is to be completed in 5 years. The internal rate of return (IRR) is 6% and the annual savings will be $50,000 per year. The total cost is $500,000 and the rate of return during this time period is 5%. What is the payback period of Snowman’s project? project? A. B. C. D.
13.3 years 10 years 4 years 3.3 years
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164. Completing and settling each contract, including the resolution of any open items, and closing each contract applicable to the project or project phase, are aid part of which Project Management Process Group? A. B. C. D.
Verify Scope Process Closing Process Group Procurement Management Process Monitoring and Controlling Proc Process ess Group
165. Which one of the following process reviews all change requests, approves changes, and manages changes to the deliverables, updates organizational process assets, project documents, and the project management plan? A. B. C. D.
Perform Integrated Change Co Control ntrol Monitor and Control Pr Project oject Work Direct Manage Project Ex Execution ecution Change Control Board
166. What is the purpose of project assumptions and who is responsible to identify and document these assumptions? A. The purpose is to help identify risk factors and it is the project sponsor’s sponsor’ s responsibility to identify and document them. B. The purpose is for legal purposes and it is the project sponsor’s responsibility to identify and document them. C. he purpose is to notify the project team and it is the sponsor’s responsibility to identify and document them. D. The purpose is to help identify risk factors and it is the project team’s responsibility to identify and document them. 167. Elvis is a Project Manager for a Sports Arena construction project. His team has completed the Scope Management Plan. His next step is to determine what physical resources are needed, how much are needed, and when they will be needed to complete the project. In which of the following processes will he conduct this activity? A. B. C. D.
Acquire Project Team Estimate Activity Durations Estimate Ac Activity tivity Resources Manage Project Team
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168. The Verily Scope process includes several outputs. Of these, one is considerably more important. According to PMBOK®, which of the following is the most important output of the Verify Scope process? A. B. C. D.
Scope ProjectBaseline Sc Scope ope Man Management agement Plan Project Sc Scope ope Statement Accepted Deliverables
169. Which of the following is an approved plan that integrates the triple constraint parameters, includes technical and quality parameters, and also helps to compare the project execution, as well as measure deviations for management control? A. Performance Measure Measurement ment Baseline B. Cost Performance Baseline C. Scope Baseline D. Schedule Baseline 170. According Roger Rabbit, which are the stages of team development: A. B. C. D.
Unanimity, Majority, Plurality, and Dictatorshi Dictatorship p Brainstorming, Mind Mapping, A Affinity, ffinity, and Settling Support, Coac Coach, h, Direct, and Deleg Delegate, ate, Forming, Storming, Norming, Performing, and Adjourning Adjourning
171. Brutas is a Project Manager for a Bridge Construction Project. His Stakeholders are not concerned with cost, but are concerned with time. Brutas is fifteen days behind schedule. In order to put the project back on schedule, which of the following techniques t echniques will he use? A. Fast Tracking B. Simulation technique C. Expert judgment technique D. Schedule Co Compression mpression technique 172. The Process Improvement Plan, Quality Metrics, Quality Checklist, and Quality Management Plan are all outputs of: A. B. C. D.
Project Management Pla Plan n Plan Quality Perform Qu Quality ality Assurance Perform Quality Control
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173. ProplanX is engaged in a procurement management consulting with Ike & Mike, a construction company. Based on the following data — Net present value (NPV) for Detroit City Senior Citizens residence construction project is US $750,000 and Southfield City pavement construction project is US $500,000. What is theproject opportunity for Ike & Mike if the Southfield City pavement construction is not cost selected? A. B. C. D.
US $750,000 US $500,000 US $250,000 US $1,125,000
174. You have been appointed as a project manager for a project. For this project the Charter has been developed and released. What is your immediate next step? A. B. C. D.
Identify Stakeholders Collect Requirements Define Scope Develop Proje Project ct Manag Management ement Plan
175. Mona is working as a project manager for Snap_On_Tools Inc. One of her projects has been outsourced to Snap_Off Inc. Mona was asked to remove the costs involved with human resource management since this is the same team that worked on the previous project. Mona’s best response is to: to: A. B. C. D.
Remove your Human Re Resources sources Manager Cut the costs and acce accept pt customers request Reduce the team to manage your costs Explain to customer that you hav have e several costs, one of which is the Human Resource management costs which cannot be eliminated
176. Creating the Staffing Management Plan, identifying and documenting the project roles and responsibilities, and reporting relationships are all a part of: A. Organizational Planning B. Communication Planning C. Develop H Human uman Reso Resource urce Plan D. Manage Project Team 177. Which of the following is a process that includes the actions necessary to define, integrate, and coordinate all subsidiary plans into a Project Management Plan? A. Integration Plan B. Develop Project Ma Management nagement Plan C. Project IInformation nformation System
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D. Project Man Management agement Methodology 178. As part of the Develop Project Team Process, all of the following statements are TRUE regarding the process EXCEPT: A. The Develop Project Team is performed during the Execution of the Project Life Cycle only B. Performance improvements are an output of the Develop Project Team Process C. Improving team competencies and interaction of team members to enhance project performance D. Soft skills are particul particularly arly important for team development 179. The Work Breakdown Structure (WBS) can be an effective tool for communication in which situation(s)? A. B. C. D.
Internal within the project team Internal and external to the project Internal w within ithin the organization External w with ith the customer
180. Which of the following is a Schedule Baseline? A. Measuring and reporting quality performance as part of the Performance Measurement Baseline. B. An approved plan for the project work against which project execution is compared and deviations are measured for management control. C. A time-phased budget is used as cost a basis against which to measure, monitor, and that control overall performance on the project. D. Measuring and reporting schedule performance as part of the Performance Measurement Baseline. 181. What is the outcome of a lack of communication or no communication? A. B. C. D.
The Sponsor will not trust the project tea team m any more The project deliverables will be delayed Cost and schedule overruns Conflict occurs within the project
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182. The level of authority and autonomy that a Project Manager possesses is critical for the success of the project. In what type of organization does the Project Manager maintain a high level of authority? A. B. C. D.
Functional Matrix Balanced Matrix Weak Matrix Projectized
183. In Progressive Elaboration, planning the work to be accomplished in the near term is planned at a lower level, while the work in the future is planned at a higher level. While working in the current period, you’re planning work to be performed in one or two future periods. Working in a current period while planning for a future period is the concept of: A. Rolling Wave Planning B. Planning of phases C. Program planning D. Planning ahead 184. Your team is using WBS and an Activity List in order to estimate project duration. For each activity, the team determines the distribution of probable results to calculate the project duration. In this process the team is making use of: A. B. C. D.
Bottom-up Analysis PERT Analysis Top Down Analysis GERT Analysis
185. Richard, a PMP, has a current Project Team of twenty-five members located in one building. Regarding decision making, he only consults with one or two members that he values. Richard’s management style is style is considered to be: A. B. C. D.
Laissez-Faire Autocratic Democratic Bureaucratic
186. Your stakeholders are pleased with your project deliverables and you are ready to close, archive deliverables, and distribute the final project report. This information is provided for the purpose of being used in future projects in many areas EXCEPT:
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Activity and cost estimating Project scope verification Project res resource ource allocation Product verification
187. Bob and Nancy are conducting a Risk-Quantifying Analysis of their investments that they are unsure of. Which of the following metrics reflects the level of their uncertainty? A. B. C. D.
Standard deviation Risk probability Cost baseline Risk tolerance level
188. You are working on a 4-year project. The application will be built on TOTO platform using Gibberish language. At the end of first year, TOTO declared bankruptcy. You know that if you continue to use this technology, it will impact the outcome of this project. pr oject. What is your most appropriate response? A. Do not complain, and start using the TOTO because it is part of your scope of work B. Discuss w with ith the client, an and d explain the situation C. Discuss with your senio seniorr management, and explain explain the situation D. Discuss with your team members, and come-up with an alternative solution to the problem 189. Linear responsibility charts can be used for all of the following, EXCEPT A. B. C. D.
Keeping track of who must ap approve prove what items Critical interfaces Project timelines Determining who is responsible for what what task
190. Accurately estimating the effort and duration of a project is difficult due to all of the following EXCEPT: A. Each project is different, even though the performing organization has done similar projects before B. Availability of g good ood estimating experts is a challenge C. The scope may be well defined and the project team may - have a good understanding of the client’s needs needs D. There is not a standard technique available, but instead various scientific and non scientific methods exist.
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191. A Pareto Chart is a specific type of histogram ordered by frequency of occurrence. It is used primarily to identify and evaluate nonconformities. It is also referred to as the: A. B. C. D.
Halo Effect Tight Matrix Heuristics 80/20 Principle
192. At the completion of the project you are entering data in your company’s staff-pool database with an updated skill-set and proficiency. This activity is part of: A. B. C. D.
Executing Process Gro Group up Planning Process Group Closing Process Group Monitoring & C Controlling ontrolling Process Group
193. What is the name of the system that collects all formal documented procedures and defines how the project work will be authorized, along with ensuring the work is done by the organization at the right time t ime and in the proper sequence? A. B. C. D.
WBS WAS Change control system PMIS
194. You are a project manager for Nature-Admire Inc. Your project involves designing and implementing an Internet site where customers can order products and obtain information and tips on their favorite outdoor activity. You have hired a vendor for the Internet project who has missed several important milestones. You decide to terminate the vendor’s contract for nonperformance. Which of the following actions should you take t ake next? A. Notify & the vendor that the contract is being terminated. B. File a contract change request to change control board (CCB) and obtain approval for the change. C. Make a final payment to the vendor that includes all of their work up to this point and notify them that the contract is being terminated. termin ated. D. File a legal suit against the vendo vendorr claiming non- performance as per contract and claim remedies
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195. You have signed a Cost Plus Incentive Fee (CPIF) contract with the local government. For this contract, the Target Fee is $1 5M, Target Cost is $120M, and Actual Cost of the project is $11OM. According to the contract, the profit sharing ratio is 50% Profit to thefor Govt what is the Resultant you?and 50% to you. Based on this information A. B. C. E.
$20M $15M $10M $5M
196. Your team is getting ready to close the project. Based on the Gantt and roles and responsibilities matrix, one of your resource’s works was completed two weeks in advance. If you release the resource you can save some money on the project. You had a discussion with the individual and the respective functional manager. Following are all the steps that you will need to conduct EXCEPT: A. Conduct performance review and archive the documents with the project B. Discuss with pro project ject sponsor regarding release of the res resource ource C. Discuss the situation with the project stakeholder to whom this resource has been assigned D. Conduct performance review and se send nd it to functional m manager anager 197. In one of the Project Management Process Groups, work will include allocating the cost to scheduled activities or to work packages. In which Project Management Process Group will you conduct this activity? A. B. C. D.
Initiation Planning Execution Monitoring & Controlling
198. You have estimated to Toyota that it would cost $300,000 for product development. Toyota added another $150,000 for support and maintenance to the cost of the product development. This cumulative cost is called the: A. B. C. D.
Life Cycle Cost Maintenance cost Total proj project ect c cost ost Sunk cost
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199. As a project manager in order to facilitate the execution of the project you will need to interact with stakeholders, vendors and functional managers. As the project progresses your team members are providing you with information about completion of Process work packages. Most of the following activities may happenthe in the Executing Group concurrently EXCEPT: A. Leading, mentoring and managing team members assigned to your project B. Distributing project related information to stakeholders and performing Quality Audits C. Negotiating with the functional managers for the resources and assigning them to the work packages D. Based on the Project Charter creating the Project Scope Statement 200. The Outputs of the Create WBS process is Scope Baseline, WBS, and WBS Dictionary. In which Project Management Process Group will you develop the project Scope Baseline? A. B. C. D.
Initiating Process Planning Process Executing Process Monitoring & Controlling Process
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The Scope Statement can be developed by the Functional Manager or any other manager, but not in the concept/initiation stage. Answers A, C, and D
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are true statements, and are therefore incorrect. Since the project is on schedule and on budget, (B), (C) and (D) are all true. We cannot conclude that (A) is true with the given information.
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Develop Project Charter, Develop Project Management Plan, Direct and Manage Project Execution, Monitor and control Project work, Perform Integrated Change Control, and Close Project or Phase PMBOK® page# 331 Proposal Evaluation is a tool ft technique of Conduct Procurements Process, To-complete Performance Index (TCPI)- is the calculated projection of cost performance that must be achieved on the remaining work to meet a specified management goal such EeC or SAC. it is also called The ratio of “remaining work” to the “funds remaining”. remaining”. Answer B is correct. The Project Charter initializes the project with business need; the WBS document contains the decomposed Deliverables from the major project Deliverables; and the Product Scope contains product analysis and other information. Thus, A, C, and D are incorrect. B, C, and D are all part of Monitoring and Controlling Process Group activities. ‘A’ is part of Executing Process Group. Group. Procurement Management involves procuring or purchasing products or services not met effectively by the performing organization. Bidders Conference is a Tool & technique of Conduct Procurements. This is taken directly from PMBOK®. The answer A Is correct, Answer A is correct. Expert power is a legitimate power and is a form of personal power obtained through special knowledge. The rest of them can be obtained either through association or by position. This is described in the Student Class Notebook. Answer A is correct. Quality training is a cost of conformance. The rest of them are all costs of nonconformance. Resolving team conflicts and their resolution are not a part of the archival process. They are a part of Human Resources Management. During the archiving process, all the documents related to the project will be archived except information on team conflicts. WAS is a formal procedure to ensure work is done in the right sequence and the right time. The question is the definition of the Organizational Breakdown Structure (OBS) and is taken directly from the PMBOK®. The statement is the PMBOK® definition of the Manage Stakeholder Expectations Process, which belongs to the Executing Process Group. Creating and establishing a Reward and Recognition Plan is part of Develop Human Resource Plan (Planning Process Group), but it is awarded as part of the Develop Project Team (Executing Process Group). For internal project, Project Initiator provides SOW. For external projects, the SOW be received from the customer as part of bid documents Answer A is correct. The Project Scope Management Plan includes all of the answers except the Resource requirement. Answers B, C, and D are true statements. The Project Charter is the document which will give authority to the Project Manager to execute the project. In the above question, answer A, B, and C are tasks to be created, but answer D is the first step to take. Thus, 0 is correct answer. Actual cost of $1 1OM is Less than the Target cost of S12OM. Variance = Target Cost ($120M) - Actual Cost ($I1OM) $1OM. Per contract, for under run, the profit share ratio is 50%-50%. Hence, you will receive $5M of the $1OM variance. Target Profit is 51CM. All together the Resultant Profit is $5M+$10M = $15M. According to the PMBOK® Issue logs are tools and techniques of the Manage Project Team.
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The Theory of Needs is proposed by David McClelland. It is one of the
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Humanistic Psychology Theories. It is described in the Student Class Notebook. 25
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Answers A, B, and C are incorrect because in a Functional Organization, the Functional Manager has all of the authority and power. The Project Manager is merely a coordinator and does not have any power. The Project Sponsor and Stakeholder have nothing to do with the resource management. In (A), maintaining roads and housing is the UN strategic consideration to improve the quality of Life for the Local tribal community, but is not a strategic project. Answer C: The Electric Utility example is not a project it is an operation, and is not a strategic consideration but rather an operational improvement. Answer D is incorrect because employees using a new expense report system are not a project; it is an organizational need to stay in the business. Therefore, answer B is correct because constructing a new substation to serve a new IT Tech Park is considered to be the strategic plan for Detroit energy. This goal cannot be achieved through normal operations; it is a Project. The Project Schedule is an Input to Control Schedule. Answers A, C, and D are incorrect because the outputs of these processes becomes an input to Project Schedule! Answer D is derived from the definition of the Project Management Plan and Project Performance Baseline. PMBOK® page# 191 Process Improvement Plan, Quality Metrics, Quality Checklists, and quality Management Plan are all outputs of Plan Quality Process. The question is itself a definition of ‘Standard.’ ‘Standard.’ Answers A, B and D are ways to reduce the duration of activities and therefore are incorrect answers. Answer C is correct, because to ReBaseline a project is not a way to reduce the duration of activities. In the Functional Organization Structure, the Project Manager is called the Project Expeditor. In a Projectized Organization and Strong Matrix Organization, the Project Manager’s title stays the same. Tight Matrix is not an organizational structure, so A, B, and D is incorrect. Control Charts can be used for both Project and Product Life Cycle Processes, It illustrates how a process behaves over time, and if these process variables are within acceptable Limits or not. This is why answer A is correct. Defect tracking tools assists in tracking defects and may output Defect reports (0). Answer C has nothing to do with this question. Collaborate means to work with others, and is not considered an interpersonal skill by itself. Leadership, motivation, negotiations and conflict management are all interpersonal skills of a Project Manager. Therefore, C is correct. Answers A, B, and Dare incorrect. ALL of the statements in the answers are wrong except answer B. Critical Path can go over Dummy Nodes too. The Schedule Compression Technique shortens the Project Schedule without changing the Scope of the project. This is the definition of Schedule Compression Technique, and it is taken from PMBOK® page #156. The statement is the definition of Perform Quality Assurance, and it is taken directly from PMBOK®. Another name for Lessons Learned is postpost-mortem mortem documenting “good & bad” activities/processes, or brain storming brain storming You need to follow the problem escalation process in which Informal verbal communication is the most appropriate step to begin with.
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Answer A Is the definition of Perform Quality Control.
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Plan Quality, Perform Quality Assurance, and Perform Quality Control are all a part of Quality Management. However, Overall Change Control is not because It isn’t a process. Thus, answer B is the correct choice. Cost plus fixed fee (CPFF) contracts charge all the costs of the project back
to the buyer and include a profit to the seller, which Is the fixed fee portion of the contract. The greatest risk on a CPFF contract is borne by the buyer because the total costs are unknown until the end of the project. D In Develop Schedule, assigning an individual to a single task ensures tracking, reporting, and makes accountability issues easier. The individual can always take help from the team in the discharge of their duties. Hence (B) is unsuitable, and (A) and (D) are incorrect for the same reason. C Stakeholder Analysis Is a tool and technique of Identify Stakeholder process. It is used to gather and analyze quantitative and qualitative Information to determine whose interests should be taken into account throughout the project B Answer A, B, and C are incorrect because before you close the project, you need to formalize a final acceptance from the Stakeholders. First you need to conduct the Perform Quality Control process (correctness), and then the Scope Verification process (completeness). Answer D is the best answer. D All of the choices can possibly run through the Project Manager’s head, but (0) is the most appropriate choice. Since the question was about the immediate response, (0) clearly indicates that “Resolve which is the first thing that goes in your mind and that is to alert the customer. Following this (B) can be the second best choice. A The Scope Statement may or may not change, but the Scope Baseline (Scope Statement, WBS, and Dictionary) always will be affected. The first step is to make the necessary changes to the Scope Baseline. Thus, answer A is correct. C A strategic goal is usually managed at the highest level, and in this case that would be the Portfolio Manager. Organizations typically use Portfolios to implement their strategic goal. A Portfolio is a collection of Programs and Projects, grouped together for better management control. D Rationale: The first necessity here is to perform the corrective steps (D), that is, to reduce the long lines by enabling the checkout process. Once the long lines are handled, then (A) and (C) can be looked into. A corrective action is a recommendation required to bring expected future project performance into conformance with the project plan, and in this instance, to complete the checkout process. (B) is a poor choice.
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As an example, the training you are undergoing is part of the scope of the project, whose objective is to get PMP certified. There are other activities that are part of scope that needs to be performed - application process, paying fees, scheduling exam, etc. A Project Life Cycle is composed of one or more phases. Answers A, C, and D do not describe the relationship between Project Phases and the Project Life Cycle, so they are incorrect. 40% of $40,000 = -$16,000 (loss); 60% of $60,000 = ÷$36,000(profit) EMV 36,000- 16,000— $20,000 profit. Enterprise Environmental Factors deals with the organization’s environment and information systems, The Project charter contains the project business need and project justification; whereas, the project scope statement deals with what needs to be accomplished. Historical Information and Lessons learned knowledgebase contains past project information and both belong to Organizational Process Assets Analogous, Top-Down and Delphi techniques are alt same the only
difference Is the experts participate in Delphi technique anonymously.
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Collecting Work Performance information is part of Executing and not Monitoring and Controlling, where (A), (C), and (D) are performed. Procurement statement of work (SOW) is part of procurement documents and It is an input to Conduct Procurements process
A, B, C are the characteristic of Project Management Plan. D is not correct. Project Management Plan contents indeed are affected significantly by the application area D Administer Procurements- Is the process of managing procurement relationships, monitoring contract performance, and making changes and corrections as needed. D Answer D Is the best answer. Answer A Is incorrect; although, a Change Control Management System can be used to manage a project and get it back inline. However, It is not an input into the Project Execution Processes. Answers B and C are incorrect, incorr ect, the Communication Plan and Sta Status tus Report are Outputs to the planning, monitoring ft controlling phases respectively. B Initiating Process Group defines and authorizes the project or project phase. Thus, if It is a new project the Project Charter will be developed and initiates the project. if it is an existing project, the Project Charter already exists, so it authorizes approval to begin the next phase with approval from the Project Sponsor.
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The project is in execution and simultaneously being monitored and controlled. B and C are planning aspects and should have been completed before execution began. D is closing of the project. A is an aspect of execution that should be continued. In a project environment, the Project Team and Project Manager communicate through format, informal written, and verbal communications. Answer C is the best answer. Irrespective of the organizational structure that you are working in, when it comes to changes to the project, only the Change Control Board has the authority to approve or disapprove the change request. Except Project Forecasts rest of them are all PM Process outputs from Execution group. Project Forecasts are outputs of Report Performance - a Monitor and Controlling function. Correct answer is B. PMBOK® page# 251
The question is the PMBOK® definition of Plan Communications. C Except Team Performance Assessment the other choices are all inputs to Direct and Manage Project Execution process. Team Performance Assessment is an output from Develop Project Team. C Project Selection Methods are Benefit Measurement methods and Mathematical Models. Examples of Benefit Measurement methods are: scoring models, comparative approaches, and economic models. B This is the PMBOK® definition of Monitor and Control Risks process. A Conduct Procurement - is a process of obtaining seller responses, selecting sellers by using Screening System, Weighting System and awarding contract. D A is a requested change, B is a corrective action, actionable Items must be activities not deliverables. D represents the most appropriate choice for what is a Deliverable - they must each be unique and must be verified. Hence, they must also be documented C D FV = PV (1 + i)^n = 35,000*(1+0.06)^6 = 35,000*1.42= $49,648 D The less costly way of conducting the same Scope of work with more quality
Is called Value Analysis. This is the definition of Value Analysis. Answer D is
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correct PMBOK® A, B, D is executing processes whereas C is a control aspect Answer C is correct, since the type of change is not mentioned. The first thing the Project Manager must take care of is the Project Plan Baseline. Based on the Project Plan Baseline, the other baselines can be adjusted or changed. Therefore, answers A, B, and D are incorrect. The project is in execution since work performance information is being collected. Information collected includes A, B, D and not C. C is information collected and output as part of Perform Integrated Change Control and not during execution. PMBOK® All of them are outputs for the Report Performance Process except for the Product Analysis Report. PMBOK® A, C, D are direct inputs to the Conduct Procurements Process referred in the question. Staffing Management Plan has nothing to do with Conduct Procurement Process. Staffing Management Plan is an output of Develop Human Resource Plan. Options B, C, & D are all used to improve future project performance based
on lessons learned, surveys, and ratings. Ratings are subjective in nature and do not give a clear picture, especially in a project which is high risk and there is limited knowledge about it. Surveys are better in these kinds of situations. A In Plan Communication process the output Is Communications Management Plan. This plan provides who gets what information when and how and in what format. That is why Answer is A is correct. D PMBOK® page# 64 Answer D is correct. All the above mentioned activities are all part of Closing Process Group. Answer A, B, and C are incorrect. A SPI is an efficiency factor on utilization of time, which is answered by (A). All other options are incorrect C PMBOK® (D) can be eliminated since for Perform Integrated Change Control, one of the inputs cannot be an ‘approved change request. This will always be an output. (A) and (B) can also be eliminated since Perform Integrated Change Control process needs to know what was planned and what has been accomplished as of now, so as to consider the impact of the change request B PMBOK® The correct answer is D. Milestone Report/charts show the scheduled start or completion of major deliverables and key external interfaces. The Earned Value Report provides information on schedule and cost. The Project Status Report gives the details about what the team has accomplished. The Variance Report shows the variance between Actual vs. Projected Cost/Time. As a result, answer B is correct because this report is used by the senior management. C Option (C) is the only one that doesn’t affect agreed upon project objectives negatively A PMBOK® Answer A is the best answer. Answer B is incorrect because the prototype is an output of the process. Answers C and 0 are incorrect because iterations are not Deliverables, nor are they work products. C
PMBOK® Answer C is correct. This is the PMBOK® definition of Portfolio management. Answers A, B, and 0 are incorrect.
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Ishikawa diagram, Cost-Benefit analysis, Design of Experiments, and Quality
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Audits are all tools that are a part of the Perform Quality Assurance (QA) process. QA comes under the Executing Process Group. C PMBOK® Final Product, Service or result transition and Organizational Process Assets Updates are two important outputs of the Close Project or Phase Process. This is directly from PMBOK® Answers A and D are outputs of the Direct and Manage Project Execution Process. D PMBOK® (A) is a Preventive action, (B) is defect repair, and (C) is a change request, in (D), an objective is to be met and an action has been proposed to meet the objective (‘on time for the movie start’) start’) C PMBOK® Quality audits are part of the Perform Quality Assurance tools techniques. Quality audits confirm the implementation of approved change requests, corrective actions, defect repair, and preventive actions. A, B, and D are all Quality Control tools. A Answer A is correct. The Project Manager, Project Management Team, and Project Team always communicate through Formal and informal, written and verbal communications. Answers B, C, and Dare incorrect. C PMBOK® Answer C is correct, in Organizational Process Assets; the most important component is the Historical Information. Historical information plays a major role in selecting a project. Project Managers always depend on Historical information when they have to develop a project plan from scratch. The emphasis should be on process and artifacts and not just people. D The personal understanding of Mona on the benefits is not a sufficiently strong argument. In (A), (B) and (C), there is evidence to indicate issues that have occurred which possibly may not have arisen with the benefit of a formal system. C A well thought out change control system should have an emergency change procedure. Since this is an emergency, you are using those procedures to immediately effect changes, and then, inform the CCB. (D) does not explicitly confirm if there is any emergency change procedure as part of the change control system. D Control Charts are Quality Control toots & techniques. In Control Charts the upper and lower control limits indicates the ‘acceptable range of variation.’
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That is why answer 0 is correct. PMBOK® The Project Charter is an output of the Develop Project Charter process. The Develop Project Charter belongs to the initiating Process Group. B Is correct. PMBOK® The question is referring to the Direct and Manage Project Execution process. During this Process A, B, and D are conducted. However C is Verify Scope process. PMBOK® PMBOK® CPI = EV/AC 500,000/650,000 = 0.76 SPI = EV/PV = 500,000/600,000 0.83 PMBOK Developing an approximation of the costs of resources needed to complete project activities is part of the Estimate Costs process activity. Thus, answer B is correct. PMBOK® The next step after obtaining formal approval of the project plan is execution. B, C, and D are all aspects of Direct and Manage Project Execution? A Is
Create WBS, which is a planning activity
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Answer B is the correct answer. The calculation is: Latest Start =Latest Finish (90)-Duration (30) = 60. Therefore, Answers A, C, and D are Incorrect. PMBOK® Procurement Management Plan is an output of Plan Procurement processes. This plan describes how the procurement processes will be managed from developing procurement document through Close Procurements. It also includes a plan for what type of contract to be used and how they will be managed for a given project. Hence answer A is correct.
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PMBOK® Answer D is correct. Answers A ft B relate to the Fishbone diagram. Answer C relates Pareto Charts. B PMBOK® Three-Point estimate uses the weighted average of the duration estimate to calculate Activity Durations. Answers A and C are not a Develop Schedule Technique. Answer D takes only one number: either early start -- Late start -early finish - or Late finish. Answer B is correct. D Answer D is correct. Referent power Is a Legitimate power that is transferred from a Functional Manager to a Project Manager. Answer A is incorrect because Reward power is based upon the authority level. Answer B is incorrect because Expert power is based upon an individual’s expertise. experti se. Answer C is incorrect because Coercive/Penalty power is based upon the use of force. D BAC=$450,000 EAC= AC/%completed = 295,000/0.50 = 590,000 VAC= BAC-EAC= 450,000-590,000 = -$140,000 B PMBOK® Program Management is a collection of related projects, whereas Project Life Cycle is a Collection of related Project Phase. D In answer B you are emphasizing the strengths of the Lead, as a result he gains more confidence and the team learns to respect him for his strengths and not his weaknesses. Answer C is a temporary solution, but in the Long run it is not a good solution. And answer 0 is not a good argument since communication is the means for a lead to get any job done. B, C, and A could be the solution, but not D. So the answer is D B PMBOK®
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Define Activities, Sequence Activities, Estimate Activity Durations, and Estimate Activity Resources are all inputs to Develop Schedule. PMBOK® Answer B is correct because the quality will suffer suf fer since the team is working long overtime hours. Answer A and D is not a good option since that is the PM’s responsibility. Answer C is incorrect since the scope Is NOT getting affected. PMBOK® Composite Matrix - is a Organization structure. PMBOK® Answer C Is correct. Program evaluation and review re view technique (PERT) is not a Sequence Activities toot. Answers A, B, and D are all Sequence Activities tools. PMBOK® Answer D is Incorrect because in a functional organization the functional manager has alt the authority and power but here we are talking about Projectized organization where the project manager has authority and
power, The project sponsor and the stakeholder have nothing to do with the
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PMBOK® Answer B Is correct; Program evaluation and review technique. (PERT)! 3 Point Estimate is a mathematical model used in Schedule Development. It uses both Activity Duration Estimates and Network Logic to estimate Duration Estimates. The Critical Path Method considers only single Duration Estimates. GERT and PDM are not Develop Schedule tools. PMBOK® Answer A. The Longest path In the Network Diagram Is the Critical Path. The Duration of Path 1 Is 15, the Duration of Path 2 and 3 are 22, and the Duration of Path 4 is 23. PMBOK® Answer B is corr correct. ect. Answer A relates to Control Charts, and answer C ft D relate to the Fishbone diagram. PMBOK® Cost Benefit Analysis, Benchmarking, Fishbone Diagrams, and Design of Experiments are all tools and techniques belonging to the Plan Quality Process. PMBOK® Answer D is correct because operations are ongoing and non-projectile
activities to sustain the business; whereas, projects conclude when their specific objectives have been met. Answer A, B, and C are Incorrect. B Answer B is correct. Tight Matrix or Colocation occurs when project team members are physically Located in close proximity which Improves communication, focus, and emphasis on project completion. It is described in the Student Class Notebook. B PMBOK® A, C, D are part of the work performance information collected in Direct and Manage Project Execution. B Is an exception since it is part of Close Project. D The statement is definition of PUSH communication. This Is taken directly from PMBOK® Answer D is correct. B PMBOK® The Earned Value Management document contains information about ‘triple constraint. The Responsibility Assignment Matrix contains the connection between works that needs to be done by the Project Team. The RACI chart is a type of RAM, and the Communications Management Plan provides information distribution, format, content, and level of detail. A “Generally recognized” principles of PMBOK® imply they are applicable to most of the projects most of the time but not all of the projects all of the time. C Read this question as, “What is not a part of Quality audits?” Validated Defect Repair is done in quality control, and is not a part of Quality audits because they are done during quality assurance. B PV = FV/(1+r)”n = = 26,000 / (1 + 0.3)”4 = 26,000/1.12 = $23,214 $23,214 B PMBOK® The Process Improvement Plan is a subsidiary of the Project Management Plan, and is an output of the Plan Quality process Thus answer B is correct. B Autocratic Is one of the leadership styles. The description of the question is Autocratic Leadership style. It is described In the Student Class Notebook. A PMBOK®: Projects come to an end for several reasons -project completed successfully, canceled or terminated due to lack of funds, change in technology direction, market conditions, or even if it became an ongoing operation, etc.; hence, it no longer exists as a project. Regardless of the above-mentioned conditions, the project closure must take place. B, C and D, already included in A and
hence, A is the right answer.
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PMBOK® Answer A Is correct because the Project Sponsor/initiator Is the one who creates/approves the Project Charter. A->C->E = 3+3+2 = 8 days C-’FS+14F C-’FS+14F--’E = 4+1+2+2 =9 days days
A-’SS A-’SS--’D ’D--’E = 3+2+2 =7 Days Days Correctt Answer is ‘B’ 9 days Correc days D PMBOK®: Project team comprises of Project Manager, project management team, and other team members. It is their responsibility to manage stakeholder’s expectations. C Answer C is correct, Straight-line depreciation is a method of depreciation that divides the difference between an asset’s cost and its expected salvage value by the number of years it is expected to be used. Therefore, the calculation is:($9,S00 [cost]) - ($0 [salvage value at obsolescence])/10 years = $950 per year. A PMBOK® B PMBOK® The project is in execution and has been provided approved defect repairs as input. Since, they have been assigned; the next best thing to do is to implement them. A and C are results of implementing these inputs of
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approved defect repairs. D is conducted as part of Quality Assurance process, which is ongoing during project execution. B, however, is done during planning and not during execution of the repairs. PMBOK® SPI or CPI, if it is >1 then it Is good. Anything less than I is bad. Based on filtered= 0.92 implies the project is behind schedule; CPI = 1.0 implies it is under budget. PMBOK® Evaluation criteria are an output of the Plan Procurements process. Based on evaluation criteria proposals can be rated. PMB0K® page#183 CPI = EV / AC answers the question of how efficiently have the resources been utilized (because resources cost money). A CPI 1 means under budget and CPI I means over budget. B, D, and A are true PMBOK®
Audits are a tool and technique used in Perform Quality Assurance PMBOK® This is the PMBOK® definition of Administer Procurements process. The Administer Procurements Pr ocurements process p rocess belongs to the Monitoring a and nd Controlling Process Group. C PMBOK® Cultural differences play a major role during project reward and recognition time. Reward and recognition is part of ‘Develop Project Team’ activity. activity. B The concept of getting input from superiors, subordinates, and peers for the Individual Performance Review is called the 360 degree feedback. This is taken directly from the PMBOK® D According to PMBOK, this is the definition of Work Performance Information D PMBOK® A, B, and C are execution process activities, whereas D is Verify Scope (monitor and Controlling process). Correct answer is 0 B PMBOK® A
Answer B is correct. Whether the project is completed successfully, or terminated half way through, as a certified PMP your responsibility is to conduct the Verify Scope process before you leave the project. Therefore, A,
C, and D are all incorrect.
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PMBOK® Answers A, B, and D are all true from the PDM perspective. PDM is also called Activity-on Node (AON) not Activity-On-Arrow, so answer C is false and the correct choice. PMBOK® The problem statement is defining the characteristics of Scatter Diagram; therefore, answer C is correct. PMBOX® The correct answer Is A because developing a Project Charter is the Project Sponsor/customer’s responsibility, and not the Project Team’s activity. Answers B, C, and D are incorrect. Answer B is correct. The payback period is how long It takes to recoup your Investment. In this example, the cost was $500,000/$50,000 = 1O years. Therefore, Answers A, B, and C are incorrect. PMBOK® This is the PMBOK® definition of Closing Process Group. PMBOK® All above mentioned activities are all part of ‘Perform Integrated Change Control’ process process PMBOK®: Documenting high-level risks, assumptions, and constraints using historical data and expert judgment leads to a better understanding of the project limitations/boundaries. Assumptions and constraints are risk factors and It Is the project team’s responsibility to conduct analysis on these factors and prepare a response plan. PMBOK® Estimate Activity resources involves determining what resources (people, equipment, or material), and how much of each resource will be used. All of these activities take place in the Estimate Activity Resources Process. Answer C is correct. PMBOK® An important output of the Verify Scope Process is Accepted Deliverables. This is directly from the PMBOK® book. PMBOK The Schedule Baseline contains Schedule Information, the Cost Baseline contains cost information, and the Scope Baseline contains Work Package information. However, the Performance Measurement Baseline integrates Scope, Schedule, and Cost parameters of a project, as well as measuring any deviations for management control purposes. Thus, answer A is correct, PMBOK® Forming. Storming, Norming, Performing, and Adjourning are all part of ‘Develop Project Team’ tools ft techniques. Correct answer is ‘D’ ‘D’ PMBOK® Fast tracking means doing things in parallel. Crashing means allocating more people to the project work. Both are part of Schedule Compression Technique. PMBOK® Process Improvement Plan, Quality Metrics, Quality Checklist, and Quality Management Plan are all outputs of the Plan Quality Process. This is taken directly from PMB0K®. Answer B is correct. Opportunity cost is the total value of the project that was not selected. In this case Southfield City pavement construction project is $500,000 by not selecting this project you are Losing an opportunity of $500,000. PMBOK® After the release of project charter the immediate next step that the PM
should do is identifying the stakeholders. Then only he/she can collect
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PMBOK® The Staffing Management Plan is an output of Develop Human Resource Plan. Identifying and documenting the project rates and responsibilities, and reporting relationships, are all a part of Develop Human Resource Plan activities. PMBOK® The Project Management Plan defines how the project is Executed, Monitored and Controlled, and finally closed. Here, the question Is based on this process. Integration is a plan, Project Information System is a system, and Project Management Methodology is a methodology not a process. Therefore, the correct answer is B. PMBOK® The Development Team is not an event, it is a process. In the Project Life Cycle, team development efforts have greater benefit when conducted early, but should take place throughout the Project Life Cycle. Thus A is the correct answer. Answer B, the Work Breakdown Structure allows communication vertically and horizontally within the organization, as well as outside of the project. PMBOK®:
(D) is the definition of Schedule Baseline; (A) is the ‘Quality Baseline’ definition; (B) is the ‘Performance Measurement Baseline’ definition; and (C) is the ‘Cost Baseline definition. Thus, 0 is the correct answer, answer, D The major result of communication blockers and miscommunication as a whole is a conflict. D PMBOKC: Answer D is correct. Answer A is incorrect because it is not a correct PMBOK® term. Answer B is incorrect because a Project Manager has a low to moderate level of authority in these types of organizations. Answer C is incorrect because the PM does not have any authority in this type of organization. A PMBOK®: Rolling Wave Planning or Next Steps (definition). Planning ahead (D) is what is accomplished as part of Rolling Wave Panning. (B) and (C) are not complete descriptions of the problem statement. Correct Answer is ‘A’ ‘A’ B PMBOK® In Bottom-up Analysis, the team uses WBS and Activity List. But they do not use probable results (pessimistic, most likely, and optimistic). Probable results will be used only in PERT analysis. Thus, answer B Is correct. GERT Analysis is not an estimation tool. D Bureaucratic is a leadership style. The description of the question is Bureaucratic leadership style. This is explained in the Student Class Notebook. D Product verification - all work completed correctly and satisfactorily. This will be done at the Close of the project for that particular project. Every project creates its own unique product or service. Therefore, product verification does have much of a benefit for future projects A The standard deviation curve shows how far away you are from the median. To be further away from the median is better, and provides more stability than if you are closer to the median. D C Answer C is correct because project timelines are not associated with linear responsibility charts, also known as the Responsibility Assignment Matrix. Answers A, B, and D are correct because they can be used for these purposes.
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estimating is difficult. (A), (B) and (D) all attest to the various reasons for this difficulty, PMBOK® Answer D is correct. The Pareto Chart principles are also called 80/20 principles. Tight Matrix means keeping the Project Team member under one roof. Heuristics means ‘rule of thumb.’ The Halo Effect does not relate to Quality Control. Therefore, answer D is correct PMBOK® Entering data in your company’s staff -pool -pool database with an updated skill-set and proficiency and Individual Performance appraisals are all part of Closing Process Group PMBOK® The Work Authorization System (WAS) is the mechanism that triggers the work to be done, and is a catalyst for pushing the project forward. Answers A, C, and D are incorrect because they are not triggers for the project process to go forward. Your immediate step is to file a contract change request and obtain approval for the change. Any change to the contract, including termination of the contract, is a change that should be handled through the contract change control board/system, which Is a tool and technique of the Administer Procurements process. Actual Cost of S110M is Less than the Target Cost of $I2OM. Variance —Target Cost ($120M) - Actual Cost (S110M) =$10M. Per contract, the profit share ratio Is 50%-50%. Hence, you will receive $5M of this variance plus the Target Fee of $l5M. ALL together the Resultant Profit for you is $5M+$15M = $20M. Project archives contain all the documents pertaining to the project and Its performance, but not individual performance reports. Hence, (A) is incorrect. The rest of the steps are appropriate but need to be evaluated on project-toproject basis. PMBOK® All of the planning activities for a project are accomplished in the Planning Process Group. Determine Budget (allocating the cost to scheduled activities) is part of the Planning Process. As a result, answer B is correct. PMBOK® Project Cost Management should consider the effect of project decisions on the cost of using, maintaining, and supporting the product/service of the project. This broader view of costing is called Life Cycle Cost. Answer A is correct. PMBOK® D is an Initiation aspect of the project and it cannot happen concurrently PMBOK® Scope Baseline is an output of the Create WBS Process. According to PMBOK® book page#116, the Create WBS Process falls under the Planning Project Management Process Group. The Correct answer is B.
