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1. ________ is typically not referred to as a buffer type in critical chain project management.

Resource buffer

Free buffer

Feeding buffer

Project buffer

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2. A company has to make a choice between two projects, because the available resources in money
and kind are not sufficient to run both at the same time. Each project would take 9 months and
would cost $250,000.

1. The first project is a process optimization which would result in a cost reduction of $120,000 per year.
This benefit would be achieved immediately after the end of the project.

2. The second project would be the development of a new product which could produce the
following net profits after the end of the project:

1. year: $ 15,000
2. year: $ 125,000
3. year: $ 220,000
Assumed is a discount rate of 5% per year. Looking at the present values of the benefits of these
projects in the first 3 years, what is true?

Both projects are equally attractive.

The first project is more attractive by app. 7%.

The second project is more attractive by app. 5%.

The first project is more attractive by app. 3%.

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3. A production process has been defined as part of an industrial equipment manufacturing project. The
process is intended to produce steel bolts with a length of 20 cm. The control limits are 19.955cm
and 20.045cm.

The measurements made at the end of the process yielded the following results:

20.033cm, 19.982cm, 19,995cm, 20.006cm, 19.970cm, 19.968cm, 19.963cm, 19.958cm,

19.962cm, 19.979cm, 19.959cm.

What should be done?

The process is under control. It should not be adjusted.

A special cause should be investigated, the process should be adjusted.

The control limits should be adjusted.

The measuring equipment should be recalibrated.

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4. Your project management team includes two external consultants each from a different company.
You found that repeated conflicts between the two consultants already slow down project progress
and jeopardize achievement of objectives.

Which stage of team development can be difficult to overcome in such a situation?

Storming from Forming, Storming, Norming, Performing

Panic from Enthusiasm, Panic, Hope, Solution

Kickoff from Assignment, Kickoff, Training, Communicating

Frustration from Direction, Frustration, Cooperation, Collaboration

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5. During a project, earned value analysis is performed, resulting in the following numbers:

EV: 523,000; PV: 623,000; AC: 643,000.

Which results are correct?

CV: +120,000; SV: +100,000

CV: +100,000; SV: +120,000

CV: -100,000; SV: -120,000

CV: -120,000; SV: -100,000

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6. A project manager spent some days to create a multi-page document, which he called project
charter. The document should have been issued by the project sponsor. The sponsor found the
document outsized and asked for a condensed document.

Which of the following is usually not an element of the project charter?

The authority level of the project manager

Detailed control account and work package descriptions

The business need that the project was undertaken to address

High-level risks

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7. A document called ____________ is created by decomposing the project scope into smaller, more
manageable elements.

Scope Statement

Network Logic Diagram

Work Breakdown Structure

Requested Change

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Which of the following tools is used to create a risk management plan?

8.

Risk planning meetings

Documentation reviews

Data precision rankings

Diagramming techniques

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9. In order to speed up a project, you made a decision to fast-track a phase currently performed with
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five team members, and another one which was planned to begin in four weeks time with another
five team members.

Which of the following activities should you do first?

Make sure that all exit criteria of the consecutive phase have been met to ensure the flow of
communications in a team situation which is more complex by a factor of 2.
Make sure that all entry criteria of the previous phase have been met by planning and
performing a phase gate meeting to assess technical aptness.
Make sure that all exit criteria of the previous phase have been met by planning and
performing a phase gate meeting to assess technical performance.
Restructure your team and delegate tasks in order to ensure the flow of communications in a
team with the number of communication channels increased by a factor of 4.5.

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10. A project manager has been asked to support an internal project request by developing a business
case.

What kind of information is the person expected to provide in the document?

The detailed information from a business standpoint to determine whether bidding for the
customer project will be successful.
The detailed information from a project management standpoint to determine whether the
project will be successful.
The detailed information from a technical standpoint to determine whether the project will be
successful.
The necessary information from a business standpoint to determine whether the project is
worth the investment.

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You found the following earned value analysis information for a project that was recently closed-
out:
11.
SPI = 0.7, CPI = 1.0

The project has been cancelled while it was executed. At that time the project was behind
schedule and on budget.
The project's deliverables have all been finished. The project came in behind schedule but on
budget.
The project's deliverables have all been finished. The project came in ahead of schedule but
on budget.
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The project's deliverables have all been finished. The project came in on schedule but over
budget.

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Which should be included in a requirements management plan?

12.

The document should trace requirements to project scope / WBS deliverables.

It should describe how requirements activities will be planned, tracked, and reported.

It should trace high-level requirements to more detailed requirements.

It should trace requirements to business needs, opportunities, goals, and objectives.

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13. In a traditionally drawn decision tree, a circle represents ___________.

a chance to which no expected monetary value can be assigned so that a likely pay-off can
not be shown.

a decision to which no expected monetary value can be assigned so that a likely pay-off can
not be shown.

a chance to which an expected monetary value may be assigned to calculate the most likely
pay-off.

a decision to which an expected monetary value may be assigned to calculate the most likely
pay-off.
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A project management team has subcontracted work to a service company. Which of the following
tools is the best choice to assure that this company will be able to meet the quality requirements of
14. the project?

Quality audit

Deliverable inspection

Fixed price contract

Service level agreement

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15. With your team you are using judgment from subject matter experts to identify and analyze project
risks. There is a small number of experts available, but some of them have long been in a teacher-
student or manager-assistant relationship.

Which of the following techniques can ensure best that there is no dominating opinion during an
expert review?

Peer review

SWOT analysis

Delphi technique

Monetary value calculation

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16. You are running a project for a customer based on a cost-reimbursable contract with the following
terms:
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1,000,00
Target costs: $
0
Fixed fee: $ 100,000
Benefit/cost sharing: 80% / 20%
1,200,00
Price ceiling: $
0
Which is the PTA (= point of total assumption, break point) of the project?

$1,300,000

$1,500,000

$80,000

$1,125,000

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17. During execution of a project which is performed for a customer on a T&M (time and material)
contract base, a new project manager is taking over the assignment.

He discovers that two members assigned to the project have charged time without performing any
work for the project customer. Upon further investigation, he determines that this occurred because
there have been no other project assignments open for these employees. The customer is unaware
of these facts.

What should the project manager do?

Try to find some productive work for these staff members in the project and leave them on
the team.
The best thing is to do nothing. The customer will not realize the problem anyway.

Try to find a responsible person for the over-assignment who can be made accountable.

Take the two people off the team immediately and arrange for the refund of the excess
charges to the customer.

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18. Start dates in the following network logic diagram are defined as early morning, finish dates are
evening.

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

Activity B has a free float of 10 d.

Activity B has a total float of 10 d.

Activity A has a free float of 10 d.

Activity A has a total float of 10 d.

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19. Your project is executed with a globally spread virtual team. The project progress has been found to
be too slow. Which measure is most likely to immediately speed up the project?

Technical training for all team members

Daily phone conferences and detailed reporting

A team meeting at a location convenient to all team members

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Collocation of team members at a suitable place

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A project management team wants to procure some customized products which are available in
identical grade and quality from many vendors. What should be included in the procurement
20. package to ensure that their offers will be comparable?

A statement of work describing the needs of the project in sufficient detail to enable vendors
to make suitable proposals
A statement of work specifying attributes and metrics of the requested deliverables in detail to
allow vendors submission of bids
The approved project scope statement, the WBS which should be broken down to work
package level and the WBS dictionary
The risk management plan and the reports from those risk management reviews which have
been made so far

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21. Which of the following becomes increasingly important in a virtual team environment?

Requirements engineering

Communication planning

Formal procurements closure

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Network diagramming

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22. You are assigned as the project manager to a project which is executed for a customer under FP
contract. Your customer informed you this morning that they insist on certain "refinements" of the
project scope.

You agree that the requested actions make really sense to the project, but believe that they
constitute a major change increasing the project scope. What should you do next?

Accept the request of the customer. Diligently document the additional costs and working
hours spent by yourself and the team on the implementation of the change and invoice these
to the customer at appropriate rates.

Perform earned value analysis to assess the current status of the project and get all the
numbers you need to communicate the case to the change control board which then will have
to make the best decision regarding the customer request.

Check the contract, the project charter, the scope statement and other documents related to
the project and the contract. Implement ADR (alternative dispute resolution) procedures if the
conflict cannot be resolved otherwise.

Talk to the project sales department and find a joint solution with them how to best reject the
request considering the commercial and strategic value of the customer to the organization
you are working for.

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23. A prime contractor in a customer project under CPFF contract has run into unexpected technical
problems. Fixing them will require a lot of additional work to be done.
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The company made a decision to book more staff and equipment from their subcontractors in order
to adhere to the agreed timeline. The customer agreed to this decision.

What will most likely happen?

The contractors indirect costs will increase and the customers payment for them will
increase, too.

The contractors indirect costs will increase, but the customers payment for them will not
increase.

The contractors indirect costs will not increase, but the customers payment for them will.

Both the contractor's indirect costs and the customers payment for them will not increase.

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24. A project management team is evaluating the causes that might contribute to unsatisfactory
performance and quality. Which of the following statements is not true?

Normal process variation is attributable to random causes and sometimes also called "white
noise".

Special causes are easier to predict and handle than random causes (also called common
causes).
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Special causes are unusual events which are difficult to foresee and often produce outliers.

A process can be optimized to limit the bandwidth of variations due to random causes.

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25. You are performing a project management audit in your company and find that most of the project
plans are neither consistent nor up-to-date.

Which of the following statements is not true?

Projects should never be executed without a valid, updated and working project management
plan.
The consistency of the project management plan is secondary because it is only the results
that matter.
A great deal of effort is required to develop and update a project plan, but the benefits include
less pressure on all stakeholders and a resulting product that will satisfy the requirements.
Poor planning and insufficient updating of project management plans are common reasons for
cost and time overruns.

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26. You want to perform active risk acceptance. What should you do?

Create contingency reserves in resources, money and time.

Develop a plan to minimize impact in case that an identified risk occurs.

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Develop a plan to minimize the probability of occurrence for identified risks.

Make additional resources available to speed up the project.

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27. A project manager made 3-point estimates on a critical path and found the following results:

Assuming 3 sigma precision level for each estimate, what is the standard deviation of the allover
path?

App. 4.2 days

App. 5.2 days

App. 6.2 days

You can not derive the path standard deviation from the information given.

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When do bidder conferences normally take place?

28.

After the contract has been awarded to keep alternatives open.

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After submission of bid or proposal, but before contract award.

Prior to the submission of a bid or proposal by the bidder.

After technical meetings with bidders to discuss contract requirements.

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29. What is defined by control limits?

A measuring instrument solely used to describe process capability. The process is found
capable if the 3 sigma range is exceeded by not more than 0.3% of a tested sample lot.

The limits of the six sigma area on either side of a control chart to plot measured values; data
found outside the area are out of specification and can lead to rejection of an entire batch.

The area consisting of typically three standard deviations on either side of a mean value of a
control chart to plot measured values found in statistical quality control

The area consisting of typically three standard deviations on either side of a mean value of a
control chart to plot measured values found in quality assurance

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The scope baseline consists of what?

30.

Scope statement, WBS, and WBS dictionary

Cost baseline, quality baseline and schedule baseline

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Configuration management plan and configuration identification document

Procurement statement of work and project scope statement

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31. Activity 1 has a duration of 20 days, activity 2 of 10 days, activity 3 of 5 days and activity 4 of 6
days.

What is the minimum total duration between the milestones A and B?

36 days

37 days

39 days

42 days

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Which tool and technique is used in the processes Create WBS and Define activities?

32.

Nominal group technique

Human resource assignment

Brainstorming

Decomposition
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33. Which of the following statement(s) on whistleblowing is/are not true?

a. It is a term used to define an employees decision to disclose information on unethical, immoral or

illegal actions at work to an authority figure.
b. An employee should always discuss the matter with people external to the company before following
the "chain of command" and discuss it with the immediate superior.

c. The consequences of whistleblowing are often extreme and might include being branded as an owner of
bad judgment, layoff, civil action and imprisonment.

d. Carefully performed whistleblowing can lead to the end of unethical business practices.

b, c

c, d

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34. Which of the following statements is not true?

Attribute sampling is the process of assessing whether results conform to specifications or not.

Prevention means keeping errors out of the process by applying actions before the process
starts changing its input.

Variables sampling means that the result is classified into one of the 3 categories:
"acceptable" - "acceptable after rework" - "rejected".
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Inspection is often mainly done to keep errors out of the hands of the customer instead of as
a means of process control.

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35. Which statement describes best why you should document assumptions?

Assumptions might prove to be wrong. Knowing which assumptions were incorrect allows
baseline adjustments in case of project crisis.

Assumption analysis is a valuable tool and technique to explore the validity of assumptions
during risk identification.

Assumptions limit the project management team's options for decision making because they
can not be controlled by the team.

In case of schedule or budget overruns, the documentation of assumptions supports a clear

assignment of responsibility.

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36. Which is normally not regarded as an element of cost of quality?

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Prevention costs

Maintenance cost

Appraisal costs

Failure costs

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37. You have recently been assigned as a project manager to a new B-O-T (build, operate, transfer)
capital project. Reviewing the initial documentation you found out that it has been calculated with a
very small margin during operations of its product for the shareholders. What should you do?

As you are not responsible for lifecycle costing, you don't have to worry about operation
profits. Focus on project costs from initiation through handover.

Ensure maximum profits by buying the best and cheapest items, components and
modulespotentially from a big number of different suppliersand integrating them.

Create a realistic plan broken down to a sufficient level of detail. Perform all risk management
processes. Ensure real-time communications with all stakeholders.
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Try to get a second project manager assigned to share decision making and accountability to
shareholders with the person.

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38. A project is handled by departments of an organization and expedited by a project coordinator.

Which of the following statements is most likely to be true?

The performing organization is a weak matrix.

The performing organization is doing "management by projects".

The performing organization is a strong matrix.

The performing organization is projectized.

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39. You are project manager in a global project with a team consisting of people from various countries.
What can you try to prevent misunderstandings due to cross-cultural differences?
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Use all communication methods available that are suitable for the team and follow up in
writing when communicating verbally. Remember that cultural and individual diversity may
help project teams solving unforeseen problems during the course of the project.

When you are about to form a team for your project, keep in mind that some cultures are
developed, others are more primitive. Some have values, some not. You should consequently
avoid choosing members from countries with cultures that are not similar to your own.

Cultural dilemmas can prevent any project from being successful. They should therefore be
smoothed or suppressed so as to make sure that they cannot disrupt project work. Your effort
should concentrate on communication that can help reach that goal.

As norms regarding communication habits differ significantly across various cultures,

communicating between people from different countries should only be done using language.
The nonverbal dimension simply bears too many risks.

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40. Which statement on conflicts is true?

Conflict resolution should focus on people, not issues.

Conflict is natural and forces a search for alternatives.

Conflict should always be handled in private and not in the team.

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Too much openness is a common cause of conflict.

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41. A change request in a project has been rejected some weeks ago. Yesterday, the project manager
found out that it nevertheless has been implemented by the team members, who knew of the
change request, but not of the rejection.

In order to avoid such a situation, rejected change requests should be consistently communicated to
stakeholders through which process?

Report performance

Verify scope

Perform integrated change control

Monitor and control risks

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42. What is a trigger in project risk management?

An expected situation causing an unidentified risk to occur

A warning sign that a previously identified risk might be occurring or has occurred
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An unexpected situation causing an identified risk to occur

An unexpected situation causing an unidentified risk to occur

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43. According to the project plan, a contractor is scheduled to deliver some software components today
afternoon. A regular payment is due to be made to this contractor tomorrow.

You and your project team received a note this morning informing you that the software delivery
will be delayed by 2 weeks.

What should you do right now?

You should delay the payment also for 2 weeks.

You must immediately find a different contractor.

You should conduct a meeting with the contractor to resolve the delivery issues before making
the payment.
You should make the payment and reschedule the project plan.

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44. In a software company a large number of simultaneously performed projects utilize the same
groups of human and other resources.
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What is the term commonly used for this situation?

Concurrent engineering

Resource over-allocation

Resource pooling

Program management

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45. What does the acronym RACI commonly stand for in project management?

Responsible, Accountable, to be Consulted, to be Informed

Remote, Attached, Connected, Integrated

Risk Analysis and Caution Initiative

Randomly Accessible Cashflow Information

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46. You have used estimates made by your team members and applied the critical path method to
compute a network logic diagram for your project. Then you found out that it cannot be sufficiently
optimized for scarce resources and fast progress towards a given deadline. What should you do
next?
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Apply resource leveling heuristics to uncritical activities only.

Reduce estimates on duration and work efforts by an adequate percentage.

Apply Three-point estimation and critical chain project management.

Remove physical constraints and replace hard logic with soft logic.

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47. Liquidated damages (LDs) are contractually agreed payments in order to...

...give the contractor an incentive to meet an aggressive schedule or challenging quality

objectives.

...penalize the contractor for late completion of a project or failure to meet specifications.

...cover the customer's costs caused by late completion or failure to meet specifications by the
contractor.
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...make a bid or proposal binding for the offerer while the customer has time to select among
various bidders.

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48. What should not be covered by a risk management plan?

Roles and responsibilities for handling project risks

Timing of project risk management activities

The methodological approach used for risk management

Individual risks and potential responses to them

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49. You are assigned as the project manager to a project which had a one-time cost variance in the past
caused by unexpected rework which has meanwhile been finished.

You perform earned value analysis and get the following results:

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

BAC is 500,000.
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What is right?

EAC = 550,000

EAC = 525,000

EAC = 500,000

EAC = 425,000

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50. An estimation has been made that the construction of a residential home will cost a certain amount
per square foot of living area. This is an example of what type of estimating?

Analogous estimating

Bottom-up estimating

Top-down estimating

Parametric estimating

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51. What is true for prototypes?

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Prototyping causes significant costs and should be avoided wherever possible.

They are tangible and allow for early feedback on requirements by stakeholders.

Prototypes are mostly developed toward the end of a design or build phase.

Prototypes increase the risk of misunderstandings between developers and users.

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52. What is a constructive change?

A change request that helps improving the project and its product, service or result and is
discussed generally in a friendly style.

A direction by the buyer or an action taken by the seller that the other party considers an
undocumented change to the contract.

A field change or ad-hoc change mandated by the project customer in a public construction
project.

A change request which will lead to the re-construction of an older version of the project
performance baseline by the contractor.
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53. Which of the following is generally not regarded to be a motivator according to Frederick Herzberg?

Working conditions and interpersonal relations

Responsibility for enlarged task

Interest in the task

Recognition for achievement

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54. What is true for modern project management? Project managers need...

... to have a strict standing in negotiating

... to show experience in tricking business partners

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... to be team players and facilitators instead of "bosses"

... to be strongly linked to local traditions

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55. You are the project manager in an engineering project and have recently signed a contract with a
software vendor for the development of a complicated control solution. The software will be used to
control machinery equipment which your project team is currently developing. The contract is a
lump-sum contract. The contractor has target cost estimated which seem rather low to you. Which
of the following statements is not true for this situation?

It is the contractor's risk in this type of contract that their profit may vanish if costs have been
underestimated.

This form of contract should only be chosen when all the requirements for the building of the
product are well-known by all parties involved.

In a fixed-price contract, change requests can cause issues regarding additional time and
extra costs for the changes to be applied.

It is likely that your organization may have to assume any unexpected additional costs for the
software development.

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A review to determine whether of project activities comply with organizational and project policies,
processes, and procedures is commonly called
56.

Quality auditing

Inspection

Quality testing

Reject screening

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57. Which of the following is true regarding the code of accounts?

It allows one to easily identify the breakdown level of the item in the resource structure.

It describes the coding structure used by the performing organization to report financial
information in its general ledger.

It is the collection of unique identifiers generally assigned to WBS items.

It defines ethical behavior in the project and the responsibilities to the customer and the
profession.

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58. You are the manager of your company's project management office. The company is running many
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concurrent projects; most of them share a resource pool of technical staff. Understanding how
resources are utilized across projects has been found essential to overall project performance,
including cost effectiveness and profitability.

This morning you received a message that the resource pool members will be unable to perform as
planned for the next months because the overall work load has grown too high and while delays are
adding up, the morale of the staff is going down.

What should you do next?

Ensure that quantitative information for all projects is made available in a uniform and reliable
fashion and verify that the project management methodology is adhered to. Then consolidate
the information to get an understanding of the problems related with the use of shared
resources.
Implement an enterprise project management software solution which is able to level the
human resources across the various projects and which has the capability to model resource
assignment on a percentage level thus optimizing resource utilization for the overall
organization.
Do nothing related to the described problem unless you are explicitly requested by the
organizations upper management. Supporting decision making on the level on which project
portfolio management is done, is not the project management office's business.
Evaluate project management software which supports planning and scheduling across
enterprise-wide project portfolios. Avoid managing the availability of shared enterprise
resources for the projects run by an organization because this is not the business of a project
management office.

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You have been criticized that certain specifications in your scope statement do not pass the test for
SMART objectives. What are SMART objectives?
59.

Objectives specified in far more detail than necessary for a execution of a successful project.

Easily achievable objectives which help you reducing the pressure on yourself and the team.

Objectives that should be achieved in order to attain formal recognition by both the customer
and the project sponsor.
Objectives that are described using specific, measurable, assignable, realistic and time-related
specifications.

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60. You have been assigned as a project manager to a software project. While you and your team are
working on a WBS (work breakdown structure), estimations for activity durations based on the
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activity list vary significantly. Which additional documents may help you clarify this situation?

Milestone list and scope baseline.

Project schedule network diagrams and human resource plan.

Activity cost estimates and scope baseline.

Activity attributes and project scope statement.

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61. You are performing earned value technique on your project.

After budget approval, an additional and unexpected cost item has been identified, which made the
project more expensive some weeks ago. The item has meanwhile been paid by the project team,
and it is expected that for the remaining duration of the project, costs will be as budgeted.

In this case, which is the best formula to calculate EaC (Estimate at Completion)?

EaC = BaC - CV

EaC = BaC / CPI

EaC = AC + BtC / CV

You can not compute the EaC.

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62. During a company event, you had the opportunity to talk to a colleague project manager. He told
you that in his current project actual costs are 15% under cumulated costs budgeted for today.

What do you think?

The information given to you by the colleague is not sufficient to assess project performance.

The project will probably be completed with total costs remaining under budget until the end.

A significant cost increase during the further course of the project will probably bring the costs
back to baseline level.
Original cost forecasting and budgeting for the project must have been poor to allow this
variance.

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63. What is the meaning of a concept called the "Journey to Abilene"?

Project managers should visit their customers far more often than what is usual in order to
avoid misunderstandings and bad emotions.

International projects may have an increased need for traveling which can lead to additional
costs and troubles with time zones.

Committee decisions can have the paradox outcome, that a jointly made or approved decision
is not desired by any individual group member.

A project is a temporary endeavor undertaken to create a unique product, service or result.

Repeating it would be similar to making the same journey twice.
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64. Which of the following statements describes best the relationship between project phases and the
project life cycle?

The project life cycle includes the time when the project is performed and the expected
product lifespan after that.

In project management, the sequence of project phases and phase gates is often referred to
as project life cycle.

The project life cycle is regarded as a sequence of project activities while phases are defined
to control overlapping activities.

The project life cycle describes how iterations of project management processes are used
when a project schedule is developed.

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Which is an appropriate order in most project situations for the development of scope-related
documents?
65.

1. Project SOW (statement of work),

2. Project charter,
3. Project scope management plan,
4. Project scope statement,
5. WBS (work breakdown structure) and WBS dictionary.
1. Work breakdown structure,
2. Scope statement,
3. Project charter,
4. CSOW (contractual statement of work),
5. Contractual work breakdown structure
1. Feasibility study
3. Contract,
4. CWBS (contractual work breakdown structure),
5. Scope of work descriptions,
6. PID (project initiation document).
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1. BOM (Bill of materials),

2. CAP (control account plan),
3. Project charter
4. Change management plan,
5. Scope baseline.

See references
Marked for review

66. What is the S-curve in project management?

A graph that is generated if a normal curve is integrated.

A graph that is to be integrated to generate a normal curve.

A metaphoric description of the short term uncertainties that are present in every project.

The graph that describes the typical growth of earned value during the course of the project.

See references
Marked for review

An output of the process Estimate activity resources is a document called "activity resource
requirements". It identifies the types and quantities of resources...
67.

...while the term resources is limited to equipment and materials.

...required for each activity in a work package.

...while the term resources is limited to human resources.

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...to be obtained solely from the performing organization.

See references
Marked for review

What is not the purpose of configuration control when configuration management is applied in a
project?
68.

Verification that the configuration identification for a configuration item is accurate, complete,
and will meet specified program needs.
Ensuring that proposed and approved changes to configuration items are fully analyzed.

Ensuring that proposed and approved changes to configuration items are fully documented.

Managing and controlling the frequently requested changes to a project by applying agreed
rules.

See references
Marked for review

Which statement describes best the meaning of the term cost baseline?

69.

A cost baseline is always created by translating time-phased cost information into cost data on
activity or work-package level.
A cost baseline is an approved time-phased budget that will be used to measure and monitor
cost performance on the project.
Data to draw a cost baseline can be easily generated and updated as necessary from
information related to actual project cost.
A cost baseline is usually displayed in the form of an inverse S-curve drawn from the
beginning of the project until data date.

See references
Marked for review

70. Which is not true in regard of RoI (return on investment) for a project?
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It defines the cumulated net income from an investment at a given point in time or during a
defined period.

It includes investment, direct and indirect costs and may include allowances for capital cost,
depreciation, risk of loss, and/or inflation.

It is most commonly stated as a percentage of the investment or as a dimensionless index

figure.

It is the time when cumulated net income is equal to the investment.

See references
Marked for review

A project sponsor requested earned value data on two concurrent projects from the project
managers. Both projects are regarded as equally important and strategically beneficial and have
71. been finished by over 80%. He received the following information:

Project A:
PV: $1,800,000
EV: $2,300,000
AC: $2,100,000

Project B:
PV: $2,000,000
EV: $1,500,000
AC: $1,600,000

The sponsor considers to shift some resources from project A to project B to speed up the second
project which is currently behind schedule.

What is the most likely outcome of such a measure?

Changing team assignments during late course of a project typically increases cost efficiency.

Changing team assignments during late course of a project typically increases time efficiency.

According to the law of diminishing returns, the consolidated cost variance of the two projects
will decrease.
According to the law of diminishing returns, the consolidated cost variance of the two projects
will increase.
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See references
Marked for review

72. Which of the following statements describes best the relationship of quality and grade?

Low grade is always a problem; low quality may be overcome by a good rework and repair
process.

Grade is a category or rank given to entities having different functional requirements but the
same need for quality.

Both quality and grade can often be improved through intelligent measuring, testing and
examining.

Low quality is always a problem as it bears on the ability of an item to meet requirements; low
grade may sometimes be acceptable.

See references
Marked for review

Network templates which contain only portions of a network are often referred to as

73.

Sub-networks or fragment networks

Subprojects

Programs

WBS items
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See references
Marked for review

74. You have been asked to calculate the internal rate of return (IRR) of a project? What will you
assess?

The time period needed to pay back the investment from a project when future income is
discounted.

The inherent discount rate or investment yield rate produced by the project's deliverables over
a pre-defined period of time.

The rate of negative risk that can be accepted for a project without turning the expected net
present value negative.

The expected benefit from a projects deliverable calculated as a percentage of the original
investment over a specified time period.

See references
Marked for review

You have just created the following network logic diagram to describe the planned flow of activities
for your project which will start tomorrow:
75.

Which potential inconsistency in the diagram should you solve right now to ensure that the activities
and the milestones "Start" and "A-F finished" are correctly linked?
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Activity E is open ended (a "dangle") in relation to the finish milestone path convergence.

Activity F is open ended in relation to the path divergence after the start milestone.

You cannot calculate a critical path when lags and/or leads are calculated in percent.

Activities E to F need another task drawn as a hammock to calculate level of effort.

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Wrong
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Correct
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(1) A business case, which helps to determine whether a project is worth

the investment, is created on the basis of the following except for

A. Market Demand
B. Ecological Impacts

C. Social Need

D. Availability of Funds

Answer:D
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Hint: Availability of funds is not a criterion for a business case.

(2) You are in charge of developing a new product for an organization.

Your quality metrics are based on the 80th percentile of each of the last
three products developed. This is an example of:

A. Statistical sampling
B. Metrics

C. Benchmarking

D. Operational definitions

Answer: C

Hint: PMBOK 5, Page 116, Benchmarking (definition)

(3) The two closing procedures are called:

A. Contract closure and scope verification

B. Close Procurements and Close Project

C. Project closure and product verification

D. Project closure and lessons learned

Answer: B

Hint: PMBOK 5, Page 61, Table 3-1 Closing Process Group

(4) During the develop schedule process, the Project Manager may have
to go through several iterations of the schedule before establishing the
schedule baseline. All of the following are tools and techniques that may
be used during this process:

A. Critical Path Method, GERT, Resource Requirements

B. Resource Leveling Heuristics, Mathematical Analysis, Calendars

C. Schedule compression, Resource optimization techniques, Critical chain

method

D. GERT, PERT, Leads and Lags

Answer:C

Hint: PMBOK 5, Page 61, Table 3-1 Develop Schedule: Tools &
Techniques
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(5) Which of the following models of conflict resolution allows a cooling

off period, but seldom resolves the issue in the long term?

A. Problem solving
B. Withdrawal

C. Forcing

D. Smoothing

Answer:B

Hint: Withdrawal is a temporary solution that evades problem-solving as

much as possible.

(6) In communication, the receiver decodes the messages based on all

but the following:

A. Culture
B. Semantics

C. Language

D. Distance

E. Knowledge

Answer: D

Hint: Distance isn't among the criteria for interpreting a message

received

(7) How much time does the typical project manager spend
communicating both formally and informally?

A. 40-60%
B. 50-70%

C. 60-80%

D. 75-90%

Answer: D

Hint: with and among all the stakeholders including sponsor, customers,
vendors, project team, PMO and upper management.

(8) Group brainstorming encourages all of the following except:

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A. Team building A project manager facilitates communication

B. Analysis of alternatives

C. Convergent thinking

D. Uninhibited verbalization

Answer: C

Hint: The objective of Brainstorming is to generate diverse ideas.

(9) The critical element in a project's communication system is the:

A. Progress report
B. Project directive

C. Project manager

D. Customer

Answer: C

Hint: A project manager facilitates all project-related communication

(10) System integration consists of:

A. Assuring that the pieces of a project come together at the right time
B. Planning for contingencies that may occur throughout the life cycle of the
project

C. The pieces of the project function as an integration unit

D. a and c

Answer: D

Hint: Integration means bringing together of the components.

(11) Performance reviews are held to:

A. Correct the project manager's mistakes.

B. Provide for answers for upper levels of management

C. To assess project status or progress

D. To apprise the project costs and cost trends of the project

Answer: C
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Hint: Definition of Performance reviews, Page 549, PMBOK 5

(12) A complex project will fit best in what type of organization?

A. Functional
B. Cross-functional

C. Matrix

D. Balanced

Answer:C

Hint: A matrix organization is best for complex projects because of the

mix of functional expertise and project management focus.

(13) Which of the following could be an appropriate WBS code for a work
package at the fourth level in a WBS where the top level code is 1.0?

A. 1.4
B. 1.1.1.1

C. 1.2.3.4

D. a and c

E. b and c

Answer:E

Hint: Both B and C follow the correct format

(14) Which of the following Project Scope Management processes

involves subdividing the major project deliverables into smaller, more
manageable components?

A. Plan Scope Management

B. Define Scope

C. Validate Scope

D. Control Scope

E. Create WBS

Answer:E

Hint: Project deliverables are broken into work packages un Create WBS
process
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(15) The review of key deliverables and project performance at the

conclusion of a project phase is called:

A. phase exit
B. kill point

C. stage gate

D. a and c

E. a, b and c

Answer:E

Hint: PMBOK 5, Page 41, Sec 2.4.2 Project Phases

(16) Project scope is:

A. All the work that must be done in order to deliver a product according to the
specified features and functions, only.
B. The features and functions that are to be included in a product or service.

C. A narrative description of work to be performed under contract.

D. a and b

E. all of the above

Answer:A

Hint: Project scope means all the work and only the work required to
complete the project successfully

(17)The unique identifiers assigned to each item of a WBS are often

known collectively as:

A. The work package codes

B. The project identifiers

C. The code of accounts

D. The element accounts

Answer:C

Hint: PMBOK 5, Page 132, WBS

(18) The sender of a message is responsible for:

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A. Confirming the message is understood

B. Ensuring the receiver agrees with the message

C. Scheduling communication exchange

D. Presenting the message in the most agreeable manner

Answer: A

Hint: The objective of communication is to ensure that the message is

conveyed.

(19) What are the best uses of PERT:

A. Used in the planning phase to do " what if for the project.

B. Assist in the controlling of changes to the project.

C. Is used in the process of preparing a WBS for the project.

D. To measure future consequences of activities.

E. a and d.

Answer: E

Hint: PMBOK 5, Page 553, See PERT definition

(20) Change requests can occur due to:

A. An external event such as a change in government regulation.

B. An error or omission in defining the scope of the product.

C. An error or omission in defining the scope of the project.

D. a and c

E. all of the above

Answer:E

Hint: Change requests are made to ensure that the planned outcome of
the project is achieved

(21) A project management plan is:

A. A A formal, approved document used to guide project execution, monitoring,

and control.
B. A document issued by senior management that provides the project manager
with the authority to apply organizational resources to project activities.
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C. A narrative description of products or services to be supplied.

D. A document describing the organizational breakdown structure of the

company.

Answer:A

Hint: PMBOK 5, Page 553, See Project Management Plan definition

(22) Which of the following is NOT an example of a type of schedule

report?

A. Gantt chart
B. Milestone chart

C. Fishbone diagram

D. Network diagram

Answer:C

Hint: A fishbone diagram is meant for cause and effect analysis.

(23) The most important criteria in deciding to initiate a project selection

method is:

A. Stakeholder's vision
B. Low cost opportunity

C. Environmental consideration

D. Capability

Answer:C

Hint: PMBOK 5, Page 10, Projects and Strategic Planning

(24) Which of the following is correct order for stages in Tuckman

ladder?

A. Foaming, Steaming, Norming, Perfuming, Dispersing

B. Forming, Storming, Protecting, Norming, Adjourning

C. Forming, Storming, Norming, Performing, Adjourning

D. Framing, Storming, Norming, Protecting, Adjourning

Answer:C
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Hint: PMBOK 5, Page 276

(25) Three major processes in Project Human Resource Management

are:

A. Staff recruitment, project staff planning and team building

B. Plan HRM, Acquire Project Team and Develop Project Team

C. Rewarding, salary reviews and penalties

D. Staff acquisition, staff training, staff deployment

Answer:B

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

(26) A project is defined as:

A. A process of considerable scope that implements a plan.

B. An endeavor, which is planned, executed, and controlled; performed by
people; and constrained by limited resources.

C. A temporary endeavor undertaken to create a unique product or service.

D. An objective based effort of temporary nature.

Answer:C

Hint: A project is always temporary and every project gives a unique

product or service.

(27) Which of the following is not a General management technique?

A. Make-or-buy analysis
B. Analysis of alternatives

C. Applying PMBOK concepts

D. Lateral thinking

Answer:A

Hint: Application of PMBOK is project management

(28) According to PMBOK, project management processes are organized

into following order of process groups:

A. Initiating, planning, executing, monitoring, and closing

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B. Designing, developing, testing, and implementing

C. Initiating, designing, planning, executing, controlling, and closing

D. Initiating, planning, executing, monitoring and controlling, and closing

Answer:D

Hint: PMBOK 5, Project Management Process Groups

(29) ___________ must be measured regularly to identify variances

from the plan.

A. Stakeholder requirements
B. Project performance

C. Schedule progress

D. Cost

Answer:B

Hint: Project performance must be measured at regular intervals.

(30) A project kick off meeting is usually conducted to:

A. Setup project team and announce the PM assignment

B. To draft project charter

C. Build up team spirit

D. Define project scope and develop WBS

Answer:A

Hint: A kick-off meeting gets the project team onboard and announces
the manager

(31) Which of the following is not an external-unpredictable risk?

A. Changes in government regulations

B. Natural hazards

C. Unexpected environmental side effects

D. Inflation

Answer:D
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Hint: Inflation rate is known and predictablen

(32) Maslow ranked Human needs from the highest to lowest:

A. Self actualization; self promotion; social; security and physiological needs

B. Self esteem; self actualization; social; security and physiological

C. Self actualization; self esteem; social; security and physiological

D. Self fulfillment; self esteem; social; security and physiological

Answer:C

Hint: Refer Abraham Maslow's hierarchy of needs.

(33) Which of the following statements concerning contract type is

correct?

A. A fixed price contract contains the most risk for the buyer.
B. Cost reimbursable contracts offer sellers the highest profit potential.

C. Time and materials contracts are hybrid of cost reimbursable and fixed-price
contracts..

D. Unit price contracts are illegal in many jurisdictions.

Answer:C

Hint: PMBOK 5, Page 364 Time and Material Contracts

(34) Herzberg identified factors, which, if present, will lead to increased

motivation. A typical factor would be:

A. Good supervision
B. Job security

C. Regular promotions

D. Good salary

E. A dental plan

Answer:C

Hint: Refer to Herzberg's Two Factor Theory

(35) Your customer ask for a small change in the project, which was not
budgeted in the project. It is a small effort as compared to the total
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project and you need the goodwill for a multimillion dollar on the
pipeline. You will

A. Refuse to do the work

B. Agree to do the work at no charge

C. Do the work and bill him later

D. Assess the cost and schedule impact and tell them you will formalize the
change request

Answer:D

Hint: Impact of every change must be assessed and should go through

change control

(36) You are responsible for ensuring that your seller's performance
meets contractual requirements. For effective contract administration,
you should:

A. Hold a bidders conference

B. Establish the appropriate contract type

C. Implement the contract change control system

D. Develop a statement of work

Answer:C

Hint: PMBOK 5, Page 383, Sec 12.3.2.1 Contract Change Control System

(37) The three major causes of change on a project are:

A. Replacement of the project manager or key project team members; changes

in priorities by senior management; and contractual difficulties..
B. Changes in the relative importance of time, resources, or cost ; new
knowledge about the deliverable; and technological uncertainty

C. Errors in the initial assessment of how to achieve the goal of the project; new
information about the project deliverable; and a new mandate

D. Unavailability of resources promised by the functional managers; cost

overruns; and changes in customer requirements

Answer:C

Hint: Scope change and estimation errors are the main causes
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(38) The purpose of the review of deliverables and project performance

at the conclusion of a project phase is to:

A. Determine how many resources are required to complete the project

according to the project baseline
B. Adjust the schedule and cost baselines based on past performance

C. Obtain customer acceptance of project deliverables

D. Determine whether the project should continue to the next phase

Answer:D

Hint: Closure of a project phase is a point to reassess the ongoing

project progress and change or terminate the project if necessary.
PMBOK 5, Page 41, Sec 2.4.2

(39) Your project is in the final test stage, the user acceptance test. It
meets all the product specs and is under planned costs. In term of
schedule, this project is ahead. Your customer met you and requested
that he will not accept the product unless you make several changes.
What you should do is:

A. Get the list of the changes and estimate all of them. If the total cost is still
within the baseline, you will do it
B. Estimate the costs and send this to your customer requesting contract
modification

C. Ask the customer to file a change request

D. Sit with the customer to review the product specs and tell him/her that you
have completed the project.

Answer:C

Hint: All the change requests must be made formal

(40) The delphi Method is best suited for:

A. Decision-making
B. Cost Control

C. Overhead rate estimating

D. Team discussions

Answer:A
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Hint: It can be used to vote for a decision.

(41) Which of the following methods is least likely to be used for

explaining project planning guidelines to the team?

A. Project Office Memo

B. Project office directive

C. Project team meeting

D. Formal project report

Answer:D

Hint: A report gives information about what happened and doesn't talk
about planning or give guidelines or directives.

(42) Projects are initiated in response of:

A. Stakeholder's pressure
B. Business needs

C. Technological obsolescence

D. All of the above

Answer:D

Hint: All those factors contribute towards project initiation.

(43) The party that needs the change resulting from the project, and
who will be its custodian on completion is the:

A. Owner
B. Sponsor

C. Customer

D. Client

Answer:A

Hint: Project owner is the custodian

(44) A document or tool which describes when and how human

resources will be brought onto and taken off the project team is called a:

A. Staffing Management Plan

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B. Responsibility Assignment Matrix (RAM ).

C. Organizational Breakdown Structure (OBS).

D. Resource Assignment Chart

Answer:A

Hint: PMBOK 5, Page 265, Staffing Management Plan

(45) In which type of organization is team building likely to be most

difficult?

A. Functional
B. Projectized

C. Matrix

D. Project expediter

E. Project coordinator

Answer:C

Hint: The team members report to multiple managers in matrix

organizations.

(46) A tool which links the project roles and responsibilities to the
project scope definition is called:

A. Scope Definition Matrix

B. Responsibility Assignment Matrix

C. Roles Assignment Matrix

D. Project Scope and Roles Matrix

Answer:B

Hint: PMBOK 5, Page 262 Responsibility Assignment Matrix

(47) Which of the following are outputs from the Plan Communications
Management process?

A. Project records
B. Communications management plan

C. Performance reports
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D. Formal acceptance

E. b and c

Answer:B

Hint: PMBOK 5, Page 288, Figure 10-1

(48) Which of the following statement is correct?

A. Process Groups are same as Project Phases

B. Each Process Group has a mapped Project Phase

C. Process Groups are not Project Phases

D. Monitoring and Control Process Group applies only in monitoring and control
phase

E.

Answer:c

Hint: PMBOK 5, Page 420, A1.3 Project Management Process Groups

(49) The sending or conveying of information from one place to another

is the process of:

A. Networking
B. Transmitting

C. Encrypting

D. Promoting

Answer:B

Hint: PMBOK 5, Page 293, Sec 10.1.2.3 Communication Models

(50) The three major types of communication are:

A. Written and oral, and verbal and nonverbal.

B. Verbal, formal documentation, informal documentation.

C. Verbal, written, and graphic.

D. Verbal, written, and electronic.

Answer:A
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(51) All of the following are communication methods EXCEPT:

A. Memos
B. Grapevine

C. Videos

D. Instant messaging

Answer:B

Hint: PMBOK 5, Page 295, Sec 10.1.2.4

(52) Communication is the PRIME responsibility of a Project:

A. Manager in a weak matrix

B. Manager in a projectized environment

C. Coordinator

D. Expeditor

Answer:D

Hint: PMBOK 5, Page 23

(53) What are the four parts of the communications model?

A. Sending, Receiving, Decoding, and Comprehending

B. Sender, Message, Medium, Receiver

C. Communicator, Message, Receiver, Decoder

D. Communicating, Transmitting, Receiving, Comprehending

Answer:B

Hint: PMBOK 5, Page 293, Sec 10.1.2.3

(54) In negotiations between the functional department managers and

the project managers, which conflict management approach must be
aimed at?

A. Win-Lose
B. Win-Win

C. Lose-Lose

D. None of the above

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Answer:B

Hint: A project success also contributes to organization's growth. A win-

win scenario is a pre-requisite.

(55) A leadership style in which the project manager shares problems

with team members and formulates solutions as a group is called:

A. Autocratic
B. Persuasive

C. Participative

D. Laissez-faire

Answer:C

Hint: Participative style aims for team consensus

(56) A type of organization in which the project manager has little

formal authority and basically acts as a staff assistant to an executive
who is ultimately responsible for the project is called:

A. Balanced matrix
B. Weak matrix

C. Projectized

D. Strong matrix

Answer:B

Hint: In a weak matrix organization, PM is at times restricted to the role

of expediter.

(57) Create WBS process belongs to:

A. Initiation Process Group

B. Planning Process Group

C. Executing Process Group

D. Monitoring & Controlling Process Group

Answer: B

Hint: PMBOK 5, Page 61, Table 3-1

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(58) In which of the following organizations is the project manager role

likely to be that of staff assistant?

A. Weak matrix
B. Functional

C. Balanced matrix

D. a and b

E. A, B, and C

Answer:D

Hint: PMBOK 5, Page 23

(59) Project Risk Management includes all of the following processes

except:

A. Risk Quantification
B. Risk Identification

C. Risk Analysis

D. Risk Response Development

E. Risk Response Control

Answer:E

Hint: Risks are controlled; Risk Responses are not

(60) Using the PMBOK definition of contingency reserve, which of the

following statements about contingency reserves is false?

A. A contingency reserve is a separately planned quantity used to allow for

future situations which may be planned for only in part.
B. Contingency reserves may be set aside for known unknowns.

C. Contingency reserves may be set aside for unknown unknowns.

D. Contingency reserves are normally included in the project's cost and schedule
baselines.

Answer:C

Hint: Contingency reserve is allocated for identified risks. Refer to

PMBOK glossary definition.
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(61) Which of the following is true about a risk?

A. A risk can be deflected or transferred to another party through a contract or

insurance policy.
B. Risks involve the chance of both a profit and a loss.

C. No opportunities are associated with a risk, only losses.

D. a and c

E. a and b

Answer:E

Hint: A Risk can be positive or negative. It can be transferred as a

mitigation technique.

(62) A contingency plan is:

A. A planned response that defines the steps to be taken if an identified risk

event should occur.
B. A workaround

C. A reserve used to allow for future situations which may be planned for only in
part.

D. a and c

E. a and b

Answer:A

Hint: A contingency plan is a response planned for risk that were

identified in the planning stage. Workarounds are responses for risks that
have popped up while working on the project , and were left unidentified
in earlier stages. A reserve is also considered in a contingency plan to
respond to the risk event, but the reserve in itself is not a plan.
Therefore option C is also incorrect.

(63) Deflection or transfer of a risk to another party is a type of?

A. Risk Mitigation
B. Risk Acceptance

C. Risk Avoidance

D. Strategy for negative risks

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Answer:D

Hint: PMBOK 5, Page 344, Sec 11.5.2.1

(64) Management reserves are used to handle which type of risk?

A. Unknown unknowns
B. Known unknowns

C. business risks

D. pure risks

Answer:A

Hint: PMBOK 5, Page 171 - Last paragraph, Page 310 - 2nd paragraph.

(65) Which of the following is considered during the Procurement

Planning Process?

A. Whether to procure
B. How to procure and how much to procure

C. What and when to procure

D. b and c

E. A, B, and C

Answer:E

Hint: Procurement planning covers all the questions.

(66) From a buyer's standpoint, which of the following is true?

A. Procurement planning should include consideration of potential subcontracts

B. Procurement planning does not include consideration of potential subcontracts
since this is the duty of the contractor.

C. Subcontractors are first considered during the Solicitation Process

D. none of the above

Answer:A

Hint: PMBOK 5, Page 357 - Project Procurement Management

(67) Which of the following is true about procurement documents?

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A. Procurement documents are used to solicit proposals from prospective sellers.

B. Invitation for Bid and Request for Proposal are two examples of procurement
documents.

C. Procurement documents should be structured to facilitate accurate and

complete responses from prospective sellers.

D. B, and C

E. A, B, and C

Answer:E

Hint: All the factors are important for procurement management.

(68) Which of the following is a method for quantifying qualitative data

in order to minimize the effect of personal prejudice on source selection?

A. Weighting system
B. Screening system

C. Selecting system

D. none of the above

E. A, B, and C

Answer:A

Hint: PMBOK 5, Page 373, 1st Paragraph

(69) Which of the following are examples of indirect costs?

A. Salaries of corporate executives

B. Salaries of full-time project staff

C. Overhead costs

D. A and B

E. A and C

Answer:E

Hint: Project team salaries are classified as direct costs.

(70) Which of the following contract types places the greatest risk on
the seller?
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A. Cost-plus-fixed-fee contract
B. Cost plus-incentive-fee contract

C. Fixed-price-incentive contract

D. Firm-fixed-price contract

Answer:D

Hint: Firm-fixed price contracts don't accommodate any risk

materialization

(71) In which of the following contract types is the seller's profit limited?

A. Cost-plus-percentage-cost contract
B. Cost-plus-fixed-fee contract

C. Fixed-price-plus-incentive

D. B and C

E. none of the above

Answer:D

Hint: Fixed fee and incentives are usually lesser than the profits expected
in percentage cost contract.

(72) A cost-plus-incentive-fee (CPIF) contract has an estimated cost of

$120,000 with an agreed profit of 10% of the costs. The actual cost of
the project is $130,000. What is the total reimbursement to the seller?

A. $143,000
B. $142,000

C. $140,000

D. $132,000

Answer:A

Hint: The incentive is calculated on allowable costs

(73) The outputs of the Monitor and Control project work are utilized as
inputs for the Performance of Integrated Change Control to give the
following outputs, excluding.

A. Approved Change Requests

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B. Change Log

C. Change Requests

D. Project Management Plan Updates

Answer:C

Hint: See outputs of Perform Integrated Change Control

(74) Under what circumstances is it better for a contractor to

subcontract?

A. The The subcontractor possesses special technical and engineering skills that
the contractor does not have.
B. The work to be subcontracted represents almost all of the overall work effort.

C. The subcontractor can perform the work at a lower cost than the contractor.

D. all the above

E. a and c

Answer:E

Hint: Work is subcontracted on capability and cost-savings factors.

(75) Ramcharan, the project manager for a logistics project successfully

undertook all the project activities and reached the final Close Project or
Phase process that used the following inputs except for.

A. Accepted Deliverables
B. Enterprise Environmental Factors

C. Project Management Plan

D. Organizational Process Assets

Answer:B

Hint: Enterprise Environmental Factors aren't required for closing.

(76) Which of the following demonstrates a good negotiation skill?

A. Be ready to get the deal at any cost

B. Ensure that you get the most out of it

C. Offer more for less

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D. Ask high and offer low

Answer:D

Hint: PMBOK 5, Page 517, X3.8 Negotiation

(77) A narrative account of products, services or results to be achieved

under a project comes in the form of

A. Project Statement of Work

B. Strategic Plan

C. Product Scope Description

D. Project Management Plan

Answer:A

Hint: Statement of work gives the description of work to be completed

(78) The "rule of seven" as applied to process control charts means

that :

A. If there are seven points on one side of mean, then an assignable cause must
be found.
B. Seven consecutive points are ascending, descending, or the same.

C. At least seven quality inspectors should be in place for every thousand

employees

D. A process is not out of control when at least seven measurements fall outside
the lower and upper control limits.

Answer:A

Hint: PMBOK 5, Page 238 Control charts

(79) There is project with CPI of 0.81 and TCPI=1.00001 this project is:

A. Overbudget and hard to complete

B. Underbudget

C. Overbudget and early in its evolution

D. No inference can be made

Answer:A
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Hint: CPI<1 means over-budgets, TCPI>1 means harder to complete

(80) A collection of generally sequential project phases whose name and

number are determined by the control needs of the organization or
organizations involved in the project, is called:

A. Project life cycle

B. Product life cycle

C. Portfolio management

D. Program management

Answer: A

Hint: PMBOK 5, Page 38, sec 2.4 Project life cycle

(81) Which of the following activities do not fall under the Closing
Process Group?

A. Document lessons learned

B. Applying appropriate updates to OPA

C. Recommending preventive action

D. Performing team members assessment

Answer: C

Hint: No preventive actions are recommended in closing phase

(82) Who is not responsible for risk identification or reporting?

A. Project manager
B. Project team member

C. Project stakeholder

D. Functional Manager

Answer: D

Hint: Functional manager is not responsible for project success or failure

(83) Three Point Statistical Estimating Formula Group. Expected Value =

A. (Optimistic + (4 X Most Likely) + Pessimistic ) x 6

B. (Optimistic + (4 X Most Likely) + Pessimistic ) divided by 6
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C. (Optimistic + (4 X Most Likely) x Pessimistic ) divided by 6

D. (Optimistic + (4 + Most Likely) + Pessimistic ) divided by 6

Answer: B

Hint: A sum of six values must be divided to get an average.

(84) Parametric estimating is a technique where

A. is less costly, less time consuming and less accurate.

B. an algorithm is used to calculate cost or duration based on historical data and
project parameters.

C. uses an average of most likely, optimistic and pessimistic activity durations

D. A and B

Answer: B

Hint: PMBOK 5, Page 170

(85) What does TQM stand for?

A. Time Quality Managed

B. Target Quality Management

C. Total Quality Management

D. Time Quote Management

ANSWER: C

Hint: TQM is a continuous improvement technique to enhance quality.

(86) Examples of Projects include:

A. Implementing a new business procedure or process

B. Constructing a building or facility

C. Designing a new transportation vehicle

D. All of the Above

ANSWER: D

Hint: All projects have a definite beginning and conclusive end.

(87) Projects are undertaken at all levels of the organization?

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A. True
B. False

C. They are not related to each other

D. Neither true nor false

ANSWER: A

Hint: Projects have restrictions within the performing organization. They

are driven by scope of work.

(88) 7. ________ means that every project has a definite beginning and
a definite end.

A. Overall
B. Project Chart

C. Temporary

D. Duration

ANSWER: C

Hint: All projects are temporary

(89) In case of an external IT project, the project initiator or sponsor

must have provided the following information excluding.

A. Project Statement of Work

B. Agreements

C. Business Case

D. Organizational Process Assets

ANSWER: D

Hint: OPA isn't a part of project authorization for a contract.

(90) Who should be involved in the project planning phase?

A. The Project Manager.

B. The customer.

C. The Sub-contractors/vendors.

D. The project team members.

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E. All of the above.

Answer: E

Hint: All stakeholders available must be involved

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

A. Planning with their personnel.

B. Planning with top management.

C. Communicating with project team.

D. Studying project results.

Answer: C

Hint: A project manager spends 90 percent of the time in

communication.

(92) Cost Plus Incentive Fee (CPIF) contracts provide:

A. A reimbursement of allowable cost of services performed plus an agreed upon

percentage of the estimated cost as profit.
B. A reimbursement of allowable costs plus a fixed fee which is paid
proportionately as the contract progresses.

C. The supplier with a fixed price for a delivered performance plus a

predetermined fee for superior performance.

D. None of the above.

Answer: A

Hint: The terms are agreed upon in the agreement

(93) Project success depends on a number of interrelated factors,

including time, cost and scope control. The success of any project
depends primarily on:

A. Customer acceptance of deliverable.

B. Customer satisfaction irrespective of outcome.

C. Customer compromise in defining its needs.

D. Exceeding customer requirements through gold plating.

Answer: A
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Hint: Written approval of Customer acceptance in required for closure

(94) Which of the following is the most efficient means of product quality
inspection:

A. Statistical sampling.
B. 100% inspection.

C. user review.

D. A and C.

Answer: A

Hint: It is not always feasible to check every product item

(95) A complete set of concepts, terms and activities that make up a

professional field, project management field or an area of specialization
is known as:

A. Knowledge Area
B. Domain Knowledge

C. Project Management Process

D. Project Management Group

Answer: A

Hint: See the definition of Knowledge Area in PMBOK Chapter 3.

(96) Pareto Analysis, cause and effect diagrams and flow charts are
used in quality.

A. Control.
B. Assurances.

C. Planning.

D. Verification.

Answer: A

Hint: PMBOK 5, Page 252, Sec 8.3.2 Control Quality: Tools and
Techniques

(97) In a multi-cultural environment, it is critical to establish a corporate

culture that facilitates:
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A. Problem-solving through different approaches.

B. Learning and communication.

C. Partnerships, strong alliances and joint ventures.

D. Negotiations.

Answer: B

Hint: Learning about diverse teams and effective team communication is

vital for project success.

(98) A condition which will lead an organization towards conflict is:

A. Conflict of interest.
B. Favoritism

C. Resolved prior conflicts.

D. Both A and B.

E. All of the above.

Answer: D

Hint: Any unethical or unjust practice can lead to conflicts.

(99) The contemporary view of conflict is that:

A. Conflict is bad.
B. Conflict is caused by trouble makers.

C. Conflict should be avoided.

D. Conflict is often beneficial.

E. A, B and C.

Answer: D

Hint: Conflict can help breed new perspectives, identify risks and find
innovative solutions

(100) In general a project charter covers:

A. Project justification, background, scope, objectives, available resources,

organizational responsibilities, a project schedule, estimates, procurement
schedule, and any imitations that top management wants to apply.
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B. Project justification, background, scope, objectives, available resources,

organizational responsibilities, detailed project schedules, estimates, and
detailed procurement schedules responsibilities, a project schedule, and any
limitations that top management wants to apply.

C. Project justification, description, details of sponsor and project manager,,

budget, assumptions and constraints, boundaries to apply.

D. Project scope, objectives, available resources, responsibilities, a project

schedule, estimates, procurement schedules, and any limitations that top
management wants to apply.

Answer: C

(101) A project manager has increased project costs by US $75,000, but

completed the project six weeks earlier than planned. What tool is best
described here?

A. Resource leveling
B. Duration compression

C. Crashing

D. Fast tracking

Answer: C

Hint: Crashing is a schedule compression technique that employs more

resources to finish sooner

(102) Which of the following is most true?

A. Lag is the maximum amount of time a task can be delayed without delaying
the early start of its successor.
B. Lag may be determined by making a forward pass.

C. Lag is delay in start time, caused by delay in finish of predecessor activity.

D. Lag is the maximum amount of time a task can be delayed without delaying
the project.

Answer: C

Hint: Lag is time duration by which an activity is delayed because of

predecessor activity. See PMBOK Glossary definition.

(103) As project manager you should dedicate a primary focus to:

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A. Managing all changes immediately as they surface.

B. Formally documenting all changes.

C. Communicating authorized changes to senior management and key

stakeholders.

D. Preventing unnecessary changes.

Answer: D

Hint: It is important to ensure that only necessary changes are made to

the baselines.

(104) The behavioral responsibilities of a project manager may also

include dealing with:

A. Regulatory Personnel
B. The legal environment

C. Environmental Issues

D. All of the above

Answer: D

Hint: A project manager must address all the factors that are likely to
influence the project.

(105) The major purpose of project status reports is to:

A. Organize and summarize the information so that all stakeholders are

informed
B. Inform upper management of the project problems

C. Inform the client about the changes that have completed

D. Provide information to management and client

Answer: A

Hint: Status reports are meant to give a periodic summary of project

progress

(106) Most project management leadership theories focus on all of the

following except :

A. Personal characteristics of the project manager

B. Personal traits of the subordinates
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C. Behavioral styles of the project manager

D. Usefulness of authority and power and leadership

Answer: B

Hint: Personality types of team members are covered in human resource

management

(107) Summary budget is arrived at during the______ phase of the

project:

A. Initiation
B. Planning

C. Implementation

D. Execution

Answer: A

Hint: Mentioned in the Project Charter

(108) Historical records during closing are useful to __________ and

____________ for future projects:

A. Predict trends, highlight problems.

B. Analyze successes, shortfalls

C. Analyze strengths, document results

D. Justify results, set standards

Answer: A

Hint: Historical information aids in expert judgment

(109) Your client informs that his company has a problem with the
current design specs of your product and how it will interface with the
existing systems. If this occurs, it could be a major problem for your
project. The client is coming to your office in a week to discuss the
problem and to see what your team can do to overcome this setback. All
previous meetings were informal with this client, but now he wants a
formal meeting. What should you do to prepare for this meeting:

A. Update the schedules and assume an active role since the client has not given
you the specifics of the potential problem
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B. Make sure that the team has increased productivity so the client can see how
efficient your team is performing

C. Assemble the team and ask them to prepare an agenda for topics to discuss

D. Make sure that each team member has his assignment in preparation for any
handouts and needed plans

Answer: C

Hint: It is time for brainstorming to gather ideas, hypotheses, and

possible solutions.

(110) The definitive terms of a contract are written during which of the
following contract phases?

A. Contract phase
B. Post award phase

C. Award phase

D. Pre award phase

E. Requirement phase

Answer: C

Hint: Conduct Procurement process aims at finalizing the Agreements

that constitute the contract.

(111) A document that formally recognizes the existence of a project is

a:

A. Gantt Chart
B. WBS

C. Project Charter

D. Scope statement

Answer: C

Hint: PMBOK 5, Page 71-72, Project Charter authorizes a project

(112) Some organizations are now using 6 Sigma for quality control
compared to the usual:

A. 2 sigma
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B. 3 sigma

C. 4 sigma

D. 5 sigma

Answer: B

Hint: 3-sigma is less rigorous and precedes 6-sigma which is highest.

(113) Reducing the impact of a risk event by reducing the possibility of

its occurrence is:

A. Risk avoidance
B. Risk acceptance

C. Risk mitigation

D. Contingency planning

Answer: A

Hint: PMBOK 5, Page 559, See PMBOK Glossary definition of Risk

Avoidance.

(114) In which of the following project management process groups are

the most time and money typically spent?

A. Initiating
B. Planning

C. Executing

D. Controlling

Answer: C

Hint: A large portion of project budget and duration is used in Executing

Process group. Page 56, Sec 3.5 Executing Process group, PMBOK 5

(115) ______ recognizes that a project or phase should begin and

commits the organization to do so:

A. Initiating Process
B. Solicitation Process

C. Scoping Process

D. Planning process
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Answer: A

Hint: Creation of project charter is the specific activity that does it in

Initiating Process.

(116) A supplier has withdrawn from your project. A new supplier has
been added. His labor forces are due to arrive at the job site tomorrow.
You should:

A. Meet with the supplier along with his team and establish yourself as the
authority in charge.
B. Bring your team in for introductions and establish a communications
exchange

C. Bring out the communication management plan

D. Bring out the project plan.

Answer: A

Hint: Ground rules have to be set as the first thing.

(117) A new project manager is about to begin creating the project's

scope of work. One stakeholder wants to add many items to the scope of
work. Another stakeholder only wants to describe the functional
requirements. The project is important for the project manager's
company but a seller will do the work. Which of the following would you
advise the project manager to do?

A. The scope of work should be general to allow the seller to make its own
decisions.
B. The scope of work should be general but the management must allow
clarifications later.

C. The scope of work should be detailed to allow clarifications later.

D. The scope of work should be as detailed as necessary for the type of project.

Answer: D

Hint: Detailed requirements will give clarity, elaborate stakeholders

requirements and expectations.

(118) After the kickoff meeting, two team members engage in a casual
conversation about the project objectives and deliverables. It is clear
they heard different messages during the meeting. One member is so
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adamant that the other member gives up arguing the point. After talking
to the project manager, the second member confirms that the first
member is mistaken. At this point, what is the BEST course of action?

A. The second team member should send the other team member an e-mail
describing what he discovered.
B. At the next project meeting, the team member should ask the mistaken team
member to describe his interpretation so the project manager can get
everyone on the same page.

C. The project manager should send out an e-mail to the team restating the
project objectives and deliverables.

D. At the next project meeting, the project manager should spend time
reviewing a documented scope statement with the goal of identifying this and
other false assumptions.

Answer: D

Hint: Addressing the issue in the meeting and finding out all anomalies is
needed.

(119) During project execution, a project team delivers a project

deliverable to the customer. However, the customer neither
acknowledges the deliverable nor says if it is acceptable, although an
approval is required. What is the BEST thing to do?

A. Continue with the project

B. Document the situation

C. Contact management for help

D. Call a meeting of the team

Answer: C

Hint: The issue needs to be escalated to the upper management

(120) You are managing a six-month project and have held bi-weekly
meetings with your project sponsors. After five-and-a-half months of
work, the project is on schedule and budget, but the sponsors are not
satisfied with the deliverables. This situation will delay the project
completion by one month. The MOST important process that could have
prevented this situation is:

A. Risk monitoring and control.

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B. Schedule control.

C. Regular walkthroughs and sign-offs

D. Scope change control.

Answer: C

Hint: Periodic walkthroughs, reviews, and audits help in gauging

stakeholder satisfaction early and planning for changes. Sign-offs avoid
leaving room for future

disputes.
(121) When you are closing out a project, what must you do?

A. Provide project feedback to the team

B. Obtain sign off from the customer

C. Review project documentation for completeness

D. Update the project plans

Answer: B

Hint: Customer's acceptance is the primary necessity

(122) Financial controls that need to be considered for project plan

development do not include:

A. Time reporting
B. Standard contract provisions

C. Process audits

D. Accounting codes

Answer: C

Hint: Process Audits aren't required for Finance and Accounting

(123) A project manager has been working on a project for six months
with the same team yet the team still shows a lack of support for the
project. The best thing for the project manager to do would be to?

A. Re-evaluate the effectiveness of the reward system the project manager has
put in place
B. talk to each team member's boss

C. Re-plan the project

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D. Tell the team he needs its support

Answer: A

Hint: The project manager must find out the causes of lack of motivation

(124) A project has several teams. Team C has repeatedly missed

several deadlines in the past causing Team D to have to crash the critical
path several times. As the project leader for Team D, what should you
do?

A. Meet with management alone

B. Meet with the project manager alone

C. Meet with the project manager and management

D. Meet with the project manager and the team C leader

Answer: D

Hint: The issue must be resolved between the team leads in the presence
of project manager

(125) The current update to the schedule performance report shows no

schedule variance. Based upon the reporting, you have told the client
that the project is on time. However, your team members know that a
major milestone has just been missed and that the project will not meet
its startup date. This is an indication of poor?

A. Communication management planning

B. Scope management planning

C. Team trust

D. Schedule planning

Answer: A

Hint: There is a communication gap within the team

(126) A project manager is assigned a project with a team that has

already been selected. The first thing the project manager should find
out about the team is?

A. What is each team member's favorite color

B. Each team member's objectives for working on the project
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C. A list of each team member's tasks

D. Each team member's role in the project plan

Answer: D

Hint: It is important for the PM to know each member's role and

responsibility

(127) An advisor to a new project manager tells the project manager to

create lessons learned document at the end of a project. A lessons
learned document includes?

A. Any variances and the causes of the variances

B. Reports from the customer

C. Reports from management

D. A list of all the plans

Answer: A

Hint: Lessons are learned from the mistakes and how they were caused
to be able to avoid them in future.

(128) Abdullah, a project manager in XYZ Company is managing a

project on IT and is looking for historical data on the usage of the
previous software and applications in the company; he will get it in.

A. Newspaper Archives
B. Organizational Process Assets

C. Management Information System

D. Enterprise Environmental Factors

Answer: B

Hint: Historical information is available in OPA

(129) The project is completed and the final deliverable given to the
customer but the customer refuses to take any action to give final
acceptance on the project. The project manager should?

A. Repeatedly ask for final acceptance

B. Ask the team for assistance

C. Document the situation

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D. Do nothing because there is nothing that can be done

Answer: C

Hint: Documentation of new scenarios may help develop a plan for a

similar situation in future.

(130) What do knowledge, skills, tools and techniques stand for when
applied to the activities of a project, if it also entails effective
management of a process.

A. Human Resource Management

B. Project Management

C. Financial Management

D. Project Management Process

Answer: B

Hint: Together it is called Project Management

(131) The Precedence Diagramming Method :

A. has finish-to-start task relationships and provides the flexibility of lead and
lag time to the activities;
B. has the activity on the arrow.

C. is also known as Arrow Diagramming Method.

D. is used to make precedence diagrams.

Answer: A

Hint: PMBOK 5, Page 156 Precedence Diagramming Method

(132) Gantt charts are great for:

A. Showing tasks relationships

B. Tracking actual vs planned

C. Optimum Resource utilization

D. b and c

Answer: D
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Hint: A Gantt Chart gives quick insights into task schedules and resource
utilizations

(133) Ultimate responsibility for quality management in the project rests

with the?

A. Project engineer
B. Purchasing agent

C. Quality manager

D. Team members

Answer: D

Hint: All team members are responsible for quality

(134) Design of experiments?

A. identifies which factors may influence specific variables of a process or

product
B. identifies which variables don't have any influence on quality

C. determines what a quality outcome is

D. is a method for research and development

Answer: A

Hint: PMBOK 5, Page 239-40 Design of experiments

(135) You are a project manager for a major information systems

project. Someone from the quality department comes to see you about
beginning a quality audit of your project. The team, already under
pressure to complete the project as soon as possible, takes objection to
the audit. You should explain to the team that the purpose of a quality
audit is?

A. part of an ISO 9000 investigation

B. to check if the customer is following its quality process

C. to identify lessons learned that can improve performance on the project

D. to check the accuracy of the costs submitted by the team

Answer: C
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Hint: A quality audit helps to determine if the project activities comply

with org processes.

(136) You manage a project whose team members have diverse skills
and expertise. You want to encourage your staff to pool its knowledge on
project issues to make the best decisions possible. The most appropriate
management style to use is:

A. Laissez-faire
B. Democratic

C. Autocratic

D. Directive

Answer: A

Hint: Laissez-faire style depends on trust and giving freedom to make

decisions

(137) The types of power that have substantial influence on both

subordinates and upper management are:

A. Formal & expert

B. Reward & penalty

C. Expert & referent

D. Formal & referent

Answer: C

Hint: Expertise (Expert) and Charisma (Referent) together make the best
combination

(138) Your preferred resource is not available at the time needed. What
is the best thing to do?

A. Negotiate with management to get the resource

B. Assess your alternatives

C. Begin the task early

D. Use reserves to increase resources assigned to those tasks.

Answer:B
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Hint: A review of available options helps make better stock of the current
situation

(139) An important piece of hardware will be late. What is the first thing
to do?

A. Discuss with team

B. Use schedule reserves

C. Use alternate vendor

D. Go to customer or management

Answer: A

Hint: To evaluate the impact and available options, discuss with team

(140) A project has experienced significant delays due to equipment

problems, staff attrition, and slow client reviews. The project is 40%
complete and has used 60% of the available calendar time. What is the
FIRST thing you should do?

A. Re-baseline the schedule to reflect the new date

B. Analyze the critical path activities for potential to fast track or crash the
schedule

C. Document the lack of progress and associated issues to management

D. Identify tasks that have required more time than planned

Answer: D

Hint: It is time to conduct a root-cause analysis

(141) A functional manager wants to make a change to the time

associated with a task, but there is not enough reserve to accommodate
the change. Who should authorize the change?

A. Senior management
B. The functional manager

C. The project manager

D. The team member performing the work

Answer: C

Hint: Project Manager has the required authority among those listed
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(142) During the course of a project you have motivated team

members, managed conflict, performed personnel administrative
functions and negotiated for more resources. These are examples of:

A. General Project Management

B. Project Human Resource Management

C. Project Execution

D. A Projectized organization

Answer:A

Hint: Performing diverse functions in an attribute of General Management

(143) You have been promoted to Manager, Continuous Process

Improvement. Your new position:

A. Is a project because the work will be performed by people

B. Is not a project because Continuous Process Improvement will continue
indefinitely

C. Is a project because it is constrained by limited resources

D. Is a project because improvements must be planned, executed, and

controlled

Answer:B

Hint: It is a position that will aid process improvement across org

processes

(144) Which of the following is not a Project Management knowledge

area?

A. Project Quality Management

B. Project Procurement Management

C. Project Configuration Management

D. Project Risk Management

Answer: C

Hint: Configuration Management is not a knowledge area.

(145) The state of being totally answerable for the satisfactory

completion of a specific assignment is called:
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A. Authority
B. Accountability

C. Responsibility

D. Fiduciary

Answer:B

Hint: Accountability means to be answerable, responsible and

accountable for project success or failure

(146) You are responsible for the communication controls for the
Genesis series of satellites. Your current assignment is:

A. Project management
B. Functional management

C. Facility management

D. Program management

Answer:D

Hint: It is collection of projects for each satellite in the series

(147) Work packages are used to :

A. Represent units of work at a level where work is performed.

B. Distinguish one package from all others assigned to a single functional group.

C. Limit work to be performed to relatively short periods of time.

D. All of the above.

Answer: D

Hint: PMBOK 5, Page 126, 128, 150

(148) Network planning methods(PERT/CPM/PDM):

A. Are usually too complicated for practical use on most projects

B. Require highly trained specialists for effective use

C. Always require computer support to be practical

D. Are based on flow charts and they allow observation of what happens to the
project schedule when changes occur to a task's start and stop dates
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Answer: D

Hint: They are all related to project schedule

(149) Earned value can be described as:

A. The value of the equipment that has been installed as of the current date
B. The sum of the labor costs that have been incurred on the project date

C. A method of measuring project performance

D. A method of measuring the amount of money that has been spent to date

Answer: C

Hint: PMBOK 5, Page 538, Glossary definition of Earned Value

(150) A role of the change control board (CCB) is to:

A. issue change requests

B. represent top management interests in initiating innovation

C. review the impact of change requests on project costs, schedule, and

specifications

D. schedule changes into PERT networks

E. identify new areas of project work

Answer: C

(151) Quality control is:

A. identifying which quality standards are relevant to the project and

determining how to satisfy them
B. monitoring specific project results to determine if they comply with relevant
quality standards and identifying ways to eliminate causes of unsatisfactory
performance

C. evaluating overall project performance on a regular basis to provide

confidence that the project will satisfy the relevant quality standards

D. taking action to increase the effectiveness and efficiency of the project so as

to provide added benefits to both the performing organization and the project
customer

E. assuming the production of goods that meet the highest standards of luxury
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Answer: B

Hint: PMBOK 5, Page 534, Glossary definition of Control Quality

(152) Cost of quality is a concept that includes:

A. the cost necessary for ensuring conformance to requirements

B. the life cycle cost of the project

C. all research and development costs related to the project

D. only the cost of the quality control function

E. A and B

Answer: A

Hint: Cost of conformance is included in Cost of Quality.

(153) The pillars) of quality is (are) :

A. Quality is free
B. Doing it right the first time

C. Zero defects

D. Process improvement

E. B and C

Answer: E

Hint: Defect prevention is most important. It leads to zero defects.

(154) Quality assurance is:

A. top management's intention regarding quality

B. functions determining implementation of the quality policy

C. actions to provide confidence of satisfying quality requirements

D. responsibilities and processes which implement quality management

E. all of the above

Answer: C

Hint: Quality Assurance is ensuring that the quality expectations are met
by means of implementing standards and verifying compliance.
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(155) The zero defects concept:

A. is a performance standard for management

B. is a motivational technique that promotes "doing it right the first time"

C. is used by management to communicate to all employees that everyone

should do things right the first time

D. A and C

E. B and C

Answer: D

Hint: A high standard for checking defects, it sets the bar for defect-
tolerance as zero.

(156) When appointed, a project manager has the inherent forms of

legitimate power conveyed to him. The three forms of legitimate power
are:

A. absolute, direct, and indict

B. direction, coordination, and liaison

C. formal, informal, and persuasive

D. formal, reward, and direct

E. formal, reward, and penalty

Answer: E

Hint: A PM is authorized to make decisions about team, reward and

impose penalties on the members.

(157) The five types of conflict resolution are listed below and
represent, in general order of importance, the methods a project
manager should use to manage conflict. The one used most often by
project managers to resolve conflict is:

A. confrontation
B. compromise

C. smoothing

D. forcing

E. withdrawal
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Answer: A

Hint: Confrontation uses communication to sort out conflicts

(158) The process of getting a group of diverse individuals to work

effectively together as a team is the definition of

A. leadership
B. project management

C. the project manager's responsibilities

D. implementation

E. team building

Answer: E

Hint: PMBOK 5, Page 514, X3.2 Team Building

(159) Which contract type should be used by the owner on a high risk
project?

A. Cost plus percentage of cost

B. Cost plus incentive fee

C. Lump sum

D. Fixed price plus incentive fee

E. C and D

Answer: C

Hint: Cost plus incentives or percentage cost may not be economical.

(160) The technique used under the Quantitative Risk Analysis that
helps to determine which risks have the most potential impact on the
project is called

A. Sensitivity Analysis
B. Expected Monetary value Analysis

C. Modeling and Simulation

D. Expert Judgment

Answer: A
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Hint: Refer PMBOK 5, Page 338, Sec 11.4.2.2

(161) Project risk is characterized by three factors:

A. Severity of impact, duration of impact and cost of impact

B. Identification, type of risk category and probability of impact

C. Risk event, risk probability and the amount at stake

D. Occurrence, frequency and cost

Answer: C

Hint: It is important to know the risk event that can take place, how
much is it probably and what will be its impact if it occurs.

(162) Name the ethical code you'll be required to adhere to as a PMP:

A. PMI Policy of Ethics

B. PMI Code of Ethical Conduct

C. PMI Code of Professional Ethics & Standards

D. PMI Code of Ethics and Professional Conduct

Answer: D

Hint: PMBOK 5, Page 2, Project Management Institute Code of Ethics and

Professional Conduct

(163) Which is not another term for contract?

A. Agreement
B. Purchase Order

C. Proposal

D. Memorandum of Understanding

Answer: C

Hint: A proposal is just an offer or a bid request.

(164) Which of the following situations describes a violation of the

Project Management Institute Code of Ethics and Professional Conduct?

A. Accepting a gift that is within the customary guidelines of the country or

province you are currently working in.
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B. Use of confidential information to advance your position or influence a critical

decision.

C. Complying with laws and regulations of the state or province in which project
management services are provided

D. Disclosing information to a customer about a situation that may have an

appearance of impropriety.

Answer: B

Hint: It's unethical to use any confidential information for personal gains.

(165) You are working in a country where it is customary to exchange

gifts between contractor and customer. Your company code of conduct
clearly states that you cannot accept gifts from any client. Failure to
accept the gift from this client may result in termination of the contract.
The action to take in this case would be:

A. Provide the customer with a copy of your company code of conduct and
refuse the gifts.
B. Exchange gifts with the customer and keep the exchange confidential

C. Report the matter to your project sponsor and /or your legal office for
assistance.

D. Ask the project sponsor or project executive to exchange gifts.

Answer: C

Hint: It is best to share information with sponsor, company management

or designated department.

(166) An example of a conflict of interest would be:

A. As a public official you make a decision about a contract award that will
benefit you personally
B. You and a functional manager disagree with a task cost estimate

C. Your sponsor decides to cancel your project because it no longer supports the
company strategy

D. Your personality conflicts with that of a key member of your project team.

Answer: A
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Hint: Being involved in making decisions that might affect a person or

any of his personal contacts

(167) The strategies under the tool of Strategies for negative Risks or
Threats and which typically deal with threats or risks that may have
negative impacts on project objectives if they occur includes all except:

A. Avoid
B. Mitigate

C. Transfer

D. Accept

Answer: D

Hint: Refer PMBOK 5, Page 344, Sec 11.5.2.1

(168) Project Managers can contribute to their organization's knowledge

base and to the profession of project management most effectively by:

A. Developing and implementing a project review and lessons learned process

B. Establishing strict guidelines for protecting intellectual property

C. Promote the use of ad hoc project management

D. Ensuring that all project plans are developed before the project team is
formed

Answer: A

Hint: All project documents can become a part of OPA.

(169) For a festival, you give your government client a leather brief case
which is against the law. You are in violation of the responsibility to:

A. Complete your work within the budget

B. Comply with regulations.

C. Provide accurate information.

D. Save company costs.

Answer: B

Hint: Bribing is illegal and unethical.

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(170) You have just changed jobs and discovered that your new
employer routinely violates OSHA/EPA and affirmative action
requirements on projects. You should first:

A. Do nothing. It's not your problem

B. Start by asking management if they are aware that regulations are being
violated

C. Talk to the corporate legal department

D. Inform the appropriate government agencies about the violations

Answer: B

Hint: Reporting the issue or bringing it up for discussion is the first thing
to do.

(171) During your assignment as project manager, you add a new

member to your project team. This new team member was recently hired
from a competitor and offers to share a substantial amount of proprietary
information from his previous company. This information could put you
and your team in a very strong position for future business. You are
aware of a non-compete clause in the new hire's condition of
employment. You should:

A. Accept the information and agree to keep it confidential between you and the
new hire.
B. Review the condition of employment with the new hire and advise her to
reconsider the offer.

C. Review the information and only accept only what may have a direct impact
on the project's financial status.

D. Ignore the offer to share and move forward with the project

Answer: B

Hint: Before proceeding, you must ensure that no agreements or

regulations are breached.

(172) Before reporting a perceived violation of an established rule or

policy the project manager should:

A. Determine the risks associated with the violation

B. Ensure there is a reasonably clear and factual basis for reporting the violation
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C. Ignore the violation until it actually affects the project results

D. Convene a committee to review the violation and determine the appropriate

response

Answer: B

Hint: Report a problem only when it can be substantiated by clear proofs.

(173) A response to a negative risk event is known as a:

A. Work Item
B. Work Package

C. Workaround

D. Work breakdown structure

Answer: C

Hint: Workaround is defined as response to a negative risk event for

which no prior response was planned.

(174) Qualitative Risk Analysis will be performed under :

A. Initiation Process Group

B. Planning Process Group

C. Executing Process Group

D. Monitoring and Controlling Process Group

Answer: B

Hint: PMBOK 5, Page 61, Project Management Process Group and

Knowledge area Mapping

(175) Acquire Project team process will be performed under:

A. Initiating Process Group

B. Planning Process Group

C. Executing Process Group

D. Monitoring and Controlling Process Group

Answer: C
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Hint: PMBOK 5, Page 61, Project Management Process Group and

Knowledge Area Mapping

(176) The objectives of Project Risk Management includes

A. To increase the likelihood and impact of positive events

B. To decrease the likelihood and impact of negative events

C. Only A

D. Both A & B

Answer: D

Hint: PMBOK 5, Page 309

(177) In a group of 4 members, 1 member has been added. How many

communication channels are there now :

A. 5
B. 3

C. 10

D. 20

Answer: C

Hint: The formula to calculate the number of communication channels on

a project is N(N-1)/2, where N=the number of team
members/stakeholders

(178) Which of the following statements is correct?

A. There are some core processes and some facilitating processes.

B. PMI is not any more responsible form PMBOK.

C. PMBOK will be changed every year in December.

D. New PMBOK has 10 process groups and 47 processes.

Answer: D

Hint: PMBOK 5, Page 61, Project Management Process Group and

Knowledge Area Mapping

(179) Which of the following is not an input to Develop Project Charter:

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A. Contract
B. Project Statement of Work

C. Enterprise Environmental Factors

D. Organizational Process Assets

E. Project Management Information System

Answer: E

Hint: All except PMIS are inputs in developing Project Charter.

(180) Which of the following is a technique used to Create WBS:

A. Organizational Process Assets

B. Decomposition

C. WBS Dictionary

D. Configuration Management System

Answer: B

Hint: PMBOK 5, Page 106, Create WBS

(181) Which of the following is not an input to Define Activities process:

A. WBS Dictionary
B. Organizational Process Assets

C. Project Scope Statement

D. Work Breakdown Structure

E. Schedule Network Templates

Answer: E

Hint: All but Schedule Network Templates are inputs to the process

(182 ) Which of the following is not an output of Estimate Activity

Resources:

A. Activity Resource Requirements

B. Resource Breakdown Structure

C. Resource Categories and Types

D. Resource Management Plan

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Answer: D

Hint: Resource Management Plan is created as a part of Plan HRM

process

(183) Which of the following is a tool used in Estimate Activity

Durations:

A. Analogous Estimating
B. Work Breakdown Structure Templates

C. Critical Path Method

D. Schedule Network Templates

Answer: A

Hint: Analogous estimating is used to estimate activity duration based on

historical data.

(184) Crashing, and Fast tracking are techniques used in the following
process:

A. Schedule Development
B. Activity Definition

C. Create WBS

D. Resource Allocation

Answer: A

Hint: Both are schedule compression techniques

(185) Which is not a technique used for Estimate Costs process:

A. Analogous Estimating
B. Bottom-up Estimating

C. Parametric Estimating

D. Vendor Bid Analysis

E. Resource Leveling

Answer: E

Hint: Resource leveling is used in schedule management and not

required in cost estimation.
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(186) Which is not a tool used in Quality Planning process :

A. Cost-Benefit Analysis
B. Benchmarking

C. Design of Experiments

D. Cost of Quality (COQ)

E. Process Analysis

Answer: E

Hint: Process Analysis is used in Perform Quality Assurance

(187) ) What are three tools used in Control Quality process:

A. Benchmarking, Cost of Quality (COQ) and Cause and Effect Diagram

B. Cost of Quality (COQ), Cause and Effect Diagram and Control Charts

C. Control Charts, Flowcharting and Process Analysis

D. Pareto Chart, Control Charts and Cause and Effect Diagram

Answer: D

Hint: Control Quality uses seven basic quality tools

(188) Which of the following Human Resource process generates Roles

& Responsibilities:

A. Plan Human Resource Management

B. Acquire Project Team

C. Develop Project Team

D. Manage Project Team

Answer: A

Hint: Plan Human Resource Management employs RACI Matrix to create

responsibility chart

(189) Co-Location is a techniques which means:

A. Placing many or all of the most active project team members in the same
physical location to enhance their ability to perform as a team.
B. Placing many or all of the most active project team members in the same
physical location to reduce the cost of the project
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C. Performing a complete project at a single location

D. Performing a project at various locations.

Answer: B

Hint: Being co-located means being at one place

(190) Manage Stakeholders is a part which of the following knowledge

area:

A. Human Resource Management

B. Project Integration Management

C. Project Scope Management

D. Project Communications Management

E. Project Stakeholder Management

Answer: E

Hint: Project Stakeholder Management is the knowledge area that deals

with managing stakeholders.

(191) Which of the following is not correct about Communications

Management Plan document:

A. It contains Stakeholder communication requirements

B. It contains the details of Person responsible for communicating the
information

C. It contains Frequency of the communication, such as weekly

D. It contains Methods or technologies used to convey the information, such as

memoranda, e-mail, and/or press releases

E. It contains total cost of communication.

Answer: E

Hint: There is no calculation of communication costs in a project

(192) Which is not a tool used for Plan Risk Responses process:

A. Risk Audits
B. Avoidance

C. Transfer
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D. Mitigate

E. Exploit

Answer: A

Hint: Risk Audits are not strategies or responses for risk handling

(193) Advertising is a technique used in which of the following process:

A. Select Sellers
B. Request Seller Responses

C. Contract Administration

D. Contract Closure

Answer: B

Hint: It is to invite sellers to bid for contracts

(194) Which of the following definition is not correct:

A. Plan Human Resource Management - Identifying and documenting project

roles, responsibilities, and reporting relationships, as well as creating the
staffing management plan.
B. Acquire Project Team - Obtaining the human resources needed to complete
the project

C. Develop Project Team - Improving the competencies and interaction of team

members to enhance project performance

D. Manage Project Team - Tracking team member performance, providing

feedback, resolving issues, and coordinating changes to enhance project
performance.

E. Team Building - Forming a team from scratch for a new project.

Answer: E

Hint: Team building is process of helping people work with each other in
a team having a common goal.

(195) Which of the following definition is not correct:

A. Contract Closure - completing and settling each contract, including the

resolution of any open items, and closing each contract.
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B. Plan Purchases and Acquisitions - selecting a buyer to purchase any product

or service.

C. Select Sellers - reviewing offers, choosing from among potential sellers, and
negotiating a written contract with a seller.

D. Request Seller Responses - obtaining information, quotations, bids, offers, or

proposals, as appropriate

E. Plan Procurement - documenting products, services, and results requirements

and identifying potential sellers

Answer: B

Hint: Buyers are never selected.

(196) Which of the following is not correct:

A. PMO - Program Management Office

B. RBS - Resource Breakdown Structure

C. RAM - Resource Assignment Matrix

D. RFP - Request for Proposal

E. TQM - Total Quality Management

Answer: C

Hint: RAM refers to Responsibility Assignment Matrix

(197) Which of the following is not correct :

A. Cost of Quality (COQ): Determining the costs incurred to ensure quality

B. Crashing: A specific type of project schedule compression technique
performed by taking action to decrease the total project schedule duration.

C. Total Quality Management: A common approach to implementing a quality

improvement program within an organization

D. Risk Register: The risk register details all identified risks, including
description, category, cause, probability, impact on objectives, proposed
responses, owners, and current status.

E. Simulation: prototyping of a project to check if proposed design will work or

not.

Answer: E
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Hint: Simulations are mostly used in estimation. See Glossary definition

on Page 562, PMBOK 5

(198) Most schedule simulations are based on some form of which of the
following?

A. Delphi
B. PERT

C. CPM

D. Monte Carlo Analysis

Answer: D

Hint: PMBOK 5, Page 180, Simulation is most commonly done using

Monte Carlo analysis

(199) What is critical path?

A. The shortest path through the network, which represents the longest amount
of time in which a project can be completed.
B. The path with zero float.

C. The longest path through the network, which represents the shortest amount
of time in which a project can be completed.

D. The path with the most activities with the longest durations.

E. b and c

Answer: C

Hint: Critical path is longest path and shortest amount of time in which a
project can be completed.

(200) In the communication process, "noise" is the word used to

describe factors and forces inhibiting the exchange of information
between two or more parties. Noise includes all of the following but
__________

A. Culture
B. Behavior

C. Language

D. Traditional way of doing things

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E. Loud talking

Answer: E