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BENCH MARK 2 NAME :

1) While working on an external project your customer asks you to perform some additional tasks that are not included in the formal contract. You should : A. Honor the customer’s request as sign of cooperation to ensure future business. B. Refuse the request and report the customer to your sponsor C. Acknowledge the request and advise the customer to submit a formal change

request. D. Convene a meeting of the project team and rewrite the scope statement.

2) What tool have project managers come to use to identify the costs associated with a project. A. A bill of materials B. A Gantt chart C. An arrow diagram network D. A work breakdown structure

3) The two closing processes are called : A. Contract close out and scope verification B. Close Project or Phase and Close Procurements C. Project closure and product verification D. Project closure and lessons learned.

4) Scoring models, NPV and IRR calculations are all part of : A. Models for closing a project B. Methods for selecting a project C. Quality measurement technique D. Information distribution tools

5) 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 leveling, Critical path method D. GERT, PERT, Leads and lags.

6) 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

7) Direct costs include all of the following except : A. Purchased parts B. Overhead C. Freight D. Travel

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8) A project has the involvement of many organizations, inside and outside the company.

Which of the following roles of the project manager is mostly relied upon ? A. Coach B. Risk Manager C. Integrator D. Mentor

9) At which level of the Work Breakdown Structure is project integration management most costly to perform > A. Level 1 B. Level 2 C. Level 3 D. Level 5 E.

10) which of the following Project Scope Management processes involves subdividing the

major project deliverables into smaller, more manageable components ? A. Collect Requirements B. Define Scope C. Control Scope D. Create WBS

11) The review of key deliverables and project performance at the conclusion of a project phase may be called any of the following except : A. Phase exits B. Kill points C. Phase gates D. Deliverable verification

12) Which of the following is a common characteristic of most project life cycle descriptions ? A. Cost and staffing are low at the start, higher towards the end, and drop rapidly

as the project nears completion. B. The probability of successfully completing the project is highest at the start of

the project. C. Stakeholders have the most influence on the final characteristics of the product

at the end of the project. D. Technical transfer happens at the last phase of the lifecycle.

13) The project scope statement is : A. A description of the project’s deliverables and the work that needs to be

accomplished to deliver a product, service or result with the specified features and functions.

B. A description of 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. The degree of inherent characteristics of a service.

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14) What is the purpose of the WBS ?

A. To show which work elements have been assigned to organizational units. B. To ensure that all work within a project is identified and defined within a common

frame work. C. To show the organizational structure of a program. D. To show logical relationships between activities.

15) The unique identifiers assigned to each item of a WBS are often known collectively as : A. The work package code/ B. The project identifiers C. The code of accounts D. The element accounts.

16) As a result of a recent customer meeting, the customer requests a change in design

that will affect the production schedules. The project manager should : A. Do nothing. B. Tell the customer that no changes will be made to the schedule. C. Help the team identify alternative schedules. D. Provide much closer supervision.

17) What is the difference between scope verification and quality control ? A. There is no difference B. Scope verification is primarily concerned with the correctness of work results

while quality control is primarily concerned with the acceptance of work results. C. Scope verification is concerned with ensuring that changes are beneficial while

quality control is concerned that the overall work results are correct. D. Scope verification is primarily concerned with the acceptance of work results

while quality control is primarily concerned with meeting the quality requirements specified for the deliverables.

18) All of the following processes are part of Project Integration Management, except : A. Direct and Manage Project Execution B. Develop Project Management Plan C. Control Schedule D. Perform Integrated Change Control.

19) Configuration management is any documented procedure used to apply technical and administrative direction and surveillance to : A. Maintain an objective measurement of project status. B. Control the changes to the product characteristics C. Define performance objectives for earned value.

20) Who should contribute to the development of the project management plan > A. Project Manager B. Entire project team including project manager C. Senior Management D. Just the planning department.

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21) A project management plan is :

A. A document that defines how the project is executed, monitored and controlled and closed.

B. A document issued by senior management that provides the project manager with the authority to apply organizational resources to project activities.

C. A narrative description of products or services to be supplied. D. A document describing the organizational breakdown structure of the company.

22) An effective way to accelerate the project integration process is______________________. A. Through periodic integration team meetings. B. By assigning specific responsibilities to each project employee C. Integrating activities only during crisis periods D. By asking the sponsor to pressure the team.

23) 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

24) What is the primary purpose of a milestone chart ? A. To show task dependencies. B. To show resource constraints C. To show significant events in the project such as completion of key deliverables. D. To highlight the critical path.

25) Which of the following is not a good time to assign the project manager ? A. As early in the project as feasible B. Before much project planning has been done. C. While the project charter is being developed. D. When project planning is complete.

26) In which type of organization(s) is the project manager’s role most likely part-time ? A. Projectized B. Balanced Matrix C. Strong Matrix D. Weak Matrix

27) A document which describes how project scope will be managed and how scope changes will be integrated into the project is : A. A project management plan B. A risk analysis C. A project scope management plan D. A scope statement

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28) Which of the following statements concerning a project scope statement are true ? A. It provides a common understanding of the project scope among all project

stakeholders. B. Project Scope statement and Statement of work are synonymous. C. Project justification and project objectives are not included or referenced in the

scope statement. D. Once written, the scope statement should never be revised.

29) During what Time Management Process are the specific activities that must be performed to produce the deliverables in the WBS identified and documented ? A. Sequence Activities B. Define Activities C. Develop Schedule D. Estimate Activity Durations

30) A period of time which includes non-working days is called : A. Elapsed Time B. Duration C. Effort D. Earned Time

31) The amount of time that an activity can be delayed from its early start without delaying the project and date is called : A. Free Float B. Total Float C. Float D. Lead

32) What are you likely to see as a project progresses in a schedule with fixed dates and little or no slack ? A. Lots of free float B. Idle resources C. Negative float D. Positive float

33) Given the following estimates : Optimistic 3 days, Pessimistic 9 days, and most likely 6 days, what is the PERT weighted average ? A. 6 B. 4 C. 6.3 D. 6.1

34) What is the standard deviation for the estimates in the above problem ? A. 0.6 B. 1.0 C. 1.5 D. 0.5

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35) In crashing the schedule, you would focus on : A. Accelerating as many tasks as possible B. Accelerating just the non-critical tasks C. Accelerating the performance of tasks on the critical path D. Reducing the overall project duration by industry standard of 10%

36) To calculate the late start and late finish dates for a set of tasks, you must do : A. An analysis of the critical path B. A forwards pass C. A backward pass D. Network analysis

37) An activity that consumes no time or resources and shows only that a dependency exists between two activities is called : A. A milestone B. A hammock C. A dummy activity D. Free Float activity

38) A modification of a logical relationship that allows an acceleration of the successor task is represented by : A Finish to Finish B. Lag time C. Negative Lead D. Negative Lag

39) Assuming a PERT weighted average computation, what is the probability of completing the project within plus-or-minus 3 standard deviations of the mean ? A. 68% B. 99.74% C. 95% D. 75%

40) Schedule variance can be determined by : A. EV – AC B. EV/PV C. EAC – AC D. EV – PV

41) What is the 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.

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42) The time management process that involves identifying and documenting interactivity

dependencies among schedule activities is called : A. Define Activities B. Estimate Activity Durations C. Perform Activity Dependencies D. Sequence Activities.

43) A network diagram that uses nodes to represent activities and arrows to show the activity dependencies and allows no loops is called : A. AOA B. AON C. ADM D. GERT

44) Project Cost Management includes all of the following except : A. Level Resources B. Control Costs C. Estimate Costs D. Determine Budget

45) Which of the following choices indicates that a project has a burn rate of 1.2 ? A. The PV is 100 and the EV is 120. B. The AC is 100 and the EV is 120. C. The AC is 120 and the EV is 100 D. The EV is 100 and the PV is 120.

46) The inputs to Determine Budget include all of the following except : A. Contract B. Cost baseline C. WBS dictionary D. Project Schedule

47) During an informal meeting with your project client you are offered a substantial monetary incentive to alter the configuration of the product to meet the client’s personal need. This change may result in additional project costs and schedule delays. The appropriate action to take would be : A. Refrain from accepting the offer and advise the customer to submit a request to

the change control board. B. Accept the offer and issue an internal configuration change request to the

design group. C. Obtain additional information about the request and the customer’s personal

need before accepting the offer. D. Delay acceptance of the offer until you can ensure that you can protect yourself

from any legal liabilities.

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48) As the project manager for a very and highly visible project you receive a preliminary

press release for your approval before distribution. You are expected to approve the release without comment. Your review identifies a major discrepancy regarding some key project financial estimates that may mislead the intended recipients. As the project manager it is your responsibility to : A. Inform the project sponsor of the discrepancy and refuse to approve the release B. Approve the release but send a memo to the sponsor advising that you are

aware of the discrepancy and will refer any questions you receive to the sponsor.

C. Completely rewrite the press release and include the correct information D. Approve the release as requested.

49) Which of the following Cost Management processes are concerned with cost baseline ? A. Estimate Costs B. Estimate Activity Durations C. Develop Schedule D. Determine Budget

50) Cost control is concerned with :

A. Allocating the overall estimates to individual work packages in order to establish a cost baseline.

B. Influencing the factors which create changes to the schedule baseline to ensure that changes are beneficial.

C. Reporting risk variances during weekly staff meetings. D. Monitoring cost performance to detect and understand variances from the cost

baseline.

51) Which of the following statements concerning bottom-up estimating is true ? A. Smaller work items increase cost but not necessarily the accuracy. B. Larger work items increase both cost and accuracy. C. It is done during the early phases. D. The cost and accuracy of bottom-up estimating is driven by the size of the

individual work items.

52) Percent complete is calculated by : A. AC/BAC B. EV-AC C. EV/BAC D. EAC/BAC

53) Life Cycle costing : A. Includes acquisition, operating and disposal costs when evaluating various

alternatives. B. Includes only the cost of the development or acquisition of a product or service. C. Does not take into consideration the effect of project decisions on the cost of

using the resulting product. D. Includes only direct costs.

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54) Analogous estimating :

A. Uses bottom-up estimating techniques. B. Is similar to parametric estimating C. Is generally more costly than other techniques. D. Uses the actual costs from a previous, similar project.

55) Estimate at completion is determined by : A. ETC – AC B. BAC – ETC C. BAC + AC D. BAC/CPI

56) Parametric estimating : A. Cannot produce higher levels of accuracy B. Is done at the end of the project lifecycle. C. Uses the actual cost of a similar project to estimate total project costs. D. Uses rates and factors based on historical experience to estimate costs.

57) A cost management plan is : A. A plan for describing how cost variances will be managed. B. A subsidiary element of the project charter. C. An input to the Estimate Costs process. D. Is an input to Develop Project Charter process.

58) Estimating costs : A. Involves linking project costs to the chart of accounts. B. Includes controlling factors that cause variations to the cost baseline. C. Involves aggregating the estimated cost of individual schedule activities. D. Involves developing an estimate of the costs of the resources needed to

complete project activities.

59) Which of the following items are not inputs to Control Costs ? A. Cost Baseline B. Performance Report C. Approved Change Requests D. Estimates to Complete

Questions : 60 – 63

TASK PV AC EV

1 9,500 10,000 9,500

2 15,000 13,000 11,000

3 13,000 13,000 13,000

4 8,000 8,000 9,000

5 10,000 10,000 9,000

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60) Which task is most over budget ? A. Task 1 B. Task 2 C. Task 3 D. Task 5

61) Which task is a head of schedule and under cost ? A. Task 1 B. Task 2 C. Task 3 D. Task 4

62) Which task is on schedule with a cost variance of $0 ?

A. Task 1 B. Task 2 C. Task 3 D. Task 5

63) Which task has the greatest schedule variance ? A. Task 1 B. Task 2 C. Task 3 D. Task 4

64) The process of evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards is called : A. Perform quality assurance B. Perform quality control C. Plan quality D. Review quality

65) The process of monitoring specific project results to determine if they comply with relevant quality standards is called : A. Perform quality assurance B. Perform quality control C. Plan quality D. Review quality

66) A histogram ordered by frequency of occurrence that shows how many results were generated by each identified cause is : A. Statistical Histogram B. Juran Histogram C. Fishbone Diagram D. Pareto Diagram

67) Tools and techniques used during the Plan Quality process include. A. Alternatives analysis B. Influence diagrams C. Quality audits D. Cost – Benefit analysis

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68) The overall intentions and direction of an organization with regard to quality as formally expressed by top management is a : A. Quality Plan B. Quality Statement C. Quality Policy D. TQM

69) The continuous improvement process A. Was designed by Crosby B. Involves targeted, innovative change C. Is based on an increasing number of inspections throughout the project. D. Includes constancy of purpose and commitment to quality as part of its focus.

70) The planned cost for the total project at its inception is called the _______________ A. Estimate at Completion (EAC) B. Latest revised estimate (LRE) C. Budget at Completion (BAC) D. Budgeted cost of work schedule (BCWS)

71) Quality is :

A. Zero defects found B. Conformance to customer baselines C. Number of features and functions D. The totality of features and characteristics of a product or service that bear on its

ability to satisfy stated or implied needs.

72) The concept of making a giant leap forward followed by a period of maturity is : A. Innovation B. Continuous improvement C. Just in time D. Paradigm

73) The concept that it is easier and less costly to do the work right the first time is called : A. Zero defects B. Continuous improvement C. DTRTRTFT D. The customer is the next person in the process.

74) The ability of a product to be used for different purposes at different capacities and under different conditions determines its : A. Usability B. Flexibility C. Operability D. Availability

75) Which of the following is not considered a cost of nonconformance to quality ? A. Scrap B. Rework C. Warranty Costs D. Process control

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76) Cost of quality includes : A. Cost of all work to build a product or service that conforms to the requirements B. Activity cost estimates C. Resource costs D. Cost of all work resulting from nonconformance to the requirements.

77) What percentage of sales is estimated to be the cost of non-quality ? A. 3-5% B. 12-20% C. 30-40% D. 6-8%

78) You are using a control chart to analyze defects, when something on the chart causes

you to realize that you have a serious quality problem : A. The rule of seven B. Upper control limits C. Lower control limits D. Plan – Do – Check – Act.

79) Which of the following statements concerning acceptance sampling is not true ? A. Used when expensive and time-consuming to test the product 100% B. Inspection and test standards must be established to ensure that procedures

can adequately determine conformance and nonconformance. C. If the number of defects found in the sample exceeds the predetermined

amount, the entire lot is rejected. D. Less than 7 deviations within 68.26% of the mean are acceptable.

80) 80% of the problems are found in 20% of the work is a concept of : A. Edward Deming B. Philip Crosby C. Juran D. Pareto

81) A structured tool, usually industry or activity specific, used to verify that a set of required steps has been performed is called : A. Quality Policy B. Checklist C. Trend Analysis D. Pareto Diagram

82) A tool that analyzes the inputs to a process to identify the causes of errors is called : A. Decision tree analysis B. Scatter diagram C. Monte Carlo Analysis D. Cause and effect diagram

83) The concept of Zero inventory is called : A. Six sigma B. Continuous improvement C. Just in Time D. Zero defects

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84) The project manager’s leadership style should be matched to the corresponding

developmental level of the project team and could move through successive steps in the following order : A. Disciplinary, autocratic, participative B. Staff planning, team training, performance monitoring C. Team building, team development, responsibility assignment D. Directing, coaching, supporting, delegating.

85) Human resource administration is the primary responsibility of the : A. Project Management Team B. Human Resources Department C. Project Manager D. Line Managers

86) What is an example of the ‘halo effect’ ? A. When a project manager is good, the team is good too B. The tendency to promote people who are good at technical jobs into managerial

positions C. When a project manager picks a star on the team and always rewards that

person D. When a technical person does such a great job that no one can find fault with

them.

87) Which of the following is best for handling cross-functional project needs for a large, complex project ? A. A strong matrix organization B. A project coordinator C. Direct executive involvement D. A functional organization

88) An example of a co-location strategy is : A. All, or almost all, team members are moved to decentralized physical locations B. Active team members may be at different physical locations. C. Virtual meeting rooms D. Establishing a war room where team members can meet periodically.

89) A key barrier to team development is : A. A strong matrix management structure B. When major problems delay the project completion date of budget targets. C. When team members are accountable to both functional and project managers. D. When formal training plans cannot be implemented.

90) To the project team, the most valuable document for integrating activities during project execution is : A. The project management plan B. The scope statement C. The scope baseline D. Variance reports

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91) Legitimate power is : A. Power derived from a person’s formal position in the organization. B. Power bestowed due to a person’s personal qualities and abilities. C. Power earned based on a person’s technical knowledge, skill, or expertise in a

particular area. D. Power to distribute information as one sees fit.

92) Your project is running out of cash and significant work remains. You are directed by senior management to instruct your people to use another project’s charge numbers while working on your project. You should : A. Follow instructions. B. Inform the corporate auditors C. Understand the background of management’s instructions before taking any

action D. Shutdown the project, if possible.

93) Which of the following is not a process of Project Human resource management ? A. Develop Human Resource Plan B. Acquire Project Team C. Distribute Information D. Develop Project Team

94) A technique for resolving conflict in which the parties agree to have a neutral third party hear the dispute and make a decision is called : A. Negotiation B. Arbitration C. Smoothing D. Forcing

95) Which of the following is not an output of human resource planning ? A. Team performance assessment B. Role and responsibilities C. Project organization charts D. Staffing management plan

96) Forcing, as a means to manage conflict : A. Experts one’s view at the potential expense of another party. B. Emphasizes areas of agreement while avoiding points of disagreement. C. Establishes a lose-lose situation. D. Is also known as “Management by objectives”.

97) A project manager is giving a presentation to the customer about the status of a project. Which one of the following things should the project manager not do ? A. Check to see if the lighting of the room is acceptable. B. Wear attire that shows respect for the customer C. Start by saying “I wish I had more time to prepare” D. Welcome the customer and allow questions.

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98) The belief that management’s high levels of trust, confidence and commitment to workers leads to high levels of motivation and productivity on the part of workers is a part of which motivation theory ? A. Maslow’s Hierarchy of Needs B. Theory Z C. Theory X D. Contingency Theory

99) Which of the following is part of the expectancy theory of motivation ?

A. Clear, specific, and challenging goals generally motivate team members. B. Project managers should ensure that tasks assigned to project participants

match their skills and the organizational climate is conducive to helping them meet their needs and achieving a sense of competence.

C. People tend to be highly productive and motivated if they believe their efforts will lead to successful results and that success will lead to personal rewards.

D. People will be motivated to work if their personal needs are met.

100) Which of the following statements concerning compromise as a conflict resolution strategy is false ? A. Neither party wins but both parties get some degree of satisfaction. B. Important aspects of the project may be hindered in order to achieve personal

objectives C. Compromise is generally considered a ‘lose-lose’ situation. D. A Definitive resolution is seldom achieved.

101) In which type of organization is team building likely to be most difficult ? A. Functional B. Projectized C. Matrix D. Hierarchical

102) A document or tool which describes when and how human resource requirements will be met is called a : A. Staffing management plan B. Responsibility assignment matrix (RAM) C. Organizational breakdown structure (OBS) D. Resource assignment chart

103) A tool which links the project roles and responsibilities to the WBS is called : A. Scope definition matrix B. Responsibility assignment matrix C. Roles assignment matrix D. Project scope and roles matrix

104) Which of the following is not a process of Project Communications Management ? A. Manage Stakeholder Expectations B. Report Performance C. Distribute Information D. Resolve Conflicts

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105) Which of the following is an output from the Plan Communications process ? A. Project Reports B. Communications management plan C. Performance reports D. Formal acceptance

106) You are asked to write a paper for your sponsor so that he/she can present it at a

technical meeting. You are informed that his/her name will be the only name on the paper. You should : A. Follow instructions B. Follow instructions and request that your name appears, too C. Refuse to follow the instructions D. Go over the head of your sponsor seeking advice.

107) 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%

108) You created a communication plan, and the team is now working on the project. You’re looking at the work performance information to evaluate the performance of the project. Which of the following best describes what you should do next ? A. Use formal written communication to inform the client of the project status. B. Compare the work performance information against the baselines and look for

deviations C. Update the organizational process assets with your lessons learned. D. Hold a status report.

109) You’ve consulted your Earned Value calculations to find out the EAC and ETC of your project. Which of the following is the best place to put that information ? A. Work performance information B. Forecasts C. Quality control measurement D. Lessons learned

110) You have just started work on the scope statement. While analyzing the deliverables, you discover that it can be delivered in three different ways and your need to select the best approach. What is the best way to describe what you are doing ? A. Decomposition B. Alternative analysis C. Scope definition D. Stakeholder analysis

111) The three major types of communication are : A. Written, verbal, and non-verbal B. Verbal, formal documentation, informal documentation. C. Verbal, written, and graphic D. Verbal, written, and electronic.

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112) All of the following are outputs from Report Performance except : A. Trend analysis B. Performance reports C. Requested changes D. Forecast

113) Each of the following describes the use of an ethical approach except : A. Attempting to understand the religious and cultural sensitivities of the country in

which you have been assigned. B. Ensuring that personal interest does not interfere with your decision making

process. C. Accepting gifts in exchange for favoring one contractor over another. D. Maintaining confidentially of sensitive information obtained during the project life

cycle.

114) All of the following are communication tools except : A. Memos B. Issue logs C. Body language D. Entering data into a spreadsheet.

115) which of the following is true ?

A. ISO 9000 is a European standard B. ISO 9000 is a paperwork nightmare C. ISO 9000 certification ensures that your company produces quality products D. ISO 9000 is an international standard for quality management systems.

116) In making key changes to project activities, it is important to have a formal change

process and a _____________________responsible for approving or rejecting requests. A. Stakeholder B. Change control board C. Subject matter expert D. Project manager

117) The corporate approach to quality is usually spelled out in the quality policy. The single

most important aspect of successfully implementing the policy is to : A. Provide consistency throughout the organization B. Have top management fully support the policy C. Set objectives that are attainable D. State specific deadlines.

118) A newly-formed project team typically exhibits while of the following characteristics ?

A. Clear channels of authority B. Role conflict struggles C. Trust D. Team understanding

119) A leadership style in which the project manager shares problems with team members and formulates solutions as a group is called : A. Autocratic B. Consultation in a group C. Consensus D. One-to-one consultation

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120) In negotiating with functional department managers, project managers often find themselves using which two-party conflict management approach ? A. Win-Lose B. Win-win C. Lose-Lose D. Lose-Win

121) Project managers spend a considerable amount of time communicating and interacting with project stakeholders. Which of the following is the most useful reminder for project managers ? A. Analyze the work occasionally to determine what can be eliminated B. Keep the priorities clear C. Schedule the most interesting activities at energy peaks D. When problems arise, blame the stakeholders

122) Formal acceptance by the client or sponsor of the project should be prepared and distributed during which process. A. Distribute Information B. Close Project or Phase C. Plan Organization D. Report Performance

123) In which of the following organizations is the project manager;s role likely to be full-time ? A. Weak matrix B. Functional C. Optimized matrix D. Strong matrix

124) Project Risk Management includes all of the following processes except : A. Identify Risks B. Plan Risk Responses C. Scope Risks D. Monitor and Control Risks

125) Using the PMBOK definition of contingency reserves which are used at the discretion

of the project manager, 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.

126) Which of the following is not a tool or technique used during the Perform Quantitative Risk Analysis Process ? A. Interviewing B. Contingency planning C. Decision tree analysis. D. Sensitivity analysis

127) Which of the following is true about risk ?

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

B. Pure risks involve the chance of both a profit and a losses. C. No opportunities are associated with speculative risk, only losses. D. Pure risk can be deflected or transferred to another party through a contract or

insurance policy.

128) A contingency plan is : A. A planned response that defines the steps to be taken if an identified risk event

should occur. B. A work around C. A reserve used to allow for future situations which may be planned for only in

part. D. A deviation from the baseline.

129) The ultimate purpose of project risk management is risk : A. Analysis and reporting B. Identification and handling C. Assessment and quantification D. Contingency planning.

130) A risk response strategy which involves eliminating a threat is called : A. Mitigate B. Deflect C. Avoid D. Transfer

131) Entering into a contract with an insurance company is an example of which risk response strategy ? A. Transfer B. Mitigate C. Acceptance D. Insurance

132) When should risk identification be performed ?

A. During concept phase B. During development phase C. During Implementation phase D. Risk identification should be performed on a regular basis throughout the

project.

133) Which of the following statements is false ? A. Uncertainty and risk are greatest at the start of the project and lowest at the end. B. The amount at stake is lowest at the end of the project and greatest at the start. C. Expected monetary value can be expressed as the product of the risk event

probability and the risk event value. D. Opportunities are positive risks that may benefit project objectives, if pursued.

134) A contingency plan is executed when :

A. A risk is identified B. An identified risk occurs C. When a work around is needed. D. There is a deviation from plan

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135) Management contingency reserves are used to handle which of the following :

A. Unknown unknowns B. Known unknowns C. Business risks D. Pure risks

136) Which of the following network analysis techniques uses a weighted average to compute estimated durations. A. CPM B. PERT C. Schedule simulation D. Path convergence method

137) Most schedule simulations are based on which of the following ?

A. Delphi B. PERT C. CPM D. Monte Carlo analysis

138) When should a risk be avoided ?

A. When the risk event has a low probability of occurrence and low impact. B. When the risk event is unacceptable – generally one with a very high probability

of occurrence and high impact. C. When it can be transferred by purchasing insurance. D. A risk event can never be avoided.

139) If a project has an 80% chance of having the scope defined by a certain date and a 70% chance of obtaining approval for the scope by a certain date, what is the probability of both events occurring ? A. 75% B. 65% C. 50% D. 56%

140) The independence of two events in which the occurrence of one is not related to the

occurrence of the other is called : A. Event phenomenon B. Independent probability C. Statistical independence D. Statistical probability

141) The one document that should always be used to help identify risk is the : A. Risk management plan B. WBS C. Scope statement D. Project charter

142) Risks are accepted when : A. You develop a fallback plan to execute should the risk event occur. B. You avoid the consequences of the risk C. You reduce the probability of the risk event occurring. D. You develop a contingency plan to execute should the risk event occur.

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143) An example of risk mitigation is : A. Using proven technology in the development of a product to lessen the

probability that the product will not work. B. Purchasing insurance C. Eliminating the cause of a risk D. Accepting a lower profit if costs overrun.

144) If the seller is paid a preset amount for delivery of a product or service, it is : A. A cost reimbursable contract B. A cost plus percentage contract C. A fixed price contract D. A unit price contract

145) Which of the following is not considered during the Plan Procurements process ?

A. Whether to procure B. How to procure and how much to procure C. What and when to procure D. Who to procure from

146) From a buyer’s standpoint, which of the following is true ?

A. Plan procurements should include consideration of potential subcontracts. B. Plan procurements does not include consideration of potential subcontracts

since this is the duty of the contractor. C. Subcontractors are first considered during the Adminsiter Procurements. D. Prior performance from a seller is not considered during the Conduct

Procurements

147) Which of the following processes involves obtaining information (bids and proposals) from prospective sellers ? A. Plan Procurements B. Close Procurements C. Administer Procurement D. Conduct Procurements

148) Which of the following is not true about procurement documents ?

A. Procurement documents are used to seek 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. They are an output of the Conduct Procurements process.

149) Which of the following is a method for quantifying qualitative data in order to minimize the effect of personal prejudice on selecting the seller ? A. Weighting System B. Screening System C. Selecting system D. Scoring system

150) Which of the following is not true about evaluation criteria ? A. Can often be found in procurement documents B. Can be objective or subjective. C. Used to rate or score proposals D. They are strictly limited to purchase price only.

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151) Which of the following are inputs to the Conduct Procurements process ?

A. Project schedule B. Contract C. Internet search D. Procurement documents

152) A significant difference between independent estimates and proposed pricing could

mean that : A. The independent estimates are most likely incorrect and the proposed pricing

correct B. The SOW was adequate. C. The prospective seller responded fully to the SOW. D. The marketplace has changed.

153) An example of indirect costs would be : A. Rental of project office B. Salaries of full-time project staff C. Costs of materials used in the project D. Salaries of corporate executives

154) Which of the following contract types places the greatest risk on the seller ? A. Cost-plus-fixed-fee-contract B. Cost plus-incentive-fee contract C. Fixed-price-incentive contract D. Firm-fixed-price contract

155) In which of the following contract types is the seller’s profit variable A. Firm-fixed-price contract B. Cost-plus-fixed-fee contract C. Fixed-price-contract D. Cost-plus-incentive-fee contract

156) A cost-plus-fixed-fee (CPFF) contract has an estimated cost of $ 120,000 with an agreed fee of 10% of the costs. The actual cost of the project is $ 130,000. A. $ 142,000 B. $ 143,000 C. $ 140,000 D. $ 130,000

157) A cost-plus-incentive-fee (CPIF) contract has an estimated cost of $ 150,000 with a predetermined fee of $ 15,000 and a share ratio of 80/20. The actual cost of the project is $ 130,000. What is the seller’s final fee ? A. $ 31,000 B. $ 19,000 C. $ 15,000 D. $ 0

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158) A fixed-price-plus-incentive-fee (FPIF) contract has a target cost of $ 130,000, a target profit of $ 15,000, a target price of $ 145,000, a ceiling price of $ 160,000, and share ratio of 80/20. The actual cost of the project was $ 150,000. What is the fee the seller is entitled to claim ? A. $ 10,000 B. $ 15,000 C. $ 0 D. $ 5,000

159) Under what circumstances is it better for a contractor to subcontract ?

A. The subcontractor does not possess any 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 higher cost than the contractor. D. The subcontractor can perform the work at a lowest cost than the contractor.

160) During negotiations the most important goal for both parties should be to : A. Identify all procurement risks B. Establish effective communication channels between both parties C. Arrive at a price that is fair to both parties. D. Agree on the lowest price possible.

161) Which of the following are characteristics of a purchase order ? A. A contract used for variably – priced items B. A contract used when routine, standard cost items are required. C. A contract used for customized items D. A contract used when high dollar, non-standard items are required.

162) A buyer and seller expect to spend the next 6 months in negotiation of a complex contract, as part of a 5-year business agreement. Which of the following negotiation styles will provide the most mutually beneficial solution. A. Passive B. Competitive C. Expedient D. Cooperative

163) Which type of warranty is enacted if a service or product does not meet the level of quality specified in the contract ? A. Implied warranty of merchantability B. Implied warranty of specified quality. C. Express warranty D. Extend warranty

164) The most expensive phase of life cycle costing is typically : A. R & D B. Applied research C. Production D. Operations and support

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165) To maintain the customer’s schedule, massive overtime will be required between Christmas and New Year. Many of your team members have put in for vacation during this time. You should : A. Let the schedule slip and inform the customer B. First give the employees the choice of working overtime C. Make the employees cancel their vacation plans and work overtime D. Hire temporary employees for the overtime.

166) The work breakdown structure, the work packages, and the company’s accounting system are tied together through the : A. Cost account codes B. Overhead rates C. Budgeting system D. Capital budgeting process.

167) You receive a contract to perform testing for an external client. After contract award, the customer provides you with the test matrix to use for your 16 tests. The vice president for engineering says that the customer’s test matrix is wrong, and she will use a different test matrix, which should give better results. This is a violation of the SOW. Suppose your sponsor is also the vice president for engineering. You should : A. Use the customer’s test matrix B. Use the engineering test matrix without telling the customer C. Use the engineering test matrix and inform the customer D. Tell your sponsor that you want to set up a meeting with the customer to

resolves the conflict.

168) As part of the quality audit, the scope statement is checked against the work results to ensure the conformance to the customer requirements. The results should be documented and used for : A. Estimating future projects B. Changing the project scope C. Defining future tasks in the project D. Validating the quality process.

169) The most precise and accurate type of estimate for determining project costs is the ___________________estimate. A. Definitive B. Analogy C. Budget D. Modified standards.

170) As part of your project management plan you must develop an effective method of communication for your multinational team of stakeholders. You have several choices of media available. The appropriate action to take in the development of the communication plans would be to : A. Discuss the available options with the stakeholders and obtain their input B. Use the standard media that has been in effect for your previous projects C. Use multiple forms of media to ensure that everyone receives the information. D. Obtain additional funding from the project sponsor and develop a project specific

communications infrastructure.

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171) Once the logic of a network is laid out the project manager will conduct a forward pass and then a backward pass through the network. Doing this will provide information on the _________ and the identification of the ____________________ A. Slack for each activity, critical path B. Slack for each activity, high risk activities C. Manpower shortages, high risk activities D. High risk activities, non-critical paths.

172) Increasing resources on the critical path activities may not always shorten the length of the project because : A. No activities are time-dependent or resource-dependent B. Governmental regulations never placed restrictions on the number of people

used on certain activities or in the physical location of the project. C. The skill levels of the added resources are always appropriate for the activities

to be performed. D. Adding more resources may create additional work and produce inefficiencies

(e.g. additional people may need training and supervision).

173) Develop Project Charter is all of the following except : A. A process of formally recognizing that a new project exists. B. A process of formally recognizing that an existing project should continue into its

next phase. C. It links the project to the ongoing work of the performing organization. D. A process whose inputs are product description, expert judgement, project

selection methods.

174) Inputs used in Develop Project Charter include : A. Business case and the contract B. Koeing analysis C. Sales projections D. Iterative risk sensitivity analysis

175) Among the common types of Develop Schedule tools and techniques are Schedule Network Analysis, Critical Path Method and : A. Critical chain method B. Time phased events C. Calendar-integrated activities D. Activity on Line

176) The items at the lowest developed level of the WBS are called : A. Code of accounts B. Subtasks C. Work packages D. Nodes

177) All of the following statements about the project charter are correct except : A. It is often an internal legal document B. It identifies the project manager’s authority and responsibility. C. It identifies management and /or customer approved scope of the project. D. It usually does not identity cost and time estimates.

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178) Which of the following does not represent the critical path ? A. Has a high degree of risk B. Will delay the project completion date if the activities on this path take longer

than anticipated. C. Generally the longest path through the project. D. Has the least amount of risk.

179) Projects are typically authorized as a result of any of the following except :

A. Market demand B. Successful RFP bidding C. Legal requirement D. Technological advance

180) A scope change control system : A. Defines the procedures by which the project scope may be changed. B. Is an information management system to support identifying, documenting, and

managing project scope changes. C. Is a system of discipline to effectively control change within the scope of a

project. D. Is a tool for the project manager to justify budget changes.

181) Based upon the situation, which method shown below would normally not be acceptable for shortening the schedule. A. “Crashing” B. Changing the scope C. Performing activities in parallel rather than in series D. Taking away resources.

182) The work that must to done in order to deliver a product with the specified features and functions is : A. Product scope B. Staffing scope C. The project D. Project scope

183) Which of the following best describes the purposes of the project scope statement ? A. It describes the features of the product and project. B. It is created before the scope management plan C. It describes the objectives, requirements, and deliverables of the project. D. It decomposes deliverables into work packages.

184) The techniques commonly used to determine the profitability of a project include all of the following : A. Net present value (NPV) B. Internal rate of return (IRR) C. Payback period D. Risk assessment model (RAM)

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185) Upon completion of 75% of the project, the schedule and cost estimates incorporating all approved changes are referred to as the : A. Baseline B. Budgeted costs C. Estimates upon completion costs D. Scheduled costs

186) Developing a written project scope statement as the basis for future project decisions

is part of the following process : A. Analyze Product B. Plan scope C. Develop project D. Define scope

187) Techniques for conducting product analysis include : A. Technical benefit analysis B. Value engineering C. Expert judgement D. Alternative identification

188) Define scope includes alternatives identification, which can be conducted by the common technique of : A. Lateral thinking B. Value engineering C. Cost/benefit analysis D. Constraints analysis

189) A project scope management plan describes : A. An assessment of the stability of the stakeholder environment B. A highly detailed approach to managing the work breakdown structure scope C. How the project scope will be defined, documented, verified, managed and

controlled by the project management team. D. The stakeholders expectation on how changes will be identified and by what

priority they will be addressed.

190) Decomposition is : A. What happens when changes to the project scope are ignored. B. Subdividing the major project deliverables into smaller, more manageable

components C. Defining a general product description into more discrete definitions of individual

components. D. Subdividing the project into logical divisions of effort aligned within the

performing organization’s functional areas.

191) A project management professional can use earned value performance data in all of the following processes except : A. Distribute information B. Administer procurements C. Monitor & Control risks D. Verify scope.

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192) You are the controller on your project. Your project manager has requested that you provide him with a forecast of project costs for the next 12 months. He needs this information to determine if the budget should be increased or decreased on this major construction project. In addition to the usual information sources, which of the following should you also consider ? A. Cost estimates from similar projects B. The WBS C. Long-range weather forecasts D. Existing requested changes.

193) Earned value should be used to estimate final project costs because it A. Tests the “official” position of the project against a statistically forecasted range

of final possibilities based on actual project performance. B. Provides management with the final BAC, PV and EV C. Shows specific tasks in which cost overruns are expected to occur and, thus,

focuses the project manager’s attention on critical tasks. D. Ensures that management reserve or contingency will not be needed.

194) The seller delivers a fixed price plus incentive fee project at a cost of $90,000. The terms of the contract are a ceiling price of $120,000, a target cost of $100,000, a target profit of $10,000 and a target price of $110,000. The share ratio is 70/30. The final price (your total reimbursement) is : A. $ 93,000 B. $ 96,000 C. $ 97,000 D. $ 103,000

195) The party that provides funding to the project and who will be the custodian of the deliverable on completion is the…” A. Owner B. Sponsor C. Customer D. Client

196) In managing international, multinational and transnational projects, all of the following

could present communication challenges, except : A. Cultural communication matrix analysis B. Misinterpretation of body language C. Language and educational difference D. Lack of trust

197) With respect to global projects, which of the following is most accurate ? A. ISO standards suggest that identified third world countries generally have

unstable economies and should not be sanctioned to host projects with estimated durations greater than one year.

B. Project performance reports should be prepared and distributed using the language of the host country.

C. To compensate for time-zone differences, project team members should establish staggered work hours to ensure that the team always works simultaneously.

D. Using the PMBoK guide could provide a common language to help facilities breaking some project barriers.

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198) Negotiable across different cultures can be extra challenging, especially when little is known about each other. Successful cross-cultural negotiation should be conducted in an atmosphere of ___________________ A. Uncertainty and caution B. Generalities and vagueness C. Mutual trust and cooperation D. Sincerely and compassion

199) As a practicing PMP, you have a responsibility for all of the following except : A. Satisfy the scope and objectives of your professional services B. Provide accurate and truthful representations in the preparation of estimates

regarding costs, services and expected results. C. Ensure that each project has a fully developed project charter in strict

accordance with PMBoK guide dictates D. Respect the confidentiality of sensitive information.

200) You are managing the design and construction of a public water supply annex. Tests indicates contaminants in the water likely from your activities. You are told there is an extremely low risk for causing any sickness. As project manager, you should : A. Inform the public that a detailed examination has been ordered to determine the

extent to which the problem exists. B. Do nothing because there is extremely low risk for sickness except for some

effects on small children and the elderly. C. Tell the public there is no problem, except for small children and the elderly who

need to boil the water before drinking. D. Educate the public about the advances on water treatment technology and the

industry efficiency and safety record.