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1. Regarding management and leadership all of the following are true except

On a project, particularly a larger project, the project manager is generally expected to be the project's
leader as well.
Technical leadership is of primary importance in project management
Managing is primarily concerned with consistently producing key results expected by stakeholders
Leading involves establishing direction, aligning people, motivating and inspiring
Answer: B

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.

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.
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 these projects' revenues 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%.
Answer: D

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 acceptable control limits
are 19.955 cm and 20.045 cm.
The measurements made at the end of the process yielded the following results:

20.033 cm, 19.982 cm, 19,995 cm, 20.006 cm, 19.970 cm, 19.968 cm, 19.963 cm, 19.958 cm, 19.962 cm,
19.979 cm, 19.959 cm.

What should be done?

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

The process should be adjusted.
The control limits should be adjusted.
The measuring equipment should be recalibrated.
Answer: B

What are the 4 stages of team development?

Forming, Storming, Norming, Performing.

Enthusiasm, Hope, Panic, Solution.
Assignment, Kickoff, Training, Communicating.
Direction, Motivation, Cooperation, Collaboration.
Answer: A

During a software project Earned Value Analysis is performed and gives the following results:
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.
Answer: D

Which of the following is not normally an element of the Project Charter?

The formal authorization to apply organizational resources to project activities.

Work package descriptions.
The business need that the project was undertaken to address.
The product description or a reference to this document
Answer: B

Which process is applied to break down the project into smaller, more manageable elements?

Scope Planning.
Activity Duration Estimating.
Scope Definition.
Scope Verification.
Answer: C

Which of the following Tools and Techniques are part of Risk Management Planning?

Risk planning meetings.

Documentation reviews.
Data precision rankings.
Diagramming techniques.
Answer: A

All of the following statements concerning project stakeholders are true except

Differences between or among stakeholders should be resolved in favor of the customer.

Managing stakeholder expectations may be difficult because stakeholders often have very different
objectives, that may come into conflict.
Project stakeholders may influence the course of the project and its results.
Differences between or among stakeholders should be resolved in the most cost efficient manner consistent
with project objectives.
Answer: D

Which of the following is the output of Source Selection?

Proposals.
Evaluation criteria.
Contract negotiation.
Contract.
Answer: D

11. Which type of leadership is best suited for optimizing team performance in projects?
A. Democratic leadership.
B. Participative leadership.
C. Autocratic leadership.
D. Benevolent authoritative leadership

Answer: B

12. Where is the result node (outcome) shown on a typical Ishikawa or Fishbone diagram?
A. Top.
B. Bottom.
C. Right hand side.
D. Center.

Answer: C

13. A project management team has subcontracted work to a service company. The process of
ensuring that this service company's performance meets contractual requirements is called
A. Contract Administration.
B. Staff Acquisition.
C. Contract Closeout.
D. Contract Negotiation

Answer: A

14. What are workarounds in project management?

A. Workarounds are essentially the same as rework.
B. Workarounds are alternative strategies.
C. Workarounds are unplanned responses to emerging risks that were previously unidentified
or accepted.
D. Workarounds are activities performed according to applicable contingency plans

Answer: C

15. What are faits accomplis?

A. A French dinner after a kick-off meeting.
B. Unachievable deliverables.
C. Accomplished objectives.
D. Decisions made earlier which limit the options for decision making.

Answer: d

16. 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.Upon further investigation, he determines that this occurred because there were no other
project assignments available for these people.The customer is unaware of these facts.

What should the project manager do?

 A. Try to find some productive work for these staff members in the project and leave them on
the team.
B. The best thing is to do nothing.The customer will not realize the problem anyway.
C. Try to find a responsible person for the over-assignment who can be made accountable.
D. Take the two people off the team immediately and arrange for the refund of the excess
charges to the customer .

Answer: d

17. In the following network logic diagram start dates are defined as early morning, finish dates are
evening.

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

A. Activity B has a free float of 10 d.

B. Activity B has a total float of 10 d.
C. Activity A has a free float of 10 d.
D. Activity A has a total float of 10 d.

Answer: B

18. Which of the following is not considered to be part of Project Resource Management?
A. Working staff.
B. Materials.
C. Equipment.
D. Time and money.

Answer: D

19. Tools and Techniques of Risk Response Planning include

A. Identifying, quantitative and qualitative analysis, monitoring and control.
B. Avoidance, transference, mitigation, acceptance.
C. Identification, assessment of magnitude and probability, assessment of costs of
response .
D. Risk management reviews

Answer: B

21. A project manager performs Earned Value Analysis and finds the following values:

EV: 100,000; PV: 125,000; AC: 100,000

 A. The project is on schedule but costs exceed budget.
B. The project is on schedule and on budget.
C. The project is behind schedule but on budget.
D. Then project is behind schedule and costs exceed budget.

Answer: C

22. What are "Global Literacies"?.

A. The ability to read reports written in many different languages.
B. The ability to succeed in a cross cultural environment.
C. The ability to develop internationally accepted contracts.
D. The ability to communicate using drawings and pictograms which are understood all over
the world

Answer: B

23. During a project the scope of product purchased on a cost reimbursable contract has increased. In
the contract the contractor‘s indirect costs are calculated as 20 % of the direct costs. What is most
likely to be true?
A. The contractor‘s indirect costs will increase and the customer‘s payment for them will
increase, too.
B. The contractor‘s indirect costs will increase but the customer‘s payment for them not.
C. Neither the indirect costs nor the customer‘s payment for indirect costs will increase.
D. The contractor‘s indirect costs will not increase but the customer‘s payment for them will.

Answer: D

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?
A. Normal process variation is attributable to random causes.
B. Special causes are easier to predict and handle than random causes.
C. Special causes are unusual events.
D. A process can be optimized to limit the bandwidth of variations due to random causes.

Answer: B

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?

A. Projects should never be executed without a valid, updated and working project plan.
B. The project plan is secondary because it is only the results that matter.
C. 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.
D. Poor planning is one of the major reasons for cost and time overruns.

Answer: B

26. What is active risk acceptance?

A. Creating contingency reserves in money and time.
B. Developing a plan to minimize potential impact.
C. Developing a plan to minimize probability.
D. Making additional resources available
 Answer: A

27. Project costs are over budget when

A. CPI > 1.
B. CPI < 1.
C. CPI < 0.
D. SPI = 1.

Answer: B

28. Which of the following statements is not true?

A. Only those who realize that cultural differences are a resource to be fully utilized will
survive.
B. There is a common ground for people from different cultures on which they can interact
without unsolvable conflicts.
C. Cultural differences will always be an obstacle to be overcome.
D. Culture is a critical lever for competitive advantage.

Answer: C

29. What is a quality audit?

A. A team meeting dedicated to measuring and examinations.
B. A quality based inspection of work results.
C. A structured review of quality management activities.
D. A meeting with the customer to identify quality requirements.

Answer: C

30. You are assigned as the project manager in a project with an aggressive schedule. During a recent
meeting your team complained about the high pressure applied and the many hours of overwork
time.

What is the preferred solution to handle the problem?

A. Try to obtain additional budget and time.

B. Improve team communication and availability of high quality data on risks. Use this
information to enable you to make well-founded decisions earlier.
C. The problem might be the customer disturbing project rhythm. Keep him on distance from
the team.
D. Apply fast tracking to shorten project duration without additional work.

Answer: A

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?
 A. 36 days
B. 37 days
C. 39 days
D. 42 days

Answer: B

32. Which of the following statements is true concerning Scope Definition?

A. The Activity List is a principle output used for resource allocation and is an input to
network diagramming.
B. The Scope Statement is a principle output containing a narrative description of project
work and deliverables.
C. The Project Charter is a principle output and authorizes the project.
D. The Work Breakdown Structure is a principle output and should be broken down to a level
which allows sufficient accuracy in planning.

Answer: D

33. All the following statements regarding "whistleblowing" are true except
A. It is the term used to define an employee’s 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 include possible being
branded as having bad judgment, firing, civil action and imprisonment.
D. Carefully considered whistleblowing can lead to the end of unethical business practices.

Answer: B

34. Which of the following statements is not true?

A. Attribute sampling is the process of assessing whether results conform to specifications or
not.
B. Prevention means keeping errors out of the process
C. Variables sampling means that the result is classified into one of the 3 categories:
"acceptable" - "acceptable after rework" - "rejected".
D. Inspection means keeping errors out of the hands of the customer.

Answer: C

35. Why should assumptions be documented?

A. Assumptions might prove to be wrong. Knowing which assumptions were incorrect allows
baseline adjustments in case of project crisis.
 B. Assumption analysis is a valuable tool and technique of Risk Identification.
C. Assumptions limit the project management team's options for decision making.
D. In case of schedule or budget overruns, the documentation of assumptions supports a
clear assignment of responsibility.

Answer: B

36. All the following statements are true except

A. It is axiomatic of the quality management discipline that the benefits outweigh the costs.
B. Quality should be tested and inspected into work results on a regular base.
C. The primary cost of meeting quality requirements is the expense associated with project
quality management activities.
D. The primary benefit of meeting quality requirements is less rework, which means higher
productivity, lower costs, and increased stakeholder satisfaction.

Answer: B

37. Which of the following statements about diagramming methods is not

A. PDM is the same as AON.
B. ADM is the same as AOA.
C. GERT is the same as System Dynamics Model.
D. GERT and System Dynamic Model are examples of conditional diagramming methods

Answer: C

38. A project is managed by a project coordinator. Which of the following statements is most likely to
be true?
A. The performing organization is a weak matrix.
B. The performing organization is doing "management by projects".
C. The performing organization is a strong matrix.
D. The performing organization is projectized.

Answer: A

39. Which of the following statements concerning cross-cultural differences is true?

A. There is no one "best way" for project organization.
B. Some cultures have values, some not.
C. Cultural dilemmas should be denied to not allow them to disrupt project work.
D. Communicating across cultures should only be done using language. The nonverbal
dimension bears too many risks.

Answer: A

40. What are dummy activities?

A. Activities in PDM which are not necessary and can be dropped if time is running out.
B. Arrows in ADM which represent dependencies between nodes without real activities.
C. Activities, which can be passed to the team members with the lowest IQ.
D. Activities in PDM which are not performed by team members.

Answer: B

41. Which of the following are not cost of quality?

A. Prevention costs.
B. Failure costs.
C. Transportation costs.
D. Appraisal costs.
 Answer: c

42. What is a trigger in project risk management?

A. An expected situation causing an unidentified risk event to occur.
B. A warning sign that an identified risk event might have occurred.
C. An unexpected situation causing an identified risk event to occur.
D. An unexpected situation causing an unidentified risk event to occur.

Answer: b

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

The project team received a note this morning informing them that the software delivery will be
delayed by 2 weeks.

This morning, the project team received a note that the software will be delayed by 2 weeks.

How should the project management team react?

A. The project management team should delay payment for 2 weeks.

B. The project management team must immediately find a different contractor.
C. The project management team should conduct a meeting with the contractor to resolve
the delivery issues before making the payment.
D. The project management team should make the payment and reschedule the project plan.

Answer: C

44. In a software company a large number of simultaneously performed projects utilize the same
groups of human and other resources.

What is the term commonly used for this situation?

A. Concurrent engineering.
B. Resource over-allocation.
C. Resource pooling.
D. Program management

Answer: c

45. What does the acronym RAM commonly stand for in project management?
A. Responsibility Assignment Matrix.
B. Remotely Applied Measurements.
C. Risk Aware Management.
 D. Randomly Accessible Material.

Answer: A

46. What is not handled as a constraint in project management?

A. Laws and regulations.
B. Limits of authorization.
C. Team preferences.
D. Physical constraints.

Answer: C

47. A precontract agreement that establishes the intent of a party to buy products or services is called
a
A. Seller initial response.
B. Seller immediate response.
C. Letter of intent.
D. Letter of credit.

Answer: C

48. What should not be part of a risk management plan?

A. Roles and responsibilities for handling risks.
B. Timing of risk management activities.
C. The managerial approach towards risk.
D. Individual risks

Answer: D

49. A project manager performs Earned Value Analysis and finds the following results:

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

BAC is 500,000.

What is right?

A. EAC = 400,000
B. EAC = 550,000
C. BTC = 400,000
D. ETC = 75,000.

Answer: B

50. The construction of a residential home will cost a certain amount per square foot of living space.
This is an example of what type of estimating?
A. Analogous estimating.
B. Bottom-up estimating.
C. Top-down estimating.
D. Parametric modeling.

Answer: D

51. Which of the following should not be reason for “rebaselining” in a project?
A. Scope changes.
B. Cost variances.
 C. Major schedule changes.
D. New information indicating that the basis for the original project cost estimates was
incorrec

Answer: B

52. When a change control system‘s provision for changes without formal review in case of emergency
is being utilized
A. Changes can be simply applied without further managerial activities if they help solving
the problem.
B. Changes must still be documented and captured so that they do not cause problems later
in the project.
C. A new change control board (CCB) should be established.
D. The project baseline must be changed as well.

Answer: B

53. Which of the following is generally not regarded to be a motivator according to Frederick Herzberg?
A. Working conditions and interpersonal relations.
B. Responsibility for enlarged task.
C. Interest in the task.
D. Recognition for achievement.

Answer: A

54. Companies and institutions commonly hire leaders with

A. A strong position in negotiating.
B. Experience in tricking business partners.
C. Integrity and expertise.
D. A strong link to local traditions.

Answer: C

55. You are the project manager and have contracted with a service provider to develop a complicated
software solution This software is necessary to control the machinery equipment which your project
team will develop. It is a lump-sum contract with additional incentives for meeting predefined
schedule targets. The payment schedule and incentives are as follows:

 10% with order

 20% after submission of prototype (+ 5% if delivered one week early)
 50% after product delivery (+ 5 % if delivered one week early)
 20% after final product acceptance (+ 5 % if delivered one week early)

Yesterday the company submitted the prototype to your project team. This was 2 weeks after the
scheduled delivery date and 3 weeks after the date necessary to qualify for the incentive payment.

This morning, the manager of the contractor approached you to ask for changes to the payment
schedule. They found that their initial work and costs were much higher than originally expected
and they now wish to increase the second payment to 30% and reduce the final payment to 10%.

During the discussion you got the impression that the company is in serious financial trouble.

Which of the following might be the most appropriate initial step?

A. Offer to pay 25% now and to reduce the final payment down to 15%.
B. Point out that the contractor is not in a position to demand a change to the contract.
C. Demand an urgent meeting with the seller.
 D. Revisit the planning processes of project risk management to understand the upcoming
risks in conjunction with the seller before any further decisions are made.

Answer: D

56. A review of management processes and the associated documentation is commonly called

E. Audit.
F. Inspection.
G. Testing and measuring.
H. Screening.

Answer: A

57. Which of the following is true in regard to the Code of Accounts?

I. It allows one to easily identify the breakdown level of the item in the resource structure.
J. It describes the coding structure used by the performing organization to report financial
information in its general ledger.
K. It is the collection of unique identifiers generally assigned to WBS items.
L. It defines ethical behavior in the project and the responsibilities to the customer and the
profession.

Answer: C

58. You are a member of your company's project office. The company is running many concurrent
projects; most of them share a resource pool. Understanding how resources are utilized across
projects is seen as being essential to cost effectiveness and profitability.

You recently received an inquiry to assess the benefits of using project management software to
manage the company's project portfolio.

Which of the following is true?

M. Project management software has the capability to help organize resource pools.
N. Project management software will dramatically simplify the task of leveling resources
across projects with different project management teams.
O. Supporting project portfolio management is not the project office's business.
P. Evaluating project management software is not the project office's business.

Answer: A

59. What are SMART objectives?

Q. Objectives specified with far more detail than necessary for a successful project.
R. Easily achievable objectives.
S. Objectives that should be achieved in order to attain formal recognition.
T. Objectives that have specific, measurable, assignable, realistic and time-related
specifications.

Answer: D

60. You have been assigned to a new project and have finished the scope statement. You and your
team are now going to create a Work Breakdown Structure. You are spending a lot of time
discussing how to create a completely decomposed Work Breakdown Structure.
 Which of the following is not relevant to this discussion?

U. Status/completion is measurable.
V. Time/cost is easily estimated.
W. Start/end events are clearly defined.
X. Resource availability can be reliably foreseen.

Answer: D

61. AC: 220,000, PV: 250,000, EV: 220,000.

A. CV = 0.
B. CV = 30,000.
C. CV = -30,000.
D. CV = 1

Answer: A

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 scheduled for today.

What do you think?

A. The information available is not sufficient to assess project performance.

B. The project will probably be completed with total costs remaining under budget.
C. A significant cost increase during the further course of the project will probably bring the
costs back to baseline level.
D. Original cost planning must have been poor to allow this variance.

Answer: A

63. Which is true regarding projects?

A. A project is a unique service undertaken to create a temporary product.
B. A project is a unique endeavor undertaken to create a temporary service.
C. A project is a temporary endeavor undertaken to create a unique product or service.
D. A project is a temporary product undertaken to create a unique endeavor or service

Answer: C

64. Which of the following statements describes the relationship between project phases and the
project life cycle?
A. The project lifecycle contains the iterative incremental elements inside a project phase.
B. Collectively, the project phases are known as the project life cycle.
C. The project lifecycle is regarded as a sequence of project activities while phases are
defined to control the overlapping of activities.
D. The project lifecycle contains the repetitive elements inside a project phase

Answer: B

65. A project management team discusses what scope means in a project.

All of the following statements are true except

A. The processes, tools, and techniques used by project scope management are mostly
depending on the application area.
B. Product scope includes features and functions that are to be included in a product or
service.
 C. Project scope includes the work that must be done in order to deliver a product with the
specified features and functions.
D. Project Scope Management includes the processes required to ensure that the project
includes all the work required and only the work required.

Answer: A

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

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

B. A graph that is to be integrated to generate a normal curve.
C. A metaphoric description of the short term uncertainties that are present in every project.
D. The graph that describes the typical growth of earned value during the course of the
project.

Answer: D

67. The output of the resource planning process is a document "resource requirements". This a
description of what types of resources are required in what quantities...
A. where the term resources is limited to equipment and materials.
B. for each element at the lowest level of the work breakdown structure.
C. where the term resources is limited to human resources.
D. to be obtained solely from the performing organization.

Answer: B

68. The major output document of Scope definition is the.

A. Hierarchically structured WBS.
B. Flat Activity List.
C. Narrative Scope Statement.
D. The Project Charter for the project manager

Answer: A

69. In regards of a cost baseline all of the following is true except

A. It is a time-phased budget that will be used to measure and monitor cost performance on
the project.
B. It can be easily created and updated as necessary.
C. It is developed by summing estimated costs by period.
D. It is usually displayed in the form of an S-curve.
 Answer: B

70. Which is not true in regard of RoI (Return on Investment)?

A. It defines the cumulated net income from an investment at a given point in time or during a
defined period.
B. It includes investment, direct and indirect costs and may include allowances for capital
cost, depreciation, risk of loss, and/or inflation.
C. It is generally stated in currency units, as a percentage or as an index figure.
D. It is the time when cumulated net income is equal to the investment.

Answer: D

71. Regarding Delphi Technique all of the following statements are true except
A. It is a way to reach a consensus of experts.
B. Experts are identified but participate anonymously while a facilitator uses a questionnaire
to solicit ideas.
C. The experts are encouraged by the facilitator to make direct contact with each other
during the assessment process to create a higher number of feedback loops.
D. The responses are submitted and are then circulated to the experts for further comment.

Answer: C

72. Regarding quality and grade all of the following statements are true except
A. Low quality is always a problem; low grade may not be. Grade is a category or rank given
to entities having the same functional use but different requirements for quality. Quality is
the totality of characteristics of an entity that bear on its ability to satisfy stated or implied
needs. Quality can simply be improved through intelligent testing and examining,
upgrading requires additional expenses.

Answer: D

73. Network templates which contain only portions of a network are often referred to as
A. Subnets or fragnets
B. Subprojects
C. Programs
D. WBS items

Answer: B

74. In making an investment in a project, investors require compensation for which of the following?
A. The risk-free rate of return plus a risk premium plus a premium for inflation.
B. Sacrifice of immediate use of cash for consumption or other investments, possibility of
inflation and risk.
C. Payback period in years x investment x (1 + discount rate)periods.
D. Inflation and depreciation.

Answer: B

75. A summary activity in a network logic diagram is often referred to as a

A. Hammock.
B. Dangler.
C. Milestone.
D. Subtask.

Answer: A
76. When a project phase is finished, this is also known as a ____.
A. Kill point
B. Milestone
C. Scope creep
D. Quality metrics

Answer: A

77. Ongoing project planning is also known as ________.

A. Rolling wave planning
B. Buildup planning
C. Activity planning
D. Project processes

Answer: A

78. A ______looks at determining if the project idea is a realistic project.

A. Case project study
B. Feasibility study
C. Matrix study
D. Demand study

Answer: B

79. You are the project manager for a seminar and training session that approximately 2,000-2500
employees will be attending. You have rented a hall for the seminar; however, you are unsure
exactly how many people will attend. Moreover, the number of tables required will change
depending on attendance. The cost of the furniture should be considered?
A. Variable cost
B. Direct cost
C. Fixed cost
D. Transient cost

Answer: A

80. Which of the following is the correct formula for calculating present value of a business or
organization?

Note: R = Interest rate, n = time periods

A. Present Value = Future Value/(1+R)n

B. Present Value = Future Value/(1-R)n
C. Present Value = (1+R)n
D. Present Value = (1-R)n / Future Value

Answer: A

81. A narrative description of products or services to be supplied under contract is called:

A. the project plan.
B. a statement of work.
C. an exception report.
D. Pareto analysis.

Answer: B

82. An example of scope verification is:

 A. reviewing the performance of an installed software module.
B. managing changes to the project schedule.
C. decomposing the WBS to a work package level.
D. performing a benefit/cost analysis to determine if we should proceed with the project.

Answer: A

83. Which of the following is not an example of a source of scope change?

A. a variation in government regulations.
B. failure to include a required feature in the design of a telecommunication system.
C. a need to engage in bottom-up cost estimating.
D. introducing technology that was not available when scope was originally defined.

Answer: C

84. The subdivision of major project deliverables, as identified in the scope statement, into smaller,
more manageable components is called:
A. parametric estimation.
B. scope definition.
C. feasibility analysis.
D. benefit-cost analysis.

Answer: B

85. The process of establishing clear and achievable objectives, measuring their achievement, and
adjusting performance in accordance with the results of the measurement is called:
A. strategic planning.
B. alternative objectives inventory.
C. management by objectives.
D. contingency planning.

Answer: C

86. Configuration management is:

A. used to ensure that the description of the project product is correct and complete.
B. the creation of the work breakdown structure.
C. the set of procedures developed to assure that project design criteria are met.
D. a mechanism to track budget and schedule variances.

Answer: A

87. A fundamental tenet of modern quality management holds that quality is most likely to be achieved
by:
A. planning it into the project.
B. developing careful mechanisms to inspect for quality.
C. striving to do the best job possible.
D. conducting quality circle activities.

Answer: A

88. Your most recent project status report contains the following information: BCWP = 3,000, ACWP =
3,500, and BCWS = 4,000. The schedule variance is:
A. + 1,000.
B. + 500.
C. - 500.
D. - 1,000.
 Answer: D

89. Learning curve theory emphasizes that in producing many goods:

A. cost decreases as production rates increase.
B. average unit cost decreases as more units are produced.
C. materials become cheaper when they are purchased in bulk.
D. laborers become more productive because of technological advances.

Answer: B

90. Rearranging resources so that constant resource levels are maintained is called:
A. floating.
B. leveling.
C. restructuring.
D. crashing.

Answer: B

91. The _________ is a time-phased budget that will be used to measure and monitor cost
performance in the project.
A. work breakdown structure
B. project schedule
C. cost baseline
D. cost budget

Answer: C

92. To transfer most of the cost risk to the contractor, the client may use a ___________ contract.
A. cost plus award fee
B. cost plus incentive fee
C. cost plus fixed fee
D. fixed price

Answer: D

93. An appropriate sequence for risk management activities is:

A. risk identification, risk quantification, and risk response development and control.
B. risk identification, risk assessment, and risk planning.
C. risk identification, risk mitigation, and risk management.
D. risk identification, risk elimination, and risk mitigation.

Answer: A

94. Theory X holds that:

A. quality improvements lie in the hands of quality circles.
B. profits are tied to meeting schedule deadlines.
C. absenteeism is tied to poor working conditions.
D. workers are inherently unmotivated and need strong guidance.

Answer: D

95. All of the following are characteristics of parametric estimating except:

A. historical information.
B. quantifiable.
C. scalable.
D. activity lists.
 Answer: D

96. Inputs to cost budgeting include all of the following except:

A. cost baseline
B. cost estimate
C. work breakdown structure
D. project schedule

Answer: A

97. Inputs used during scope planning include all of the following except:
A. constraints.
B. project charter.
C. budget/cost analysis.
D. product description.

Answer: C

98. Cost control outputs include all of the following except:

A. estimate at completion.
B. budget updates.
C. revised cost estimates.
D. cost baseline.

Answer: D

99. Risk identification outputs include the following except:

A. decision trees.
B. inputs to other processes.
C. risk symptoms.
D. potential risk events.

Answer: A

100.Inputs into overall change control include all of the following except:
A. project plan.
B. change requests.
C. change control system.
D. performance reports

Answer: C

101.Activity duration estimate inputs include all of the following except:

A. resource requirements.
B. basis of estimates.
C. activity lists.
D. constraints.

Answer: B

102.All of the following are contract types except:

A. unit-price.
B. make-or-buy.
C. cost reimbursable.
D. lump sum.

Answer: B
103.Initiation inputs for a project include all of the following except:
A. product description.
B. strategic plan.
C. project charter.
D. selection criteria.

Answer: C

104.Responses to risk threats include all of the following except:

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

Answer: D

105.The process of performance reporting includes all of the following except:

A. status reporting.
B. progress reporting.
C. forecasting.
D. product analysis.

Answer: D

106.Constrained optimization methods of project selection include:

A. scoring models.
B. benefit-cost ratios.
C. multi-objective programming algorithms.
D. subjective analyses.

Answer: C

107.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. lump sum contracts offer sellers the greatest profit potential.
D. unit price contracts are illegal in many jurisdictions.

Answer: C

108. A Work Breakdown Structure (WBS) numbering system should allow project staff to:
A. identify the level at which individual WBS elements are found.
B. identify configuration management milestones.
C. estimate the costs of WBS elements.
D. provide project justification.

Answer: A

109.All of the following are true quality statements except:

A. Quality improvement depends upon better definit ion and increased awareness of the
requirements/specifications.
B. Project quality management must address both management of the project and the
product of the project.
C. Recognition of key actions required of each team member is necessary to meet quality
objectives.
D. Computer-aided design systems can improve quality, but only at the expense of an
increase in the cost of design.
 Answer: D

110.All of the following are examples of tools often used in cost estimating except:
A. parametric modeling.
B. analogous estimating.
C. bottom-up estimating.
D. activity duration estimates.

Answer: D

111.
A. $27.14.
B. $28.96.
C. $30.03.
D. $29.12.

Answer: D

112. Of the following estimates, which most accurately reflect the actual cost of the project?
A. conceptual estimates.
B. order of magnitude estimates.
C. preliminary estimates.
D. bottom-up estimates.

Answer: D

113. The most crucial time for project risk assessment is:
A. when a problem surfaces.
B. during the planning phase.
C. during the close-out phase.
D. after the project schedule has been published.

Answer: B

114. When there is uncertainty associated with one or more aspects of the project, one of the
first steps to take is to:
A. revise project plan.
B. conduct a risk-benefit analysis.
C. conduct a needs analysis.
D. increase the estimated cost of the project.

Answer: B

115. Including a contingency reserve in the project budget is intended to:

A. reduce the probability of scope changes.
B. increase the probability of scope changes.
C. reduce the probability of a cost overrun.
D. increase the probability of a cost overrun.

Answer: C

116.Given the information in the following table, what is the expected value from this risk event?
Probability Result
.4 -10,000
 .3 -7,500
.2 -5,000
.1 +2,500
A. -10,000.
B. - 7,500.
C. + 2,500.
D. -7,000.

Answer: D

117. A contractor is working on a fixed price contract that calls for a single, lump sum payment
upon satisfactory completion of the contract. About halfway through the contract, the contractor's
project manager informs their contract administrator that financial problems are making it difficult
for them to pay their employees and subcontractors. The contractor asks for a partial payment for
work accomplished.

Which of the following actions by the buyer is most likely to cause problems for the project?

A. starting partial payments for work accomplished.

B. making no payments because it would violate the conditions of the contract.
C. paying for work accomplished to date.
D. negotiating a change to the payment conditions in the contract.

Answer: B

118.A precise description of a physical item, procedure, or service for implementation of an item or
service is called a:
A. work package.
B. baseline.
C. product description
D. work breakdown structure (WBS) element.

Answer: C

119. A project should be terminated for all of the following reasons except:
A. lack of team synergy.
B. the project no longer meets the company's objectives.
C. the resources are not available to complete project activities.
D. project funding has been significantly reduced.

Answer: A

120. One common way to compute estimated at completion (EAC) is to take the project
budgeted-at-completion and:
A. divide it by the schedule performance index.
B. multiply it by the schedule performance index.
C. multiply it by the cost performance.
D. divide it by the cost performance index.

Answer: D

121.Which of the following is a tool used to secure expert judgment?

A. Peer review
B. Delphi technique
C. Expected value technique
 D. Work Breakdown Structure (WBS)

Answer: B

Explanation: The 'Delphi technique' is a commonly used tool to secure expert judgment while
initiating a project.

'Peer review' is a project selection tool, 'Expected value' is a method quantitative risk analysis, and
'WBS' is a project-planning tool.

122.Based on the information provided below, which project would you recommend pursuing?

Project I, with BCR (Benefit Cost ratio) of 1:1.6;

Project II, with NPV of US $ 500,000;
Project III, with IRR (Internal rate of return) of 15%
Project IV, with opportunity cost of US $ 500,000.

A. Project I
B. Project III
C. Either project II or IV
D. Can not say from the data provided

Answer: B

Explanation: Project III has an IRR of 15%, which means the revenues from the project equal the
cost expended at an interest rate of 15%.
This is a definitive and a favorable parameter, and hence can be recommended for selection.

Project I have an unfavorable BCR and hence cannot be recommended.

Information provided on projects II and IV is not definitive, and hence neither of projects II and IV
qualifies for a positive recommendation.

123.What the project manager to ensure that all work in the project is included should do?
A. Create a contingency plan
B. Create a risk management plan
C. Create a WBS
D. Create a scope statement

Answer: C

Explanation: A WBS is a deliverable oriented grouping of project components that organizes and
defines the total scope of the project.

124.What kind of a relationship is implied when completion of a successor is dependent on initiation of

its predecessor?
A. finish-to-start (FS)
B. finish-to-finish (FF)
C. start-to-start (SS)
D. start-to-finish (SF)

Answer: D

Explanation: A start-to-finish (SF) relationship between two activities implies that the completion of
successor is dependent on the initiation of its predecessor.
 A finish-to-start (FS) relationship between two activities implies that the initiation of successor is
dependent on the completion of predecessor.

A finish-to-finish (FF) relationship between two activities implies that the completion of successor is
dependent on the completion of predecessor.

A start-to-start (SS) relationship implies that the initiation of successor is dependent on the initiation
of predecessor..

125.What should a project manager do or follow to ensure clear boundaries for project completion?
A. Scope verification
B. Complete a scope statement
C. Scope definition
D. Risk management plan

Answer: B

Explanation: The project team must complete a scope statement for developing a common
understanding of the project scope among stakeholders. This lists project deliverables - summary
level sub-products, whose full and satisfactory delivery marks the completion of the project.

Scope verification is the process of securing a formal acceptance of the project scope by
stakeholders.

Scope definition is the process of subdividing the major project deliverables into smaller, more
manageable components.

A risk management plan involves setting up processes for identifying and dealing with project risks.

126.An organization is certified to a stringent environmental standard and uses that as the key
differentiator with its competitors. Alternative identification during scope planning for a particular
project has thrown up an expeditious approach to achieve a project need, but this involves a risk of
environmental contamination. The team evaluates that the likelihood of the risk is very low. What
should the project team do?
A. Drop the alternative approach
B. Work out a mitigation plan
C. Procure an insurance against the risk
D. Plan all precautions to avoid the risk

Answer: A

Explanation: The organization's reputation being at stake, the threshold for such a risk would be
very low.

Mitigation plan against an environmental contamination would mean reducing the impact, which
may not be a plausible response.

Procuring an insurance against the risk would only transfer the monetary impact of the risk, and not
the intangible impact like, the reputation of the organization.

Planning precautions against the occurrence would still leave an opportunity of occurrence.

This cannot be completely avoided.

The best option would be to drop the approach - that is, complete avoidance of the risk.
127.The following three tasks form the entire critical path of the project network. The three estimates of
each of these tasks are tabulated below. How long would the project take to complete expressed
with an accuracy of one standard deviation?
Most
Task Optimistic Pessimistic
likely

A 15 25 47

B 12 22 35

C 16 27 32
A. 75.5
B. 75.5 +/- 5.08
C. 75.5 +/- 8.5
D. 75.5 +/- 2.83

Answer: B

Explanation: The critical path is the longest duration path through a network and determines the
shortest time to complete the project. The PERT estimates of the tasks listed are 27, 22.5 & 26.
Therefore, the length of the critical path of the project is 27+22.5+26 = 75.5.

The standard deviations of the estimates of the three tasks are determined as (P-O)/6 = 2, 3.83 &
2.67 respectively. The standard deviation of the total path is determined as Sq. root (sum of
variances), where variance = square of standard deviation. Thus, standard deviation of critical path
= Sq. root (4+14.67+7.13) = 5.08.

128.After a study of the work processes on a project, a quality audit team reports to the project
manager that irrelevant quality standards were being used by the project, which might lead to
rework. What was the objective of the project manager in initiating this study?
A. Quality control
B. Quality planning
C. Checking adherence to processes
D. Quality assurance

Answer: D

Explanation: Determining validity of quality standards, followed by the project is a 'quality

assurance' activity.

Compliance of work results to required specifications is a 'quality control' activity.

Determining quality standards is a 'quality planning' activity.

'Checking adherence to processes' is a quality audit activity to ensure that standard operating
procedures or job instruction documents (SOPs or JIDs) are being followed for producing the
deliverables of the process.

129.Which of the following provides the foundation for team development?

A. Motivation
B. Organizational development
C. Conflict Management
D. Individual Development

Answer: D
 Explanation: Individual development (managerial and technical) is the foundation of a team.

130. Which of the following is NOT an input to project plan execution?

A. Work authorization system
B. Project plan
C. Corrective action
D. Preventive action

Answer: A

Explanation: A Project plan is the basis of project plan execution and is a primary input.

Work authorization system is a tool used for orchestrating execution of various project tasks.

Whereas, Corrective and Preventive actions are inputs to the project plan execution process from
various controlling processes.

131.
A. Weak Matrix organization
B. Balanced Matrix organization
C. Projectized organization
D. Tight Matrix organization

Answer: A

Explanation: In a functional organization, the project team members have dual reporting to two
bosses - the project manager and the functional manager.

In a weak matrix organization, the power rests with the functional manager.

In a balanced matrix organization, the power is shared between the functional manager and the
project manager. A projectized organization is grouped by projects and the project manager has
complete control on the project and its team.

A Tight matrix organization refers to co-locating the project team and has nothing to do with a
matrix organization.

Therefore, a project manager would find it difficult to drive team development in a weak matrix
organization.

132. The project manager of a large multi-location software project team has 24 members, out
of which 5 are assigned to testing. Due to recent recommendations by an organizational quality
audit team, the project manager is convinced to add a quality professional to lead the test team at
additional cost, to the project.

The project manager is aware of the importance of communication, for the success of the project
and takes this step of introducing additional communication channels, making it more complex, in
order to assure quality levels of the project.

How many additional communication channels are introduced as a result of this organizational
change in the project?

A. 25
B. 24
 C. 1
D. 5

Answer: A

Explanation: Number of communication channels with "n" members = n*(n-1)/2

Originally the project has 25 members (including the project manager), which makes the total
communication channels as 25*24/2 = 300.

With the addition of the quality professional as a member of the project team, the communication
channels increase to 26*25/2 = 325.

Therefore, the additional channels as a result of the change, that is, 325-300 = 25.

133.Once the project is complete, the complete set of project records should be put in which of the
following?
A. Project Archives
B. Database
C. Storage room
D. Project Report

Answer: A

Explanation: Project records should be prepared for archiving by the appropriate parties.

134.Which of the following is a common format for performance reporting?

A. Pareto Diagrams
B. Bar charts
C. Responsibility Assignment Matrices
D. Control Charts

Answer: B

Explanation: Common formats for Performance Reports are, bar charts (also called Gantt Charts),
S-curves, histograms and tables etc.

135.If the cost variance is positive and the schedule variance is also positive, this indicates the:
A. Project is under budget and behind schedule
B. Project is over budget and behind schedule
C. Project is under budget and ahead of schedule
D. Project is over budget and ahead of schedule

Answer: A

Explanation: Positive Schedule Variance means the project is ahead of schedule; Negative Cost
Variance means the project is over-budget.

136.During execution of a project, an identified risk event occurs that results in additional cost and time.
The project had provisions for contingency and management reserves. How should these be
accounted for?
A. Contingency reserves
B. Residual risks
C. Management reserves
D. Secondary risks
 Answer: A

Explanation: The question is about correct accounting for risk events that occur and updating the
reserves.

Reserves are meant for making provisions in cost and schedule, to accommodate for
consequences of risk events.

Risk events are classified as "unknown unknowns" or "known unknowns", where "unknown
unknowns" are risks that were are not identified and accounted for, while "known unknowns" are
risks that were identified and provisions were made for them.

Provisions for "unknown unknowns" are in management reserves while those for "known
unknowns" are accommodated in contingency reserves. Management reserves are at the
discretion of senior management while the contingency reserves are at the project manager's
discretion.

Residual and secondary risks are remaining unmitigated risks and resultant risks of mitigation,
respectively. These are not reserves.

In this case, the risk event is one of the identified risks and therefore, 'contingency reserve' is the
one where the cost and schedule impact would be accommodated in.

137.Which one of the following is the last step of project closing?

A. Client has accepted the product
B. Archives are complete
C. Client appreciates your product
D. Lessons learnt are documented

Answer: B

Explanation: Archiving is the last step in the project closing.

138.Who should be involved in the creation of lessons learned, at closure of a project?

A. Stakeholders
B. Project team
C. Management of the performing organization
D. Project office

Answer: A

Explanation: 'Stakeholders' include everyone who are actively involved in the project or whose
interests may be affected as a result of the project execution or completion.

The 'project team' creates the lessons learned on the project.

The role of the 'project office' depends on the function defined for it within the performing
organization and it could be either facilitating best practices for all projects or could constitute the
project team.

As lessons learned should capture all variations and what could have been done better for future
deployment, 'stakeholders' should be involved in creation of lessons learned.

139. An organization has recently started outsourcing work to a low cost, high value,
engineering center located in a different country.
 Which of the following should the project manager provide for the team as a proactive measure?

A. A training course on the laws of the country

B. A course on linguistic differences
C. An exposure to the cultural differences
D. A communication management plan

Answer: C

Explanation: Understanding cultural differences is the first step towards an effective communication
amongst the project team involving outsourced work from a different country. So, what is needed in
this case is 'an exposure to the cultural differences', which is being mentioned as choice C.

Choice A, that is, 'a training course on the laws of the country' is a subject of legal experts and not
of the project team.

Choice B, that is, ' a course on linguistic differences' would not serve the purpose of understanding
and appreciating cultural differences, for better teaming.

Choice D, that is, 'a communication management plan' is a document that provides data gathering
and dissemination amongst stakeholders of the project. It is necessary for the project but does not
help in bridging communication gaps across different cultures

140. While reviewing the progress, the project manager assesses that an activity has been
missed out from the implementation plan. A milestone, scheduled to be achieved within another
week, would be missed with the current implementation plan.

Which of the following is the next best action for the project manager in this situation?

A. Report the error and the expected delay

B. Omit the status update on the milestone
C. Report the error and the planned recovery actions
D. Assess alternatives to meet the milestone

Answer: D

Explanation: Choice D, that is, 'assess alternatives to meet the milestone' indicates confronting the
issue with an attempt to resolve the issue. Hence this would be the best approach.

Choices A and C, that is, 'report the error and the expected delay' or 'report the error and the
planned recovery actions' do not attempt to solve the problem.

An attempt to solve the problem is the next best thing to do in this situation, before reporting the
issue correctly.

Choice B, that is, 'omit the status update on the milestone' is unethical.

141.
A. Planning, Initiating, Executing, Controlling, Closing
B. Initiating, Planning, Controlling, Executing, Closing
C. Planning, Initiating, Executing, Controlling, Closing
D. Initiating, Planning, Executing, Controlling, Closing

Answer: D
142. In which phase of a project would you estimate activity duration and resources?
A. Initiating
B. Executing
C. Planning
D. Controlling

Answer: C

143.Which of the following according to the PMBOK is described as, “a category or rank given to
entities having the same functional use but different technical characteristics?”
A. Grade
B. Quality
C. Flow design
D. Benchmark

Answer: A

144.Which of the following is another name for an Ishikawa diagram?

A. Cause and Effect Diagram
B. Bell Curve
C. Pareto Diagram
D. Trend Analysis

Answer: A

145.Refinements are considered updates for the ____.

A. GERT
B. ADM
C. WBS
D. CQM

Answer: C

146.The acronym CPPC stands for?

A. Cost Plus Percentage of Control
B. Cost Plus Percentage of Contract
C. Cost Plus Percentage of Cost
D. Cost Plus Plus Cost

Answer: A

147.Which of the following is not considered part of Maslow’s Hierarchy of Needs?

A. Social needs
B. Safety
C. Motivation
D. Self-actualization

Answer: C

148.Parento diagrams work on the ___ rule.

A. 50/50
B. 60/40
C. 80/20
D. 90/10

Answer: C
149.Which of the following is a key aspect of quality control?
A. Limited in scope
B. Minimal planning resources
C. Generic cost controls
D. Project wide focus

Answer: D

150. The creator of the project charter is identified as the ______.

A. Project manager
B. Outside senior manager
C. Internal control expert
D. Quality control expert

Answer: B

151.
A. Functional Manager, because you have good understanding functional knowledge of the
pharmaceutical industry
B. Project Manager, because you are creating a unique product within specific time
schedules
C. Operations Manager, because you have to do several repetitive tasks
D. Program Manager, because you have to manage several sub-projects to effectively do
your job

Answer: B

Explanation: Projects involve doing something that has not been done before and which is,
therefore, unique. A product or service may be unique even if the category to which it belongs is
large....

A project to bring a new drug to market may require thousands of doses of he drug to support
clinical trials

152.Which of the following is not the feature of a project?

A. Constrained by limited resources
B. Planned, executed and controlled
C. Creates unique product or service
D. May be ongoing and repetitive

Answer: D

Explanation: Operations and projects differ primarily in that operations are ongoing and repetitive
while projects are temporary and unique. A project can thus be defined in terms of its distinctive
characteristics - a project is a temporary endeavor undertaken to create a unique product or service

153. You are managing the release of a new drug in the market. Your role is that of a:
A. Functional Manager, because you have good understanding functional knowledge of the
pharmaceutical industry
B. Project Manager, because you are creating a unique product within specific time
schedules
C. Operations Manager, because you have to do several repetitive tasks
D. Program Manager, because you have to manage several sub-projects to effectively do
your job
 Answer: B

Explanation: Projects involve doing something that has not been done before and which is,
therefore, unique. A product or service may be unique even if the category to which it belongs is
large.

A project to bring a new drug to market may require thousands of doses of he drug to support
clinical trials.

154.Which of the following statement related to Standards and Regulations is not correct?
A. Standard is a document approved by a recognized body - there can be multiple standards
for one product.
B. Regulations are mandatory but Standards are not mandatory.
C. Standards after widespread adoption may become de facto regulations.
D. The influence of standards and regulations for a project is always known

Answer: D

Explanation: For many projects, standards and regulations (by whatever definition) are well known
and project plans can reflect their effects. In other cases, the influence is unknown or uncertain and
must be considered under Project Risk Management

155.Your IT company is responsible for making software virus programs. You are responsible for
managing both the individual product releases and the co-ordination of multiple releases over time.
Your role is that of a:
A. Program Manager
B. Project Manager
C. Functional Manager
D. Operations Manager

Answer: A

Explanation: A program is a group of projects managed in a co-ordinated way to obtain benefits

which are not available from managing them individually. Many programs also involve elements of
ongoing operations.

156. A Project Manager must have good understanding of the mechanics of power and politics
to be effective. As defined by Pfeffer, power includes all the following except:
A. The Potential to influence behavior
B. Potential to change the course of events and overcome resistance
C. Ability to get people to do things that they would not otherwise do
D. Ability to handle power struggles and organizational games

Answer: D

Explanation: Pfeffer defines power as "the potential ability to influence behavior, to change the
course of events, to overcome resistance, and to get people to do things that they would not
otherwise do."…The negative sense, of course derives from the fact that attempts to reconcile
these interests result in power struggles and organizational games that can sometimes take on a
thoroughly unproductive life of their own.

157.Which of the following statement related to Standards and Regulations is not correct?
A. Standard is a document approved by a recognized body - there can be multiple standards
for one product.
B. Regulations are mandatory but Standards are not mandatory.
C. Standards after widespread adoption may become de facto regulations.
D. The influence of standards and regulations for a project is always known
 Answer: D

Explanation: For many projects, standards and regulations (by whatever definition) are well known
and project plans can reflect their effects. In other cases, the influence is unknown or uncertain and
must be considered under Project Risk Management.

158. A Project Manager must have good understanding of the mechanics of power and politics
to be effective. As defined by Pfeffer, power includes all the following except:
A. The Potential to influence behavior
B. Potential to change the course of events and overcome resistance
C. Ability to get people to do things that they would not otherwise do
D. Ability to handle power struggles and organizational games

Answer: D

Explanation: Pfeffer defines power as "the potential ability to influence behavior, to change the
course of events, to overcome resistance, and to get people to do things that they would not
otherwise do."…The negative sense, of course derives from the fact that attempts to reconcile
these interests result in power struggles and organizational games that can sometimes take on a
thoroughly unproductive life of their own.

159.Phase end review of projects is also referred to as:

A. Phase Exits
B. Kill Points
C. Stage Gates
D. All the above

Answer: D

Explanation: The conclusion of a project phase is generally marked by a review of both key
deliverables and project performance to date, to a) determine if the project should continue into its
next phase and b) detect and correct errors cost effectively. These phase-end reviews are after
called phase exits, stage gates or kill points

160.You are working in the Project Office of your organization. What is your job responsibility?
A. Managing the different activities of a project
B. Always being responsible for the results of the project
C. Providing support functions to Project Managers in the form of training, software,
templates etc.
D. Providing Subject Matter Expertise in the Functional areas of the project

answer: C

Explanation: Project Office: There is a range of uses for what constitutes a project office. A project
office may operate on a continuum from providing support functions to project managers in the form
of training, templates, etc. to actually being responsible for the results of the project

Free PMP Exam Sample Questions and Answers

Here are nine questions and answers from the PMP Practice Exam (featured in the July 2007
newsletter)
Questions

1. Which is the BEST definition of quality?

A. A product made of very expensive materials.
B. A product made with a lot of care by the team who built it.
C. A product that satisfies the requirements of the people who pay for it.
D. A product that passes all of its tests.
2. A project manager is reporting the final status of the closed contract to the stakeholders. Which form of
communication is appropriate?
A. Informal written
B. Informal verbal
C. Formal written
D. Formal verbal
3. What is a risk owner?
A. The person who monitors the watchlist that contains the risk.
B. The person who meets with stakeholders to explain the risk.
C. The person who makes a risk happen.
D. The person who is responsible for the response plan for the risk.
4. You are managing a design project. You find that bringing all of your team members into a single room to
work increases their communication, and helps build a sense of community. This is referred to as a:
A. War room
B. Virtual team
C. Socially active team
D. Common area
5. Complete the following sentence: "The later a defect is found, __________ ."
A. the easier it is to find
B. the more expensive it is to repair
C. the less important it is to the product
D. the faster it is to repair
6. You have just been authorized to manage a new project for your company. Which of the following BEST
describes your first action?
A. Create the work breakdown structure
B. Develop the project management plan
C. Develop the project charter
D. Create the preliminary scope statement
7. Which of the following is NOT one of the triple constraints?
A. Scope
B. Time
C. Quality
D. Cost
8. Information about the project must be distributed to all stakeholders. Which of the following process
outputs is used to report the status and cost of project activities?
A. Work performance information
B. Issue logs
C. Status reports
D. Project records
9. Which of the following is a defect?
A. A mistake made by a team member on the job
B. A change that the team needs to make in how they do the work
C. A project management plan that does not meet its requirements
D. A change request that’s been rejected by the change control board

Answers

1. C

Quality management is all about making sure that the product you are building conforms to your
customer’s requirements. If you have done a good job of gathering and understanding those
requirements, all of the measurements you take on your project should help you see if what you are
building will make your clients satisfied in the end.
2. C

All project reports must be communicated as formal written documents. Not only that, but anything
that has to do with a contract DEFINITELY needs to be formal written.

3. D

Every risk should have a risk owner listed in the register. That person is responsible for keeping the
response plan up to date and make sure the right actions are taken if the risk does occur.

4. A

Co-location means that you have all of your team located in the same room. When you do this, you
can increase communication and help them build a sense of community. Sometimes the room the
co-located team meets in is called a war room.

5. B

The reason we work to do quality planning up front is that it is most expensive to deal with
problems if you find them late in the project. The best case is when you never inject the defects in
the first place, then it doesn’t cost anything to deal with them. Prevention is always better than
inspection.

6. D

Take a look at the answers to this question. What do you see? A list of processes - "Create WBS",
"Develop Project Management Plan", "Develop Project Charter," and "Develop Preliminary Scope
Statement." So your job is to figure out which of these processes comes next. So what clues do
you have to tell you where you are in the project lifecycle? Well, you’ve just been authorized to
manage a new project. Since the project charter is what authorizes a project manager to work on a
project, it means that the Develop Project Charter process has just been performed. So which
process comes next? The first thing you do after the project charter is signed is perform the
Develop Preliminary Scope Statement process.

7. C

Every project, regardless of what is being produced or who is doing the work, is affected by the
triple constraint of time, scope, and cost. Any time you make a change to one or more of these
constraints, it can also affect the other two - and the change can also affect quality, which is NOT
one of the constraints. That’s why you need to pay attention to all three constraints if you want your
project to do well.

8. A

You create one of the most important outputs of your entire project when the team is doing the
project work. Work Performance Information tells you the status of each deliverable in the project,
what the team’s accomplished, and all of the information you need to know in order to figure out
how your project’s going. But you’re not the only one who needs this - your team members and
stakeholders need to know what’s going on, so they can adjust their work and correct problems
early on.

9. C

It’s easy to get change, defects and corrective actions mixed up - they’re all words that sound
suspiciously similar! Just remember: a defect is any deliverable that does not meet its
requirements. A defect is NOT always caused by a mistake - defects can come from lots of
 sources, and team members’ errors only cause some defects. For example, plenty of defects are
caused by equipment problems.

1. Most risk acceptance policies rely on a contingency allowance for the project. A contingency
allowance is an amount of money the project will likely need in the contingency reserve based on
the impact, probability, and expected monetary value of a risk event. Project KIL has risks A and B.
A has 25% probability of occurring and a negative impact of -$50 while B has 45% probability of
occurring and a negative impact of -$90. What is the expected monetary value (Ex$V) for risk A?

A. -$40.50
B. -$1250
C. -$12.50
D. $12.50

Answer: C
Explanation: The expected monetary value (Ex$V) for risk A is calculated by 0.25 x -$50 = -$12.50

2. Procurement planning is the process of identifying which part of the project should be procured
from resources outside of the organization. Which of the following refers to market condition
evaluation?

A. defines the project work and only the required work to complete the project
B. defines the details and requirements for acceptance of the project
C. needed to determine what products and services are available and from whom and on what
terms and conditions they are available
D. used to rate and score proposals from the sellers

Answer: C
Explanation: An evaluation of the marketplace is needed to determine what products and services
are available and from whom and on what terms and conditions they are available.

3. Christian Zininski is the project manager of LOP Project. During the procurement process, his
project assistant identified that the project has to depend on three procurement sources: HUH
Limited, JI Limited, and GIG Limited, which he described as an oligopoly. Which of the following
best describes the project’s market for materials?

A. Only GIG Limited and HUH Limited want to contract with Christian’s performing organization,
POLL Agency.
B. Only GIG Limited is the qualified seller that exists in the marketplace.
C. The performing organization, POLL Agency, prefers to contract with JI Limited only.
D. There are very few sellers and the actions of GIG Limited will have a direct effect on the other
seller's prices and the overall market condition.

Answer: D
Explanation: Oligopoly: There are very few sellers and the actions of one seller will have a direct
effect on the other seller's prices and the overall market condition.

4. Rose Hale is the project manager of Project UR. Rose signed a Cost-Reimbursable contract with
Shirts, Ltd. regarding the procurement of pre-screened T-shirts to be used for Project UR. Which of
the following describes a characteristic or possibility that may occur in this type of contract?
A. This contract may provide incentives for meeting or exceeding contract requirements such as
meeting deadlines.
B. This agreement does not procure or specify a firm quantity of supplies (other than a minimum or
maximum quantity) and that provides for the issuance of orders for the delivery of supplies during
the period of the contract
C. The agreement defines a total price for the product the seller is to provide.
D. The agreement requires Rose’s firm to assume the risk of cost overruns.

Answer: D
Explanation: Cost-reimbursable contracts require the buyer to assume the risk of cost overruns.

5. While working on a highly sensitive computer project at Company W, Tori comes across a
potential security leak in the system. If she is right, millions of records in the database have already
been compromised, which will result in a press release causing a lot of negative press. If she is
wrong, she risks losing the respect of her project team and stakeholders. What should Tori do
according to the Code?
A. Tori is not obligated to do anything unless she is sure there is a problem.
B. Tori must disclosure her concerns clearly and succinctly to the project’s stakeholders as soon as
possible.
C. Tori can quietly investigate the situation further.
D. Tori can hint to her manager that there may be a problem.
ANS: B
Explanation: According to the Code, Project Managers must report on projects accurately as
possible, as well as report any possible legal violations immediately.

6. Cost-Reimbursable Contracts pay the seller for the product. In the payment to the seller there is
a profit margin-the difference between the actual costs of the product and the sales amount. The
actual costs of the product fall into two categories. Which of the following refers to indirect costs?

A. costs that have fixed and variable elements

B. costs attributed to the cost of doing business
C. costs of production that vary directly with output
D. costs of production that do not vary with output

Answer: B
Explanation: Indirect costs: costs attributed to the cost of doing business. Examples include utilities,
office space, and other overhead costs.

7. As the project manager of the new Project XZA, you have to decide whether to create a new web
application in-house or send the project out to a developer. The outsource developer you would
use quotes the project cost at $175,000. Based on previous work with this company, you are 85%
certain they will finish the work on time. Your in-house development team quotes the cost of the
work as $165,000. Again, based on previous experience with your in-house developers, you feel
75%t certain they can complete the work on time. Which of the following quantitative risk analysis
approaches should you use here?

A. Continuous probability distribution

B. Sensitivity analysis
C. Use the Decision Tree
D. Project Simulation
 Answer: C
Explanation: Decision Tree: a method to determine which of two decisions is the best to make.

8. The project manager will rely on several pieces of information to prepare for team development. Which of
the following corresponds to the image below?

A. Project Plan
B. Responsibility Assignment Matrix (RAM)
C. Resource histogram
D. Staffing Management histogram

Answer: C.

Explanation: Management may also want to see a resource histogram so they may plan employees' time
and activities accordingly.

9. Nina Gouldman is the project manager of Ken Publishing. She’s currently planning the
communication requirements of a new project, Project Mag. When should she accurately assess
stakeholder information needs?

A. At the middle phase of the project. Stakeholder demands during the first half of the project will
accurately assess what kind of information stakeholders really need and how often they need it.
B. Right after the project has started. This will help Nina accurately estimate the kind of information
that stakeholders actually need.
C. Early in the project, after evaluating the project constraints and assumptions.
D. Early in the project, before exploring communication modalities.

Answer: D.
Explanation: Accurately assessing stakeholder information needs must be completed early in the
project, before exploring communication modalities.

10. The BAYAG Project Management Company designated Ken Toothe to be the project manager
of the Pookey Project. Ken’s project team has identified BAYAG’s contractual obligations to the
project’s sponsors as project constraints. What should Ken do in order to determine if extra
resources will be needed to handle the communications in this project?

A. Call the sponsor’s company and inquire on the communication modalities they prefer to be used
when communicating with them.
B. Evaluate BAYAG’s available communication channels
C. Send a notice to BAYAG’s communications office and remind them of their responsibilities
regarding the communication requirements of the sponsor contract. Offer an extra hand if they
need more communication resources for this obligation.
D. Evaluate the requirements of the contract against the demands of the project staff.

Answer: D
Explanation: The requirements of the contract should be evaluated against the demands of the
project staff to determine if extra resources will be needed to handle the communications.

11. Durdo Schmitt is the project manager for 5 new projects. He is currently in the planning stage of
risk management. After identifying all of the stakeholders in these 5 projects, he decided to rank the
major stakeholders of the 5 new projects according to their expected risk tolerance functions.
Which of the following stakeholders will have a low risk tolerance?
 A. Orphaned children that will be entertained by Project FUN for Orphans (Creation of a new
playground at the Gitamos Orphanage)
B. Single mothers who will rely on Project Sit (Free babysitting services or single mothers who
work)
C. Members of a local little baseball league who will rely on Project Grass (Free baseball field set
up services)
D. Death row convict and his/her family members who will depend on Project Death Row (Providing
transportation for families and kin of death row convicts during the convict’s execution day)

Answer: D
Explanation: Choice D is a matter of life and death while the other choices are not.

12. Jordyn has just told her Project Manager that a sudden problem has come up between two
critical project team members, although they are about to make a joint presentation to the sponsor.
They are arguing over a situation that has little to do with the project, but each is convinced that he
is absolutely right and the other is absolutely wrong. Jordyn asks the Project Manager to intervene,
especially in light of the upcoming project presentation, but she throws her hands in the air and
says: “I simply cannot deal with this right now!” What has she done?

A. She has made a compromise.

B. She has smoothed over the issue.
C. She has withdrawn.
D. She has solved the problem.

Answer: C
Explanation: Withdrawing involves walking away from the problem.

http://www.tutorialspoint.com/pmp-exams/pmp_mock_exams_set4.htm

(1) A Project Manager is at the project kick-off meeting. He confidently states the vision and mission for the
project. This PM is exhibiting the following leadership style:

1. Hierarchal
2. Authoritarian
3. Charismatic
4. Associative

Answer:C

(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:

1. Statistical sampling
2. Metrics
3. Benchmarking
4. Operational definitions

Answer: C

(3) The two closing procedures are called:

1. Contract close out and scope verification

 2. Contract close out and Close Project
3. Project closure and product verification
4. Project closure and lessons learned

Answer: B

(4) During the schedule development 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:

1. Critical Path Method, GERT, Resource Requirements

2. Resource Leveling Heuristics, Mathematical Analysis, Calendars
3. Duration compression, Resource Leveling Heuristics, PERT
4. GERT, PERT, Leads and Lags

Answer:C

(5) Which of the following models of conflict resolution allows a cooling off period, but seldom resolves the
issue in the long term?

1. Problem solving
2. Withdrawal
3. Forcing
4. Smoothing

Answer:B

(6) The receiver filters messages based on all but the following:

1. Culture
2. Semantics
3. Language
4. Distance
5. Knowledge

Answer: D

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

1. 40-60%
2. 50-70%
3. 60-80%
4. 75-90%

Answer: D

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

1. Team building
2. Analysis of alternatives
3. Convergent thinking
4. Uninhibited verbalization

Answer: C

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

 1. Progress report
2. Project directive
3. Project manager
4. Customer

Answer: C

(10) System integration consists of:

1. Assuring that the pieces of a project come together at the right time
2. Planning for contingencies that may occur throughout the life cycle of the project
3. The pieces of the project function as an integration unit
4. a and c

Answer: D

(11) Performance reviews are held to:

1. Correct the project manager's mistakes.

2. Provide for answers for upper levels of management
3. To assess project status or progress
4. To apprise the project costs and cost trends of the project

Answer: C

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

1. Functional
2. Cross-functional
3. Matrix
4. Balanced

Answer:C

(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?

1. 1.4
2. 1.1.1.1
3. 1.2.3.4
4. a and c
5. b and c

Answer:E

(14) Which of the following Project Scope Management processes involves subdividing the major project
deliverables into smaller, more manageable components?

1. Scope Planning
2. Initiation
3. Scope Change Control
4. Scope Definition
5. Create WBS

Answer:E
(15) The review of key deliverables and project performance at the conclusion of a project phase is called:

1. phase exit
2. kill point
3. stage gate
4. a and c
5. all of the above

Answer:E

(16) Project scope is:

1. The work that must be done in order to deliver a product with the specified features and functions.
2. The features and functions that are to be included in a product or service.
3. A narrative description of work to be performed under contract.
4. a and b
5. all of the above

Answer:A

(17)The unique identifiers assigned to each item of a WBS are often known collectively as:

1. The work package codes

2. The project identifiers
3. The code of accounts
4. The element accounts

Answer:C

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

1. Confirming the message is understood

2. Ensuring the receiver agrees with the message
3. Scheduling communication exchange
4. Presenting the message in the most agreeable manner

Answer: A

(19) What are the best uses of PERT:

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

2. Assist in the controlling of changes to the project.
3. Is used in the process of preparing a WBS for the project.
4. To measure future consequences of activities.
5. a and d.

Answer: E

(20) Change requests can occur due to:

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

2. An error or omission in defining the scope of the product.
3. An error or omission in defining the scope of the project.
4. a and c
5. all of the above
Answer:E

(21) A project plan is:

1. A formal, approved document used to guide both project execution and project control.
2. A document issued by senior management that provides the project manager with the authority to
apply organizational resources to project activities.
3. A narrative description of products or services to be supplied.
4. A document describing the organizational breakdown structure of the company.

Answer:A

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

1. Gantt chart
2. Milestone chart
3. Fishbone diagram
4. Network diagram

Answer:C

(23) The most important criteria in selecting project selection method is:

1. Ease of use
2. Cost of using it
3. Available expertise
4. Capability
5. Realism

Answer:E

(24) What is Team Development?

1. Setting up a team of people with the skills set that are required
2. Sending you project team to a PMI seminar
3. Motivating your project team members
4. Enhancing the ability of stakeholders to contribute as individuals
5. Enhancing the ability of the team to function as a team

Answer:D&E

(25) 3 major processes in Project HRM:

1. Staff recruitment, project staff planning and team building

2. HR planning, Acquire Project Team and Develop Project Team
3. Rewarding, salary reviews and penalties
4. Staff acquisition, staff training, staff deployment

Answer:B

(26) A project is defined as:

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

2. An endeavor, which is planned, executed, and controlled; performed by people; and constrained by
limited resources.
3. A temporary endeavor undertaken to create a unique product or service.
 4. An objective based effort of temporary nature.

Answer:C

(27) General management encompasses:

1. Planning, organizing, staffing, executing, and controlling the operations of an ongoing enterprise.
2. Business policy, financial management, business economics, contract administration, and legal
services necessary for operating an enterprise.
3. Business strategy, planning and controlling, organizational behavior, procurement, and personnel
administration required for managing the ongoing aspect of a business venture.
4. Organizational development, staffing, marketing and sales, procurement, and contract
administration as part of an ongoing organization.

Answer:A

(28) Project management processes can be organized into:

1. Initiating, planning, contracting, executing, and administration

2. Designing, developing, testing, and implementing
3. Initiating, designing, planning, executing, controlling, and implementation
4. Initiating, planning, executing, controlling, and closing

Answer:D

(29) ___________ must be measured regularly to identify variance from the plan.

1. Stakeholder requirements
2. Project performance
3. Schedule progress
4. Cost and schedule

Answer:B

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

1. Setup project team and announce the PM assignment

2. To draft project charter
3. Build up team spirit
4. Define project scope and develop WBS

Answer:A

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

1. Changes in government regulations

2. Natural hazards
3. Unexpected environmental side effects
4. Inflation

Answer:D

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

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

2. Self esteem; self actualization; social; security and physiological
 3. Self actualization; self esteem; social; security and physiological
4. Self fulfillment; self esteem; social; security and physiological

Answer:C

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

1. A fixed price contract contains the most risk for the buyer.
2. Cost reimbursable contracts offer sellers the highest profit potential.
3. Lump sum contracts offer sellers the greatest profit potential.
4. Unit price contracts are illegal in many jurisdictions.

Answer:C

(34) Herzberg identified factors, which, if present, will lead to increased motivation. A typical factor would be:

1. Good supervision
2. Job security
3. Regular promotions
4. Good salary
5. A dental plan

Answer:C

(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 project and you need the goodwill for a multimillion dollar on the pipeline. You
will

1. Refuse to do the work

2. Agree to do the work at no charge
3. Do the work and bill him later
4. Assess the cost and schedule impact and tell them you will decide later

Answer:D

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

1. Hold a bidders conference

2. Establish the appropriate contract type
3. Implement the contract change control system
4. Develop a statement of work

Answer:C

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

1. Replacement of the project manager or key project team members; changes in priorities by senior
management; and contractual difficulties.
2. Changes in the relative importance of time, resources, or cost ; new knowledge about the
deliverable; and technological uncertainty
3. Errors in the initial assessment of how to achieve the goal of the project; new information about the
project deliverable; and a new mandate
4. Unavailability of resources promised by the functional managers; cost overruns; and changes in
customer requirements
Answer:C

(38) The purpose of the review of deliverables and project performance at the conclusion of a project phase
is to:

1. Determine how many resources are required to complete the project according to the project
baseline
2. Adjust the schedule and cost baselines based on past performance
3. Obtain customer acceptance of project deliverables
4. Determine whether the project should continue to the next phase

Answer:D

(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 meet you and requested that
he will not accept the product unless you make several changes. What you should do is:

1. Get the list of the changes and estimate all of them. If the total cost is still within the baseline, you
just do it
2. Estimate the costs and send this to your customer requesting contract modification
3. Ask the customer to file a Change request
4. Sit with the customer to review the product specs and tell him/her that you have completed the
project.

Answer:C

(40) The delphi Method is best suited for:

1. Decision-making
2. Cost Control
3. Overhead rate estimating
4. Team discussions

Answer:A

(41) Which of the following methods is least likely to be used for explaining project planning guidelines to the
team?

1. Project Office Memo

2. Project office directive
3. Project team meeting
4. Formal project report

Answer:D

(42) Projects are initiated in response of:

1. Stakeholder's pressure
2. Business needs
3. Technological obsolescence
4. All of the above

Answer:D

(43) The party that needs the change resulting from the project, and who will be its custodian on completion
is the:
 1. Owner
2. Sponsor
3. Customer
4. Client

Answer:A

(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:

1. Staffing Management Plan

2. Responsibility Assignment Matrix (RAM ).
3. Organizational Breakdown Structure (OBS).
4. Resource Assignment Chart

Answer:A

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

1. Functional
2. Projectized
3. Matrix
4. Project expediter
5. Project coordinator

Answer:C

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

1. Scope Definition Matrix

2. Responsibility Assignment Matrix
3. Roles Assignment Matrix
4. Project Scope and Roles Matrix

Answer:B

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

1. Project records
2. Communications management plan
3. Performance reports
4. Formal acceptance
5. b and c

Answer:B

(48) The receiver filters messages based on all but the following:

1. Culture
2. Semantics
3. Language
4. Distance
5. Knowledge

Answer:D
(49) The sending or conveying of information from one place to another is the process of:

1. Networking
2. Transmitting
3. Encrypting
4. Promoting

Answer:B

(50) The three major types of communication are:

1. Written, verbal, and non-verbal.

2. Verbal, formal documentation, informal documentation.
3. Verbal, written, and graphic.
4. Verbal, written, and electronic.

Answer:A

(51) All of the following are communication tools EXCEPT:

1. Memos
2. Verbal circulation of a rumor
3. Videos
4. Body language
5. Inputting data into a spreadsheet

Answer:E

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

1. Manager in a weak matrix

2. Manager in a projectized environment
3. Coordinator
4. Expeditor

Answer:D

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

1. Sending, Receiving, Decoding, and Comprehending

2. Sender, Message, Medium, Receiver
3. Communicator, Message, Receiver, Decoder
4. Communicating, Transmitting, Receiving, Comprehending

Answer:B

(54) In negotiating with functional department managers, project managers often find themselves using what
two-party conflict management approach?

1. Win-Lose
2. Win-Win
3. Lose-Lose
4. None of the above

Answer:C
(55) A leadership style in which the project manager shares problems with team members and formulates
solutions as a group is called:

1. Autocratic
2. Consultation in a group
3. Consensus
4. One-to-one consultation

Answer:C

(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:

1. Functional
2. Weak matrix
3. Project coordinator
4. Project expediter

Answer:D

(57) Create WBS process belongs to:

1. Initiation Process Group

2. Planning Process Group
3. Executing Process Group
4. Monitoring & Controlling Process Group

Answer: B

(58) In which of the following organizations is the project manager role likely to be part-time?

1. Weak matrix
2. Functional
3. Balanced matrix
4. a and b
5. All of the above

Answer:C

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

1. Risk Quantification
2. Risk Identification
3. Risk Analysis
4. Risk Response Development
5. Risk Response Control

Answer:E

(60) Using the PMBOK definition of contingency reserve, which of the following statements about
contingency reserves is false?

1. A contingency reserve is a separately planned quantity used to allow for future situations which
may be planned for only in part.
2. Contingency reserves may be set aside for known unknowns.
3. Contingency reserves may be set aside for unknown unknowns.
 4. Contingency reserves are normally included in the project's cost and schedule baselines.

Answer:C

(61) Which of the following is true about pure risk?

1. The risk can be deflected or transferred to another party through a contract or insurance policy.
2. Pure risks involve the chance of both a profit and a loss.
3. No opportunities are associated with pure risk, only losses.
4. a and c
5. a and b

Answer:D

(62) A contingency plan is:

1. A planned response that defines the steps to be taken if an identified risk event should occur.
2. A workaround
3. A reserve used to allow for future situations which may be planned for only in part.
4. a and c
5. a and b

Answer:A

(63) Deflection or transfer of a risk to another party is part of which of the following risk response categories?

1. Mitigation
2. Acceptance
3. Avoidance
4. Analysis

Answer:A

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

1. Unknown unknowns
2. Known unknowns
3. business risks
4. pure risks

Answer:A

(65) Which of the following is considered during the Procurement Planning Process?

1. Whether to procure
2. How to procure and how much to procure
3. What and when to procure
4. b and c
5. all of the above

Answer:E

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

1. Procurement planning should include consideration of potential subcontracts

 2. Procurement planning does not include consideration of potential subcontracts since this is the duty
of the contractor.
3. Subcontractors are first considered during the Solicitation Process
4. none of the above

Answer:A

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

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

2. Invitation for Bid and Request for Proposal are two examples of procurement documents.
3. Procurement documents should be structured to facilitate accurate and complete responses from
prospective sellers.
4. b and c
5. all of the above

Answer:E

(68) Which of the following is a method for quantifying qualitative data in order to minimize the effect of
personal prejudice on source selection?

1. Weighting system
2. Screening system
3. Selecting system
4. none of the above
5. all of the above

Answer:A

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

1. Salaries of corporate executives

2. Salaries of full-time project staff
3. Overhead costs
4. a and b
5. a and c

Answer:E

(70) Which of the following contract types places the greatest risk on the seller?

1. Cost-plus-fixed-fee contract
2. Cost plus-incentive-fee contract
3. Fixed-price-incentive contract
4. Firm-fixed-price contract

Answer:D

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

1. Cost-plus-percentage-cost contract
2. Cost-plus-fixed-fee contract
3. Fixed-price-plus-incentive
4. b and c
5. none of the above
Answer:D

(72) A cost-plus-percentage-cost (CPPC. 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?

1. $143,000
2. $142,000
3. $140,000
4. $132,000

Answer:A

(73) A fixed-price-plus-incentive-fee (FPI. 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 a share ratio of 80/20. The actual cost of the
project was $150,000. How much profit does the seller make?

1. $10,000
2. $15,000
3. $0
4. $5,000

Answer:A

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

1. The subcontractor possesses special technical and engineering skills that the contractor does not
have.
2. The work to be subcontracted represents almost all of the overall work effort.
3. The subcontractor can perform the work at a lower cost than the contractor.
4. all the above
5. a and c

Answer:E

(75) Which type of bilateral contract is used for high dollar, standard items?

1. Purchase order
2. Request for proposal (RFP.
3. Invitation for bid (IFB.
4. Request for quotation (RFQ.
5. all of them are appropriate

Answer:C

(76) In which stage of the negotiation meeting are points of concession identified?

1. Probing
2. Closure
3. Agreement
4. Scratch bargaining

Answer:D

(77) Which of the following is NOT a method of government procurement?

 1. Assistance
2. Sealed Bidding
3. Competitive proposals
4. Acquisition
5. Small purchases
6. No answer provided

Answer:D

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

1. If there are seven points on one side of mean, then an assignable cause must be found.
2. Seven consecutive points are ascending, descending, or the same.
3. At least seven inspectors should be in place for every thousand employees.
4. A process is not out of control even though seven measurements fall outside the lower and upper
control limits.

Answer:A

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

1. Overbudget and cannot recover

2. Underbudget
3. Overbudget and early in its evolution
4. No interference cam be made

Answer:D

(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:

1. Project life cycle

2. Product life cycle
3. Project life event
4. All of the above

Answer: A

(81) What does RDU stand for?

1. Really Dumb User

2. Ready for Download Use
3. Remaining Duration unassisted
4. Remaining Duration

Answer: D

(82) Who is responsible for risk identification, risk quantification, risk response development, risk Monitor
and Control?

1. Project Communications Management

2. Project human resource Management
3. Project Procurement Management
4. Project Risk Management

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

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

2. (Optimistic + (4 X Most Likely) + Pessimistic ) divided by 6
3. (Optimistic + (4 X Most Likely) x Pessimistic ) divided by 6
4. (Optimistic + (4 + Most Likely) + Pessimistic ) divided by 6

Answer: B

(84) Two Point Delphi Estimate, The Best and Worst Case effort calculation:

1. Calculate (Best + Worst) / 2

2. Calculate (Best +2 ) / Worst
3. Calculate (2 + Worst) / Best
4. none of the above

Answer: A

(85) What does TQM stand for?

1. Time Quality Managed

2. Target Quality Management
3. Total Quality Management
4. Time Quote Management

ANSWER: C

(86) Examples of Projects include:

1. Implementing a new business procedure or process

2. Constructing a building or facility
3. Designing a new transportation vehicle
4. All of the Above

ANSWER: D

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

1. True
2. False
3. Both True and False
4. Neither true nor false

ANSWER: A

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

1. Overall
2. Project Chart
3. Temporary
4. Duration

ANSWER: C

(89) The smallest unit of time used in scheduling the project is known as:
 1. Calendar Unit
2. Scope unit
3. Time Measurement
4. All of the Above

ANSWER: A

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

1. The Project Manager.

2. The customer.
3. The Sub-contractors/vendors.
4. The project team members.
5. All of the above.

Answer: E

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

1. Planning with their personnel.

2. Planning with top management.
3. Talking with personnel.
4. Studying project results.

Answer: C

(92) Cost Plus Percentage of Cost (CPPC) contracts provide:

1. A reimbursement of allowable cost of services performed plus an agreed upon percentage of the
estimated cost as profit.
2. A reimbursement of allowable costs plus a fixed fee which is paid proportionately as the contract
progresses.
3. The supplier with a fixed price for a delivered performance plus a predetermined fee for superior
performance.
4. None of the above.

Answer: A

(93) Project success depends on a no. of interrelated factors, including time, cost and scope control. The
success of any project depends primarily on:

1. Customer acceptance.
2. Customer satisfaction.
3. Customer compromise in defining its needs.
4. Exceeding customer requirements through gold plating.

Answer: B

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

1. Acceptance sampling.
2. 100% inspection.
3. Variable lot inspection.
4. A and C.

Answer: A
(95) Constructive Team Role includes :

1. Investigates, clarifier and closer.

2. Compromise, blocker and closer.
3. Initiate, encourage and gate keeper.
4. Investigates, recognize and summary.

Answer: C

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

1. Control.
2. Assurances.
3. Planning.
4. Verification.

Answer: A

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

1. Problem-solving through different approaches.

2. Learning and communication.
3. Partnerships, strong alliances and joint ventures.
4. Negotiations.

Answer: B

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

1. Conflict of interest.
2. Differentiation in organization
3. Resolved prior conflicts.
4. Both A and B.
5. All of the above.

Answer: D

(99) The contemporary view of conflict is that:

1. Conflict is bad.
2. Conflict is caused by trouble makers.
3. Conflict should be avoided.
4. Conflict is often beneficial.
5. A, B and C.

Answer: D

(100) In general a project charter covers:

1. Project justification, background, scope, objectives, available resources, organizational

responsibilities, a project schedule, estimates, procurement schedule, and any imitations that top
management wants to apply.
2. 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.
3. Project justification, background, scope, objectives, available resources, organizational apply.
 4. Project scope, objectives, available resources, responsibilities, a project schedule, estimates,
procurement schedules, and any limitations that top management wants to apply.

Answer: D

(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?

1. Resource leveling
2. Duration compression
3. Crashing
4. Fast tracking

Answer: C

(102) Which of the following is most true?

1. Lag is the maximum amount of time a task can be delayed without delaying the early start of its
successor.
2. Lag may be determined by making a forward pass.
3. Lag is waiting time.
4. Lag is the maximum amount of time a task can be delayed without delaying the project.

Answer: C

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

1. Managing changes immediately as they surface.

2. Formally documenting all changes.
3. Communicating authorized changes to senior management and key stakeholders.
4. Preventing unnecessary changes.

Answer: D

(104) The behavioral responsibilities of a project manager may also include dealing with:

1. Regulatory Personnel
2. The legal environment
3. Environmental Issues
4. All of the above

Answer: D

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

1. Organize and summarize the information so that all stakeholders were informed
2. Inform upper management of the project problems
3. Inform the client about the changes that have completed
4. Provide information to management and client

Answer: A

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

1. Personal characteristics of the project manager

 2. Personal traits of the subordinates
3. Behavioral styles of the project manager
4. Usefulness of authority and power and leadership

Answer: B

(107) Preliminary Cost estimates are developed during the______ phase of the project:

1. Conceptual
2. Planning
3. Implementation
4. Execution

Answer: A

(108) Historical records during close-out are useful to __________ and ____________ for future projects:

1. Predict trends, highlight problems.

2. Analyze successes, shortfalls
3. Analyze strengths, document results
4. Justify results, set standards

Answer: A

(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 one 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

1. Update the schedules and assume an active role since the client has not given you the specifics of
the potential problem
2. Make sure that the team has increased productivity so the client can see how efficient your team is
performing
3. Assemble the team and ask them to prepare an agenda for topics to discuss
4. Make sure that each team member has his assignment in preparation for any handouts and
needed plans

Answer: C

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

1. Contract phase
2. Post award phase
3. Award phase
4. Pre award phase
5. Requirement phase

Answer: C

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

1. Gantt Chart
2. WBS
3. Project Charter
4. Scope statement
Answer: C

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

1. 2 sigma
2. 3 sigma
3. 4 sigma
4. 5 sigma

Answer: B

(113) Reducing the impact of a risk event by reducing the possibility of its occurrence is:

1. Risk avoidance
2. Risk acceptance
3. Risk mitigation
4. Contingency planning

Answer: A

(114) In which of the following project management process groups are the most time and money typically
spent?

1. Initiating
2. Planning
3. Executing
4. Controlling

Answer: C

(115) ______ recognizes that a project or phase should begin and commits the organization to do so:

1. Initiation Process
2. Solicitation Process
3. Scoping Process
4. Planning process

Answer: A

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

1. Meet with the supplier and his forces and establish yourself as the authority in charge.
2. Bring your team in for introductions and establish a communications exchange
3. Bring out the communication management plan
4. Bring out the project plan.

Answer: A

(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?

1. The scope of work should be general to allow the seller to make its own decisions.
2. The scope of work should be general to allow clarification later.
 3. The scope of work should be detailed to allow clarifications later.
4. The scope of work should be as detailed as necessary for the type of project.

Answer: D

(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
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?

1. The second team member should send the other team member an e-mail describing what he
discovered.
2. 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.
3. The project manager should send out an e-mail to the team restating the project objectives and
deliverables.
4. 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

(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?

1. Continue with the project

2. Document the situation
3. Contact management for help
4. Call a meeting of the team

Answer: C

(120) You are managing a six months 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:

1. Risk monitoring and control.

2. Schedule control.
3. Scope planning.
4. Scope change control.

Answer: C

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

1. Perform project feedback on the team

2. Obtain sign off from the customer
3. Review project documentation for completeness
4. Update the project plans

Answer: B

(122) Financial controls that need to be considered for project plan development do not include:

1. Time reporting
2. Standard contract provisions
 3. Process audits
4. Accounting codes

Answer: C

(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?

1. Re-evaluate the effectiveness of the reward system the project manager has put in place
2. talk to each team member's boss
3. Re-plan the project
4. Tell the team he needs its support

Answer: A

(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?

1. Meet with management alone

2. Meet with the project manager alone
3. Meet with the project manager and management
4. Meet with the project manager and the team C leader

Answer: D

(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?

1. Communication management planning

2. Scope management planning
3. Team trust
4. Schedule planning

Answer: A

(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?

1. What is each team member's favorite color

2. Each team member's objectives for working on the project
3. A list of each team member's tasks
4. Each team member's role in the project plan

Answer: D

(127) An advisor to a new project manager tells the project manager to create lessons learned at the end of
a project. A lessons learned includes?

1. Any variances and the causes of the variances

2. Reports from the customer
3. Reports from management
4. A list of all the plans
Answer: A

(128) A project management professional can compare earned value performance data to all of the following
project management tools EXCEPT:

1. Critical path analysis

2. Technical performance metrics
3. Risk mitigation plans
4. Forecasted final costs and schedule estimates

Answer: D

(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?

1. Repeatedly ask for final acceptance

2. Ask the team for assistance
3. Document the situation
4. Do nothing because there is nothing that can be done

Answer: C

(130) Your new product development project has resulted in a highly successful new product. The property,
equipment, materials, and personnel of your project are now being integrated into the functional
organization. Your project is being terminated by:

1. Extinction
2. Addition
3. Integration
4. Starvation

Answer: C

(131) The Precedence Diagramming Method :

1. has finish-to-start task relationships and provides the flexibility of lead and lag time to the activities;
2. has the activity on the node;

Answer: A

(132) Gantt charts are great for:

1. Showing tasks relationships

2. Tracking actual vs planned
3. Good communications with customer, management and project teams
4. b and c

Answer: D

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

1. Project engineer
2. Purchasing agent
3. Quality manager
4. Team members
Answer: D

(134) Design of experiments?

1. identifies which variables have the most influence on a quality outcome

2. identifies which variables have the least influence on a quality outcome
3. determines what a quality outcome is
4. is a method for research and development

Answer: A

(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?

1. part of an ISO 9000 investigation

2. to check if the customer is following its quality process
3. to identify lessons learned that can improve performance on the project
4. to check the accuracy of the costs submitted by the team

Answer: C

(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:

1. Laissez-faire
2. Democratic
3. Autocratic
4. Directive

Answer: A

(137) The types of power that have substantial influence on both subordinates and upper management are:

1. Formal & expert

2. Reward & penalty
3. Expert & referent
4. Formal & referent

Answer: C

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

1. Negotiate with management to get the resource

2. Assess your alternatives
3. Begin the task early
4. Use reserves to increase resources assigned to those tasks.

Answer:B

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

1. Discuss with team

2. Use schedule reserves
 3. Use alternate vendor
4. Go to customer or management

Answer: A

(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?

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

2. Analyze the critical path activities for potential to fast track or crash the schedule
3. Document the lack of progress and associated issues to management
4. Identify tasks that have required more time than planned

Answer: D

(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?

1. Senior management
2. The functional manager
3. The project manager
4. The team member performing the work

Answer: C

(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:

1. General Management
2. Project Human Resource Management
3. Project Execution
4. A Projectized organization

Answer:A

(143) You have been promoted to Manager, Continuous Process Improvement. Your new position:

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

2. Is not a project because Continuous Process Improvement will continue indefinitely
3. Is a project because it is constrained by limited resources
4. Is a project because improvements must be planned, executed, and controlled

Answer:B

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

1. Project Quality Management

2. Project Procurement Management
3. Project Configuration Management
4. Project Risk Management

Answer: C

(145) The state of being totally answerable for the satisfactory completion of a specific assignment is called:
 1. Authority
2. Accountability
3. Responsibility
4. Fiduciary

Answer:B

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

1. Project management
2. Functional management
3. Facility management
4. Program management

Answer:D

(147) Work packages are used to :

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

2. Distinguish one package from all others assigned to a single functional group.
3. Limit work to be performed to relatively short periods of time.
4. All of the above.

Answer: D

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

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

2. Require highly trained specialists for effective use
3. Always require computer support to be practical
4. 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

Answer: D

(149) Earned value can be described as:

1. The value of the equipment that has been installed as of the current date
2. The sum of the labor costs that have been incurred on the project date
3. A method of measuring project performance
4. A method of measuring the amount of money that has been spent to date

Answer: C

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

1. issue change requests

2. represent top management interests in initiating innovation
3. review the impact of change requests on project costs, schedule, and specifications
4. schedule changes into PERT networks
5. identify new areas of project work

Answer: C
(151) Quality control is:

1. identifying which quality standards are relevant to the project and determining how to satisfy them
2. monitoring specific project results to determine if they comply with relevant quality standards and
identifying ways to eliminate causes of unsatisfactory performance
3. evaluating overall project performance on a regular basis to provide confidence that the project will
satisfy the relevant quality standards
4. 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
5. assuming the production of goods that meet the highest standards of luxury

Answer: B

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

1. the cost necessary for ensuring conformance to requirements

2. the life cycle cost of the project
3. all research and development costs related to the project
4. only the cost of the quality control function
5. A and B

Answer: A

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

1. Quality is free
2. Doing it right the first time
3. Zero defects
4. Process improvement
5. B and C

Answer: E

(154) Quality assurance is:

1. top management's intention regarding quality

2. functions determining implementation of the quality policy
3. actions to provide confidence of satisfying quality requirements
4. responsibilities and processes which implement quality management
5. all of the above

Answer: C

(155) The zero defects concept:

1. is a performance standard for management

2. is a motivational technique that promotes "doing it right the first time"
3. is used by management to communicate to all employees that everyone should do things right the
first time
4. A and C
5. B and C

Answer: D

(156) When appointed, a project manager has the inherent forms of legitimate power conveyed to him. The
three forms of legitimate power are:
 1. absolute, direct, and indict
2. direction, coordination, and liaison
3. formal, informal, and persuasive
4. formal, reward, and direct
5. formal, reward, and penalty

Answer: E

(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:

1. confrontation
2. compromise
3. smoothing
4. forcing
5. withdrawal

Answer: A

(158) The process of getting a group of diverse individuals to work effectively together as a team is the
definition of

1. leadership
2. project management
3. the project manager's responsibilities
4. implementation
5. team building

Answer: E

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

1. Cost plus percentage of cost

2. Cost plus incentive fee
3. Lump sum
4. Fixed price plus incentive fee
5. C and D

Answer: C

(160) PMI suggests which of the following behaviors as part of contract negotiations?

1. Probing, scratching, and small bites

2. Sniffing and smelling (olfactory)
3. Touching and caressing (tactile)
4. Mind-reading and extra-sensory perception
5. None of the above

Answer: A

(161) Project risk is characterized by three factors:

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

2. Identification, type of risk category and probability of impact
3. Risk event, risk probability and the amount at stake
4. Occurrence, frequency and cost
Answer: C

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

1. Project Management Policy of Ethics

2. Project Management Professional Standards
3. Project Management Code of Professional Ethics & Standards
4. Project Management Professional Code of Professional Conduct

Answer: D

(163) Which is not another term for contract?

1. Agreement
2. Purchase Order
3. Proposal
4. Memorandum of Understanding

Answer: C

(164) Which of the following situations describes a violation of the PMP. Professional Code of Conduct?

1. Accepting a gift that is within the customary guidelines of the country or province you are currently
working in.
2. Use of confidential information to advance your position or influence a critical decision.
3. Complying with laws and regulations of the state or province in which project management services
are provided
4. Disclosing information to a customer about a situation that may have an appearance of impropriety.

Answer: B

(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:

1. Provide the customer with a copy of your company code of conduct and refuse the gifts.
2. Exchange gifts with the customer and keep the exchange confidential
3. Contact your project sponsor and /or your legal office for assistance.
4. Ask the project sponsor or project executive to exchange gifts.

Answer: C

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

1. As a public official you make a decision about a contract award that will benefit you personally
2. You and a functional manager disagree with a task cost estimate
3. Your sponsor decides to cancel your project because it no longer supports the company strategy
4. Your personality conflicts with that of a key member of your project team.

Answer: A

(167) 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:
 1. Follow instructions
2. Inform the corporate auditors
3. Understand the background of management's instructions before taking any action
4. Try to close down the project

Answer: C

(168) Project Managers can contribute to their organization's knowledge base and to the profession of
project management most effectively by:

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

2. Establishing strict guidelines for protecting intellectual property
3. Promote the use of ad hoc project management
4. Ensuring that all project plans are developed before the project team is formed

Answer: A

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

1. Comply with the law.

2. Comply with regulations.
3. Provide accurate information.
4. Protect conflict of interest.

Answer: B

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

1. Do nothing; it's not your problem

2. Start by asking management if they are aware that regulations are being violated
3. Talk to the corporate legal department
4. Inform the appropriate government agencies about the violations

Answer: B

(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:

1. Accept the information and agree to keep it confidential between you and the new hire.
2. Review the condition of employment with the new hire and advise her to reconsider the offer.
3. Review the information and only accept only what may have a direct impact on the project's
financial status.
4. Ignore the offer to share and move forward with the project

Answer: B

(172) Before reporting a perceived violation of an established rule or policy the project manager should:

1. Determine the risks associated with the violation

2. Ensure there is a reasonably clear and factual basis for reporting the violation
3. Ignore the violation until it actually affects the project results
4. Convene a committee to review the violation and determine the appropriate response
Answer: B

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

1. Work Item
2. Work Package
3. Workaround
4. Work breakdown structure

Answer: C

(174) Qualitative Risk Analysis will be performed under :

1. Initiation Process Group

2. Planning Process Group
3. Executing Process Group
4. Monitoring & Controlling Process Group

Answer: B

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

1. Initiation Process Group

2. Planning Process Group
3. Executing Process Group
4. Monitoring & Controlling Process Group

Answer: C

(176) The terms "Facilitating Processes" and "Core Processes" are no longer used in new PMBOK. These
terms have been eliminated to ensure that all project management processes in the Project Management
Process Groups have the same level of importance.

1. True
2. False

Answer: A

(177) In a group of 4 members, 1 member has been added. How many communication channels are there
now :

1. 5
2. 3
3. 10
4. 20

Answer: C

(178) Which statement is correct :

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

2. PMI is not any more responsible form PMBOK.
3. PMBOK will be changed every year in December.
4. New PMBOK has 9 process groups and 42 processes.

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

1. Contract
2. Project Statement of Work
3. Enterprise Environmental Factors
4. Organizational Process Assets
5. Project Management Information System

Answer: E

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

1. Organizational Process Assets

2. Work Breakdown Structure Templates
3. WBS Dictionary
4. Configuration Management System

Answer: B

(181) Which of the following is not an input to Activity Definition process:

1. WBS Dictionary
2. Organizational Process Assets
3. Project Scope Statement
4. Work Breakdown Structure
5. Schedule Network Templates

Answer: E

(182 ) Which of the following is not an output of Activity Resource Estimating:

1. Activity Resource Requirements

2. Resource Breakdown Structure
3. Requested Changes
4. Resource Management Plan

Answer: D

(183) Which of the following is a tool used in Activity Duration Estimating:

1. Analogous Estimating
2. Work Breakdown Structure Templates
3. Critical Path Method
4. Schedule Network Templates

Answer: A

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

1. Schedule Development
2. Activity Definition
3. Create WBS
4. Resource Allocation

Answer: A
(185) Which is not a technique used for cost estimation :

1. Analogous Estimating
2. Bottom-up Estimating
3. Parametric Estimating
4. Vendor Bid Analysis
5. Resource Leveling

Answer: E

(186) Which is not a tool used in Quality Planning process :

1. Cost-Benefit Analysis
2. Benchmarking
3. Design of Experiments
4. Cost of Quality (COQ)
5. Process Analysis

Answer: E

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

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

2. Cost of Quality (COQ), Cause and Effect Diagram and Control Charts
3. Control Charts, Flowcharting and Process Analysis
4. Pareto Chart, Control Charts and Cause and Effect Diagram

Answer: D

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

1. Human Resource Planning

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

Answer: A

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

1. 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.
2. Placing many or all of the most active project team members in the same physical location to
reduce the cost of the project
3. Performing a complete project at a single location
4. Performing a project at various locations.

Answer: B

(190) Manage Stakeholders is a part which of the following process group:

1. Human Resource Management

2. Project Time Management
3. Project Cost Management
4. Project Communications Management
5. Project Risk Management
Answer: D

(191) Which is not correct about Communications Management Plan document:

1. It contains Stakeholder communication requirements

2. It contains Person responsible for communicating the information
3. It contains Frequency of the communication, such as weekly
4. It contains Methods or technologies used to convey the information, such as memoranda, e-mail,
and/or press releases
5. It contains total cost required for performing communication.

Answer: E

(192) Which is not a tool used for Risk Response Planning:

1. Risk Audits
2. Avoidance
3. Transfer
4. Mitigate
5. Exploit

Answer: A

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

1. Select Sellers
2. Request Seller Responses
3. Contract Administration
4. Contract Closure

Answer: B

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

1. Human Resource Planning - Identifying and documenting project roles, responsibilities, and
reporting relationships, as well as creating the staffing management plan.
2. Acquire Project Team - Obtaining the human resources needed to complete the project
3. Develop Project Team - Improving the competencies and interaction of team members to enhance
project performance
4. Manage Project Team - Tracking team member performance, providing feedback, resolving issues,
and coordinating changes to enhance project performance.
5. Team Building - Forming a team from scratch for a new project.

Answer: E

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

1. Contract Closure - completing and settling each contract, including the resolution of any open
items, and closing each contract.
2. Plan Purchases and Acquisitions - selecting a buyer to purchase any product or service.
3. Select Sellers - reviewing offers, choosing from among potential sellers, and negotiating a written
contract with a seller.
4. Request Seller Responses - obtaining information, quotations, bids, offers, or proposals, as
appropriate
5. Plan Contracting - documenting products, services, and results requirements and identifying
potential sellers
Answer: B

(196) Which of the following is not correct:

1. PMO - Program Management Office

2. RBS - Resource Breakdown Structure
3. RAM - Resource Assignment Matrix
4. RFP - Request for Proposal
5. TQM - Total Quality Management

Answer: C

(197) Which of the following is not correct :

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

2. Crashing: A specific type of project schedule compression technique performed by taking action to
decrease the total project schedule duration.
3. Total Quality Management: A common approach to implementing a quality improvement program
within an organization
4. Risk Register: The risk register details all identified risks, including description, category, cause,
probability of occurring, impact(s) on objectives, proposed responses, owners, and current status.
5. Simulation: prototyping of a project to check if proposed design will work or not.

Answer: E

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

1. Delphi
2. PERT
3. CPM
4. Monte Carlo Analysis

Answer: D

(199) What is critical path?

1. The shortest path through the network, which represents the longest amount of time in which a
project can be completed.
2. The path with zero float.
3. The longest path through the network, which represents the shortest amount of time in which a
project can be completed.
4. The path with the most activities with the longest durations.
5. b and c

Answer: C

(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 __________

1. Culture
2. Behavior
3. Language
4. Traditional way of doing things
5. Loud talking

Answer: E
If your yield is: Your DPMO is: Your Sigma is:

30.9% 690,000 1.0

62.9% 308,000 2.0
93.3 66,800 3.0
99.4 6,210 4.0
99.98 320 5.0
99.9997 3.4 6.0