Flash Cards - Exam Qs

1
198. _________ Contains detailed descriptions of work

packages? a. WBS dictionaries b. Scope of work c. Budget Answer: a
estimates d. Cost estimates
1. The relationship between the budgeted actual cost, actual

work completed and work planned will determine the
A. Schedule estimate at completion
B. Cost estimate at completion Answer: A
C. Cost Performance Index
D. Schedule Performance Index
E. both a and b
2. All work packages are complete

A. at EAC time
B. when BAC is equal to EAC
Answer: B
C. when BCWP intersects BCWS
D. when schedule variance is zero
E. c and d
3. Earned value is
A. the base line plan
B. completed work value
Answer: B
C. cost/cost variance
D. percent over or under budget
E. a and b
You could tell Diane was worried about her project. Her folks
had been working on the project since Independence Day.
Here it was already Halloween and they were just finishing up
work that was supposed to have been completed by Labor
Day. "Oh dear", she confided to her friend, "Instead of
completing by Christmas, at this rate I expect we won't be
Answer: E
done until
A. New Year's Day
B. St. Patrick's Day
C. Easter
D. Mother's Day
E. the 4th of July
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. Diane was so concerned about her project that she woke up

dreaming about it. She thought to herself, "Well, our BCWP is
2, our ACWP is 4 and our BCWS is 6, so that means
A. our productivity was less than planned
Answer: E
B. our cost estimate at completion is 6
C. our CPI and SPI are both positive
D. our cost variance is negative
E. a, c and d
The measurement which best shows the difference between

actual work and actual costs is
A. Cost variance
B. Percent over or under Answer: A
C. Schedule variance
D. CPI
E. this is not a valid measurement
Rework costs ____ times budgeted costs.

A. +75, -25
B. +25, -10
Answer: E
C. 85
D. 10 to 15
E. 25 to 50
. If part of a project's costs will be paid in future years, the

best way to determine the value of those costs in today's
dollars is
A. estimated project payout
Answer: D
B. return on investment
C. net present value
D. discounted cash flow
E. internal rate of return
. If the ACWP exceeds the BCWP, the cost estimate at Answer: A

completion will
A. increase
B. decrease
C. depend on the BCWS
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D. exceed the schedule estimate at completion

E. a and d
. If the BCWS = $1,000,000, the BAC = $2,000,000, the

ACWP = $1,500,000, the BCWP = $500,000 and you're
halfway through the project after two years, what is the cost
estimate at completion?
A. $2,000,000 Answer: C
B. $4,000,000
C. $6,000,000
D. $8,000,000
E. Cannot be determined without the EAC
. Cost management requires a critical look at future

expenditures and the controls exercised over those
expenditures. The three types of cost estimates through
which project expenditures are made are ________.
A. rough order of magnitude, guestimate, and actual Answer: C
B. traditional, classical, and contemporary
C. order of magnitude, budget, and definitive
D. concept, budget, and design
E. engineering, quoted, and definitive
The cost estimate with the most precise estimate (i.e., the
smallest range of error) is the ________ estimate.
A. engineering
B. budget Answer: D
C. concept
D. definitive
E. contingency
. The cost estimate that has a range for error of minus 10

percent to plus 25 percent is the ________ estimate.
A. budget
B. definitive Answer: A
C. parametric
D. analogy
E. contingency
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There are usually two types of reserves in a project's budget.

The ________ reserve is for cost variances from the plan
because of inaccurate estimates or pricing and costs
overruns, while the ________ is to accommodate costs for
project work that were not included in the plan through error
or oversight. Answer: C
A. project; budget overrun allowance
B. engineering; management allowance
C. management; contingency allowance
D. management; mismanagement allowance
E. planned; unplanned work allowance
Feasibility studies are evaluations of both the technical and

economic aspects of a potential project. In the economic area,
one would look at such items as interest rates, present worth
factors, capitalization costs, and ________.
A. human resource skills Answer: B
B. depreciation costs
C. prospective projects managers
D. implementation of cost controls
E. availability of cost accounting methods
Project financing can be extremely complex and can come

from a variety of sources. However, ________ is not a
potential source of financing for a project.
A. borrowing money from a bank
Answer: D
B. selling stocks in the project or corporation
C. selling bonds on the project
D. selling lottery tickets on the project
E. leasing or renting existing property to another
Life cycle costing is a concept whereby all costs for a system Answer: B
are computed to determine the total cost of ownership. Life
cycle cost categories include ________.
A. purchase, repair, and operation
B. development, procurement, and operation/maintenance
C. procurement, lease, and disposal
D. procurement, operation, and disposal
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E. operation, maintenance, and storage
The integration of cost and schedule to provide measures of

the project's performance is the earned value system, or
contract performance measurement. The baseline for the
earned value system is depicted as a slight "S" curve
because ________.
A. there are fewer costs at project initiation until the work
force is fully staffed
B. there are workers who have not been paid, so the expense
Answer: C
is not shown on the chart
C. there are more expenses to get a project started than are
required on a normal operating basis
D. this is just a traditional method of plotting the costs and has
no relationship to the actual expenditures
E. this approximation has proven to be nearly correct when all
costs and expenditures have been accounted for at project
completion
The pricing of a project can be extremely complex in the

development of valid cost estimates and price quotes from
vendors. The tool that facilitates the pricing of a project by a
structured decomposition of the total into individual elements
of labor, material, and equipment is the ________.
Answer: E
A. project management plan
B. budget
C. responsibility matrix
D. configuration management plan
E. work breakdown structure
In estimating the cost of work, the best source of cost

information can be obtained from the ________.
A. customer
B. historical records Answer: B
C. senior engineers
D. top management
E. independent consultants
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Setting up a cost control system requires matching the work

packages to the cost accounting system. The direct mapping
of the work packages to the accounting is accomplished by
establishing a ________.
A. work package cost/price Answer: E
B. work breakdown structure element
C. cost correlation matrix
D. computer coded bar chart
E. code of accounts
Cost overruns on a project have major impacts on the

profitability of operations, but ________ do(es) not
necessarily contribute to cost overruns of a project budget.
A. a change in contract scope
Answer: A
B. delays in schedule
C. lack of work force experience
D. integration uncertainty for project elements
E. contractor claims for out-of-scope work
. Suppose the contingency allowance established to cover

unforeseen activities of a project has been set at eight
percent of the total project cost. The total dollars in the
contingency allowance should be ________ as the project
nears completion.
A. retained at the remaining dollar level Answer: E
B. increased to meet unidentified surprises
C. decreased to reduce the accounting work
D. spent to ensure there is no extra money shown in the
budget
E. reduced to a percentage of the remaining work
Suppose a contract has been in force for six months and the Answer: E
work is progressing, and then the buyer requests some
changes in the design. The changes do not affect completed
work but add some new items and subtract some existing
items. The cost to the buyer to accomplish these changes is
________.
A. increased by the amount of added work
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B. unchanged because the contract is in place

C. decreased because the work has not been started
D. unchanged because the buyer (customer) is always right
E. unknown because the cost of the changed work is not
specified
. In the earned values system, the focus is on "cost of work,"

which is divided into "scheduled" and "performed" work. This
is further defined as "budgeted" and "actual" work. The
formula "BCWP - BCWS" provides the ________.
A. cost difference Answer: B
B. schedule variance
C. overrun conditions
D. schedule difference
E. cost variance
Indices can provide an indication of the status of a project. In

the earned values system, there are two indices
Cost Performance Index (CPI) and Schedule Performance
Index (SPI). The formula for CPI is ________.
A. ACWP/BCWS Answer: C
B. ACWP/BCWP
C. BCWP/ACWP
D. BCWS/ACWP
E. BCWS/BCWP
Suppose that in the earned value system, the status of the

project is reported as BCWS = 100, ACWP = 110, BCWP =
95. The project is now ________.
A. underspent and behind schedule
Answer: D
B. overspent and ahead of schedule
C. underspent and ahead of schedule
D. overspent and behind schedule
E. cannot be determined from available data
. Projects have direct and indirect costs that the project Answer: B
manager must track to ensure the budget is not exceeded.
The project manager has the most control over direct costs
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such as ________.
A. bonuses, fees, and awards
B. labor, materials, and equipment
C. labor, supervision, and fees
D. overhead, G&A, and fees
E. G&A, facilities, and transportation
. A project is being advertised to solicit bidders. The buyer has

asked for two types of price first, if payment is made in total
upon completion of the project; second, if payment is made
50 percent at the midpoint of completion and 50 percent upon
total completion. This is a two-year project that is being priced
at $10,000,000 when the cost of money is not included.
Assume money is borrowed in two equal increments-at the
start of year 1 and year 2. If the interest rate over the two Answer: D
years is eight percent, the total bid under each option (i.e.,
payment at the end; payment at midpoint) is ________.
A. $11,844,000; $11,412,000
B. $10,400,000; $10,040,000
C. $10,800,000; $10,400,000
D. $11,232,000; $10,832,000
E. $12,484,000; $11,244,000
. The cost of money and cash flow can adversely affect the
financial status of the project. One method of encouraging
early payment of invoices is to offer a discount for payment
within a few days. If an invoice for $10,000 was paid within (x)
days (see each possible answer for value of x), the method
"two 10, net 30" would provide a savings of ________. Answer: D
A. $100 (x = 30)
B. $200 (x = 30)
C. $300 (x = 10)
D. $200 (x = 10)
E. cannot be determined from available data
. Project financial audits are used to determine the current Answer: B

status of the financial health of a project, but ________ is/are
not an area for financial audit.
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A. a project budget system

B. a project computer system
C. a project change control
D. a project status reporting
E. cash-flow projections
A project audit is often a three-step process using different

skills to assess the condition of the health of the project. The
first audit, or first audit opportunity, is at the ________ phase.
A. start of the planning
Answer: C
B. start of the implementation
C. end of the planning
D. end of the implementation
E. middle of the implementation
The budget for a project is the baseline from which future

expenditures are measured. Of the following, ________
do(es) not cause change to the budget baseline during
project implementation.
A. change orders to the contract
Answer: B
B. expenditures to buy materials
C. revised cost estimates made in-house
D. changes to subcontractor's scope of work
E. correction to the work breakdown structure to eliminate
some tasks
In the earned value system for determining project status, Answer: D

there are several methods of accepting credit for the
completion of work. In the most common method, full credit is
allowed after the work package is complete. A second method
is to allow full credit when 50 percent of the work package is
complete to permit the performing contractor (seller) to
receive credit for work-in-process. From the seller's point of
view, ________.
A. either method is acceptable under an incremental payment
schedule contract
B. the credit at 100 percent completion is better for either a
lump-sum or incremental payment contract because the
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accounting is more accurate

C. the credit at 100 percent completion is better because the
accounting lags the work-in-process by 30 days in any type of
payment schedule
D. the credit at 50 percent completion is better because it
improves the cash flow under an incremental payment
schedule
E. the credit at 50 percent completion is better because it
reduces the billing cycle
Because of the investment or risk associated with a project,

the decision may be to ensure a high profitability. When this is
the case, senior management should agree on profit
________ of the project.
A. capability at the beginning Answer: D
B. margin (rate) at the midpoint
C. margin (rate) at the end
D. goals at the beginning
E. goals at the end
Estimating costs for a project is difficult because of the lack of

historical cost records, the uncertainty regarding the future
state of the economy, and the lack of understanding as to the
full scope of work. Successive estimating is one method of
accounting for the uncertainty of cost estimating by
________.
A. making three estimates and taking the average Answer: C
B. continually making estimates as the project progresses
C. also including the range of potential error for an estimated
item
D. using two or more cost estimating techniques to arrive at
an average cost
E. delaying estimates until all information is acquired
The degree of uncertainty (lack of information) in a project Answer: B

affects the ability of cost estimators to make precise estimates
to determine the total cost. One method to resolve the
uncertainty is influence diagramming, which is used to
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evaluate ________.
A. price, net worth, and net present value
B. alternative outcomes, risk factors, and given quantities
C. risk factors, price, and alternatives
D. price, quantities, and time of purchase
E. risk factors, contract type, and project duration
. The most accurate estimates (and the most expensive to

produce) are _______.
A. analogous estimates
B. parametric estimates Answer: D
C. top-down estimates
D. bottom-up estimates
E. function point estimates
The ________ identifies the project elements that costs will

be allocated to.
A. work breakdown structure
B. PERT estimates Answer: A
C. earned value
D. order of magnitude estimate
E. BCWR
The EAC is a forecasting technique based on past project

performance. It can be calculated using the formula
________.
A. cumulative actuals + (ETC X CPI)
B. cumulative actuals + new estimate for cost of work Answer: D
remaining
C. cumulative actuals + remaining budget
D. all of the above
E. none of the above
The best way to manage the costs of change requests is to Answer: D

________.
A. accept them orally
B. allow them to happen in ad hoc fashion
C. impose change unilaterally
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D. document and authorize all changes

E. use the earned value system
Materials management is crucial to the success of the project

when resources are needed at a specified time and place to
ensure continued progress. An assessment of the materials
costs should consider not only the cost of purchase but also
________.
Answer: C
A. transportation, deterioration, and storage
B. storage, damage, and deterioration
C. transportation, storage, and shortage
D. transportation, storage, and loss
E. quantities, storage, and damage
. Project financing is critical to large projects where neither the

owner (buyer) or contractor (seller) has sufficient funds
available to cover the costs incurred during project
implementation. In such cases, a third party must provide the
necessary capital. The third party evaluates the feasibility of
financing the project based on ________. Answer: E
A. the participants' business reasons for the project
B. the share of ownership to be retained
C. the level of risk the participants are to share
D. the project's anticipated cash flow and tax benefits, if any
E. all of the above
The financing plan for a project should detail the methods of

obtaining and dispensing the capital over the full duration of
the project. In preparing the plan and considering risk and
reward, management should ensure that participants' credit
standing is preserved, maximum leverage is used, tax
benefits are optimized, flexibility is incorporated into
Answer: C
ownership, and ________.
A. additional tax relief is pursued
B. lines of credit are opened
C. accesses to sources of new capital are maintained
D. maximum financing is used
E. late receipt of funds is avoided
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. Investors are often used to obtain the necessary financing

for major projects, which can transfer the ownership to the
investors. The system is then leased back for operation and
use. The major advantage for the investors is ________ , and
the major advantage for the user of the system is ________.
A. control of a business; low risk for operation and Answer: C
maintenance
B. high internal rate of return; favorable tax write-off
C. favorable tax write-off; new source of funds
D. ownership without risk of operation; favorable tax write-off
E. reduced quality (performance) risk; reduced cost risk
Lending institutions are eager to finance projects that have an

excellent potential for being successful and repaying the
loans. Timely repayment of the debt depends largely on
________.
A. the willingness of the owners to make payments Answer: B
B. future cash flows to be generated by the entity
C. the debt-to-liquidity ratio
D. the entity's internal rate of return on operations
E. future ownership and operating cycles
The success of a project is usually considered its ability to

meet the objectives established prior to the start of the
project. In a more global view, to become a functioning entity
the project must have working capital, which consists of
________.
Answer: D
A. cash, inventories, sales, and receivables
B. cash, sales, receipts, and receivables
C. receipts, savings, receivables, and inventories
D. cash, receivables, inventories, and payables
E. sales, receipts, inventories, and stock
. Under any type of contract, the owner (buyer) is always Answer: D

concerned with the cost of a project and the contractor's
(seller's) expenditure rates. Although the fixed price contract
transfers much of the risk to the contractor, the owner has a
lot at risk in terms of meeting his/her objectives. One of the
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best methods of controlling contractor expenditure rates

under any type of contract is to ________.
A. hold back a portion of the payment until all work is
completed to the satisfaction of the technical inspectors
B. ensure that only fixed price contracts are awarded and that
payment is only upon satisfactory completion of the project
C. have an "owner's representative" monitor and track all
expenditures and have power to disapprove any expenditure
that is not justified to him/her
D. track and pay the costs of the contract by phases or stages
and evaluate the costs at each review/decision point
E. set up a duplicate project accounting system, track all
costs, and validate the costs as being the best value for the
owner
. The budget for a major project lasting several years is

usually prepared to reflect expenditures on an annual basis.
The budget is, therefore, compared to expenditures at the
end of each accounting cycle (i.e., each year). This poses a
potential problem because _________ .
A. the budget will always be greater than the rate of
expenditure when delays are encountered in paying the
billings
B. the expenditure rate will be viewed optimistically
Answer: E
(underspent) and the project manager will attempt to increase
expenditures
C. the budget is not representative of the expenditure rate
when there is an increase to the scope of work
D. the budget changes too frequently to permit a valid
comparison of the plan versus the actual expenditures
E. schedule delays or restructuring of the workload will affect
costs during the accounting periods and give false indications
of expenditure rates
Project Cost Management includes all of the following Answer: B

functions EXCEPT
A. Resource planning
B. Resource leveling
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C. Cost estimating
D. Cost budgeting
E. Cost control
Which of the following choices indicates that your project was

10% under budget?
A. BCWS = 100, BCWP = 110
B. ACWP = 100, BCWP = 110 Answer: B
C. BCWS = 100, ACWP = 110
D. ACWP = 110, BCWP = 100
E. BCWP = 100, BCWS = 110
. Earned value can best be defined as

A. The value of the equipment that has been installed as of
the data date
B. The sum of the labor costs, which have been incurred on
the project ot date
Answer: C
C. A method of measuring project performance
D. A method of measuring the amount of money that has
been spent to date
E. The Actual Cost of Work Performed minus the Budgeted
Cost of Work Performed
. The output from resource planning includes

A. Job descriptions
B. Salary schedules
Answer: C
C. The types of resources required
D. Analogous estimating
E. Historical informaiton
. Cost estimates may be expressed in I. Units of currency II.

Staff hours III. Staff days
A. I only
B. II only Answer: E
C. III only
D. I and II only
E. I, II, and III
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All of the following are functions of cost control EXCEPT

A. Informing the appropriate project stakeholders of
authorized changes in the cost baseline
B. Monitoring cost performance to detect variances from the
cost baseline
C. Ensuring that all appropriate changes are recorded Answer: D
accurately in the cost baseline
D. Allocating the overall estimates to individual work
packages in order to establisha cost baseline
E. Preventing incorrect, inappropriate, or unauthorized
changes from being included in the cost baseline
. During the sixth monthly update on a ten month $30K

project, the analysis shows that the BCWS is $20K, and the
ACWP is $10K. The BCWP is also determined to be $15K.
What can be ascertained from these figures? I. Less has
been accomplished that was planned II. Less has been spent
than planned III. To complete the project on schedule, costs
will exceed budget IV. The project will probably complete Answer: D
behind schedule, but under budget
A. II only
B. Ii and III only
C. III and IV only
D. I, II, and IV only
E. I, II, III, and IV
. Cost estimates include all of the following resource

categories EXCEPT
A. Labor
B. Materials Answer: E
C. Supplies
D. Inflation allowances
E. Time allocations
Parametric cost estimating involves Answer: D

A. Using the WBS as the basis for estimating
B. Defining the parameters of the project life cycle
C. Caldculating individual cost estimates for each work
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package
D. Using rates and factors based on historical experience to
estimate costs
E. Using the actual cost of a similar project to extimate total
proejct costs
All of the following choices represent inputs to the resource

planning process EXCEPT
A. The policies of the particular organization (e.g. use of
contracting or internalstaffing, or lease or purchase major
equipment) Answer: D
B. The WBS
C. Descriptions of the available resources
D. The actual final cost of the last project
E. The scope statement
Cost control is concerned with I. Influencing the factors that

create change to the cost base line II. Determining that the
cost baseline has changed III. Managing cost changes when
they occur
A. I only Answer: E
B. III only
C. I and III only
D. II and III only
E. I, II, and III only
Historical results used in cost estimating may include I.

Project team knowledge II. Project files III. Commerial cost
estimating databases IV. Actual time to complete similar
projects
A. I, II, and III only Answer: A
B. I, II, and IV only
C. I, III, and IV only
D. II, III, and IV only
In the earned value system, cost variance is computed as Answer: B

A. BCWP - BCWS
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B. BCWP - ACWP
C. ACWP - BCWP
D. ACWP - BCWS
E. BCWS - BCWP
. Earned value includes I. Percent complete II. Actual cost of

work performed III. Comleted work value IV. Budgeted cost of
work performed
A. III only
Answer: D
B. I and II only
C. II and III only
D. I, III, and IV only
Analogous estimating
A. Uses bottom-estimating techniques
B. Uses the actual costs from a previous, similar project
Answer: B
C. Is used most frequently in the later stages of a project
D. Uses project characteristics in a mathematical model
E. Summarizes estimates for individual work items
. Inputs to resource planning include all of the following

EXCEPT
A. The WBS
B. The Scope statement Answer: E
C. A resource pool description
D. Organization policies
E. Resource requirements
Of the following four major processes contained in Project

Cost Mangement, which are concerned with the Cost
Baseline?
A. Resource Planning and Cost Estimating
Answer: C
B. Cost Estimating and Cost Budgeting
C. Cost Budgeting and Cost Control
D. Resource Planning and Cost Control
E. Resource Planning, Cost Estimating, and Cost Control
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In order to determine the project's Estimate at Completion,

which of the following information is needed?
A. BCWP and ACWP
B. BCWP and CV Answer: E
C. CPI and CV
D. ACWP and CPI
E. ACWP and ETC
. If BCWS = 100, BCWP = 98, adn ACWP = 104, the project

is
A. Ahead of schedule
B. Headed for a cost overrun Answer: B
C. Operating at project cost projections
D. Likely to come in under budget at completion
E. Behind schedule
. Which is an acceptable cause for "re-baselining" a $10M

project
A. The monthly Consumer Price Index on some commodities
essential to the project has gone up by 1.6%, an increase of
46% over the 1.1% that had been budgeted
B. The client has authorized a $10K addition to the scope of
the project
Answer: B
C. The contractor's company has instituted a Quality Program
in which it has pledged to spend $1M during the next year
D. The productivity in the Dratfting Department is lower than
anticipated which has resulted in 1,000 additional hours, a
78% increase over what was budgeted
E. The engineering dpartment has converted to a new $200K
CAD system
Which item is most over budget? Answer: E

<table>
<tr><th>Item <th> BCWS <th> ACWP <th> BCWP
<tr><td>1 <td> 10,000 <td> 11,000 <td> 10,000
<tr><td>2 <td> 9,000 <td> 8,000 <td> 7,000
<tr><td>3 <td> 8,000 <td> 8,000 <td> 8,000
<tr><td>4 <td> 7,000 <td> 7,000 <td> 5,000
20
<tr><td>5 <td> 6,000 <td> 9,000 <td> 6,000

</table>
A. Item 1
B. Item 2
C. Item 3
D. Item 4
E. Item 5
Which item has the lowest SPI?

<table>
<tr><th> Item <th> BCWS <th> ACWP <th> BCWP
<tr><td> 1 <td> 10,000 <td> 11,000 <td> 10,000
<tr><td> 2 <td> 9,000 <td> 8,000 <td> 7,000
<tr><td> 3 <td> 8,000 <td> 8,000 <td> 8,000
<tr><td> 4 <td> 7,000 <td> 7,000 <td> 5,000
Answer: D
<tr><td> 5 <td> 6,000 <td> 9,000 <td> 6,000
</table>
A. Item 1
B. Item 2
C. Item 3
D. Item 4
E. Item 5
According to earned value analysis, the SV of the project

described below is BCWS = $2.2K, BCWP = $2K, ACWP =
$2.5K, BAC = $10K
A. +$300 and the project is behind schedule
Answer: E
B. -$300 and the project is ahead of schedule
C. +$8K and the project is on schedule
D. +$200 and the project is ahead of schedule
E. -$200 and the project is behind schedule
What is the CPI for this project, and what does it tell us about Answer: B
cost performance thus far?BCWS = $2.2KBCWP =
$2KACWP = $2.5KBAC = $10K
A. 0.20; actual costs are exactly as planned
B. 0.80; actual costs have exceeded planned costs
C. 0.80; actual costs are less than planned costs
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D. 1.25; actual costs have exceeded planned costs

E. 1.25; actual costs are less than planned costs
. The CV is BCWS = $2.2KBCWP = $2KACWP = $2.5KBAC

= $10K
A. $300
B. ($300) Answer: D
C. $500
D. ($500)
E. None of the above
What is the EAC for this project, and what does it represent?
BCWS = $2.2KBCWP = $2KACWP = $2.5KBAC = $10K
A. $10K; the original project budget
B. $10K; the revised estimate for total project cost (based on
performance thus far) Answer: D
C. $12,500; the original project budget
D. $12,500; the revised estimate for total project cost (based
on performance thus far)
. Life-cyle cost estimates consider the

A. Costs of the project for the concept, planning,
implementation, and closeout phases
B. Expected profits, measured by subtracting total costs from
estimated gross revenues Answer: C
C. Cost of ownership, including the costs of operations and
disposal
D. Project cost at the time of customer acceptance
E. Acquisition costs only
Accelerated depreciation allows a company to write capital Answer: B

expenses off its taxes more quickly. Which of the following is
a recognized method of accelerated depreciation?
A. Straight-line
B. Double-declining balance
C. Rapid capital deduction
D. A and B
22
E. All of the above
Experts contend that sunk costs should not be considered in

making financial decisions about the future of a project. Sunk
costs are
A. The initial outlay to get a project started
Answer: B
B. Costs that have been expended already
C. The average cost per unit
D. The marginal cost
E. Total indirect and direct costs
. All the following statements about analogous estimating are

true except that it
A. Supports top-down estimating
B. Is a form of expert judgement
C. Is used to estimate total project costs when a limited Answer: E
amount of detailed projectinformation is available
D. Involves using the cost of a previous, similar project as the
basis for estimatingthe cost of teh current project
E. Has an accuracy rate of +/- 10% of actual costs
Which of the following estimates would most closely predict

the actual cost of a project?
A. Order-of-magnitude
B. Budget Answer: C
C. Definitive
D. Initial
E. Detailes
If a project is running behind schedule and the project

manager decides to crash the network to catch up, which of
the following rules should he/she follow?
A. Use early start times for noncritical tasks
B. use resource leveling to optimize the productivity of project Answer: D
resources
C. Crash the tasks that have the longest duration
D. Crash critical tasks for which cost of crashing is lowest
E. Use late start times for noncritical tasks
23
. According to learning curve theory, when many items are

produced repetitively
A. Production equipment that requires less operator training
lowers unit costs
B. Unit costs decrease as production rates increase
Answer: C
C. Unit costs decrease in a regular pattern as more units are
produced
D. Costs of training increase as the level of automation
increases
Which of the following is NOT an example of a direct cost?

A. Salary of the project manager
B. Subcontractor expenses
Answer: D
C. Materials used by the project
D. Electricity
E. B and D
84. As the fourth month on the Acme project, cumulative

planned expenditures were $100K. Actual expenditures
totaled $120K. How is the Acme project doing?
A. The project is ahead of schedule
Answer: E
B. The project is in trouble because of a cost overrun
C. Project costs are within a normal range
D. The project will finish within the original budget
E. Sufficient information is not available
. In bottom-up cost estimating, accuracy is enhanced

A. With smaller work items
B. By using accurate historical information
C. If previous projects are similar in fact, not just in
Answer: A
appearance
D. If the individuals or groups preparing the estimates are fully
qualified
E. Through the use of computerized tools
Working capital consists of Answer: A

A. Current assets minus current liabilities
24
B. Funds reserved for bid and proposal costs

C. Funds set aside for unforeseen problems
D. Current liabilities plus current assets
E. Current liabilities minus current assets
According to the law of dimishing returns

A. Using more resources will result in proportionately more
output
B. Using fewer resources will result in greater profit
C. Using more resources will result in proportionately less
Answer: C
output
D. Using more resources will result in the projrect's taking less
time
E. Smaller production runs will increase unit costs, thereby
reducing profit
Which of the following is a tool for analyzing a design,

determining its functions, and assessing how to provide those
functions cost-effectively?
A. Pareto diagram
Answer: D
B. Kanban
C. Configuration management
D. Value analysis
E. Management by objectives
The cost management plan

A. Describes how CVs will be managed
B. Establishes the cost baseline
Answer: A
C. Measures and monitors cost performance on the project
D. A and C
E. A, B, and C
. Cost accounts Answer: D

A. Are charge accounts for personnel time management
B. Summarize project costs at level 2 of the WBS
C. Identify and track management reserves
D. Represent the basic level at which project performance is
measured and reported
25
E. All of the above
The internal rate of return is a measure of a project's

expected profitability that can be thought of as the
A. After-tax profit reported to the government
B. Average rate of return for the project Answer: B
C. EAC minus BAC
D. CV percentage
E. Ratio of discounted revenues over discounted costs
. A resource-limited project is one in which

A. The project must be finished as soon as possible but
without exceeding a specific level of resource usage
B. Functional managers do not allocate the required number
of resources at the time required by the project manager
Answer: A
C. Th eproject must be finished by a certain time using a few
resources as possible
D. The project manager is rewarded if only a few of the
allocated resources are used
E. All of the above
Considering the project schedule during the cost budgeting

process
A. Identifies the project elements so that costs can be
allocated
B. Allows costs to be assigned to the time period when they
Answer: B
will be incurred
C. Provides another way to help measure and monitor cost
performance
D. A and B
E. A, B, and C
. Resource leveling is an important tool for the project Answer: E

manager because
A. Less management attention is required if the use of a given
resource is nearly constant over time
B. A just-in-time inventory policy may be used without
worrying that the quantity delivered will be incorect
26
C. Morale on the project may be increased

D. Stable labor levels will result in fewer problems with regard
to administration of personnel and payroll
E. All of the above
The purpose of resource planning is to

A. Determine the physical resources needed to perform
project activities
B. Approximate the costs of resources needed to complete
project activities
Answer: A
C. Provide quantitative assessments of the costs of resources
required to complete project activities
D. Determine the resources that are potentially available
E. Assess the organizational policies concerning resources for
use on the project
The cost of investing in a particular project and, therefore,

forgoing the potential benefits of other projects is known as
A. Variable cost
B. Total cost Answer: E
C. Fixed cost
D. Indirect cost
E. Opportunity cost
Which of the following techniques for cost estimating is

considered the least accurate?
A. Bottom-up estimating
B. Parametric modeling Answer: C
C. Analogous estimating
D. Computerized tools
E. Range estimating
. Net present value is the

A. After-tax value of working capital
B. Value today of future cash flow
Answer: B
C. Total budget as of today
D. Total budget as of today plus management reserve
E. Future value of present cash flow
27
Supporting detail for cost estimates should include

A. A description of the scope of work
B. Documentation of the basis of teh estimate
Answer: E
C. Documentation of any assumptions made
D. An indication of teh range of results
E. All of the above
Financial analysis of
payback period identifies the
A. Ratio of discounted
revenues over discounted
costs
B. Future value of money
invested today
Answer: C
C. Project that is expected to
become profitable most
quickly
D. Point in time where costs
exceed profit
E. Margin that has been
earned
. The purpose of cost budgeting is to Answer: D

A. Determine the cost of the resources
needed to complete project activities and
allocate them to the proper chart of accounts
for the organization
B. Provide a quantitative assessment of the
likely costs of the resources required to
completeproject activities
C. Monitor cost performance to detect
variances from the plan
D. Allocate cost estimates to individual work
items to establish a cost baseline
againstwhich project performance can be
measured
28
E. All of the above
Resource loading describes

A. A method to minimize the period-by-period
variations in resources by shifting tasks
withintheir slace allowances
B. The number of people assigned to each
task
C. The amount of materials needed for each
Answer: D
task
D. The amount of individual resources that
an existing schedule requires during specific
time periods
E. The need to finish a project as soon as
possible without exceeding a specified level
of resource usate
. Anticipating the actios and resources

required to satisfy customers is an
investment in the future. Therefore, the
project manager should consider the cost of
quality in determining the project's budget.
The cost of quality includes the
Answer: D
A. Cost of conformance (doing it right the
first time)
B. Cost of nonconformance
C. Cost of materials
D. A and B
E. A, B, and C
To determine EAC, the project manager can Answer: E

A. Take actuals to date plus the remaining
project budget modified by a performance
factor
B. Take actuals to date plus a new estimate
for all remaining work
C. Take actuals to date plus the remaining
budget
29
D. A and B
E. A, B, and C
. The undistributed budget is part of the

A. Management reserve
B. Performance measurement baseline
Answer: B
C. Level-of-effort cost accounts
D. Indirect pool of accounts
E. General and administrative accounts
Contingencies should be justified

A. Explicitly, in advance of committing to the
budget
B. Implicitly, to allow for a management
Answer: A
reserve
C. As needed during the project
D. `At the time the budget is prepared
E. At the time the price is determined
The process of cost control includes all the

following actions except
A. Monitoring cost performance to detect
variancesa from the plan and determining
the reasonsfor both positive and negative
variances
B. Ensuring that all appropriate changes are
recorded accurately in the cost baseline
Answer: C
C. Selecting projects using IRR, present
value, or other techniques to ensure
profitability
D. Informing appropriate stakeholders of
authorized changes
E. Preventing incorect, inappropriate, or
unauthorized changes from being includedin
the cost baseline
A rolling-wave budget provides Answer: B

A. Maximum assurance that management's
30
oals are reasonable and attainable because

supporting details are included
B. A full-period projection that uses a top-
down, unsupported budget along with a fully
supported, bottom-up budget for the njearest
6-month segment of the project
C. A qualitative basis for measuring and
rewarding individual and departmental
performance
D. A basis for monitoring results according to
the plan
E. A way to examine individual components
of a budget so that management knows the
project'sstatus at all times
The method of calculating the EAC by

adding the remaining project budget
(modified by a performance factor) to the
actuals to date is used most often when the
A. Current variances are viewed as typical of
future variances
B. Project management team believes that
similar variances will not occur in the future Answer: A
C. Original estimating assumptions are no
longer reliable because conditions have
changed
D. Current variances are viewed as atypical
ones
E. Original estimating assumptions are
considered to be fundamentally flawed
The cumulative cost curve for planned and Answer: E

actual expenditures
A. Shows the cumulative expenditures for
the project
B. Is also knows as a S-curve
C. Helps to monitor project performance at a
glance
31
D. Shows the difference beeetween planned

and actual expenditures
E. All of the above
. Rebaselining may be an output of cost

control when
A. CVs are severe, and a relaistic measure
of performance is needed
B. Revised cost estimates are prepared and
distributed to stakeholders Answer: A
C. Corrective action must be taken to bring
expected future performance in linewith the
project plan
D. A and C
E. A, B, and C
. All the following statements are true about

interface, EXCEPT
A. Considered to be the most difficult aspect
of implementing the project plan
B. The process of coordinating the various
elements of the project so that they meet
their joint goals of performance, schedule,
and budget
C. The responsibility of the project manager
Answer: E
as part of the everyday task of managing the
project
D. Facilitated by use of the responsibility
assignment matrix to display the ways
people on the project interact and their duties
and responsibilities
E. Primarily concerned with the technical
issues associated with linking system
components in a configuration
. The input to project initiation consists of Answer: E

A. The product or service description
B. The company's strategic plan
32
C. The project selection criteria

D. Historical data
E. All of the above
. The subdivision of major project

deliverables, as identified in the scope
statement, into
smaller, more manageable components is
called: Answer: b
a. parametric estimation.
b. scope definition.
c. feasibility analysis.
d. benefitcost analysis.
. The process of establishing clear and

achievable objectives, measuring their
achievement,
and adjusting performance in accordance
with the results of the measurement is called: Answer: c
a. strategic planning.
b. alternative objectives inventory.
c. management by objectives.
d. contingency planning.
. A fundamental tenet of modern quality

management holds that quality is most likely
to be
achieved by:
Answer: a
a. planning it into the project.
b. developing final inspections for quality.
c. striving to do the best job possible.
d. conducting quality circle activities.
The timephased budget that will be used to Answer: c

measure and monitor cost performance in
the
project is called the:
a. work breakdown structure.
33
b. project schedule.
c. cost baseline.
d. cost budget.
At XYZ Inc., the hourly wage for semiskilled

workers is $14.00. The annual audit shows
that fringe benefits cost 30% of basic wages,
and that overhead costs are 60% of wages
plus
fringe benefits. What is the ``loaded'' hourly Answer: c
wage for a semiskilled worker at XYZ Inc.?
a. $22.40.
b. $26.60.
c. $29.12.
d. $30.33.
When there is uncertainty associated with

one or more aspects of the project, one of
the first
steps to take is to:
Answer: d
a. revise project plan.
b. conduct a riskbenefit analysis.
c. conduct a needs analysis.
d. increase the estimated cost.
A narrative description of products or

services to be supplied under contract is
called:
a. the project plan. Answer: b
b. a statement of work.
c. an exception report.
d. Pareto analysis.
. An example of scope verification is: Answer: a

a. reviewing the performance of an installed
software module.
b. managing changes to the project
schedule.
34
c. decomposing the WBS to a work package

level.
d. performing a benefit/cost analysis to
determine if the project should proceed.
All of the following are examples of a source

of scope change except:
a. a variation in government regulations.
b. failure to include a required feature in the
design of a telecommunication system. Answer: c
c. discovering a need to engage in bottomup
cost estimating.
d. introducing technology that was not
available when scope was originally defined.
Learning curve theory emphasizes that in

producing many goods:
a. cost decreases as production rates
increase.
b. average unit cost decreases as more units
Answer: b
are produced.
c. materials become cheaper when they are
purchased in bulk.
d. laborers become more productive
because of technological advances.
Adjusting resources applied to maintain

constant resource loading is called:
a. floating.
Answer: b
b. leveling.
c. restructuring.
d. crashing.
Configuration management is: Answer: a

a. used to ensure that the description of the
product is correct and complete.
b. the creation of the work breakdown
structure.
35
c. the set of procedures developed to assure

that project design criteria are met.
d. a mechanism to track budget and
schedule variances.
The type of contract that transfers most of

the cost risk to the seller is:
a. cost plus award fee.
Answer: d
b. fixed incentive fee.
c. cost plus fixed fee.
d. fixed price.
It is critical for your company to offer its

products on the Internet to increase its
market
share. The company has no previous
experience in this area, but it believes that
knowledge
is needed rapidly. As you have shown an
Answer: b
interest in the Internet, you are asked to start
planning for this project. The first step to take
as you begin planning is to:
a. identify the risks.
b. plan the scope.
c. prepare a schedule.
d. negotiate a budget.
Given the information in the following table, Answer: d

what is the expected value from this risk
event?
<table>
<tr><th> Probability <th> Result
<tr><td> .4 <td> 10,000
<tr><td> .3 <td> 7,500
<tr><td> .2 <td> 5,000
<tr><td> .1 <td> +2,500
</table>
a. 10,000.
36
b. 7,500.
c. + 2,500.
d. 7,000.
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 Answer: b
by the
buyer is most likely to cause problems for the
project?
a. starting partial payments for work
accomplished.
b. adhering to the contract and making no
early payments.
c. paying for all work accomplished to date
only.
d. demanding penalty free options to make
early payments.
To be successful, negotiating must be

conducted in an atmosphere of:
a. flexibility and understanding.
Answer: c
b. sincerity and thoughtfulness.
c. mutual respect and cooperation.
d. sincerity and prudent caution.
Inputs to cost budgeting include all of the Answer: a

following except:
a. cost baseline.
37
b. cost estimates.
c. work breakdown structure.
d. project schedule.
A precise description of a deliverable

includes a:
a. specification.
Answer: a
b. baseline.
c. work package.
d. WBS element.
. Theory X management is based upon an

assumption that:
a. quality improvements lie in the hands of
quality circles.
b. profits are tied to meeting the project's
Answer: d
baseline milestones.
c. absenteeism is tied to poor working
conditions.
d. workers are inherently unmotivated and
need strong guidance
All of the following are characteristics of

parametric estimating except:
a. historical data inputs.
Answer: d
b. quantifiable relationships.
c. scalable calculations.
d. international standards.
Of the following estimates, which most

accurately reflect the actual cost of the
project?
a. bottomup estimates. Answer: a
b. order of magnitude estimates.
c. preliminary estimates.
d. conceptual estimates.
. Including a contingency reserve in the Answer: c

38
project budget is intended to:

a. reduce the probability of scope changes.
b. increase the effectiveness of scope
controls.
c. reduce the probability of a cost overrun.
d. increase the effectiveness of cost controls.
. Cost control outputs include all of the

following except:
a. estimate at completion.
Answer: d
b. budget updates.
c. revised cost estimates.
d. cost baseline.
Pareto analysis, cause and effect diagrams,

and flow charts are tools used in quality:
a. control.
Answer: a
b. assurance.
c. planning.
d. verification.
Constrained optimization methods of project

selection typically include:
a. scoring models for procurement.
b. benefitcost ratios for finance. Answer: c
c. multiobjective programming algorithms.
d. subjective computerbased simulation
analysis.
Activity duration estimate inputs include all of

the following except:
a. resource requirements.
Answer: b
b. basis of estimates.
c. activity lists.
d. constraints.
Risk response development is intended to: Answer: b

a. create steps to identify project risks.
39
b. formulate strategies for dealing with

events.
c. document lessons learned from project
risks.
d. develop measures to quantify project
risks.
. Inputs for project initiation include all of the

following except:
a. a product description.
Answer: c
b. strategic plans.
c. a project charter.
d. selection criteria.
As part of the contract closeout, project

management should document the:
a. statement of work.
Answer: c
b. payment schedules.
c. formal acceptance.
d. change control process.
The process of performance reporting

includes all of the following except:
a. status reporting.
Answer: d
b. progress reporting.
c. forecasting.
d. product analysis.
Constructive team roles include:

a. investigator, clarifier, and closer.
b. compromiser, blocker, and closer. Answer: c
c. initiator, encourager, and gatekeeper.
d. investigator, recognizer, and summarizer.
Which of the following statements Answer: d

concerning contract type is correct?
a. fixed price contracts offer buyers the
highest potential risk.
40
b. cost reimbursable contracts offer buyers

the lowest potential risk.
c. fixed price contracts are illegal in most
regulated industries.
d. lump sum contracts offer sellers the
highest potential risk.
A Work Breakdown Structure numbering

system should allow project staff to:
a. identify the level at which individual WBS
elements are found.
Answer: a
b. identify configuration management
milestones.
c. estimate the costs of WBS elements.
d. provide project justification.
All of the following are true quality

statements except:
a. Computeraided design systems can
improve quality, but only at the expense of
an increase in the cost of design.
b. Project quality management must address
both management of the project and the
Answer: a
product of the project.
c. Recognition of key actions required of
each team member is necessary to meet
quality objectives.
d. Quality improvement depends upon better
definition and increased awareness of
the requirements/specifications.
A project was estimated to cost $1.5 million Answer: a

and scheduled to last six months. After three
months, the earned value analysis shows the
following: EV = $650,000, PV = $750,000,
and
AC = $800,000. The schedule and cost
variances are:
41
a. SV = $100,000 / CV = $150,000.
b. SV = $50,000 / CV = +$150,000.
c. SV = +$100,000 / CV = +$150,000.
d. SV = +$150,000 / CV = $100,000.
A precise summary of a physical item,

procedure, or service for implementation of
an item
or service is called a:
Answer: c
a. work package.
b. baseline description.
c. product description.
d. work breakdown structure.
All of the following are examples of tools

often used in cost estimating except:
a. parametric modeling.
Answer: b
b. duration estimating.
c. bottomup estimating.
d. analogous estimating.
The most crucial time for project risk

assessment is:
a. when a problem surfaces.
Answer: b
b. during the planning phase.
c. during the closeout phase.
d. after the schedule is published.
Inputs used during scope planning include all

of the following except:
a. constraints.
Answer: c
b. project charter.
c. budget/cost analysis.
d. product description.
A scope statement is important because it: Answer: a

a. provides the basis for making future
project decisions.
42
b. provides an executive summary of the

project for sponsors.
c. documents approval of the project for the
stakeholders.
d. provided criteria for measuring total
project cost.
The major processes for project integration

management are project plan development:
a. project plan execution, and scope change
control.
b. project plan execution, and overall change
Answer: b
control.
c. overall change control, and scope change
control.
d. project initiation, and overall change
control.
A project's payback period ends when:

a. maximum profit for that period is realized.
b. total project costs are minimized.
c. total monthly revenue equals total monthly Answer: d
costs.
d. cumulative revenue equals cumulative
costs.
A project should be terminated for all of the

following reasons except:
a. lack of team synergy necessary to achieve
top quality.
b. the project no longer meets the company's
Answer: a
objectives.
c. the resources are not available to
complete project activities.
d. project funding has been significantly
reduced.
The decomposition process is a technique Answer: d

43
used to construct a:
a. precedence network diagram.
b. critical path analysis.
c. cost variance analysis.
d. work breakdown structure.
The first topic to address in a project kickoff

meeting is:
a. roles and responsibilities.
Answer: a
b. resource plans and schedules.
c. project plans and budgets.
d. project scope and schedules.
Inputs into overall change control include all

of the following except:
a. project plan.
Answer: c
b. change requests.
c. change control system.
d. performance reports.
A project schedule completion date will

change if:
a. the critical path is shortened.
Answer: a
b. contingency funds are used.
c. float time is allocated too late.
d. project resources are added early.
Risk quantification includes:

a. subtotaling internal and external events.
b. identifying potential risks and impact.
Answer: c
c. evaluating event probability and impact.
d. developing contingency plans and
resources.
The most common sequence for risk Answer: a

management activities is risk identification, :
a. risk quantification, and risk response
development.
44
b. risk response assessment, and risk

planning.
c. risk mitigation, and risk management.
d. risk elimination, and risk mitigation.
The objective of fast tracking a project is to:

a. increase productivity.
b. reduce project duration. Answer: b
c. accelerate cost tracking.
d. mitigate project risks.
Complex projects, involving crossdisciplinary

efforts, are most effectively managed by a:
a. projectized organization.
Answer: c
b. functional organization.
c. strong matrix organization.
d. strong virtual organization.
You've been engaged to manage a project

with an estimated cost of $1,000,000 that
has been
publicly approved by the project's sponsor.
Your earned value calculations indicate that
the
project will be completed on time and under
budget by $200,000. Based on this
calculation,
your personal profit will decrease by $2,000. Answer: d
You should plan to:
a. invoice for the full amount because the
budget has been made public.
b. add features to improve the quality without
exceeding the public budget.
c. inform the enduser that you can add
features without exceeding the budget.
d. inform the project sponsor of the projected
financial outcomes.
45
. One common way to compute estimated at

completion (EAC) is to take the project
budgetedatcompletion and:
a. divide it by the schedule performance
index. Answer: d
b. multiply it by the schedule performance
index.
c. multiply it by the cost performance.
d. divide it by the cost performance index.
Project sponsors have the greatest influence

on the scope, quality, time, and cost of the
project during the:
a. concept phase. Answer: a
b. development phase.
c. execution phase.
d. closeout phase.
Ideally, communication between the project

manager and the project team members
should
take place:
Answer: c
a. via daily or weekly status reports.
b. through approved template forms.
c. by written and oral communication.
d. through the formal chain of command.
During the project scope planning process,

the work breakdown structure should be
developed to:
a. the subproject levels by phase. Answer: c
b. the levels determined by the project office.
c. levels allowing for adequate estimates.
d. cost center levels for budgeting.
Responses to risk threats include all of the Answer: d

following except:
a. avoidance.
46
b. acceptance.
c. mitigation.
d. rejection.
To learn who has approval authority for

revisions in scope, a project manager
should:
a. refer to the resource assignment matrix. Answer: b
b. refer to the change control plan.
c. review the original project charter.
d. request a copy of the organization chart.
A purchase order represents a:

a. cash outflow.
b. project expense. Answer: c
c. commitment.
d. capital investment.
. The process of determining how a risk

event will affect the project schedule is called
risk:
a. identification. Answer: d
b. mitigation.
c. simulation.
d. assessment.
Conflict resolution techniques that may be

used on a project include:
a. compromising, directing, and withdrawing.
b. compromising, smoothing, and Answer: d
withdrawing.
c. confronting, directing, and smoothing.
d. confronting, smoothing, and withdrawing.
. Risk identification outputs include the Answer: b

following except:
a. risk triggers.
b. decision trees.
47
c. inputs to other processes.

d. risk events.
Configuration management is a technique

for:
a. overall change control.
Answer: a
b. project plan execution.
c. scope planning.
d. risk quantification.
A key activity for achieving customer

satisfaction is to define customer:
a. benefits.
Answer: b
b. requirements.
c. feedback.
d. preferences.
Your project is behind schedule due to

conflict among team members. After
resolving the
conflict, you should consider:
Answer: d
a. leveling the resources.
b. reducing resource loads.
c. reassigning resources.
d. crashing the schedule.
When it appears that a design error will

interfere with meeting technical performance
objectives, the preferred response is to:
a. develop a new Work Breakdown
Structure.
Answer: b
b. develop alternative solutions to the
problem.
c. update the costs to set a new project
baseline.
d. notify all project stakeholders of the error.
Your most recent project status report Answer: d

48
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.
All of the following are contract types except:

a. costreimbursable.
b. arbitrationbased. Answer: b
c. time and material.
d. fixedprice.
. The disorientation experienced by

individuals who suddenly find themselves
living and
working in an unfamiliar environment is
known as: Answer: a
a. culture shock.
b. sociocentrism.
c. cultural bias.
d. ethnocentrism.
A detailed project schedule can be created

only after
a. A project plan is created
Answer: b
b. A WBS is created
c. A budget is created
d. A project control plan is created
Which of the following is not part of the

team's stakeholder management effort?
a. Give them extras
Answer: a
b. Identify them
c. Determine their needs and expectations
d. Manage their expectations
49
In a projectized organization, the project

team
a. Reports to many bosses
Answer: d
b. Has loyalty to the project
c. Will not always have a home
d. B & c
When it comes to changes, the project

manager's attention is best spent on
a. Handling changes when they come to light
Answer: d
b. Recording changes
c. Letting management know about changes
d. Preventing unnecessary changes
A work authorization system is used to

a. Control who does each task
b. Control gold platting
c. Let management know what tasks are Answer: b
planned
d. Let functional managers know what tasks
are planned
During the execution of a project the project

manager determines that a change is
needed to material purchased for the project.
The project manager calls a meeting of their
team to plan how to make the change. This
Answer: b
is an example of
a. Management by objectives
b. Lack of a change control system
c. Good team relations
d. Lack of a clear WBS
You are a new project manager who has Answer: c

never managed a project before and are
asked to plan a new project. It would be best
in this situation to rely on _______ during
planning in order to improve your chance of
50
success?
a. Your intuition
b. Your training
c. Historical records
d. Responsibility charts
. A project manager discovers during

planning that part of the scope of work is
undefined. They should
a. Continue to plan the project because the
scope of work is not ready
Answer: b
b. Do what they can to get the scope of work
defined
c. Wait until the scope of work is defined and
issue a change to the project
d. Complain to the management
Linear programming is an example of what

type of project selection criteria?
a. Constrained optimization
Answer: a
b. Comparative approach
c. Benefit measurement
d. Impact analysis
A WBS numbering system should allow

project staff to
a. Estimate costs of WBS elements
b. Provide project justification Answer: c
c. Identify the level at which individual WBS
elements are found
d. Use it in project management software
. A chief characteristic of the Delphi

technique is
a. Extrapolation from historical data
Answer: b
b. Intuitive expert opinion
c. Analytical hierarchy process
d. A guess
51
. During a project team meeting a team

member suggests an enhancement to the
scope of the work that is beyond the scope
of the project charter. The project manager
points out that the team needs to
concentrate on completing all the work and Answer: b
only the work required. This is an example of
a. Domineering behavior
b. Scope management
c. Project charter
d. Scope decomposition
. Management by objectives works only if

a. It is supported by management
b. The rules are written down
Answer: a
c. The project does not impact the objectives
d. The project includes the objectives in the
charter
In order to manage a project effectively, work

should be broken down into small pieces.
Which of the following does not describe how
far each task should be broken down?
Answer: c
a. Can be completed in under 80 hours
b. Cannot be logically subdivided further
c. Is done by one person
d. Can be realistically estimated
Contains detailed descriptions of work

packages?
a. WBS dictionaries
Answer: a
b. Scope of work
c. Budget estimates
d. Cost estimates
Which of the following estimating methods Answer: c

does not use dummies?
a. PERT
52
b. CPM
c. PDM
d. Detailed
Which of the
following is not
TRUE?
a. CPM uses
most likely time
estimate
b. PERT is
superior to CPM
because it
requires three
time estimates Answer: d
per task
c. PERT provides
an optimistic,
pessimistic and
most likely
estimate for each
task
d. PERT Formula
for variance of a
task is (P-O)/6
Due to the cost overruns, Diane Answer: A

has sent a status report to the CEO
of her company. Assuming he
reads it, she can expect him to
remember what percent of the
report?
A. 73% to 77%
B. 23% to 27%
C. -25% to 75%
D. 85%
53
E. 50%
Which of the following methods to

resolve conflict is most likely to
create a "wounded warrior"?
A. Forcing
Answer: D
B. Compromising
C. Accommodation
D. Avoidance
E. Coercion
Decoder" is not synonymous with

"receiver" because
A. the decoder interprets based on
his or her frame of reference
B. the decoder is not a position on
the team
Answer: E
C. the decoder evaluates, uses
assumptions and self-interest while
the receiver sees or hears
D. the decoder uses skills and
credibility to challenge the encoder
E. a and c
People generally remember __ %

of the spoken word in 1-2 days and
__ % in 2 months.
A. +50, +75
Answer: B
B. +50, +25
C. +75, -25
D. +25, -10
E. +10, -5
In a simple, interactive, one-on-one Answer: D

communication process, there are
the sender and receiver of
information. The sender is the one
who transmits the signals, while the
54
receiver ________ the signals.

A. accepts
B. mixes
C. rejects
D. interprets [PMBOK p. H-2]
E. intercepts
The communication process must

have a medium to convey
information between two or more
parties. The three common media
are ________.
Answer: B
A. written, spoken, and signalized
B. visual, audio, and tactile
C. seeing, talking, and listening
D. seeing, listening, and touching
Communications between two Answer: C

individuals can be affected by
either the attitude of either party or
an external source disrupting the
flow of information. An example of
a barrier between the parties
involved in verbal communications
and an example of a disruptive
influence could be ________.
A. a wall between desks and a
difference in language skills
B. a third party injecting comments
and a fourth party attempting to
change the subject
C. an attitude of hostility by the
receiver or sender and a ringing
telephone nearby
D. a confrontation over schedules
and a lack of a scheduling tool
E. an excessive spatial distance
55
between the individuals and one of

the individuals has a hearing loss
Of the five basic approaches to

conflict resolution that characterize
an individual's human resource
management style, the one that
produces a "win-lose" outcome
whereby the project manager uses
his/her power to overrule the
Answer: D
participant in the conflict is
________.
A. confrontation
B. compromise
C. smoothing
D. forcing
E. withdrawal
Management styles affect the Answer: E

confidence level given a project
manager by subordinates, peers,
and superiors. When a project
manager is judicial in his/her
management style, s/he is
________ .
A. honest, sincere, able to motivate
and to press for the best and fairest
solution, and one who generally
goes "by the books"
B. marked by an eagerness to fight
or be disagreeable over any given
situation
C. encouraging subordinates to
realize their full potential, cultivates
team spirit, and lets subordinates
know that good work will be
rewarded
D. one who tends to break apart
56
the unity of the group by agitating

and causing disorder on a project
E. one who exercises sound
judgment in most areas of the
project
ommunications between individuals

while talking may also involve
nonverbal communications, or body
language. Body language is most
commonly associated with
________. Answer: B
A. twisting and shrugging
B. gestures and facial expressions
C. toe tapping and foot shuffling
D. dancing and waltzing
E. pointing and smiling
In negotiations, there are always

ongoing communications in an
attempt to reach a position that is
mutually agreeable to all parties.
One means (facilitator) of
communication during the
negotiation phase is to ________. Answer: E
A. obtain written concurrence at the
end of each session
B. be calm, poised, and patient
C. use surprise as required
D. not be afraid to say no
E. all of the above
Communication includes Answer: B

understanding the other person
and reaching a consensus as to
what was said. The use of
________ is a means of giving
feedback to the speaker by
57
rephrasing the speaker's words to

ensure there is a level of
understanding.
A. give-back
B. active listening
C. double talk
D. double speak
E. double entendre
Communications between the

project manager and a team
member take many forms, but it
would not include a ________.
A. memorandum announcing a
meeting of the team
B. letter of commendation to a
Answer: D
team member
C. performance appraisal for a
team member
D. newsletter article reviewing the
project's progress
E. counseling session for a team
member
In face-to-face communications, Answer: B

individuals send two messages
when they speak. The two
message aspects are content and
command. The first contains that
part of the message about which
two or more persons can agree,
and the second contains
________.
A. that portion that is intentionally
meant to be misunderstood
B. that portion that imposes
behavior and the relationship
between the parties
58
C. inferences as to future
messages to be sent
D. reinforcement of prior messages
E. random information that does
not contribute to the message
content
Barriers to communication can be

invisible to the casual observer but
can often be greater obstacles than
physical barriers. However, barriers
do not include ________.
A. semantic ordinates, or absolute
words Answer: D
B. differences in frames of
reference
C. lack of credibility or trust
D. an overly technical approach to
communicating
E. perceived status difference
Team members may "filter" Answer: E

information to the project manager
for several reasons. Filtering, a
selective reduction in the quantity
and quality of information, is
promoted through all of the
following except when the team
member ________.
A. does not believe the information
to be important
B. receives an adverse reaction
when "bad news" is given
C. fails to understand the
information in the context given
D. summarizes to save reporting
time
E. takes too long in obtaining the
59
correct information
The factors of the structural

environment can be manipulated
(positively and negatively) to
improve or degrade the effective
communications within a project
team. Of the following factors, the
one that can be manipulated the
Answer: C
most to change the level of
communications is ________.
A. mobility opportunity
B. status
C. organizational climate
D. autonomy
E. security
Project managers must strive to

improve communications within the
project team as well as with
external elements. The project
manager can improve
communications by removing
________ of the information.
Answer: B
A. delays, impediments, and
barriers
B. filtering, distortion, and blockage
C. haste, waste, and redundancy
D. pushing, pulling, and putting
aside
The most basic model for the Answer: D

communication process consists of
three basic elements ________.
When these three elements are
present, communication may result.
A. words, illustrations, and
60
mathematics
B. people, transmission medium,
and information processor
C. verbal, nonverbal, and physical
D. sender, receiver, and message
E. common language, physical
means, and common
understanding
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
Answer: E
following but ________.
A. culture
B. behavior
C. language
D. traditional way of doing things
E. loud talking
In the project environment, there

are four general categories of
communication formal written,
informal written, formal verbal, and
informal verbal. Of the following,
the one that is not an example of
formal written communication is a Answer: D
________.
A. project charter
B. project budget
C. project management plan
D. project engineer's notes
E. project schedule
To ensure a team member Answer: A

understands the work to be
61
accomplished, the project manager

may be more assured of the
effectiveness of his/her
communication by ________.
A. obtaining feedback and
evaluating the end result of the
work
B. restating the directive and
asking for a commitment
C. restating the directive and using
active listening
D. using active listening and
obtaining feedback
E. emphasizing the importance of
the work and restating the directive
Communication to a group in a
meeting multiplies the potential for
misunderstanding unless the
structure is maintained. One major
communication consideration in
obtaining an understanding and
commitment is that ________.
A. objectives may not be realistic
B. starting the meeting before all
participants arrive ensures some
people do not have all the Answer: D
information
C. asking for additional comments
on a subject only increases the
amount of information to be
processed
D. silence on a matter does not
ensure communication
E. addressing only one item at a
time does not provide all related
information to be processed
62
Meeting management facilitates the

communication of information
between individuals. A legitimate
reason for assembling the project
team in a meeting includes
________.
A. impressing everyone with the
project manager's power
B. providing an opportunity for
individuals to discuss personal Answer: C
grievances
C. presenting project information
and making a decision on project
direction
D. giving the team a chance to talk
about its experience
E. forcing a decision out of the
team because any outcome is
going to be unfavorable
The project manager has three

primary interests who need
information and are involved in the
project's success. These are the
________.
A. customer, project team, and
project sponsor/boss
B. customer, client, and project Answer: A
team
C. client, financial department, and
functional departments
D. project team, project matrix
workers, and subcontractors
E. vendors, subcontractors, and
prime contractors
The project manager must maintain Answer: C

an effective communication link
63
with the customer to ensure the

customer's satisfaction with the
progress of the project. The project
manager maintains this link through
________.
A. subordinates, project team
members, and the project sponsor
B. the telephone, facsimile, and
data transmission
C. periodic project reports, periodic
visits to the customer, and
telephonic exchanges
D. one-time reports, weekly
reports, and monthly reports
E. cost data, schedule data, and
performance data
The project manager schedules a

quarterly technical review with the
customer to assure him/her that the
project is progressing as planned.
The project manager plans a series
of briefings on the cost, schedule,
and technical aspects of the project
that should be presented by
Answer: B
________.
A. the project manager
himself/herself
B. team members knowledgeable
of the areas
C. the customer
D. the functional departments
Suppose the project manager is Answer: D

appointed to manage a new project
that has just been given approval to
start the planning requirements.
64
The project manager is new to the

organization and has inherited a
project team previously selected by
top management. The best method
of initiating the communication
process with the team and to
establish the expectations of the
project team is to ________.
A. send a formal memorandum to
each team member to outline the
objectives, the requirements of the
team, and the time frame for work
B. personally talk to each team
member to determine what he/she
would like to do on the project and
how that can be accommodated
C. call a briefing session to set
objectives of the management and
direct how these objectives will be
met
D. call a kickoff meeting to present
the objectives and open the floor
for discussion on how the
objectives will be achieved
E. prepare a work assignment list
and send a copy to each individual
tasked with accomplishing a
planning task
In the project environment, it is Answer: E

helpful to publish a formal
document showing the chain of
communications. This document's
greatest contribution to the project
is to ________.
A. limit the authority of staff
members on matters that are the
prerogative of the project manager
65
B. define who can talk to whom

within the project so effective
communications can be conducted
C. prevent senior management
from "legally" asking questions of
the lower-level staff members
D. define the project manager's
communication authority and
responsibilities
E. protect staff members from
extraneous requests and directions
The project environment is always

in need of effective communication
for individuals to exchange and
understand information. When
everyone is permitted to talk to
anyone, essential communication
________.
A. can take the shortest route from
the sender to the person needing
the information
B. is lost in many informal
discussions and most often is
never delivered to the intended
Answer: A
receiver
C. takes as much as three times
longer than when formal
communication channels are
followed
D. changes the context in which
complex issues are delivered as
compared to formal written
communications
E. becomes nonessential
communication because of the lack
of emphasis given to the verbal
message
66
The customer-project manager

relations are perhaps the most
important aspect to the successful
implementation of the project work
because ________.
A. the customer is always right in
defining the contract
B. the customer doesn't understand
project management and must be
Answer: C
continually tutored in the practices
C. the words in the contract often
do not convey the precise meaning
of the requirements
D. the project manager's
performance evaluation is based
on the relationship with the
customer
The project manager must

communicate with several different
people in the course of managing
the project. His/her sole purpose
for sending a message is to
________.
A. impress upon the receiver the
importance of the project manager Answer: C
B. convey words that have a
motivating impact on the receiver
C. convey information or an action
D. convey an image of positive
progress for the project
E. convey a desire or want for the
project
Project managers must write Answer: C

correspondence to many individual
parties who are project
67
stakeholders. The most important

aspect of the project manager's
correspondence is to ensure
________.
A. the grammar is correct
B. the format is correct for the
message
C. the message is clearly conveyed
D. the delivery of the message is
made within 24 hours
E. the completeness of the
sentences
The most difficult and costly type of

communication performed by the
project manager is ________.
A. the formal letter to the customer
B. the meeting or conference Answer: B
C. the technical specification
update
D. the contract modification
E. the one-on-one counseling
Meetings may be held for a number Answer: D

of different purposes and may
involve different parties. The types
of meetings may be classified as
information sharing, problem
solving, decision making, planning,
and evaluation. The definition of a
problem solving meeting might be
________.
A. organized exchange of data and
information
B. selection of a course of action
from options and alternatives
C. future options and alternatives
D. options and alternatives
68
reviewed
E. results achieved reviewed
Suppose the project manager is

called to an information meeting
with the customer and a problem is
raised. This problem has major
implications for the project
manager's company, but the
customer wants to pursue a
solution at the meeting. The project
manager should ________.
A. give the customer a range of
solutions that might be acceptable
to his/her company
B. give the customer an interim Answer: C
solution that must be approved by
his/her boss
C. collect as much information on
the problem without committing
his/her company to a solution
D. tell the customer that he/she will
not address any problems because
this is only an information
exchange meeting
E. tell the customer that the
problem is not sufficiently defined
to determine the appropriate action
Customers often attempt to resolve Answer: B

issues in meetings with the project
manager. The project manager
should anticipate the raising of
issues and be ________.
A. ready and willing to give an
immediate response
B. sensitive to all the nuances of
the issues but have a well-
69
considered answer before

responding to the customer
C. ready to deflect the issues
through persuasion and argument
D. ready to put up a good argument
before giving in
E. sensitive to the customer's
issues but refuse to respond unless
each is codified and formally
endorsed to him/her
Project communications are vital to

the success of the project meeting
its objectives. Documentation is a
form of this communication and is
often not recognized as a part of
the project. Of the following, the
one that is not a form of project Answer: D
communications is ________.
A. correspondence
B. photographs
C. handwritten memos to file
D. professional magazines
E. telephone logs
139. The project manager's time is Answer: E

limited, and the opportunity to
discuss the project elements with
the team is also limited if the
project is to be properly managed.
Therefore, the project manager
must balance his/her time for
communications by ________.
A. being reasonably available to
key team members without having
an unrestricted open-door policy
B. showing his/her interest and
concern for work progress through
70
random discussions with groups at

their work sites
C. causing relevant documents to
be prepared and issued following
any meetings
D. maintaining a written record of
all pertinent project information and
description for use by the team
E. all of the above
ffective communications between

elements of a large project
improves the probability of success
for the project through better
information exchanges. In addition
to the communication skills
required for effective
communication, communication
planning focuses primarily on
________.
A. the project team and the Answer: B
functional departments
B. the vendors, subcontractors, and
other suppliers of goods
C. the interrelationships within the
project team
D. the lines of communication and
interfaces
E. the project manager's role and
responsibility to promote
information exchange
Communicating requirements to Answer: B

project participants is the key to
establishing the basis for building a
product to "conform to the
requirements." Poor
communication is often the cause
71
of imprecise specifications that a

vendor, subcontractor, or
implementation team will be
working on. The most critical point
at which the communications have
the chance for being misinterpreted
is ________.
A. during the planning phase when
little is fully understood about the
project's requirements
B. the interface between the project
team and suppliers of services or
products
C. during close-out when all parties
are attempting to terminate
operations and move all assets
D. at meetings and conferences
when the agenda limits the
subjects to be discussed
E. all of the above
he documentation of a project is a Answer: E

form of communication even when
the document is completed and
placed in a file for future reference.
This latent form of communication
serves a purpose by recording the
facts for future use. Latent
communication is often used to
________.
A. record data for post-project
evaluations
B. state a position that is a
"minority opinion"
C. record actions of project
participants to establish a trail of
actions
D. collect bits of information that
72
will subsequently be aggregated for

decision making
E. all of the above
Closing out a project's contract is

both an intellectual (cognitive)
issue and an emotional (affective)
issue dealing with details and
attitude, respectively. The
communication needed to
effectively complete the contract
must deal with both issues.
Therefore, the project manager's
job is to communicate with the
customer to confirm the
deliverables, meet the specification
or negotiate a settlement, and Answer: E
obtain certifications while managing
the customer's emotional side in
________.
A. attitude changes toward the
project
B. loss of interest in the project
implementation
C. assigning new people to the
project
D. having key people unavailable
for consultation
E. all of the above
The major processes of project Answer: B

communications management are
A. Communications requirements,
information distribution,
performance reporting, and
administrative procedures
B. Communications planning,
information distribution,
73
performance reporting, and

administrative closure
C. Communications planning,
information distribution, progress
reporting, and response planning
D. Communications planning,
information distribution, schedule
reporting, and stakeholder analysis
E. Communications planning,
change reporting, project records,
and acceptance
The three major types of

communication are
A. Written, oral, and graphic
B. Written, oral, and visual
C. Verbal, written, and electronic Answer: C
D. Verbal, formal documentation,
and informal documentation
E. Verbal, project records, and
computerized
Communication barriers are a more Answer: A

frequent source of conflict in matrix
and projectized environments than
functional organizations for all the
following reasons EXCEPT
A. Communication is the prime
focus of an expediter type of
project manager
B. Team members are often
physically separated in a matrix or
project environment
C. There are increased numbers of
levels of authority in a matrix or
projectized environment
D. Team members are often
separated in the timing of their
74
contributions to a matrix or project

environment
E. Team members with differing
skills and backgrounds can be
asked to contribute to project
results
A communication plan details all of

the following EXCEPT
A. To whom information will flow,
and what methods will be used to
distribute various types of
information
B. What information will be
gathered, how it will be gathered,
and how often it will be gathered
Answer: D
C. Methods for accessing
information between scheduled
communications
D. All memos, correspondence,
reports, and documents related to
the project from all personnel
E. Production schedules showing
when each type of communication
will be produced
The three principal reasons for Answer: C

maintaining good document control
are
A. Timely communication,
collection of performance appraisal
data, and assuring proper disposal
of sensitive documents
B. Timely communication,
maintaining proper approvals, and
communication cost control
C. Effective communication, ability
to reconstruct why decisions were
75
made, and historical value

D. Security, change management,
and procedural documentation
E. Security, maintaining proper
approvals, and optimizing
paperwork flow
Ways to improve listening ability

include all of the following EXCEPT
A. Focusing on concepts and ideas
B. Listening to feedback
C. providing feedback Answer: D
D. Performing other activities while
the speaker is talking
E. Allowing the speaker to
complete the entire message
Communication barriers between

the sender and receiver can
include all of the following EXCEPT
A. Cultural differences
Answer: D
B. Differences in motivation
C. Unclear expectations
D. Shared assumptions
E. Environment circumstances
Statements such as "It's never

been done before" or "It will cost a
fortune" are examples of
A. Feedback
Answer: B
B. Communication blockers
C. Conflict generators
D. Forcing
E. Facilitation
The communication "expediter" of a Answer: B

project team is
A. The MIS subject matter expert
76
B. A project manager
C. A database manager
D. A project secretary
E. The project client
All of the following aid in achieving

consensus EXCEPT
A. Avoiding conflict
B. Maintaining a focus on the
problem, not each other Answer: A
C. Avoiding voting, trading, or
averaging
D. Avoiding self-oriented behavior
E. Seeking facts
Inputs to communication planning

include
A. Communications requirements,
communication technology,
constraints, and assumptions
B. Stakeholder requirements,
project logistics, and project
schedule
Answer: A
C. Stakeholder analysis,
communication barriers, and
organization structure
D. Communication requirements,
project organization chart, and
communication technology
E. Stakeholder survey, RAM, WBS,
and administrative procedures
All of the following are Answer: D

communication tools EXCEPT
A. Memos
B. Videos
C. Body Language
D. Inputting data into a
77
spreadsheet
E. Verbal circulation of a rumor
Manual filing systems, electronic

text databases, and project
management software are
examples of
A. Information distribution systems
Answer: D
B. Communications technology
C. Internal communications
systems
D. Information retrieval systems
E. Project records
Most project managers spend

about ___________ of their work
time engaged in some form of
communications
A. 10% Answer: E
B. 30%
C. 50%
D. 70%
E. 90%
All of the following are important if Answer: A

the project manager is to effectively
manage communications within the
project team EXCEPT
A. Formalizing and controlling
communication between team
members
B. Promoting harmony and trust
between team members
C. Ensuring that feedback occurs in
both directions
D. Recognizing the importance of
the interpersonal communication
network
78
E. Understanding that
communication involves both
sending and receiving messages
A "tight matrix" is an organizational

option
A. In which all team members are
brought together in one location
B. Between a weak matrix and a
strong matrix
C. In which functional managers
operate in a dual reporting Answer: A
structure reporting to both their own
departments and to the project
manager
D. In which project participants act
as a coordinated team
E. In which a functional level of
management exists
Communication is the PRIME

responsibility of a Project
A. Expediter
B. Coordinator
C. Manager in a weak matrix
Answer: A
environment
D. Manager in a strong matrix
environment
E. Manager in a projectized
environment
Communications technology Answer: C

factors include all of the following
EXCEPT
A. Expected staffing levels
B. Project length
C. Executive requirements
D. Availability of technology
79
E. Immediacy of the need for

information
The best overall effective method of

resolving conflict in a project
environment is
A. Smoothing
Answer: C
B. Withdrawal
C. Problem solving
D. Compromise
E. Confrontation
Tools and techniques for

performance reporting include all of
A. Trend analysis
B. Decision tree analysis Answer: B
C. Earned value analysis
D. Performance reviews
E. Information distribution tools and
techniques
The sender is responsible for

A. Scheduling communication
exchange
B. Ensuring the receiver agrees
with the message
C. Confirming message is Answer: C
understood
D. Presenting the message in the
most favorable manner
E. Interpreting the message
correctly
Information required to determine Answer: D

project communications
requirements typically includes all
of the following EXCEPT
80
A. Project organization and

stakeholder responsibility
relationships
B. Logistics of how many
individuals will be involved with the
project and at which locations
C. External information needs,
disciplines, departments, and
specialties involved in the project
D. The availability of technology in
place at the project location
E. Project organization and
relationship
Formal acceptance by the client or

sponsor of the product of the
project should be prepared and
distributed ______________.
A. As part of Administrative Closure
B. Following the plan as outlined in
Answer: A
Quality Management
C. As requested by upper
management
D. As part of contract close-out
E. As the last step in project
management
The four key stakeholders on every Answer: C

project are
A. Senior managers, customer,
sponsor, and functional managers
B. Project manager, project team,
senior managers, and customer
C. Project manager, customer,
performing organization and
sponsor
D. Project manager, functional
81
managers, senior managers, and

customer
E. Suppliers, contractors,
customers, and sponsors
Miscommunication, disparities in
information, and unequal access to
information are significant trust
inhibitors on teams that are not
collocated. A project manager in
this situation should
A. Be extremely clear when
communicating with team members
B. Develop a communication plan
to ensure that team members are Answer: E
kept informed of team issues
C. Keep communication flowing to
counteract the isolation of
individuals on distributed teams
D. Facilitate clear communication
by encouraging the technique of
having one person repeat what was
heard to ensure understanding
E. All of the above
To determine project Answer: E

communication requirements,
typically all the following
information is needed except
A. Stakeholders' responsibilities
and relationships with the project
organization
B. Disciplines, departments, and
specialists involved in the project
C. The number of individuals
involved in the project and their
locations
D. External communication
82
requirements
E. Project audit requirements
The first step in preparing a

presentation is to
A. Define the audience
B. Determine the objective
C. Decide on the general form of Answer: B
the presentation
D. Plan a presentation strategy
E. Assess the environment in which
the presentation will be delivered
The three project situations that

require the most negotiation skills
are
A. working with functional
managers to ensure that resources
are available to support the project,
providing performance appraisals
to project team members, and
developing the WBS
B. Developing the WBS,
determining the master schedule,
Answer: D
and managing project changes
C. Developing the project team,
WBS, and scope statement
D. Using subcontractors,
developing the project scope
statement, and managing changes
after the project is underway
E. Securing upper management
support for the project, working with
functional managers, and building
the project team
The purpose of the communication Answer: E

management plan is to provide
83
A. Detailed information on the

methods that will be used to gather
and store information
B. A description of the information
to be distributed, including its
format, content, and level of detail
and the conventions and definitions
to be used
C. A procedure to update the
communication management plan
as the project progresses
D. A and B
E. A, B, and C
Of the following qualifications,

which one is the most important for
a project manager?
A. Has supervisory experience
Answer: E
B. Is a qualified negotiator
C. Is profit oriented
D. Is educated in a technical field
E. Works well with others
All the following are objectives of

the kickoff meeting except
A. Establishing working
relationships and lines of
communication
B. Setting team goals and
objectives Answer: E
C. Reviewing project plans
D. Establishing individual and
group responsibilities and
accountabilities
E. Discussing specific legal issues
regarding the contract
When communicating with a Answer: C

84
process-oriented person, a project

manager should
A. Remain patient when the other
person digresses on arcane topics
B. Emphasize the practicality of his
or her ideas
C. Present ideas in a logical, step-
by-step manner
D. Allow for small talk, focusing on
procedural details
E. Reference his or her
recommendations to TQM
practices
Of the five tools and techniques for

performance reporting, which one
integrates cost and schedule
information as a key element of its
approach?
A. Performance reviews Answer: D
B. Variance analysis
C. Trend analysis
D. Earned value analysis
E. Information distribution tools and
techniques
The 50-50 rule of progress

reporting is used to
A. Calculate the exact BCWP
B. Provide a good statistical
approximation of BCWP Answer: B
C. Determine schedule variance
D. Determine schedule variance in
monetary terms
E. Control very large projects
The SPI, which is used to forecast Answer: D

project completion date, is
85
calculated by using which formula?

A. BCQP/ACWP
B. BCWS/BCWP
C. ACWS/BCWS
D. BCWP/BCWS
E. BCWP - BCWS
The performance measurement

baseline is the
A. BCWS
B. BCWP Answer: A
C. ACWP
D. ACWS
E. ETC
All the following are barriers to

communication except
A. Liquidated damages provisions
in fixed-price contracts
B. Difficulties with technical
language
Answer: A
C. Detrimental attitudes associated
with low compensation
D. Distracting environmental
factors
E. Lack of clear communication
channels
During the project closeout phase,

most conflict arises from
A. Schedule problems
B. Cost overruns Answer: A
C. Technical problems
D. Working interfaces
E. Personality conflicts
In general, disagreements among Answer: B

stakeholders should be resolved in
86
favor of the
A. Sponsor
B. Customer
C. Performing organization
D. Senior management
When the project team is not

collocated, establishing a way to
help team members communicate
quickly and frequently is essential.
One practical approach is to
A. Bring everyone together
frequently for meetings
Answer: B
B. Conduct informal audio-
conference meetings regularly
C. Hold a project kickoff meeting
D. Set up an electronic yearbook
that lists each team member's
accomplishments and background
E. All of the above
A project manager who wants to

create a receptive atmosphere for
communicating should
A. Ensure that all communication is
clear and understood
B. Speak or write as he/she would
like to be spoken or written to
C. Have the project team prepare a Answer: B
project communication plan
D. Ensure that team members have
the information needed to do their
work
E. Ensure that team members have
the tools available to facilitate
communication
87
The tool or technique used for

communication planning is
A. Stakeholder analysis
B. Communication skills Answer: A
C. Information retrieval systems
D. Information distribution systems
Which of the following terms

describes the strong pressures
within a group to conform to group
norms at the expense of critical and
innovative thinking?
Answer: C
A. Group oppression
B. Groupspeak
C. Groupthink
D. Groupthought
E. Groupgrope
Empathetic listening entails

understanding another person's
frame of reference. To exhibit
empathetic listening skills, a project
manager should
A. Mimic the content of the
message Answer: D
B. Probe, then evaluate the content
C. Evaluate the content, then
advise
D. Rephrase the content and reflect
the feeling
The presence of communication Answer: D

barriers is most likely to lead to
A. Reduced productivity
B. Increased hostility
C. Low morale
88
D. Increased conflict
E. Increased stress
As a project communication
management process,
administrative closeout consists of
verifying and documenting project
results to formalize acceptance of
the project product by the
customer. The output generated
from administrative closeout
activities consists of
A. Project archives, formal Answer: A
acceptance, and lessons learned
B. Change requests, project
records, and lessons learned
C. Lessons learned, performance
reports, and change requests
D. Communication management
plans, change requests, and
project archives
When communicating with an Answer: A

action-oriented person, a project
manager should
A. Be as brief as possible and
emphasize the practicality of his or
her ideas
B. Provide options, including the
pros and cons
C. Stress the relationships between
his/her proposals and the people
concerned
D. Remain patient if the other
person goes off on tangents
E. Speak as quickly as possible to
ensure that all the information is
89
conveyed
The project manager can enhance

project communication and team
building by doing all the following
except
A. Having a war room
B. Using a tight matrix Answer: C
C. Being a good communication
blocker
D. Being a communication
expediter
E. Holding effective meetings
Of the following factors, which one

has the greatest effect on the
project's communication
requirements?
A. Stakeholder responsibility
relationships Answer: D
B. External information needs
C. Availability of technology
D. The project's organizational
structure
E. Expected project staffing
Paraphrasing can be achieved by

restatement
A. In different terms
B. From general to specific terms Answer: E
C. From specific to general terms
D. In opposite terms
E. All of the above
The most common communication Answer: A

problem that occurs during
negotiation is that
A. Each side may misinterpret what
90
the other side has said

B. Each side may give up on the
other side
C. One side may try to confuse the
other side
D. One side may be too busy
thinking about what to say next to
hear what is being said
E. Either side may not be paying
attention
Which of the following is true

regarding communication within a
project environment?
A. The project manager must
assume the primary burden of
responsibility to ensure that
messages sent have been received
B. Effective meetings, a war room,
and a tight matrix promote effective Answer: B
communication
C. If a project consists of 12
people, 48 potential channels of
communication exist
D. Most project managers spend
30% of their working hours
engaged in communication
E. All of the above
Performance reports are used to Answer: B

provide information to stakeholders
on project scope, schedule, cost,
and quality. Which statement most
accurately describes this process?
A. The configuration control board
receives performance reports and
generates change requests to
modify aspects of the project
91
B. Performance reporting includes

status reports, which detail where
the project is now; progress
reports, which describe
accomplishments; and forecasts,
which predict future status and
progress
C. Performance reporting focuses
on examining earned value
analysis to determine whether cost
overruns will require budget
revisions
D. Performance reporting includes
histograms flow charts, and bar
charts to show network
dependencies and relationships
E. Performance reporting provides
variance analysis information,
which helps the project team
adhere to the zero variance
principle
The project manager who adopts

the shareholder manager
leadership style
A. Solicits little or no information
from his or her team and makes
decisions alone
B. Solicits input fro the team and
makes decisions alone
Answer: D
C. Invites team members to share
in project decision deliberations
D. Delegates decision making to
the team without much information
exchange
E. Lets the project team assume as
much leadership responsibility as it
will accept
92
All the following are examples of

informal written communication
except
A. Engineers' notes
Answer: C
B. e-Mail messages
C. The management plan
D. Memos to team members
E. Post-it notes messages
Communication planning is a
process for determining the
information and communication
needs of the
A. Stakeholders Answer: A
B. Planners
C. Contractors
D. Customer
E. Team members
The LOB Answer: D

technique is
best suited
as a
performance
reporting
technique to
A. Display a
future job to
facilitate
analysis of
the work
involved
B. Show the
customer
how various
activities
93
relate to one
another in
the
production or
development
process
C. Determine
which work
sequences
will take the
longest to
complete the
project
D. Assure the
customer
that the
articles it is
buying will be
available
when needed
E. Determine
which
sequences of
the effort
have been
positive and
which have
been
negative to
focus
attention on
areas for
improvement
In person-to-person communication, Answer: E

messages are sent on verbal levels and
nonverbal levels simultaneously. If
nonverbal cues and the spoken message
94
are incongruous, the flow of

communication is hindered. Nonverbal
communication can involve the use of
A. Physical attributes
B. Esthetic attributes
C. Signs
D. Symbols
E. All of the above
536. Which of the following tools or

techniques are used in the information
distribution process?
A. Communication management plan,
project plan, and information distribution
system
B. Information distribution system,
information retrieval system, and
Answer: C
performance reports
C. Communication skills, information
retrieval system, and information
distribution system`
D. Communication skills, work results,
and status reports
E. Performance reviews, performance
reports, and project plan
In dealing with the customer, the project Answer: B

manager should
A. Disclose information only at regular
intervals to maintain consistency
B. Strive to develop a friendly, honest,
and open relationship
C. Be honest to the extent that the
project organization is protected from
litigation
D. Try to maximize profits by encouraging
scope creep
E. Do whatever it takes to satisfy the
95
customer and win additional business
When communicating with a people-

oriented person, a project manager
should
A. Stress the uniqueness of the idea or
topic at hand
B. Stress the relationships between
his/her proposals and the people
Answer: B
concerned
C. Be precise about the value of the
ideas to overall organizational goals
D. Focus on personnel performance
issues first
E. Describe the ideas using anecdotal
evidence to support recommendations
The communication process consists of

the following components
A. Communicator
B. Message Answer: C
C. Function
D. Recipient
E. Medium
The process of conferring with others to

come to terms or reach an agreement is
called
A. Win-win
Answer: C
B. Getting to yes
C. Negotiation
D. Arbitration
E. Confrontation
The project manager has changed the Answer: C

scope without communicating the change
to the rest of the project team. The
project is now over budget. What action
96
would prevent this from happening in the

future?
A. Adjust the resource allocation
B. Improve budget estimating
C. Follow the communication plan
D. Hold more meetings
The project manager has changed the

scope without communicating the change
to the rest of the project team. The
project is now over budget. What should
the project manager do now?
A. Call the customer immediately
Answer: C
B. Analyze the impact and request more
budget
C. Analyze impact to cost and schedule,
review and implement contingency plans
D. Call a team meeting, apologize and
get a quick agreement on a solution
Lessons learned are most often based

upon a projects historical records.
Lessons learned can be used to:
a. See what mistakes have been made
previously. Answer: D
b. See how problems have been solved (Kerzner 896-900)
previously
c. Predict trends, highlight problems and
identify alternatives.
d. All of the above.
Project Closeout must ensure that the Answer: A

terms of the contract have been met. Kerzner 608-609
Documentation enables the project team
to:
a. Reflect revised or as-built conditions
b. Verify that the budget has been met.
c. Verify that no cost accounts have been
97
exceeded.
Work packages are used to :

a. Represent units of work at a level
where work is performed.
b. distinguish one package from all
others assigned to a single functional Answer: d
group.
c. Limit work to be performed to relatively
short periods of time.
Scope baseline once established and

approved is used:
a. As the basis for making future
decisions.. Answer: d
b. To accomplish verification measures.
c. To evaluate potential changes.
In preparing a good project definition,

experienced project manager will:
a. Concentrate mainly on the end
product, rather than on costs are
benefits.
b. Realize that only the tip of the iceberg
Answer: d.
may be showing. As Proj. managers,
they must get beneath it.
c. Understand that a project definition /
plan is a dynamic rather than a static
tool, and thus subject to change.
The contractual Statement of work Answer: c

(CSOW): _______________ Kerzner 583-84
a. Must be the same as the proposal
statement of work.
98
b. Does not identify reporting

requirements (ie data items)
c. Can be at a different level of detail
than the proposal's SOW
Graphical displays of accumulated costs

and labor hours, plotted as a function of
time, are called:
Answer: b
a. Variance report
(Kerzner 822)
b. S Curve
c. Trend Analysis
d. Earned value report
Mgmt plans include all of the following

except:
a. Organization of the project Answer: d
b. Job description (Kerzner 570-72)
c. Policies & Procedures
d. Scope baseline
A comprehensive definition of Scope

management would be:
a. Approval of Scope baseline
b. Approval of detailed project charter
Answer: d
c. Configuration control
d. Managing a project in terms of its
objectives thru all life cycle phases and
processes.
he degree to which a company accepts Answer: d

and utilizes project mgmt is most often
dependent upon the ___________ and
___________ of its projects.
a. Competion, dollar value
b. Type of industry, manpower
requirements.
c. Risk, quality management
99
d. size, nature
The rolling wave or moving window

advocates the use of WBS
decomposition, and is used most
frequently in the ________process.
Answer: b
a. Initiation
b. Scope definition
c. Scope planning
d. Scope reporting
The project charter and scope statement

are documents designed to tell
__________ exactly what the project
entails. Answer: d
a. The project manager (Kerzner 626)
b. Project Office
c. Project team
d. Anyone associated with the project
Using the WBS shown in 1_A034.bmp, a

typical work package would be:
a. Software development
Answer: d
b. Systems design
c. Coding
d. None of the above
Problems can occur in properly defining

a project because:
a. Plan was too loose, allowing changing
of priorities
Answer: b
b. Project goals may not be agreeable to
all parties.
c. High turnover of the project personal
d. Project objectives were quantified
15. Project Mgmt / Project planning can Answer: d

address: (Kerzner 9/97)
100
a. Long range / strategic planning (5yrs

or more)
b. Intermediate range planning ( 1 to 5
yrs)
c. Short range/ tactical planning (1 yr or
less)
d. b and c
A project Manager believes that

modifying the scope of the project may
provide added value for the customer.
The project manager should: Answer: d
a. Change the scope baseline (Kerzner 633-34)
b. Prepare a variance report
c. Change project objectives
d. Convene change control board
Researching, organizing, and recording

pertinent project information is called:
a. alternative analysis
Answer: c
b. configuration control
c. Information gathering
d. All of the above
Feasibility studies evaluate alternatives in

terms of:
a. Cost effectiveness Answer: d
b. Risk (Kerzner 578)
c. Safety
d. All or part of A thru C
The most common non-behavioural

reason for projects being completed
behind schedule and over budget is:
Answer: c
a. Wrong choice of a Proj Manager
(Kerzner 583-5)
b. Accepting high risk
c. Ill-defined requirements
d. Wrong choice of a Proj Sponsor
101
Ensuring that all work is both authorized

and funded by contractual documentation
is the responsibility of:
a. The Project Manager Answer: a
b. Functional Manager
c. Sponsor
d. All of the above
Preparation of the Scope baseline

involves the:
a. Project Manager and sponsor
Answer: d
b. Functional team
c. Project Manager and project office
d. All of the above
The major disadvantages of a bar chart

is that it:
a. Lacks time phasing
b. Cannot be related to calendar dates
Answer: c
c. Does not show activity
interrelationships
d. Cannot be related to manpower
planning
A Project element which lies between two

events is called:
a. An activity
Answer: a
b. Critical path node
c. A slack milestone
d. A timing slot
3. Mgmt. has decided to "crash" a project Answer: b

in order to avoid penalty payments for
late deliveries. Additional costs are
expected. To crash the project, either
overtime or additional resources should
be assigned to:
a. All activities
102
b. Those activities on the critical path

beginning with the longest time duration
activities.
c. Only for activities with the longest time
durations.
d. None of the above.
Time Mgmt is the allocation of time to a

project's processes of:
a. Planning
Answer: d
b. Estimating
c. Scheduling
ADM is an Activity-on-Arrow method. In

this method, a dummy activity:
a. Denotes critical path relationship.
b. shows slack. Answer: c
c. Denotes any dependency relationship.
d. Identifies customer team meeting
dates.
Using the following figure, the critical

path is ____ weeks.<br>
<img src="Balaji-time-6.gif">
a. 21
Answer: d
b. 22
c. 23
d. 24
e. 25
The major difference between PERT and Answer: e

CPM networks is:
a. They are one and the same, but they
are called different names in USA and
European Union.
b. PERT is used for IT projects, whereas
CPM is used for R&D.
103
c. PERT addresses only time whereas

CPM talks about costs and resource
availability.
d. PERT uses computer solutions,
whereas CPM is a manual technique.
e. PERT requires three time estimates,
whereas CPM requires one time
estimate.
Once a logic of a network is laid out, the

project manager will conduct a forward
pass and then a backward pass thru the
network. Doing this will provide
information on the ___________ and
identification of the _________.
a. Slack for each activity, critical path.
Answer: a
b. Slack for each activity, high risk
activities.
c. Manpower shortages, high risk
activities.
d. High risk activities, non-critical paths.
e. Manpower availability, contingency
plans.
Smoothing out resource requirements

from period to period is called resource
______________.
a. Allocation
Answer: c
b. Partitioning
c. Leveling
d. a and b
e. None of the above
Assigning resources is an attempt to find Answer: d

the shortest project schedule consistent
with fixed resource limits is called
__________________.
a. Resource Quantification.
104
b. Resource partitioning.
c. Resource leveling.
d. Resource-constrained scheduling.
e. None of the above.
In the Arrow Diagramming Method

(ADM), ________ do not consume time
or resources.
a. Events
Answer: a
b. Activities.
c. Slack Elements.
e. b and c
Increasing resources on the critical path

activities may not always shorten the
length of the project because:
a. Certain activities are time-dependent
rather than resource-dependent.
b. Safety, OSHA and EPA may have
placed restriction on the number of
people used on certain activities or in the
Answer: e
physical location of the project.
c. The skill level of the added resources
might not be appropriate for the activities
to be performed.
d. Adding more resources may create
additional work and produce
inefficiencies
e. All of the above.
Among the common types of schedules Answer: a

are Gantt charts, milestone charts, line of
balance, and :
a. Networks
b. Time-phased events.
c. Calendar-integrated activities.
d. a and c
105
e. b and c
Bar charts are most appropriate for:

a. Comparing actual to planned
performance for each activity
b. Showing slack time.
Answer: a
c. Showing critical path dependencies
d. Showing which activities can be
rearranged in parallel
e. All of the above
Using the following figure, activity D has

the latest start time of ________weeks
and latest finish time of _______
weeks.<br>
<img src="Balaji-time-15.gif">
Answer: b
a. 4,12
b. 2,10
c. 6,14
d. 7,15
e. 9,17
Normally distributed data, by definition, is

distributed evenly around the
____________.
a. Normal Value Answer: b
b. Mean value
c. Six sigma value
d. Standard Deviation
Which of the following is not a principle of

modern quality assurance?
a. Increased expenditure on inspection
Answer: a
b. Total quality control
c. The cost of quality
d. Continuous improvement
Which of the following is / are typical Answer: d

106
tools of statistical process control?

a. Pareto Analysis
b. Cause-& Effect Analysis
c. Process control Charts
d. All of the above
The specification for a particular part is

10" 0.015". The associated process
produces parts with the mean of 10" and
a standard deviation of 0.002". The
process capability index is: Answer: c
a. 0.0002
b. 1.0
c. 2.5
d. Cannot be calculated with above data.
Costs of prevention include:

a. Training
b. Supplier certification Answer: d
c. scrap
d. a & b
Good quality objectives should:

a. Be attainable and state specific
deadlines for completion /
implementation. Answer: d
b. Define specific goals
c. Be understandable
When a process is set up optimally, the Answer: d

upper and lower specification limits
typically are:
a. Set outside the upper and lower
control limits
b. Set equal to the upper and lower
control limits.
c. Set at an equal distance from the
107
mean value
d. a and c
Which of the following is true of modern

quality management?
a. Quality has become a competitive
weapon
Answer: d
b. Quality is linked with profitability on
both the market & cost sides.
c. Quality is defined by the customer.
d. All of the above are true.
Which of the following is not a part of the

generally accepted view of quality today?
a. Quality is customer focused
b. Quality can be improved thru thorough
Answer: b
inspection.
c. Improved quality saves money and
increases business.
d. All above are correct.
The cost of internal failure include:

a. Scrap
b. Rework Answer: c
c. a & b
Attributes quality data:

a. Are expressed as pass / fail or accept /
reject
b. Are quality data for which the product
or service is designed and built. Answer: d
c. Indicates management's
understanding of the concept of
variability
d. a & b
Which of the following is / are part of the Answer: d

108
criteria by which a company is evaluated

for the Malcolm Baldrige award?
a. Business Results
b. Information analysis
c. Leadership and strategic planning.
A well-written policy statement on quality

will:
a. Be a statement of how, not why.
b. Promotes consistency throughout the
organization and across projects. Answer: b
c. Provides an explanation of how
customers view quality in their
organizations.
Which of the quality gurus believed "Zero

Defects " is achievable.
a. Crosby
Answer: a
b. Taguchi
c. Juran
d. All of the above
Which of the following is / are true about

quality costs when quality management
principles are applied?
a. Prevention costs may actually rise
over time
b. Prevention costs and failure costs
Answer: d
(internal and external) are directly
related.
c. Prevention costs and failure costs
(internal and external) are inversely
related.
d. a & c
A process characteristic has a true Answer: a

109
(population) mean of 150 and a true

(population) standard deviation of 20. A
sample of 25 items is taken from this
process. The standard deviation of the
sample is :
a. 4.0
b. 0.2
c. 0.8
d. 7.5
Quality audits:
a. Are not necessary if you do it right the
first time.
b. Must be performed daily for each
Answer: d
process.
c. Are important only for technology-
oriented products
d. Are none of the above.
Which of the following is considered a

cost of prevention?
a. Rework costs
Answer: c
b. Mass inspection
c. Creating quality control charts
Which of the following is not one of

crosby's four absolutes of quality?
a. Quality is measured by the cost of
conformance.
b. Quality comes from prevention. Answer: a
c. Quality is measured by the cost of non-
conformance.
d. Quality means conformance to
requirements.
Which of the following is not one of Answer: a

crosby's four absolutes of quality?
110
a. Quality is measured by the cost of

conformance.
b. Quality comes from prevention.
c. Quality is measured by the cost of non-
conformance.
d. Quality means conformance to
requirements.
Assignable cause or special cause

variation is indicated when a:
a. Point falls outside the control limits.
b. Points falls outside the specification
limits. Answer: d
c. Run of seven or more points fall above
the centre line of a standard control
chart.
d. a & c
Which is closest to the Juran's definition

of Quality?
a. Conformance to requirements
b. Fitness for use. Answer: b
c. customer focus
d. continuous improvement of products
and services.
Quality assurance includes:

a. Planning for collection of data.
b. Completing tic charts. Answer: a
c. Inspection analysis
d. All of the above
If a project manager requires the use of a Answer: b

piece of equipment, how many days
must he rent the equipment before the
cost is equal to the total cost of leasing
the equipment for one year?
<table>
111
<tr><th>Cost <th> Renting <th> Leasing

<tr><td>Annual Maint <td> $0.00 <td>
$3000
<tr><td>Daily Operation <td> $0.00 <td>
$70
<tr><td>Daily Rental <td> $100 <td>
$0.00
</table>
a. 300 days
b. 100 days
c. 700 days
d. 30 days
Which of the following is an element of

procurement management?
a. Inspection
Answer: d
b. Purchasing & Expediting
c. Estimating
d. a & b
Which one of the following factors should

be considered in the make or buy
analysis?
a. Direct & Indirect costs
b. Possible use by other projects and /or Answer: c
operations of the asset under
consideration
c. a & b
A customer asks a contractor to develop Answer: b

a new product for the customer. The
customer knows that the contractor will
then "transfer" this knowledge to other
product lines, which may generate
substantial future revenue for the
contractor. The customer would most
likely negotiate which type of contract?
112
a. FFP
b. Cost Sharing
c. Time and material
d. Cost
Which type/s of contract/s has / have no

profit margins included.
a. Cost
Answer: d
b. Cost sharing
c. Time and material
d. a & b
Which of the following contract has the

highest technical risk to the owner?
a. Time & Material
Answer: a
b. Firm Fixed price
c. Cost plus fixed fee
The formal invitation to submit a price for

specified goods / services is usually
referred to as:
a. Request for Proposal (RFP) Answer: b
b. Request for Quotation (RFQ)
c. Bid invitation
d. a & b
A proposal kickoff meeting usually

covers:
a. Project Scope
Answer: c
b. Staffing & assignments
c. Proposal schedule
d. All of the above
Which type/s of incentive contract/s Answer: b

has/have a total price ceiling?
a. Cost plus incentive fee
b. Fixed price incentive fee
113
c. firm fixed price

d. a & c
Standardization of purchased material:

a. Reduces risk of obsolescence
b. Reduces cost of purchasing &
Answer: b
simplifies inventory control
c. Increases cost of storage.
d. a & c
Which of the following is / are associated

with a buyer's request for material to
meet a particular need?
a. Implied warranty of fitness for a
Answer: a
particular purpose.
b. Material guarantee
c. Material warranty
d. Implied warranty of salability.
Which of the following is not usually

included in the evaluation criteria of
proposals from vendors or contractors:
a. Contract price
Answer: d
b. Life cycle cost & technical merit
c. Project management approach
d. Evaluation criteria may include any or
all of the above items.
Which of the following type of

specifications gives measurable
capabilities of a product?
a. Functional specification Answer: c
b. Conformance specification
c. Performance specification
d. Process capability specification
The comprehensive review of the Answer: b

procurement process from planning thru
114
contract administration is referred to as:

a. Post project evaluation
b. Procurement audit
c. Procurement performance evaluation
d. None of the above.
Which of the following is not a part of the

contract administration?
a. Performance control
b. Financial control Answer: c
c. Contract award
d. All above is part of contract
administration.
The procurement document used to

solicit responses from potential
contractors / sellers, primarily concerning
price, is usually referred to as the:
Answer: d
a. Request for Proposal
b. Request for quotation
c. Invitation for bid
d. b or c
Which of the following is / are an

appropriate reason / s to use financial
incentives in a contract?
a. To increase overall schedule.
Answer: b
b. To reduce overall cost of the project
c. To attain the minimum performance
required by the contract.
d. All of the above
What type of contract has a "ceiling" and Answer: a

"floor" (i.e max and min values) on the
allowable profit?
a. CPIF
b. FPIF
c. T & M
115
In which of the following type of

specifications does a buyer carry most of
the performance risk:
a. Functional specification Answer: d
b. Performance specifications
c. Conformance specifications
d. Design specifications.
Which of the following is not part of the

acquisition process?
a. Invitation to bid
Answer: c
b. Contract award
c. Notice to proceed
d. Source selection
Which of the following should be

considered in the negotiation and
selection of a contract type?
a. The degree of clarity, which the end
Answer: c
product is defined.
b. Acts of god or acts of nature.
c. Price competition
d. All above except b.
The relationship between the budgeted

actual cost, actual work completed and
work planned will determine the
A. Schedule estimate at completion
Answer: A
B. Cost estimate at completion
C. Cost Performance Index
D. Schedule Performance Index
E. both a and b
All work packages are complete Answer: B

A. at EAC time
B. when BAC is equal to EAC
116
C. when BCWP intersects BCWS

D. when schedule variance is zero
E. c and d
Earned value is
A. the base line plan
B. completed work value
Answer: B
C. cost/cost variance
D. percent over or under budget
E. a and b
You could tell Diane was worried about

her project. Her folks had been working
on the project since Independence Day.
Here it was already Halloween and they
were just finishing up work that was
supposed to have been completed by
Labor Day. "Oh dear", she confided to
her friend, "Instead of completing by Answer: E
Christmas, at this rate I expect we won't
be done until
A. New Year's Day
B. St. Patrick's Day
C. Easter
D. Mother's Day
E. the 4th of July
Diane was so concerned about her

project that she woke up dreaming about
it. She thought to herself, "Well, our
BCWP is 2, our ACWP is 4 and our
BCWS is 6, so that means
Answer: E
A. our productivity was less than planned
B. our cost estimate at completion is 6
C. our CPI and SPI are both positive
D. our cost variance is negative
E. a, c and d
117
The measurement which best shows the

difference between actual work and
actual costs is
A. Cost variance
Answer: A
B. Percent over or under
C. Schedule variance
D. CPI
E. this is not a valid measurement
Rework costs ____ times budgeted

costs.
A. +75, -25
B. +25, -10 Answer: E
C. 85
D. 10 to 15
E. 25 to 50
If part of a project's costs will be paid in

future years, the best way to determine
the value of those costs in today's dollars
is
A. estimated project payout Answer: D
B. return on investment
C. net present value
D. discounted cash flow
E. internal rate of return
If the ACWP exceeds the BCWP, the cost

estimate at completion will
A. increase
B. decrease
Answer: A
C. depend on the BCWS
D. exceed the schedule estimate at
completion
E. a and d
If the BCWS = $1,000,000, the BAC = Answer: C

$2,000,000, the ACWP = $1,500,000, the
118
BCWP = $500,000 and you're halfway

through the project after two years, what
is the cost estimate at completion?
A. $2,000,000
B. $4,000,000
C. $6,000,000
D. $8,000,000
E. Cannot be determined without the
EAC
Cost management requires a critical look

at future expenditures and the controls
exercised over those expenditures. The
three types of cost estimates through
which project expenditures are made are
________.
A. rough order of magnitude, guestimate,
Answer: C
and actual
B. traditional, classical, and
contemporary
C. order of magnitude, budget, and
definitive
D. concept, budget, and design
E. engineering, quoted, and definitive
The cost estimate with the most precise

estimate (i.e., the smallest range of error)
is the ________ estimate.
A. engineering
Answer: D
B. budget
C. concept
D. definitive
E. contingency
The cost estimate that has a range for Answer: A

error of minus 10 percent to plus 25
percent is the ________ estimate.
A. budget
119
B. definitive
C. parametric
D. analogy
E. contingency
There are usually two types of reserves

in a project's budget. The ________
reserve is for cost variances from the
plan because of inaccurate estimates or
pricing and costs overruns, while the
________ is to accommodate costs for
project work that were not included in the
Answer: C
plan through error or oversight.
A. project; budget overrun allowance
B. engineering; management allowance
C. management; contingency allowance
D. management; mismanagement
allowance
E. planned; unplanned work allowance
Feasibility studies are evaluations of both

the technical and economic aspects of a
potential project. In the economic area,
one would look at such items as interest
rates, present worth factors,
capitalization costs, and ________. Answer: B
A. human resource skills
B. depreciation costs
C. prospective projects managers
D. implementation of cost controls
E. availability of cost accounting methods
Project financing can be extremely Answer: D

complex and can come from a variety of
sources. However, ________ is not a
potential source of financing for a project.
A. borrowing money from a bank
B. selling stocks in the project or
120
corporation
C. selling bonds on the project
D. selling lottery tickets on the project
E. leasing or renting existing property to
another
Life cycle costing is a concept whereby

all costs for a system are computed to
determine the total cost of ownership.
Life cycle cost categories include
________.
A. purchase, repair, and operation Answer: B
B. development, procurement, and
operation/maintenance
C. procurement, lease, and disposal
D. procurement, operation, and disposal
E. operation, maintenance, and storage
The integration of cost and schedule to Answer: C

provide measures of the project's
performance is the earned value system,
or contract performance measurement.
The baseline for the earned value system
is depicted as a slight "S" curve because
________.
A. there are fewer costs at project
initiation until the work force is fully
staffed
B. there are workers who have not been
paid, so the expense is not shown on the
chart
C. there are more expenses to get a
project started than are required on a
normal operating basis
D. this is just a traditional method of
plotting the costs and has no relationship
to the actual expenditures
E. this approximation has proven to be
121
nearly correct when all costs and

expenditures have been accounted for at
project completion
The pricing of a project can be extremely

complex in the development of valid cost
estimates and price quotes from vendors.
The tool that facilitates the pricing of a
project by a structured decomposition of
the total into individual elements of labor,
material, and equipment is the Answer: E
________.
A. project management plan
B. budget
C. responsibility matrix
D. configuration management plan
E. work breakdown structure
In estimating the cost of work, the best

source of cost information can be
obtained from the ________.
A. customer
Answer: B
B. historical records
C. senior engineers
D. top management
E. independent consultants
Setting up a cost control system requires

matching the work packages to the cost
accounting system. The direct mapping
of the work packages to the accounting is
accomplished by establishing a
________. Answer: E
A. work package cost/price
B. work breakdown structure element
C. cost correlation matrix
D. computer coded bar chart
E. code of accounts
122
Cost overruns on a project have major

impacts on the profitability of operations,
but ________ do(es) not necessarily
contribute to cost overruns of a project
budget.
A. a change in contract scope
Answer: A
B. delays in schedule
C. lack of work force experience
D. integration uncertainty for project
elements
E. contractor claims for out-of-scope
work
Suppose the contingency allowance

established to cover unforeseen activities
of a project has been set at eight percent
of the total project cost. The total dollars
in the contingency allowance should be
________ as the project nears
completion.
A. retained at the remaining dollar level
Answer: E
B. increased to meet unidentified
surprises
C. decreased to reduce the accounting
work
D. spent to ensure there is no extra
money shown in the budget
E. reduced to a percentage of the
remaining work
Suppose a contract has been in force for Answer: E

six months and the work is progressing,
and then the buyer requests some
changes in the design. The changes do
not affect completed work but add some
new items and subtract some existing
items. The cost to the buyer to
accomplish these changes is ________.
123
A. increased by the amount of added

work
B. unchanged because the contract is in
place
C. decreased because the work has not
been started
D. unchanged because the buyer
(customer) is always right
E. unknown because the cost of the
changed work is not specified
In the earned values system, the focus is

on "cost of work," which is divided into
"scheduled" and "performed" work. This
is further defined as "budgeted" and
"actual" work. The formula "BCWP -
BCWS" provides the ________. Answer: B
A. cost difference
B. schedule variance
C. overrun conditions
D. schedule difference
E. cost variance
Indices can provide an indication of the

status of a project. In the earned values
system, there are two indices
Cost Performance Index (CPI) and
Schedule Performance Index (SPI). The
formula for CPI is ________. Answer: C
A. ACWP/BCWS
B. ACWP/BCWP
C. BCWP/ACWP
D. BCWS/ACWP
E. BCWS/BCWP
Suppose that in the earned value Answer: D

system, the status of the project is
reported as BCWS = 100, ACWP = 110,
124
BCWP = 95. The project is now

________.
A. underspent and behind schedule
B. overspent and ahead of schedule
C. underspent and ahead of schedule
D. overspent and behind schedule
E. cannot be determined from available
data
Projects have direct and indirect costs

that the project manager must track to
ensure the budget is not exceeded. The
project manager has the most control
over direct costs such as ________.
Answer: B
A. bonuses, fees, and awards
B. labor, materials, and equipment
C. labor, supervision, and fees
D. overhead, G&A, and fees
E. G&A, facilities, and transportation
A project is being advertised to solicit Answer: D

bidders. The buyer has asked for two
types of price first, if payment is made in
total upon completion of the project;
second, if payment is made 50 percent at
the midpoint of completion and 50
percent upon total completion. This is a
two-year project that is being priced at
$10,000,000 when the cost of money is
not included. Assume money is borrowed
in two equal increments-at the start of
year 1 and year 2. If the interest rate over
the two years is eight percent, the total
bid under each option (i.e., payment at
the end; payment at midpoint) is
________.
A. $11,844,000; $11,412,000
B. $10,400,000; $10,040,000
125
C. $10,800,000; $10,400,000
D. $11,232,000; $10,832,000
E. $12,484,000; $11,244,000
The cost of money and cash flow can

adversely affect the financial status of the
project. One method of encouraging
early payment of invoices is to offer a
discount for payment within a few days. If
an invoice for $10,000 was paid within (x)
days (see each possible answer for value
of x), the method "two 10, net 30" would Answer: D
provide a savings of ________.
A. $100 (x = 30)
B. $200 (x = 30)
C. $300 (x = 10)
D. $200 (x = 10)
E. cannot be determined from available
data
Project financial audits are used to

determine the current status of the
financial health of a project, but
________ is/are not an area for financial
audit.
Answer: B
A. a project budget system
B. a project computer system
C. a project change control
D. a project status reporting
E. cash-flow projections
A project audit is often a three-step Answer: C

process using different skills to assess
the condition of the health of the project.
The first audit, or first audit opportunity, is
at the ________ phase.
A. start of the planning
B. start of the implementation
126
C. end of the planning

D. end of the implementation
E. middle of the implementation
The budget for a project is the baseline

from which future expenditures are
measured. Of the following, ________
do(es) not cause change to the budget
baseline during project implementation.
A. change orders to the contract
Answer: B
B. expenditures to buy materials
C. revised cost estimates made in-house
D. changes to subcontractor's scope of
work
E. correction to the work breakdown
structure to eliminate some tasks
In the earned value system for Answer: D

determining project status, there are
several methods of accepting credit for
the completion of work. In the most
common method, full credit is allowed
after the work package is complete. A
second method is to allow full credit
when 50 percent of the work package is
complete to permit the performing
contractor (seller) to receive credit for
work-in-process. From the seller's point
of view, ________.
A. either method is acceptable under an
incremental payment schedule contract
B. the credit at 100 percent completion is
better for either a lump-sum or
incremental payment contract because
the accounting is more accurate
C. the credit at 100 percent completion is
better because the accounting lags the
work-in-process by 30 days in any type of
127
payment schedule
D. the credit at 50 percent completion is
better because it improves the cash flow
under an incremental payment schedule
E. the credit at 50 percent completion is
better because it reduces the billing cycle
Because of the investment or risk

associated with a project, the decision
may be to ensure a high profitability.
When this is the case, senior
management should agree on profit
________ of the project. Answer: D
A. capability at the beginning
B. margin (rate) at the midpoint
C. margin (rate) at the end
D. goals at the beginning
E. goals at the end
Estimating costs for a project is difficult

because of the lack of historical cost
records, the uncertainty regarding the
future state of the economy, and the lack
of understanding as to the full scope of
work. Successive estimating is one
method of accounting for the uncertainty
of cost estimating by ________.
A. making three estimates and taking the
Answer: C
average
B. continually making estimates as the
project progresses
C. also including the range of potential
error for an estimated item
D. using two or more cost estimating
techniques to arrive at an average cost
E. delaying estimates until all information
is acquired
128
The degree of uncertainty (lack of

information) in a project affects the ability
of cost estimators to make precise
estimates to determine the total cost.
One method to resolve the uncertainty is
influence diagramming, which is used to
evaluate ________.
Answer: B
A. price, net worth, and net present value
B. alternative outcomes, risk factors, and
given quantities
C. risk factors, price, and alternatives
D. price, quantities, and time of purchase
E. risk factors, contract type, and project
duration
The most accurate estimates (and the

most expensive to produce) are
_______.
A. analogous estimates
Answer: D
B. parametric estimates
C. top-down estimates
D. bottom-up estimates
E. function point estimates
The ________ identifies the project

elements that costs will be allocated to.
A. work breakdown structure
B. PERT estimates Answer: A
C. earned value
D. order of magnitude estimate
E. BCWR
The EAC is a forecasting technique Answer: D

based on past project performance. It
can be calculated using the formula
________.
A. cumulative actuals + (ETC X CPI)
B. cumulative actuals + new estimate for
129
cost of work remaining

C. cumulative actuals + remaining budget
D. all of the above
The best way to manage the costs of

change requests is to ________.
A. accept them orally
B. allow them to happen in ad hoc
Answer: D
fashion
C. impose change unilaterally
D. document and authorize all changes
E. use the earned value system
Materials management is crucial to the

success of the project when resources
are needed at a specified time and place
to ensure continued progress. An
assessment of the materials costs should
consider not only the cost of purchase
but also ________. Answer: C
A. transportation, deterioration, and
storage
B. storage, damage, and deterioration
C. transportation, storage, and shortage
D. transportation, storage, and loss
E. quantities, storage, and damage
. Project financing is critical to large Answer: E

projects where neither the owner (buyer)
or contractor (seller) has sufficient funds
available to cover the costs incurred
during project implementation. In such
cases, a third party must provide the
necessary capital. The third party
evaluates the feasibility of financing the
project based on ________.
A. the participants' business reasons for
130
the project
B. the share of ownership to be retained
C. the level of risk the participants are to
share
D. the project's anticipated cash flow and
tax benefits, if any
E. all of the above
The financing plan for a project should

detail the methods of obtaining and
dispensing the capital over the full
duration of the project. In preparing the
plan and considering risk and reward,
management should ensure that
participants' credit standing is preserved,
maximum leverage is used, tax benefits
Answer: C
are optimized, flexibility is incorporated
into ownership, and ________.
A. additional tax relief is pursued
B. lines of credit are opened
C. accesses to sources of new capital
are maintained
D. maximum financing is used
E. late receipt of funds is avoided
Investors are often used to obtain the Answer: C

necessary financing for major projects,
which can transfer the ownership to the
investors. The system is then leased
back for operation and use. The major
advantage for the investors is ________ ,
and the major advantage for the user of
the system is ________.
A. control of a business; low risk for
operation and maintenance
B. high internal rate of return; favorable
tax write-off
C. favorable tax write-off; new source of
131
funds
D. ownership without risk of operation;
favorable tax write-off
E. reduced quality (performance) risk;
reduced cost risk
Which is not an element of procurement

management?
A. Purchasing
B. Expediting Answer: E
C. Acquisition
D. Marketing
E. C and D
The purchasing cycle consists of all the

following elements except?
A. Defined Need
Answer: C
B. Transmit Need
C. Inspection
D. Price & Terms
The cost of corrective action taken by the

purchaser and chargeable to the supplier
under the terms of the contract is
A. Payment authorization Answer: D
B. Bid cost considerations
C. Release payment
D. Back charge
__________ is a narrative description of

the work to be accomplished or resource
to be supplied.
A. Purchase order Answer: C
B. Level of effort work
C. Scope of work
D. Contract stipulation
By which means is a contractor able to Answer: C

132
control costs overruns due to changing

requirements?
A. Project Data review
B. Change order
C. Change Control
D. Contract negotiations
_________ is a written order directing the

contractor to make changes according to
the provisions of the contract documents.
A. Change order/purchase order
Answer: A
Amendment
B. Contract order Modifications.
C. Contractor claim
D. Owner Directive
_________ is a request for interim

stoppage of work due to non
conformance, funding or technical
considerations
Answer: B
A. Bid Protest
B. Stop Work order
C. Notice to Proceed
D. Supplier Default Notice
_________ defines when the work is

ready for or is being used for the purpose
intended and is so certified.
A. Final Completion Answer: B
B. Substantial Completion
C. Final Acceptance
D. Mechanical Completion
The process that may be used by an Answer: A

unsuccessful supplier to seek remedy for
a non award of work is
A. Bid Protest
B. Stop Work Order
133
C. Back charge
D. Contract Dispute
The __________ specification describes,

defines or specifies the goods/services to
be supplied.
A. Performance
Answer: C
B. Functional
C. Technical
D. Bid
E. General Requirements
The Bid Evaluation process is

characterized by all of the following
activities except?
A. Evaluation of suppliers financial
resources
Answer: E
B. Ability to comply with technical
specifications,
C. Delivery schedule and Cost factors
D. Performance Record
E. Competitors' method of sourcing
Which is not a consideration in a make or

buy decision?
A. Cost factors
B. Sales Volume
Answer: B
C. Existence of sufficient
administration/technical personnel
D. Political and, social factors with the
organization
There are four methods of government Answer: D

procurement. Which is not one of these
methods?
A. Assistance
B. Sealed Bidding
C. Competitive proposals
134
D. Acquisition
E. Small Purchases
A purchasing operation does not contain

this classification of work
A. Management
B. Buying Answer: D
C. Follow up and expedition
D. Marketing
E. Clerical
__________ is a register of suppliers

invited to submit bids for goods/services
as specified.
A. Procurement invitation Answer: B
B. Bid List
C. Resource Identification
D. Supplier's Rankings
__________ is a formal invitation to

submit a price for goods and/or services
as specified.
A. Request for Quotation
Answer: A
B. Bid Response
C. Intention for Bid
D. Invitation for Bid
E. Request for Proposal
Which contract type should be used by

the owner on a high risk project?
A. Cost Plus Percentage of Cost
B. Cost Plus Incentive Fee Answer: C
C. Lump Sum
D. Fixed Price Plus Incentive Fee
E. C and D
Cost Reimbursable contracts are Answer: C

equivalent to
135
A. Progress Payment Contracts

B. Extra Work Order Contracts
C. Cost Plus Contracts
D. Fixed Price Contracts
Fixed price and incentive type contracts

place responsibility for performance and
financial risks associated with delay or
non performance on the
Answer: A
A. Contractor
B. Owner
C. Lending Institution
D. Project Manager
__________ is based on information

gathered and analyzed about demand
and supply. This forecast provides a
prediction of short and long term prices
and the underlying reasons for those
Answer: D
trends.
A. Sales forecast
B. Consumer Price Index
C. Production forecast
D. Price forecast
The contract is signed at the end of the

A. Pre-award phase
B. Award phase
Answer: E
C. Post-award phase
D. Solicitation phase
E. Award cycle
Definitive contract terms are spelled out Answer: C

in the
A. Pre-award phase
B. Award phase
C. Post-award phase
D. Purchasing phase
136
E. Pre-award phase for fixed cost

contracts, and Award phase for cost plus
contracts
A bilateral RFP is preferred to an

invitation to bid when
A. supplier and terms are specified
B. the product or service is relatively low
value and readily available Answer: C
C. the product or service has high value
and is unique
D. the product or service has high value,
but is easy to obtain
PMI suggests which of the following

behaviors as part of contract
negotiations?
A. Protocol, probing, scratching
B. Sniffing and smelling (olfactory) Answer: A
C. Touching and caressing (tactile)
D. Mind-reading and extra-sensory
perception
The bid package is developed in the

A. Requirements phase
B. Requisition cycle
Answer: B
C. Solicitation cycle
D. Award cycle
E. Award phase
The Award phase includes the

A. requirements, requisition and award
cycles
B. award and contractual cycles Answer: D
C. requisition and solicitation cycles
D. solicitation cycle
E. cycles required for the contract
137
To relieve pressure on the project

schedule, Diane decided to fast-track
and hire a contractor to do part of the
work. Which form of contract(s) should
she consider?
A. None. Fast-tracking is a very poor time Answer: E
to consider a contractor.
B. Fixed lump sum
C. Cost plus incentive
D. Cost plus percentage of cost
E. c and d
Which is not a factor in choosing a

contractor?
A. Complexity of requirements
B. Price competition Answer: E
C. Competency
D. Capacity
Requirements and specifications are

always changing in the systems
integration business. Therefore, the best
form of contract for this environment
would be
Answer: C
A. the form of contract required to get the
best contractor
B. Fixed price
C. Cost plus
D. Overseas
In the area of contracting, there are two Answer: D

basic types of contracts that reflect how
the total price is determined. The
________ contract has an objective of a
pre-determined end price while the
________ contract has an objective of a
target end price.
138
A. full value; partial value

B. definitive; undefined
C. incentive fee; award fee
D. fixed price; cost-plus
E. end price; target price
A contract is a promise to provide goods

and/or services to one party in return for
something of value from that party. To
define the goods, services, and
something of value in a legal document,
the contract must be comprised of
________.
A. an explicit work and product
description
B. a generic statement of the Answer: C
requirements
C. a basic contract, a statement of work,
a specification, and a list of
documentation requirements
D. statements of the requirements using
language that describes the physical
characteristics and the amount of money
to be paid for the delivered products
The selection of the type of contract is

important because of the cost risk
involved. In most cases, the buyer
(owner) will attempt to transfer the risk to
the seller (project sponsor). The buyer,
therefore, will always attempt to award
Answer: A
a(n) ________ contract to the seller.
A. fixed price
B. cost-plus
C. time and materials
D. definitive
E. incentive fee
139
The buyer has not completely defined all

the requirements for the project but has
enough definition to start. The type of
contract that will most likely be awarded
while additional requirements are being
finalized is the ________ contract. Answer: B
A. letter
B. cost-plus
C. fixed price
D. variable price
E. temporary
Contracts may be written in any form that

is understandable and enforceable, and
often project personnel attempt to be
"creative" in developing the document.
Given a choice, it is best to ________ to
meet the requirements of the project. Answer: C
A. prepare a unique contract
B. tailor an old contract
C. use standard clauses in contracts
D. avoid using contractual documents
E. mix standard and unique clauses
A purchase order can be considered a

contract with a vendor to provide a
number of parts or components that will
be used in project implementation. The
purchase order becomes a "contract"
when it is ________.
A. issued by the project procurement Answer: D
section
B. received by the vendor
C. filled by the vendor
D. accepted and signed by the vendor
E. completed through delivery of the
products by the vendor
140
The marketplace often dictates the price

of products and services through
competitive or non-competitive supply
situations, which will vary from many
suppliers to one supplier. However,
________ is not a market condition. Answer: A
A. mixed competition
B. pure competition
C. monopolistic competition
D. oligopoly
E. monopoly
The contracting process for the

negotiation and legal execution is divided
into pre-award, award, and post-award
phases and five cycles that describe the
activities under the phases. The first
cycle under the pre-award phase is the
Answer: B
________ cycle.
A. requisition
B. requirement
C. solicitation
D. award
E. contractual
Project management, as an integration

function, has the need to either make or
buy components of the system. The
decision to make or buy is based on all
the following but ________.
A. availability of people Answer: B
B. availability of funds
C. technology/know-how
D. availability of
contractors/manufacturers
E. price
A contract is a stand-alone legal Answer: D

141
document and must be individually

managed to ensure the proper
performance. Many projects have several
contracts to be initiated and executed
throughout the life of the project.
Therefore, it is best to have a ________
that anticipates and describes the types
of contracts required for the project.
A. responsibility matrix
B. listing of contracts
C. contracting manual
D. project contract management plan
E. project configuration management
plan
Contracts for projects require revisions to

meet the project needs as those needs
evolve. The correct method of initiating a
change to the contract is to prepare a
________ for submission to the customer
(buyer). Answer: D
A. change notice
B. new contract
C. change order
D. proposal
E. plan
Changes to a contract are approved and Answer: C

signed by both the buyer and seller as
the desired performance requirements.
These changes are ________.
A. separate contracts between the
customer and the project
B. stand-alone subcontracts to the prime
contract
C. an integral part of the prime contract
as an amendment
D. secondary in legality to the prime
142
contract
E. primary in legality and the prime
contract becomes secondary
The concept of warranty is based upon

one party's assurance that the product or
service will meet certain standards of
quality, including ________.
A. function, performance, durability, and
desirability
B. appearance, desirability, reliability, and
Answer: D
maintainability
C. desirability, reliability, durability, and
maintainability
D. reliability, maintainability, function, and
repairability
E. condition, reliability, description, and
function/performance
Warranties are given in two manners,

either implied or expressed. The implied
warranty differs from the expressed
warranty in that the implied warranty
________.
A. is always given by a sales person
Answer: D
B. is always written at the time of sale
C. gives specific descriptions of the
product's qualities
D. is not a recorded statement of the
characteristics of the product
A project manager may issue a "waiver" Answer: B

on items received from a vendor because
the items are less than the purchase
order specified. If the project manager
knowingly accepts faulty material, the
vendor is usually ________ any
143
damages that the material may cause.

A. held responsible for
B. relieved of responsibility for
C. made to pay a percentage of
D. willing to repair/correct
E. not paid in the amount of
A contract may include a clause that

imposes a penalty on the project for late
delivery of the completed system.
Although the contract specifies a specific
monetary penalty for delays, the key(s) to
the issue is/are ________.
A. whether the delays were necessary for
safety Answer: C
B. whether the delay could be anticipated
by the project manager
C. who caused the delay (buyer or seller)
and the nature of the interruption
D. why the delay affected the delivery of
the system
E. all of the above
A contract is a promise to provide goods Answer: C

and/or services to one party in return for
something of value from that party. To
define the goods, services, and
something of value in a legal document,
the contract must be comprised of
________.
A. an explicit work and product
description
B. a generic statement of the
requirements
C. a basic contract, a statement of work,
a specification, and a list of
D. statements of the requirements using
144
language that describes the physical

characteristics and the amount of money
to be paid for the delivered products
The selection of the type of contract is

important because of the cost risk
involved. In most cases, the buyer
(owner) will attempt to transfer the risk to
the seller (project sponsor). The buyer,
therefore, will always attempt to award
Answer: A
a(n) ________ contract to the seller.
A. fixed price
B. cost-plus
D. definitive
E. incentive fee
The buyer has not completely defined all

the requirements for the project but has
enough definition to start. The type of
contract that will most likely be awarded
while additional requirements are being
finalized is the ________ contract. Answer: B
A. letter
B. cost-plus
C. fixed price
D. variable price
E. temporary
Contracts may be written in any form that Answer: C

is understandable and enforceable, and
often project personnel attempt to be
"creative" in developing the document.
Given a choice, it is best to ________ to
meet the requirements of the project.
145
C. use standard clauses in contracts

D. avoid using contractual documents
E. mix standard and unique clauses
A purchase order can be considered a

contract with a vendor to provide a
number of parts or components that will
be used in project implementation. The
purchase order becomes a "contract"
when it is ________.
A. issued by the project procurement Answer: D
section
D. accepted and signed by the vendor
E. completed through delivery of the
products by the vendor
The marketplace often dictates the price

of products and services through
competitive or non-competitive supply
situations, which will vary from many
suppliers to one supplier. However,
________ is not a market condition. Answer: A
B. pure competition
D. oligopoly
E. monopoly
The contracting process for the Answer: B

negotiation and legal execution is divided
into pre-award, award, and post-award
phases and five cycles that describe the
activities under the phases. The first
cycle under the pre-award phase is the
________ cycle.
A. requisition
146
B. requirement
C. solicitation
D. award
E. contractual
Project management, as an integration

function, has the need to either make or
buy components of the system. The
decision to make or buy is based on all
the following but ________.
A. availability of people Answer: B
D. availability of
E. price
A contract is a stand-alone legal

document and must be individually
managed to ensure the proper
performance. Many projects have several
contracts to be initiated and executed
throughout the life of the project.
Therefore, it is best to have a ________
that anticipates and describes the types Answer: D
of contracts required for the project.
D. project contract management plan
E. project configuration management
plan
Contracts for projects require revisions to Answer: D

meet the project needs as those needs
evolve. The correct method of initiating a
change to the contract is to prepare a
________ for submission to the customer
147
(buyer).
A. change notice
B. new contract
C. change order
D. proposal
E. plan
Changes to a contract are approved and

signed by both the buyer and seller as
the desired performance requirements.
These changes are ________.
A. separate contracts between the
customer and the project
B. stand-alone subcontracts to the prime
Answer: C
contract
C. an integral part of the prime contract
as an amendment
D. secondary in legality to the prime
contract
E. primary in legality and the prime
contract becomes secondary
The concept of warranty is based upon

one party's assurance that the product or
service will meet certain standards of
quality, including ________.
A. function, performance, durability, and
desirability
B. appearance, desirability, reliability, and
Answer: D
maintainability
C. desirability, reliability, durability, and
maintainability
D. reliability, maintainability, function, and
repairability
E. condition, reliability, description, and
Warranties are given in two manners, Answer: D

148
either implied or expressed. The implied

warranty differs from the expressed
warranty in that the implied warranty
________.
A. is always given by a sales person
B. is always written at the time of sale
C. gives specific descriptions of the
product's qualities
D. is not a recorded statement of the
A project manager may issue a "waiver"

on items received from a vendor because
the items are less than the purchase
order specified. If the project manager
knowingly accepts faulty material, the
vendor is usually ________ any
Answer: B
damages that the material may cause.
C. made to pay a percentage of
A contract may include a clause that Answer: C

imposes a penalty on the project for late
delivery of the completed system.
Although the contract specifies a specific
monetary penalty for delays, the key(s) to
the issue is/are ________.
A. whether the delays were necessary for
safety
B. whether the delay could be anticipated
by the project manager
C. who caused the delay (buyer or seller)
and the nature of the interruption
D. why the delay affected the delivery of
149
the system
E. all of the above
Performance bonds are required by

some contracts to ensure the project is
completed and the system functions as
specified. A performance bond should
never be for less than ________ percent
of the contract price. Answer: D
A. 25
B. 50
C. 75
D. 100
Payment bonds are often required by the

contract and require specific actions
under the stated conditions. Payment
bonds are specifically designed to ensure
payment of ________ by the prime
contractor.
Answer: D
A. insurance premiums
B. weekly payrolls
C. incremental earned value charges
D. subcontractors, laborers, and
materials
E. damages for accidents caused
. Some contracts are not completed

because the contractor fails or refuses to
complete the contractual conditions. This
situation is called a ________ for which
damages can be assigned.
Answer: A
A. breech
B. stop-work
C. flawed contract
D. contract in situ
150
The time of delivery for a contract is often

specified to ensure that both parties, the
buyer and seller, understand the need for
the product, service, or system on or
before that date. When a time is not
specified in a contract, it is assumed that
performance must be completed
________.
Answer: E
A. at the same pace as other work
B. sooner than contracts of a lesser
dollar value
C. in the order in which the work
(contract) was accepted
D. as soon as possible, but without
causing the seller any additional expense
E. within a reasonable time
The project manager is responsible for all

the activities within a project and
interfaces with external functions, all of
which consume his/her time. Therefore,
when a contract administrator is
assigned to the project, the project
manager ________ the contract.
A. does not need to manage
Answer: C
B. can transfer all responsibility to the
contract administrator for matters related
to
C. must still manage all major aspects of
D. must know only the general contents
of
E. is not concerned with the
management of
The final step on a project is the close- Answer: C

out phase where all activities are to be
terminated in a business-like fashion.
From a contractual point of view, the
151
prime consideration is to determine

________.
A. the profit made on this project
B. who must be notified that the contract
is completed
C. the degree to which the project met
the provisions of the contract
D. what reports are required to terminate
the contract
E. how many changes were made in the
course of the project and whether all the
changes are accounted for
. In initiating a Answer: C
contract, the primary
focus is on obtaining a
product or service
without regard for the
termination. The
contract for goods or
services should have
a termination provision
(after successful
completion) that
________.
A. fixes on a date that
designates completion
B. permits adjustments
to the perceived
termination, when
necessary
C. requires a specific
action on the part of
the seller and the
buyer
D. requires the seller
to demonstrate the
product's capability
152
E. requires the buyer

to formally accept the
product on a specific
date
. The language of contracts does

not preclude misunderstanding
and situations that adversely
affect project completion.
Therefore, a contract should
always have a method of
removing the obstacles to
progress. One method is to form
a ________ committee to Answer: B
address matters that the project
manager and the customer's
representative cannot handle.
A. top management
B. disputes resolution
C. problem processing
D. steering
It is important to review the

performance of subcontractors
during post-contract evaluations.
This review establishes the
baseline for ________.
A. payment of current bills and
incentive bonuses Answer: B
B. demonstrated performance
and future potential
C. future pricing and costs
D. work measurement and work
standards
. Project contracts can be Answer: D

153
separated into two broad

categories
A. how the work is to be
performed; who will perform the
work
B. what procedures are to be
used; how the work will be
performed
C. when the work is to be
performed; what performance
standards will be used
D. what the contractor (seller) is
to provide; how the work is to be
performed
E. who may be used to perform
the work; the procedures to be
used
. In a cost-reimbursable contract,
the owner (buyer) accepts most
of the ________. Therefore, the
owner has more input as to how
the work is accomplished as
compared to a fixed price
contract.
A. risk and exercises more
control over the project Answer: A
B. cost and has a greater interest
in the schedule
C. design work and influences
the end product
D. project management and daily
direction of the work force
E. planning function and cost
disbursements for the project
. During the proposal and bidding Answer: C

phase, the owner (buyer) must
154
assess the capability of the

contractor (seller) to perform the
work. For example, if the owner
believes the proposed team
consists of some individuals who
do not have the requisite
qualifications and suggests that
these individuals be replaced,
the contractor should ________.
A. disregard the owner's
suggestions unless it precludes
the contractor from obtaining the
contract
B. immediately make changes to
follow the owner's suggestions
although the contractor believes
the replacements are less
qualified
C. discuss the suggestions with
the owner and clarify the
qualifications of individuals prior
to making a change
D. tell the owner that personnel
working on the contract are not
his/her responsibility and make
no changes
E. tell the owner that the
individuals will be replaced and
ignore the situation (the owner is
not responsible for personnel
selection)
The contractor (seller) accepts all Answer: D

liability for engineering errors,
poor workmanship, and
consequential damages under
a(n) ________ contract.
A. letter
155
B. incentive fee
C. cost-plus
D. fixed price
E. variable production
. Contracting for project work

follows a set sequence of
activities that ensures a
favorable contracting strategy.
The sequence of contracting
activities includes the following
A. receive proposals; evaluate
proposals; select winner
B. prepare proposals; submit Answer: D
proposals; select bidder
C. prepare proposals; receive
proposals; review proposals
D. receive invitation for bid;
review invitation for bid; submit
bid
E. prepare proposals; review
proposals; submit proposals
Contractor screening is important Answer: A

to ensure that candidates are
capable of performing the work
and the number is neither
excessive, which will make the
proposal evaluation process
difficult, nor too few, which will
minimize the competition. The
four key items to be used in
contractor screening are
________.
A. capacity, experience,
capability, and interest
B. capital, capacity, experience,
and location
156
C. experience, interest, financial

stability, and skills
D. facilities, capital, capacity, and
capability
E. industry, experience, risk, and
cost
A request for proposal (RFP) is

used to
A. establish a project master
plan.
B. establish project baselines. Answer: E
C. create project budgets.
D. solicit bids from contractors.
E. maintain control over
unauthorized work changes.
. When invitations for bid are Answer: E

issued to the contractors, the
bids (proposals) must be
submitted in a standard format
because ________.
A. the owner (buyer) has a
format that he/she routinely uses
and wants to force the
contractors to meet his/her
requirements
B. the Uniform Commercial Code
specifies that all proposals will
comply with the law and the
standard format
C. the government has specified
that proposals must meet the
requirements of contract law and
this assures the incorporation of
all items
D. the Association of Contractors
has prescribed the format to
157
which all bidders must comply to

meet a legal proposal
E. it gives the greatest assurance
that all items are covered and the
proposals can be evaluated in a
uniform manner
Submission of proposals to
perform work is the avenue for
acquiring most projects. The
proposals, when submitted, must
contain specific items to obligate
or bind the tendering
organization. The most important
item is ________.
A. the complete description of
Answer: C
the work to be performed
B. the list of terms and conditions
C. the signature of a corporate
officer
D. a statement of work that
describes how the work will be
accomplished
E. a price for the complete work
to be performed
The most critical aspect of Answer: D

selecting a contractor and
awarding a contract is the
proposal evaluation (or bid
review) process. The evaluators
must be aware of the need to
balance fact versus judgment,
objective versus subjective
reasoning, work tasks versus
costs, time versus price, and
________.
A. certainty versus uncertainty
158
B. quality versus cost

C. quality versus price
D. risk versus opportunity
. Contracting is a means of
obtaining required goods and/or
services that are required to
meet the needs of a project. The
contract defines the legal
relationship between the
participants and what each
participant is expected to do
before the contract can be
concluded. The contract also
Answer: A
forms a ________ in which the
participants strive to work toward
the common goal of successfully
completing the legal obligations
in the most efficient manner.
A. union
B. partnership
C. consortium
D. single team
E. situation of opposition
. The proposal preparation is in Answer: E

itself a short-term project that
requires intense effort to be
completed in the owner's
(buyer's) format and time frame,
while being responsive to the
requirements of the formal
invitation for bid. A company
bidding for projects can ease the
workload and enhance the
potential for successfully
"winning" contracts by ________.
159
A. appointing the proposal

manager early in the process
B. identifying a proposal staff
early in the process
C. having a technical information
data base
D. having standard scopes of
services
E. all of the above
Similar to a small project, the

proposal preparation process is
started by a ________ meeting
where the technical, legal, and
compensation considerations are
reviewed and assignments of
Answer: C
responsibility are made.
A. preliminary proposal
B. planning and approval
C. kickoff
D. technical assessment
E. staff assignment
. When entering into a contract, it Answer: A

is often assumed that the
performance of the work will be
as specified and no disputes will
be raised during the performance
period. On the contrary, it is
better to assume that there will
be disputes and include a
procedure in the contract as to
the means for dispute resolution
because ________.
A. contracts, by their very nature,
create situations where disputes
will arise, but they can be easily
resolved with good procedures
160
B. the tracking of claims is

important for the best "win"
position during the subsequent
litigation
C. disputes must be brought
before the National Contract
Arbitration Board to obtain
equitable resolution
D. there will be a hostile
relationship between the contract
participants once the contract is
signed
E. it is more economical to
resolve disputes as soon as
claims are made and before time
and effort are wasted
. A contract is a promise to do or
not do something in exchange for
some form of consideration. A
negotiated contract is one where
both participants agree on the
basis for principal considerations
A. the period of performance and
the specifications for the project
B. how the work will be
performed, at what time, and for
Answer: C
what price
C. the services to be rendered by
one party and the price to be
paid by the other party
D. who will perform the work and
who will pay for the work
E. the description of services to
be rendered and the description
of the payment and payment
schedule
161
In abstract theory, a contract is

not essential to the performance
of a project. Contracts are,
however, useful when the
performance involves ________ ,
particularly when they are
interdependent.
A. personnel, money, and
Answer: D
material
B. cost, schedule, and quality
C. new, unique, and complex
work
D. substantial, complex, and
extended commitments
E. subcontractors, vendors, and
suppliers
When making the project

procurement plan, the project
manager should consider all of
A. Preliminary cost estimates Answer: D
B. Market conditions
C. Project funding availability
D. Application area extensions
E. Product descriptions
. Procurement documents should

have all of the following attributes
EXCEPT
A. Facilitating accurate and
complete responses
B. Including a complete Answer: D
statement of work
C. Describing the desired form of
response
D. Including the list of potential
bidders/respondents
162
A request for bid differs from a

request for proposal in that the
A. RFP is used when source
selection will be price driven
B. RFP is used when the project
time-frame is limited
Answer: C
C. RFB is used when source
D. RFP disregards price
considerations
E. RFB is concerned with price
exclusively
. Contract administration change

requests may include all of the
following EXCEPT
A. Modifications to the terms of
the contract
B. Termination of the contract if
Answer: D
the seller's work is unsatisfactory
C. Modification to the description
of the product or service to be
provided
D. Seller invoices
E. Contracted changes
Which of the following is true Answer: C

about the advertising in the
solicitation process? I. It is
sometimes required on public
projects II. It is an effective
method of expanding the list of
potential bidders III. It can cause
public pressure resulting in bid
disputes
A. I only
B. Ii only
C. I and II only
163
D. I and III only

E. I, II, and III
Which type of contract provides

the highest risk to the Owner
(Buyer)?
A. Cost Plus Percentage of Cost
Answer: A
B. Cost Plus Fixed Fee
C. Firm Fixed Price
D. Fixed Price Plus Incentive Fee
E. Cost Plus Incentive Fee
In negotiations, what is a fait

accompli tactic?
A. Accomplishing the phase
before the other side is ready
B. Pretending to accept the other
side's offer
Answer: C
C. Claiming an issue has already
been decided on and cannot be
changed
D. Acting in good faith
E. Promising that a requirement
will be completed before it is due
An expressed warranty
A. Is provided by the sales
manager
B. Is a statement of the
Answer: B
C. Covers a longer period than
the implied warranty
D. Is the best guarantee to the
buyer
E. Can be sold separately
The project's contractor payment Answer: D

system should include
164
A. An administrative review
B. The contractor submission
C. A review of work performed
D. Negotiations over price
E. A viable account payable
system
The contract administrator

should provide ___________ at
formal closure of project I.
Formal notice of project
completion to the contractor II.
Letters of commendation to all
project staff III. Formal notice of
acceptance to the contractor IV. Answer: C
Internal notice to senior
management/buyer
A. I only
B. IV only
C. I and III only
D. II and IV only
E. I, III, and IV only
Which type of contract should be

used for a well-defined project
A. Unit price contract
B. Fixed price contract
Answer: B
C. Cost reimbursable contract
D. Partnership contract
E. A unit price contract that
disallows such contracting
Contract close-out Answer: C

documentation includes all of the
following EXCEPT
A. Technical documentation
B. Financial documents
C. The RFP or RFB and seller's
165
working proposal
D. Results of contract-related
inspections
. Potential contract changes

should be
A. Postponed as long as possible
to protect the budget
B. Viewed as negative,
quantified, and tabulated
C. Quantified and fed back Answer: C
through the project planning and
procurement processes
D. Reviewed by senior
management and the buyer
E. Submitted for bids to the
relevant vendor list
The purpose of a procurement

audit is to do all of the following
EXCEPT
A. Maintain a complete file of
contract-related records
B. Determine if all required work
has been completed
Answer: A
C. Determine if the bid
documents used were effective
D. Determine if the contract
change control system was
effective
E. Identify successes and
failures and their implications
When the procurement item is Answer: E

available from only one supplier,
all of the following evaluation
criteria should be identified and
documented to support an
166
integrated assessment EXCEPT

A. Management approach
B. Financial capacity
C. Life cycle cost
D. Technical capabilities
E. Mode of delivery
All of the following methods are

available to the project manager
for short-listing contract
proposals EXCEPT
A. Comparing proposals against
Answer: D
independent estimates
B. Weighting systems
C. Subjective screening systems
D. Resource distribution system
E. Negotiation
Which terms are used to

describe contested changes
when the seller and project
management team disagree on
compensation for the change? I.
Appeals II. Mediation III. Claims
Answer: D
IV. Disputes V. Arbitration
A. I and III only
B. II and IV only
C. IV and V only
E. II, III, and V only
FFP is an acronym for

A. Free Flow Performance
B. Fundamentally Fixed Price
Answer: C
C. Firm Fixed Price
D. Free Form Project
E. Fixed File Procurement
167
The buyer has negotiated a cost-

plus-incentive fee contract with
the seller. The contract has a
target cost of $300k, a target fee
of $40K, a share ration of 80/20,
a maximum fee of $60K, and a
minimum fee of $10K. If the
Answer: E
seller has actual costs of $380K,
how much fee will the buyer pay?
A. $104K
B. $56K
C. $40K
D. $30K
E. $24K
Which of the following terms is

an expression by one party of its
assent to certain terms in the
contract provided that the other
party expresses its assent to the
identical terms? Answer: D
A. Proposal
B. Counter-offer
C. Bargain
D. Offer
E. Exchange
Which term describes the failure

by either the buyer or seller to
perform part or all of the duties of
a contract?
A. Termination of contract Answer: C
B. Partial performance
C. Breach of contract
D. Contract litigation
E. Contract waiver
Which of the following practices Answer: C

168
is NOT an important element of

effective contract administration?
A. Preparing contract change
documentation
B. Processing payment vouchers
C. Establishing the appropriate
contract type
D. Implementing a contract
change control system
E. Preparing monthly contract
status reports for the buyer
When actual costs exceed

estimated costs without any
change in the scope of work, the
project is experiencing
A. Accelerated costs Answer: D
B. Cost growth
C. Schedule compression
D. Cost overrun
E. Cost risk
Contract type selection is

dependent on the degree of risk
or uncertainty facing the project
manager. From the perspective
of the buyer, the preferred
contract type in a low-risk
situation is Answer: A
A. Firm-fixed-price
B. Fixed-price-incentive
C. Cost-sharing
D. Cost-plus-fixed fee
E. Cost-plus-a-percentage-of-
cost
Generally speaking, Answer: A

compensation to a contractor in a
169
cost contract is based on

A. Actual costs incurred based
on the contractor's best efforts
B. The amount of time required
to complete the contract
C. Delivery of the goods and
services stipulated in the contract
D. The number of resources
used
E. Actual costs incurred minus
profit if the cost ceiling was
exceeded
The process of monitoring

contract performance, making
payments, and awarding contract
modifications occurs during
A. The pre-award phase Answer: C
B. The award phase
C. Contract administration
D. Contract formation
E. Contract resolution
Which term describes those

costs that are traceable to or
caused by a specific project work
effort?
A. Variable Answer: B
B. Direct
C. Indirect
D. Fixed
E. Semi-variable
Subcontracting may be the best Answer: E

option when
A. The subcontractor possesses
special technical or engineering
skills
170
B. The performing organization

possesses limited capacity in an
area
C. The subcontractor can
augment the contractor's labor
force at a lower cost than an in-
house capability can be
maintained
D. A and C
E. A, B, and C
During negotiation, the seller

takes exception to the buyer's
terms and conditions and
proposes different terms and
conditions. Which negotiation
technique is the seller using? Answer: E
A. Recommendation
B. Rejection of offer
C. Separate offer
D. Suggestion
E. Counter-offer
Which of the following contract

types places the greatest risk on
the seller to control costs?
A. Fixed-price with economic
price adjustment
Answer: C
B. Fixed-price incentive (firm
target)
C. Firm-fixed-price
D. Cost-plus-award fee
E. Cost-plus-incentive fee
Which of the following contract Answer: E

types does NOT encourage the
seller to control costs and, as a
result, places the greatest risk on
171
the buyer?
A. Cost-sharing
B. Cost-plus-award fee
C. Cost-plus-fixed fee
D. Cost-plus-incentive fee
cost
The purpose of the bidders'

conference is to
A. Ensure that prospective
sellers have a clear, common
understanding of the buyer's
requirements
B. Confirm which bidders are
going to be considered in the
procurement Answer: A
C. Ensure that all qualified sellers
are on the qualified sellers list
D. Obtain detailed information on
the prospective sellers' past
performance
E. Ensure that all bidders
attending the conference receive
amendments
A specification that describes the

buyers requirements with special
dimensions, tolerances, or
features, such as chemical or
electronic requirements and that
is accompanied by engineering
Answer: A
drawings, is called a
A. Design specification
B. Functional specification
C. Performance specifications
D. Commercial standard
E. Qualified product
172
The language of contracts

sometimes causes
misunderstandings and creates
situations that adversely affect
project completion. Therefore, a
relatively fast and informal
method for removing the
obstacles to progress should
always be available. One such
Answer: B
method is to submit the issue in
question to an impartial third
party for resolution. This process
is known as
A. Cause of action
B. Alternative dispute resolution
C. Problem processing
D. Steering resolution
E. Mediation litigation
The legal contractual relationship

that exists between the buyer
and the seller is called
A. Caveat emptor
Answer: C
B. Apparent authority
C. Contract privity
D. Terms and conditions
E. Force majeure
Japanese quality control has Answer: E

improved dramatically in the last
30 years for all of the following
reasons except
A. The use of quality control
circles
B. Small, continuous
improvements in quality control
C. The use of worker suggestion
systems
173
D. The use of quality control

charts
E. Focusing quality control efforts
on production output
Quality management deals with

all of the following topics except
A. Conformance to
requirements/specifications
B. Satisfying the needs of the
Answer: C
customer
C. Making Products more
desirable and luxurious
D. A and C
E. B and C
Which of the following

statements about the cost of
quality are true?
A. The cost of quality is the
expense of nonconformance to
requirements and specifications
B. The costs of quality are mostly
the direct responsibility of
Answer: A
workers who are manufacturing
the product
C. Quality control programs
should only be implemented
when the costs of quality are
excessive
D. a and B
E. a and C
The zero defects concept Answer: D

A. Is a performance standard for
management
B. Is a motivational technique
that promotes "doing it right the
174
first time".
C. Is used by management to
communicate to all employees
that everyone should do things
right the first time.
D. A and C
E. B and C
Quality assurance
A. Refers to the prevention of
product defects
B. Is an auditing function that
provides feedback to the project
team and Client about the quality
of output being produced
Answer: B
C. Is the technical process that
includes the construction of
control charts which specify
acceptability limits for conforming
output
D. A and B
E. b and C
Financial compensation is the

primary motivational tool for
which of the following
management theories or
programs?
Answer: B
A. Zero Defects program
B. Theory X management
C. Theory Y management
D. Quality Control Circles
E. A and C
In the project environment, the Answer: D

individual ultimately responsible
for quality control is
A. The line workers who must
175
strive "to do things right the first

time' to avoid quality problems
B. The company's quality control
manager who must work with the
project members to ensure the
quality control program is
effective
C. The head of the production
department who retains ultimate
quality control responsibility for
all the company's projects
D. The project manager who has
ultimately responsibility for the
entire project
E. The customer who must
ensure that he is receiving a
quality product from the vendor
An acceptance control chart has Answer: E

limits that are based on the
specification limits for the product
rather than limits which
differentiate between random
and assignable causes. Under
circumstance should a QC
manager consider using an
acceptance control chart?
A. When the engineering
tolerance on a dimension greatly
exceeds the natural dispersion of
the manufacturing process
B. When the number of samples
outside the current control chart
limits become too costly and
Cumbersome to investigate
C. When a process is subject to
constant but stable tool wear
176
D. A and B
E. A and C
The majority of product defects

could be prevented in most
processes if manufacturers
would do the following
A. Increase the use of
acceptance control charts
instead of standard three-sigma
control charts Answer: B
B. Make a concerted effort to
eliminate the potential for product
defects in the design stage
C. Create a quality control
department
D. A and B
E. A and C
Quality attributes
A. Are used to determine how
effectively the organization
accomplishes its goals
B. Can be objective or subjective
in nature
Answer: E
C. Are specific quality
characteristics for which a
product is designed, built, and
tested
D. A and B
E. B and C
Most quality problems Answer: C

A. Originate in the quality
department where the ultimate
responsibility for quality rests
B. Originate on the shop floor
because of waste and product
177
rework
C. Are the result of management
inattention to potential quality
improvement ideas
D. Could be eliminated if shop
supervisors monitored their
workers more closely
E. A and B
The Pareto Principle is a Answer: B

technique used by quality
managers to determine which
quality control problems
concerning a particular service or
manufacturing process should be
corrected. Which of the following
statements best represents the
philosophy employed by this
principle?
A. In order to minimize financial
losses from quality control
problems, all problems which
have a measurable cost
associated with them should be
corrected.
B. The majority of defects are
caused by a small percentage of
the identifiable problems.
Improvement efforts should be
reserved for these few vital
problems.
C. In order to achieve zero
defects, all quality control
problems, including those which
do not have a direct financial
cost, should be corrected.
D. Generally, 80% of the quality
control problems are justifiable
178
for correction via cost-benefit

analysis. The remaining 20% are
not financially worthy of
improvement efforts.
E. A and d
The Japanese Quality Control

(QC) Circle movement motivated
its participants in many ways.
Which of the following represents
the most important motivation for
the QC circle participant
A. Improving the performance of
Answer: A
the company
B. Self-improvement
C. Financial incentives
D. Recognition among co-
workers
E. Strengthening of relationships
between co-workers.
In order to achieve long-term Answer: C

quality improvements,
management must do the
following
A. Motivate the employees with
seminars, contests, and
institution of programs such as
"Quality Improvement" day
B. Create a quality control
department and give the head of
the department ultimate
responsibility for quality
improvement
C. Implement of a formal quality
control program with worker and
management involvement
D. Establish financial incentive
179
packages for workers

E. A and D
Quality assurance is
A. top management's intention
regarding quality
B. functions determining
implementation of the quality
policy
Answer: C
C. actions to provide confidence
of satisfying quality requirements
D. responsibilities and processes
which implement quality
management
E. all of the above
Quality is
A. zero defects
B. a problem
Answer: C
C. a specification
D. a cost
E. a, c and d
Which are the best two charts to

show trends in a process?
A. Pareto and Control
B. Control and Run Answer: B
C. Histogram and Run
D. Gantt and Pert
E. Gantt and CPM
If the acceptance sampling Answer: D

attribute for a lot is 30%, this
means that
A. 30% of all lots must be tested
B. 30% of all lots must pass the
test
C. any given lot must have 30%
180
or fewer defects
D. a sample of a given lot must
have 30% or fewer defects to
pass the entire lot
E. c and d
The pillar(s) of quality is (are)

A. Quality is free
B. Doing it right the first time
Answer: E
C. Zero defects
D. Process improvement
E. B and C
When a product or service

completely meets a customer's
requirements
A. quality is achieved.
B. cost of quality is high. Answer: A
C. cost of quality is low.
D. the customer pays the
minimum price.
E. a and b.
Using Pareto's Rule, and given

the data in the following table,
where should corrective action
focus? Origin of problem % of
problems Design 80
Development 2 Prototype 9
Testing 6 Fabrication 3"
Answer: A
A. Design
B. Design, development, and
prototype
C. Design and prototype
D. Development, prototype, and
fabrication
181
Cost of quality is a concept that

includes
A. the cost necessary for
ensuring conformance to
requirements.
B. the life cycle cost of the
Answer: A
project.
C. all research and development
costs related to the project.
D. only the cost of the quality
control function
E. a and b.
The process of determining that

technical processes and
procedures are being performed
in conformance with scope
requirements and quality plans is
called quality Answer: D
A. management.
B. assurance.
C. process review.
D. control.
E. checks.
Quality control is Answer: B

A. identifying which quality
standards are relevant to the
project and determining how to
satisfy them.
B. monitoring specific project
results to determine if they
comply with relevant quality
standards and identifying ways to
eliminate causes of
unsatisfactory performance.
C. evaluating overall project
performance on a regular basis
182
to provide confidence that the

project will satisfy the relevant
quality) standards.
D. taking action to increase the
effectiveness and efficiency of
the project so as to provide
added benefits to both the
performing organization and the
project customer.
E. assuring the production of
goods that meet the highest
standards of luxury.
Quality planning is
project and determining how to
satisfy them.
standards and identifying ways to
eliminate causes of
performance on a regular basis Answer: A
to provide confidence that the
project will satisfy the relevant
quality standards
D. taking action to increase the
effectiveness and efficiency of
the project so as to provide
added benefits to both the
performing organization and the
project customer.
183
Quality management includes

forming and directing a team of
people to achieve a qualitative
goal within an effective cost and
time frame that results in
A. a project completed in the
shortest possible time.
B. a product or service that
conforms to the requirement Answer: B
specification.
C. an award-winning product that
brings public recognition to the
project.
D. an innovative project that
establishes the qualifications of
the project team.
E. B and C.
According to current quality

management thinking, which of
the following approaches to
quality improvement is least
likely to produce positive
results ?
Answer: A
A. increased inspection
B. Continuous improvement
C. Quality circles
D. Statistical quality control
E. Use of worker suggestion
systems
The concept that states "the Answer: B

optimal quality level is reached at
the point where the incremental
revenue from product
improvement equals the
incremental cost to secure it"
comes from
184
A. quality control analysis.

B. marginal analysis.
C. standard quality analysis.
D. conformance analysis.
E. systems analysis.
Which of the following best

characterizes the results of an
increase in quality*?
A. increased productivity,
increased cost-effectiveness,
and decreased cost risk.
B. Reduced productivity and no
change to cost-effectiveness or
cost risk. Answer: A
C. Reduced productivity and an
increase in overall product or
service cost.
D. increased productivity and
cost-effectiveness.
E. increased productivity,
decreased cost-effectiveness
and increased cost risk.
Which of the following Answer: B

statements regarding quality is
false?
A. Quality improvement depends
upon better definition and
increased awareness of the
requirements specifications.
B. Future gains in quality will
often rely on advanced
technology.
C. Recognition of key actions
required of each team member is
necessary to meet quality
objectives.
185
D. Computer-aided design
systems can improve quality, but
only at the expense of an
increase in the cost of design.
E. A and C.
You are sampling items from a

batch and plotting the results on
a control chart. How will an
increase in the number of items
in the sample affect the value of
the standard deviation used to
set the control limit?
Answer: B
A. increase it.
B. Decrease it.
C. No effect on it.
D. First increase it, then
decrease it.
E. First decrease it, then
increase it.
If the level of conformance

directly increases as a result of
new processes. different
resources, or changed methods.
the required cost of monitoring is
likely to
Answer: C
A. increase as well.
B. remain the same.
C. decrease.
D. decrease initially then
increase slightly.
E. increase then tend to level off
The primary driver(s) behind the Answer: E

demand for continual quality
improvement is/are
A. an increase in the number of
186
projects being worked.

B. the government cost
improvement reports that have
created widespread public
interest in quality.
C. the prevalence of media
reports on quality!- circles and
other quality improvement
techniques
D. the need to both reduce costs
and ensure consistency in the
performance of products and
services.
E. b and d.
The concept of quality is based

on
A. meeting luxury goods
standards.
B. producing excellent products
that are superior to other similar
Answer: C
items.
C. conforming to the
requirements specifications
D. maintaining uniformity of
design
E. a and c.
An assignable variance tells us Answer: C

A. our equipment is becoming
obsolete.
B. top management should
initiate increased worker training.
C. there is an identifiable
problem that must he fixed.
D. schedule variances will be
reduced.
E. ours use of quality circles is
187
inadequate
From a high level perspective,

quality
A. is ensured by having
inspectors.
B. cannot be quantitatively
measured.
Answer: D
C. and productivity are
inconsistent objectives.
D. is primarily (85-95%) a
management problem.
E. problems are usually caused
by unmotivated employees.
Which is not a commonly used

quality management tool?
A. Fishbone diagram
B. CSSR report
Answer: E
C. Pareto chart
D. Control chart
E. None of the above (all are
commonly used)
Quality is often influenced by all

of the following except
A. fabrication processes and
methods.
Answer: C
B. supervision.
C. inspection
D. cost of materials.
E. design.
The___ of a product or service Answer: A

most affects its reliability and
maintenance characteristics.
A. design
B. concept
188
C. fabrication
D. performance
E. cost
Random variance in a process,

as measured by the standard
deviation. can be directly
reduced by
A. improving the overall system
of production
B. increasing the number of Answer: E
quality inspectors.
C. making use of run charts.
D. making better use of Pareto
charts.
E. identifying patterns of variance
using control charts.
A project manager notices that all Answer: A

the measurements recorded on a
control chart lie within the control
band range. However, most of
the measurements are below the
midpoint (negative variance).
Quality management practice
offers us what guidance in
dealing with this situation?
A. The project manager should
apply the "rule of seven."
B. There is no problem as long
as the variances lie within the
control band.
C. Negative variance indicates a
problem which should be
remedied.
D. These variances are most
likely caused by random factors.
E. increased worker ownership
189
should be encouraged.
The project management team's

for quality should
A. extend beyond the completion
of the project.
B. stop at the point of delivery. .
Answer: A
C. be significantly reduced by a
good warranty..
D. be ignored by the project
manager.
E. a and c.
On a project, quality should

generally be of
A. equal priority with cost and
schedule.
B. lower priority than cost and
schedule.
Answer: A
C. equal priority with cost, but
higher priority than schedule.
D. equal priority with schedule.
but higher priority than cost.
E. higher priority than cost and
schedule.
100% inspection for defects may

be neither possible nor desirable.
When is sampling for defects
likely to be most useful?
A. When destructive testing is
required
Answer: E
B. When the cost of 100%
inspection is high.
C. When we believe there are
not many defects.
D. a, b, and c.
E. a and b.
190
A fundamental tenet of modern

quality management holds that
quality is most likely to be
achieved
A. by planning it into the project.
B. by developing careful
mechanisms to inspect for quality Answer: A
C. by developing prestigious
products and processes.
D. by striving to do the best job
possible.
E. by conducting quality circle
activities.
Poor quality in a design project is

likely to directly affect
________________ costs.
A. manufacturing/building
Answer: E
B. advertising
C. overhead
D. post-completion support
E. a and d
From the Answer: D

project
perspective,
quality
attributes
A. are used to
determine
how effectively
the performing
organization
supports the
project
B. can be
objective or
subjective in
191
nature.
C. are specific
characteristics
for which a
product is
designed,
built. and
tested
D. b and c.
E. a and b.
From the project manager's viewpoint,

quality assurance involves
A. conducting studies to determine if
design methods will support quality
requirements.
B. identifying applicable laws,
ordinances and regulations that the Answer: E
project must comply with.
C. monitoring inspection activities to
ensure that the work is performed as
specified.
D. a, b, and c.
E. a and c.
Just-in-time (JIT) is the concept of

reducing inventories to
A. 25% of former stock.
B. Less than half of former stock.
Answer: D
C. 75% of peak stock.
D. zero stock.
E. 15% of the cost of the product for a
planned stock.
Of the following statements, which Answer: E

one(s) is/are true?
A. Quality is the usual result when
skilled designers and skilled
192
implementors work on the project.

B. Quality is 10% skill and 90% luck.
C. Quality can be achieved with the
proper combination of personnel,
materials, methods and time to do the
work.
D. None of the above.
E. a and c.
Some organizations today are using

"six sigma", to set the upper and lower
limits on control charts rather than the
traditional sigmas, which are?
A. two Answer: B
B. threes
C. four
D. five
E. twelve
The quality management tool that can

be described as "a diagram that ranks
and displays defects in order of
frequency of occurrence (from left to
right)" is a
Answer: D
A. control control
B. vertical bar chart.
C. histograms.
D. Pareto chant.
E. run chant.
From the project manager's Answer: C

perspective, quality management is
______________ limited to assessing
the attributes of the tools provided to
do the work.
A. always
B. usually
C. not
193
D. seldom
E. intermittently
The primary responsibility for

establishing design and test
specifications should rest with
A. senior management.
Answer: E
B. procurement or purchasing.
C. engineering.
D. manufacturing.
E. quality control.
Which of the following is least likely to

contribute to developing an effective
project team supportive of quality?
A. Commitment to the project
Answer: C
B. Team member flexibility
C. Frequent turnover of personnel
D. Team interest in workmanship
E. Clearly defined goals
Primary responsibility for quality

management in the project rests with
the
A. project engineer.
Answer: D
B. purchasing agent.
C. quality manager.
D. project manager.
E. company president.
The ISO 9000 series is Answer: D

A. a set of instructions for preparing
control charts.
B. a set of guidelines for quality.!
C. a set of forms and procedures to
ensure quality. .
D. an international standard that
describes a recommended quality
194
system.
E. intended to be applied only to
manufactured products.
Unless evidence indicates otherwise, a

process is assumed to be
A. in control.
B. out of control.
Answer: A
C. working at full capacity.
D. working at less than full capacity.
E. operating within required
engineering tolerances.
Which of the following statements best

characterizes the quality management
practice called benchmarking?
A. The ISO term for progress
measurement
B. Comparing planned project
practices to those of other projects. Answer: B
C. A technique used to test certain
types of electronic equipment.
D. The difference between grade'' and
quality.
E. The measurement of customer
satisfaction.
Quality management is defined as the

process of ensuring that a project
meets the ________ of the project's
clients, participants, and shareholders.
A. specifications and statements of
Answer: D
work
B. legal and financial obligations
C. expectations and desires
D. needs and expectations
E. legal and moral requirements
195
The primary components of quality

management are quality ________.
A. inspections, certifications, and
validations
B. philosophy, assurance, and control Answer: B
C. form, fit, and function
D. reliability, maintainability, and
availability
E. insurance, assurance, and warranty
Quality assurance is defined as the

managerial process that determines
________ that provide the customers
with performance standards and
feedback on the performance.
A. time, scope, cost, and resources
B. human resources, dollars, materials,
Answer: D
and duration
C. time, location, duration, and
completion
D. organization, design, objectives, and
resources
E. management, staff, workers, and
contractors
Quality control is the technical

processes that ________ the project's
progress against the performance
standards.
A. inspect, certify, and verify Answer: B
B. examine, analyze, and report
C. inspect, examine, and determine
D. identify, measure, and report
E. reveal, establish, and record
Responsibility within the project for Answer: E

quality must be defined and
promulgated to everyone contributing
196
to the end product. First and foremost,

the ________ has the ultimate
responsibility for conformance to
requirements when provided with the
tools, skills, knowledge, and
opportunities.
A. corporate president
B. director of project management
C. quality assurance manager
D. project manager
E. individual
Self-inspection by the individual

performing the work is used to achieve
quality in a product. The advantages of
self-inspection include ________.
A. immediate feedback to permit
adjustments to the process
B. early identification of errors prior to Answer: E
further integration
C. minimization of end product repairs
and material waste
D. reduction in the number of end
product inspections and tests
E. all of the above
Zero Defects is an element of the

quality management philosophy that is
a ________ for all workers to be
achieved ________.
A. slogan; whenever possible Answer: C
B. slogan; most of the time
C. standard; at all times
D. standard; whenever possible
E. standard; during critical operations
Statistical Process Control is used in Answer: E

quality programs to determine whether
197
repetitive operations meet predictable

standards. The process uses
________ to permit accurate
monitoring of the operation.
A. 100 percent inspection and random
rejection
B. acceptance sampling and automatic
rejection
C. continuous sampling and error
detection methods
D. random sampling and corrective
procedures
E. statistical sampling and control
procedures
Statistical Decision Making includes

Pareto Analysis as a means of
reducing errors in the total project
process. Pareto Analysis ________.
A. is a method of rejecting errors or
variances from standards following
self-inspection
B. is a procedure for ranking the errors
to identify those contributing the most
to failures [PMBOK p. B-2]
Answer: B
C. counts errors or failures to
determine the added cost of all
operations that do not meet the
requirements
D. compares the error rate with the
pass rate to determine the allowable
number of errors per 1,000
E. compares the error rate of
individuals to determine the
compensation for bonuses
Statistical sampling is a method to Answer: C

determine the conformance to
198
requirement for some element or

product of a project. The advantage of
statistical sampling is that it ________.
A. does not require an expenditure of
resources
B. is accurate enough with a sampling
of less than one percent
C. does not require 100 percent
sampling of the elements to achieve a
satisfactory inference of the population
D. needs to be conducted only when
there is a problem discovered with the
end product or when the customer has
some rejects
E. is a good tool to gain customer
confidence during a period of high
rejects
Statistical Process Control uses

diagrams called "Control Charts."
These charts depict horizontal, parallel
lines to represent ________ standard
deviations.
Answer: D
A. six
B. five
C. four
D. three
E. two
When data is plotted on the control Answer: D

charts, the data is of two types R and
X-bar. The R data represent points of a
________ while the X-bar data
represent points of a(n) ________.
A. random sample; cross-matrix
sample
B. real sample; simulated sample
C. 100 percent sampling; 10 percent
199
sampling
D. sampling run; average of several
runs
E. random sampling; continuous
sampling
The cost of quality has been argued as

being primarily driven by the workers.
When items were produced that did not
meet the customers' expectations, the
workers were "found" to be at fault.
Current thinking is that management
has at least ________ percent of the Answer: A
responsibility for the cost of quality.
A. 85
B. 75
C. 65
D. 55
E. 50
Statistical sampling methods are valid

for most projects, regardless of the lack
of repetitive processes, because
________.
A. projects rely on external vendors for
products that must meet contractual
specifications to conform to the
requirements
B. purchased materials will never meet Answer: A
the requirements of the project
C. services are amenable to statistical
sampling even for small lots
D. it looks good to the customer when
there is a mathematical approach to
quality
E. statistics provide a basis for
customer acceptance of the projects
200
A quality program within a project

should be based on ________ of errors
to improve productivity along with
quality levels.
A. early detection Answer: E
B. early correction
C. late detection
D. late correction
E. prevention
The cost of quality is needed to identify

opportunities for improvement. The
cost of quality is, therefore, defined as
the dollar value associated with
________.
A. producing a product that meets the
requirement
Answer: B
B. nonconformance to the requiremenT
C. any cost for quality personnel and
tools
D. any extra cost to hire a quality
consultant
E. all extra efforts to implement a
quality program
In a project, the common parameters

are cost, schedule, and quality. In
relationship to the others, quality
should be ranked ________.
A. first as the prime driver for a project
B. second behind cost but ahead of Answer: D
schedule
C. second behind schedule but ahead
of cost
D. equal to cost and schedule
E. third behind cost and schedule
When errors that affect quality are Answer: E

201
discovered, the procedure to improve

the situation should be to ________.
A. identify the specific error
B. correct the specific error
C. determine the root cause of the error
D. correct the root cause of the error
E. all of the above
A quality audit is a powerful tool in any

quality improvement program. For a
project that is starting a quality
improvement program, the initial audit
is used to ________.
A. identify all the faulty work that has
been completed
B. identify all the work that has been Answer: D
correctly accomplished
C. determine the single most urgent
area for improvement
D. determine the quality baseline from
which improvements will be made
E. evaluate the quality audit's
effectiveness in identifying errors
Customers are the driving force in any Answer: D

project and determine the requirements
to be met. In dealing with customers'
complaints, it is important to ________.
A. avoid commitment to correction on
an "out of warranty" item
B. talk to them until they see the
reason the complaints are trivial
C. give them something more than they
contracted to receive to suppress any
feelings of dissatisfaction
D. provide them with the full scope of
the contracted product or service
E. realize that customers ask for too
202
much and to change their perceptions

about the product or service
requirements
In computing the cost of producing a

quality product, the major areas of
costs contribute to the sale price of the
product. The ratio of the ________
costs determine whether an effective
quality program is fully implemented. Answer: D
A. direct, indirect, and overhead
B. one-time, recurring, and variable
C. variable, fixed, and semi-fixed
D. prevention, appraisal, and failure
E. build, repair, and test
The 14-step process to quality

improvement is a progressive
approach to total involvement of
everyone in a company toward the
production of quality products and
services. The 14-steps do not include
Answer: D
________.
A. management commitment
B. quality improvement team
C. quality measurement
D. goal achievement measures
E. supervisor training
Trend charts reflect the relative status Answer: A

of a program. Trend charts are effective
means of ________.
A. visibly reinforcing the growth of
quality improvements to the workers
B. reflecting the precise status of
quality failures
C. identifying to customers the failure
rates of products
203
D. setting standards and goals for

acceptable levels of quality
E. showing that all goals have been
achieved
In many projects, the end product is a

"service" that does not have physical
characteristics and attributes to be
measured to ensure conformance to
the requirement. When service is the
end product of a project,
measurements ________.
A. do not apply to the service, but the
criterion is pass or fail
B. are always artificial and present only Answer: C
false indications of progress
C. can be established based on
customer expectations and the
responsibility assigned to individuals
D. are not applicable if the service is to
an internal function of the project
E. relate only to the actual
expenditures of funds or receipt or
revenues
Recognition of personnel Answer: C

achievements is an important building
block to the attainment of a superior
quality program. The form of
recognition should be ________.
A. an annual bonus increase paid at
the end of the year
B. an immediate cash award that is
commensurate with the deed
C. a nonmonetary award presented in
a public forum as soon as the deed is
identified
D. a nonmonetary award presented in
204
private
E. a combination of monetary and
nonmonetary award presented in
private
Quality in a project's product is

essential for the enhancement of the
project manager and the selling
organization. To ensure that the
customer perceives a quality product,
the project manager must inform the
customer of the ________ to be used
so the customer will not have a Answer: B
perception of ________.
A. materials; inferior fabrication
B. standards; gold plating
C. practices; poor workmanship
D. pricing; gouging
E. warranty; poor service after product
sale
As one of its goals the project Answer: C

organization has quality to specified
performance measures. When
compared with the functional
organization, the project organization
________.
A. achieves higher levels of quality
B. is always tailored to meet the
205
specific quality goals

C. is less disciplined in the
implementation of quality
D. is more disciplined in the
The technical performance of the

project is derived from the quality
program instituted by the project
manager. Quality control is one part of
the quality program that ________.
A. defines requirements and
performance standards Answer: E
B. measures results of operations
C. compares measured results to
performance standards
D. initiates corrective actions for
variances
E. all of the above
Quality control includes inspection to

ensure that standards of performance
are being met. Inspection includes
________ examination of ________.
A. visual and nonvisual; processes and
components
B. visual and aural; processes and
Answer: C
materials
C. visual and technical; materials and
end products
D. aural and tactile; materials and end
products
E. aural and tactile; processes and
procedures
Quality control methods extend beyond Answer: D

the external characteristics of the
206
product or components of the product.

The types of testing of the product or
components include ________.
A. operator, maintainer, and
environmental
B. stress, destructive, and operating
C. in-house, public, and private
D. laboratory, destructive, and
nondestructive
E. laboratory, fabrication, and product
Each project needs a quality program

plan to define the parameters of the
overall approach to meeting quality
requirements. As a minimum, the
quality program plan addresses
________.
A. the required processes and Answer: E
procedures
B. the inspection plan
C. the types of test to be conducted
D. the documentation requirements for
actions (testing, inspections, etc.)
E. all of the above
. In a quality management information Answer: C

system, there is a need to collect data
and format such data into an
information output that is useful to the
project manager. In developing such an
information system, it is good to
remember that an optimum system
doesn't supply all the information
because ________.
A. there is never enough information
collected
B. the system is incapable of
processing all the required information
207
C. some information costs more to

collect than it is worth
D. some information is not available for
collection and input
E. most information relies on related
data to generate thE proper output
Quality is one part of the three major

parameters of a project. When the
quality in a project exceeds the
specifications, that is called ________.
A. excellence Answer: D
B. superior quality
C. deviation plus quality
D. gold plating
E. silver plating
In the quality area, process control is

becoming an important element of the
manufacturing to rigorous
specifications to provide a consistently
uniform output. The control of a
process is divided into controlling
temperatures, pressures, flows,
Answer: D
________ , and levels in terms of rates
and time.
A. directions, elasticities
B. volumes, distances
C. speeds (velocities), volumes
D. distances, speeds (velocities)
E. lengths, widths
Process control is distinct and separate Answer: B

from the data gathering function in a
quality program. While process control
regulates the functions, data gathering
is used to ________.
A. collect information on the relative
208
performance standards of the process

so the output can be enhanced through
continuous adjustments to the input
functions
B. validate the controlling function as
performing correctly and provide
information on equipment servicing
intervals
C. provide the historical records for
production lots as to the specifications
and actual measurements of a product
D. generate the control charts to
determine the variances in the product
and the number of nonconforming
products
E. ensure the products are within
tolerances and to identify those
products that require reworking or
scrapping
In the area of quality, project managers Answer: D

are struggling with the training and
indoctrination of individuals in the need
to do the work right the first time to
conform to the requirement.
Occasionally, the project manager will
discover an individual, either in the
planning or actual work, doing more
than is called for in the specification.
These individuals need training to
reduce the level of "over building"
because ________.
A. the extra value given to the
customer is not recognized or needed
to complete the project
B. the increases to the system
specifications place that portion out of
balance with the other system
209
components
C. it leads to increased customer
requirements for other parts of the
system
D. exceeding the specified requirement
is wasting time and money at no value
added to the project
E. the project must be reworked in
other areas to increase the level of
"goodness" to the same as the "over
build"
Fast-tracking is also known as

A. overtime and contracting
B. utilizing additional resources
Answer: D
C. crashing
D. concurrent engineering
E. all of the above
In the network diagram for a

completely unrealistic schedule, you
would likely find
A. no slack available for critical tasks
B. late start dates earlier than early Answer: E
start dates
C. negative total float
D. b and c
E. all of the above
Time-limited scheduling is best used

when
A. there is negative total float
B. resources can be better utilized by
Answer: B
taking advantage of existing free float
C. a finish-to-start relationship exists
D. fast-tracking
E. b and c
210
The major difference(s) between time-

limited scheduling and resource
leveling is (are)
A. Time-limited scheduling reschedules
based on late start dates, while
resource leveling reschedules based
on late finish dates
B. Time-limited scheduling considers
total float but resource leveling does Answer: C
not
C. Time-limited scheduling reschedules
activities according to resource
availability while resource leveling
attempts to smooth out resource
requirements by rescheduling
D. a and c
E. all of the above
Which relationship dependency is

indicative of concurrency?
A. Start-to-start
B. Start-to-finish Answer: A
C. Finish-to-start
D. Finish-to-finish
E. a and d
Susie has just told Diane, the project Answer: E

manager, that she hasn't started
working on her planned activity that
was supposed to start a week ago.
Which factors will influence Diane's
decision whether to escalate to Susie's
manager?
A. If the delay is within the amount of
free float
B. If the activity has negative float
C. If time-limited scheduling was used
D. If Susie has a reputation for being
211
undependable
E. All of the above
Susie's delays are getting worse and

worse. All available slack time for her
task has been used. Any additional
delays would
A. affect the slack available for
subsequent tasks Answer: A
B. require a determination of the late
finish date
C. require crashing or fast-tracking
D. a and b
E. all of the above
Which of the following is true about the

critical path in a network diagram?
A. The critical path represents the
shortest single path through the
network
B. Activities on the critical path hold the
greatest risk for the project
C. Activities on the critical path have
their early start date equal to their late Answer: C
start date if the shortest possible
duration of the project is to be achieved
D. Activities on the critical path have
their early start date equal to their late
finish date if the earliest end date of the
project is to be achieved
E. Activities on the critical path can
never have float
. The affect of additional resources on Answer: E

the critical path
A. is likely to reduce the project end
date by creating parallel tasks
B. is likely to require that a revised
212
network diagram be created

C. is negligible
D. has the same effect as crashing this
path
E. a, b and d
If the Early Start Date = October 10th,

the Late Start Date = October 12th, the
Early Finish Date = October 12th and
the Late Finish Date = October 14th,
and all days that week are working
days available to the project, compute
Answer: C
the number of slack days for this task.
A. 0
B. 1
C. 2
D. 3
E. 4
If free float on a task is exceeded, it

A. should be of concern to the project
manager
B. will impact the early start of the
succeeding task
Answer: E
C. could impact the late start of the
succeeding task
D. could jeopardize the success of the
project
E. all of the above
The purpose of performing a backward

pass is to
A. determine the critical path
B. determine where there is slack Answer: E
C. determine where there is float
D. determine the late finish
E. B, C and D
213
A concurrent relationship is shown on a

network diagram as
A. an arrow going from the start of one
task to the start of another
B. an arrow going from the start of one
Answer: A
task to the finish of another
C. an arrow going to the start of two or
more tasks
D. a and c
E. b and c
The effective management of the use

of time in a project is usually critical to
the successful accomplishment of the
project's objectives. There are several
types of time management tools (called
scheduling systems or project
management systems) that fall into
three categories referred to by the
abbreviations CPM, PERT, and PDM.
Respectively, these three abbreviations
stand for ________.
A. critical path means, program
evaluation and repetitive technology,
Answer: D
probabilistic decision method
B. critical path method, program
evolution and review timing, probability
design method
C. critical planning method, program
evaluation and review technique,
program detail method
D. critical path method, program
evaluation and review technique,
precedence diagramming method
E. critical plotting method, program
evaluation review technique,
214
Scheduling networks are all similar in

their functions and general approach to
building a schedule. The major
difference between PERT and CPM
network input information requirements
is ________.
A. PERT will only accept whole units of
time whereas CPM will accept
fractions/decimals of units of time (e.g.,
2 hours vs. 2.1 hours)
B. CPM requires that all time estimates
Answer: C
are in hours whereas PERT will accept
any unit of time (e.g., hours, days,
weeks)
C. PERT requires three time estimates
to compute an average whereas CPM
requires one point estimate
D. PERT is primarily a time scheduling
system whereas CPM also addresses
cost and resources
E. PERT requires less time to load the
input information than does CPM
PDM differs from PERT and CPM

primarily in its use of ________.
A. dummy activities to constrain events
B. lag time connections to slow the
Answer: D
project's progress
C. arrows to represent work
D. nodes/boxes to represent work
E. nodes/boxes to represent slack time
PDM uses four different relationships Answer: D

between its nodes to reflect
connectivity and lag time, but it does
not include ________.
A. start-to-finish
B. finish-to-start
215
C. finish-to-finish
D. end-to-end
E. start-to-start
The four distinct phases that are used

to control the work during the project's
life cycle are ________.
A. planning, positioning,
implementation, and close-out
B. concept, planning, implementation,
and close-out Answer: B
C. feasibility, concept, implementation,
and execution
D. concept, feasibility, planning, and
implementation
E. planning, execution, close-out, and
post-project
The work breakdown structure is a

critical tool for the project and the
planning of the project. The lowest
level of the work breakdown structure
represents the ________ for the
schedule network. Answer: D
A. time duration
B. sequencing of work (or logic)
C. responsibility for work execution
D. task activity
E. task timing by the calendar
The schedule duration of a project is Answer: E

dependent upon the available time until
delivery of the system/product. In
addition to time, a major contributor to
the duration of a project is the
________.
A. skill of the scheduler
B. cost of labor for planners
216
C. type of automated scheduling

system used
D. frequency of updates to the
schedule
E. availability of resources for the
project
The division of the work breakdown

structure into smaller tasks is continued
until the lowest level that represents a
work package is no more than
________.
A. a cost of $900 for each day of work
B. 80 hours of calendar duration Answer: C
C. 80 hours of total resource (labor)
time
D. what can be accomplished by one
person in one week
E. what can be accomplished by one
team in three weeks
Suppose the summary network for a

major project has 500 activities. For a
briefing requirement for senior
management, the best method of
displaying the progress on the project
(schedule vs. calendar) is by using a
________.
A. bar chart of all activities on the
summary schedule Answer: A
B. network of all activities on the
summary schedule
C. narrative description of the active
tasks
D. combination of the full (detail)
network and the summary network
E. histogram to show percent of work
on the project that has been completed
217
The bar chart does not explicitly show

the ________ between the activities,
which makes it difficult to impute the
effects of a delay on one activity.
A. completed work Answer: E
B. unfinished work
C. duration
D. timing
E. dependency relationships
In the preparation of a network

(schedule), factors that must be
considered to ensure that the end
product meets the needs of the project
manager do not include ________.
A. project budget
B. project objectives Answer: A
C. responsibility of achieving project
objectives
D. organization of resources
available/required
E. information requirements of
management
The rules of network logic state that,

except for an independent or time
phased start, an activity may not begin
before ________.
A. all preceding activities are started
Answer: C
B. most preceding activities are
complete
C. all preceding activities are complete
D. resources are ordered
E. resources are identified
As originally developed and employed, Answer: D

CPM and PERT could have only
________ start point(s) and ________
218
end point(s), but the current networks

can have ________ start and end
points.
A. two; one; up to six
B. one; two; up to six
C. one; one; four
D. one; one; several
E. one; one; two
In an "activity-on-the-arrow" (i-j)
network, the nodes represent
________ and may also be ________.
A. a stopping point; transition points
B. zero time usage; milestones
C. a use of one unit of time; decision Answer: B
points
D. connector points for events;
duplicates of other nodes
E. activities of importance; major
consumers of time
In preparing the time estimates for a

project, the general rule is to use the
________ to estimate each activity.
A. engineers who will be working on
the project
B. planners who are preparing the
Answer: C
schedule
C. knowledgeable supervisory
personnel
D. customer's representative
E. experience of an independent
contractor
Often the detailed network contains so Answer: D

many activities that it is difficult to
follow the logic and track progress over
relatively long periods of time. A
219
summary network is used for this

purpose. To develop a summary
network from a detailed network,
________.
A. develop a new logic network with
fewer activities
B. delete activities until the logic is no
longer overwhelming
C. eliminate the connecting nodes or
lines to let the logic flow together
D. group like activities in a series to a
higher level of work
E. group like events in a series to
obtain summary events
The computation of the duration of the

network after all logic is completed and
all time estimates are included in the
schedule requires a forward and
backward pass (computation). These
two functions result in ________.
A. compressing any activities that
exceed a specified duration
B. sorting all activities into a forward Answer: D
group and a backward group
C. generating new logic for the
schedule if it exceeds the desired time
duration
D. generating the float (slack) on each
activity and identifying the critical path
E. separating the critical path from the
noncritical path activities in the network
The critical path, by definition, is Answer: B

considered the longest track through
the network. The computation of the
critical path will determine that the
network has ________ longest (time)
220
path(s).
A. only one
B. one or more
C. always more than one
D. always more than two
E. never more than two
A network can have minus float on the

critical path but never positive float
(under optimum scheduling). Some
common causes of negative float are
that ________.
A. a fixed end date for the project
prohibits the schedule from moving
beyond a set date
B. fixed milestones in the schedule Answer: E
prohibit sliding of dates beyond a set
date
C. work may have been added on the
critical path
D. changes may have been made to
either the fixed end date or a fixed
milestone
E. all of the above
Suppose a negative slack/float Answer: E

condition has been discovered in the
schedule because of poor logic in the
initial network. The logic is corrected,
but the schedule is now in a negative
five-day condition. The method(s) to
remove the negative slack is/are to
________.
A. change the schedule logic to
conduct parallel activities to condense
the longest path
B. add resources on the critical path
until some activities are reduced a total
221
of five days
C. use a combination of added
resources and change to network logic
D. obtain authority to extend the
schedule by five days
E. all of the above
In a precedence diagram (PDM), the

notation "SS6" on one of the
connecting lines means ________.
A. start soonest after completion of
activity six
B. subtract six units of time from the
Answer: E
path
C. scheduled start on the sixth day of
the month
D. start-to-start slack of six units of time
E. start-to-start with a delay of six units
of time
PERT uses three time estimates to

arrive at a single "best" estimate for
each activity. This is assumed to better
account for uncertainty in the
estimating process. The formula for
computing the "PERT estimate" is
________. (Note a = optimistic, m = Answer: C
most likely, b = pessimistic)
A. (a+m+b)/4 = mean
B. (a+4m+b)/4 = mean
C. (a+4m+b)/6 = mean
D. (a+5m+b)/6 = mean
For purposes of computing the mean Answer: E

and standard deviation, it is assumed
that the PERT distribution is similar to a
normal curve. Therefore, PERT
222
estimates are assumed to have

________ standard deviations and that
________ percent of the estimates are
within this distribution.
A. two; 95
B. three; 95
C. four; 99.7
D. five; 99.99
E. three; 99.7
Suppose a network (activity-on-the-

arrow, i-j) is analyzed and that it is
noted that one node has six input
arrows, including two dummy activities,
and two output arrows. This is a
violation of ________.
A. the rule stating that no more than
three inputs or outputs can be used on
one node
B. the rule that limits the output to one
Answer: C
activity (i.e., that event triggers one
activity)
C. no rule-the node is not limited to a
given number of inputs or outputs
D. the rule that dummy activities are
limited to one per node of either input
or output
E. the logic for preparing i-j networks,
which can compute only a total of six
inputs and outputs combined
In a precedence diagram (PDM), the Answer: A

nodes are the activities and each
represents a discrete activity. The
placement of the connecting lines to
other activities are significant because
the lines show ________.
A. one of the four relationships of
223
connectivity
B. a dashed connectivity for dummy
activities
C. the duration of delay between the
finish of one activity and the start of
another
D. the amount of work being
accomplished when converted to a bar
chart
E. resources needed to complete the
next activity
Fast-tracking requires more

sophisticated schedule and control
methods because it is a practice that
________ the schedule to place the
system in operation at ________.
Answer: E
A. increases; a later date
B. stabilizes; an earlier date
C. increases; minimum cost
D. moderates; the first opportunity
E. compresses; an earlier date
The trend in computerized scheduling Answer: B

systems is toward the use of the
(activity on the node) as compared to
the early systems (PERT and CPM)
with activity on the arrow. In teaching
new project personnel the scheduling
system, it is helpful to teach both
methods because ________.
A. some of the activity on the arrow
systems may need to be converted to
activity on the node
B. it provides a better basis for
understanding networking techniques
C. some activity on the node systems
224
may need to be converted to activity on

the arrow
D. some systems use a mixture of both
techniques in an individual network
E. there is often a need to schedule in
both methods for one project
The success of a project is often

unknown until completion because
there was little or no planned
evaluation of the realistic progress and
trends for the future. Determining
whether a project will finish on time is
best accomplished by ________.
A. comparing the baseline schedule
with the current status Answer: A
B. comparing the current status with
the expenditure rate
C. running several iterations of the
network to conduct a "what if" exercise
D. analyzing the work completed
versus the work scheduled
E. obtaining the opinions of several
members of the project team
Suppose you are the project manager Answer: B

for a major project that has 14
subcontractors. Managing the schedule
is considered critical to the successful
completion and activation of the
system. To ensure the best control, you
direct the project control section leader
to develop a schedule that ________.
A. includes interface points for
subcontractors, and you let the
subcontractors develop their detail
schedules for individual management
of time
225
B. includes the detailed activities of the

subcontractors as well as the details of
your work
C. excludes any subcontractor
schedule because the subcontractors
are paid to manage to meet the critical
interface dates
D. includes only the subcontractors'
schedules and their vendors' or
subcontractors' detail schedules
E. compresses all (yours and
subcontractors') activity durations by
10 percent, which will be used as a
reserve
Suppose a subcontractor informs the

project manager that there is a
slippage on the schedule of his/her
work by at least two weeks. This work
is on the critical path and will negatively
impact the project by two weeks if
nothing is done. The project manager
should ________.
A. review the contract to determine the
subcontractor's obligation to meet the
current schedule
Answer: E
B. review the subcontractor's schedule
to determine whether there is an actual
two-week delay
C. review the situation to determine
why the subcontractor believes s/he is
going to betwo-weeks late
D. review the project master schedule
to determine if there is going to be a
two-week impact on the project if the
subcontractor delays his/her schedule
E. all of the above
226
The project manager identifies a

potential problem with the schedule in
that many of the supervisors are not
starting work on schedule, but are
waiting until all the float (slack) is
consumed on an activity before
starting. In a few cases, this practice is
"pushing" following activities out and
absorbing the float downstream. The
project manager directs that this
practice stop and to ensure compliance
________.
A. "freezes" the start of all activities to
identify when supervisors initiate late
starts
B. "freezes" the end point of all Answer: A
activities to identify when the
supervisors initiate late starts
C. converts the schedule to a "fixed"
activity network so the supervisors
have only a given time frame to
complete activities
D. informs the supervisors that any
delays in the scheduled activities will
result in dismissal of the responsible
supervisor
E. dismisses the most frequent abuser
of the scheduling system as an
example of the action that will be taken
against supervisors for irregular
practices
During a review of the Gantt (bar) Answer: E

chart, the project manager identifies
some tasks that have not been started
and are more than two weeks late. All
of these activities are the responsibility
of one supervisor. The project manager
227
should ________.
A. determine whether the Gantt chart
has the most current information
B. determine whether the supervisor is
accurately reporting progress
C. review the system of information
inputs to determine the accuracy of the
system
D. discuss the late activities with the
supervisor to determine why there are
delays in the schedule
E. all of the above
When properly managed and used,

float (slack) in a schedule provides
some flexibility in a schedule. The
ownership of float on a major contract
may be questioned by the owner
(buyer), prime contractor, and
subcontractors. Therefore, it is best to
Answer: B
include the float ownership in
________.
A. the project management plan
B. the contract(s)
C. the project charter
D. a separate agreement
E. the master schedule
There is a belief that all task durations Answer: E

can be altered by increasing or
reducing the work force. Following this
belief, one could compress the
schedule to one-half by doubling the
work force. The fallacy with this
procedure is that ________.
A. the skills may not be available to
double the work force
B. the process may not facilitate the
228
additional personnel (such as a

sequential assembly operation)
C. there may not be sufficient physical
space to accommodate the larger work
force
D. the compression of work into fewer
hours by more people may be
inefficient
E. all of the above
A project is scheduled to be completed

in a set number of days, weeks, or
months. The schedule can often be
impacted to the extent that work activity
must be accelerated by the increase of
people and equipment. The most
frequent reason for acceleration is that
________.
A. an increase or change in the scope
of work must be completed within the
original time frame
B. the progress of work activities has
Answer: A
been poor in the beginning of the
project
C. the project was started late and the
schedule end date must be met
D. an opportunity to place a system in
service at an early date forces the
owner to impose a new completion
date
E. the project manager believes that
the original schedule was not valid and
that acceleration is needed to meet the
planned end date
The project schedule is more than a Answer: D

document that lays out the activities
over time to represent the time
229
dimension of the project; it is a

management tool to be used for
decision making. As such, the schedule
is used by the project management
team to ________.
A. measure, delay, record, distribute,
analyze, and direct
B. emphasize, visualize, analyze,
conceptualize, report, and record
C. promote, highlight, monitor, control,
forecast, and report
D. plan, schedule, monitor, control,
report, and forecast
E. all of the above
The project schedule is a dynamic

document that is maintained in
computer systems and that initially
reflects the baseline plan. As the
schedule is updated to correct errors,
change the scope, or reflect actual
duration, the baseline schedule
________.
A. becomes the current schedule with
Answer: B
all changes
B. is maintained as the original
baseline for post-project evaluations
C. is deleted as being unusable and
unneeded to manage the project
D. is amended to remove any errors
but maintained for post-project
evaluations
The schedule is an important Answer: C

document to plan and control the use
of time and to reflect progress on the
project. As such, it should be
230
developed during the ________ phase

and updated during the ________
phase.
A. conceptual; planning
B. implementation; execution
C. planning; implementation
D. execution; close-out
In scheduling, efficiency
demands that the least
sophisticated scheduling
system be used to save on
resources and
maintenance time. In a
small, simple project with
few interdependencies, the
most efficient means of
graphically portraying the
schedule would be by
means of a ________. A
complex project with many
interdependencies would
Answer: A
require a ________
system that would facilitate
ease of planning and
updating as well as
reporting progress.
A. Gantt chart;
computerized scheduling
B. histogram; automated
bar chart
C. Pareto diagram;
computerized CPM
D. CPM network;
computerized scheduling
231
The project schedule is the

key to tracking progress in
the project. Schedule reports
should be easily understood,
practical, pertinent, and
current because of their
Answer: A
intended use by ________.
A. engineers
B. planners
C. managers
D. the scheduling team
E. all of the above
The main difference between

the two types (ADM and
PDM) of the CPM of
scheduling is the
A. placement of the activity
on the logic diagram line
B. ADM is a deterministic
method whereas the PDM is
Answer: A
a probabilistic method
C. PDM is a deterministic
method whereas the ADM is
a probabilistic method
D. PDM is a more accurate
method
E. ADM is a more accurate
method
The overall duration of the Answer: E

project schedule is influenced
by all of the following except
A. Using mandatory
dependencies as constraints
B. Using discretionary
dependencies as constraints
C. The availability of the
232
resources which are assigned

to perform the work
D. The capabilities of the
to perform the work
E. Using the ADM insteady of
the PDM of scheduling
The Program Evaluation and

Review Technique method of
schedule differs from the
CPM because the PERT
method uses
A. Weighted averages of
activity durations to calculate
project duration
B. "Dummy" activities to Answer: A
represent logic ties
C. "Free float" instead of
"Total float" in the schedule
calculations
D. Bar charts instead of logic
diagrams to portray the
schedule
E. Segmented network logic
The "fast-tracking" method of Answer: B

schedule compression
involves
A. The use of industrial
engineering technques to
improve productivity; thereby
finishing the project earlier
than originally planned
B. Work package execution
thereby increasing risk
C. Going on a "mandatory
overtime schedule" in order to
233
compelte the project earlier

D. Calculating the percentage
of potential schedule overrun,
and reducing each
activity'sduration by that
percentage in order to enable
the project to complete on
schedule
E. Assigning "dedicated
teams" to the critical path
activities
The project schedule is useful

in the generation of many
important documents during
the life span of the project. All
of the following documents
may be generated by a
project schedule except
Answer: C
A. Resource Utilization
Histograms
B. Cash Flow Forecasts
C. WBS
D. Performance
Measurement Baseline
E. Purchase Order Curves
As of the data date, your

project schedule has a BCWS
of 100. The BCWP, however,
is 110. This tells you that your
project is currently 10%
A. Behind schedule Answer: B
B. Ahead of schedule
C. Over budget
D. Under budget
E. Ahead of schedule and
over budget
234
In what way does free float

differ from total float?
A. Free float is the amount of
Total float that does not affect
the end date, whereas total
float is the accumulated
amount of Free float.
B. There is no difference - the
two terms are functionally
equivalent
C. Free float affects only the
Answer: C
early start of any immediately
following activities
D. Free float is commonly
referred to as "slack time",
wehereas total float is
commonlyreferred to as "float
time".
E. An activity's Free Float is
calculated by subtracting its
total float from the critical
path's Total Float.
An example of a "soft logic" Answer: B

dependency, as opposed to a
"hard logic" depencency is
A. Project A, the company's
participatin in a Pump
Industry Trade show,
depends on the successful
completion of Project B,
which is building the
prototype punp that is going
to be displayed
B. To install the plumbing and
electrical work at the same
time on a single family
dwelling.
235
C. To schedule all unloading

of equipment weighing in
excess of fifty tons
becausethe daily rent on the
crane with that lifiting
capability is $10,000.
D. For the shrink-wrapping on
the finished box of software to
depend on enclosing the
manual and software first.
E. To schedule the final
testing activity of a computer
to start seventy-two hours
after the mandatory seventy-
two hour "burn-in" period.
One way that the Graphical Answer: A

Evaluation and Review
Technique differs from the
Program Evaluation adn
Review Techniques is that it
A. Allows the relationships in
the logic diagram to contain
loops
B. Represents the Project
Baseline Chart in a
superimposed fashion over
both the logicdiagram and teh
Gantt Charts
C. Uses Object Oriented
Programming techniques to
allow resource histograms
thatare attached to the
project' sGantt Charts
D. Represents the duration of
the project activities in a
probabilistic fashion
E. Represents the duration of
236
the proejct activities in a

deterministic fashion
Your schedule analysis has

shown that your project has a
high likelihood of
experiencing a schedule
overrun. You know this
because the BCWP is much Answer: D
A. Higher than the ACWP
B. Lower than the ACWP
C. Higher than the BCWS
D. Lower than the BCWS
E. Higher than the CPI
The schedule shoud be "re-

baselined" when
A. A sequence of activities
has taken longer than
originally planned
B. The scope has been
increased by the client, with
an associated approval of the
increase
Answer: B
C. The productivity within a
certain discipline has been
higher than originally planned
D. A high-duration activity has
been accomplished "out-of-
sequence"
E. Problem experience
dictates, in order to justify
changes to the client
The key inputs into activity Answer: D

definition are
A. Work breakdown structure,
project schedule, and network
237
diagram
B. Project schedule, progress
reports, and change requests
C. Project network diagram,
constraints, and durations
D. Work breakdown structure,
scope statement, and
historical information that
supports the applicable
activity
E. Scope statement, work
breakdown structure, and
changes required
To decrease the total project

duration for the least cost is
called
A. Duration compresesion
B. Crashing
Answer: B
C. PERT
D. ADM or PDM forward and
backward pass to determine
the critical path
E. Fast Tracking
A Gantt chart is useful in

determining
A. The level of effort of a task
B. When a task starts and
stops
Answer: B
C. How tasks are related to
each other
D. Who is assigned to do a
task
E. Relative priority of tasks
A network analysis technique Answer: D

that allows for conditional and
238
probabilistic treatment of
logical relationships is known
as
A. The WBS
B. The Gantt Chart
C. Time scaled network
diagramming
D. GERT
E. CPM
PERT is used for

A. Developing teh WBS
B. Developing cost
histograms
C. Estimating project duration
when there is a high degree
of uncertainty with the
individualactivity duration
estimates Answer: C
D. Presenting project
summary status to upper
management
E. Determining project
duration when it is necessary
to factor in the conditional
probabilistictreatment of
logical relationships
The PDM provides project Answer: C

managers with knowledgte of
A. All levels of the WBS
B. Tasks likely to be involved
in the project integration and
resource allocation functions
C. A graphical representation
of the task interdependencies
D. What the project
completion date is
239
E. Project duration analysis of

which sequence of activities
has the least flexibility
Analogous estimating is also

called
A. Bottom-up estimating
B. Top-down estimating
Answer: B
C. Multiple dureation
estimating
D. Deductive estimating
E. Inductions estimating
The critical path is calculated

by establishing the following
dates
A. Start to start, start to finish,
finish to finish, finish to start
B. Early start, early finish, late
start, late finish
C. Predecessor to successor, Answer: B
predecessor to predecessor,
successor to successor
D. Primary to secondary,
primary to finish, secondary
to secondary, finish to finish
E. Planned start, actual start,
planned finish, actual finish
Fast Tracking in time Answer: A

management is
A. Doing some or all activities
in parallel rather than in
sequence
B. Preparing progress reports
on a quick turnaround basis
C. The timely input of data to
calculate the critical path
240
D. Reducing the time allowed

for each project activity
E. Minimizing float
The most important element

necessary for project control
is
A. Upper management
commitment
B. Responsibility over
Answer: D
resources
C. A labor distribution
reporting system
D. Clear requirements
E. Sufficient management
reserve
A precedence diagram and

an arrow diagram are both
examples of networks. Which
statement describes the
primary difference between
them?
A. The arror diagram
incorporates PERT in the
activity duration
Answer: B
B. The precedence diagram
represents activities as nodes
C. The arrow diagram does
not indicate critical path
D. The precedence diagram
uses float as part of the
activity duration
E. None of the above; they
are virtually identical
Which term describes a Answer: A

modification of a logical
241
relationship that delays a

successor task?
A. Lag
B. Lead
C. Float
D. Slack
In the earned value method of

progress performance
measurement, schedule
variance is a measure of the
time deviation between the
actual progress and the
planned progress that is
Answer: D
measured in
A. Workdays
B. Calendar days
C. Resource units
D. Monetary units
E. Monetary units and time
units
Milestones are not

A. Activities of zero duration
B. Significant events in the
project life cycle
C. Measures of achievement
for expenditures of money or
Answer: E
time
D. Set by project
stakeholders
E. Best utilized when
denoting start and finish of all
activities
Many resource leveling Answer: E

algorithms are available to
242
project schedulers. Which of

the following is not used as a
basis for resource leveling?
A. Slack
B. Early dates
C. Late dates
D. Critical path priority
E. Resource production rate
The network diagram

A. Illustrates project team
member communication
B. Identifies the scheduled
start and end dates of key
activities and administrative
tasks Answer: C
C. Displays the logical
relationships between project
activities
D. Provides information on
schedule performance
The goal of resource- Answer: B

constrained scheduling is to
A. Organize time on
construction projects
B. Minimize the overall
project duration given the
available resources
C. Minimize overtime
expenses by assigning
resources within normal work
hours
D. Maximize the efficiency of
available resources based on
activity sequences
E. Increase productivity
243
through fast-tracking and

crashing procedures
Project time management

includes the proceses to
ensure timely completion of
the project. The major
components of time
management are
A. Activity definition, activity
sequencing, activity duration
estimates, activity cost
estimates, and schedule
development
B. Activity definition, activity
sequencing, activity duration
Answer: B
estimates, schedule
development, and schedule
control
C. Activity sequencing,
schedule development, risk
quantification, and schedule
control
D. Schedule development,
schedule control, and earned
value assessments
E. Activity definition, duration
estimates, activity scheduling,
and resource control
Activity A has a duration of 3 Answer: D

days and begins on the
morning of Monday the 4th.
The successor activity, B, has
a finish-to-start relationship
with A. The finish-to-start
relationship has 3 days of lag,
and activity B has a duration
244
of 4 days. Sunday is a
nonworkday. What can be
determined from these data?
A. The total duration of both
activities is 7 days
B. Calendar time between the
start of A to the finish of B is
11 days
C. The finish date of B is
Wednesday the 13th
D. A and B
E. A, B, and C
Schedule control is
concerned with
A. Influencing the factors that
create schedule changes to
ensure that the changes are
beneficial
B. Determining that the
schedule has changed Answer: E
C. Managing the actual
changes when and as they
occur
D. Working to integrate
schedule control with other
control processes
E. All of the above
"I cannot test the software Answer: D

until I code the software."
This expression describes
dependencies?
A. Discretionary
B. Soft
C. Preferential
D. Mandatory or hard
245
E. Regulated
The schedule development

technique that provides early
and late start and finish dates
for each acivity is
A. SPC analysis Answer: C
B. GERT
C. CPM
D. Monte Carlo simulation
E. Expected value
Float, or slack, is a measure

of
A. Free time
B. Scheduling constraint Answer: D
C. Resource availability
D. Scheduling flexibility
E. Underscheduled resources
In project time management,

fast-tracking means
A. Reducing the duration of
critical path activities to
shorten project duration
B. Reducing project duration
by redefining logical
relationships
C. Using only the best Answer: B
resources to accomplish work
as quickly as possible
D. Coordinating efforts with
other projects to reduce
administrative friction
E. Using state-of-the-art
software to measure project
progress
246
Several tools and techniques

are available for activity
sequencing. The tool or
technique selected can be
determined by several
factors. If the project manager
decides to include SUBNETS
or FRAGNETS as part of his
or her scheduling technique,
what would that decision say
about the project?
A. The work is unique
Answer: C
requiring special network
diagrams at various stages
B. The software that
manages resources is
available over an existing
electronic network
C. Several identical or nearly
identical series of activities
are repeated throughout the
project
D. A and B
E. A and C
Several types of float are

found in project networks.
Float that is used by a
particular activity and does
not affect the float in later
activities is called Answer: B
A. Extra float
B. Free float
C. Total float
D. Expected float
E. Stacked float
Decomposition is a technique Answer: C

247
used for both scope and

activity definition. Which
statement best describes the
role decomposition plays in
activity definition as
compared to scope
definition?
A. Final output is described in
terms of work packages in the
WBS
B. Final output is described
as deliverables or tangible
items
C. Final output is described
as activities or action steps
D. Final output is described in
terms of objectives that relate
to the scope statement
E. Decomposition is used the
same way in scope definition
and activity definition

formulas provides the most
accurate result for computing
activity duration?
A. AD = Work quantity divided
by Production Rate
B. AD = Work quantity divided
Answer: A
by Number of Resources
C. AD = Production rate
divided by Work quantity
D. AD = (Production rate
times Work quantity) divided
by Number of Resources
The three main types of Answer: C

248
diagramming methods are

A. AOA, PERT, and CPM
B. PERT, CPM and GERT
C. Precedence, arrow, and
conditional
D. AON, AOA and PDM
E. ADM, PDM and AON
To assess the implications of

crashing a project, a project
manager should first compute
A. Cost and time slope for
each activity that can be
expedited
B. Cost of additional
resources to be added to the
project Answer: A
C. Time that will be saved in
the overall schedule when
tasks are expedited
D. Changes in technology
that result from crashing the
project
E. Three probabilistic time
estimates of PERT
Conditional diagramming Answer: A

methods such as GERT are
used
A. Because PDM and ADM
do not allow nonsequential
activities, such as loops or
conditional branches
B. For a graphical
representation of the network
C. To show the four types of
dependencies (finish-to-start,
finish-to-finish, start-to-start,
249
and start-to-finish)
D. To help expedite the
preparattion of a project
network diagram
E. To easily display dummy
activitites in a network
Which of the following is NOT

an output from activity
duration estimating?
A. Activity duration estimates
B. Basis of estimates Answer: D
C. Activity list updates
D. WBS updates
E. An indication of the range
of possible results
The primary outcome of

performing a forward pass on
a network diagram is the
determination of the
A. Earliest time each activity
in the network can start and
finish Answer: A
B. Amount of resources
required to complete the
project
C. Project's total float
D. A and B
E. A, B, and C
The project schedule may be Answer: E

presented graphically as a
A. Bar chart
B. Project network diagram
with date informaton added
C. Milestone chart
D. Time-scaled network
250
diagram
E. All of the above
Unlike bar charts, milestone

charts show
A. Scheduled start or
completion of major
deliverables and key events
Answer: A
B. Activity start and end dates
C. Expected durations
D. Dependencies
E. Logical relationships and
critical path
An activity has an early start

date of the 10th and a late
start date of the 19th. The
activity also has a duration of
4 days. There are no
nonworkdays. From the
information given, what can
be concluded about the
activity?
A. Total float for the activity is Answer: E
9 days
B. The early finish date of the
activity is the end of the day
on the 13th
C. The late finish date is the
25th
D. The total calendar time to
complete the activity is 4 days
E. A and B
The basis for measuring and Answer: A

reporting schedule
performance is the
A. Schedule baseline
251
B. Number of change
requests
C. Difference between
planned and actual events
and activities
D. Need for duration
compression techniques
E. All of the above
Which tool provides a basis to

identify the work that must be
scheduled?
A. Kanban chart
Answer: B
B. WBS
C. Budget
D. Master schedule
E. Gantt chart
Although several factors

should be considered when
developing estimates, the
primary basis for estimating
activity time and cost
estimates is Answer: D
A. Productivity rates
B. Resource usage
C. Resource availability
D. A and B
E. A and C
Determining activity durations Answer: E

require developing estimates.
Typical input to consider in
developing an estimate
includes which of the
following?
A. Resource requirements
B. Resource capabilities
252
C. Project team knowledge

D. Past project files
E. All of the above
Activity A has a pessimistic

(P) estimate of 36 days, a
most likely (ML) estimate of
21 days, and an optimistic (O)
estimate of 6 days. What is
the probability that activity A
will be completed in 16 to 26 Answer: B
days?
A. 55.70%
B. 68.26%
C. 95.46%
D. 99.73%
E. Cannot be determined
The major difference between

PERT and CPM is that PERT
A. Uses the distribution's
mean (expected value) in
computing the schedule
B. Uses the most likely
estimate to compute float Answer: A
C. Focuses on calculating
float to determine which
activities have the least
scheduling flexibility
D. A and C
E. A, B, and C
Updates to the WBS, which Answer: C

are most likely to occur when
the project involves new or
unproven technology, are
often called
A. Modifications
253
B. Enhancements
C. Refinements
D. Alterations
E. Permutations
A milestone is best described

as
A. A combination of related
activities and events
B. An intersection of two or
more lines or arrows
commonly used for depicting
an event or activity
C. An identifiable point in a
Answer: C
project that denotes a
reporting requirement or
completion of an important
activity
D. A specific project task that
requires resources and time
to complete
E. The last stage leading to
project completion
In project time management, Answer: E

crashing means
A. Reducing project duration
by redefining logical
relationships
B. Reducing computer
network downtime for
schedule risk modeling
C. Applying additional
resources to all project
activities
D. Randomly applying
resources to critical path
activities
254
E. Applying additional
resources to critical path
activities by priority
A dummy activity
A. Is used only in activity-on-
arrow networks
B. Has zero duration
C. Does not require Answer: E
resources
D. Indicates a precedence
relationship
E. All of the above
Which term describes a

modification of a logical
relationship that accelerates a
successor task?
A. Lag Answer: A
B. Leveling
C. Crashing
D. Lead
PERT is an estimating tool

that
A. Incorporates risk as an
element of the estimate
B. Can be used only for
estimating level of effort Answer: A
C. Can be used only in PDM
D. Uses only historical
estimates to calculate
standard deviations
The following activities are in Answer: B

a network diagram
255
activity Predecessors
Duration (days)
A. Excavating none 5
B. Pouring foundation A 2
C. Installing outside plumbing
A6
D. Framing B 8
E. Installing inside plumbing
D2
F. Wiring D 3
In the network outlined
above, which statements are
true?
I. Installing outside plumbing
is on the critical path
II. Installing inside plumbing
has a day of slack III. Pouring
foundation is on the critical
path
A. I
B. II and III
C. I and II
D. I and III
E. I, II, and III
Which of the following would

be used to present
information to upper
management?
Answer: A
A. Gantt chart
B. Network diagram
C. Fish bone diagram
D. Milestone chart
Which is not an element of Answer: E

procurement management?
A. Purchasing
B. Expediting
256
C. Acquisition
D. Marketing
E. C and D
The purchasing cycle

consists of all the following
elements except?
A. Defined Need Answer: C
B. Transmit Need
C. Inspection
D. Price & Terms
The cost of corrective action

taken by the purchaser and
chargeable to the supplier
under the terms of the
contract is Answer: D
A. Payment authorization
B. Bid cost considerations
C. Release payment
D. Back charge
__________ is a narrative
description of the work to be
accomplished or resource to
be supplied.
Answer: C
A. Purchase order
B. Level of effort work
C. Scope of work
D. Contract stipulation
By which means is a Answer: C

contractor able to control
costs overruns due to
changing requirements?
A. Project Data review
B. Change order
C. Change Control
257
D. Contract negotiations
_________ is a written order

directing the contractor to
make changes according to
the provisions of the contract
documents.
A. Change order/purchase Answer: A
order Amendment
B. Contract order
Modifications.
C. Contractor claim
D. Owner Directive
_________ defines when the

work is ready for or is being
used for the purpose intended
and is so certified.
Answer: B
A. Final Completion
B. Substantial Completion
C. Final Acceptance
D. Mechanical Completion
_________ is a request for

interim stoppage of work due
to non conformance, funding
or technical considerations
Answer: B
A. Bid Protest
B. Stop Work order
C. Notice to Proceed
D. Supplier Default Notice
The process that may be Answer: A

used by an unsuccessful
supplier to seek remedy for a
non award of work is
A. Bid Protest
B. Stop Work Order
258
C. Back charge
D. Contract Dispute
The __________
specification describes,
defines or specifies the
goods/services to be
supplied.
Answer: C
A. Performance
B. Functional
C. Technical
D. Bid
E. General Requirements
The Bid Evaluation process is

characterized by all of the
following activities except?
A. Evaluation of suppliers
financial resources
B. Ability to comply with
Answer: E
technical specifications,
C. Delivery schedule and
Cost factors
D. Performance Record
E. Competitors' method of
sourcing
Which is not a consideration

in a make or buy decision?
A. Cost factors
B. Sales Volume
C. Existence of sufficient Answer: B
administration/technical
personnel
D. Political and, social factors
with the organization
There are four methods of Answer: D

259
government procurement.
Which is not one of these
methods?
A. Assistance
B. Sealed Bidding
C. Competitive proposals
D. Acquisition
E. Small Purchases
A purchasing operation does

not contain this classification
of work
A. Management
Answer: D
B. Buying
C. Follow up and expedition
D. Marketing
E. Clerical
__________ is a register of
suppliers invited to submit
bids for goods/services as
specified.
Answer: B
A. Procurement invitation
B. Bid List
C. Resource Identification
D. Supplier's Rankings
__________ is a formal
invitation to submit a price for
goods and/or services as
specified.
A. Request for Quotation Answer: A
B. Bid Response
C. Intention for Bid
D. Invitation for Bid
E. Request for Proposal
Which contract type should Answer: C

260
be used by the owner on a

high risk project?
A. Cost Plus Percentage of
Cost
B. Cost Plus Incentive Fee
C. Lump Sum
D. Fixed Price Plus Incentive
Fee
E. C and D
Cost Reimbursable contracts

are equivalent to
A. Progress Payment
Contracts
Answer: C
B. Extra Work Order
Contracts
C. Cost Plus Contracts
D. Fixed Price Contracts
Fixed price and incentive type

contracts place responsibility
for performance and financial
risks associated with delay or
non performance on the Answer: A
A. Contractor
B. Owner
C. Lending Institution
D. Project Manager
__________ is based on Answer: D

information gathered and
analyzed about demand and
supply. This forecast provides
a prediction of short and long
term prices and the
underlying reasons for those
trends.
A. Sales forecast
261
B. Consumer Price Index

C. Production forecast
D. Price forecast
The contract is signed at the

end of the
A. Pre-award phase
B. Award phase Answer: E
C. Post-award phase
D. Solicitation phase
E. Award cycle
Definitive contract terms are

spelled out in the
A. Pre-award phase
B. Award phase
C. Post-award phase Answer: C
D. Purchasing phase
E. Pre-award phase for fixed
cost contracts, and Award
phase for cost plus contracts
A bilateral RFP is preferred to

an invitation to bid when
A. supplier and terms are
specified
B. the product or service is
relatively low value and
Answer: C
readily available
C. the product or service has
high value and is unique
D. the product or service has
high value, but is easy to
obtain
PMI suggests which of the Answer: A

following behaviors as part of
contract negotiations?
262
A. Protocol, probing,
scratching
B. Sniffing and smelling
(olfactory)
C. Touching and caressing
(tactile)
D. Mind-reading and extra-
sensory perception
The bid package is developed

in the
A. Requirements phase
B. Requisition cycle Answer: B
C. Solicitation cycle
D. Award cycle
E. Award phase
The Award phase includes

the
A. requirements, requisition
and award cycles
B. award and contractual
cycles Answer: D
C. requisition and solicitation
cycles
D. solicitation cycle
E. cycles required for the
contract
To relieve pressure on the Answer: E

project schedule, Diane
decided to fast-track and hire
a contractor to do part of the
work. Which form of
contract(s) should she
consider?
A. None. Fast-tracking is a
263
very poor time to consider a

contractor.
B. Fixed lump sum
C. Cost plus incentive
D. Cost plus percentage of
cost
E. c and d
Which is not a factor in

choosing a contractor?
A. Complexity of
requirements
Answer: E
B. Price competition
C. Competency
D. Capacity
Requirements and
specifications are always
changing in the systems
integration business.
Therefore, the best form of
contract for this environment
would be Answer: C
A. the form of contract
required to get the best
contractor
B. Fixed price
C. Cost plus
D. Overseas
In the area of contracting, Answer: D

there are two basic types of
contracts that reflect how the
total price is determined. The
________ contract has an
objective of a pre-determined
end price while the ________
264
contract has an objective of a

target end price.
A. full value; partial value

B. definitive; undefined
C. incentive fee; award fee
D. fixed price; cost-plus
E. end price; target price
A contract is a promise to
provide goods and/or
services to one party in return
for something of value from
that party. To define the
goods, services, and
something of value in a legal
document, the contract must
be comprised of ________.
A. an explicit work and
product description
B. a generic statement of the
Answer: C
requirements
C. a basic contract, a
statement of work, a
specification, and a list of
D. statements of the
requirements using language
that describes the physical
characteristics and the
amount of money to be paid
for the delivered products
The selection of the type of Answer: A

contract is important because
of the cost risk involved. In
most cases, the buyer
265
(owner) will attempt to

transfer the risk to the seller
(project sponsor). The buyer,
therefore, will always attempt
to award a(n) ________
contract to the seller.
A. fixed price
B. cost-plus
D. definitive
E. incentive fee
The buyer has not completely

defined all the requirements
for the project but has enough
definition to start. The type of
contract that will most likely
be awarded while additional
requirements are being
Answer: B
finalized is the ________
contract.
A. letter
B. cost-plus
C. fixed price
D. variable price
E. temporary
Contracts may be written in Answer: C

any form that is
understandable and
enforceable, and often project
personnel attempt to be
"creative" in developing the
document. Given a choice, it
is best to ________ to meet
the requirements of the
project.
266

C. use standard clauses in
contracts
D. avoid using contractual
documents
E. mix standard and unique
clauses
A purchase order can be

considered a contract with a
vendor to provide a number
of parts or components that
will be used in project
implementation. The
purchase order becomes a
"contract" when it is
________. Answer: D
A. issued by the project
procurement section
D. accepted and signed by
the vendor
E. completed through delivery
of the products by the vendor
The marketplace often Answer: A

dictates the price of products
and services through
competitive or non-
competitive supply situations,
which will vary from many
suppliers to one supplier.
However, ________ is not a
market condition.
B. pure competition
267
D. oligopoly
E. monopoly
The contracting process for

the negotiation and legal
execution is divided into pre-
award, award, and post-
award phases and five cycles
that describe the activities
under the phases. The first
Answer: B
cycle under the pre-award
phase is the ________ cycle.
A. requisition
B. requirement
C. solicitation
D. award
E. contractual
Project management, as an
integration function, has the
need to either make or buy
components of the system.
The decision to make or buy
is based on all the following
but ________. Answer: B
A. availability of people
D. availability of
E. price
A contract is a stand-alone Answer: D

legal document and must be
individually managed to
ensure the proper
performance. Many projects
have several contracts to be
268
initiated and executed

throughout the life of the
project. Therefore, it is best to
have a ________ that
anticipates and describes the
types of contracts required for
the project.
D. project contract
management plan
E. project configuration
management plan
Contracts for projects require

revisions to meet the project
needs as those needs evolve.
The correct method of
initiating a change to the
contract is to prepare a
________ for submission to Answer: D
the customer (buyer).
A. change notice
B. new contract
C. change order
D. proposal
E. plan
Changes to a contract are Answer: C

approved and signed by both
the buyer and seller as the
desired performance
requirements. These changes
are ________.
A. separate contracts between
the customer and the project
B. stand-alone subcontracts to
269
the prime contract

C. an integral part of the prime
contract as an amendment
D. secondary in legality to the
prime contract
E. primary in legality and the
prime contract becomes
secondary
The concept of warranty is

based upon one party's
assurance that the product or
service will meet certain
standards of quality, including
________.
A. function, performance,
durability, and desirability
B. appearance, desirability, Answer: D
reliability, and maintainability
C. desirability, reliability,
durability, and maintainability
D. reliability, maintainability,
function, and repairability
E. condition, reliability,
description, and
Warranties are given in two Answer: D

manners, either implied or
expressed. The implied
warranty differs from the
expressed warranty in that the
implied warranty ________.
A. is always given by a sales
person
B. is always written at the time
of sale
C. gives specific descriptions
270
of the product's qualities

D. is not a recorded statement
of the characteristics of the
product
A project manager may issue

a "waiver" on items received
from a vendor because the
items are less than the
purchase order specified. If
the project manager
knowingly accepts faulty
material, the vendor is usually
Answer: B
________ any damages that
the material may cause.
C. made to pay a percentage
of
A contract may include a Answer: C

clause that imposes a penalty
on the project for late delivery
of the completed system.
Although the contract
specifies a specific monetary
penalty for delays, the key(s)
to the issue is/are ________.
A. whether the delays were
necessary for safety
B. whether the delay could be
anticipated by the project
manager
C. who caused the delay
(buyer or seller) and the
271
nature of the interruption

D. why the delay affected the
delivery of the system
E. all of the above
Performance bonds are

required by some contracts to
ensure the project is
completed and the system
functions as specified. A
performance bond should
never be for less than
Answer: D
________ percent of the
contract price.
A. 25
B. 50
C. 75
D. 100
Payment bonds are often

required by the contract and
require specific actions under
the stated conditions.
Payment bonds are
specifically designed to
ensure payment of ________
by the prime contractor.
Answer: D
A. insurance premiums
B. weekly payrolls
C. incremental earned value
charges
D. subcontractors, laborers,
and materials
E. damages for accidents
caused
Some contracts are not Answer: A

272
completed because the

contractor fails or refuses to
complete the contractual
conditions. This situation is
called a ________ for which
damages can be assigned.
A. breech
B. stop-work
C. flawed contract
D. contract in situ
The time of delivery for a

contract is often specified to
ensure that both parties, the
buyer and seller, understand
the need for the product,
service, or system on or
before that date. When a time
is not specified in a contract, it
is assumed that performance
must be completed ________.
Answer: E
A. at the same pace as other
work
B. sooner than contracts of a
lesser dollar value
C. in the order in which the
work (contract) was accepted
D. as soon as possible, but
without causing the seller any
additional expense
E. within a reasonable time
The project manager is Answer: C

responsible for all the
activities within a project and
interfaces with external
functions, all of which
273
consume his/her time.

Therefore, when a contract
administrator is assigned to
the project, the project
manager ________ the
contract.
A. does not need to manage
B. can transfer all
responsibility to the contract
administrator for matters
related to
C. must still manage all major
aspects of
D. must know only the general
contents of
E. is not concerned with the
management of
The final step on a project is

the close-out phase where all
activities are to be terminated
in a business-like fashion.
From a contractual point of
view, the prime consideration
is to determine ________.
A. the profit made on this
project
B. who must be notified that
Answer: C
the contract is completed
C. the degree to which the
project met the provisions of
the contract
D. what reports are required to
terminate the contract
E. how many changes were
made in the course of the
project and whether all the
changes are accounted for
274
In initiating a contract, the

primary focus is on obtaining a
product or service without
regard for the termination. The
contract for goods or services
should have a termination
provision (after successful
completion) that ________.
A. fixes on a date that
designates completion
B. permits adjustments to the
Answer: C
perceived termination, when
necessary
C. requires a specific action
on the part of the seller and
the buyer
D. requires the seller to
demonstrate the product's
capability
E. requires the buyer to
formally accept the product on
a specific date
The language of contracts Answer: B

does not preclude
misunderstanding and
situations that adversely affect
project completion. Therefore,
a contract should always have
a method of removing the
obstacles to progress. One
method is to form a ________
committee to address matters
that the project manager and
the customer's representative
cannot handle.
A. top management
B. disputes resolution
275
C. problem processing
D. steering
It is important to review the

performance of
subcontractors during post-
contract evaluations. This
review establishes the
baseline for ________.
A. payment of current bills and
Answer: B
incentive bonuses
B. demonstrated performance
and future potential
C. future pricing and costs
D. work measurement and
work standards
Project contracts can be

separated into two broad
categories
A. how the work is to be
performed; who will perform
the work
B. what procedures are to be
used; how the work will be
performed
Answer: D
C. when the work is to be
performed; what performance
standards will be used
D. what the contractor (seller)
is to provide; how the work is
to be performed
E. who may be used to
perform the work; the
procedures to be used
276
In a cost-reimbursable
contract, the owner (buyer)
accepts most of the
________. Therefore, the
owner has more input as to
how the work is accomplished
as compared to a fixed price
contract.
A. risk and exercises more
control over the project Answer: A
B. cost and has a greater
interest in the schedule
C. design work and influences
the end product
D. project management and
daily direction of the work
force
E. planning function and cost
disbursements for the project
During the proposal and Answer: C

bidding phase, the owner
(buyer) must assess the
capability of the contractor
(seller) to perform the work.
For example, if the owner
believes the proposed team
consists of some individuals
who do not have the requisite
qualifications and suggests
that these individuals be
replaced, the contractor
should ________.
A. disregard the owner's
suggestions unless it
precludes the contractor from
obtaining the contract
B. immediately make changes
277
to follow the owner's

suggestions although the
contractor believes the
replacements are less
qualified
C. discuss the suggestions
with the owner and clarify the
qualifications of individuals
prior to making a change
D. tell the owner that
personnel working on the
contract are not his/her
responsibility and make no
changes
E. tell the owner that the
individuals will be replaced
and ignore the situation (the
owner is not responsible for
personnel selection)
The contractor (seller) accepts

all liability for engineering
errors, poor workmanship,
and consequential damages
under a(n) ________ contract.
Answer: D
A. letter
B. incentive fee
C. cost-plus
D. fixed price
E. variable production
Contracting for project work Answer: D

follows a set sequence of
activities that ensures a
favorable contracting strategy.
The sequence of contracting
activities includes the
following
278
A. receive proposals; evaluate

proposals; select winner
B. prepare proposals; submit
proposals; select bidder
C. prepare proposals; receive
proposals; review proposals
D. receive invitation for bid;
review invitation for bid;
submit bid
E. prepare proposals; review
proposals; submit proposals
Contractor screening is
important to ensure that
candidates are capable of
performing the work and the
number is neither excessive,
which will make the proposal
evaluation process difficult,
nor too few, which will
minimize the competition. The
four key items to be used in
contractor screening are
Answer: A
________.
A. capacity, experience,
capability, and interest
B. capital, capacity,
experience, and location
C. experience, interest,
financial stability, and skills
D. facilities, capital, capacity,
and capability
E. industry, experience, risk,
and cost
A request for proposal (RFP) Answer: E

is used to
A. establish a project master
279
plan.
B. establish project baselines.
C. create project budgets.
D. solicit bids from
contractors.
E. maintain control over
unauthorized work changes.
When invitations for bid are

issued to the contractors, the
bids (proposals) must be
submitted in a standard format
because ________.
A. the owner (buyer) has a
format that he/she routinely
uses and wants to force the
contractors to meet his/her
requirements
B. the Uniform Commercial
Code specifies that all
proposals will comply with the
law and the standard format
C. the government has Answer: E
specified that proposals must
meet the requirements of
contract law and this assures
the incorporation of all items
D. the Association of
Contractors has prescribed
the format to which all bidders
must comply to meet a legal
proposal
E. it gives the greatest
assurance that all items are
covered and the proposals
can be evaluated in a uniform
manner
280
Submission of proposals to
perform work is the avenue for
acquiring most projects. The
proposals, when submitted,
must contain specific items to
obligate or bind the tendering
organization. The most
important item is ________.
A. the complete description of
the work to be performed Answer: C
B. the list of terms and
conditions
C. the signature of a corporate
officer
D. a statement of work that
describes how the work will be
accomplished
E. a price for the complete
work to be performed
The most critical aspect of

selecting a contractor and
awarding a contract is the
proposal evaluation (or bid
review) process. The
evaluators must be aware of
the need to balance fact
versus judgment, objective
Answer: D
versus subjective reasoning,
work tasks versus costs, time
versus price, and ________.
A. certainty versus uncertainty
B. quality versus cost
C. quality versus price
D. risk versus opportunity
Contracting is a means of Answer: A

281
obtaining required goods

and/or services that are
required to meet the needs of
a project. The contract defines
the legal relationship between
the participants and what
each participant is expected to
do before the contract can be
concluded. The contract also
forms a ________ in which
the participants strive to work
toward the common goal of
successfully completing the
legal obligations in the most
efficient manner.
A. union
B. partnership
C. consortium
D. single team
E. situation of opposition
The proposal preparation is in Answer: E

itself a short-term project that
requires intense effort to be
completed in the owner's
(buyer's) format and time
frame, while being responsive
to the requirements of the
formal invitation for bid. A
company bidding for projects
can ease the workload and
enhance the potential for
successfully "winning"
contracts by ________.
A. appointing the proposal
manager early in the process
B. identifying a proposal staff
early in the process
282
C. having a technical
information data base
D. having standard scopes of
services
E. all of the above
Similar to a small project, the

proposal preparation process
is started by a ________
meeting where the technical,
legal, and compensation
considerations are reviewed
and assignments of Answer: C
responsibility are made.
A. preliminary proposal
B. planning and approval
C. kickoff
D. technical assessment
E. staff assignment
When entering into a contract, Answer: A

it is often assumed that the
performance of the work will
be as specified and no
disputes will be raised during
the performance period. On
the contrary, it is better to
assume that there will be
disputes and include a
procedure in the contract as to
the means for dispute
resolution because ________.
A. contracts, by their very
nature, create situations
where disputes will arise, but
they can be easily resolved
with good procedures
B. the tracking of claims is
283
important for the best "win"

position during the
subsequent litigation
C. disputes must be brought
before the National Contract
Arbitration Board to obtain
equitable resolution
D. there will be a hostile
relationship between the
contract participants once the
contract is signed
E. it is more economical to
resolve disputes as soon as
claims are made and before
time and effort are wasted
A contract is a promise to do Answer: C

or not do something in
exchange for some form of
consideration. A negotiated
contract is one where both
participants agree on the
basis for principal
considerations
A. the period of performance
and the specifications for the
project
B. how the work will be
performed, at what time, and
for what price
C. the services to be rendered
by one party and the price to
be paid by the other party
D. who will perform the work
and who will pay for the work
E. the description of services
to be rendered and the
description of the payment
284
and payment schedule
In abstract theory, a contract

is not essential to the
performance of a project.
Contracts are, however, useful
when the performance
involves ________ ,
particularly when they are
interdependent.
A. personnel, money, and Answer: D
material
B. cost, schedule, and quality
C. new, unique, and complex
work
D. substantial, complex, and
extended commitments
E. subcontractors, vendors,
and suppliers
71. When making the project

procurement plan, the project
manager should consider all
of the following EXCEPT
A. Preliminary cost estimates Answer: D
B. Market conditions
C. Project funding availability
D. Application area extensions
E. Product descriptions
Procurement documents Answer: D

should have all of the
following attributes EXCEPT
A. Facilitating accurate and
complete responses
B. Including a complete
statement of work
C. Describing the desired form
285
of response
D. Including the list of
potential bidders/respondents
A request for bid differs from a

request for proposal in that the
A. RFP is used when source
B. RFP is used when the
project time-frame is limited
Answer: C
C. RFB is used when source
D. RFP disregards price
considerations
E. RFB is concerned with
price exclusively
Contract administration
change requests may include
all of the following EXCEPT
A. Modifications to the terms
of the contract
B. Termination of the contract
if the seller's work is Answer: D
unsatisfactory
C. Modification to the
description of the product or
service to be provided
D. Seller invoices
E. Contracted changes
Which of the following is true Answer: C

about the advertising in the
solicitation process? I. It is
sometimes required on public
projects II. It is an effective
method of expanding the list
of potential bidders III. It can
286
cause public pressure

resulting in bid disputes
A. I only
B. Ii only
C. I and II only
D. I and III only
E. I, II, and III
Which type of contract

provides the highest risk to the
Owner (Buyer)?
A. Cost Plus Percentage of
Cost
Answer: A
B. Cost Plus Fixed Fee
C. Firm Fixed Price
D. Fixed Price Plus Incentive
Fee
E. Cost Plus Incentive Fee
In negotiations, what is a fait

accompli tactic?
A. Accomplishing the phase
before the other side is ready
B. Pretending to accept the
other side's offer
C. Claiming an issue has Answer: C
already been decided on and
cannot be changed
D. Acting in good faith
E. Promising that a
requirement will be completed
before it is due
An expressed warranty Answer: B

A. Is provided by the sales
manager
B. Is a statement of the
287
C. Covers a longer period

than the implied warranty
D. Is the best guarantee to the
buyer
E. Can be sold separately
The project's contractor

payment system should
include
A. An administrative review
B. The contractor submission Answer: D
C. A review of work performed
D. Negotiations over price
E. A viable account payable
system
The contract administrator

should provide ___________
at formal closure of project I.
Formal notice of project
completion to the contractor II.
Letters of commendation to all
project staff III. Formal notice
of acceptance to the Answer: C
contractor IV. Internal notice to
senior management/buyer
A. I only
B. IV only
C. I and III only
D. II and IV only
E. I, III, and IV only
Which type of contract should Answer: B

be used for a well-defined
project
A. Unit price contract
B. Fixed price contract
C. Cost reimbursable contract
288
D. Partnership contract
E. A unit price contract that
disallows such contracting
Contract close-out
documentation includes all of
A. Technical documentation
B. Financial documents Answer: C
C. The RFP or RFB and
seller's working proposal
D. Results of contract-related
inspections
Potential contract changes

should be
A. Postponed as long as
possible to protect the budget
B. Viewed as negative,
quantified, and tabulated
C. Quantified and fed back Answer: C
through the project planning
and procurement processes
D. Reviewed by senior
management and the buyer
E. Submitted for bids to the
relevant vendor list
The purpose of a procurement Answer: A

audit is to do all of the
following EXCEPT
A. Maintain a complete file of
contract-related records
B. Determine if all required
work has been completed
C. Determine if the bid
documents used were
effective
289
D. Determine if the contract

change control system was
effective
E. Identify successes and
failures and their implications
When the procurement item is

available from only one
supplier, all of the following
evaluation criteria should be
identified and documented to
support an integrated
Answer: E
assessment EXCEPT
A. Management approach
B. Financial capacity
C. Life cycle cost
D. Technical capabilities
E. Mode of delivery
All of the following methods

are available to the project
manager for short-listing
contract proposals EXCEPT
A. Comparing proposals
against independent
estimates Answer: D
B. Weighting systems
C. Subjective screening
systems
D. Resource distribution
system
E. Negotiation
Which terms are used to Answer: D

describe contested changes
when the seller and project
management team disagree
on compensation for the
290
change? I. Appeals II.

Mediation III. Claims IV.
Disputes V. Arbitration
A. I and III only
B. II and IV only
C. IV and V only
E. II, III, and V only
FFP is an acronym for

A. Free Flow Performance
B. Fundamentally Fixed Price
Answer: C
C. Firm Fixed Price
D. Free Form Project
E. Fixed File Procurement
The buyer has negotiated a

cost-plus-incentive fee
contract with the seller. The
contract has a target cost of
$300k, a target fee of $40K, a
share ration of 80/20, a
maximum fee of $60K, and a
minimum fee of $10K. If the
Answer: E
seller has actual costs of
$380K, how much fee will the
buyer pay?
A. $104K
B. $56K
C. $40K
D. $30K
E. $24K
Which of the following terms is Answer: D

an expression by one party of
its assent to certain terms in
the contract provided that the
other party expresses its
291
assent to the identical terms?

A. Proposal
B. Counter-offer
C. Bargain
D. Offer
E. Exchange
Which term describes the

failure by either the buyer or
seller to perform part or all of
the duties of a contract?
A. Termination of contract Answer: C
B. Partial performance
C. Breach of contract
D. Contract litigation
E. Contract waiver

practices is NOT an important
element of effective contract
administration?
A. Preparing contract change
documentation
B. Processing payment
Answer: C
vouchers
C. Establishing the
appropriate contract type
D. Implementing a contract
change control system
E. Preparing monthly contract
status reports for the buyer
When actual costs exceed Answer: D

estimated costs without any
change in the scope of work,
the project is experiencing
A. Accelerated costs
B. Cost growth
292
C. Schedule compression
D. Cost overrun
E. Cost risk
Contract type selection is

dependent on the degree of
risk or uncertainty facing the
project manager. From the
perspective of the buyer, the
preferred contract type in a
low-risk situation is Answer: A
A. Firm-fixed-price
B. Fixed-price-incentive
C. Cost-sharing
D. Cost-plus-fixed fee
cost
Generally speaking,
compensation to a contractor
in a cost contract is based on
A. Actual costs incurred based
on the contractor's best efforts
B. The amount of time
required to complete the
contract
Answer: A
C. Delivery of the goods and
services stipulated in the
contract
D. The number of resources
used
E. Actual costs incurred minus
profit if the cost ceiling was
exceeded
The process of monitoring Answer: C

contract performance, making
payments, and awarding
293
contract modifications occurs

during
A. The pre-award phase
B. The award phase
D. Contract formation
E. Contract resolution
Which term describes those

costs that are traceable to or
caused by a specific project
work effort?
A. Variable Answer: B
B. Direct
C. Indirect
D. Fixed
E. Semi-variable
Subcontracting may be the

best option when
A. The subcontractor
possesses special technical or
engineering skills
B. The performing
organization possesses
limited capacity in an area Answer: E
C. The subcontractor can
augment the contractor's labor
force at a lower cost than an
in-house capability can be
maintained
D. A and C
E. A, B, and C
During negotiation, the seller Answer: E

takes exception to the buyer's
terms and conditions and
proposes different terms and
294
conditions. Which negotiation

technique is the seller using?
A. Recommendation
B. Rejection of offer
C. Separate offer
D. Suggestion
E. Counter-offer

types places the greatest risk
on the seller to control costs?
A. Fixed-price with economic
price adjustment
Answer: C
B. Fixed-price incentive (firm
target)
C. Firm-fixed-price
D. Cost-plus-award fee
E. Cost-plus-incentive fee

types does NOT encourage
the seller to control costs and,
as a result, places the
greatest risk on the buyer?
A. Cost-sharing Answer: E
B. Cost-plus-award fee
C. Cost-plus-fixed fee
D. Cost-plus-incentive fee
cost
The purpose of the bidders' Answer: A

conference is to
A. Ensure that prospective
sellers have a clear, common
understanding of the buyer's
requirements
B. Confirm which bidders are
295
going to be considered in the

procurement
C. Ensure that all qualified
sellers are on the qualified
sellers list
D. Obtain detailed information
on the prospective sellers'
past performance
E. Ensure that all bidders
attending the conference
receive amendments
A specification that describes

the buyers requirements with
special dimensions,
tolerances, or features, such
as chemical or electronic
requirements and that is
accompanied by engineering Answer: A
drawings, is called a
A. Design specification
B. Functional specification
C. Performance specifications
D. Commercial standard
E. Qualified product
The language of contracts Answer: B

sometimes causes
misunderstandings and
creates situations that
adversely affect project
completion. Therefore, a
relatively fast and informal
method for removing the
obstacles to progress should
always be available. One such
method is to submit the issue
in question to an impartial
296
third party for resolution. This

process is known as
A. Cause of action
B. Alternative dispute
resolution
C. Problem processing
D. Steering resolution
E. Mediation litigation
The legal contractual

relationship that exists
between the buyer and the
seller is called
A. Caveat emptor Answer: C
B. Apparent authority
C. Contract privity
D. Terms and conditions
E. Force majeure
Japanese quality control has

improved dramatically in the
last 30 years for all of the
following reasons except
A. The use of quality control
circles
B. Small, continuous
improvements in quality Answer: E
control
C. The use of worker
suggestion systems
D. The use of quality control
charts
E. Focusing quality control
efforts on production output
Quality management deals Answer: C

with all of the following topics
except
297
A. Conformance to
requirements/specifications
B. Satisfying the needs of the
customer
C. Making Products more
desirable and luxurious
D. A and C
E. B and C

statements about the cost of
quality are true?
A. The cost of quality is the
expense of nonconformance
to requirements and
specifications
B. The costs of quality are
mostly the direct responsibility Answer: A
of workers who are
manufacturing the product
C. Quality control programs
should only be implemented
when the costs of quality are
excessive
D. a and B
E. a and C
The zero defects concept Answer: D

A. Is a performance standard
for management
B. Is a motivational technique
that promotes "doing it right
the first time".
C. Is used by management to
communicate to all employees
that everyone should do
things right the first time.
D. A and C
298
E. B and C
Quality assurance
A. Refers to the prevention of
product defects
B. Is an auditing function that
provides feedback to the
project team and Client about
the quality of output being
produced Answer: B
C. Is the technical process
that includes the construction
of control charts which specify
acceptability limits for
conforming output
D. A and B
E. b and C
Financial compensation is the

primary motivational tool for
management theories or
programs?
Answer: B
A. Zero Defects program
B. Theory X management
C. Theory Y management
D. Quality Control Circles
E. A and C
In the project environment, the Answer: D

individual ultimately
responsible for quality control
is
A. The line workers who must
strive "to do things right the
first time' to avoid quality
problems
B. The company's quality
299
control manager who must

work with the project
members to ensure the quality
control program is effective
C. The head of the production
department who retains
ultimate quality control
responsibility for all the
company's projects
D. The project manager who
has ultimately responsibility
for the entire project
E. The customer who must
ensure that he is receiving a
quality product from the
vendor
An acceptance control chart Answer: E

has limits that are based on
the specification limits for the
product rather than limits
which differentiate between
random and assignable
causes. Under which of the
following circumstance should
a QC manager consider using
an acceptance control chart?
A. When the engineering
tolerance on a dimension
greatly exceeds the natural
dispersion of the
manufacturing process
B. When the number of
samples outside the current
control chart limits become too
costly and Cumbersome to
investigate
C. When a process is subject
300
to constant but stable tool

wear
D. A and B
E. A and C
The majority of product

defects could be prevented in
most processes if
manufacturers would do the
following
A. Increase the use of
acceptance control charts
instead of standard three-
sigma control charts Answer: B
B. Make a concerted effort to
eliminate the potential for
product defects in the design
stage
C. Create a quality control
department
D. A and B
E. A and C
Quality attributes
A. Are used to determine how
effectively the organization
accomplishes its goals
B. Can be objective or
subjective in nature
Answer: E
C. Are specific quality
characteristics for which a
product is designed, built, and
tested
D. A and B
E. B and C
Most quality problems Answer: C

A. Originate in the quality
301
department where the ultimate

responsibility for quality rests
B. Originate on the shop floor
because of waste and product
rework
C. Are the result of
management inattention to
potential quality improvement
ideas
D. Could be eliminated if shop
supervisors monitored their
workers more closely
E. A and B
The Pareto Principle is a Answer: B

technique used by quality
managers to determine which
quality control problems
concerning a particular service
or manufacturing process
should be corrected. Which of
the following statements best
represents the philosophy
employed by this principle?
A. In order to minimize
financial losses from quality
control problems, all problems
which have a measurable cost
associated with them should
be corrected.
B. The majority of defects are
caused by a small percentage
of the identifiable problems.
Improvement efforts should be
reserved for these few vital
problems.
C. In order to achieve zero
defects, all quality control
302
problems, including those

which do not have a direct
financial cost, should be
corrected.
D. Generally, 80% of the
quality control problems are
justifiable for correction via
cost-benefit analysis. The
remaining 20% are not
financially worthy of
improvement efforts.
E. A and d
The Japanese Quality Control

(QC) Circle movement
motivated its participants in
many ways. Which of the
following represents the most
important motivation for the
QC circle participant
A. Improving the performance
Answer: A
of the company
B. Self-improvement
C. Financial incentives
D. Recognition among co-
workers
E. Strengthening of
relationships between co-
workers.
In order to achieve long-term Answer: C

quality improvements,
management must do the
following
A. Motivate the employees
with seminars, contests, and
institution of programs such as
"Quality Improvement" day
303
B. Create a quality control

department and give the head
of the department ultimate
responsibility for quality
improvement
C. Implement of a formal
quality control program with
worker and management
involvement
D. Establish financial incentive
packages for workers
E. A and D
Quality assurance is
A. top management's intention
regarding quality
B. functions determining
implementation of the quality
policy
C. actions to provide Answer: C
confidence of satisfying quality
requirements
D. responsibilities and
processes which implement
quality management
E. all of the above
Quality is
A. zero defects
B. a problem
Answer: C
C. a specification
D. a cost
E. a, c and d
Which are the best two charts Answer: B

to show trends in a process?
A. Pareto and Control
B. Control and Run
304
C. Histogram and Run

D. Gantt and Pert
E. Gantt and CPM
If the acceptance sampling

attribute for a lot is 30%, this
means that
A. 30% of all lots must be
tested
B. 30% of all lots must pass
the test Answer: D
C. any given lot must have
30% or fewer defects
D. a sample of a given lot
must have 30% or fewer
defects to pass the entire lot
E. c and d
The pillar(s) of quality is (are)

A. Quality is free
B. Doing it right the first time
Answer: E
C. Zero defects
D. Process improvement
E. B and C
When a product or service

completely meets a
customer's requirements
A. quality is achieved.
B. cost of quality is high. Answer: A
C. cost of quality is low.
D. the customer pays the
minimum price.
E. a and b.
. " Using Pareto's Rule, and Answer: A

given the data in the following
table, where should corrective
305
action focus? Origin of

problem % of problems
Design 80 Development 2
Prototype 9 Testing 6
Fabrication 3"
A. Design
B. Design, development, and
prototype
C. Design and prototype
D. Development, prototype,
and fabrication
Cost of quality is a concept

that includes
A. the cost necessary for
ensuring conformance to
requirements.
B. the life cycle cost of the
project. Answer: A
C. all research and
development costs related to
the project.
D. only the cost of the quality
control function
E. a and b.
The process of determining

that technical processes and
procedures are being
performed in conformance
with scope requirements and
quality plans is called quality Answer: D
A. management.
B. assurance.
C. process review.
D. control.
E. checks.
306
Quality control is
project and determining how
to satisfy them.
standards and identifying
ways to eliminate causes of
performance on a regular
Answer: B
basis to provide confidence
that the project will satisfy the
relevant quality) standards.
D. taking action to increase
the effectiveness and
efficiency of the project so as
to provide added benefits to
both the performing
organization and the project
customer.
Quality planning is Answer: A

project and determining how
to satisfy them.
standards and identifying
ways to eliminate causes of
307

performance on a regular
basis to provide confidence
that the project will satisfy the
relevant quality standards
D. taking action to increase
the effectiveness and
efficiency of the project so as
to provide added benefits to
both the performing
organization and the project
customer.
Quality management includes

forming and directing a team
of people to achieve a
qualitative goal within an
effective cost and time frame
that results in
A. a project completed in the
shortest possible time.
B. a product or service that
Answer: B
conforms to the requirement
specification.
C. an award-winning product
that brings public recognition
to the project.
D. an innovative project that
establishes the qualifications
of the project team.
E. B and C.
According to current quality Answer: A

management thinking, which
of the following approaches to
308
quality improvement is least

likely to produce positive
results ?
A. increased inspection
B. Continuous improvement
C. Quality circles
D. Statistical quality control
E. Use of worker suggestion
systems
The concept that states "the

optimal quality level is
reached at the point where the
incremental revenue from
product improvement equals
the incremental cost to secure
Answer: B
it" comes from
A. quality control analysis.
B. marginal analysis.
C. standard quality analysis.
D. conformance analysis.
E. systems analysis.
Which of the following best Answer: A

characterizes the results of an
increase in quality*?
A. increased productivity,
increased cost-effectiveness,
and decreased cost risk.
B. Reduced productivity and
no change to cost-
effectiveness or cost risk.
C. Reduced productivity and
an increase in overall product
or service cost.
D. increased productivity and
cost-effectiveness.
E. increased productivity,
309
decreased cost-effectiveness
and increased cost risk.

statements regarding quality is
false?
A. Quality improvement
depends upon better definition
and increased awareness of
the requirements
specifications.
B. Future gains in quality will
often rely on advanced
Answer: B
technology.
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.
E. A and C.
You are sampling items from a Answer: B

batch and plotting the results
on a control chart. How will an
increase in the number of
items in the sample affect the
value of the standard
deviation used to set the
control limit?
A. increase it.
B. Decrease it.
C. No effect on it.
D. First increase it, then
decrease it.
E. First decrease it, then
310
increase it.
If the level of conformance

directly increases as a result
of new processes. different
resources, or changed
methods. the required cost of
monitoring is likely to
A. increase as well. Answer: C
B. remain the same.
C. decrease.
D. decrease initially then
increase slightly.
E. increase then tend to level
off
The primary driver(s) Answer: E

behind the demand for
continual quality
improvement is/are
A. an increase in the
number of projects
being worked.
B. the government cost
improvement reports
that have created
widespread public
interest in quality.
C. the prevalence of
media reports on
quality!- circles and
other quality
improvement
techniques
D. the need to both
reduce costs and
ensure consistency in
the performance of
311
products and services.

E. b and d.
The concept of quality is

based on
A. meeting luxury goods
standards.
B. producing excellent
products that are superior to
Answer: C
other similar items.
C. conforming to the
requirements specifications
D. maintaining uniformity of
design
E. a and c.
An assignable variance tells us

A. our equipment is becoming
obsolete.
B. top management should
initiate increased worker
training.
Answer: C
C. there is an identifiable
problem that must he fixed.
D. schedule variances will be
reduced.
E. ours use of quality circles is
inadequate.
From a high level perspective, Answer: D

quality
A. is ensured by having
inspectors.
B. cannot be quantitatively
measured.
C. and productivity are
inconsistent objectives.
D. is primarily (85-95%) a
312
management problem.
E. problems are usually
caused by unmotivated
employees.
Which is not a commonly used

quality management tool?
A. Fishbone diagram
B. CSSR report
Answer: E
C. Pareto chart
D. Control chart
E. None of the above (all are
commonly used)
Quality is often influenced by

all of the following except
A. fabrication processes and
methods.
Answer: C
B. supervision.
C. inspection
D. cost of materials.
E. design.
The___ of a product or service

most affects its reliability and
maintenance characteristics.
A. design
Answer: A
B. concept
C. fabrication
D. performance
E. cost
Random variance in a Answer: E

process, as measured by the
standard deviation. can be
directly reduced by
A. improving the overall
system of production
313
B. increasing the number of

quality inspectors.
C. making use of run charts.
D. making better use of Pareto
charts.
E. identifying patterns of
variance using control charts.
A project manager notices that

all the measurements
recorded on a control chart lie
within the control band range.
However, most of the
measurements are below the
midpoint (negative variance).
Quality management practice
offers us what guidance in
dealing with this situation?
A. The project manager should
apply the "rule of seven." Answer: A
B. There is no problem as long
as the variances lie within the
control band.
C. Negative variance indicates
a problem which should be
remedied.
D. These variances are most
likely caused by random
factors.
E. increased worker ownership
should be encouraged.
The project management Answer: A

team's for quality should
A. extend beyond the
completion of the project.
B. stop at the point of
delivery. .
314
C. be significantly reduced by
a good warranty..
D. be ignored by the project
manager.
E. a and c.
On a project, quality should

generally be of
A. equal priority with cost and
schedule.
B. lower priority than cost and
schedule.
Answer: A
C. equal priority with cost, but
higher priority than schedule.
D. equal priority with schedule.
but higher priority than cost.
E. higher priority than cost and
schedule.
100% inspection for defects

may be neither possible nor
desirable. When is sampling
for defects likely to be most
useful?
A. When destructive testing is
required Answer: E
B. When the cost of 100%
inspection is high.
C. When we believe there are
not many defects.
D. a, b, and c.
E. a and b.
A fundamental tenet of modern Answer: A

quality management holds that
quality is most likely to be
achieved
A. by planning it into the
315
project.
B. by developing careful
mechanisms to inspect for
quality
C. by developing prestigious
products and processes.
D. by striving to do the best job
possible.
E. by conducting quality circle
activities.
Poor quality in a design project

is likely to directly affect
________________ costs.
A. manufacturing/building
Answer: E
B. advertising
C. overhead
D. post-completion support
E. a and d
From the project perspective,

quality attributes
A. are used to determine how
effectively the performing
organization supports the
project
B. can be objective or Answer: D
subjective in nature.
C. are specific characteristics
for which a product is
designed, built. and tested
D. b and c.
E. a and b.
From the project manager's Answer: E

viewpoint, quality assurance
involves
A. conducting studies to
316
determine if design methods

will support quality
requirements.
B. identifying applicable laws,
ordinances and regulations
that the project must comply
with.
C. monitoring inspection
activities to ensure that the
work is performed as
specified.
D. a, b, and c.
E. a and c.
Just-in-time (JIT) is the

concept of reducing
inventories to
A. 25% of former stock.
B. Less than half of former
Answer: D
stock.
C. 75% of peak stock.
D. zero stock.
E. 15% of the cost of the
product for a planned stock.
Of the following statements, Answer: E

which one(s) is/are true?
A. Quality is the usual result
when skilled designers and
skilled implementors work on
the project.
B. Quality is 10% skill and
90% luck.
C. Quality can be achieved
with the proper combination of
personnel, materials, methods
and time to do the work.
D. None of the above.
317
E. a and c.
Some organizations today are

using "six sigma", to set the
upper and lower limits on
control charts rather than the
traditional sigmas, which are?
Answer: B
A. two
B. threes
C. four
D. five
E. twelve
The quality management tool

that can be described as "a
diagram that ranks and
displays defects in order of
frequency of occurrence (from
left to right)" is a Answer: D
A. control control
B. vertical bar chart.
C. histograms.
D. Pareto chant.
E. run chant.
From the project manager's

perspective, quality
management is
______________ limited to
assessing the attributes of the
tools provided to do the work. Answer: C
A. always
B. usually
C. not
D. seldom
E. intermittently
The primary responsibility for Answer: E

318
establishing design and test

specifications should rest with
A. senior management.
B. procurement or purchasing.
C. engineering.
D. manufacturing.
E. quality control.
Which of the following is least

likely to contribute to
developing an effective project
team supportive of quality?
A. Commitment to the project
B. Team member flexibility Answer: C
C. Frequent turnover of
personnel
D. Team interest in
workmanship
E. Clearly defined goals
Primary responsibility for

quality management in the
project rests with the
A. project engineer.
Answer: D
B. purchasing agent.
C. quality manager.
D. project manager.
E. company president.
The ISO 9000 series is Answer: D

A. a set of instructions for
preparing control charts.
B. a set of guidelines for
quality.!
C. a set of forms and
procedures to ensure quality. .
D. an international standard
that describes a
319
recommended quality system.

E. intended to be applied only
to manufactured products.
Unless evidence indicates

otherwise, a process is
assumed to be
A. in control.
B. out of control.
Answer: A
C. working at full capacity.
D. working at less than full
capacity.
E. operating within required
engineering tolerances.

statements best characterizes
the quality management
practice called benchmarking?
A. The ISO term for progress
measurement
B. Comparing planned project
practices to those of other
Answer: B
projects.
C. A technique used to test
certain types of electronic
equipment.
D. The difference between
grade'' and quality.
E. The measurement of
customer satisfaction.
Quality management is Answer: D

defined as the process of
ensuring that a project meets
the ________ of the project's
clients, participants, and
shareholders.
320
A. specifications and
statements of work
B. legal and financial
obligations
C. expectations and desires
D. needs and expectations
E. legal and moral
requirements
The primary components of

quality management are
quality ________.
A. inspections, certifications,
and validations
B. philosophy, assurance, and
Answer: B
control
C. form, fit, and function
D. reliability, maintainability,
and availability
E. insurance, assurance, and
warranty
Quality assurance is defined

as the managerial process that
determines ________ that
provide the customers with
performance standards and
feedback on the performance.
A. time, scope, cost, and
resources
Answer: D
B. human resources, dollars,
materials, and duration
C. time, location, duration, and
completion
D. organization, design,
objectives, and resources
E. management, staff,
workers, and contractors
321
Quality control is the technical

processes that ________ the
project's progress against the
performance standards.
A. inspect, certify, and verify
B. examine, analyze, and
report Answer: B
C. inspect, examine, and
determine
D. identify, measure, and
report
E. reveal, establish, and
record
Responsibility within the

project for quality must be
defined and promulgated to
everyone contributing to the
end product. First and
foremost, the ________ has
the ultimate responsibility for
conformance to requirements
when provided with the tools, Answer: E
skills, knowledge, and
opportunities.
A. corporate president
B. director of project
management
C. quality assurance manager
D. project manager
E. individual
. Self-inspection by the Answer: E

individual performing the work
is used to achieve quality in a
product. The advantages of
self-inspection include
________.
322
A. immediate feedback to
permit adjustments to the
process
B. early identification of errors
prior to further integration
C. minimization of end product
repairs and material waste
D. reduction in the number of
end product inspections and
tests
E. all of the above
Zero Defects is an element of

the quality management
philosophy that is a ________
for all workers to be achieved
________.
A. slogan; whenever possible
Answer: C
B. slogan; most of the time
C. standard; at all times
D. standard; whenever
possible
E. standard; during critical
operations
Statistical Process Control is Answer: E

used in quality programs to
determine whether repetitive
operations meet predictable
standards. The process uses
________ to permit accurate
monitoring of the operation.
A. 100 percent inspection and
random rejection
B. acceptance sampling and
automatic rejection
C. continuous sampling and
error detection methods
323
D. random sampling and

corrective procedures
E. statistical sampling and
control procedures
Statistical Decision Making

includes Pareto Analysis as a
means of reducing errors in
the total project process.
Pareto Analysis ________.
A. is a method of rejecting
errors or variances from
standards following self-
inspection
B. is a procedure for ranking
the errors to identify those
contributing the most to
Answer: B
failures [PMBOK p. B-2]
C. counts errors or failures to
determine the added cost of all
operations that do not meet
the requirements
D. compares the error rate
with the pass rate to determine
the allowable number of errors
per 1,000
E. compares the error rate of
individuals to determine the
compensation for bonuses
Statistical sampling is a Answer: C

method to determine the
conformance to requirement
for some element or product of
a project. The advantage of
statistical sampling is that it
________.
A. does not require an
324
expenditure of resources
B. is accurate enough with a
sampling of less than one
percent
C. does not require 100
percent sampling of the
elements to achieve a
satisfactory inference of the
population
D. needs to be conducted only
when there is a problem
discovered with the end
product or when the customer
has some rejects
E. is a good tool to gain
customer confidence during a
period of high rejects
Statistical Process Control

uses diagrams called "Control
Charts." These charts depict
horizontal, parallel lines to
represent ________ standard
deviations. Answer: D
A. six
B. five
C. four
D. three
E. two
When data is plotted on the Answer: D

control charts, the data is of
two types R and X-bar. The R
data represent points of a
________ while the X-bar data
represent points of a(n)
________.
A. random sample; cross-
325
matrix sample
B. real sample; simulated
sample
C. 100 percent sampling; 10
percent sampling
D. sampling run; average of
several runs
E. random sampling;
continuous sampling
The cost of quality has been

argued as being primarily
driven by the workers. When
items were produced that did
not meet the customers'
expectations, the workers
were "found" to be at fault.
Current thinking is that
management has at least Answer: A
________ percent of the
responsibility for the cost of
quality.
A. 85
B. 75
C. 65
D. 55
E. 50
Statistical sampling methods Answer: A

are valid for most projects,
regardless of the lack of
repetitive processes, because
________.
A. projects rely on external
vendors for products that must
meet contractual specifications
to conform to the requirements
B. purchased materials will
326
never meet the requirements

of the project
C. services are amenable to
statistical sampling even for
small lots
D. it looks good to the
customer when there is a
mathematical approach to
quality
E. statistics provide a basis for
customer acceptance of the
projects
A quality program within a

project should be based on
________ of errors to improve
productivity along with quality
levels.
Answer: E
A. early detection
B. early correction
C. late detection
D. late correction
E. prevention
The cost of quality is needed Answer: B

to identify opportunities for
improvement. The cost of
quality is, therefore, defined as
the dollar value associated
with ________.
A. producing a product that
meets the requirement
B. nonconformance to the
requiremenT
C. any cost for quality
personnel and tools
D. any extra cost to hire a
quality consultant
327
E. all extra efforts to

implement a quality program
When errors that affect quality

are discovered, the procedure
to improve the situation should
be to ________.
A. identify the specific error
B. correct the specific error Answer: E
C. determine the root cause of
the error
D. correct the root cause of the
error
E. all of the above
A quality audit is a powerful

tool in any quality
improvement program. For a
project that is starting a quality
improvement program, the
initial audit is used to
________.
A. identify all the faulty work
that has been completed
B. identify all the work that has Answer: D
been correctly accomplished
C. determine the single most
urgent area for improvement
D. determine the quality
baseline from which
improvements will be made
E. evaluate the quality audit's
effectiveness in identifying
errors
Customers are the driving Answer: D

force in any project and
determine the requirements to
328
be met. In dealing with

customers' complaints, it is
important to ________.
A. avoid commitment to
correction on an "out of
warranty" item
B. talk to them until they see
the reason the complaints are
trivial
C. give them something more
than they contracted to receive
to suppress any feelings of
dissatisfaction
D. provide them with the full
scope of the contracted
product or service
E. realize that customers ask
for too much and to change
their perceptions about the
product or service
requirements
In computing the cost of Answer: D

producing a quality product,
the major areas of costs
contribute to the sale price of
the product. The ratio of the
________ costs determine
whether an effective quality
program is fully implemented.
A. direct, indirect, and
overhead
B. one-time, recurring, and
variable
C. variable, fixed, and semi-
fixed
D. prevention, appraisal, and
failure
329
E. build, repair, and test
The 14-step process to quality

improvement is a progressive
approach to total involvement
of everyone in a company
toward the production of
quality products and services.
The 14-steps do not include
Answer: D
________.
A. management commitment
B. quality improvement team
C. quality measurement
D. goal achievement
measures
E. supervisor training
Trend charts reflect the relative

status of a program. Trend
charts are effective means of
________.
A. visibly reinforcing the
growth of quality
improvements to the workers
B. reflecting the precise status Answer: A
of quality failures
C. identifying to customers the
failure rates of products
D. setting standards and goals
for acceptable levels of quality
E. showing that all goals have
been achieved
In many projects, the end Answer: C

product is a "service" that does
not have physical
characteristics and attributes
to be measured to ensure
330
conformance to the
requirement. When service is
the end product of a project,
measurements ________.
A. do not apply to the service,
but the criterion is pass or fail
B. are always artificial and
present only false indications
of progress
C. can be established based
on customer expectations and
the responsibility assigned to
individuals
D. are not applicable if the
service is to an internal
function of the project
E. relate only to the actual
expenditures of funds or
receipt or revenues
Recognition of personnel Answer: C

achievements is an important
building block to the
attainment of a superior quality
program. The form of
recognition should be
________.
A. an annual bonus increase
paid at the end of the year
B. an immediate cash award
that is commensurate with the
deed
C. a nonmonetary award
presented in a public forum as
soon as the deed is identified
D. a nonmonetary award
presented in private
E. a combination of monetary
331
and nonmonetary award

presented in private
Quality in a project's product is

essential for the enhancement
of the project manager and the
selling organization. To ensure
that the customer perceives a
quality product, the project
manager must inform the
customer of the ________ to
be used so the customer will
not have a perception of Answer: B
________.
A. materials; inferior
fabrication
B. standards; gold plating
C. practices; poor
workmanship
D. pricing; gouging
E. warranty; poor service after
product sale
As one of its goals the project Answer: C

organization has quality to
specified performance
measures. When compared
with the functional
organization, the project
organization ________.
A. achieves higher levels of
quality
B. is always tailored to meet
the specific quality goals
C. is less disciplined in the
D. is more disciplined in the
332
The technical performance of

the project is derived from the
quality program instituted by
the project manager. Quality
control is one part of the
quality program that
________.
A. defines requirements and
Answer: E
performance standards
B. measures results of
operations
C. compares measured results
to performance standards
D. initiates corrective actions
for variances
E. all of the above
Quality control includes

inspection to ensure that
standards of performance are
being met. Inspection includes
________ examination of
________.
A. visual and nonvisual;
processes and components
Answer: C
B. visual and aural; processes
and materials
C. visual and technical;
materials and end products
D. aural and tactile; materials
and end products
E. aural and tactile; processes
and procedures
Quality control methods Answer: D

extend beyond the external
333

or components of the product.
The types of testing of the
product or components include
________.
A. operator, maintainer, and
environmental
B. stress, destructive, and
operating
C. in-house, public, and
private
D. laboratory, destructive, and
nondestructive
E. laboratory, fabrication, and
product
Each project needs a quality

program plan to define the
parameters of the overall
approach to meeting quality
requirements. As a minimum,
the quality program plan
addresses ________.
A. the required processes and
Answer: E
procedures
B. the inspection plan
C. the types of test to be
conducted
D. the documentation
requirements for actions
(testing, inspections, etc.)
E. all of the above
In a quality management Answer: C

information system, there is a
need to collect data and format
such data into an information
output that is useful to the
334
project manager. In developing

such an information system, it
is good to remember that an
optimum system doesn't
supply all the information
because ________.
A. there is never enough
information collected
B. the system is incapable of
processing all the required
information
C. some information costs
more to collect than it is worth
D. some information is not
available for collection and
input
E. most information relies on
related data to generate thE
proper output
Quality is one part of the three

major parameters of a project.
When the quality in a project
exceeds the specifications,
that is called ________.
Answer: D
A. excellence
B. superior quality
C. deviation plus quality
D. gold plating
E. silver plating
In the quality area, process Answer: D

control is becoming an
important element of the
manufacturing to rigorous
specifications to provide a
consistently uniform output.
The control of a process is
335
divided into controlling

temperatures, pressures,
flows, ________ , and levels in
terms of rates and time.
A. directions, elasticities
B. volumes, distances
C. speeds (velocities),
volumes
D. distances, speeds
(velocities)
E. lengths, widths
Process control is distinct and Answer: B

separate from the data
gathering function in a quality
program. While process
control regulates the functions,
data gathering is used to
________.
A. collect information on the
relative performance
standards of the process so
the output can be enhanced
through continuous
adjustments to the input
functions
B. validate the controlling
function as performing
correctly and provide
information on equipment
servicing intervals
C. provide the historical
records for production lots as
to the specifications and actual
measurements of a product
D. generate the control charts
to determine the variances in
the product and the number of
336
nonconforming products
E. ensure the products are
within tolerances and to
identify those products that
require reworking or scrapping
In the area of quality, project Answer: D

managers are struggling with
the training and indoctrination
of individuals in the need to do
the work right the first time to
conform to the requirement.
Occasionally, the project
manager will discover an
individual, either in the
planning or actual work, doing
more than is called for in the
specification. These
individuals need training to
reduce the level of "over
building" because ________.
A. the extra value given to the
customer is not recognized or
needed to complete the
project
B. the increases to the system
specifications place that
portion out of balance with the
other system components
C. it leads to increased
customer requirements for
other parts of the system
D. exceeding the specified
requirement is wasting time
and money at no value added
to the project
E. the project must be
reworked in other areas to
337
increase the level of

"goodness" to the same as the
"over build"
Tools & techniques for risk

identification include
a. Decision tree analysis,
informationgathering
techniques, checklists,
assumptions analysis,
diagramming techniques
b. Documentation reviews,
assumptions analysis,
diagramming techniques
Answer: b
c. Periodic risk response
audits, informationgathering
assumptions
analysis, diagramming
techniques
d. Risk probability and impact,
assumptions
analysis, diagramming
techniques
During project implementation Answer: d

the client interprets a clause in
the contract to mean the he is
entitled to a substantial refund
for work recently completed.
You review the clause and
disagree
with the client's conclusion. As
the project manager which of
338
the following actions should

be
taken?
a. Disregard the customer's
conclusion and continue to
process invoices
interpretations and
disputes
b. Advise the customer that
ambiguous information in
contracts is always interpreted
in favor of
the contractor
c. Immediately correct the
clause to remove any possible
misinterpretation by the
customer
d. Document the dispute and
refer to the provisions of the
contract that address
Your customer wants your

project, a process to dump
"bad" eggs before it reaches
the store
shelves, to be completed 5
months earlier than planned.
You believe you can meet this
target by Answer: c
overlapping project activates.
The approach you plan to use
is known as:
a. Concurrent engineering
b. Crashing
c. Fasttracking
d. Leveling
Which of the following Answer: b

339
statements are true about the

work breakdown structure?
a. Each level represents an
increasing level of detail
b. The work breakdown
structure is deliverable
oriented
c. The work breakdown
structure is a detailed
management process
Examples of team building

activities include:
a. Establishing ground rules
for dealing with conflict.
Answer: d
b. Regular progress reviews.
c. Periodic social events for
team members.
d. All of the above
Resource planning involves Answer: a

determining what
____________ resources and
what
_______________ of each
should be used and when they
would be needed to perform
project
activities.
a. Physical resources,
quantities
b. Quantities, physical
resources
c. Dynamic resources,
parametric modeling
technique
d. Parametric modeling,
340
dynamic resources
_________ is the formal

procedure for sanctioning
project work to ensure it is
done at the right
time. Answer: c
a. Organizational procedures
b. Status review
c. Workauthorization system
d. Project planning
Inputs to Integrated Change

Control include:
a. Project plan, performance
reports and lessons learned
b. Project plan, project reports
Answer: d
and change request
c. Product plan, performance
reports and change request
d. Project plan, performance
reports and change request
A tool and technique of quality

control that keeps errors from
reaching the client is
a. Corrective action
b. Inspection Answer: b
c. Product scope
management
d. Product quality
management
The risk management plan us Answer: c

a major component of
a. The procurement plan
b. The project charter
c. The project plan
341
d. The project scope
Characteristics of a code of
accounts are
a. It uniquely identified each
element of the work
Answer: d
breakdown structure
b. It includes work packages
c. It is a numbering system
d. All of the above
Procurement planning is the

process of identifying which
project needs can best be met
by
procuring products or services
outside the project
organization. When should this
effort be
Answer: b
accomplished?
a. After contract negotiation
b. During the scope definition
effort
c. During the cost definition
effort
d. While creating the work
breakdown structure
Inputs to contract closeout

include
a. Contract documentation
b. Contract Updates Answer: a
c. Procurement audits
d. Procurement management
plans
If the acceptance sampling Answer: d

attribute for a production lot is
342
20 percent
a. Twenty percent of all lots
must be test
b. Twenty percent of all lots
must pass the test
c. Any given lot must have 20
percent or fewer defects
d. A sampling of a given lot
must have 20 percent or fewer
defects
___________ is/are an
uncertain event that or
condition that, if it occurs, has
appositive or
negative effect on a project. Answer: c
a. Assumption analysis
b. Delphi technique
c. Risk
d. Triggers
Outputs of procurement
planning include
a. Makeorbuy analysis, expert
judgment, contract type
selection, contract
b. Scope statement,
Answer: b
Correspondence, contract file,
contract
c. Procurement management
plan and statement of work
d. Procurement management
plan and contract changes
Establishing minimum Answer: b

requirements of performance
for evaluation criteria is also
know as a
343
a. Weighting system
b. Screening system
c. Estimating system
d. Change control criteria
Inputs to quality planning

include
a. Quality policy, historical
information, scope statement,
product description standards
and
regulations
b. Quality policy, product
description, scope statement,
and
Answer: b
regulations
c. Quality policy, quality
management plan, operational
definitions, product
description
standards and regulations
d. Quality policy, checklists,
quality management plan,
and
regulations
When the project does not Answer: b

obtain products and services
from outside the performing
organization, the processes
from solicitation planning
through contract closeout
would
a. Still be performed
b. Would not be performed
c. Would be performed in
344
stages
d. Would be associated with
the work breakdown stages
The SPI, which is used to

estimate project completion
date, is calculated by?
a. EV/PV Answer: a
b. EV/AC
c. ACWS/PV
d. PV/EV
The overall duration of the

project schedule is not
influenced by:
a. Using the arrow
diagramming method instead
of the precedence
diagramming method
(PDM) of scheduling.
Answer: a
b. Using discretionary
dependencies as constraints.
c. The availability of the
to perform the work.
d. The capabilities of the
to perform the work.
Response development is Answer: a

sometimes referred to as
a. Response planning & risk
mitigation
b. Reponses planning and risk
control
c. Risk control and response
mitigation
d. Risk mitigation and
345
response control
The terms strong matrix,

balanced matrix, and weak
matrix when applied to the
matrix structure
in project organization refer to
the
a. Ability of the organization to
achieve its goals
Answer: b
b. Degree of authority the
project manager has over
team resources
c. Physical proximity of project
team members to one another
and to the project manager
d. Degree to which team
members bond together
The project manager should

be assigned during what
phase
a. Initiation Answer: a
b. Project Planning
c. Scope Planning
d. Scope Definition
Effective communication is Answer: d

critical for project success.
Scope changes, constraints,
assumptions, integration and
interface requirements,
overlapping roles and
responsibilities, and
many other factors all pose
communications challenges.
Communication barriers lead
to
346
a. Reduced productivity
b. Increased hostility
c. Low morale
d. Increased conflict
In what way does free float

(FF) differ from total float
(TF)?
a. Free float is commonly
referred to as "slack time,"
whereas total float is
commonly referred
to as "float time."
b. Free float only affects the
early start of any immediately Answer: a
following activities.
c. There is no difference; the
two terms are functionally
equivalent.
d. An activity's free float is
calculated by subtracting its
total float from the critical
path's total
float.
As the leader of a project Answer: a

team, the project manager
may be required to assess the
competencies
of his or her team members.
Occasionally, some
weaknesses or areas for
improvement will be
identified. The project
manager should:
a. Communicate those
weaknesses and establish a
performance improvement
347
program
b. Remove any team members
who have demonstrated
weaknesses in critical
knowledge areas
c. Hire additional resources to
compensate for weak areas
d. Wait for the team members
to fail in an assignment to
justify termination
Which of the following is a tool

or technique used in integrated
change control?
a. Organizational procedures Answer: b
b. Performance measurement
c. Performance reports
d. Project plan updates
The main difference between Answer: d

the two types (ADM and PDM)
of the critical path method
(CPM)
of scheduling is the:
a. Arrow diagramming method
(ADM) is a more accurate
method.
b. Arrow diagramming method
(ADM)a deterministic method
whereas the precedence
diagramming method (PDM) is
a probabilistic method.
c. Precedence diagramming
method (PDM) is a
deterministic method whereas
the arrow
diagramming method (ADM) is
a probabilistic method.
348
d. Placement of the activity on

the logic diagram line.
Tools and techniques of

performance reporting include
a. Performance reviews,
variance analysis, trend
analysis, earned value
analysis, information
distribution tools and
techniques
b. Performance reviews, trend
distribution tools
and techniques, work Answer: a
breakdown structure
c. Performance reviews,
variance analysis, earned
value analysis, external
information,
information distribution tools
and techniques
d. Performance reviews,
variance analysis, trend
retrieval systems
Inputs to scope definition Answer: c

include
a. Scope requests, constraints,
assumptions, other planning
outputs, historical information
b. Scope statements, scope
statement updates, other
planning outputs, historical
information
349
c. Scope statements,
constraints, assumptions,
other planning outputs,
historical information
d. Scope statements, scope
measurement plan, other
planning outputs, historical
information
Contracts may be called

a. An agreement, a
subcontract, a purchase
request, memorandum of
understanding
b. An agreement, a
subcontract, a purchase order,
understanding of purchasing
Answer: d
request
c. An agreement, a request, a
purchase order, memorandum
of understanding
d. An agreement, a
subcontract, a purchase order,
memorandum of
understanding
A scope change is defined as

a. Change in technical
specifications
b. Modification to the agreed
upon project scope as defined
in the work breakdown Answer: b
structure
c. Change in product
description
d. Change in the personnel
authorization system
350
Inputs to communication
planning include
a. Communication
requirements, communications
management plan, constraints,
assumptions
b. Communication
requirements, communications
technology, constraints,
assumptions Answer: b
c. Performance measurement
documentation, project
archives, constraints,
assumptions
d. Performance measurement
documentation, project
archives, performance reports,
change
request procedures
. ____________ sometimes,
called risk symptoms or
warning signs, are indications
that a risk
has occurred or is about to
Answer: d
occur.
a. Assumption analysis
b. Delphi technique
c. Risk
d. Triggers
Before reporting a perceived Answer: d

violation of an established rule
or policy the project manager
should:
a. Determine the risks
associated with the violation
b. Ignore the violation until it
351
actually affects the project

results
c. Convene a committee to
review the violation and
determine the appropriate
response
d. Ensure there is a
reasonably clear and factual
basis for reporting the violation
The project charter should be

issued by
a. The project manager
b. Client requesting services Answer: c
c. Manager external to project
d. Manager internal to the
project
Name the ethical code you'll

be required to adhere to as a
PMP
a. Project Management Policy
of Ethics
b. Project Management
Professional Standards Answer: c
c. Project Management
Professional Code of
Professional Conduct
d. Project Management Code
of Professional Ethics &
Standards
All of the following are Answer: a

true of Pareto
diagrams except
a. Pareto like Scatter
diagrams use two
variables
352
b. Pareto diagrams
are histograms
c. Pareto diagrams
rank order
d. It is sometimes
referred to as the
80/20 rule
Inputs to scope verification

include the following
a. Work results, project
documentation, work breakdown
structure, scope statement, and
project
plan
b. Work results, product
project plan Answer: b
c. Work results, product
structure, scope change control,
and
project plan
d. Work results, product
project performance
measurement
The most common Answer: c

communication problem during
negotiations is that
a. One side may try to confuse
the other side
d. One side may be too busy
thinking about what to say next to
hear what is being said
353
c. Each side may misinterpret

what the other side has said
d. Each side may give upon the
other side
Outputs of Integrated Change

Control include:
a. Project plan updates,
corrective action and lessons
learned
b. Project plan updates,
performance updates and
Answer: a
lessons learned
c. Project plan updates,
corrective action and work
breakdown structure
d. Project plan updates,
corrective action and progress
meetings
Residual and secondary risks are

outputs from
a. Risk management planning
Answer: d
b. Risk identification
c. Quantitative risk analysis
d. Risk response planning
One of the outputs of risk

identification is
a. Potential risk events
Answer: a
b. Corrective actions
c. Alternate strategies
d. Alternative action
Tools and techniques for Answer: d

administrative closure include
a. Performance reporting tools,
project reports, project
354
presentations
b. Performance reporting tools
and techniques, project
management skills, project
presentations
c. Performance reporting tools
and techniques, project reports,
project analysis
d. Performance reporting tools
and techniques, project reports,
project presentations
Which of the following is not a

tool or technique of project plan
execution?
a. PM Information system Answer: d
b. Organizational procedures
c. General management skills
d. Change control system
During your assignment as Answer: d

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 noncompete
clause in the new hire's condition
of employment. You should:
a. Accept the information and
agree to keep it confidential
between you and the new hire.
355
b. Review the information and

only accept only what may have
a direct impact on the project's
financial status.
c. Ignore the offer to share and
move forward with the project
d. Review the condition of
employment with the new hire
and advise her to reconsider the
offer.
Tools and techniques for scope

planning include
a. Performance measurement,
product analysis, benefit/cost
analysis, alternative
identification,
expert judgment
b. Performance reports,
performance measurement,
Answer: d
alternative identification, expert
judgment
c. Project analysis, benefit/cost
identification, and expert
judgment
d. Product analysis, benefit/cost
identification, expert judgment
What is the preferred method of

verifying scope?
a. Work results
Answer: b
b. Inspection
c. Acceptance
d. Lessons learned
One way to shorten your project Answer: a

356
schedule is to assign three

developers to each activity in the
project design phase instead of
two. Although you are
considering this approach, your
design
phase project team would double
in size as a result. This approach
tends to
a. Reduce productivity
b. Increase productivity
c. Reduce the need for quality
auditing, thereby reducing overall
resource costs
d. Improve production
proportionately more than the
increase in resources
What is the work breakdown

structure typically used for?
a. To define the project schedule
b. To define who is responsible
for completing a task Answer: d
c. To manage scope change
d. As the basis for organizing and
defining the total scope of the
project
To the extent possible, final Answer: d

contract language should reflect
all agreements reached.
Subjects
usually covered contract
financing, price and
a. Responsibilities/authorities
b. Applicable terms and law
c. Technical and business
management approaches
357
d. All of the above
In the first attempt in resource

leveling the project schedule,
what would you expect to occur?
a. For the number of required
resources to increase during
certain time periods of the
project.
Answer: d
b. For the number of required
resources to decrease during
certain time periods of the
project.
c. For the overall project duration
to increase.
What are the inputs to project

Plan Execution?
a. Project plan, work breakdown
structure, organizational policies,
preventive action and
corrective action
b. Project plan, work results,
change requests, preventive
action and corrective action Answer: d
c. Project skills, supporting detail,
organizational policies,
preventive action and lessons
learned
d. Project plan, supporting detail,
organizational policies,
preventive action and corrective
action
Scope verification differs from Answer: a

quality control in that it is
primarily concerned with
358
a. Acceptance of the work results

while quality control is primarily
concerned with the
correctness of the work results.
b. Correctness of the work
results while quality control is
primarily concerned with the
acceptance of the work results.
c. Completeness of the work
results while quality control is
primarily concerned with the
acceptance of the work results.
d. That all items requested in the
scope statement have been
completed
Tools and techniques of quality

control include
a. Benchmarking, control charts,
Pareto diagrams, statistical
sampling, flowcharts, trend
analysis
b. Design of experiments, control
charts, Pareto diagrams,
statistical sampling, flowcharts,
Answer: c
trend analysis
c. Inspection, control charts,
sampling, flowcharts, trend
analysis
d. Inspection, control charts,
sampling, quality audits, quality
improvements
In the closing phase of your Answer: c

project, a number of
administrative issues must be
359
completed. A
concern is to assess project
effectiveness. One way to
accomplish this task is to
a. Prepare a performance report
b. Perform an inspection
c. Hold a performance review
d. Conduct a procurement audit
A person's negotiating Answer: d

skills/temperament certainly are
influenced by his/her culture.
However,
other factors, such as education
and experience, also are at work.
And over time, an individual
who is living in a culture that is
different from his or her own may
take on characteristics of the
new culture. This person may
behave from a new frame of
reference. With respect to
negotiation, this illustrates the
importance of
a. Always looking at those with
whom you are negotiating as
members of a particular cultural
group
b. Becoming overly dependent
on cultural knowledge as the
cornerstone for all negotiations
c. Recognizing that cultural
stereotyping should be used as a
starting point for all international
negotiations
d. Moving beyond cultural
stereotyping and seeing people
as individuals with unique
360
personality traits and

experiences
Scope definition is
a. Subdividing the major project
deliverables into smaller, more
manageable components
b. Involves communicating
Answer: a
changes with the client
c. Is the sole responsibility of the
project manager
d. Is the responsibility of the
expeditor
As a project manager your

responsible for maintaining and
ensuring integrity for all of the
following except
Answer: d
a. Personal integrity
b. Project integrity
c. Product integrity
d. Integrity of others
During closeout, many project

managers tend to delay
personnel reassignment because
a. The team members do not

want to move on to new
assignments
b. They believe that no one will Answer: d
want to leave the project
c. The functional managers do
not want the team members to
return
d. They are reluctant to confront
any interpersonal conflicts that
may occur in the process
361
Monte Carlo analysis is

a. Not accurate
b. Rarely used
c. The basis for most schedule
simulations Answer: c
d. Is an estimate of the
probability that a given risk will
happen within a certain time
frame.
Inputs to risk management Answer: c

include
a. Project charter, project plan,
defined roles and responsibilities,
stakeholder risk tolerance,
templates for the organization's
risk management plan, and the
work breakdown structure
b. Project plan, organizational
risk management policies,
defined roles and
responsibilities,
work
breakdown structure
c. Project charter, organizational
defined roles and
responsibilities,
work
breakdown structure
d. Project charter, organizational
362
responsibility assignment matrix,

work
breakdown structure
The chances for successful

completion of a multidisciplinary
project are increased if project
team members are
a. Focused on individual project
activities Answer: c
b. Politically sensitive to top
management's needs
c. Problem oriented
d. Focused on customer
demands
Your lead engineer estimates that

a work package will most likely
require 50 weeks to
complete. It could be completed
in 40 weeks if all goes well, but it
could take 180 weeks in the
worst case. What is the PERT Answer: b
estimate for he expected duration
of the work package?
a. 65 weeks
b. 70 weeks
c. 75 weeks
d. 80 weeks
A work authorization system is a Answer: c

_________________ for
sanctioning project work to
ensure
that work is done at the right time
363
and in the proper sequence.

a. Informal procedure
b. Exchange procedure
c. Formal procedure
d. Monitoring procedure
The work breakdown structure

which is an output of scope
definition is
a. A objectoriented grouping of
project components that
organizes and defines the total
scope
of the project
b. A multioriented grouping of
project components that
Answer: c
scope
of the project
c. A deliverableoriented grouping
of project components that
scope of the project
d. Is a listing of items outside the
scope management plan which
will need to be included in the
project planning
phase/requirements
Tools and techniques of Answer: b

procurement planning include
a. Scope statement, Product
description, Procurement
resources, and market
conditions
b. Makeorbuy analysis, expert
selection
364
c. Makeorbuy analysis, expert

selection, contract
d. Scope statement,
Correspondence, contract file,
contract
Common causes of variances

are a result of all of the following
except:
a. Variances that are random
Answer: d
b. Variances that are always
present
c. Variances that are predictable
d. Variances that are special
The work breakdown structure is

an output of what phase
a. Initiation
Answer: c
b. Scope planning
c. Scope definition
d. Scope verification
The project schedule is not used

to determine:
a. The starting and finishing
dates of the activities.
Answer: d
b. Occasional changes to the
activity listing.
c. The total float of the activities.
d. The project's budget.
Scope definition is necessary to Answer: d

a. Improve the accuracy of cost,
time, and resource estimates
b. Facilitate clear responsibility
assignments
c. Define a baseline for progress
365
measurement and control

d. All of the above
Risk identification should be

done
a. On a regular basis throughout
project lifecycle
Answer: a
b. Early in the planning phase
c. In the design phase
d. When creating the work
breakdown structure
Inputs to cost estimating include

the following
a. Work breakdown structure,
resource requirements, resource
rates, activity duration estimates,
estimating publications, scope
statement, and organizational
policies
b. Work breakdown structure,
estimating publications,
assumptions, constraints, and
Answer: d
risks
c. Work breakdown structure,
estimating publications, historical
information, code of accounts,
risks
d. Work breakdown structure,
estimating publications, historical
information, chart of accounts,
risks
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characteristic of a work
package?
a. It is a summary task at the top
level of the Work breakdown
structure
b. It is a summary task at the
Answer: c
middle level of the Work
breakdown structure
c. It is a summary task at the
lowest level of the Work
breakdown structure
d. It usually takes not more than
80 hours to complete
Quality audits when preformed

correctly will provide the following
benefit(s)
a. The product of the project is fit
for use and meets safety
standards
b. Allow for applicable laws and Answer: a
standards not to adhered to
c. Corrective action is
implemented continuously
throughout the project
d. Quality improvements need
not be identified
Outputs from response

development could include all
except?
a. Risk management plan Answer: d
b. Insurance policies
c. Contingency plan
d. Corrective action
In dealing with the Answer: b

367
client/customer, the project

manager should always
a. Do whatever it takes to satisfy
the customer and win additional
business
b. Develop a friendly, honest, and
open relationship
c. Try to maximize profits by
encouraging scope creep
d. Be honest to the extent that
the project organization is
protected from litigation
The level of authority of the

project manager:
a. Is dependent on corporate
policies.
b. Varies considerably from Answer: d
company to company.
c. Is delegated by senior
management.
You are the project manager and

responsible for quality audits.
You have been accused of being
a fanatic because of your
practice of conducting not one,
but multiple, quality audits on a
project. Which one of the Answer: d
following types of audits is not an
example of a quality audit?
a. Internal
b. System
c. Baseline
d. Scope
Activity A has a duration of 3 Answer: b

368
days and begins on the morning

of Monday the 4th. The
successor activity, B, has a
finishtostart relationship with A.
The finishtostart relationship
has 3 days of lag, and activity B
has a duration of 4 days. Sunday
is a nonworkday. What can
be determined from these data?
a. Calendar time between the
start of A to the finish of B is 7
days.
b. Calendar time between the
days.
c. Calendar time between the
days.
d. Calendar time between the
days.
In organizing a project, a project Answer: d

manager must deal with conflict.
Which statement is true
regarding conflict in projects?
a. Strong matrix project
managers have few human
resource conflicts, because they
can dictate
their needs to functional
managers.
b. Sources of conflict include
project priorities, PERT/CPM
schedules, contract
administrative
procedures, and type of
contract.
369
c. Conflict is to be avoided
whenever possible.
d. A matrix form of organization
can produce a lack of clear role
definitions and lead to
ambiguous jurisdictions between
and among functional leaders
and project managers.
Design of experiments is an
analytical technique which helps
a. Determine how various
statistical data will interrelate
based on results
b. Anticipate the probability that Answer: c
something will fail
c. Identify which variables have
the most influence on the overall
out come
d. Allow for random sampling
A scope change control defines Answer: c

the procedures by which the
project scope may be changed.
It
includes
a. Performance measurement,
tracking systems, and
appropriate approval level for
authorizing
changes
b. Paperwork, project
management information system
(PMIS), and appropriate approval
level
for authorizing changes
c. Paperwork, tracking systems,
and appropriate approval level
370
for authorizing changes

d. Project management
information system (PMIS),
change requests modification
system, and
appropriate approval level for
authorizing changes
Which of the following is true

regarding schedule variances?
a. The always impact the
schedule and never the cost
b. The always impact the cost Answer: c
c. They sometimes impact the
schedule
d. They sometimes impact the
schedule and always the cost
When choosing the most

appropriate form of project
organization, the first step is to
a. Produce an initial project plan
and determine the functional
areas responsible for each task
b. Develop a project schedule,
including a topdown flowchart, Answer: a
and identify the functional areas
to perform each task
c. Refer to the project charter
developed by top management
d. Create the WBS and let it
determine the project
organizational structure
. Steps in effective goal setting Answer: b

are:
a. Negotiation, resource
allotment, published goals.
371
b. Definition, setting completion

time, resource allotment, quality
standards.
c. Setting quality standards,
setting quantity standards,
defining other contributions.
d. Establish project goals,
establish sub team goals,
establish individual goals, define
reward
and recognition plan.
Two of the types of discretionary

dependencies that typically have
an effect on the sequencing
of the activities in the schedule
are those containing "hard logic"
and those containing "soft
logic." An example of a "soft
logic" dependency would be:
a. Project A, the company's
participation in a Pump Industry
trade show, depends on the
successful completion of Project
B, which is building the prototype
Answer: b
pump that is going to be
displayed.
b. To install the plumbing and
electrical work at the same time
on a single family dwelling.
c. To schedule all moving of
equipment weighing in excess of
5 tons because it would take too
much time now do move the
equipment.
d. For the wrapping of a box of
software to depend on enclosing
the manual and software first.
372
As part of your project plan you

must develop an effective
method of communication for
your
multinational team of
stakeholders. You have several
choices of media available. The
appropriate action to take in the
development of the
communication plans would be
to:
a. Use the standard media that
Answer: c
has been in effect for your
previous projects
b. Use multiple forms of media to
ensure that everyone receives
the information
c. Discuss the available options
with the stakeholders and obtain
their input
d. Obtain additional funding from
the project sponsor and develop
a project specific
communications infrastructure.
You are managing the Answer: c

development of a highly
controversial project. Today you
called a team
meeting and explained the
project objectives to the team
and several members stood up
and left
citing philosophical objections to
the project. You chased them
down the hall trying to convince
them to work on the project and
explaining that you would use the
373
best quality management

plan available for this work. One
of the team members stopped
abruptly and demanded to know
what the purpose of such a plan
would be. You explained that the
objective of any quality
management plan is to
a. Create some regulations to
govern the project
b. Ensure that process
adjustments are made in a timely
fashion
c. Improve quality in every aspect
of project performance
d. Ensure that the scope
management plan is followed
. Inputs to procurement planning Answer: b

include
a. Scope statement, Product
resources, market conditions,
other
planning outputs and expert
judgment
b. Scope statement, Product
other
planning outputs, constraints and
assumptions
c. Scope statement, Product
other
planning outputs and work
breakdown structure
374
d. Scope statement, Product

other
planning outputs and
procurement documents
. Information typically required to

determine project
communications requirements
include
a. Project organization and
Answer: d
relations
b. Disciplines, departments, and
specialties involved in the
project
c. External information needs
d. All of the above
You are managing a project to Answer: d

develop nutritional soda for the
"under 20" market. You have
recently heard that the client calls
your progress reports the "Code
of Crap" because they seem
to be written in a foreign
language and incomprehensible.
This situation could have been
avoided by
a. Informing the client at the start
of the project of the types of
reports they will receive
b. Using risk management
techniques to identify client
issues
c. Hiring an expert report writer to
prepare standard reports
375
d. Developed a communications
plan
Investment in project
development prevention is most
often borne by the
a. Performing organization Answer: a
b. Project manager
c. Project team
d. Product user
Inputs to contract administration

include
a. Contracts, work results,
change request and seller
invoices
b. Contracts, work results, scope
Answer: a
request and seller invoices
c. Contracts, work results,
contract change control system
d. Contracts, work breakdown
structure, change request and
seller invoices
The project manager, when

communicating with an action-
oriented person should
a. Be as brief as possible
b. Provide options, including the
Answer: a
pros and cons
c. Remain patient
d. Speak as quickly to ensure
that all the information is
conveyed
What are the tools and Answer: d

techniques for project plan
development?
376
a. Project planning methodology,

stakeholder skills and
knowledge, project management
information system (PMIS) and
the work breakdown structure
b. Project planning methodology,
historical information
c. Project planning methodology,
the project plan
d. Project planning methodology,
earned value management
(EVM)
The diagram which ranks defects

in the order of frequency of
occurrence, using a histogram to
depict 100 percent of the defects
is called: Answer: d
a. Bar chart
b. Critical path
c. Network chart
d. Pareto chart
Team development is based on Answer: a

the
a. Individual development of
each team member
b. Training provided to the project
team
377
c. Project's organizational climate

of cooperation, open
communication, and trust
d. Organizational structure of the
project
You are ready to enter a

negotiating session with a group
that is from Russia. The
Russians have
been known to be aggressive
and assertive people who like to
talk much more than they like to
listen. To earn your bonus, you
must not be at a disadvantage in
your negotiations with them.
Answer: a
Therefore, you must concentrate
on
a. Active listening
b. Earning the trust on the other
side of the negotiating table
c. Seating arrangements in the
negotiating room
d. Setting and following strict
time limits at each step of the
negotiating process
_____________ is the most

accurate cost estimating
technique.
A. Computerized Answer: B
B. Bottom up estimating
D. Square foot
A product life cycle is a series of Answer: B

phases whose name and number
is
378
determined by the organization's

needs regarding control of the
project.
A. True
B. False
In the phase sequence defined

by project life cycles, a phase is
not begun
until all deliverables are
Answer: B
approved from the preceding
phase.
A. True
B. False
_____________ involves using

project characteristics in a
mathematical
model.
Answer: C
A. Analogous estimating
B. Lifecycle costing
C. Parametric modeling
D. Bottom up estimating
Project risk is defined as the

cumulative effect of chances of
_____ which
will adversely affect project
objectives. Answer: D
A. Likely events
B. Complex activities
C. Complex schedules
D. Uncertain occurrences
_____________ is generally the Answer: C

least accurate.
A. Using stakeholders to predict
cost
379
B. Parametric modeling
D. Computerized estimating
The _____________ task

relationship is defined by the
activity duration:
A. Starttostart Answer: D
B. Finishtofinish
C. Starttofinish
D. None of the above
The contingency allowances

established to cover unforeseen
costs on
your project have been set at 8%
of total project cost. The total
dollars in
the contingency allowances are
_____ as the project nears
completion.
Answer: A
A. Reduced to reflect a
percentage of the remaining
work
B. Increased to meet the
unidentified surprises
C. Decreased to reduce the
accounting work
D. Spent to ensure there is no
extra money shown in the budget
Contract closeout contains:

A. Contract documentation
B. Procurement audits
Answer: D
C. Formal acceptance and
closure
D. All of the above
380
General Management
encompasses all but:
A. Finance and accounting
B. Strategic planning Answer: D
C. Sales and marketing
D. Developing a new product or
service
A program is defined in the

PMBOK as:
A. A group of projects managed
in a coordinated way to obtain
benefits not
available from managing them
individually
B. A number of subprojects
divided into manageable
components enabling Answer: A
a project team to ensure the
completion of a desired outcome
C. A project plan developed by
key management personnel to
obtain a
desired outcome
D. The means to subdivide the
project into manageable
segments
Which process is not included in

Project Time Management?
A. Activity definition
B. Activity sequencing
Answer: D
C. Schedule development &
schedule control
D. Work breakdown structure
(WBS)
Performance improvements Answer: A

381
include all but:

A. Improvements in amount of
overtime worked
B. Improvements in individual
skills
C. Improvements in team
behaviors
D. Improvements in team
capabilities
Which describes how cost

variances will be managed?
A. Cost management plan
Answer: A
B. Cost baseline
C. Cost estimate
D. Chart of accounts
. __________ coordinates people

and other resources to carry out
the plan.
A. Work Breakdown Structure Answer: D
B. Resource planning
C. Resource leveling
D. Executing process
The process of identifying and

defining a product or service is
called:
A. Procurement planning Answer: A
B. Source selection
D. Contract closeout
The Critical Path Method of Answer: C

scheduling is:
A. A mathematical analysis
technique for schedule
development
382
B. A technique that uses

weighted averages to calculate
project duration
C. A technique that uses
sequential network logic for
schedule
development
D. A technique that allows for
probabilistic treatment of both
network logic
and activity duration estimates
The core planning processes

are:
A. Scope definition, Resource
planning, Cost estimating,
Schedule
development, Activity definition
B. Inputs, Control, Status reports,
Answer: A
Risk management
C. Planning, Resource planning,
Quality assurance, Risk control
D. Scope definition, Team
development, Schedule control,
Budget control,
Contract administration
. _____________ is controlling
changes to the budget.
Answer: D
B. Cost estimating
C. Cost budgeting
D. Cost control
Key Management skills include: Answer: D

A. Leading
B. Communicating
C. Negotiating
383
D. All of the above
The process that is not a part of

time management is:
A. Activity Definition
Answer: B
B. Resource Planning
C. Schedule Development
D. Activity Sequencing
The outputs from schedule

control include all except:
A. Schedule updates
Answer: B
B. Revisions
C. Corrective action
D. Lessons learned
_____________ includes the

process required to ensure that
the project
includes all the work required,
and only the work required, to
complete the Answer: B
project successfully.
A. Project plan update
B. Project scope management
C. Scope change control
D. Product description
Problem solving addresses

potential problems on the
project. Answer: B
A. True
B. False
A resource pool description Answer: B

provides:
A. The unit cost for each
resource
384
B. What are the resources are

available, at what times and in
what
patterns
C. Performance of the pool
resources
D. Duration of the project
_________ recognizes that a

project or phase should begin
and commits
the organization to do so.
Answer: A
A. Initiating process
B. Solicitation process
C. Scoping process
D. Planning process
An output of scope definition is:

A. Work breakdown structure
B. Scope statement Answer: A
C. Scope management plan
D. Corrective action
Risk event is the precise

description of what might happen
to the _____ of
the project.
Answer: B
A. Manager
B. Detriment
C. Schedule
D. Budget
A RAM is defined as:

A. Random access memory
B. Rapid air movement
Answer: D
C. Responsibilities and methods
D. Responsibility assignment
matrix
385
A key barrier to team

development is:
A. When team members are
accountable to both functional
and project
managers.
B. A strong matrix management
Answer: A
structure.
C. When major problems delay
the project completion date or
budget
targets.
D. When formal training plans
cannot be implemented.
Contingency planning is a means

to _____ risks to the project
through a
formal process and provides the
resources to meet the risk
Answer: A
events.
A. Address
B. Classify
C. Assign
D. Resolve
____________ devises and

maintains a worktable scheme to
accomplish
the business need that the
project was undertaken to
address. Answer: C
A. Development process
B. Scoping process
C. Planning process
D. Information development
process
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Staffing requirements do not

define:
A. What types of skills are
required
B. What time frames Answer: D
C. What kinds of individuals or
groups
D. What type of resource
planning is required
A major assumption of all

network scheduling methods is
that activity
durations must be _____.
Answer: C
A. Statistically dependent
B. Variance distributed
C. Statistically independent
D. Deterministic
Topics that deal with people

include:
A. Leading, communicating, and
negotiating with others
B. Delegating, motivating,
coaching, mentoring, and other
subjects related
to dealing with people
Answer: D
C. Performance appraisal,
recruitment, retention, labor
relations, health
and safety regulations, and other
subjects related to administering
the
human resource function
D. All of the above
An output of the scope change Answer: B

control process is:
387
A. Scope statement
B. Lessons learned
C. Formal acceptance
D. Work breakdown structure
Constraints do not include:

A. Impacts of weather
B. Organizational structure of the
Answer: A
performing organization
C. Collective bargaining
D. Expected staff assignments
_____________ is not one of the

tools and techniques used in
Contract
Administration:
A. Contract change control Answer: B
system
B. Contract negotiation
C. Payment system
D. Performance rating
Operations and projects share

many characteristics.
Answer: A
A. True
B. False
The outputs of Contract

Administration are correspondence,
contract
Answer: A
changes, and payment requests.
A. True
B. False
The _____________ documents the Answer: C

characteristics of the product or
388
service that the project was

undertaken to create.
A. Resource plan
B. Project charter
C. Project description
D. Scope statement
Outputs from the initiation process

are:
A. Project manager
identified/assigned Answer: D
B. Constraints
C. Assumptions
D. All of the above
A _______ is a series of actions

bringing about a result.
A. Project plan
Answer: B
B. Process
C. Schedule
D. Flowchart
_____________ involves determining

what quantities are to be used to
perform project activities.
A. Resource planning Answer: A
B. Cost estimating
C. Cost budgeting
D. Cost control
Project Scope Management includes

which processes:
A. Initiation
Answer: A
B. Project Plan Execution
C. Overall Change Control
D. Performance Reporting
_____________ is the cost Answer: A

389
estimating technique used most

frequently in
the early stages of a project.
Project Integration Management

A. Describes the processes required
to ensure that the project includes all
the work required to complete the
project successfully
B. Describes the processes required
to ensure timely completion of the
project
Answer: C
C. Describes the processes required
to ensure that the project will satisfy
the needs for which it was
undertaken
D. Describes the processes required
to ensure that the various elements
of the project are properly
coordinated
Risk management is defined as the

art and science of _____ risk factors
throughout the life cycle of a project.
A. Researching, reviewing and acting
on
Answer: B
B. Identifying, analyzing and
responding to
C. Reviewing, monitoring and
managing
D. Identifying, reviewing and avoiding
Inputs to contract administration do Answer: D

not include:
390
A. Contract
B. Change requests
C. Work results
D. Market conditions
The duration of most activities will be

significantly influenced by the
resources assigned to them. Answer: A
A. True
B. False
The process of developing a written

scope statement as the basis for
future project decisions is called:
A. Scope development Answer: B
B. Scope planning
C. Project development
D. Project selection
Project selection criteria cover

management concerns such as:
A. Financial return
Answer: D
B. Market share
C. Public perception
D. All of the above
The WBS is:

A. An organization oriented family
tree of the project.
B. A task oriented family tree of the
project.
C. A cost centered structure of the Answer: B
project.
D. Only required on large complex
projects where separately identifiable
work packages are difficult to
construct.
391
Which process is not included in

Project Cost Management?
A. Closeout
Answer: A
B. Estimating
C. Budgeting
D. Control
_____________ allocating the overall

costs to individual work items in
order to establish a cost baseline for
measuring project performance.
Answer: C
B. Cost estimating
C. Cost budgeting
D. Cost control
Which is not an input to Procurement

Planning?
A. Scope statement
Answer: B
B. Contract
C. Product design
D. Market conditions
A project can best be defined as: Answer: D

A. Series of nonrelated activities
designed to accomplish single and
multiple objectives.
B. Coordinated effort of related
activities designed to accomplish a
goal
without a wellestablished end point.
C. Cradletograve activities which
must be accomplished in less than
one
year and consumes human and non-
human resources.
D. "Any undertaking with a definable
time frame, welldefined objectives,
392
and consumes both human and non-

human resources with certain
constraints."
Characteristics of project phases are:

A. Milestones
B. Deliverables Answer: D
C. Activities
D. All of the above
Which is a phased budget used to

measure and monitor cost
performance
on the project?
Answer: A
A. Cost baseline
B. Project schedule
C. Cost management plan
D. EAC
Project risk is characterized by three

factors: _____.
A. Severity of impact, duration of
impact and cost of impact
B. Identification, type of risk category Answer: C
and probability of impact
C. Risk event, risk probability and the
amount at stake
D. Occurrence, frequency and cost
A project is defined in the PMBOK Answer: C

as:
A. A process of considerable scope
that implements a plan
B. A group of ideas managed in a
coordinated way to obtain a desired
outcome
C. A temporary endeavor undertaken
to create a unique product or service
393
D. A collection of activities with a

beginning and an end
Which of the following is best for

handling crossfunctional project
needs
for a large, complex project?
Answer: A
A. A strong matrix organization
B. A project coordinator
C. A project expeditor
D. Direct executive involvement
Project Stakeholders are defined as:

A. Individuals and organizations who
use the project's product
B. Individuals and organizations
whose interest may be positively or
negatively affected as a result of
Answer: D
project execution or successful
project
completion
C. Individuals and organizations who
provide the financial resources
D. All of the above
The tools and techniques used in the

initiation process are:
A. Product analysis
Answer: C
B. Project schedule development
C. Expert judgment
D. Project budget
Likely schedule durations for activity Answer: D

duration estimating are available
from
historical information that is derived
from the following sources except:
A. Commercial duration databases
394
B. Project files
C. Project team knowledge
D. Outside consultants
_____________ is developing an
approximation of the costs of the
resources needed to complete project
activities.
Answer: B
B. Cost estimating
C. Cost budgeting
D. Cost control
____________ must be measured

regularly to identify variances from
the
plan.
Answer: B
A. Stakeholder requirements
B. Project performance
C. Schedule control
D. Project controls
_____________ is ensuring all

features and functions are included in
a
product or service
Answer: B
A. Project scope
B. Project verification
C. Project control
D. Product scope
A process that is not part of Project

Risk Management is:
A. Identification
Answer: B
B. Solicitation
C. Quantification
D. Response Development
395
The work that must be done in order

to deliver a product with the specified
features and functions is:
A. Project scope Answer: A
B. Project verification
C. Project control
D. Product scope
With triangular distribution, the low,

likely and high values are 15, 20 and
40, respectively. The mean is _____.
A. 20.0 Answer: C
B. 22.5
C. 25.0
D. 27.5
The scope management provides:

A. A basis for future decisions about
the project.
B. A baseline to accomplish
Answer: D
verification measures.
C. A baseline to evaluate potential
scope changes.
D. All of the above.
. Project Procurement Management

includes:
A. Procurement planning
Answer: D
B. Solicitation planning
C. Solicitation
D. All of the above
A regulation is a document that lays

down provisions with which
compliance is mandatory. Answer: A
A. True
B. False
396
Lessons learned are most often

based upon project historical
records.
Lessons learned can be used to:
A. See what mistakes others have
made Answer: D
B. See how others have solved
problems
C. "Predict trends, highlight problems
and identify alternatives"
D. All of the above
The major project scope

management processes include:
A. Change order control
Answer: B
B. Initiation
C. Program evaluation
D. Scope statement
A graphic display of resource usage

hours is:
A. Organizational chart
Answer: D
B. Responsibility matrix
C. WBS
D. Histogram
Which is an input to resource

planning?
A. Historical information
Answer: A
B. Cost baseline
C. Cost management plan
D. Chart of accounts
Which tools or techniques are not Answer: C

used in activity sequencing?
A. Precedence diagramming method
(PDM)
B. Arrow diagramming method
397
(ADM)
C. Expert judgment
D. Network templates
Name the ethical code you'll be

required to adhere to as a PMP.
A. Project Management Policy of
Ethics
B. Project Management Professional
Answer: D
Standards
C. Project Management Code of
Professional Ethics & Standards
D. Project Management Professional
Code of Professional Conduct
_______________ ensures that

project objectives are met by
monitoring
and measuring progress and taking
corrective action when necessary. Answer: B
A. Project controls
B. Controlling process
C. Control logs
D. Project chart
You have a choice of accepting a Answer: D

fixed price contract for $115,000 with
a
liquidated damages clause or
$100,000 without the clause. There is
a 60%
chance your cost will be $90,000 and
a 40% chance your cost will be
$80,000. There is a 98% chance of
meeting your schedule but the
penalty
if missed is $50,000. Which is the
best contract choice and how much
398
profit would you make?

A. Contract without the clause; profit
is $14,000
B. Contract without the clause; profit
is $27,980
C. Contract with the clause; profit is
$14,000
D. None of the above
An example of a project is:

A. Billing customers
B. Managing an organization Answer: C
C. Constructing a building or facility
D. Providing technical support
Inputs to Team Development include

all but
A. Project staff
Answer: B
B. Reward and recognition systems
C. Performance reports
D. Project plan
The optimal organization structure for

the project manager is:
A. Functional
Answer: D
B. Weak matrix
C. Projectized
D. Dedicated project team
Precedence diagramming method

(PDM) uses which of the following
dependencies
A. Finishtostart Answer: A
B. Starttostart
C. Finishtofinish
D. Starttofinish
Which is not a tool or technique for Answer: C

399
Source Selection?
A. Contract negotiation
B. Weighting system
C. Payment system
D. Screening system
What is not among the tools and

techniques of Organizational
Planning?
A. Staffing management plan Answer: A
B. Templates
C. Human resource practices
D. Organizational theory
____________ formalizes the

acceptance of the project or phase
and
bringing it to an orderly end.
Answer: B
A. Punch list
B. Closing process
C. Project completion checklist
D. Stakeholder buyoff
Cost control is concerned with:

A. Managing changes when they
occur
Answer: A
B. Resource rates
C. Chart of accounts
D. Organizational policies
Resource leveling allocates scarce

resources to critical path activities
first. Answer: A
A. True
B. False
The closing process scope includes: Answer: A

A. Contract closeout
400
B. Final reporting
C. Punch list
D. Exit interview
An input to the scope planning

process is:
A. Product description
Answer: A
B. Project schedule
C. Strategic plan
D. Historical information
Scope planning is:

A. Developing a plan from major
stakeholders
B. Developing a written scope
statement as the basis for future
Answer: B
project
decisions
C. Formalizing acceptance of the
project scope
D. Planning project milestones
Activity definition inputs include all

except:
Answer: B
B. Product description
C. Constraints
D. Assumptions
When the project team directs staff

assignments, what is not considered
in
the selection of a staff?
Answer: B
A. Previous experience
B. Staff age
C. Availability
D. Personal interest
401
. _____________ involves estimating

the cost of individual work items:
A. Computerized
Answer: B
B. Bottom up estimating
D. Square foot
The most rapid cost estimating

technique is:
A. Square foot estimating
Answer: C
B. Template estimating
C. Computerized estimating
D. Analogous estimating
_____________ is another term for

top down estimating.
Answer: A
In which of the following scope

management processes is the scope
management plan prepared?
A. Initiation Answer: B
B. Scope planning
C. Scope Definition
D. Scope verification
You have been appointed manager of ANS: D

a project to convert multiple electronic
mail systems at a major financial
institution to a single platform. Your
company's approach was not the
client's first choice, and your firm was
able to be the lowest cost alternative
by using funds provided to your
company for a different purpose. After
402
the project is underway, the client

specifies a new approach that has
never been used before. When the
project is approaching the originally-
scheduled end date, it becomes clear
that the technological approach will
have to be significantly altered.
Although the client has been kept
apprised of developments throughout
the project through regular status
reports, and the project plan has been
followed, the client demands that the
project be continued without any
increase in cost until all of the client's
requirements are met. Your firm feels
that it has no choice but to comply
with the client's demands, although
this will result in a substantial loss on
the project. What was the MO
A. Better identification of risks and
development of risk mitigation
strategies
B. Clearer scope statement
C. Enhanced communications plan
D. Formal client acceptance of the
project plan
All of following should be done by the

project manager during project control
EXCEPT?
A. Determine that a change has
occurred ANS: C
B. Ensure that a change is beneficial
C. Make sure all changes are
approved by management
D. Manage changes as they occur
A software development project has ANS: B

403
been suffering through many major

project changes. Because of this, the
project manager has not been able to
do much but complete change control
forms. Which statement BEST
describes the other activities the
project manager should be doing?
A. Determine that changes have been
made and whether the changes are
beneficial, and list all of them in the
scope management plan
B. Determine that a change is
beneficial, notify stakeholders
affected by changes, and determine if
the change is needed
C. List all changes in the project
charter, notify stakeholders affected
by changes, and ensure the team
signs off on all changes
D. Notify all stakeholders affected by
the change, list all the changes in the
scope management plan, and
determine that a change has
occurred
Your new project to outsource work

has been going badly. The project
deliverables have changed three
times, the functional managers keep
removing people from the team, and
the project baseline schedule has
been adjusted four times in the first ANS: C
week. This is MOST likely due to a
lack of:
A. a stakeholder management plan.
B. a signed charter.
C. clear management direction.
D. a scope management plan.
404
A project manager has finished the

project. He knows that all the scope
has been completed and is within
cost and time objectives set by the
sponsor. The sponsor, however, says
that the project is a failure, because
the original schedule was for 27
weeks and the project was completed
in 33 weeks. If the project baseline ANS: D
was 33 weeks, the project is a
success because:
A. it only had six weeks of changes.
B. there were so few changes.
C. there was good communication
control.
D. it was completed within the
baseline.
A work authorization system can be

used to:
A. control who does each task.
B. control who does each task. ANS: B
C. control when each task is done.
D. control who does each task and
when it is done.
Having to constantly push the team to

perform is an example of a LACK of:
A. project continuity.
ANS: B
B. team buy-in.
C. management support.
D. team accord.
An input to project plan execution ANS: D

includes the:
A. cost plan.
B. risk plan.
C. schedule.
405
D. project plan.
A team member notifies you she has

added extra functionality to the
project. She tells you there was no
impact on the cost or schedule. What
should be done as a result of this
change?
A. Implement change control
ANS: B
processes to track the change
B. Understand what functionality was
added, to determine course of action
C. Notify the functional manager that
scope changes are not approved
D. Make sure marketing is aware of
the change
You have never managed a project

before and are asked to plan a new
project. It would be BEST in this
situation to rely on _______ during
planning to improve your chance of
ANS: C
success?
A. your management skills
B. your previous training
C. historical records
D. responsibility charts
What should a project manager do ANS: D

FIRST if a team member has added
functionality to a product in the project
without impacting time, cost, and
schedule?
A. Ask the team member how they
determined the functionality of this
addition
B. Ask the finance department to
assess the value of the improvement
406
C. Ask the customer to review this

and to submit a change request
D. Ask the team member how they
know there is no time, cost, or
schedule impact
A project change control system

should be created during:
A. initiation.
ANS: B
B. planning.
C. execution.
D. closure.
A project is plagued by changes to

the project charter. Who has the
primary responsibility to decide if
these changes are necessary?
ANS: C
A. Project manager
B. Project team
C. Project sponsor
D. Stakeholder
The customer wants to make a

change to the project scope of work.
The BEST thing for the project
manager to evaluate is the:
A. effect of the change on the team
morale.
ANS: C
B. effect of the change on the project
scope.
C. effect of the change on the project
schedule, cost, risk, and quality.
D. effect of the change on the project
timeline.
The person in control of the project ANS: A

during project planning should be the:
A. project manager.
407
B. team member.
C. functional manager.
D. sponsor.
Your company just won a major new

project. It will begin in three months
and is valued at US $2,000,000. You
are the project manager for an
existing project. What is the FIRST
thing you should do once you hear of
the new project? ANS: D
A. Ask management how the new
project will use resources
B. Resource level your project
C. Resource level your project
D. Ask management how the new
project will affect your project
Which of the following BEST

describes the project manager's role
during project planning?
A. Creating a Gantt chart and getting
management to approve it
B. Coordinate the creation of a
ANS: B
document that can be used to guide
the project
C. Making a list of tasks the team
members are required to perform
D. Following the plan set by
management
Which of the following BEST ANS: C

describes a project plan?
A. A printout from project
management software
B. A Gantt chart
C. Risk, staff, change control, budget,
and other plans
408
D. The project scope of work
At a critical milestone in a
development project, it is determined
that implementation is two months
behind schedule. The project
manager is also concerned about
conformance to requirements in the
design of the new billing system. It is
suggested that an audit be performed
to verify conformance of the items
included in the billing system. The
ANS: B
proposed audit will require an
additional one week delay and is:
A. a luxury to be avoided at this
stage.
B. a legitimate application of
configuration management.
C. an example of benefit/cost
analysis.
D. an example of performance
measurement.
Which of the following will help the

project manager verify assumptions
and assess alternatives?
A. Organizational policies ANS: C
B. Project plan
C. Historical information
D. Corrective action
A project manager has made a ANS: B

change to the project. What should
she do NEXT?
A. Assign resources
B. Revise the project plan
C. Evaluate impact
D. Request change control board
409
involvement
Your project team identified six

related projects with major
dependencies on your deliverables.
Some of these projects have a very
similar scope and may overlap with
your deliverables. In light of this,
ANS: C
which of the following should you be
MOST concerned about?
A. Scope change control
B. Scope verification
C. Risk response planning
D. Communications planning
What describes the process of

creating a coherent, consistent
document that can be used to guide
both project execution and control?
ANS: B
A. Risk management
B. Project plan development
C. Project plan execution
D. Project initiation
All of the following are needed to

develop a project estimate EXCEPT?
ANS: D
B. Network diagram
C. Risks
D. Change control procedure
Which of the following is the BEST ANS: B

method to control changes on the
project?
A. Look for sources of changes
B. Make the changes quickly when
they occur
C. Prevent changes from being made
410
D. Direct all changes to the change

control board
During the course of your project, you

notice that most of the changes
occurring on the project come from
the research department. What
should the project manager do?
A. Assign a team member to work
solely with the research department
B. Change your communication plan, ANS: D
so only you are assigned to interact
with the research department
C. Ask the research department to
assign one person to be your liaison
D. Talk to the research department to
understand the reasons for the
changes
A stakeholder wants to make a

change to the work breakdown
structure that does not affect the time
or cost of the project. What is the
BEST thing to do?
A. Tell the stakeholder that this
ANS: D
change cannot be made without
revising the project plan
B. Make the change
C. Meet with management
D. Look for other impacts to the
project
You are assigned to be the project ANS: D

manager in the middle of the project.
The project is within tolerances for the
baseline, but the customer is not
happy with the performance of the
project. What is the FIRST thing you
411
should do?
A. Discuss it with the project team
B. Recalculate baselines
C. Renegotiate the contract
D. Meet with the customer
The customer wants to expand the

project scope after the performance
measurement baseline has been
established. The customer will need
to follow which procedures? ANS: B
A. Scope control
B. Configuration management
C. Time management
D. Cost control
Management assigns you to be the

project manager of a project that
crosses functional lines and is
designed to operate at 6-sigma
levels. The sponsor has given you
cost and schedule requirements.
Which of the following would NOT be ANS: A
an appropriate action on your part?
A. Accepting the requirements
B. Evaluating the project risks
C. Creating a detailed estimate
D. Working with the team to come up
with a project plan
When should a project baseline be

changed?
A. When a major delay occurs
B. When an official change is made ANS: B
C. When a cost increase occurs
D. Changes should never be made in
the baseline.
412
During the execution of a project,

many changes are made to the
project. What should the project
manager do now?
A. Wait until all changes are known,
print out a new schedule, and revise
the baseline ANS: B
B. Make changes as needed, but
maintain a schedule baseline
C. Make only the changes approved
by management
D. Talk to management before any
changes are made
During the creation of lessons learned

for a project, the team determines
that the project would have been
better if they had a change control
board. A change control board helps
ANS: B
to:
A. create the change proposal.
B. approve or reject the change.
C. create procedures.
D. formulate the change.
What is a project management

information system?
A. Computerized status tracking
system
B. Manual status tracking system
ANS: D
C. Method to determine and archive
how the project is doing
D. Method to gather, integrate, and
disseminate what and how the project
is doing
When is MOST of a project's budget ANS: B

is expended?
413
A. Project planning
B. Project execution
C. Project control
D. Project closing
The project manager's role during

execution of the project can BEST be
described as a(n):
A. director. ANS: B
B. integrator.
C. coordinator.
D. leader.
A project team member tells you that

she went to her project manager with
a good idea for a useful change to the
project. Instead of giving her approval
to make the change, the project
manager asked her to write a report
describing the benefits of the change.
What is the MOST appropriate advice
for the situation?
A. The project manager is being
unreasonable and should do that kind
of work herself.
ANS: C
B. Remind the project manager that
the cost benefit analysis was done
during project planning.
C. A project manager must be able to
weight the benefits of the change
versus the costs and compare them
to other possible changes. The team
member should do what was asked.
D. The team member should do what
was asked because this sort of
information must be given to the
project sponsor to make the change.
414
The need for ____ is one of the major

driving forces for communication in a
project.
A. Optimization ANS: C
B. Integrity
C. Integration
D. Differentiation
What is used to facilitate

communication among
stakeholders, to document
alternatives considered, and to
define the content of key
ANS: B
management reviews?
A. Project risk response plan
B. Project plan
C. Integrated change control plan
D. Earned value management plan
The previous project manager for your

project managed it without much
project organization. There is a lack of
management control and no clearly
defined project deliverables. Which of
the following would be the BEST
choice for getting your project better
organized?
ANS: A
A. Adopt a life-cycle approach to the
project
B. Develop lessons learned for each
phase
C. Develop specific work plans for
each phase of the project
D. Develop a description of the
product of the project
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describes the major constraints on a
project?
A. Scope of work, number of
resources, cost ANS: D
B. Scope of work, cost, and time
C. Customer satisfaction, quality, cost,
scope of work, and time
D. Time, cost, and number of changes
Which of the following is an overall

project change control output?
A. Project plan updates
ANS: A
B. Risk management plan
C. Project plan
D. Change requests
You have been assigned to manage ANS: A

the development of an organization's
first website. The site will be highly
complex and interactive, and neither
your project team nor the client has
much experience with website
development. The timeline is
extremely aggressive. Any delay will
be costly for both your firm and the
client. You have an executive sponsor
and have achieved agreement and
sign-off on both the project charter
and the project plan. Client personnel
have been kept fully informed of the
project's progress through status
reports and regular meetings. The
project is on schedule, within the
budget, and a final perfunctory review
has been scheduled. Suddenly, you
hear that the entire effort may be
cancelled, because the product
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developed is totally unacceptable.

What is the MOST likely cause of this
situation?
A. A key stakeholder was not
adequately involved in the project.
B. The project charter and project plan
were not thoroughly explained or
adequately reviewed by the client.
C. Communication arrangements
were inadequate and did not provide
the required information to interested
parties.
D. The executive sponsor failed to
provide adequate support for the
project.
You are taking over a project during

the planning phase and discover that
six individuals have signed the project
charter. Which of the following should
MOST concern you?
A. The charter was created during ANS: B
planning.
B. Spending more time on
configuration management
C. Getting a single project sponsor
D. Determining the reporting structure
The primary customer of a project has ANS: B

requested an application change
during user testing. As project
manager, how should you address this
issue?
A. Develop a risk mitigation plan
B. Through a formal change request
C. Inform the project sponsor of
changes to scope, cost, and schedule
D. Ensure that scope change
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complies with all relevant contractual

provisions
You are given a new project to

manage and a brief scope of work.
Your manager tells you that there is no
required completion date for the
project. The BEST thing to do is to:
A. ask for better definition of the scope
of work before accepting the project.
ANS: C
B. accomplish the project as time
allows.
C. plan the project as you would a
normal project, but build in schedule
flexibility.
D. make a list of tasks that need to be
done.
After a large amount of effort, the

project team has finally determined
the specifications for a major scope
change to the project. In light of this,
what should the project manager do
FIRST?
ANS: D
A. Look for other changes
B. Notify the stakeholders about the
new scope
C. Gain sign off on this change
D. Calculate the risks associated with
this change
Company procedures require the ANS: A

creation of a lessons learned. For
which of the following is a lessons
learned used?
A. Historical records for future projects
B. Planning record for the current
project
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C. Informing the team about what the

project manager has done
D. Informing the team about the
project plan
The project is not going well and many

changes are being made. Which of
the following should you do FIRST to
gain control of the project?
A. Review the scope of work with the
ANS: A
stakeholders
B. Create a new change form
C. Remind everyone of the change
procedures
D. Ask management for help
Which of the following describes the

BEST use of historical records?
A. Estimating and life-cycle costing
B. Risk management, estimating, and
creating lessons learned ANS: D
C. Project planning, estimating, and
creating a status report
D. Estimating, risk management, and
project planning
The role of the project manager

relating to integration is MOST
appropriately described as:
A. ensuring that the various project
elements are properly coordinated.
B. ensuring that all members work
ANS: A
together.
C. ensuring that the stakeholders' role
is integrated with the rest of the team.
D. ensuring that management's role is
integrated into the everyday workings
of the project.
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The sponsor of the project you are

managing has asked you to require
that each piece of the project scope
be planned, estimated, and
scheduled. The sponsor also wants to
authorize each piece of the project
after the documentation is assembled.
What is the MOST appropriate
response to these requests?
A. Politely advise the sponsor to
ANS: D
forego the authorization of work
B. Provide the sponsor with a
schedule of when the components will
be ready for their authorization
C. Ask the sponsor to authorize each
piece before it is completed
D. Tell the sponsor that the chance for
authorization will come after the
pieces of the project plan are
compiled
The project charter for a project was

approved for planning, and you have
just been assigned as project
manager. Realizing that planning is an
ongoing effort throughout the project
life-cycle, which core processes are
you MOST likely to combine?
ANS: A
A. Scope definition and activity
definition
B. Activity duration estimating and
schedule development
C. Resource planning and cost
estimating
D. Cost estimating and cost budgeting
Closure includes all the of the ANS: A

following EXCEPT:
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A. determining performance
measures.
B. appraisal reviews of team
members.
C. documenting the degree to which
each project phase was properly
closed after its completion.
D. documenting the final project
scope.
The networking vendor has contacted

the project manager to inform her that
the recent earthquake will impact the
delivery of critical components. The
project team must meet to determine
the impact to the overall project. It is
determined that staffing will not be
affected, but that changes will need to
be made in the areas of risk and cost ANS: D
management. It is too soon to tell if
quality baselines will be affected by
this schedule change. What is the
project team involved in here?
A. Configuration management
B. Work authorization analysis
C. Status review meeting
D. Integrated change control
The Java development of a project is

outsourced to India. The project
schedule is starting to slip. What is the
LEAST likely cause of the slippage?
ANS: A
A. Lack of competent programmers
B. Cultural influences
C. Internationalization
D. Communication
A team member notifies you that she ANS: A

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is about to add extra functionality to

the project. She states there was no
impact on the cost or schedule. What
is the initial action to perform by the
project manager?
A. Understand what functionality is
proposed, and if she is gold plating,
halt her progress
B. Implement change control
processes to track the change
C. Inform the customer of the change
to the scope
D. Notify the functional manager that
scope changes are not approved
All of the following are part of a project

plan EXCEPT?
A. project charter.
ANS: D
B. project schedule.
C. stakeholder list.
D. lessons learned.
You have accepted a position at a ANS: D

company where you will manage a
group of projects in a coordinated way.
This organization specifically hired
you to help it develop a more
structured approach to project
management. What should you do
FIRST?
A. Study the history of the
organization
B. Study the organization's strategic
plan
C. Meet with key stakeholders to
better understand the organization
and projects
D. Focus on communications with
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your boss and other senior managers
All of the following are part of an

effective change control system
EXCEPT?
A. Procedures ANS: D
B. Standards for reports
C. Meetings
D. Lessons learned
All of the following is true for a project

baseline EXCEPT?
A. It is the original approved plan.
B. It includes approved scope
ANS: D
changes.
C. It is useful in detecting project
variances.
D. It is useful in preparing the WBS.
You take over a project that is in a lot

of trouble. There are apparently
problems with the team dynamics,
scope, sponsors, and timeline. The
project has a CPI of .75 and SPI of
1.2. The FIRST step you should take
ANS: B
is to:
A. meet with the project sponsors.
B. review all the project deliverables.
C. meet with the team.
D. meet with each team member
individually.
You are in the middle of executing a ANS: C

major modification to an existing
product when you learn that the
resources promised at the beginning
of the project are not available. The
BEST thing to do is to:
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A. show how the resources were

originally promised to your project and
request that they be moved back to
your project.
B. re-plan the project without the
resources.
C. explain what will happen if the
resources are not made available.
D. crash the project.
A project manager is following her

company's internal project procedures
to finish a project. These procedures
call for the completion of lessons
learned but do not describe who
creates it. Who is involved in the ANS: D
creation of lessons learned?
A. Project manager
B. Team
C. Management
D. Stakeholders
What's the BEST way to describe

configuration management?
A. A rigorous scope change control
system
B. The primary use of historical ANS: A
records
C. Another name for a completed work
authorization system
D. Created during scope verification
If a project manager is concerned with ANS: C

gathering, integrating, and
disseminating the outputs of all project
management processes, she should
concentrate on creating a better:
A. WBS.
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B. communication plan.
C. project management information
system.
D. scope management plan.
As part of integrated change control a

project manager wants to involve the
stakeholders. Which of the following
would be the BEST way accomplish
this?
A. Have the stakeholders periodically
review the list of project requirements ANS: A
B. Invite the stakeholders attend
project status meetings
C. Send the status report to the
stakeholders
D. Constantly update the stakeholders
on the status of all project changes
When is integration performed?

A. Project planning
B. Project execution
ANS: C
C. At key interface points
D. At the end of each project
management phase
Who provides the KEY support role in

creating project plans?
A. Senior manager
ANS: D
B. Functional managers
C. Project manager
D. Project team
A change control system should be ANS: C

created:
A. as needed on the project.
B. by management.
C. as a formal documented procedure.
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D. by the team.
During a project, a stakeholder wants

to make a change that will affect the
project deliverables. Who needs to
approve the change?
ANS: B
A. Project manager
B. Management
C. Functional manager
D. Project team
Which of the following should be

determined before project plan
development?
A. Project plan updates ANS: D
B. Stakeholder skills and knowledge
C. Work authorization system
D. Constraints and assumptions
A project manager learned that

corrective action was taken by a team
member and was not documented.
What should the project manager do
NEXT?
A. Report the violation to the
ANS: C
functional manager
B. Clarify the reasoning behind the
team member's action
C. Ask if the action should be
documented
D. Find out who caused the problem
Which of the following BEST ANS: C

describes the project manager's role
relating to changes?
A. The project manager's job is to
serve the customer and do what the
customer wants.
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B. Monitor and track changes to

ensure they benefit the project
C. Influence the factors that affect
change
D. Deny change requests whenever
possible
The client demands changes to the

product specification that will add two
weeks to the critical path. The project
manager should:
A. crash the project to recover the two
weeks.
ANS: D
B. fast track the project to recover the
two weeks.
C. consult management before
proceeding.
D. advise the client of the impact of
the change.
There have been numerous changes

on your project. All approved changes
should be reflected in the:
A. performance measurement ANS: D
baseline.
B. change management plan.
C. quality assurance plan.
The project manager on a large ANS: A

software installation project is working
with her team on a critical set of tasks.
They are working late on Saturday
night. Circumstances create the
situation wherein the project manager
must decide to change the schedule
that will push the end date of the
project out two weeks. What BEST
action should the project manager
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take next as a result of her decision?

A. he should immediately document
and capture the changes and present
them to the change control board the
next time that board is available for
contact.
B. She should look for free float to
bring the project back into schedule.
C. She should implement
configuration management in order to
obtain senior management approval
and then make the change.
D. She should review her detailed risk
assessment development process to
ensure that other unidentified risks are
included and a plan for mitigation is
created.
When it comes to changes, the project

manager's attention is BEST spent on:
A. making changes.
B. racking and recording changes as ANS: D
they happen.
C. informing management of changes.
D. preventing unnecessary changes.
What do project planning documents

help to establish?
A. Project charter
B. Framework for performance ANS: B
measurement
C. Project budget
D. Personnel pay scale
You are assigned as a project ANS: A

manager to lead a new quality
improvement project. Management is
asking for a plan. Which of the
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following should you create FIRST?

A. Scope statement
B. Quality plan
C. Schedule
D. Project plan
While the project is being completed,

management requests a change.
What is the FIRST thing the project
manager should do?
A. Comply with the request if possible
ANS: B
B. Obtain a complete understanding of
the scope of the change
C. Tell the customer that a change will
be coming
D. Ask the team to accept the change
You are a project manager who was

just assigned to take over a project
from another project manager who is
leaving the company. The old project
manager tells you that the project is
on schedule only because he has had
to constantly push the team to
ANS: C
perform. What is the FIRST thing you
should do as the new project
manager?
A. Check risk status
B. Check cost performance
C. Determine a management strategy
D. Tell the team your objectives
When should the project baseline be ANS: D

changed?
A. When should the project baseline
be changed?
B. Only for changes that have been
approved by the change control board
429
C. At each project team meeting

D. At each project team meeting
The carpeting subcontractor has,

without prior approval, installed carpet
that is a slightly different pattern from
the pattern selected for the project.
The difference in cost per square yard
saves approximately US $10,000.
Upon learning of the change, the
BEST course of action for the project
manager is to:
ANS: D
A. demand that the original carpeting
be installed.
B. meet with the customer to explain
what happened and celebrate the US
$10,000 windfall.
C. document the change in the
change control plan.
D. determine the overall impact on the
project.
You have taken over a project from ANS: C

another manager who left the firm.
This is a functional organization and
the different units are often rather
hostile to each other. The project is a
large one involving activities that the
organization has never done before.
You find that the project has what
appears to be adequate
documentation, including an agreed-to
project charter, project plan, WBS, etc.
The project is on schedule and within
budget. However, the atmosphere in
meetings with the project members
often seems tense, and offhand
comments made by participants seem
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to indicate a high level of

dissatisfaction with the project. You
review all of the major project
documents with the key stakeholders
and get agreement they are still
accurate, but this does not seem to
solve the problem. What is the MOST
likely explanation of this situation?
A. There are personality conflicts
among the project team members that
you need to uncover and resolve.
B. The project does not have an
effective executive sponsor and thus
is not viewed as a high priority.
C. Stakeholders have very different
expectations about what the project is
supposed to accomplish.
D. The organizational structure and
dynamics prevent people from
working together effectively.
You take over a project that is in a lot

of trouble. There are apparently
problems with the team dynamics,
scope, sponsors, and timeline. The
project has a CPI of .75 and SPI of
1.2. The FIRST step you should take
ANS: B
is to:
A. meet with the project sponsors.
B. review all the project deliverables.
C. meet with the team.
D. meet with each team member
individually.
The project manager's role during ANS: B

execution of the project can BEST be
described as a(n):
A. director.
431
B. integrator.
C. coordinator.
D. leader.
You are taking over a project during

the planning phase and discover that
six individuals have signed the project
charter. Which of the following should
MOST concern you?
A. The charter was created during ANS: B
planning.
B. Spending more time on
configuration management
C. Getting a single project sponsor
D. Determining the reporting structure
The project manager has just received

a change from the customer that does
not affect project time and is easy to
complete. What should the project
manager do FIRST?
A. Make the change happen as soon
ANS: D
as possible
B. Contact the project sponsor for
permission
C. Go to the change control board
D. Evaluate the other components of
the triple constraint
A project manager receives a change ANS: A

request from the customer. The
change requires adding a new
filtration system to the project in place
of a cleaner bag. When the project
manager evaluates the change, it is
MOST important that he/she consider
the impact to the:
A. triple constraint.
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B. communication plan.
C. sponsor.
D. subsequent tasks.
A project manager has just been

assigned to a project that has been in
progress for two months. A team
member has requested more time on
a task he is working on. The extra time
needed will not delay the project, and
the customer has emphasized the
ANS: D
importance of completing the project
on schedule. Who is responsible for
approving this request?
A. Senior management
B. Functional manager
C. Project manager
D. The customer
During the execution of a project, the

project manager determines that a
change is needed to material
purchased for the project. The project
manager calls a team meeting to plan
how to make the change. This action
ANS: B
is an example of:
A. management by objectives.
B. lack of a change control system.
C. good team relations.
D. lack of a clear work breakdown
structure.
A project manager is appointed to ANS: D

head a highly technical project in an
area with which this person has
limited familiarity. The project manager
delegates schedule development, cost
estimating, selection of tasks, and
433
assignments to work activities to

various project team members, and
basically serves as an occasional
referee and coordinator of activities.
The results of this approach are likely
to be:
A. a team functioning throughout the
project at a very high level and
demonstrating creativity and
commitment.
B. a team that initially experiences
some amounts of confusion, but that
after a period of time becomes a
cohesive and effective unit.
C. a team that is not highly productive,
but that stays together because of the
work environment created by the
project manager.
D. a team that is characterized by
poor performance, low morale, high
levels of conflict, and high turnover.
A project has just begun when one of

the stakeholders asks the project
manager about making a change to
the format of the deliverable for task Y.
She wants to know how to go about
submitting the change for review. The ANS: D
project manager should direct her to:
A. the change control board.
B. the communication plan.
C. the sponsor.
D. the change control plan.
A project has just begun when one of ANS: D

the stakeholders asks the project
manager about making a change to
the format of the deliverable for task Y.
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She wants to know how to go about

submitting the change for review. The
project manager should direct her to:
A. the change control board.
B. the communication plan.
C. the sponsor.
D. the change control plan.
Management assigns you to be the

project manager of a project that
crosses functional lines and is
designed to operate at 6-sigma levels.
The sponsor has given you cost and
schedule requirements. Which of the
following would NOT be an ANS: A
appropriate action on your part?
A. Accepting the requirements
B. Evaluating the project risks
C. Creating a detailed estimate
D. Working with the team to come up
with a project plan

the development of an organization's
first website. The site will be highly
complex and interactive, and neither
your project team nor the client has
much experience with website
development. The timeline is
extremely aggressive. Any delay will
be costly for both your firm and the
client. You have an executive sponsor
and have achieved agreement and
sign-off on both the project charter
and the project plan. Client personnel
have been kept fully informed of the
project's progress through status
reports and regular meetings. The
435
project is on schedule, within the

budget, and a final perfunctory review
has been scheduled. Suddenly, you
hear that the entire effort may be
cancelled, because the product
developed is totally unacceptable.
What is the MOST likely cause of this
situation?
A. A key stakeholder was not
adequately involved in the project.
B. The project charter and project plan
were not thoroughly explained or
adequately reviewed by the client.
C. Communication arrangements
were inadequate and did not provide
the required information to interested
parties.
D. The executive sponsor failed to
provide adequate support for the
project.
Linear programming is an example of

what type of project selection
criterion?
A. Constrained optimization ANS: A
B. Comparative approach
C. Benefit measurement
D. Impact analysis
The control points in the work

breakdown structure that are used for
assignments to work centers are
referred to as:
ANS: A
A. work packages.
B. subtasks.
C. tasks.
D. integration points.
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Management by objectives of a
project works only if:
A. it is supported by management.
B. the rules are written down.
ANS: A
C. the project does not impact the
objectives.
D. the project includes the objectives
in the charter.
Benefit measurement and constrained

optimization are examples of:
A. benefit cost ratios.
ANS: D
B. variable costs.
C. types of depreciation.
D. project selection methods.
What is the decomposition process

used to develop?
A. Management plan
ANS: C
B. Communication plan
C. Work breakdown structure
D. Earned value
When is the project manager assigned

to a project?
A. After the contract is signed
B. Immediately preceding contract ANS: C
execution
C. During contract initiation
D. During contract planning
Over the last few weeks, the team has ANS: C

made three scope changes to the
activities and tasks on the project. The
project manager must be MOST
careful to:
A. record all the changes.
B. provide documentation on all the
437
changes to the sponsor.

C. make sure the changes are
reflected in the project scope.
D. prevent more changes from
occurring.
Identifying project performance

criteria, defining project strategy, and
determining product description are all
part of WHICH project management
phase? ANS: A
A. Initiation
B. Planning
C. Execution
D. Control
A project manager discovers that two

team members discussed what was
needed to complete an activity on the
project and made many scope
changes. The deliverable is now
completed and the team members are
planning to go onto the next task. In
looking at what was done, the project
manager determines that the work
does NOT meet the requirements of
ANS: B
the project. What is the BEST course
of action for the project manager?
A. Add another task, formatted with
the correct scope, to the project
B. Refuse the submittal of the task
C. Have the team begin the task again
and include the incident in their
performance review
D. Ask the team member's manager to
assign different people to the task
What is the major aspect of scope ANS: B

438
verification?
A. It ensures the project deliverable is
completed on time.
B. It makes sure the project is on track
by ensuring the customer's
acceptance of the deliverable.
C. It shows the deliverable meets
specifications.
D. It provides a chance for differences
of opinion to come to light.
When should scope verification be

done?
A. At the end of the project
ANS: C
B. At the beginning of the project
C. During each phase of the project
D. During planning
Scope decomposition involves

subdividing the major project
deliverables into smaller pieces to:
A. improve accuracy of estimates,
define a baseline for performance,
and to assist responsibility
assignments.
ANS: A
B. provide more tasks to assign
resources.
C. provide the project duration,
provide project control, and assign
control charts.
D. assist in stakeholder assignment to
project tasks.
A new project manager is planning a ANS: D

complex hardware installation project.
The team consists of 13 people who
are experts in their fields. The project
manager does not want to
439
micromanage the project. How far

should he decompose the work?
A. As small as possible because the
work is complex
B. As large as possible because he is
dealing with experts
C. To 1000-hour tasks because he is
dealing with experts
D. To about 80-hour tasks because it
will make the work less complex
All the following come after scope

definition EXCEPT?
A. Activity duration
ANS: D
C. Cost estimating
D. Scope planning
A project manager is managing a fixed

price contract. She thinks that a large
customer requested change might
impact the schedule of the project.
What should she do FIRST?
ANS: D
A. Meet with the stakeholders
B. Meet with the team
C. Renegotiate the remainder of the
contract
D. Follow the change control system
You are the project manager on an ANS: C

information technology project. An
information specialist on your team,
after having lunch with a low ranking
customer representative working with
him on a software project, learns that
a simple alteration in the display
would be a great addition to the
project. You and the project sponsor
440
have already signed off the scope.

The information specialist installs the
change with no negative affect to the
project schedule and at no additional
cost. What management action should
be taken?
A. The information specialist should
be recognized for exceeding customer
expectation without affecting project
cost or schedule.
B. The project manager should add a
task to the project plan with no
associated time.
C. The information specialist should
be told that his behavior was
unacceptable, as it may have
negatively affected the overall project.
D. The project manager should create
a change control form, and have the
customer sign since the change is
already made.
Two people on the same project team

have just found out they are working
on the same scope of work. This is an
example of a lack of:
ANS: A
A. good work breakdown structure.
B. a matrix organization.
C. sponsor direction.
D. status meetings.
A project manager and her team ANS: D

worked together to develop a work
breakdown structure. However, it
seems project team members are
doing work that is not included in the
work breakdown structure. The
purpose of a work breakdown
441
structure is to:
A. guide the cost estimate for a
project, not how the work is done.
B. provide senior management with a
high level view of the project scope.
C. include the work required to create
the products of the project.
D. include the total project scope or all
of the work that must be done to
complete the project.
Your project is approximately 66%

complete and has progressed
according to plan. There are nine
teams working on implementation and
testing activities. You receive
notification that two teams are falling
behind relative to the others. The ANS: B
MOST likely reason for this is:
A. the scope of work has changed.
B. a weak matrix project organization.
C. unidentified risks.
D. low morale due to compensation
issues.
During a walk through of a task, you

discover that a team member is
completing the work differently than
stated in the WBS dictionary. How
should you deal with this?
A. Replace the team member
B. Determine if the alternative way is ANS: D
acceptable to the functional manager
C. Ask the team member if the
changes are necessary
D. Determine if the changes also
change the scope of the work
package
442
A project manager is performing an

audit on a deliverable when she hears
that the team member who did the
work is complaining to everyone that
he is being picked on by having his
task audited. You know this is not true.
What lesson learned could you take to
future projects?
ANS: D
A. Replace the team member
B. Determine if the alternative way is
acceptable to the functional manager
C. Ask the team member if the
changes are necessary
D. Determine if the changes also
change the scope of the work
package
A project manager spends some time

determining his company's objectives
and how the project fits into them. This
is an example of:
A. Tell all the team members that their
deliverables will be audited at the
ANS: B
beginning of the project
B. Set a policy in the scope
management plan
C. Audit less frequently
D. Use a walk-through instead of
audits
The customer wants to expand the ANS: A

project scope after the performance
measurement baseline has been
established. Which document will the
customer need to submit?
A. Change request
B. Statement of work
C. Revised project schedule
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D. Invoice
The preparation of the scope baseline

involves the:
A. functional managers.
ANS: B
B. project team.
C. all the stakeholders.
D. project expediter.
Two months into a design project, the

customer requested a modification to
the product. The change was made
without notifying the project manager.
During the final testing phase, results
were different then what was planned
for. This scenario is an example of
ANS: A
which of the following?
A. Poor use of scope change control
B. Poor adherence to the
communication plan
C. Poor development of the quality
management plan
D. Poor definition of the test plan
The construction phase of a new

software product is near completion.
The next phase is testing and
implementation. The project is two
weeks ahead of schedule. What
should the project manager be MOST
ANS: A
concerned with before moving onto
the final phase?
A. Scope verification
B. Quality control
D. Cost control
Which of the following is not part of ANS: D

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scope planning?
A. Benefit/cost analysis
B. Identify alternatives
C. Product analysis
D. Inspection
A client has asked you to add scope of

work to the project. The project is
under budget and a little ahead of
schedule. What should you do?
A. Approve the change
B. Let the client know the effects of ANS: B
the change on the project
C. Ask approval from the sponsor for
making the change
D. Get approval from the configuration
change board
The project plan is LEAST useful for

which of the following?
A. Guiding project execution
B. Documenting planning assumptions ANS: D
C. Facilitating communication among
stakeholders
D. Developing the project charter
The requirement to complete the

project in three months using only four
resources is an example of:
A. constraints. ANS: A
B. earned value analysis components.
C. benefit cost ratios.
D. law of diminishing returns.
To manage a project effectively, work ANS: C

should be broken into small pieces.
Which of the following does NOT
describe how far to decompose the
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work?
A. Until it has a meaningful conclusion
B. Until it cannot be logically
subdivided further
C. Until it can be done by one person
D. Until it can be realistically estimated
A market demand, a business need,

and/or legal requirements are
examples of:
A. reasons to hire a project manager.
ANS: B
B. reasons projects are authorized.
C. reasons people or businesses
become stakeholders.
D. reasons to sponsor a project.
Which of the following is an important

input to scope verification?
A. Work results
ANS: A
B. Historical information
C. Formal acceptance
D. Change requests
All the following statements about

work breakdown structures are true
EXCEPT that:
A. they are created by the project
manager.
ANS: A
B. they prevent work from slipping
through the crack
C. they provide a basis for estimating
the project.
D. they help to organize the work.
A WBS is BEST described as a tool ANS: D

for tracking:
A. the schedule.
B. resources.
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C. cost.
D. scope.
The work breakdown structure is

created by:
A. the team.
ANS: A
B. the project manager.
C. management.
D. the functional manager.
Which statement about project

deliverables is correct?
A. They are determined after the work
is completely defined.
B. They are described during project
ANS: C
planning and improved over time.
C. They are defined at project onset
with the input of project stakeholders.
D. They are determined by the project
sponsor.
A project manager is in the process of

scope verification of a deliverable with
the customer. What is the MOST
important thing the project manager
should ensure? ANS: C
A. Accuracy
B. Timeliness
C. Acceptance
D. Completeness
A project manager is assigned to a ANS: C

new, high priority project. There are
only five available resources because
other resources are already
committed to projects. The resource's
time available to complete the project
is less than half the time needed, and
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the project manager cannot convince

management to change the end date.
The project manager should:
A. coordinate with team members the
overtime necessary to complete the
work.
B. provide the team with opportunities
to do a great job on the work that can
be accomplished.
C. cut the scope of work by removing
the work that cannot be completed in
the time provided.
D. use more experienced resources to
complete the work faster.
Which of the following is included in a

project charter?
A. Identification of risks
ANS: D
B. Task estimates
C. Detailed resource estimates
D. The business need for the project
The product manager for the product

your project is developing notifies you
that she has decided the product
should be able to be used by an
additional market. You should:
A. immediately notify the project
sponsor that there is a project scope
change.
ANS: C
B. notify the project change control
board that the project scope will have
to change.
C. inform the product manager that
you will review the potential impact to
the project scope.
D. do nothing as this is an example of
progressive elaboration.
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Who issues the project charter?

A. Management
B. Project manager ANS: A
C. Project team
D. Stakeholders
You are managing a project where ANS: A

your team is physically located with
client personnel at a remote location.
There is a high level of interaction
between your team and client
personnel, and client satisfaction is
considered very important. Since the
client is expressing a very high level
of satisfaction with the project's
progress, your management has
indicated no concerns about the
project. However, you are behind
schedule and over budget. In
addition, morale among team
members is low, and several have
talked about quitting. Team members
complain regularly about priority
adjustments and alteration of tasks.
The weekly reports you receive about
activities completed are often difficult
to relate to the WBS and the project
plan. What action should you take to
MOST effectively address these
problems?
A. You should enforce scope change
control.
B. You should identify ways to make
team members' work more satisfying
using the most applicable
motivational theory.
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C. You should identify ways to make

team members' work more satisfying
using the most applicable
motivational theory.
D. You should create a reward and
punishment system to ensure that
project team members complete
tasks within the timeframes outlined
in the project plan.
A project manager is concerned

about the amount of gold plating that
has been occurring on past projects.
All the following would not be of use
in controlling gold plating EXCEPT:
ANS: C
A. a staffing management plan.
B. a project charter.
C. a work breakdown structure
dictionary.
D. a risk management plan.
Which of the following is correct in

regard to scope change control?
A. Scope change control is never
integrated with other control
processes.
B. Controlling cost is the most
ANS: C
effective way of controlling scope.
C. Scope change control must be
integrated with other control
processes.
D. Controlling schedule is the most
effective way of controlling scope.
A functional manager meets with the ANS: B

project manager's boss to discuss a
change to the acceptance criteria for
a major deliverable. After the
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meeting, the boss contacts the

project manager and tells him to
make the change. What is the BEST
thing to do?
A. Make the change as soon as
possible
B. Understand the change
C. Supply management with a
change form and ask management to
complete and return it as soon as
possible
D. Tell the team about the change
Defining the activities, activity

sequencing, and activity duration
estimating are inputs to:
A. project charter creation. ANS: C
B. WBS creation.
C. schedule development.
D. project development.
After the contract has been signed for ANS: C

the upgrade of 8,000 workstations, a
project manager is assigned. The
proposal manager is relatively new
and doesn't have as much related
knowledge as the project manager.
The cost analyst works from home
and his price estimates are based on
the details outlined in the contract.
The project manager thinks there was
a flaw in the logic determining the
number of workstations that can be
upgraded via remote electronic
software distribution. Which of the
following is the BEST thing for the
project manager to do?
A. Determine if the contingency
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budget will cover the additional cost

of more expensive visits
B. Meet with the cost analyst and the
proposal manager to determine how
they can amend the contract to
accurately reflect the work that will
have to be done
C. Meet with the appropriate project
team members to choose the best
solution
D. Meet with the vendor to adjust the
contract for the change
Your project no longer ties into the

company's objectives. What would be
the BEST thing to do?
A. Decrease the cost ANS: B
B. Increase the schedule
C. Change the CPI
D. Change the target opportunity cost

a portion of a larger project that is
supposed to be finished within a two-
week period. You have met with the
leadership of the area to gather
requirements, and you have a project
charter, scope statement, and project
plan that have been approved by
these individuals. You are told to
meet with the actual user of the
results of the project to demonstrate
how the system will work. When you
give the demonstration, it is clear that
the user's requirements are very
different from the ones you were
initially given and to which both you
and the client agreed. What is the
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BEST thing for you to do now?

A. Generate a change request for the
user's requirements
B. Convene another meeting with the
leadership of the area and the user to
generate a revised set of
requirements
C. Attempt to meet as many of the
user's requirements as possible
within the project's established
budget and schedule
D. Complete the work as originally
specified and formulate a new project
to meet the user's requirements
The BEST time to assign a project

manager to a project is during:
A. execution.
ANS: C
B. closure.
C. initiation.
D. planning.
Which of the following includes the

processes required ensuring the
project includes all the work and only
the work required to complete the
project successfully?
ANS: B
A. Cost management
B. Scope management
C. Time management
D. Customer satisfaction
management
During execution a team member ANS: A

comes to the project manager
because he is not sure of what work
he needs to accomplish on the
project. Which of the following
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documents contain detailed

descriptions of work packages?
A. Customer satisfaction
management
B. Scope of work
C. Budget estimates
D. Cost estimates
All of the following are inputs to

scope verification EXCEPT?
ANS: D
B. Project plan
C. Work results
D. Change requests

describes when the baseline can be
changed?
A. Only under emergency conditions
B. The original baseline is always ANS: C
maintained throughout the project.
C. With any approved changes
D. When the project sponsor
determines it is appropriate
A project manager is concentrating

on ensuring that the project includes
all the work required, and only the
work required, to complete the project
successfully. This is: ANS: B
A. time management.
B. scope management.
C. cost management.
D. quality management.
All of the following are part of the ANS: D

project initiation phase EXCEPT?
A. Understand the criteria that will be
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used to evaluate the project manager

B. Create the project charter
C. Develop project-related product
description
D. Identify the full project team
A project manager on a multinational

web site implementation project is at
a party and talks to friends who will
be heavy users of this new web site
when the project is complete and the
site is rolled out. They convey some
annoying aspects with the current
web site. She takes this feedback
back to the project sponsor, and ANS: D
encourages design and scope
changes. Which of the following
BEST describes what the project
manager has done?
A. Scope containment
B. Sponsor management
C. Configuration management
D. Stakeholder management
All of the following are outputs of

scope change control EXCEPT?
A. Change requests
ANS: A
B. Scope changes
D. Lessons learned
A project manager is working on a ANS: B

complex project. What should the
project manager do to make certain
that all of the work in this project is
covered?
A. Create a project plan
B. Create a WBS
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C. Create a risk plan

D. Create an AOA diagram
The project is mostly complete.

However, the customer wants to
make a major change to the scope of
work. The project manager should:
A. meet with the project team to
determine if this change can be
ANS: B
made.
B. ask the customer for a description
of the change.
C. explain that the change cannot be
made at this point in the process.
D. inform management.
The project manager wishes to use

the Delphi technique to obtain expert
opinion on some difficult technical
issues she's facing. What should she
be careful to do?
A. Make sure the experts consulted
ANS: B
are recognized for their input
B. Compare information and work
toward a single opinion
C. Consult the stakeholders
D. Meet together with the experts to
obtain consensus
A project sponsor gives the project

manager a charter and tells him that
he is not sure the charter is complete.
The project charter should include:
ANS: A
A. deliverables and objectives.
B. a detailed scope of work.
C. a detailed schedule.
D. a network diagram.
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The CEO of the company has

assigned a project manager to a
project that the CEO has wanted to
do for a long time. What should the
project manager do?
A. Assist the CEO in putting together
a cost benefit analysis to show the
need for the project
ANS: D
B. Work with the CEO to get buy-in
from the other stakeholders
C. Produce a ranking of all feasible
projects, including the assigned
project, in a weighted scoring of
decision variables
D. Guide the creation of a project
charter
In which of the following is a WBS

created?
A. Scope verification
ANS: C
B. Scope planning
C. Scope definition
D. Initiation
During the execution phase of the ANS: B

project, you realize the
subcontractors are working with
incomplete and different scope
statements. As the project manager,
what should you do FIRST?
A. Check the work completed against
the correct scope statements
B. Review the scope of work with the
stakeholders
C. Document the inconsistencies to
management, calculating the cost of
non-conformance
D. Stop all activities until the scope of
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work is complete
A project is ending one of its phases.

What should be done before moving
on to the next phase?
A. Team meeting ANS: B
B. Scope verification
C. Management meeting
D. Scope management
For which of the following can the

work breakdown structure be used?
A. Communicating to the customer
B. Showing calendar dates for each
task ANS: A
C. Showing the functional managers
for each team member
D. Showing the business need for the
project
Which of the following is a basic rule

or guideline for creating a work
breakdown structure?
A. The first row should describe the
products of the project.
B. Each level of a work breakdown
structure is a smaller segment of the
level above.
ANS: B
C. A work breakdown structure
should be like a to-do list, listing
every task in chronological order that
needs to be done to complete the
project.
D. A work breakdown structure
should be organized by functional
areas.
All of the following are purposes of ANS: B

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the project charter EXCEPT?

A. It establishes the project.
B. It identifies the project team.
C. It gives the project manager
authority.
D. It provides the goals and
objectives of the project.
All of the following are tools for scope

verification EXCEPT?
A. Product reviews
ANS: D
B. Audits
C. Walk through
D. Sensitivity analysis
The process of creating a work

breakdown structure results in:
A. a project schedule.
ANS: B
B. team buy-in.
C. a project completion date.
D. a list of risks.
All the following must be performed in

initiation EXCEPT:
A. identify and document business
needs.
B. create a scope statement. ANS: B
C. define the phases of the project
life-cycle.
D. accumulate and evaluate historical
information.
Of all decisions the executive ANS: C

sponsors must consider during an
end-of-phase review meeting, the
MOST difficult is:
A. authorizing scope change for the
next phase.
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B. authorizing budget increases for

the next phase based on scope
changes.
C. canceling the project.
D. decreasing scope to maintain the
budget.
Which of the following is an output

from scope planning?
A. Scope management plan
ANS: A
B. Constraints
D. Scope changes
A project manager believes that

modifying the project scope may
provide added value for the customer.
What should the project manager do?
A. Change the scope baseline
ANS: B
B. Contact the customer to determine
if the change adds value
C. Call a meeting of the change
control board
D. Change the project's objectives
All of the following are outputs of

scope change control EXCEPT?
A. Scope changes
ANS: D
B. Adjusted baseline
D. Formal acceptance
Which of the following can create the ANS: A

MOST misinterpretation in the
statement of work?
A. Using imprecise language
B. Poor pattern, structure, and
chronological order
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C. Small variation in size of tasks or

detail of work
D. Drawings that show too much
detail
A project manager receives a

deliverable from one of the team
members to provide to the customer.
While looking at the deliverable, the
project manager notices the
document is smaller than what he
expected and does not contain what
he thought it should. The project ANS: D
manager should FIRST:
A. discuss it with the team member.
B. contact the team member's
manager to get that person additional
training.
C. audit the development process.
D. complete product verification.
A team member determines that the

scope of work for her task is no
longer valid. She comes to you for
advice on making the change to the
task scope of work. To which of the
following documents should the
project manager refer to make this ANS: B
change?
A. The project management
information system
B. The scope management plan
C. The cost management plan
D. The work authorization system
. Identifying alternative approaches is ANS: B

part of what step of the scope
management process?
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A. Initiation
B. Scope planning
C. Scope definition
During execution, you find that the

customer has changed the scope of
work even though it was previously
approved. There are no objections to
the cost of the change. What should
you do FIRST?
A. Follow the change process ANS: B
B. Discuss it with the customer and
negotiate new scope
C. Meet with the team and plan
alternatives
D. Evaluate and document the risks
that might result from this change
Which of the following is done during

scope definition?
A. Product analysis
ANS: C
B. Project selection
C. Decomposition
D. Alternative definition
Product verification is different than

scope verification in that product
verification:
A. occurs during the execution phase.
ANS: D
B. verifies that the correct products
have been used.
C. obtains customer sign-off.
D. makes sure all work is completed.
A customer has given you a scope of ANS: A

work for a complex, eight-month
project that has a few unknowns. The
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customer has asked you to just "get it

done" and only wants to see you at
the end of eight months when you
deliver the finished project. Under
these circumstances, which of the
following is the BEST thing to do?
A. Complete the project as
requested, but verify its scope with
the customer occasionally throughout
B. Complete the project within eight
months without contacting the
customer during this time
C. Ask management to check in with
the customer occasionally
D. Complete the project, but
document that the customer did not
want contact
Management has provided you with a ANS: B

project charter, and you are in the
process of creating a scope
statement. You have asked the team
for input to ensure that the scope
statement is complete. However, the
team is struggling with defining the
scope. Which of the following BEST
describes the problem?
A. A WBS was not completed before
the scope statement was begun.
B. The team is working on the scope
statement without the benefit of
product analysis and stakeholder
agreement on what the project will
deliver.
C. The team is in the scope definition
process and needs the scope
statement as an input.
D. The project objectives were not
463
identified before the scope statement

was begun.
our company has just presented its

new five-year strategic plan. You
have received a new product request
from a customer that is in line with
the previous five-year strategic plan,
but it does not meet the objectives of
the new plan. The product description
seems to have a valid business driver
and to be a straightforward
development effort. As project
manager, what is the BEST course of
action? ANS: D
A. Do a cost benefit analysis of the
project and submit it for management
approval
B. Submit the product to
management for review and approval
before proceeding
C. Inform the customer of the change
in corporate direction and ask him/her
to take another look at the project
D. Request a project charter from
management and begin a WBS
A project manager has just been ANS: B

assigned to a new project and has
been given the completed project
scope. The FIRST thing the project
manager must do is:
A. create a project plan using the
WBS.
B. confirm that all the stakeholders
have had input to the scope of work.
C. form a team to create the
procurement plan.
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D. create a network diagram.
Scope verification is normally done in

parallel with:
A. quality control.
ANS: A
B. activity sequencing.
C. quality assurance.
D. time management.
A project manager decides to bring

expected future schedule
performance in line with the project
plan. What is this a definition of?
ANS: A
A. Corrective action
B. Lessons learned
C. Scope verification
D. Scope planning
You are a project manager for a large

consulting firm. Your superior has just
asked for your input on a decision
about which project your company
should pursue. Project A has an
internal rate of return of 12%. Project
B has a predicted Benefit Cost Ratio
(BCR) of 1:3. Project C has an
opportunity cost of US $75,000. ANS: A
Project D has a payback period of six
months. Based on the following,
WHICH project would you
recommend?
A. Project A
B. Project B
C. Project C
D. Project D
The project charter is created during ANS: D

which life-cycle phase?
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A. Execution
B. Planning
C. Closeout
D. Initiation
The company is taking a vote to see

if the contracts department should be
split up and reassigned to projects or
remains intact. A contract
professional might not want this to
occur because they would lose
___________ in a decentralized ANS: D
contracting environment.
A. standardized company project
management practices
B. loyalty to the project
C. a clearly defined career path
D. expertise
You are managing a six month

project and have held bi-weekly
meetings with your project sponsors.
After five-and-a-half months of work,
the project is on schedule and
budget, but the sponsors are not
satisfied with the deliverables. This
situation will delay the project ANS: C
completion by one month. The MOST
important process that could have
prevented this situation is:
A. risk monitoring and control.
B. schedule control.
C. scope planning.
D. scope change control.
Upon delivery, a software system fails ANS: D

to give expected results, but was
formally accepted by the customer.
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describes the activity involved here?
A. Inspection
B. Rework
C. Quality audit
Halfway through the project, the client

considers canceling the remaining
work and the contract. It would be
BEST to look at which of the following
to determine the purpose for the
project?
A. The goals, objectives, and
ANS: A
business case in the charter
B. The WBS dictionary to verify that
the scope is correct
C. The risk management plan to
evaluate alternatives
D. The chart of accounts to determine
the estimate at completion
If a project team is subdividing project

work packages into smaller, more
manageable components, they are:
A. creating a WBS. ANS: B
B. decomposing.
C. network diagramming.
D. activity sequencing.
A market demand, a customer

request, and a technological advance
are examples of:
A. changes to the project. ANS: B
B. reasons to initiate a project.
C. components of a WBS.
D. claims to the project.
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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? ANS: D
A. The scope of work should be
general to allow the seller to make its
own decisions.
B. The scope of work should be
general to allow clarification later.
C. The scope of work should be
detailed to allow clarifications later.
D. The scope of work should be as
detailed as necessary for the type of
project.
A design scope of work contains the:

A. detailed project requirements.
B. functional requirements. ANS: A
C. performance requirements.
D. summary requirements.
What phase is a project in when the

project team has completed all the
work specified in the contract scope
of work and the final deliverable has
been sent to the client? ANS: B
A. Completion
B. Closure
C. End of execution
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Which of the following is a KEY

attribute of scope verification?
A. Improved cost estimates
B. Customer acceptance of project
ANS: B
efforts
C. Improved schedule estimates
D. Improved project management
information system
A person is writing a document

identifying the business need for a
project and is including a description
of the product created by the project.
She provides objectives and goals for
the project in his document. What is
the role of this person on the project?
A. The project manager for the
project ANS: D
B. A member of the project core team
working at the direction of the project
manager
C. The sponsor
D. A manager or executive in the
organization who is higher in the
corporate hierarchy than the project
manager
In order to complete initiation, a

project manager needs the project
charter and:
A. constraints. ANS: A
B. work breakdown structure.
C. scope statement.
D. scope management plan.
After the kickoff meeting, two team ANS: D

members engage in a casual
conversation about the project
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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?
A. The second team member should
send the other team member an e-
mail describing what he discovered.
B. At the next project meeting, the
team member should ask the
mistaken team member to describe
his interpretation so the project
manager can get everyone on the
same page.
C. The project manager should send
out an e-mail to the team restating
the project objectives and
deliverables.
D. At the next project meeting, the
project manager should spend time
reviewing a documented scope
statement with the goal of identifying
this and other false assumptions.
During what phase of the life-cycle is

the project scope statement created?
A. Initiation
ANS: B
B. Planning
C. Execution
D. Control
During project execution, a project ANS: C

team delivers a project deliverable to
the customer. However, the customer
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neither acknowledges the deliverable

nor says if it is acceptable, although
an approval is required. What is the
BEST thing to do?
A. Continue with the project
B. Document the situation
C. Contact management for help
D. Call a meeting of the team
A customer is not happy with a

project deliverable. What is your
BEST course of action?
A. Tell the customer it meets the
scope of work and get the customer's
agreement to proceed
ANS: B
B. Determine why the customer is
unhappy with the deliverable
C. Meet with the team to determine
changes needed
D. Meet with the customer and offer a
substitute project deliverable
Which of the following is done during

scope verification?
A. Verify product correctness
ANS: C
B. Create work breakdown structure
C. Inspection
D. Performance measurement
During a project team meeting, a ANS: B

team member suggests an
enhancement to the scope of work
that is beyond the scope of the
project charter. The project manager
points out that the team needs to
concentrate on completing all the
work and only the work required. This
is an example of:
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A. change management process.

B. scope management.
C. quality analysis.
D. scope decomposition.
A work breakdown structure

numbering system allows project staff
to:
A. systematically estimate costs of
work breakdown structure elements.
ANS: C
B. provide project justification.
C. identify the level at which
individual elements are found.
D. use it in project management
software.
A project manager is trying to

convince management to use project
management and has decided to
start with a charter. Why would the
charter help the project?
A. It describes the details of what
ANS: C
needs to be done.
B. It lists the names of all team
members.
C. It gives the project manager
authority.
D. It describes the project's history.
You have created the project charter ANS: B

but could not get it approved. Your
manager and his boss asked that the
project begin immediately. Which of
the following is the BEST thing to do?
A. Set up an integrated change
control process
B. Push to get the charter signed
C. Perform an impact analysis
472
D. Start work on only the critical path

tasks
Your project team is spending so

much time reviewing potential
changes to a project that you do not
have time to complete project work.
Which of the following is the LEAST
likely reason for this problem?
ANS: C
A. No change control board
B. Not enough of an effort to
determine who are the stakeholders
C. A poor communication
management plan
D. Unclear project charter
Where should a new project manager

look to determine resource
requirements?
A. Resource leveling chart ANS: C
B. Resource Gantt chart
D. Project schedule
Work breakdown structure is an input

to all of the following EXCEPT?
A. Activity definition
ANS: C
B. Risk management planning
C. Quality assurance plan
Which of the following is a chief ANS: B

characteristic of the Delphi
technique?
A. Extrapolation from historical
records
B. Expert opinion
C. Analytical hierarchy process
473
D. Bottom up approach
All the following are needed to create

the WBS EXCEPT?
A. Historical information
ANS: B
B. Project charter
C. Assumptions
D. Scope statement
What information needs to be

collected "when" is part of what
process?
A. Formal reporting
ANS: B
B. Communications management
plan
C. Stakeholder management
D. Earned value
Originally a project had four team

members. Now the scope has
expanded, and there are a total of six
people on the project team. How
many communication channels does
ANS: D
the project have?
A. 6
B. 9
C. 12
D. 15
All of the following are part of

administrative closure EXCEPT?
A. Collection of records
B. Analysis of project success and
ANS: C
effectiveness
C. Coordinating the operation and
maintenance phase of the project
D. Archiving project information
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Your company has just assigned you

to a large multi-year project. You are
given a project specification from
management and told to complete
the scope of work. One of the FIRST
things you should do is:
A. start work on writing the scope of
work. ANS: C
B. create a Gantt chart so you know
your schedule.
C. determine who the stakeholders
are and identify their communications
needs.
D. start assigning project tasks to the
team.
A major stakeholder has requested ANS: B

that the project manager issue
reports on the amount of testing done
throughout the life of the project,
however testing is only a minor
aspect of the quality control plan. It
would be BEST for the project
manager to:
A. issue the report as this is a major

stakeholder and their needs would
have been includes in the
stakeholder management plan.
B. do not issue the report as project
resources should be expended on
communicating information that
contributes to success.
C. request details of the information
the stakeholder needs in the report
and provide that information to those
handling the quality control function
on the project.
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D. have the stakeholder meet with

the project sponsor to get the
sponsor's agreement that project
fund should be expended on this
effort.
The MOST likely result of

communication blockers is that:
A. the project is delayed.
ANS: C
B. trust level is enhanced.
C. conflict occurs.
D. senior management is displeased.
A project manager had a complex

problem to solve and made a
decision about what needed to be
done. A few months later, the problem
resurfaced. Most likely what did the
project manager not do?
ANS: B
A. Proper risk analysis
B. Confirm that the decision solved
the problem
C. Have the project sponsor validate
the decision
D. Use an Ishikawa diagram
Administrative closure includes all the

following EXCEPT:
A. analysis of project success.
B. ensuring that records include final
ANS: C
specifications.
C. creating a project risk
management plan.
D. a collection of project records.
A company is making an effort to ANS: B

improve its project performance and
create historical records of past
476
projects. What is the BEST way to

accomplish this?
A. Creating project plans
B. Creating lessons learned
C. Creating network diagrams
D. Creating status reports
There are four people on the project

team, and the project manager adds
three more. How many channels of
communication are there now?
ANS: C
A. 14
B. 16
C. 21
D. 12
A project team is having difficulty

communicating over long distances.
There are 13 team members from
two countries when five people from
India are added to the project. How
many communication channels are ANS: A
there?
A. 153
B. 180
C. 324
D. 362
If a project manager wants to report

on the actual project results planned,
he would use a:
A. trend report. ANS: D
B. forecasting report.
C. status report.
D. variance report.
You have just been assigned as ANS: B

project manager for a large
477
manufacturing project. This one-year

project is about halfway done. It
involves five different sellers and 20
members of your company on the
project team. You want to quickly
review where the project now stands.
Which of the following reports would
be the MOST helpful in finding such
information?
A. Task status
B. Progress
C. Forecast
D. Communication

describes formal acceptance of a
project?
A. Substantial completion is reached.
B. Customer signoff of the product is ANS: B
documented.
C. Final payment is made.
D. Final deliverables are sent to the
customer.
The first phase of your project has

come to an end. Before beginning the
next phase, you should ensure that:
A. the resources are available for the
next phase.
B. the project's progress is
comparable to its baselines. ANS: C
C. the phase has reached its
objectives and formally accepts its
deliverables.
D. corrective action(s) are taken to
bring project results in line with
project expectations.
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Performance reporting is important

during administrative closure in order
to:
A. show progress made on tasks.
B. communicate the team's success. ANS: B
C. gain approval to start the lessons
learned.
D. in order to prove formal
acceptance has been achieved.
Project A has had poor project

meetings since its inception. There
have been complaints that
information does not get to the right
people, some people are talking too
much during the meeting, and the
right people are not there to resolve
ANS: C
issues. What is MOST likely missing
from this project?
A. A scope management plan
B. A responsibility chart
C. A communications management
plan
D. A resource matrix
If a project manager wants to

examine project results over time to
see if performance is improving, she
would use a:
ANS: A
A. trend report.
C. status report.
D. variance report.
Which of the following is a common ANS: A

problem in administrative closure?
A. Retaining resources to complete
the project
479
B. Completing the quality assurance

plan
C. Obtaining scope verification
D. Completing a project charter
A project manager has a project team

consisting of people from four
countries. The project is very
important to the company and the
project manager is concerned about
its success. The length of the project
schedule is acceptable. What type of ANS: B
communication methods should
he/she use?
A. Informal verbal
B. Formal written
C. Formal verbal
D. Informal written
To a project manager, what is a

disadvantage of progress reports
over watching what is going on in a
project, asking questions, and
assisting team members?
A. Progress reports include
information from all the team ANS: C
B. Progress reports include
information from stakeholders
C. Progress reports generally show
problems after they have occurred
D. Progress reports supply
information about trends
The work breakdown structure can be ANS: D

an effective aid for communication in
which situation(s)?
A. Internal within the project team
B. Internal within the organization
480
C. External with the customer

D. Internal and external to the project
You are having a very difficult time

keeping the project schedule on
track. The project is 13 months long
and requires 220 people to complete.
You have just fixed all the project
problems to your satisfaction, but the
SPI is currently .67, the CPI is 1.26,
there are over 23 tasks on the critical
ANS: D
path, and the project PERT duration
is 26. In creating the monthly status
report, you should report:
A. that the project is doing well.
B. that the project will be late.
C. that the project cost is behind
budget.
D. the issues and options.
Project information has been ANS: C

distributed according to the
communications plan. Some
project deliverables have
been changed. Those
changes were made
according to the change
control plan. One stakeholder
expressed surprise to the
project manager upon being
informed of a previously
published change to a project
deliverable. All stakeholders
received the communication
containing notification of the
change. What should the
481
project manager do?

A. Determine why the
stakeholder did not receive
the information and let him
know when it was published
B. Review the
communications plan to
determine why the
stakeholder did not
understand his responsibility
C. Review the
communications plan and
make revisions, if necessary
D. Address the situation in
the next steering committee
meeting so others do not
miss published changes
All of the following would occur

during this closure of the project
EXCEPT?
A. Creating lessons learned
ANS: D
B. Formal acceptance
C. Reducing resource spending
D. Performing cost benefit
analysis
You are finalizing the monthly ANS: D

project status report due now to
your manager when you discover
that several project team
members are not reporting actual
hours spent on project tasks.
Consequently, this results in
skewed project plan statistics.
What is the MOST appropriate
action to be taken?
A. Discuss the impacts of these
482
actions with team member(s)

B. Report team member actions
to functional manager
C. Continue reporting information
as presented to you
D. Provide accurate and truthful
representations in all project
reports
Formal, written correspondence

with the customer is required
when:
A. defects are detected.
B. a customer requests
additional work not covered ANS: B
under contract.
C. the project has a schedule
slippage that includes changes to
the critical path.
D. a project has cost overruns.
The current update to the

schedule performance report
shows no schedule variance.
Based upon this report, you tell
the client that the project is on
time. However, your team
members know that you just
missed a major milestone, and
ANS: A
the project will not meet its
startup date. This is an indication
of poor:
A. communication management
planning.
B. scope management planning.
C. team trust.
D. schedule planning.
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Inputs to communications
planning include all the following
EXCEPT:
A. communications
requirements.
ANS: D
B. technology available to
transfer information.
C. constraints.
D. description of information to
be distributed.
Which of the following regarding

performance reporting is correct?
A. It is done during planning and
execution.
B. It is done during planning and
ANS: C
control.
C. It is done during control and
closure.
D. It is done during execution
and control.
About midway through the ANS: B

project, the project manager
learns that most members of the
project team do not review the
weekly project updates. What
should the project manager do?
A. Create a signature log so
team members can indicate
when they have read the reports
B. Revise the communications
plan appropriately to meet the
informational needs of the
stakeholders
C. Improve the layout of the
weekly project updates to
encourage reading by team
484
members
D. Go to the team members first-
hand to find out why they are not
reading the reports
In managing project
communications, what should
the project manager keep in
mind?
A. Communication skills are most
important during the execution
phase.
B. The receiver is responsible for ANS: C
making sure communications are
clear.
C. Only the team members need
to be concerned about
communicating with each other.
D. A choice must be made about
how to communicate properly.
What is the LAST thing to do in

project closure?
A. Complete the lessons learned
B. Provide the client with all ANS: D
pertinent documentation
C. Update the archives
D. Release the team
Project coordination is enhanced ANS: C

through progress reporting,
variance reporting, and cross-
team meetings. These are all
forms of:
A. stakeholder management.
B. risk management and
reporting.
C. quality management.
485
D. communications
management.
The level of detail of

performance reports is described
in the:
A. charter.
ANS: B
B. communications plan.
C. monthly requests for
information by management.
D. project's monthly needs.
The first phase of your project

has come to an end. What
should you ensure is done
BEFORE beginning the next
phase?
A. Verify that the resources are
available for the next phase
B. Check the project's progress ANS: C
compared to its baselines
C. Confirm that the phase has
reached its objectives, and
formally accept its deliverables
D. Take corrective action to bring
project results in line with project
expectations
The project is completed and the ANS: C

final deliverable has been sent to
the customer, but the customer
refuses to give final acceptance
on the project. It is MOST
important for the project manager
to:
A. inform management of the
situation.
B. ask the team for assistance.
486
C. document the situation.

D. initiate legal proceedings.
A large, one-year
telecommunications project is
about halfway done when you
take the place of the previous
project manager. The project
involves three different sellers
and a project team of 30 people.
You would like to see the
project's communications
ANS: D
requirements and what
technology is being used to aid in
project communications. Where
will you find this information?
A. Project plan
B. Information distribution plan
C. Gantt chart
D. Communications
management plan
Outputs of administrative closure

include all of the following
EXCEPT:
A. project archives. ANS: D
B. formal acceptance.
C. lessons learned.
D. a risk management plan.
An advisor to a new project ANS: A

manager tells the project
manager to create lessons
learned at the end of a project.
What does a lessons learned
include?
A. Variances and their causes
B. Reports from the customer
487
C. Reports from management

D. All the plans used in the
project
In their pure state, project reports

are a method to:
A. plan communications.
ANS: B
B. distribute information.
C. report performance.
D. manage resources.
The purpose of status meetings

is to:
A. exchange information about
the project.
B. have team members report on ANS: A
what they are doing
C. issue work authorizations.
D. confirm the accuracy of the
costs submitted by the team
The project manager is working ANS: A

to clearly describe the level of
involvement expected from
everyone involved in the project
in order to prevent rework,
conflict and coordination
problems. Which of the following
BEST describes the project
manager's efforts?
A. Integration management,
control, communications
planning
B. Smoothing, control, goodwill,
gold plating
C. Scope verification, quality
control, execution
D. Risk assessment, scheduling,
488
lessons learned, stakeholder

management
A report that is focused on

predicting future project status is
called a:
A. trend report. ANS: B
C. status report.
D. variance report.
It is important to collect project

records at the end of the project
to:
A. document decisions made on
the project.
ANS: B
B. recall what happened on the
project.
C. support cost decisions.
D. support the risks on the
project.
Originally, your project had five

team members. Now the scope
has expanded, and there are a
total of eight people on the
project team. How many more
communication channels have ANS: C
been added?
A. 9
B. 10
C. 18
D. 28
You are a project manager for a ANS: A

US $3,000,000 product
development project. Your
project is well into the execution
489
phase and remains on time, on

budget and on specification. This
morning, your project sponsor
called to express concern about
the project. Based on the
schedule baseline, the project
should be nearing
implementation, but the sponsor
does not know the current status
of the project. You remind the
sponsor that your team produces
a detailed status report weekly
and distributes it via e-mail. The
sponsor indicates that e-mail is
too impersonal and verbal
updates are preferred. This
situation suggests problems with
which of the following project
management processes?
A. Communications planning
B. Information distribution
C. Performance reporting
D. Stakeholder management
All technical work is completed

on the project. Which of the
following remains to be done?
A. Project budget ANS: D
B. Risk management plan
C. Staff management plan
D. Lessons learned
Communication is often ANS: D

enhanced when the sender ___
the receiver?
A. speaks up to
B. uses more physical
movements when talking to
490
C. talks slowly to
D. shows concern for the
perspective of
Two people are arguing about

what needs to be done to
complete a task. If the project
manager wants to know what is
going on, she should pay MOST
attention to:
ANS: C
A. what is said.
B. what is being discussed
according to those arguing.
C. physical mannerisms.
D. the pitch and tone of the
voices.
Communication under a contract

should tend toward:
A. formal written communication.
B. formal verbal communication.
ANS: A
C. informal written
communication.
D. informal verbal
communication.
All of the following are required

to bring a project to closure
EXCEPT?
A. Perform project feedback with
the team
ANS: D
B. Obtain sign off from the
customer
C. Review project documentation
for completeness
D. Update the project plans
Documents that serve as ANS: D

491
historical records for future

projects are archived:
A. throughout the project.
B. before the end of planning.
C. before the end of execution.
D. during closure.
Administrative closure is different

than contract closure in that:
A. administrative closure occurs
at project end while contract
closure occurs during execution.
B. contract closure involves
updating employee skills in their
records while administrative
closure does not deal with ANS: D
resources.
C. administrative closure
involves analyzing success while
contract closure involves the
gaining of formal acceptance.
D. contract closure includes an
audit while administrative closure
does not.
Your project is managed under a ANS: B

projectized organization. It has
just entered closure. Under the
circumstances, which of the
following should be your
GREATEST concern?
A. Setting yourself up to take
over a large multi-year project
B. The team is not focused on
completing the project.
C. You will have extra pressure
from the customer.
D. Making sure your manager
492
knows the project is almost

completed
You want to let your team know

that the weekly project status
report is now officially due by
four p.m. on Thursdays. Which
form of communication would
you use?
ANS: C
A. Formal written communication
B. Formal verbal communication
C. Informal written
communication
D. Informal verbal
communication
A team of seven people adds two

more people to the team. How
many lines of communication are
there now?
ANS: B
A. 9
B. 36
C. 18
D. 81
An output of administrative
closure is the creation of:
A. project archives.
ANS: A
B. a project charter.
C. a project plan.
D. a risk analysis plan.
All of the following are part of ANS: A

effective problem solving
EXCEPT?
A. Waiting to make decisions
B. Reviewing the decision
C. Confirming that the decision
493
solved the problem

D. Analyzing the problem
You provide a project cost

estimate for the project to the
project sponsor. He is unhappy
with the estimate, because he
thinks the price should be lower.
He asks you to cut 15% off the
project estimate. What should
you do?
ANS: C
A. Start the project and
constantly look for cost savings
B. Tell all the team members to
cut 15% from their estimate
C. Inform the sponsor of the
tasks to be cut
D. Look for resources with low
hourly rates
What percent of time do project

managers spend
communicating?
A. 90 ANS: A
B. 20
C. 70
D. 25
When is the earliest time

administrative closure should be
completed?
A. At the end of each project
phase
ANS: A
B. At the end of the project
C. Whenever a deliverable is
complete
D. Whenever a new project
manager takes over a project
494
What is the name of the process

required to ensure timely and
appropriate generation,
collection, dissemination, and
disposal of project information?
ANS: B
A. Quality management
B. Communications
management
C. Procurement management
D. Scope management
A team meeting during execution

is the BEST format to:
A. determine project status.
B. communicate. ANS: B
C. make changes to the project.
D. authorize changes to the
project.
A project team has members in

five different locations with
varying information systems. The
project manager works with the
project team to determine how
project information will be
distributed. These methods are ANS: C
detailed in which document?
A. Overall project plan
B. Scope statement
C. Communication management
plan
D. Staffing management plan
All of the following are part of the ANS: B

project closure process
EXCEPT?
A. Completing the lessons
learned
495
B. Performing closure of the

outside contract
C. Updating the archives
D. Releasing the team
All of the following are part of a

communications management
plan EXCEPT?
A. Names of the stakeholders
who can talk to the project
manager
B. Names of those receiving a
ANS: A
telephone call when the system
crashes
C. Methods used to collect and
store information
D. Names of the stakeholders
and instructions on sending
project status to them
A project team includes five

people when the project
manager adds two more. How
many additional channels of
communication are there? ANS: D
A. 7
B. 10
C. 21
D. 11
Barriers can influence

communication when sending or
receiving information. Which of
the following is NOT a barrier?
ANS: D
A. Prejudices
B. Attitudes and emotions
C. Personalities and interests
D. Feedback
496
How does most communication

occur?
A. Nonverbally
ANS: A
B. Verbally
C. Para lingually
D. Referentially
When a project manager is

engaged in negotiations, non-
verbal communication skills are
of:
A. little importance.
B. major importance. ANS: B
C. importance only when cost
and schedule objectives are
involved.
D. importance only to ensure you
win the negotiation.
All of the following are part of

administrative closure EXCEPT?
A. Update employee skills
B. Record the reasons for
ANS: D
termination
C. Transfer information from one
phase to the next phase
The communications
management plan is created for
the:
A. project sponsor. ANS: D
B. team.
C. project manager.
D. stakeholders.
You are a project manager of a ANS: C

construction project that is
497
financially challenged and behind

schedule. A foreman fails to
deliver a phase of the project on
time as promised. You need to
address the issue with the
foreman. How should you
approach the foreman?
A. You are the project manager
responsible for the whole of the
project. To ensure you have
control you remain firm and
reprimand the foreman and the
team to ensure they do not slow
down.
B. You disregard the issue,
acknowledging that what is done
is done, and develop a plan for
moving forward.
C. You meet with the foreman
inquiring about what happened,
and seek to understand and
solve the problem.
D. You reprimand the foreman in
private and ask that he keep you
better informed in the future.
When is it BEST to perform

administrative closure?
A. At the end of project planning
B. During project closure
C. At the end of each project ANS: C
phase
D. At the beginning of the project
with verification throughout the
project
The project status meeting is not ANS: D

going well. Everyone is talking at
498
the same time, there are people

who are not participating, and
many topics are being discussed
at random. Which of the following
rules for effective meetings is
NOT being adhered to?
A. Courtesy and consideration of
each other
B. Schedule meetings in
advance
C. Have a purpose for the
meeting
D. Create and publish an agenda
A project is considered closed

when the:
A. client accepts the product.
B. lessons learned are ANS: C
completed.
C. archives are completed.
D. contract is finished.
A project manager has just

reached the end of a project.
documents will the project
manager need for closure of the
project?
ANS: D
A. Documents that describe the
project status
B. Trend analyses
C. Change requests
D. Documents that describe the
product of the project
A project manager is trying to ANS: B

manage a complex project at a
6-sigma level with 15 people.
499
The project manager decides to

use a trend report because it will
help him:
A. evaluate earned value.
B. examine project results over
time.
C. analyze the level of project
complexity.
D. determine the level of quality.
Communication is key to the

success of a project. As the
project manager, you have four
stakeholders you need to
communicate with. As such, you
have six channels of
communication. A new
stakeholder has been added that ANS: B
you also need to communicate
with. How many communication
channels do you have now?
A. 7
B. 10
C. 12
D. 16
As the project manager, you are ANS: C

preparing your methods for
quality management. In your
project management system, you
are looking for a method that can
demonstrate the relationship
between events and their
resulting effects. You want to use
the method to depict the events
that cause a negative effect on
quality. Which of the following is
the BEST choice for
500
accomplishing your objective?

A. Histogram
B. Pareto chart
C. Ishikawa diagram
D. Control chart
Performance reports should

address all the needs of:
A. management.
ANS: D
B. team members.
C. the project manager.
D. stakeholders.
A project team is having difficulty

communicating over long
distances. There are 13 team
members from two countries
when five people from India are
added. This is of concern to the
project manager because:
A. communications grow ANS: A
exponentially.
B. it will be harder to use reward
power.
C. communication blockers grow
linearly.
D. conflict can be increased with
an increase in project priorities.
Extensive use of ___

communication is most likely to
aid in solving complex problems.
A. verbal ANS: B
B. written
C. formal
D. non-verbal
You are project manager leading ANS: A

501
a US $3,000,000 chemical
engineering project. To date,
you've been leading the other 11
people who comprise the overall
project team. Lately you've
noticed that you are spread too
thin and the schedule is being
negatively impacted. Because
the project is date constrained,
you convinced senior
management to accept a cost
variance and add a senior quality
assurance analyst to the project
team. This new resource will
work directly with the three
project team members who
comprise the testing sub-team.
How many more communication
channels will there be on the
project team?
A. 12
B. 11
C. 78
D. 66
Project Cost Management

includes all of the following
except:
A. Resource leveling
A
C. Cost estimating
D. Cost budgeting
E. Cost control
Which of the following choices B CPI=BCWP/ACWP=1

indicates that a project has a means that for every do
burn rate of 1.2? project is acheiving
Hint: Burn rate is the same as $1.20 of value.
502
the Cost Performance Index

A. The BCWS is 100 and the
BCWP is 120.
B. The ACWP is 100 and the
BCWP is 120.
C. The ACWP is 120 and the
BCWP is 100.
D. The BCWP is 100 and the
BCWS is 120.
The inputs to Cost Budgeting

includes all of the following
except:
B Cost baseline is an ou
A. Cost estimates
Budgeting
B. Cost baseline
C. WBS
D. Project schedule
During the six month update on a

1 year, $50,000 project, the
analysis shows that the BCWS is
$25,000; the BCWP is $20,000
and the ACWP is $15,000. What
can be determined from these
figures?
A. The project is behind schedule D
and over cost.
B. The project is ahead of
schedule and under cost.
C. The project is ahead of
schedule and over cost.
D. The project is behind
schedule and under cost.
Earned value is: E

A. Actual cost of work performed.
B. Completed work value.
C. Budgeted cost of work
503
performed.
D. Percent complete.
E. All except A.
Which of the following Cost

Management processes are
concerned with cost baseline?
D: Cost baseline is an o
A. Cost estimating
Budgeting and an input
B. Cost budgeting
Control.
C. Cost control
D. B and C
E. A and B
Cost control is concerned with:

A. Allocating the overall
estimates to individual work
packages in order to establish a
cost baseline.
B. Influencing the factors which
create changes to the cost
D
baseline to ensure that changes
are
beneficial.
C. Determining that the cost
baseline has changed.
D. B and C
E. A and B
Which of the following E

statements concerning bottom-
up estimating is true?
A. The cost and accuracy of
bottom-up estimating is driven by
the size of the individual work
items.
B. Smaller work items increase
both cost and accuracy.
C. Larger work items increase
504
both cost and accuracy.

D. A and C
E. A and B
Percent complete is calculated

by:
A. ACWP/BAC
C (Option A is percent s
B. BCWP-ACWP
C. BCWP/BAC
D. EAC/BAC
Life cycle costing:

A. Includes acquisition,
operating, and disposal costs
when evaluating various
alternatives.
B. Includes only the cost of the
development or acquisition of a A
product or service.
C. Does not take into
consideration the effect of project
decisions on the cost of using the
resulting product.
D. B and C
Which of the following inputs

belongs to Resource Planning?
A. Scope statement
B. Resource pool description
E
C. Organizational policies
D. Historical information
E. All of the above are inputs to
Resource Planning
Cost estimating: E
A. Involves developing an
estimate of the costs of the
resources needed to complete
505
project activities.
B. Includes identifying and
considering various costing
alternatives.
C. Involves allocating the overall
estimates to individual work
items.
D. A and C
E. A and B
A cost management plan is:

A. A plan for describing how cost
variances will be managed.
B. A subsidary element of the
project charter. A
C. An input to the Cost
Estimating process.
D. A and C
E. A and B
Parametric cost estimating

involves:
A. Calculating individual cost
estimates for each work
package.
B. Using rates and factors based
on historical experience to B
estimate costs.
C. Using the actual cost of a
similar project to estimate total
project costs.
D. A and B
E. B and C
Estimated at Completion is D
determined by:
A. ETC + ACWP
B. BAC - ETC
506
C. BAC/CPI
D. A and C
E. A and B
Analogous estimating:
A. Uses bottom-up estimating
techniques.
B. Uses the actual costs from a
previous, similar project. E
C. Is synonymous with top-down
estimating.
D. A and B
E. B and C

process of Project
Communcations Management?
A. Administrative Closure
E
B. Performance Reporting
C. Information Distribution
D. Communications Planning
E. Conflict Resolution
Which of the following are

outputs from the
Communications Planning
process?
A. Project records
B
B. Communications
management plan
D. Formal acceptance
E. b and c
The receiver filters messages D: Assumes that the me

based on all but the following: distance communication
A. Culture acceptable (fax or phone
B. Semantics operational)
507
C. Language
D. Distance
E. Knowledge
How much time does the typical

project manager spend
communicating both formally and
informally?
D
A. 40-60%
B. 50-70%
C. 60-80%
D. 75-90%
In communications management,
to assimilate through the mind or
senses is the process of:
A: Decoding is decipher
A. Receiving
message once assimilat
B. Decoding
C. Comprehending
D. Understanding
The sending or conveying of

information from one place to
another is the process of:
A. Networking B
B. Transmitting
C. Encrypting
D. Promoting
Group brainstorming encourages

all of the following except:
A. Team building
C
B. Analysis of alternatives
C. Convergent thinking
D. Uninhibited verbalization
The three major types of A: Reference Vijay Verm

communication are: Resource Skills for the P
508
A. Written, verbal, and non-

verbal.
B. Verbal, formal documentation,
Manager, pgs. 18-21
informal documentation.
C. Verbal, written, and graphic.
D. Verbal, written, and electronic.
All of the following are outputs

from performance reporting
A: The outputs are chan
EXCEPT:
and performance reports
A. Trend analysis
Stakeholder reports are
B. "S" curves, histograms, bar
performance reports and
charts, and tables
examples of the formats
performance reports.
D. Change requests
E. Stakeholder reports
All of the following aid in

achieving consensus EXCEPT: B: In the modern view, c
A. Maintaining a focus on the inevitable and is a natur
problem, not each other. change. If managed pro
B. Avoiding conflict. is frequently beneficial. W
C. Seeking facts. tends to minimize conflic
D. Avoiding voting, trading, or fails to resolve the issue
averaging.
All of the following are

communication tools EXCEPT:
A. Memos
E: Communication invol
B. Verbal circulation of a rumor
exchange of information
C. Videos
a sender and a receiver.
D. Body language
E. Inputing data into a
spreadsheet
Communication is the PRIME D

responsibility of a Project:
A. Manager in a weak matrix
509
B. Manager in a projectized
environment
C. Coordinator
D. Expeditor
A tight matrix is:

A. A balanced matrix
organization.
B. Where all team members are
brought together in one location.
C. Where functional managers B
operate in a dual reporting
structure reporting to both their
own departments and to the
project manager.
D. a and c
The sender is responsible for:

A. Confirming the message is
understood.
B. Ensuring the receiver agrees
with the message. A
C. Scheduling communication
exchange.
D. Presenting the message in the
most agreeable manner.
What are the four parts of the

communications model?
A. Sending, Receiving,
Decoding, and Comprehending
B. Sender, Message, Medium,
B
Receiver
C. Communicator, Message,
Receiver, Decoder
D. Communicating, Transmitting,
Receiving, Comprehending
510
A leadership style in which the

project manager shares
problems with team members
and formulates solutions as a
C: Reference Verma, "H
group is called:
the PM", pg. 218
A. Autocratic
B. Consultation in a group
C. Consensus
D. One-to-one consultation
In negotiating with functional

department managers, project
managers often find themselves
using what two-party conflict
C
management approach?
A. Win-Lose
B. Win-Win
C. Lose-Lose
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 D
called:
A. Functional
B. Weak matrix
C. Project coordinator
D. Project expediter
Formal acceptance by the client B

or sponsor of the project should
be preapred and distributed
during which process?
A. Information Distribution
B. Administrative Closeout
C. Organizational Planning
511
D. Performance Reporting
In which of the following

organizations is the project
manager role likely to be part-
time?
A. Weak matrix D
B. Functional
C. Balanced matrix
D. a and b
E. All of the above
The project manager's

leadership style should be
matched to the corresponding
developmental level of the
project team and should move
through successive steps in the
following order:
A. Disciplinary, autocratic,
D
participative
B. Staff planning, team training,
performance monitoring
C. Team building, team
development, responsibility
assignment
D. Directing, coaching,
supporting, delegating
Human resource administration

is the primary responsibility of
the:
A. Project Management Team
B. Human Resources B
Department
C. Executive Manager
D. Project Manager
E. Line Managers
512
A mandatory prerequisite for

team building is:
A. Funding for staff
development activities
B. Shared work ethics among
C
team members
C. Commitment from top level
management
D. Removal of troublesome
individuals
Which of the following is best for

handling cross-functional project
needs for a large, complex
project?
A. A strong matrix organization A
B. A project coordinator
C. A project expeditor
D. Direct executive involvement
E. A functional organization
Collocation can mean:

A. All, or almost all, team
members are moved to a central
physical location for the life of the
project.
B. Active team members may be
at different physical locations, but D
meet on a regular basis.
C. A war room is established
where team members can meet
periodically.
D. a and c
E. b and c
A key barrier to team development C

513
is:
A. A strong matrix management
structure.
B. When major problems delay
the project completion date or
budget targets.
C. When team members are
acountable to both functional and
project managers.
D. When formal training plans
cannot be implemented.
E. When members cannot be
collocated.

E: project-base orga
examples of project-based
into 2 categories: or
organizations?
that derive their reve
A. Architectural firms, engineering
from performing pro
firms, and consultants
others and organiza
B. Construction contractors and
a management by
government contractors
projects approach --
C. Organizations that have
that they typically ha
adopted a management by
management system
projects approach
financial, accounting
D. Most manufacturing companies
and reporting specif
and financial service firms
designed to support
E. a, b, and c
management. PMBO
F. a, b, and d
Legitimate power is: A: See Adams, "Prin

A. Power derived from a person's Project Managemen
formal position in the organization. Verma's, "HR Skills
B. Power bestowed due to a pg. 233
person's personal qualities and
abilities.
C. Power earned based on a
person's technical knowledge,
skill, or expertise in a particular
514
area.
D. Power to distribute information
as one sees fit.
What impact does a matrix

organization have on project team
development? B: Complicates team
A. No impact at all development becau
B. It complicates team members are accou
development. their functional man
C. It simplifies team development. project manager.
D. It hinders team development
completely.

process of project human
resource management?
A. Organizational Planning C
B. Staff Acquisition
C. Information Distribution
D. Team Development
A technique for resolving conflict

in which the parties agree to have
a neutral third party hear the
dispute and make a decision is
called: B
A. Negotiation
B. Arbitration
C. Smoothing
D. Forcing
Which of the following is not an

input into organizational planning?
A. Recruitment practices A: Recruitment prac
B. Project interfaces input of Staff Acquis
C. Staffing requirements
D. Constraints
515
Forcing, as a means to manage

conflict:
A. Exerts one's view at the
potential expense of another party.
B. Emphasizes areas of A: Forcing establish
agreement while avoiding points situation
of disagreement.
C. Estabilishes a lose-lose
situation.
D. a and c
When should the project expeditor

form of organization be used?
A. When the project is extremely
important to the organization.
B. When a project's cost and
importance are relatively low.
B
C. When the project manager has
a lot of responsibility and
accountability.
D. When the organization's
primary source of revenue is
derived from projects.
The belief that management's high

levels of trust, confidence and
commitment to workers leads to
high levels of motivation and
productivity on the part of workers
B: Verma's "HR Skil
is a part of which motivation
PM", pg. 71-73
theory?
A. Theory Y
B. Theory Z
C. Theory X
D. Contingency Theory
Which of the following is part of C: "A" is part of Goa

the expectency theory of Theory" and "B" is p
516
motivation?
A. Clear, specific, and challenging
goals generally motivate team
members.
B. Project managers should
ensure that tasks assigned to
project participants match their
skills and
the organizational climate is
conducive to helping them meet
their needs and acheiving a
Contigency Theory
sense
of competence.
C. People tend to be highly
productive and motivated if they
believe their efforts will lead to
successful results and that
success will lead to personal
rewards.
D. b and c
E. All of the above are part of the
expectency theory of motivation
Which of the following statements

concerning compromise as a
conflict resolution is false?
A. Neither party wins but both
parties get some degree of
D: A definitive resolu
satisfaction.
acheived when a co
B. Important aspects of the project
reached and accept
may be hindered in order to
solution by all partie
acheive personal objectives.
C. Compromise is generally
considered a lose-lose situation.
D. A Definitive resolution is seldom
acheived.
In which type of organization is C

517
team building likely to be most

difficult?
A. Functional
B. Projectized
C. Matrix
D. Project expediter
E. Project coordinator
A document or tool which

describes when and how human
resources will be brought onto and
taken off the project team is called
a: A: The staffing mana
A. Staffing Management Plan often includes resou
B. Responsibility Assignment histograms
Matrix (RAM)
C. Organizational Breakdown
Structure (OBS)
D. Resource Assignment Chart
A tool which links the project roles

and responsibilities to the project
scope definition is called:
A. Scope Definition Matrix
B
B. Responsibility Assignment
Matrix
C. Roles Assignment Matrix
D. Project Scope and Roles Matrix
A unilateral contract under which

the seller is paid a preset amount
per unit of service is called:
A. A cost reimbursable contract
C
B. A lump sum contract
C. A unit price contract
D. A fixed price contract
E. b or d
518
Which of the following is

considered during the
Procurement Planning Process?
A. Whether to procure
E
B. How to procure and how much
to procure
C. What and when to procure
D. b and c
E. all of the above
From a buyer's standpoint, which

of the following is true?
A. Procurement planning should

include consideration of potential
subcontracts A: (particulary if buy
B. Procurement planning does not exercise some degr
include consideration of potential influence or control o
subcontracts since this is the duty subcontracting decis
of the contractor.
C. Subcontractors are first
considered during the Solicitation
Process
D. none of the above
Which of the following processes

involves obtaining information
(bids and proposals) from
prospective sellers?
D
A. Procurement Planning
B. Source Selection
C. Contract Administration
D. Solicitation
E. Solicitation Planning
Which of the following is true E

519
about procurement documents?
A. Procurement documents are

used to solicit proposals from
prospective sellers.
B. Invitation for Bid and Request
for Proposal are two examples of
procurement documents.
C. Procurement documents
should be structured to facilitate
accurate and complete responses
from prospective sellers.
D. b and c
E. all of the above
Which of the following is a method

for quantifying qualitative data in
order to minimize the effect of
personal prejudice on source
selection?
A
A. Weighting system
B. Screening system
C. Selecting system
E. all of the above
Which of the following is true E

concerning evaluation criteria?
A. Can often be found in

procurement documents
B. Can be objective or subjective
C. Used to rate or score
proposals
D. May be limited to purchase
price if procurement item is readily
available from number of sources
520
E. all of the above
Which of the following are inputs

to the Source Selection Process?
D: (proposals is the
A. Evaluation criteria procurement docum
B. Organizational policies input into the Solicita
C. Procurement documents Process)
D. a and b
E. all of the above
A significant difference between

independent estimates and
proposed pricing could mean
that:
A. The independent estimates are

most likely incorrect and the
D
proposed pricing correct
B. The SOW was not adequate
C. The prospective seller either
misunderstood or failed to
respond fully to the SOW.
D. b or c
E. a or c

examples of indirect costs?
A. Salaries of corporate
executives
E
B. Salaries of full-time project
staff
C. Overhead costs
D. a and b
E. a and c
Which of the following contract D

521
types places the greatest risk on

the seller?
A. Cost-plus-fixed-fee contract
B. Cost plus-incentive-fee
contract
C. Fixed-price-incentive contract
D. Firm-fixed-price contract
In which of the following contract

types is the seller's profit limited?
A. Cost-plus-percentage-cost
contract D
B. Cost-plus-fixed-fee contract
C. Fixed-price-plus-incentive
D. b and c
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 A
the seller?
A. $143,000
B. $142,000
C. $140,000
D. $132,000
A cost-plus-incentive-fee (CPIF) B
contract has an estimated cost of
$150,000 with a predetermined
fee of $15,000 and a share ratio of
80/20. The actual costs of the
522
project is $130,000. How much

profit does the seller make?
A. $31,000
B. $19,000
C. $15,000
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
A: is implied
project was $150,000. How much
profit does the seller make?
A. $10,000
B. $15,000
C. $0
D. $5,000
Under what circumstances is it E

better for a contractor to
subcontract?
A. The subcontractor possesses

special technical and engineering
skills that the contractor does not
have.
B. The work to be subcontracted
represents almost all of the overall
work effort.
C. The subcontractor can perform
the work at a lower cost than the
contractor.
D. all the above
523
E. a and c
Which type of bilateral contract is

used for high dollar, standard
items?
A. Purchase order C
B. Request for proposal (RFP)
C. Invitation for bid (IFB)
D. Request for quotation (RFQ)
E. all of them are appropriate

characteristics of a purchase
order?
A. A bilateral contract used for low

dollar items
B
B. A unilateral contract used when
routine, standard cost items are
required.
C. A bilateral contract used for
high dollar, standard items
D. a and c
In which stage of the negotiation

meeting are points of concession
identified?
D
A. probing
B. closure
C. agreement
D. scratch bargaining
Which type of warranty is enacted C

if a service or product does not
meet the level of quality specified
in the contract?
524
A. Implied warranty of
merchantability
B. Implied warranty of specified
quality
C. Express warranty

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1

198. _________ Contains detailed descriptions of work

1. The relationship between the budgeted actual cost, actual

2. All work packages are complete

. Diane was so concerned about her project that she woke up

The measurement which best shows the difference between

Rework costs ____ times budgeted costs.

. If part of a project's costs will be paid in future years, the

. If the ACWP exceeds the BCWP, the cost estimate at Answer: A

D. exceed the schedule estimate at completion

. If the BCWS = $1,000,000, the BAC = $2,000,000, the

. Cost management requires a critical look at future

. The cost estimate that has a range for error of minus 10

There are usually two types of reserves in a project's budget.

Feasibility studies are evaluations of both the technical and

Project financing can be extremely complex and can come

E. operation, maintenance, and storage

The integration of cost and schedule to provide measures of

The pricing of a project can be extremely complex in the

In estimating the cost of work, the best source of cost

Setting up a cost control system requires matching the work

Cost overruns on a project have major impacts on the

. Suppose the contingency allowance established to cover

B. unchanged because the contract is in place

. In the earned values system, the focus is on "cost of work,"

Indices can provide an indication of the status of a project. In

Suppose that in the earned value system, the status of the

. A project is being advertised to solicit bidders. The buyer has

. Project financial audits are used to determine the current Answer: B

A. a project budget system

A project audit is often a three-step process using different

The budget for a project is the baseline from which future

In the earned value system for determining project status, Answer: D

accounting is more accurate

Because of the investment or risk associated with a project,

Estimating costs for a project is difficult because of the lack of

The degree of uncertainty (lack of information) in a project Answer: B

. The most accurate estimates (and the most expensive to

The ________ identifies the project elements that costs will

The EAC is a forecasting technique based on past project

The best way to manage the costs of change requests is to Answer: D

D. document and authorize all changes

Materials management is crucial to the success of the project

. Project financing is critical to large projects where neither the

The financing plan for a project should detail the methods of

. Investors are often used to obtain the necessary financing

Lending institutions are eager to finance projects that have an

The success of a project is usually considered its ability to

. Under any type of contract, the owner (buyer) is always Answer: D

best methods of controlling contractor expenditure rates

. The budget for a major project lasting several years is

Project Cost Management includes all of the following Answer: B

Which of the following choices indicates that your project was

. Earned value can best be defined as

. The output from resource planning includes

. Cost estimates may be expressed in I. Units of currency II.

All of the following are functions of cost control EXCEPT

. During the sixth monthly update on a ten month $30K

. Cost estimates include all of the following resource

Parametric cost estimating involves Answer: D

All of the following choices represent inputs to the resource

Cost control is concerned with I. Influencing the factors that

Historical results used in cost estimating may include I.

In the earned value system, cost variance is computed as Answer: B