Lesson 2 & 3 – Project Management Framework and Processes

2/3-1 The processes in project management have been classified into knowledge areas and
_______________.

a) Methods
b) Process Group
c) Categories
d) Best practices

Answer: B – Process Group. Each project management knowledge area is subdivided into specific
process group, each of which is characterized by their inputs, tools and techniques, and outputs.

2/3-2 The application of knowledge, skills, tools and techniques to project activities to meet the
project requirements is referred as:

a) Project initiation
b) Project coordination
c) Project administration
d) Project management

Answer: D – Project management. The question refers to the specific definition of project management
as provided in the PMBOK ® Guide, 5th edition, Page 5.

2/3-3 All of the following are examples of Enterprise Environmental Factors except:

a) Organizational culture
b) Political climate
c) Performance measurement criteria
d) Existing facilities and infrastructure

Answer: C – Performance measurement criteria. This is an example of an organizational process asset.

Enterprise environmental factors are those internal and external factors that surround and influence
project success. Organizational process assets include policies, procedures, templates and other items
that will assist in guiding the completion of project work. Refer to pages 27 and 29 in the PMBOK ®
Guide, 5th edition.

2/3-4 The person or organization that provides the funding or financial resources for the project is
referred to as the:

a) Customer
b) Sponsor
c) Steering committee

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d) Project Management Office

Answer: B – Sponsor. The sponsor provides the financial resources and is considered to be a key
stakeholder. The customer or user is considered to be the recipient or end user of the product of the
project. Refer to page 31 of the PMBOK ® Guide, 5th edition.

2/3-5 During the project lifecycle stakeholder identification is expected to be:

a) A continuous and sometimes difficult process

b) The responsibility of the project sponsor
c) Completed prior to the approval of the project charter
d) Focused only stakeholders who will be impacted favorably as a result of the project

Answer: A – Stakeholder identification will continue throughout the project life cycle. As the project
proceeds through each phase, additional stakeholders may become involved while others will be
released. Stakeholder identification is conducted primarily by the project management team but some
stakeholders may be identified in the project charter. Stakeholders may include people and
organizations that may be affected either negatively or positively by the project outcome.

2/3-6 The end of a project phase is generally considered to be:

a) The formal authorization to begin the next project phase

b) A natural point to assess project performance and determine if the project should continue
c) The points in the project life cycle where risk is at its lowest level
d) The point where formal control procedures of the project are generally enforced

Answer: B – At the conclusion of a project phase the project manager and team should assess the
performance of the project and determine if acceptable conditions exist to support a decision to move
forward or discontinue the project. Risk levels will vary as the project progresses and the end of a phase
is generally considered to be a good point to reassess risk. Project control procedures should be
enforced throughout the project life cycle. Refer to page 39 of the PMBOK ® Guide, 5th edition.

2/3-7 All of the following statements about the project life cycle are true, except:

a) Cost and staffing are at the highest levels during the start of the project
b) Risk is at the highest levels of uncertainty at the start of the project
c) The control needs of the organization will determine how many phases will be included in the project
life cycle
d) Project phases are typically completed sequentially but can be overlapped to accelerate completion
of a project

Answer: A – Cost and staffing is generally at the lowest levels during the startup and first phase of a
project. Refer to page 40 of the PMBOK ® Guide, 5th edition.

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2/3-8 As you are defining the project in more detail and moving through the phases of the project,
you are engaged in which of the following?

a) Progressive elaboration
b) Project selection
c) Monitoring and Controlling
d) Decomposition

Answer: A – Progressive elaboration is defined as “moving forward in increments and adding more
detail as the project progresses. Project selection precedes the detail or progressive planning of a
project. Monitoring and controlling is ongoing throughout the project lifecycle and is utilized during and
after detailed planning and elaboration of the project. Decomposition is generally associated with the
development of the work breakdown structure and refers to the breakdown of large items into smaller,
more manageable components.

2/3-9 All of the following are generally considered characteristics of a project except:

a) Unique undertaking
b) A temporary endeavor with specific starting and ending dates
c) Ongoing and continually supporting organizational operations
d) Completed when all objectives are achieved or terminated when the project objectives are no longer
viable

Answer: C – Projects have some characteristics that are similar to operations. Projects and operations
require resources, they are planned and scheduling is involved. Projects, however, are generally
considered temporary, regardless of total scheduled time. Operations are ongoing and support the day
to day functions of an organization. Refer to page 3 in the PMBOK ® Guide, 5th edition.

2/3-10 Your company is introducing a new product to be available in the first quarter of the next
business cycle. The product will support an existing product as an add-on optional feature. Which of
the following is true?

a) This is an ongoing operation because the previous product is already in use by customers
b) This is a project because it involves a new product that has not been previously developed
c) This is an operation because it adding a feature will be part of an ongoing sales effort
d) This is a program that supports the operations of the company

Answer: B – This is a project to develop something new and unique and will have a defined end date. It
is not part of operations, nor is it a program. The new product is separate from the existing product.
Refer to pages 3 & 4 of the PMBOK ® Guide, 5th edition.

2/3-11 Generally, a project manager’s level of authority during their project assignment can be
directly related to which of the following?

a) The project manager’s relationship with the project sponsor

b) The organizational structure

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c) The project manager’s communications skills
d) The project manager’s technical competency

Answer: B – The project manager’s level of authority usually depends on the type of organizational
structure. These structures include Functional, Matrix (Weak, Balanced and Strong), and Projectized.
Communications skills and technical ability may affect level of authority in some organizations but
managerial structure is generally the major factor. Refer to page 21 – 26 of the PMBOK ® Guide, 5th
edition.

2/3-12 A significant advantage of the functional organizational structure is:

a) All employees are grouped by expertise and assigned to one clear manager
b) Communication between the elements of each functional group is fast and efficient
c) Project work is considered to be priority work in all functional groups
d) Resources are easily shared across functional groups

Answer: A – In a functional structure, people are grouped by technical expertise and are a assigned to
one clearly defined manager. This establishes efficient internal operations and communications. The
functional structure can create difficulties with communication between groups. Technical skills are not
generally shared with other functional groups or operations. Functional work generally receives the
highest priority.

2/3-13 You have been assigned as project manager in a balanced matrix organizational structure. This
presents a challenge to you in obtaining and assigning project resources because:

a) The project manager has extremely low authority in a balanced matrix

b) The project manager has an equal level of authority with the functional managers
c) In a balanced matrix the project budget is controlled by the functional managers
d) The project manager is assigned to the project on a part time basis.

Answer: B – In a balanced matrix, the project manager’s authority is low to moderate and usually at an
equal level with the functional managers. This can result in conflict regarding resource assignments,
priorities, and in the general management of the project. The project manager is assigned full time and
control of the budget is shared between project manager and functional manager.

2/3-14 The initiating process group includes all of the following except:

a) Stakeholder identification
b) Business case development and review
c) A contract or statement of work
d) Project scope statement

Answer: D – The project scope statement is an output of the Define Scope process and is part of the
Planning process group.

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2/3-15 Which of the following process groups is specifically targeted to complete the project work and
to satisfy project requirements?

a) Planning process group

b) Executing process group
c) Monitoring and Controlling process group
d) Closing process group

Answer: B – The executing process group is intended to ensure that the work defined in the project plan
is performed. Refer to page 53 of the PMBOK ® Guide, 5th edition.

2/3-16 The project manager should communicate the need for a change control process mainly
because:

a) The cost of project changes will not change significantly as the project progresses but it is important
to maintain a record of all changes for budget tracking purposes
b) The cost of project changes will likely increase through the project lifecycle and a process should be in
place to ensure that only necessary changes are considered and implemented
c) This will minimize the number if changes that can be introduced into the project which will result in
better quality, higher customer satisfaction and reduced rejects
d) The change control process will ensure that only stakeholders with significant authority can submit
change requests

Answer: B – As a project proceeds the cost of changes will, in most cases, increase. This requires project
managers and team members to control changes effectively and to emphasize the need for proper and
well organized planning. A change control process is not designed to minimize change, it is intended to
manage change and prevent unauthorized changes.

2/3-17 Success in portfolio management is generally defined as:

a) Compliance with schedule, budget, and specifications requirements

b) Realization of the business benefits and financial objectives
c) Aggregate investment performance and benefit realization
d) Control of changes to specific products and services

Answer: C – Portfolio management is generally associated with the relationships between components
in the portfolio, effective resource management to protect priority components, and the aggregate
results of the portfolio as they relate to strategic performance. Refer to page 8 of the PMBOK ® Guide,
5th edition.

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 Lesson 4: Project Integration Management
4-1 The set of combined processes implemented by the project manager to ensure all the elements of
the project are effectively coordinated are known as:

a) Project execution
b) Inputs, Tools and Techniques, Outputs
c) Project Integration Management
d) Project Monitoring and Control

Answer: C – Project integration management combines all of the processes within the entire project life
cycle through the five major process groups – Initiating, Planning, Executing, Monitoring & Controlling,
and Closing.

4-2 The document that assigns a project manager and officially authorizes a project to use
organizational resources for the purpose of planning, executing and controlling a project is the:

a) Project Charter
b) Project Plan
c) Scope Statement
d) Work Authorization Form

Answer: A – The Project Charter is part of the initiating processes and provides the authorization to
move forward. The project scope statement, the project plan, and work authorization process are
developed after the charter has been approved.

4-3 A project manager schedules meetings for many different reasons. Status review meetings are
typically:

a) Held to provide all stakeholders with critical project information

b) Held to exchange information about the project between project team members
c) Held to update departmental staff of project status
d) Held only when there is a need for a workaround

Answer: B – Generally project status meetings provide the project team and those stakeholders directly
involved in project activities with up to date information about the project. Other stakeholders and
higher level managers may receive information through formal reports or specifically scheduled
meetings. Workarounds are temporary responses to an unplanned situation and generally require
immediate action.

4-4 _____________________ is any documented procedure used to apply technical and administrative
direction and surveillance for the purpose of identifying, recording, and controlling any changes to
product characteristics.

a) Scope Change Control

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b) Schedule Change Control
c) Quality Control
d) Configuration Management

Answer: D – Configuration management is considered a component of change control and is specifically

associated with changes to features, functions and physical characteristics of a product or deliverable.

4-5 A _________________ consists of the data sources, tools and techniques used to gather, integrate,
analyze and disseminate the results of the combined outputs of the project management processes.

a) Project management planning system

b) Project controls system
c) Project communication system
d) Project management information system

Answer: D – The Project management information system is used to track project information and
performance. These systems may be either manual or electronic. Such information kept by these
systems can include the tracking of time worked, project costs, and other factors that would be
communicated to project stakeholders.

4-6 Assumptions are factors used for planning purposes and may be communicated to a project team
by several different stakeholders. These factors, when stated, are generally considered to be true, real
or certain and are:

a) Absolute and non-negotiable

b) Not always based on factual information
c) Estimates
d) Easy to understand and communicate

Answer: B – Assumptions documented during the project planning process are generally considered to
be non-factual and require validation.

4-7 The project management plan is used to:

a) Provide project inputs, tools and techniques, and outputs to be used on the project for the purpose of
managing the product of the project
b) Guide project execution, document project planning assumptions, and facilitate communication
among stakeholders
c) Provide general management, product quality, and project management information which is
communicated to all stakeholders
d) Create organized policies using stakeholders skills and knowledge, then itemized and catalogued in
the corporate knowledge base

Answer: B – The project plan is based on estimates, past experience of the project team, and other
available information. Generally, the project plan is considered to be a guide that is expected to change

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throughout the project life cycle. The initial project plan provides an approach to achieving objectives
and guidelines for communicating information.

4-8 ______________ are usually included to support the overall project management plan and are
developed for the purpose of providing more detailed information, guidelines and control processes
for specifically defined project elements or planning components.

a) Change request forms

b) Performance reports
c) Subsidiary plans
d) Statements of work

Answer: C – The project management plan is a combination of several plans that provide overall
guidance to the project team. These plans include Schedule Management, Scope Management, Cost
management, Resources management and other depending on size and complexity of the project.

4-9 During the planning process the project manager should be aware that assumptions generally
involve:

a) A degree of risk
b) Direction from the Sponsor
c) Financial controls
d) Detailed, factual information

Answer: A – Assumptions are not based on factual information and failure to validate may result is
significant risk events.

4-10 _________________ are applicable restrictions that will affect project performance

a) Organizational policies
b) Performance guidelines
c) Constraints
d) Additional planning requirements

Answer: C – Constraints are restrictions or limitations and must be managed throughout the project life
cycle. Examples include resource availability, predetermined schedules and predetermined budgets.

4-11 __________________ is a formal, approved document that includes the collection of outputs of
the planning process and is used to manage and control project execution.

a) The project management plan

b) The organizational process asset document
c) The organizational procedures document
d) The work authorization system

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Answer: A – The project management plan is a document that combines the results of all planning
processes. Subsidiary plans, such as Time Management and Cost management are the outputs or results
the planning processes.

4-12 Risk plans, quality plans, and change control plans are all ______________ to the project plan.

a) Constraints
b) Appendixes
c) Additions
d) Subsidiaries

Answer: D – Subsidiary plans are the outputs of some of the other planning processes associated with
Scope, Time, Cost, Quality, Human Resources, Communications, Risk, and Procurement management.
Additional plans that can be added to the project management plan include Change Management,
Process Improvement, Requirements Management and Configuration Management plans.

4-13 _________________ is the primary process for carrying out the project plan.

a) Configuration management
b) Direct and Manage Project Work
c) Administrative management
d) Monitor and Control Project Work

Answer: B – As described in the PMBOK ® Guide, Direct and Manage Project Work is the major process
for carrying out the plan. Refer to page 61 of the PMBOK ® Guide, 5th edition, to review the five major
process groups and the 47 project management processes.

4-14 As a project manager, you must ensure that changes are coordinated across the entire project life
cycle from conception to completion. The process that focuses on this requirement is:

a) Managing the Triple Constraint

b) Change management integration
c) Perform integrated change control
d) Configuration management

Answer: C – Perform Integrated Change Control includes all of the lower level processes and subsidiary
plans that will be used to manage project change throughout the project life cycle.

4-15 A project is being executed and is progressing through its life cycle. You notice a significantly
large percentage of project changes occurring on the project have been originated by the research
department. What should you do?

a) Assign a team member to work solely with the research department

b) Change your communication plan to ensure that you, as the project manager, are the only person
assigned to interface with the research department

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c) Ask the research department to assign one person to be your liaison
d) Schedule a meeting with the research department to review the change process and determine the
causes of the changes

Answer: D – The most appropriate action to take in this case is to ensure that the research department
fully understands the project scope of work, the change control process, and to determine why change
requests continue to be submitted.

4-16 You are managing an information technology project. A technical specialist on your team, after
having an informal meeting with a low ranking customer representative working on the project,
determines that a simple alteration would be a great addition to the project. You and the project
sponsor have already signed off on the scope and a change control process is in place. The technical
specialist installs the change with no negative effect to the project schedule and at no additional cost.
What management action should be taken?

a) The technical specialist should be recognized for exceeding customer expectations without affecting
project cost or schedule
b) The project manager should add a task to the project plan with no additional scheduled time and note
that there was no increased budget
c) The technical specialist should be informed their actions were not authorized and was inconsistent
with the change management plan
d) The project manager should create a change control form, and have the customer sign-off, since the
change has already been made

Answer: C – The change control process should be followed by everyone on the project team. Failure to
manage change effectively can result in significant scope creep and could result in serious implications
and additional risk and liability.

4-17 Two months into a design project, the customer requested a modification to the product
specifications. The change was immediately implemented by the project team without notifying the
project manager. During the final testing phase, results were different than what was planned. This
scenario is an example of which of the following?

a) Poor adherence to the change control process

b) Poor adherence to the communication plan
c) Poor development of the quality management plan
d) Poor definition of the test plan

Answer: A – The change control process was not followed. Failure to follow the agreed upon change
control processes may create serious risk situations and jeopardize the entire project.

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 Lesson 5: Project Scope Management
5-1 Determining if the project scope has been completed relies mostly upon the use of:

a) Project Charter
b) Project Scope Statement
c) Statement of Work
d) Project Plan

Answer: B – The project charter authorizes the project but is not a detailed plan. The statement of work
generally precedes a contract and provides a narrative description of work to be completed. The project
plan is derived from the project scope statement. The scope statement answers the questions of what,
why, who, where, how and in combination with the work breakdown structure provides a detailed
description of what must be accomplished.

5-2 You have been selected as the project manager for a major infrastructure upgrade at your
company headquarters. This means that:

a) A project charter has been approved and signed by management

b) Project selection processes have been initiated
c) The project plan has been progressively elaborated
d) The scope of the project has been verified

Answer: A – Generally, if a project manager is assigned, the project has been approved and authorized.
Project selection processes will determine if a project should be approved. The selection of a project
manager indicates that planning will begin soon. The scope of the project will be determined during the
planning process and verified as the project progresses.

5-3 As a project manager you should become familiar with the description of the product that will be
delivered to ensure that:

a) A relationship exists between the product and the business need

b) No changes to the product scope will occur
c) The project scope can be changed without detailed analysis
d) All constraints have been removed

Answer: A – The project manager should understand the purpose and functions of the product and the
needs of the organization that will receive the product.

5-4 The process of planning in increments, adding detail as the plan is developed is known as:

a) Scope definition
b) Decomposition
c) Progressive elaboration
d) Rolling Wave Planning

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Answer: C – This is the essence of progressive elaboration. Scope definition and decomposition are
included in the broad definition of progressive elaboration. Rolling Wave planning is a form of
progressive elaboration.

5-5 The scope statement includes all of the following except:

a) Project business objectives

b) Project deliverables
c) Detailed work breakdown structure
d) Product summary

Answer: C – The work breakdown structure is developed after the project scope statement has been
defined and accepted.

5-6 You and your team are working together, subdividing the major deliverables of the project into
smaller components. You are involved in the process of:

a) Scope Planning
b) Decomposition
c) Initiation
d) Scope statement development

Answer: B – Decomposition is the specific process used to develop a detailed work breakdown
structure.

5-7 The process that will help to improve the reliability of cost, duration, and resource estimates is:

a) Define scope
b) Product analysis
c) Cost/Benefit analysis
d) Initiation

Answer: A – The Define Scope process produces a detailed description of the project and product. The
result is the project scope statement, which provides a basis for more detailed planning. Product
analysis is included in the define scope process. Cost/Benefit analysis is generally associated with project
selection. Initiation precedes the detailed planning process.

5-8 The document that describes in detail, the objectives, project work, deliverables, and product of a
project is the:

a) Scope statement
b) Project Charter
c) Work breakdown structure
d) Work breakdown structure dictionary

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Answer: A – The project charter does not provide project details. The work breakdown structure is
developed from the information in the Scope Statement. The work breakdown structure dictionary
provides detailed information about elements of the work breakdown structure.

5-9 Completion of the product scope is measured against:

a) Product requirements
b) Project requirements
c) Project objectives
d) Scope statement

Answer: A – Product scope refers to the complexity of the product in terms of features, functions, and
physical characteristics. Project requirements, project objectives, and the scope statement are
associated with project scope.

5-10 A work package is:

a) A task with a unique identifier

b) The first level of the work breakdown structure
c) A deliverable oriented grouping of project components
d) The work package is the lowest level of the WBS

Answer: D – Answers A and B are associated with components of a work breakdown structure. The work
breakdown structure is a deliverable-oriented grouping of components but the work package is the
lowest level deliverable in a branch of the work breakdown structure and contains several activities or
an activity list.

5-11 You receive a verbal change request from your client that will impact the agreed upon scope of
work. You should:

a) Accept the change, document the request then assign someone to oversee it
b) Advise the customer that changes to the scope are not acceptable
c) Review the change control process with the client
d) Accept the change only after ensuring you are not held accountable for additional work.

Answer: C – The appropriate action when change requests are submitted is to follow the established
and agreed up change control process.

5-12 All of the following are included in scope change control except:

a) Influencing factors that create scope changes

b) Determining that a change has occurred
c) Verifying the correctness of work results
d) Managing the actual changes when and if they occur

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Answer: C – Verifying the correctness of work is associated with quality management and scope
verification.

5-13 A term used to describe the magnitude of unauthorized variations to the scope of work is:

a) Re-planning
b) Feasibility analysis
c) Scope creep
d) Performance measurement

Answer: C – Scope creep is the general term used to describe work that has been added to the project
scope without proper authorization.

5-14 Reviews, audits, and walk-throughs are examples of:

a) Formal acceptance
b) Inspection
c) Additional planning
d) Internal failure

Answer: B – Inspection of products may be accomplished through reviews, audits and walk-through
visits. Walk-throughs are commonly associated with projects that produce physical deliverables that can
be observed and tested. Formal acceptance usually follows a successful inspection. Internal failure
results from non-conformance to processes.

5-15 The _____________ aids in creating a more detailed definition of the scope of the project and can
be used to validate the work of the project.

a) Scope baseline
b) Work breakdown structure
c) Project charter
d) Alternatives identification

Answer: B – The scope baseline is an output of Create WBS. The project charter initiates the project and
provides high level information. Alternatives identification does not provide detailed descriptions of
project work.

5-16 The scope baseline is defined as the:

a) Project Scope statement, work breakdown structure and work breakdown structure Dictionary
b) Approved project scope statement and charter
c) Approved project scope, schedule and budget
d) Validated measurements and approved changes

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Answer: A – The scope baseline is an output of the Create work breakdown structure process. Page 131
PMBOK ® Guide, 5th edition.

5-17 The _________ contains detailed descriptions of work packages.

a) Work breakdown structure dictionary

b) Scope of work statement
c) Task-level budget estimates
d) Activity cost estimates

Answer: A – The work breakdown structure dictionary provides the project team with more detailed
information about components of the work breakdown structure. Page 132 PMBOK ® Guide, 5th edition.

5-18 A scope statement is important because it:

a) Provides an executive summary of the project for sponsors

b) Documents authorization of the project for the stakeholders
c) Provided criteria for determining total project cost
d) Defines the product, the project deliverables and user acceptance criteria

Answer: D – The scope statement is not an executive summary. The project charter authorizes the
project. It does not include all of the information needed to develop a complete cost estimate. The
scope statement does define the project in detail and includes descriptive acceptance criteria.

5-19 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 the change cannot be made without revising the project plan
b) Make the change since it does not affect the schedule or the project budget
c) Meet with management to discuss the change control processes
d) Have a change request initiated and look for other impacts on the project

Answer: D – The correct action is to analyze the change and determine the potential impact on other
area of the project. Impact analysis is a key factor in project change control.

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 Lesson 6: Project Time Management
6-1 Determining activity sequences, developing activity duration estimates and estimating resource
requirements are necessary to:

a) Define the project

b) Develop the work breakdown structure
c) Develop the schedule
d) Initiate the project

Answer: C – Sequence activities, activity duration estimates, and estimating resources provide the
inputs to the develop schedule process. Page 141 PMBOK ® Guide, 5th edition. Time management
overview.

6-2 All of the following are inputs to the process “define activities”, except:

a) Scope baseline
b) Organizational process assets
c) Enterprise environmental factors
d) Decomposition

Answer: D – Decomposition is included in the tools and techniques of the define activities process.

6-3 The software cannot be tested until coding is completed. This is an example of:

a) Discretionary dependency
b) Soft logic
c) Preferential logic
d) Mandatory dependency

Answer: D – Mandatory dependencies are also known as hard logic and are generally inherent in the
nature of the work. Discretionary, soft logic, and preferential are generally associated with best
practices.

6-4 You have been asked to reduce the schedule duration of a major project. Your team suggests
overlapping several project activities to reduce the overall duration. This process is known as:

a) Crashing
b) Fast tracking
c) Leveling
d) Monte Carlo technique

Answer: B – Fast tracking involves performing activities in parallel (overlapping) rather than in series
(one after the other). Crashing involves the use of overtime or additional resources. Leveling

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redistributes work and may result in an increase in project schedule. Monte Carlo technique is generally
associated with risk management and is used to determine probable project outcomes or results.

6-5 A functional manager for the engineering team has provided you with this information: A work
package for the engineering activities will most likely require 12 weeks to complete. If everything goes
well, it could take 8 weeks, but there have been times when this work has taken 24 weeks to
complete. Based on this information, what is the expected duration of the work package?

a) 13.33
b) 14.27
c) 44
d) 12

Answer: A – Use the formula (optimistic + 4 times the most likely + pessimistic) divided by 6
{8 + 4(12) + 24} / 6 = 13.33

6-6 A work package is behind schedule. You decide to add more resources to the activities and use
overtime to correct the schedule slippage. This is an example of the technique known as:

a) Resource leveling
b) Heuristics
c) Crashing
d) CPM

Answer: C – Crashing, which is adding resources or using overtime, may reduce the duration of an
activity. Resource leveling is used when a resource has been over allocated. Heuristics is a term
associated with generally accepted information or “common knowledge.” CPM refers to Critical Path
Method.

6-7 The start of an activity must be delayed until 5 days after the finish of its preceding activity. The
correct term for this modification of the logical relationship is:

a) Lead
b) Lag
c) Slack
d) Float

Answer: B – Lag introduces delay between predecessor and successor relationships and is usually
associated with a physical requirement. Allowing concrete to cure is a common example of lag. Lead is
used to accelerate a network path. Float and slack or measures of flexibility in a project schedule.

6-8 The most common type of relationship in the precedence diagramming method (PDM) is the:

a) Start to Finish
b) Finish to Finish

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c) Finish to Start
d) Start to Start

Answer: C – Refer to page 156 PMBOK ® Guide, 5th edition.

6-9 Which of the following is not a tool or technique in the Control Schedule process?

a) Schedule compression
b) Performance reviews
c) Resource optimization techniques
d) Change requests

Answer: D – Change requests are an output of the control schedule process.

6-10 The technique used to modify the project schedule to account for limited resources or to develop
a “resource-limited” schedule is known as:

a) Precedence Diagram Method

b) Critical Path Method
c) Critical Chain Method
d) Schedule Network Analysis

Answer: C – Critical chain method identifies the “weak links” in the project schedule and utilizes buffers
to manage the schedule. Refer to page 178 of the PMBOK ® Guide, 5th edition.

6-11 What kind of dependencies can be shown by the Arrow Diagramming Method (ADM)?

a) Finish to Start
b) Start to Finish
c) Start to Start
d) Finish to Finish

Answer: A – ADM can only show Finish to start dependencies.

6-12 You are in the process of calculating the early and late start and finish dates for your project
activities. This form of mathematical analysis is known as:

a) Critical Path Method

b) Monte Carlo simulation
c) Program Evaluation Review Technique
d) Activity duration estimating

Answer: A – CPM – Critical Path Method and utilizes the forward and backward pass to determine early
start, early finish, late start and late finish of each activity. Monte Carlo simulation is a quantitative risk
analysis technique. Activity duration estimating precedes the development of the project schedule.

18
6-13 Your sponsor has informed you that a major project activity must be scheduled with a date to
start no earlier than June 1. This is an example of:

a) A major milestone
b) A lag
c) A constraint
d) An activity duration estimate

Answer: C – A constraint is a limitation. Predetermined dates limit options and eliminate alternatives.

6-14 Your project sponsor contacts you and asks you to provide an estimate on the total duration of a
newly approved project. He wants the estimate to be available for a meeting with project
stakeholders that has been scheduled for later in the afternoon. The most appropriate estimating
technique to meet this need would be:

a) A bottom-up estimate
b) A definitive estimate
c) A PERT estimate
d) An analogous estimate

Answer: D – An analogous estimate, a top down estimating technique, can generally be developed
quickly. It is not intended to become the final estimate. It range of reliability can be extreme. A bottom
up estimate requires significant time to prepare. A PERT estimate, also known as a weighted average
estimate is usually associated with specific project activities.

6-15 How does Free Float differ from Total Float?

a) Total Float is the accumulated amount of Free Float

b) There is no real difference – the two terms are functionally equivalent
c) Activity free float is calculated by subtracting its Total Float from the critical path Total Float
d) Free Float affects only the early start of any immediately following activities

Answer: D – Free float is the amount of flexibility between the early finish of an activity and the early
start of its immediate successor activities. Free float allows an activity to slip for a period of time before
affecting its immediate successor.

6-16 You are working on a software development project, and are about to enter the testing phase.
The project requires the installation of specific hardware which is associated with another project that
has been delayed. This is an example of:

a) Mandatory dependency
b) External dependency
c) Internal dependency
d) Discretionary dependency

19
Answer: B – An external dependency is related to a non-project activity and is considered outside the
control of the project team.

6-17 The tools and techniques of the process “Define Activities” include all of the following except:

a) Decomposition
b) Rolling wave planning
c) Scope baseline
d) Expert judgment

Answer: C – The scope baseline is an input to the define activities process. Page 149 PMBOK ® Guide,
5th edition.

6-18 You have been asked to develop a schematic display of the logical relationships of your project’s
activities. The result of your efforts is the:

a) Project network diagram

b) Resource breakdown structure
c) Work breakdown structure
d) Schedule network template

Answer: A – A project network diagram is produced when the logical relationships of all project
activities have been defined. The work breakdown structure and resource breakdown structure do not
display logical relationships.

Create a network diagram using the following information:

Activity Duration Predecessor

A 2 -
B 3 A
C 1 A
D 4 B,C
E 1 D
F 2 E
G 3 E
H 2 F,G

6-19 What is the duration of this project?

a) 12
b) 13
c) 14
d) 15

20
Answer: D

6-20 What is the critical path for this project?

a) ABCDEH
b) ACDEGH
c) ABDEGH
d) ABDEFH

Answer: C

6-21 What is the earliest that activity G can start?

a) 9
b) 10
c) 13
d) 15

Answer: B
Note: The answers to questions 19, 20, 21 require the student to develop a network diagram and then
perform the forward and backward pass.

6-22 Typically, during the project planning process, a detailed project network schedule can be
created after:

a) A scope statement is approved

b) The work breakdown structure is created
c) An escalation process is agreed upon
d) A project control plan is created

Answer: B – Generally, after a work breakdown structure has been developed and the work packages
fully defined, the project team will develop a network diagram as predecessor and successor
relationships are established.

6-23 Generally, projects are planned by developing phases that are performed sequentially. In some
cases, it is necessary to accelerate the project life cycle by overlapping project phases. Which of the
following best describes this technique?

a) The technique of overlapping requires the elimination of minor project activities which results in
higher quality
b) Overlapping project phases will compress the schedule but will not generally have an effect on
project risk

21
c) This technique is known as fast tracking and the risk level should be acceptable before it is
implemented
d) This technique is known as crashing and can increase the cost of the project but will not affect project
risk

Answer: C – Overlapping is referred to as fast tracking and can introduce risk into the project. Generally,
activities are not removed and the scope is not changed. Crashing involves the addition of resources or
the use of overtime and will usually increase project cost.

Lesson 7: Project Cost Management

7-1 All of the following are inputs to the Determine Budget process except:

a) Scope Baseline
b) Project Schedule
c) Activity cost estimates
d) Human Resource Plan

Answer: D – Human Resource plan is an input to Estimate Costs.

7-2 Your project’s earned value (EV) = 350, its actual cost (AC) = 400 and its planned value (PV) = 325.
What is the cost variance (CV)?

a) +350
b) -75
c) +400
d) -50

Answer: D – Cost variance = EV – AC = 350 – 400 = -50

7-3 Measuring the square footage of a building and then multiplying that figure by a set cost factor for
construction is an example of:

a) Analogous estimating
b) Parametric estimating
c) SWAG
d) Bottom up estimating

Answer: B – Parametric estimating uses statistical relationships such as cost, duration, and labor rates.
Refer to page 205, PMBOK ® Guide, 5th edition.

7-4 Your team is in the process of finalizing and producing the cost baseline for the project you are
working on. Your team is involved in which of the following?

22
a) Cost Estimating
b) Determine Budget
c) Resource leveling
d) Bottom up estimating

Answer: B – The cost baseline is an output of the Determine Budget process. Refer to page 208 PMBOK
® Guide, 5th edition.

7-5 You are involved in the process of developing an assessment of the likely quantitative amount of
funding that will be required to complete the project. You are involved in:

a) Pricing/Costing
b) Alternatives analysis
c) Estimate costs
d) Risk assessment

Answer: C – Estimate Costs. Pricing/Costing is associated with business decisions related to profit
margins. Alternatives analysis refers to considering other options about how to develop and or produce
the project’s deliverables. Risk assessment is included in the process of estimating costs.

7-6 Which of the following is not generally an example of direct cost?

a) Materials
b) Subcontractor expenses
c) Employee benefits
d) Project manager salary

Answer: C – Employee benefits, taxes, rent, maintenance are generally considered indirect project costs.

7-7 Your project actual cost has been reported at $200.000. This is equal to the Earned Value. The
Budget at completion for your project is $400.000. It is assumed that all future work will be
accomplished at the budgeted rate. The EAC (Estimate At Completion) is:

a) $200,000
b) $600,000
c) $400,000
d) Cannot be determined with the information provided

Answer: C – In this example the EAC = AC + BAC – EV = 200,000 + 400,000 – 200,000 or 400,000

7-8 You are requested to produce the estimated cost of the project, as closely and as accurately as
possible. Which of the following techniques would you use?

23
a) Bottom-up estimating
b) Order of Magnitude
c) Parametric
d) Analogous

Answer: A – A bottom up estimate will produce a definitive estimate. Order of magnitude, parametric
and analogous estimates are considered to be top down and have a wide range of probable outcomes.

7-9 Doubling the number of resources will not necessarily halve the time taken on a project. This is an
example of:

a) Marginal analysis
b) Pareto rule
c) Parkinson's law
d) Law of diminishing returns

Answer: D – The law of diminishing returns states that the incremental return from adding resources
will reduce as we go on adding resources

7-10 Opportunity cost is associated with:

a) Project selection – when one project is selected over another

b) Selecting one project and taking it through completion
c) Careful and detailed estimating of project benefits
d) Definitive estimating to realize project profits

Answer: A – Generally, opportunity cost is experienced when funding has been assigned to a specific
project and a more desirable project opportunity develops. The greater opportunity is missed due to the
commitment of capital resources to a previously selected project. The best alternative is not chosen.

7-11 You have allocated the project costs over the life cycle of the project. The main output of this
process is a (an):

a) Project schedule
b) Cost control plan
c) Time-phased budget
d) Estimate At Completion

Answer: C – The allocation of the aggregated project cost across the project life cycle is referred to as
the time phased budget. Refer to page 209 PMBOK ® Guide, 5th edition. Estimate at Completion is a
forecast of the final project budget based on current performance. The cost control plan provides a
method to manage cost changes and identify cost variances. The project schedule displays project
activity duration over time and provides an estimate of the total duration of the project life cycle.

24
7-12 Earned value management is a tool and technique that can be used in:

a) Cost baseline development

b) Controlling costs
c) Parametric estimating
d) Cost budgeting

Answer: B – Earned value analysis provides a means to determine cost and schedule variances. Refer to
page 215 PMBOK ® Guide, 5th edition.

7-13 You are reviewing an earned value report and observe that the CPI is 1.2 and the SPI is 1. You will
report to your sponsor that the project is:

a) Right on plan according to schedule and budget baselines

b) Ahead of schedule and over budget
c) On schedule and under budget
d) Not enough information to determine the project condition

Answer: C – A CPI greater than 1 indicates that the project is performing under budget. An SPI that
equals 1 indicates that the project is performing at planned levels (on schedule).

7-14 Your earned value analysis report is due. Project information indicates the following: EV =
150,000, PV = 140,000, AC = 160,000. You will report to your project sponsor that the project is:

a) The project is ahead of schedule and under budget

b) The project is ahead of schedule and over budget
c) The project is behind schedule and over budget
d) The project is behind schedule and under budget

Answer: B – Earned value greater than planned value indicates the project is ahead of schedule. Actual
cost greater than earned value indicates the project is over budget. Refer to page 218 PMBOK ® Guide,
5th edition.

7-15 As projects progress through their lifecycles, a graph of project cost expenditures will follow a
characteristic “S” shape. Typically the information provided in this type of graph indicates that:

a) Projects run in “cycles”

b) Problems often occur near the beginning and the end of projects
c) Projects inherently are prone to experiencing “ups and downs”
d) Project costs start at low levels, rapidly increase, plateau and then decline

Answer: D – The typical project lifecycle begins with low cost and staffing. As the project progresses,
costs increase. The project will reach a point when maximum resources are applied and then resources
will be systematically released as the project reaches closure. Refer to page 40 PMBOK ® Guide, 5th
edition.

25
7-16 If the cumulative CPI falls below the baseline plan, all future work must be performed at:

a) The TCPI to achieve the planned BAC

b) Below the TCPI to achieve the planned BAC
c) The planned CPI to achieve the planned BAC
d) The planned ETC to achieve the planned BAC

Answer: A – The TCPI is the level of performance that must be achieved if the CPI falls below 1 and the
project BAC must be met. Refer to page 221 PMBOK ® Guide, 5th edition.

7-17 The average cost of a 6 year project is estimated to be $6 million per year and the estimated total
profit is expected to be $12 million. The annual ROI for this project is:

a) 33%
b) 0%
c) 50%
d) 25%

Answer: A – ROI = Average profit/ average cost x 100

The average profit is 12 million / 6 or 2 million per year. 2million / 6 million = 33%

7-18 Generally, Earned Value Management is a technique used for measuring variance on:

a) Small, short duration projects

b) Large, complex projects
c) Only projects external to an organization
d) Only Government projects

Answer: B – Earned value management is generally associated with large, long term projects. Earned
value management provides a means to determine project performance at any point in the project life
cycle and also provides an opportunity to forecast the possible outcome of the project in terms of cost
and schedule.

26
 Lesson 8: Project Quality Management
8-1 A product that is produced at a high level of quality but does not include many of the features of
similar products is referred to as:

a) Inaccurate
b) Imprecise
c) Low grade
d) Non-conforming

Answer: C – Products that are produced at an acceptable level of quality and meet the desired
requirements of the customer but have limited functionality and features are referred to as low grade.
Refer to page 228 of the PMBOK ® Guide, 5th edition.

8-2 Quality planning involves documenting how the project will demonstrate compliance in meeting
requirements and should be performed:

a) In parallel with the other planning processes

b) During the initial phase of the project
c) After the work breakdown structure has been developed
d) By the organization prior to the approval of the project charter

Answer: A – Quality management is integrated with many other project planning processes especially
cost and time management. Initiation and work breakdown structure development are included in other
planning processes. Refer to page 231 PMBOK ® Guide, 5th edition.

8-3 To ensure that a product has been properly prepared for safe use, which of the following should
be used by the inspector operating the product?

a) Check list
b) Quality control plan
c) Cause and effect process
d) Work breakdown structure

Answer: A – A quality control plan should be utilized during development of the product. A cause and
effect diagram is used to determine the root cause of a problem. The work breakdown structure is a key
element of the planning process and assist in defining the work of the project. Checklists minimize the
omission of important steps and operating errors.

8-4 Your team is analyzing defects and attempting to isolate the root cause of a problem. Two
variables have been isolated through analysis of the data that is available. There is a concern that one
of the two variables is compounding the problem by causing an effect on the other. Which of the
following tools or techniques will assist in identifying the relationship between variables?

a) Flow chart

27
b) Pareto diagram
c) Scatter diagram
d) Run chart

Answer: C – The scatter diagram is used to determine correlation between two sets of data. Refer to
page 238 PMBOK ® Guide, 5th edition.

8-5 A classification according to technical characteristics for items having the same functional use is:

a) Grade
b) Quality
c) Accuracy
d) Precision

Answer: A – Grade is a classification according to technical characteristics.

8-6 All of the following are tools and techniques used in Control Quality except:

a) Pareto diagram
b) Quality metrics
c) Control charts
d) Scatter diagram

Answer: B – Metrics are an output of Plan Quality and an input to Perform Quality Assurance and
Perform Quality Control. Refer to pages 236 and 249, PMBOK ® Guide, 5th edition.

8-7 You are managing a project and have discovered during a walk through inspection that a large
amount of scrap material has been generated by a team of newly hired workers. The scrap material is
an example of:

a) Internal failure
b) External failure
c) Cost of conformance
d) Appraisal costs

Answer: A – Internal failure results in defects, repairs, scrap and rework. External failure is associated
with quality issues experience by the customer. Cost of conformance refers to the cost incurred to
ensure compliance. Appraisal costs are included in the cost of conformance.

8-8 You have been asked to identify the primary reasons for the high percentage of product returns
your company is experiencing. Which of the following tools will most effectively assist you in further
identifying the reasons for the failures?

a) Pareto chart
b) Fishbone or Ishikawa diagram

28
c) Scatter Diagram
d) Attribute sampling

Answer: B – The fishbone diagram is also referred to as a root cause analysis tool. Pareto diagrams
display the frequency of occurrence of identified problems. Scatter diagrams indicate a relationship
between sets of data. Attribute sampling identifies deliverables that have failed to meet requirements.

8-9 The total cost of all efforts including prevention, appraisal and defect repair to achieve product or
service quality is known as:

a) The Quality Plan

b) Cost of quality
c) Cost baseline
d) Total Quality Management

Answer: B – The quality plan defines the approach to managing quality and may include costs that will
include in the project budget. The cost baseline is the final approved project budget. Total quality
management is an approach to manage quality within an organization. Cost of quality includes all costs
associated with preventing and correcting quality problems. Refer to page 235 PMBOK ® Guide, 5th
edition.

8-10 A project team is inspecting specific outputs based on defined criteria and rejecting the defective
outputs. Which process group is the team working on?

a) Execution
b) Planning
c) Monitoring and Controlling
d) Closing

Answer: C – Inspection is part of quality control, which falls under monitoring and controlling process
group.

8-11 You have contracted a team of experts to define the right mix of ingredients that will produce the
desired product, ensuring optimization of the process, while reducing the sensitivity of the product
performance. Which of the following techniques is being used?

a) Statistical sampling
b) Brainstorming
c) Nominal group technique
d) Design of experiments

Answer: D – Design of experiments (Taguchi method) utilizes a process to determine the best mix of
variables or ingredients to produce the desired result. Statistical sampling is performed after products
have been produced. Brainstorming and Nominal Group technique are tools and techniques associated
with defining requirements or identifying problems. Refer to Page 239 PMBOK ® Guide, 5th edition.

29
8-12 You have developed a graphical display of process results gathered over time and have used the
information to determine that the process is not performing within expected parameters. You have
identified eight consecutive data points that are above the process average. This is an indication of
________________.
a) A trend
b) Process out of control
c) A random cause
d) An alpha risk

Answer: B – A run is a set of data points displayed above or below the process average on a control
chart. Generally, seven or more consecutive points above or below the process average but with the
upper or lower control limits indicate process is out of control. A trend is a set of data points moving in a
specific positive or negative direction. A random cause is considered normal and expected when
analyzing processes and will result in some variation from the process average. An alpha risk is the
associated with product sampling.

8-13 Inspections are utilized by the project manager to assess the quality of deliverables produced
during the project life cycle. The costs incurred during the inspection process are associated with:

a) Prevention costs
b) Cost of non-conformance
c) Cost benefit analysis
d) Appraisal costs

Answer: D – Appraisal costs are associated with the cost of conformance and include inspections and
reviews.

8-14 Monitoring specific project results to determine if they comply with relevant quality standards is:

a) Quality control
b) Quality assurance
c) Quality planning
d) Earned Value Management

Answer: A – Quality control is utilized to monitor and record results during execution of quality
activities. Refer to page 248 PMBOK ® Guide, 5th edition.

8-15 Fitness for use and the legal aspects of quality are key items emphasized by:

a) Crosby
b) Juran
c) Kerzner
d) Heerkens

30
Answer: B – Joseph Juran emphasized continuous improvement, safety, and fitness for use. This means
the product should perform as expected in terms of functionality and should be safe for use by the
customer.

8-16 You have gathered information about product defects through analysis and have compiled a list
of defects that have been repeating over a period of time. You notice that some of the defects are
appearing more frequently than others. You want to address the defects that occur most often. Which
tool would you select to display and prioritize the frequency of defects?

a) Pareto diagram
b) Run chart
c) Control chart
d) Scatter diagram

Answer: A – A Pareto diagram is used to display errors or problems in the order of frequency of
occurrence. A Run chart is a type of control chart. Scatter diagrams are used to determine if a
relationship between exits between different sets of data.

8-17 "You are performing root cause analysis to figure out the reason behind a problem that was
discovered during testing. Which process are you performing?"

a) Perform Quality Assurance

b) Inspection
c) Process analysis
d) Control Quality

Answer: D – Using a fishbone diagram for root cause analysis is a tool or technique within the process of
Control Quality. Perform Quality Assurance is about verifying compliance with quality policies and
procedures. Process analysis is a tool and technique included within Perform Quality Assurance. Refer to
page,243 PMBOK ® Guide, 5th edition.

8-18 All of the following are tools and techniques in the Control Quality process except:

a) Cause and effect diagram

b) Histogram
c) Expert Judgment
d) Run chart

Answer: C – Expert judgment is not listed as a tool and technique for any of the Quality Management
processes. Refer to page 249 PMBOK ® Guide, 5th edition.

8-19 As the project manager for the Step-Fast Personal exercise product you contract with a subject
matter expert to determine if the project activities comply with organizational and project policies
and procedures. The SME is specifically interested in identifying gaps and shortcomings in your
processes. You have initiated which of the following?

31
a) Quality plan review
b) Develop quality control measurements
c) Prevention process
d) Quality audit

Answer: D – A quality audit is a review to determine if project activities comply with organizational
policies and procedures. Refer to page 247, PMBOK ® Guide, 5th edition.

8-20 Comparing actual or planned project practices to those of other projects to generate ideas for
improvement is known as:

a) Benchmarking
b) Benefit/cost analysis
c) Flowcharting
d) Pareto diagram

Answer: A – Benchmarking is used to compare planned project practices with established best practices
to generate improvement ideas and as a basis for reviewing performance. Benefit/Cost analysis
determines if a project is worth accepting and implementing. Flow charting displays a process. Pareto
diagrams display problems or errors. Refer to page 239, PMBOK ® Guide, 5th edition.

Lesson 9: Project Human Resource Management

9-1 A project manager has the least amount of authority in the_________ organizational structure.

a) Matrix
b) Strong Matrix
c) Projectized
d) Functional

Answer: D – In the functional organizational structure, priorities are established by the functional
manager. Projects are considered to be less important than functional work. Refer to page 22, PMBOK®
Guide, 5th edition.

9-2 Choose the right sequence of stages during team formation:

a) Forming, Storming, Developing, Performing

b) Forming, Norming, Performing, Storming
c) Forming, Performing, Norming, Storming
d) Forming, Storming, Norming, Performing

32
Answer: D - The team normally goes through these stages of development. Forming - team gets formed,
Storming - Disagreements start to emerge, Norming - They learn to reconcile and work as a unit,
Performing - They start delivering results

9-3 Project managers must develop skills to ensure that work is completed and deliverables are
produced. This means developing an understanding of formal and informal structures of all
organizations involved in the project, plus an understanding of power and politics. Understanding all
of these elements will assist in improving the project manager’s:

a) Formal reporting process

b) Upward communication
c) Influencing skills
d) Writing style

Answer: C – The understanding of power and politics enables the project manager to develop the
appropriate approaches and techniques to gain trust and influence project stakeholders. Influencing
skills will affect the formal reporting process, upward communication, and writing style.

9-4 A project manager realizes that more IT system administrators are urgently needed to manage the
IT systems on a project. Who is responsible for providing these resources?

a) The head of the IT department

b) The project manager
c) HR department
d) Senior management

Answer: A – In the absence of other information, you have to assume that this is a functional or matrix
organization and in such an organization the resources belong to functions.

9-5 In the balanced organization matrix, the project manager generally shares authority with or has
relatively the same authority as the:

a) Sponsor
b) Customer
c) Functional manager
d) Executive staff

Answer: C – In a balanced organization matrix, the authority of the project manager and the authority of
the functional manager are basically equal which may result in some conflict especially when resource
assignments are being delegated. Refer to Page 22, PMBOK ® Guide, 5th edition.

9-6 A project manager's authority is lowest in:

a) Projectized
b) Strong matrix
c) Weak matrix

33
d) Balanced matrix

Answer: C – Among the given options, the project manager's authority is lowest in a weak matrix
organization.

9-7 You have just completed negotiations to acquire additional resources for your project. During the
negotiations there was considerable conflict about which resources would be provided by the
functional group. A solution was reached in which you were able to obtain most of the resources you
needed, but you had to agree to give up some of those resources at an earlier date than you had
planned. This conflict was resolved using which type of conflict handling?

a) Forcing
b) Collaboration
c) Compromise
d) Smoothing

Answer: C – Compromise. In this form of conflict management the parties involved agree to give up
something to gain something. This is referred to as a win/lose and lose/win situation. Forcing involves
authority and a one sided decision. Smoothing or accommodating refers to discussions that are focused
only on what each side is in agreement with or in congruence. Collaboration results in a win/win
situation for all parties.

9-8 You have just joined an informal group of people who meet to discuss new trends and issues in
project management. The satisfaction that you gain from associating with that group is most closely
aligned with:

a) The first level of Maslow’s hierarchy of needs

b) The 5th level of Maslow’s hierarchy of needs
c) The 3rd level of Maslow’s hierarchy of needs
d) Herzberg’s Hygiene Theory

Answer: C – The third level of Maslow’s Hierarchy of Needs is the need for social connections or
belonging. Herzberg differentiated between factors that may cause dissatisfaction and conditions or
situations that would motivate people.

9-9 Which tool is used to specify the role played by the team members on various activities of a
project?

a) A resource pool description

b) A responsibility assignment matrix
c) A work package
d) A cost account code

Answer: B – The responsibility assignment matrix specifies who is playing what role for various activities.
Work packages are elements of the work breakdown structure. Cost accounts are associated with work

34
packages. Resource pools describe resource skills and availability. Refer to page 262 PMBOK ® Guide, 5th
edition.

9-10 The project manager is likely to be most successful in developing a strong and supportive high
performing team in which structure?

a) Projectized
b) Strong matrix
c) Balanced matrix
d) Functional

Answer: A – In the projectized structure the project manager has direct control of the project team and
the team is dedicated to the project. The project manager has the ability to establish more effective and
meaningful work relationships with the team members.

9-11 Collective bargaining agreements are an example of a (an) ____________ during organizational
planning.

a) Assumption
b) Constraint
c) Pre-determined project team selection
d) Expected staff assignment

Answer: B – Collective bargaining is associated with unions and generally there will be specific
conditions and restricts that may constrain some actions or prevent the use of certain approaches or
procedures.

9-12 You have decided that your best approach to keep your team working effectively is to monitor
their performance very closely and to carefully analyze their work output. This style of management is
referred to as:

a) Theory Y
b) Hygienic motivation
c) Theory Z
d) Theory X

Answer: D – Theory X (Douglas McGregor) managers believe that people must be closely supervised in
ensure that work is completed. Theory Y managers utilize a participative approach. Theory Z (Ouchi)
refers to a concept that worker collectively support higher level organizational goals. Hygienic
motivation is a fabricated term.

9-13 All of the following are tools and techniques for team development except:

a) Reward and recognition

b) Collocation

35
c) Acquisition
d) Training

Answer: C – Acquisition is a tool or technique in the process Acquire Project Team

9-14 Referring to the Tuckman Model, the greatest level of conflict in the phases of team building is
most likely to appear in the____________ phase.

a) Forming
b) Adjourning
c) Mourning
d) Storming

Answer: D – Storming follows the Forming stage and generally includes a significant amount of conflict
as team members discuss and identify areas or disagreement. Refer to page 276 PMBOK ® Guide, 5th
edition.

9-15 You are reviewing previous work experience, personal interests and personal characteristics of a
potentially available group of people and preparing to negotiate for the resources you need. You are
engaged in the process of:

a) Organizational Planning
b) Acquire Project Team
c) Team development
d) Pre-assignment

Answer: B – Acquire Project Team is the process of determining resource requirements, determining
availability of resources and acquiring resources through negotiation or appropriate organizational
processes. Refer to page 267 PMBOK ® Guide, 5th edition.

9-16 A project manager has the greatest amount of authority in the_________ organizational
structure:

a) Strong Matrix
b) Projectized
c) Functional
d) Departmentalized

Answer: B – In the projectized structure the project manager is provided with nearly full authority to
manage the project and the project resources.

9-17 The project manager and a functional manager cannot reach agreement about the assignment of
resources for a project. The functional manager insists that the resources are not available due to
other priorities. In this case the conflict will require the assistance of the___________ to reach a
solution.

36
a) Customer
b) Project Sponsor
c) A new project manager
d) Contractor

Answer: B – Generally project conflicts should be resolved at the lowest levels or authority whenever
possible. In some cases conflict requires the involvement of the project sponsor or executive especially
when there is an impasse regarding resource assignments. Customer and contractors would not, in most
cases become involved in internal resource management disputes.

9-18 The motivational theory in which the manager thinks he/she needs to watch the employees
every minute is called:
a) Theory X
b) Theory Y
c) Theory Z
d) Hygiene Theory

Answer: A - Theory X. Mcgregor's Theory X suggests that workers need to be watched every minute as
they will not deliver results on their own.

9-19 The project manager of a project that you have been observing appears to remain distant from
his team and often places one of his team members in charge for days at a time. This style of
management is generally considered to be:

a) Motivational
b) Participatory
c) Laissez Fair
d) Conciliatory

Answer: C – A manager with a “hands-off” attitude toward the project work and the team is considered
“Laissez Fair.”

9-20 A project manager is relying on personal charisma and charm for getting the project work done.
What form of authority is being used?

a) Coercive
b) Referent
c) Formal
d) Penalty

Answer: B – Referent authority is the power that comes from personal charm and charisma. It has many
meanings but it is generally referred to as power derived from a perceived connection with people of
higher levels of authority. Coercive power is a form of penalty power. Formal power is associated with
position of rank.

37
 Lesson 10: Project Communications Management
10-1 The sender–receiver model is designed to assist project managers and team members improve
their communication skills by emphasizing:

a) The need for the project manager to engage in downward communication

b) The importance of horizontal communications during project execution
c) Potential communications barriers and the importance of feedback loops
d) The need to communicate information verbally

Answer: C – The communications model emphasizes awareness about developing the appropriate
message to be delivered, the potentials barriers that may be encountered and the importance of a
feedback loop to improve delivery and understanding of a message.

10-2 You have been asked to provide a report about the cost and schedule variances that also indicate
forecast for actuals at the end of the project. Which report will help you to get this information?

a) Progress report
b) Earned Value Analysis report
c) Jeopardy report
d) Status report

Answer: B – Earned value analysis report. It provides information about cost and schedule variances and
also includes the forecast for the total budget.

10-3 There are 15 people in a team, an addition of one person was made. How many communication
channels are present in the team now?

a) 16
b) 105
c) 120
d) 56

Answer: C - 16 * 15/2

10-4 As a project manager for a new and highly complex project, when is it important for you to
develop your communications plan?

a) During execution
b) At the earliest stages of the project
c) Upon completion of the project plan
d) Evenly throughout each project phase

38
Answer: B – Communications planning is including in the planning process which is generally completed
before execution. Updates to the project plan, including the communications plan, will occur during the
entire project life cycle. Refer to page 290 PMBOK ® Guide, 5th edition.

10-5 Project resources should be expended only on communicating information that:

a) Contributes to project success or where a lack of communication can lead to failure.

b) Originates from the sponsor or the project management office
c) Has been generated internally by the organization’s executive team
d) Is developed by the project team

Answer: A – Communications requirements analysis determines the information needs of the

stakeholders and identifies information that is most critical to success or failure. Refer to page 291,
PMBOK ® Guide, 5th edition.

10-6 Which of the following roles of the Project Manager best explains the fact that project managers
spend 90% of their time on communication?

a) Servant Leader
b) Integrator
c) Single point of contact
d) Customer management

Answer: B The project manager is an integrator -in the sense that he integrates the output of all the
processes and channels them in the direction of meeting the project's requirements. This is the primary
driver for communications.

10-7 The collecting, storing, analysis and distribution of project information is accomplished most
effectively by using:

a) Information management systems

b) The communications management plan
c) The scope statement
d) The project change control plan

Answer: A – Information management systems refers to the facilities, procedures and processes that are
used to collect, store, and distribute information.

10-8 During project execution, the project manager is required to submit several reports that will
communicate information about the project. Describing the project conditions at the present moment
in relationship to schedule and other metrics is found in the:

a) Status report
b) Progress report
c) Project Forecast

39
d) Quality report

Answer: A – The project status report is included in Report Performance outputs. Status reports address
the current condition of a project including risks, and issues. Progress reports refer to work that has
been completed during a reporting period. Forecasts refer to future scheduled work.

10-9 A project team has 10 members. An eleventh member has just been added. How many
communication channels does the team have?

a) 11
b) 55
c) 45
d) 355

Answer: B - Number of communication channels = n ( n - 1)/2; i.e. 11 * 10/2 = 55

10-10 The cost performance index (CPI) is used to indicate:

a) The sum of individual earned value budgets

b) Cost efficiency
c) The variance between EV and PV
d) The variance between actual cost and budgeted cost

Answer: B – CPI is a calculation associated with Earned Value Analysis that indicates the efficiency with
which project monetary resources are expended. Refer to page 219. PMBOK ® Guide, 5th edition.

10-11 Your project currently has ten people assigned to the project team including yourself. At the
end of the month you will be adding three additional team members to your project. What is the
change in the number of communications channels after you add the new team members?

a) 13
b) 45
c) 33
d) 78

Answer: C – Use the formula: # of Channels = N*(N-1) / 2

= 10(10-1)/ 2 = 45
= 13(13-1)/ 2 = 78
78 -45 = 33
(Note, in similar questions you may have to consider that the project manager is not included in the
actual count of team members and may have to be added to the count to determine the number of
channels. Example if you have a team of 10, the project manager would be added making the count 11
for calculating the number of channels.)

40
10-12 In the communications model the sender transmits information to the receiver. Communication
is most effective between sender and receiver when the _________ between the sender and receiver
overlaps.

a) Area of responsibility
b) Personality screen
c) Region of experience
d) Perception screen

Answer: C – Areas of common interest and experience will contribute to the effectiveness of the
communications process. Areas of responsibility or function may create communications barriers.
Personality and perception screens may distort the message.

10-13 Which of the following is NOT a best practice for project meetings?

a) Send the agenda in advance

b) Note the minutes of the meeting and follow up
c) Summarize the outcome at the end of the meeting
d) Get the widest possible audience

Answer: D-The audience should be tailored by who is interested and capable of contributing to the
meeting. Not necessarily inviting the largest number of people.

10-14 In the communication process, the basic communications model includes all of the following
except:

a) Noise
b) Medium
c) Urgency
d) Message

Answer: C – Urgency is not included in the basic communications model but should be considered when
determining the method of communications to be used. Refer to page 294, PMBOK ® Guide, 5th edition.

10-15 Which of the following is NOT an output of the Manage communications process?

a) Communication technology
b) Project communications
c) Project management plan updates
d) Project documents updates

Answer: A - Communications technology is a tool and technique and not the output of the manage
communications process.

41
10-16 Which of the following does NOT represent "noise"?

a) Distance
b) Cultural differences
c) Body language
d) Accent

Answer: C - Noise is anything that causes disruption in the message being transmitted and affects the
interpretation of the message correctly.

10-17 Which of the following is most tightly linked to the Plan Communications Management process?

a) Project Performance Reports

b) Reporting systems
c) Interpersonal skills
d) Enterprise environmental factors

Answer: D – Enterprise environmental factors are a key input to the plan communications process. Refer
to page 289, PMBOK ® Guide, 5th edition. Reporting systems is a tool or technique within the Report
Performance process. Interpersonal skills are associated with the Manage Stakeholder Expectations
process. Project performance reports are an output of the Report Performance Process.

42
 Lesson 11: Project Risk Management
11-1 All of the following are inputs to the process of Plan Risk Management except:

a) Project Charter
b) Project Management Plan
c) Organizational Process Assets
d) Risk Register

Answer: D – The risk register is an output of the Identify Risks process. Refer to page 313 PMBOK ®
Guide, 5th edition.

11-2 Outputs from Control Risks include all of the following except:

a) Change requests
b) Project documents
c) Risk register
d) Organizational process assets updates

Answer: C – Risk audits are considered to be a tool or technique in the Monitor and Control Risk
process. Refer to page 349, PMBOK ® Guide, 5th edition, Risk Management Overview.

11-3 You are managing a project and have a major decision to make about a change in the plan. You
decide to contact several subject matter experts to obtain their opinions before making a decision.
Each expert is unaware of the participation by any of the other experts you have contacted. The
process being used is:

a) Nominal group technique

b) Delphi technique
c) Brainstorming
d) SWOT analysis

Answer: B – The Delphi technique utilizes input from subject matter experts who remain anonymous to
other experts involved in specific research or problem resolution. Refer to page 324 PMBOK ® Guide, 5th
edition and to page 108.

11-4 You have just completed an analysis of project risks and have prioritized them using a probability
and impact matrix. The approach you used to prioritize the risks is:

a) Qualitative analysis
b) Quantitative analysis
c) Sensitivity analysis
d) Earned value analysis

43
Answer: A – Qualitative risk analysis utilizes the experience of subject matter experts, functional
managers, best practices, and previous project records. It is a rapid and low cost approach to risk
analysis. The Probability/Impact matrix used the knowledge and familiarity of the project team and
subject matter experts to determine likelihood and impact of a project risk event. Refer to page 327,
PMBOK ® Guide, 5th edition.

11-5 Defining _____________ will provide a structure for systematically identifying risks to a
consistent level of detail during the project planning process. The areas defined in this process should
reflect common sources of risk for the industry or application area.

a) Assumptions
b) Constraints
c) The product description
d) Risk categories

Answer: D – Assumptions are information items that should be verified. They are not generally
considered to be based on factual data. Constraints are limitations that should be considered when
developing project plans. The product description provides details about the complexity of the product
to be delivered. Risk categories assist is detailed risk identification and may be utilized with a Risk
Breakdown Structure (RBS). Refer to page 332, PMBOK ® Guide, 5th edition.

11-6 All of the following are tools and techniques for risk identification except:

a) Monte Carlo simulation

b) Interviewing
c) SWOT analysis
d) Delphi technique

Answer: A – Monte Carlo simulation is associated with Quantitative Risk Analysis and uses iterative
simulations to determine project outcomes. Refer to page 319, PMBOK ® Guide, 5th edition.

11-7 A team implemented planned responses for some of the identified risks, but some risks
remained. What are these risks called?

a) Risk events
b) Risk triggers
c) Primary risks
d) Residual risks

Answer: D – The risks that remain after implementing the risk responses are called residual risks.

11-8 The Ishikawa or fishbone diagram is used to display:

a) System flows
b) Predecessors and successor tasks

44
c) Cause and effects
d) Casual influences and relationships between activities

Answer: C – The cause and effect diagram is also known as a fishbone or Ishikawa diagram (after its
developer Kaoru Ishikawa). Refer to page 325 and 236, PMBOK ® Guide, 5th edition. System flows are
associated with flow charts. Network diagrams display predecessor and successor relationships.

11-9 The enterprise environmental factors that can influence the “Identify Risk process” include all of
the following except:

a) Assumptions analysis
b) Risk attitudes
c) Industry studies
d) Commercial data bases

Answer: A – Assumptions analysis is associated with the tools and techniques of risk identification.

11-10 Your team is using a probability impact matrix. The scales on each axis of the matrix are labeled
Very High, High, Moderate, Low and Very Low. Which process is your team performing?

a) A cardinal scale
b) An ordinal scale
c) SWOT analysis
d) Quantitative risk analysis

Answer: D – Perform quantitative risk analysis. Explanation to the process is: In quantitative risk
analysis, the team tries to quantify the probability and impact to the extent it can.

11-11 The two dimensions of risk used to determine expected value are:

a) Consequence and contingencies

b) Probability and assumptions analysis
c) Probability and consequence
d) Probability and data precision

Answer: C – Risk ratings are determined by the product of probability and impact (or consequence)
when using qualitative analysis and to determine expected monetary value when utilizing a decision tree
(quantitative analysis). Refer to page 318, PMBOK ® Guide, 5th edition.

11-12 Your team is using a model that translates the uncertainties specified at a detailed level into
their potential impact on project objectives at the level of the whole project. The technique being
used is:

a) Modeling and Simulation

b) Data precision analysis

45
c) Decision tree analysis
d) Quantitative trends

Answer: A – The use of modeling and simulations such as a Monte Carlo simulation generate
information through iterations. Project information at the activity level is chosen at random during the
process and produces data that illustrates the likelihood of achieving specific cost or schedule targets.
Refer to page 336, PMBOK ® Guide, 5th edition.

11-13 You believe the project’s product design effort would be a major challenge to the team’s
abilities and you do not have the tools or material to manage it effectively. You decide to seek a
supplier who specializes in the specific technical area. You sign a fixed-price contract to execute this
piece of the project work. This is an example of:

a) Risk avoidance
b) Risk transfer
c) Risk mitigation
d) Risk acceptance

Answer: B – Transferring risk does not eliminate the risk. It shifts the risk to a more qualified entity or to
a third party. Liability for the risk is accepted by the entity or third party at an agreed upon cost. Risk
avoidance refers to risks that should be eliminated by changing strategy. Mitigation is associated with
reduction of probability and or impact. Acceptance indicates that the risk is well with the capabilities of
the project team or key stakeholders.

11-14 Your team has utilized all of the appropriate tools and techniques for responding to identified
project risks and has discovered that some risks have been reduced in impact but remain a potential
threat. These risks require further monitoring and are referred to as:

a) Secondary risks
b) Primary risks
c) Cumulative risks
d) Residual risks

Answer: D – Residual risks are included in the outputs of the Plan Risk Responses process and are
expected to remain as threats. Their probability and impact have been reduced through mitigation.
Primary risks are included in the initial risk identification process are generally most obvious. Secondary
risks are those risks that result from the decisions about how to manage primary risks. Cumulative risk is
a combination or collective expected value of the effect of multiple risks.

11-15 All of the following are tools and techniques for Control Risks except:

a) Reserve Analysis
b) Project risk audits
c) Technical performance measurements
d) Exploitation

46
Answer: D – Exploit is a strategy for opportunities under the tools and techniques of the Plan Risk
Responses process. It is associated with managing opportunity or risks that may have a positive impact
on a project. Refer to page 349. PMBOK ® Guide, 5th edition.

11-16 Project risk is typically characterized by what three elements:

a) Severity of impact, duration of impact and cost of impact

b) Identification, type of risk category and probability of impact
c) Risk, probability, and impact
d) Occurrence, frequency and cost

Answer: C – A risk event is the actual occurrence of the risk. Example – equipment failure. Risk
probability is the likelihood that a risk event may occur. Impact refers to the consequence of the
occurrence of the risk event in terms of cost, time, scope, etc.

11-17 Purchasing insurance is considered an example of risk:

a) Mitigation
b) Transfer
c) Acceptance
d) Avoidance

Answer: B – Transfer generally involves the shifting of a risk from one party to another. It does not
illuminate or reduce the risk. Insurance is a common form of transfer of risk. Refer to page 344, PMBOK
® Guide, 5th edition.

11-18 You are the project manager assigned to a critical project, which requires that you handle
project risk intentionally and methodically, so you have assembled only the project team. They have
identified 32 potential project risks, determined what would trigger the risks, rated and ranked each
risk using a risk rating matrix. You have also reviewed and verified all documented assumptions from
the project team and verified the sources of data used in the process of identifying and rating the
risks. You are continuing to move through the risk management process. What have you forgotten to
do?

a) Conduct a Monte Carlo simulation

b) Determine which risks are transferable
c) Determine the overall riskiness of the project
d) Involve other stakeholders

Answer: D – The risk management process requires input from all key stakeholders including the project
team. Use of a stakeholder register assists in the proper identification of stakeholders and in obtaining
their input. Refer to page 319, PMBOK ® Guide, 5th edition.

47
11-19 A project manager is faced with a product design risk issue. It has been determined that the
materials used to house a critical component of the product are subject to significant corrosion as a
result of exposure to the typical work environment. The project team has decided to modify the
design using very expensive corrosion-resistant materials in this component, which will basically
eliminate the risk. The technique used by the team is:

a) Risk avoidance
b) Risk acceptance
c) Risk transference
d) Risk deflection

Answer: A – Risk avoidance is a technique that is used when a change to the plan eliminates a risk or
threat entirely. Risks can be avoided through effective and thorough requirements management and
communication or the use of subject matter experts.

11-20 Using the following information and a normal distribution curve, what is the probability that the
project will be completed in 64 days?

Optimistic time is 48 days. Pessimistic time is 72 days. Most likely time is 60 days
a) 16%
b) 84%
c) 50%
d) 100%

Answer: B – To Determine the probability of completing in 64 days, the following steps are required:
1. Determine the weighted average using the formula {Optimistic + 4(Most Likely) + Pessimistic}/6.
2. Determine the standard deviation using the formula (Pessimistic – Optimistic) / 6.

In the normal distribution curve there is a 68% probability that the outcome will be within 1 standard
deviation from the mean. There is a 95% probability that the result will fall within 2 standard deviations
from the mean and a 99.73% probability that the result will fall within 3 standard deviations from the
mean. If the mean is at the 50% point and there is a 68% probability of the result falling within plus or
minus one standard deviation of the mean, then the probability of 1 standard deviation is divided by 2.
The result is 34. Adding 34 to 50% = 84%. Subtracting 34 from 50% = 16%. The Standard deviation in this
example is 4. The mean is 60. 60 + 4 = 64 or one standard deviation from the mean. 50% + 34 = 84%.

48
 Lesson 12: Project Procurement Management
12-1 When you decide to give up your rights under contract to expedite an activity by circumventing a
process you have decided to:

a) Enter into contract default

b) Terminate the contract
c) Execute a waiver
d) Submit an informal change request

Answer: C – A waiver is a voluntary relinquishment of a right or an entitlement.

12-2 The tools and techniques of Control Procurements include all of the following except:

a) Performance reporting
b) Payment systems
c) Inspections and audits
d) Change requests

Answer: D – Change requests are generally an output of a process.

12-3 The process that ensures that each party meets their contractual obligations and that their legal
rights are protected is:

a) Control procurements
b) Contract payment systems
c) Claims administration
d) Contract change control

Answer: A – Contract payment systems, claims administration, and contract change control are all
included in the Administer procurements process.

12-4 Ending a contract before all contractual objectives have been reached due to a buyers decision to
change business direction is an example of:

a) Breach of contract
b) Contract close out
c) Termination for convenience
d) Letter of intent

Answer: C – Termination for convenience is a contract clause that permits the buyer close a contract at
any time for any reason. Generally there will be specific conditions associated with the execution of this
clause. Breach of contract refers to a failure to deliver a bargained for and agreed upon contractual
condition.

49
12-5 As the buyer during the contract negotiation process, you are interested in a contract that would
have the least amount of risk to your organization. Which of the following contracts would be
preferred to meet your risk-averse needs?

a) Firm Fixed Price

b) Cost Plus Percentage of Cost
c) Cost Plus Incentive Fee
d) Cost Plus Fixed Fee

Answer: A – The Firm Fixed Price or Lump Sum contract places the responsibility to deal with the risk of
a cost overrun with the seller. Cost plus contracts shift the cost risks to the buyer.

12-6 The buyer has negotiated a cost plus incentive fee contract with the seller. The contract has a
target cost $300,000, a target fee of $40,000, a sharing ratio of 80/20, a maximum fee of $60,000 and
a minimum fee of $10,000. If the actual cost of the project is $380,000 how much will the buyer pay as
a fee to the seller?

a) $56,000
b) $104,000
c) $30,000
d) $24,000

Answer: D –
Target cost = 300,000
Target fee = 40,000
Sharing ratio = 80/20 which means the seller assumes 20% of the cost overrun or 20% of -80,000 = -
16,000.
Target fee = 40,000 -16,000 = 24,000
The cost plus incentive fee contract shares the cost savings but could also result in reduced fees to the
seller if a cost savings is not achieved.

12-7 You are involved in finalizing contract negotiations. The definitive contract has not yet been
signed and may take an additional two weeks but it is critical to start several work packages within
the three days’ work to avoid schedule problems later. You should utilize a:

a) Verbal agreement to get started

b) Letter of intent or letter contract
c) A project charter
d) A statement of work update

Answer: B – A letter of intent is an agreement to begin work and release some funding to avoid
potentially serious schedule delays to meet a negotiated delivery date while final approvals of the
definitive contract are obtained.

50
12-8 A contract can be described as:

a) An informal agreement between two parties

b) A mutually binding agreement involving an offer and an acceptance
c) A type of project scope statement
d) A document approved by the sponsor defining project manager authority

Answer: B – A contract is a negotiated agreement that is considered to be for a legal purpose and
includes the legal obligations of the seller to deliver the agreed upon products or services. Contracts
include a consideration or payment for services.

12-9 Buyers may wish to review the qualifications of potential sellers before they actually meet with
them. This process is known as:

a) Obtaining independent estimates

b) Screening
c) A weighting system
d) Contract negotiation

Answer: B – Prior to reviewing detailed proposals a buyer may review the qualifications of sellers who
have indicated an interest to bid. Pre-screening of qualifications will ensure that negotiations are
focused on sellers who can perform the required work. A weighting system is generally utilized to score
qualified sellers after proposals have been submitted.

12-10 As the project manager for a new project you have been given the responsibility to provide all
potential contractors with the information they need to determine if they would like to continue with
the contracting process. To accomplish this you may want to schedule a:

a) Project stakeholder meeting

b) A bidder’s conference
c) A make or buy analysis conference
d) A project kickoff meeting

Answer: B – The Bidder’s conference provides an opportunity for the buyer to provide all potential
sellers with information to allow them to determine if they should continue with the proposal process.

12-11 All of the following are examples of procurement documents except:

a) Request for Information

b) Request for Proposal
c) Project Scope Statement
d) Request for Quote

Answer: C – The project scope statement is generally developed after the Statement of work and
Contract has been reviewed and approved.

51
12-12 A cost reimbursable contract introduces greater risk to the:

a) Buyer
b) Seller
c) Project team
d) Functional managers

Answer: A – In a cost reimbursable contract the buyer generally does not have finalized requirements.
The buyer has higher cost risk, since the seller has their costs covered.

12-13 The seller is protected from liabilities and penalties when a project is impacted by a natural
disaster through the:

a) Liquidated damages clause

b) Penalty clause
c) Force Majeure clause
d) Statement of work

Answer: C – The Force Majeure clause is intended to protect the seller from any liabilities resulting in
natural disasters. Example of a force majeure clause in a contract: “No Party shall be liable for any
failure to perform its obligations where such failure is as a result of Acts of Nature (including fire, flood,
earthquake, storm, hurricane or other natural disaster)”. Penalty clauses and Liquidated damages are
associated with a failure to meet a contractual obligation.

12-14 A high level description of the scope issued by the buyer, specifying the work expected to be
completed by the seller is called:

a) Statements of work
b) Acceptance criteria
c) Considerations
d) Teaming agreements

Answer: A – Statements of work (SoW) is a high level description of work that the buyer issues to enable
the seller develop an understanding of the scope.

12-15 The legal contractual relationship that exists between a buyer and a seller after the contract is
signed is known as:

a) Privity
b) Obligation
c) Bilateral agreement
d) Legally bonded relationship

52
Answer: A – Privity of contract is a relationship that exists only between the parties to the contract,
most commonly a contract that provides goods or services (a contract of sale). A bilateral agreement is a
binding contract between the two parties that have agreed to mutually acceptable terms.

12-16 In a cost reimbursable contract, the risk of cost escalation is borne by the:

a) Buyer
b) Seller
c) Project manager
d) Shared between seller & buyer

Answer: A – In a cost reimbursable contract, the seller is guaranteed to be reimbursed for every item of
cost, so the risk of cost escalation primarily lies with the buyer.

12-17 A cost-plus-incentive-fee (CPIF) contract has an estimated cost of $150,000 with a

predetermined fee of $15,000 and a share ratio of 80/20. The actual cost of the project is $130,000.
What is the total fee that will be awarded to the seller?

a) $31,000
b) $19,000
c) $15,000
d) None of the above

Answer: B –
Target cost = 150,000
Actual cost = 130,000
Savings = 20,000
Share to the seller 20% of 20,000 = 4000
15,000 + 4000 = 19,000
Total project cost for the buyer = 130,000 + 19,000 = 149,000

12-18 Under which type of contract does the seller accept all liability for poor workmanship,
engineering errors and consequential damages?

a) Incentive fee
b) Fixed price
c) Cost plus
d) Cost plus fixed fee

Answer: B – Fixed price. The Fixed price or lump-sum contract places the risk on the seller. The seller will
generally include a contingency in the contract to assist in minimizing the risk of reduced profits.

12-19 Contractual language does not preclude the possibility of misunderstandings and situations that
could adversely affect project progress. Therefore, it is considered a best practice to have a ______
committee established as a means of removing the obstacles and managing conflicts.

53
a) Top management
b) Disputes resolution
c) Steering
d) Engagement

Answer: B – Generally the process for resolving contractual disputes is described in the contract itself
and usually includes designated representatives from each party involved who are authorized to resolve
contract issues. Refer to page 384, PMBOK ® Guide, 5th edition – Claims administration.

12-20 Which of the following contract types does not encourage the seller to control costs and, as a
result, places the greatest risk on the buyer?

a) Cost exclusive
b) Cost Plus Fixed Fee
c) Cost Plus Incentive Fee
d) Cost Plus Percentage of Cost

Answer: D – The cost-plus-percentage-of-cost or CPPC contract transfers all cost to the buyer and any
increase in costs will result in an increase in the fee to the seller. It also incentivizes the seller to be
inefficient. This places significant risk with the buyer and requires close cost management.

54
 Lesson 13: Project Stakeholder Management
13-1 Project information has been distributed according to the communications plan. Some project
deliverables have been changed and 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 other stakeholders received notification of the change. What
should the project manager do?

a) Inform the stakeholder of the date when the change was approved
b) Review the communications plan with the stakeholder and explain 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 publish changes

Answer: C – In this case the communications plan and the communications requirements analysis may
not have included all Key stakeholders. Informing the stakeholder of the date of the change does not
resolve the situation and it may occur again. The existing communications plan may not be complete
and explaining stakeholder responsibility without ensuring the process has been agreed upon could
result in conflict. Addressing a communications issue during steering committee meeting may assist will
not resolve a problem until the communications plan is reviewed and updated as needed.

13-2 During stakeholder analysis the project manager and team may use many different models to
classify stakeholders. The model that helps to analyze a stakeholder’s ability to impose his or her will
or power and influence the need for immediate attention from the project team along with the
legitimacy of the stakeholder’s involvement is the:

a) Power / interest grid

b) RAM
c) Salience model
d) Stakeholder registers

Answer: C – The salience model addresses stakeholder power, urgency and legitimate involvement in a
project. The Power and interest grid assists in determining the level of influence and interest a
stakeholder may have on the planning and outcome of the project. The RAM, Responsibility Assignment
Matrix, connects project stakeholders with work breakdown structure components. The stakeholder
register is an output of stakeholder analysis. Refer to page 262, PMBOK ® Guide, 5th edition.

13-3 Which of the following may NOT be a stakeholder to a project?

a) Project Manager
b) Project Team
c) Everybody in the customer’s organization
d) Suppliers to the project

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Answer : C - Each and every person in the customer organization may not necessarily be a stakeholder.
There may be members of the organization who are not connected with the project at all.

13-4 Stakeholder management involves all of the following EXCEPT:

a) Identifying the stakeholders

b) Keeping all stakeholders happy
c) Analyzing stakeholder expectations
d) Managing stakeholder engagement

Answer: B - Stakeholder management involves processes required to identify stakeholders, analyze their
expectations and to develop appropriate strategies to engage them. It does not necessarily mean
keeping everybody happy (which may not even be possible).

13-5 Which of the following should you be most concerned about, during stakeholder analysis?

a) Their interest in the project

b) Their influence on the project
c) Both A and B
d) Neither A nor B

Answer: C - The stakeholder can be interested in a project or be in a position to influence the project. As
such, both are important for the project to understand.

13-6 What is the best way to manage stakeholders which are low on power and interest?

a) Monitor them
b) No need to worry about them
c) Treat all stakeholders equal
d) Keep them informed

Answer: A - The strategy for stakeholders who are low on the power-interest grid is “Monitor”.

13-7 Which of the following is a tool to assess the current and desired state of engagement of a
stakeholder on the project?

a) Stakeholder registers
b) Stakeholder management plan
c) Stakeholder engagement assessment matrix
d) Stakeholder issue log

Answer: C - Stakeholder engagement assessment matrix, which is a tool and technique of the Plan
stakeholder management process, is a tool to assess the engagement levels of the stakeholders on a
project.

13-8 Which of the following is an input to the plan stakeholder management process?

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a) Stakeholder registers
b) Stakeholder management plan
c) Stakeholder engagement assessment matrix
d) Impact/Power grid

Answer: A - Stakeholder register is an input to the plan stakeholder management process.

13-9 Which conflict resolution technique is most likely to result in a permanent resolution?

a) Compromise
b) Negotiation
c) Confrontation
d) Smoothing

Answer: C - Confrontation is most likely to result in a permanent resolution. All the others involve both
parties giving something up.

13-10 All of the following is true about critical path activities EXCEPT:

a) They have zero float

b) Any delay in these will delay the project
c) It is the shortest possible path from start to finish
d) There may be more than one critical path on a project

Answer: C - Critical path is the longest path from start to finish.

13-11 An important stakeholder in a project is at an “unaware” state at present, i.e. he does not know
what is going on in a project. You reckon that his support could be very important. Which of the
following is the BEST way to get him to a “supportive” state?

a) Send him regular reports about the project and its benefits
b) Assign some work or review activity to him
c) Send him tickets to his favorite opera show
d) Give topmost priority to the issues that he has raised

Answer: B - Involving the stakeholders in the project work is a good way to get them to support the
project. Simply sending them reports seems a passive way of engaging.

13-12 Which of the following is a tool and technique used in manage stakeholder engagements
process?

a) Communication management plan

b) Change log
c) Issue log
d) Inter-personal skills

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Answer: D - Inter-personal skills is an important technique used in the manage stakeholder
engagements process.

13-13 A project manager is reviewing the stakeholder management plan and communications
management plan and sending appropriate information to the stakeholders. She sets up meetings
with the stakeholders and ensures that their expectations are being realized. She makes sure that any
issues that get raised are addressed promptly as far as possible. Which process in stakeholder
management is being worked on here?

a) Plan stakeholder management

b) Manage stakeholder engagements
c) Control stakeholder engagements
d) Close stakeholder engagements

Answer: B - These are all activities typical of managing stakeholder engagements.

13-14 One of the important inputs to the Control stakeholder engagements is:

a) Change request
b) Issue log
c) Information management system
d) Work performance information

Answer: B - Issue log is an input to the control stakeholder engagements process.

13-15 During the execution of a construction project, excavation activities unearth some artifacts that
seem to have some archaeological importance. What should the project manager do?

a) Ignore the findings and continue work as scheduled

b) Inform senior management and continue work as scheduled
c) Stop excavation work and call up the archaeological department to quickly research the findings
d) Raise a change request

Answer: C - A project manager needs to take cognizance of the significance of the findings and must
consult the experts before proceeding further. Activities other than excavation may continue.

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