PMP Exam Question Bank

1. You are a project manager working on a project to market a new product. The deliverables of the
project have been established, and the project work has begun. A contract to deliver the deliverables
has been signed. The customer who has signed the contract has telephoned you to request additional
work to be done on the project. This work will affect the budget but not the schedule of the project.
This project has a high priority with your company. What should you so next?

a) Do what the customer asks you to do and add the additional requirements to the original contract
b) Refuse the request and send a memo to your management explaining the situation
c) Respond to the customer’s request by explaining the change procedure and asking that he or she
submit a request for change
d) Arrange to meet with the project team to discuss this change

2. You are the project manager for a high visibility project. The margin on this project is low, and it
is extremely important that the cost estimates for the work on the project be accurate. While
reviewing the cost estimates for this project you notice that one of the cost estimates for an element in
the WBS is 10% higher than two previous projects for very similar work. What should you do?

a) Accept the estimate because you trust all of the people on your project team, and they are responsible
for estimates
b) Reduce the estimate and add the additional budget to the management reserve
c) Ask the person responsible for the estimate to explain the difference and bring supporting information
to you
d) Reduce the estimate and add the additional budget to the contingency reserve

3. You are managing a project in a foreign country. In this country there is a normal practice for
business people to exchange gifts when very large contracts, such as the one you are working on, are
signed. The gift is of a greater value than your company’s policy for gift exchange will allow. You
have given a gift of similar value to the customer’s representative already. What should you do?

a. Take the gift

b. Contact your company’s management and seek for assistance
c. Refuse the gift graciously, explaining your company’s policy
d. Ask the customer’s representative to give the gift to your manager.

4. You are the manager of a research group that is developing a new chemical material. You hire a
person from a competing company who has a great deal of expertise in this area. The person
contributes greatly to the progress of your project. During conversation with the person you
determine that many of this person’s ideas were developed by the competing company. What do you
do?

a. Tell the person that he or she should not mention that the ideas came from another company
b. Sign a nondisclosure agreement with this person before he or she leaves your company
c. Accept the new ideas
d. Investigate the employee for security reasons

5. You are managing a project that is in process. A large and unexpected problem occurs that will
cause a delay in the schedule in excess of the contingency schedule for the project. What should you
do?
a. Look at other tasks in the schedule and see which ones should be reduced to allow time for this problem
to be worked
b. Reduce testing on the completed tasks
c. Require mandatory overtime for the project team
d. Speak to the stakeholders about getting additional time and budget for the project

6. You are the project manager for a large project. Some members of the project team have come to
you and asked that they be permitted to work on a flexible schedule. Some of the other team
members feel that it is important that all team members be on site at all times unless they are absent
for business reasons. What should you do?

a. Turn down the request for flexible time schedules

b. Accept the request for flexible time schedules
c. Arrange a meeting of the project team members and allow them to decide
d. Discuss this problem with your manager and act on the results of the meeting

7. You are the project manager for a project that has high visibility. Your manager wants you to
prepare a presentation for him to present at a conference. Most of the material in the presentation
will be facts that are the results of your project. Your manager intends to present the material under
his own name. Your name will not appear. What should you do?

a. Refuse to work on the presentation unless you are listed as a coauthor

b. Do the work as you were told by your manager
c. Present your own presentation
d. Meet with your manager’s manager and discuss the problem

8. You are managing a project and the customer’s engineer visits your facility on an inspection and
general getting acquainted tour. During the tour they make the comment that the parts that are
being designed should be in stainless steel instead of plain steel with enamel. What should you do?

a. Authorize the change in design to your engineers

b. Continue with the present design
c. Speak to the visiting engineers and discuss having an informal meeting between your engineers and the
visiting engineers
d. Ask the visiting engineers to submit a change proposal to the change system

9. Which of the following is the example of a conflict of interest?

a. You are the fourth cousin of a vendor supplying parts to a project in your company
b. You are the owner of a company that is supplying parts to a project that you are managing
c. You receive a gift from a supplier of parts for your project
d. A supplier tells you sensitive information, in confidence, that allows you to select another supplier for
your project

10. You are the project manager for a large project that is completed on time and on budget. The
customer and all of the stakeholders are pleased with the results. As a direct result of the successful
completion of the project, your manager approves a bonus of $25,000 for you. There are fifteen
members of the project team. One of the people in the project team has been a very low contributor
to the project; the other fourteen have all been above standard. What should you do with the money?

a. Keep the money yourself; you deserve it. And the manager gave it to you
b. Divide the money equally among all the team members
c. Ask the team members how they would divide the money
d. Divide the money equally among the team members except for the substandard team member
11. One of the members of your project team comes to you and says that he heard that one of the
suppliers to the project had given a substantial gift to one of the project team members in hopes that
the team member would favor his company with a purchase order. The company was favored with a
purchase order for the parts. What should you do?

a. Talk to the person and get him or her to give back the gift
b. Investigate the matter completely
c. Cancel the purchase order with the supplier
d. Meet with your manager and discuss the problem

12. Decomposing the major deliverables into smaller, more manageable components to provide
better control is called:

a. Scope planning
b. Scope definition
c. Scope baselining
d. Scope verification

13. Any numbering system that is used to monitor project costs by category such as labor, supplies,
or materials, for example, is called
a. Chart of accounts
b. Work breakdown structure
c. Universal accounting standard
d. Standard accounting practices

14. A person who is involved in or may be affected by the activities or anyone who has something to
gain or lose by the activity of the project is called a:

a. Team member
b. Customer
c. Stakeholder
d. Supporter

The following should be used for questions 15 through 17.

A project manager is assigned to a project early in the project lifecycle. One of the things that must be done
is to do a justification for the project. Since very little information is known about the project, the estimates
are considered to be rough estimates. The following table is the project manager’s estimate of the cash flow
that will take place over the next five years.

End of Year Cash Flow In Cash Flow Out

1 0 500,000
2 300,000 90,000
3 400,000 100,000
4 100,000 175,000
5 50,000 35,000

15. What is the payback period for this project?

a. One year
b. Two years
c. Three years
d. Four years

16. What is the net cash flow at the end of five years?
a. $50,000
b. - $50,000
c. $850,000
d. $100,000

17. If the net present value for each of the cash flows were calculated at a 10% interest rate, the net
present value cash flow at the end of five years would be:
a. Greater than the total cash flow without the net present value applied
b. Less than the total cash flow without the net present value applied
c. The same as the total cash flow without the net present value applied
d. Unable to be calculated with the information supplied

18. A group of related projects that are managed in a coordinated way that usually include an
element of ongoing activity is called a:

a. Major project
b. Project office
c. Program
d. Group of projects

19. During the full life cycle of the project, a plot of the project’s expected expenditure will usually
follow a characteristic “S” shape. This indicates that:

a. There is a cyclic nature to all projects

b. Problems will always occur in the execution phase
c. There are high expenditure during closeout
d. The bulk of the project budget will be spent in the execution phase

20. A temporary endeavor undertaken to create a new product or service is called a:

a. New product development

b. Project
c. Program
d. Enterprise

21. A project manager makes a narrative description of the work that must be done for her project.
This is called a:

a. Project plan
b. Control chart
c. Statement of work
d. Project objective

22. An example of scope verification is:

a. Reviewing the performance of an installed software module

b. Managing changes to the project schedule
c. Decomposing the WBS to a work package level
d. Performing a benefit-cost analysis to determine if we should proceed

23. The process of establishing clear and achievable objectives, measuring their achievement, and
adjusting performance in accordance with the results of the measurement is called
a. Strategic planning
b. Contingency planning
c. Detailed planning
d. Management by objectives

24. Configuration management is:

a. Used to ensure that the description of the project product is correct and complete
b. The creation of work breakdown structure
c. The set of procedures developed to ensure that project design criteria are met
d. A mechanism to track budget and schedule variances

25. A project manager is employed by a construction company and is responsible for the furnishing
of the completed building. One of the first things that the project manager for this project should do
is to write a:

a. Work breakdown structure

b. Budget baseline
c. Project charter
d. Project plan

26. A project manager is creating a work breakdown structure for her project. In the work break
down structure, the lowest level of the breakdown for the project manager is called:

a. Activity
b. Task
c. Work package
d. Cost account

27. A project manager is reviewing the scope of the project and the scope baseline of the project. This
includes which of the following?

a. The original project schedule, budget, and scope

b. The original project description and project charter
c. The original scope of the project plus or minus any scope changes
d. The current budget of the project

28. A project manager has just become the manager of a project. The document that recognizes the
existence of the project is called:

a. The statement of work

b. The project assignment
c. The project charter
d. The product description

29. A project manager is reviewing the work breakdown structure for her project. The WBS of the
project represents:

a. All the tangible items that must be delivered to the client

b. All the work that must be completed for the project
c. The work that must be performed by the project team
d. All the activities of the project
30. A manager who manages a group of related projects is called a:
a. Project manager
b. Project expediter
c. Program coordinator
d. Program manager

31. A new project has begun. The project charter has been written and the project manager has been
assigned. The project manager is preparing the work breakdown structure for the project. The WBS
is typically used for:

a. Explaining the scope of the project relevant to the client

b. The basis for organizing and defining the total scope of the project
c. Showing the resource conflicts that exist in the project
d. The logical relationship between tasks in the project

32. During the life of a project, the project will go through several phases – initiating, planning,
execution, and closeout. Which phase of the project is likely to have the greatest amount of its
funding spent?

a. Initiating
b. Planning
c. Executing
d. Closeout

33. During the course of the project it is important that the stakeholders be informed of the progress
of the project. One of the reports that is frequently used is a progress report. Which of the following
is true about progress report?

a. They allow stakeholders to judge the performance of the project according to its plan
b. They are generally considered to be overkill on very small projects
c. They require the use of earned value reports
d. They must be produced by the project manager

34. The coordinated undertaking of interrelated activities directed toward a specific goal that has
finite period of performance is a:

a. Project charter
b. Project
c. Set of project objectives
d. Program

35. The document that is proof of upper management’s commitment to the project and gives the
authority to manage the project to the project manager is called:

a. The project plan

b. The project goals and objectives
c. The project charter
d. The project definition

36. A project manager works in a company favoring the weakest authority for the project manager
the type of organization that holds the project manager to be the weakest is:
a. Projectized organization
b. Strong matrix organization
c. Weak matrix organization
d. Balanced matrix organization

37. A project manager has been asked by the client to meet the promise date of the project. The
project manager analyzes the schedule before promising a date to the customer. The project manager
uses the program evaluation and review technique to evaluate the project schedule. She decides that
based on the PERT calculations she can promise a delivery date of June 30. The expected value of the
project completion date is May 30. If the project manager is willing to accept a 5% probability that
the project will be delivered later than June 30, what is the standard deviation of the duration of the
activities on the critical path? Assume a five-day workweek.

a. Ten days
b. Fifteen days
c. One-half month
d. One month

38. A project is proposed to a customer. Price and schedule for delivery are agreed upon. The work
breakdown structure is agreed to as well. The customer requests that one of the milestones of the
project be completed by a certain date. The project schedule is reviewed, and it is found that the
expected completion date for this milestone is considerably earlier that the date requested by the
customer. The date for this milestone is which of the following?

a. Consideration
b. Summary activity
c. Constraint
d. Suggestion

39. A project manager is managing a project. The original scope baseline of the project was budgeted
at $100,000. Since work on the project started, there have been seventeen authorized and approved
changes to the project. The changes have a value of $17,000 and the cost of investigating them prior
to their approval was $2,500. What is the current budget for the project?

a. $100,000
b. $114,500
c. $117,000
d. $119,500

40. In a very large project having a budget of $5 million and a project team of over one hundred
persons, the project manager constructs a work breakdown structure. The project manager will do
the WBS to the detail level of which of the following?

a. Task
b. Activity
c. WBS element
d. Work package

41. A project manager is managing a project that has reached the end of planning phase. The work
scope has been agreed to and definitive cost estimates have been completed for the project. The total
estimated cost of the project is $100,000. It is reasonable to expect that the project will not cost over
which of the following value?
a. $100,000
b. $110,000
c. $125,000
d. $175,000

The following information and questions 42 through 51 refer to Figure 1

A schedule was developed for a project to install windows in an apartment building. The project
is a rush job, and the contractor has agreed to schedule the work on a single shift basis but will
work seven days per week until the job is done. The project is to begin on May 1.

42. What day in May will activity D have for its early finish date?
a. May 13
b. May 6
c. May 7
d. May 5

43. What is the free float for activity F?

a. 6
b. 7
c. 0
d. 8

44. What is the free float for activity D?

a. 6
b. 7
c. 8
d. 0

45. What is the critical path of the project?

a. A B E G H
b. A B D F H
c. A C G H
d. A B E D F H

46. What is the late start for activity F?

a. May 10
b. May 11
c. May 12
d. May 14
47. How long is the project in days?
a. Nineteen
b. Twenty
c. Twenty-one
d. Eighteen

48. What is the early start for activity F?

a. May 7
b. May 6
c. May 5
d. May 4

49. If there is a delay in activity F of six days, what is the effect on the project completion
date?
a. Increases one day
b. No change to project completion date
c. Increases two days
d. Increases three days

50. What is the early finish date for activity A?

a. May 1
b. May 2
c. May 3
d. May 4

51. The above diagram is called:

a. Activity on arrow network diagram
b. Network diagram
c. Precedence diagram
d. Gantt chart

52. If a project manager were to make Thanksgiving dinner, two of the activities that might
be of concern would be roasting the turkey and baking the sweet potatoes. In order to
ensure that these two items will be finished cooking and will come out of the oven at the
same time, what type of relationship should he or she use in the schedule between these
two activities?
a. Finish – finish
b. Start – start
c. Finish – start
d. Start – finish

Questions 53 through 56 refer to the diagram in Figure 2 and the table that follows.
In a project to install concrete sewer lines there is a lot of uncertainty as to how long the durations
should be for the tasks involved. The project manager has determined that the team will use the
PERT technique to evaluate the project’s completion date. The diagram shows nine
activities and the table shows the optimistic, pessimistic, and most likely estimates that the team
has already made.

53. What is the expected value of the number of days to complete the project?
a. 47.3
b. 22.0
c. 32.3
d. 48

54. It is desirable to make an estimate that has a greater than 95% chance of being correct.
Which of the following ranges of time for the impletion of the project best describes this
probability of being correct?

a. 33.31 to 31.36
b. 34.28 to 30.39
c. 14.39 to 33.48
d. 35.25 to 29.42

55. What is the expected value of the duration for activity B?

a. 5.6
b. 2.8
c. 3.0
d. 2.6

56. What is the standard deviation for the duration of activity B?

a. 1.000
b. .133
c. .166
d. 1.413

57. The project manager decided to improve the predicted completion date for the project
by doing in parallel several of the activities that were scheduled to be done in sequence.
This is called:
a. Crashing
b. Increasing priorities
c. Hurry up defense
d. Fast tracking

58. Crashing the schedule means:

a. Making the project shorter by any economic means
b. Running the project team on overtime
c. Doing activities that were in sequence in parallel
d. Getting out of town before the project is in trouble

59. The original schedule (for a project, a work package, or an activity). Plus or minus
approved changes, is called:
a. The working schedule
b. The target schedule
c. The performance schedule
d. The baseline schedule

60. Schedules are used in many ways. In a project to build a bridge the project manager
wants to use a tool that will show the scheduled activities in such a way that it is easy to
see when each activity starts and finishes and which activities are taking place at the
same time. Which tool should be used?
a. PERT chart
b. Gantt chart
c. Precedence diagram
d. GERT chart

61. Which of the following is true?

a. The critical path is the path through the network that has the highest total duration
b. The critical path is the path with the least amount of free float
c. The critical path is the list of activities that have zero float
d. The critical path is the list of activities that have critical risks associated with them

62. Resource leveling will generally:

a. Reduce the time needed to do the project
b. Increase the total time necessary to do all the tasks
c. Reduce the over utilization of resources
d. Reduce resources to the lowest skill that is possible

63. A task was scheduled to use two persons, full time, and take two weeks to complete.
Instead, the project manager was only able to assign one person to this task. At the end of
two weeks, the person assigned to the task was 75% complete. What is the cost
performance index?
a. 0.75
b. 1.5
c. 1.33
d. .5
64. Five tasks are scheduled to be completed in sequence. Each task has a finish-start
relationship with the next task. Each has one day of total float. As of today, tasks one and
two have been completed on schedule. How many days of float remain in the schedule of
these tasks?

a. Two
b. One
c. Zero
d. Four

65. Which of the following is considered to be a simulation technique?

a. PERT analysis
b. GERT analysis
c. Monte Carlo analysis
d. Critical path method

66. The main difference between the two types (ADM, arrow diagramming method,
and PDM, precedence diagramming method) of the critical path method (CPM) of
scheduling is:
a. Placement of the activity on the logic diagram line
b. Arrow diagramming method (ADM) is a deterministic method, whereas the
precedence diagramming method (PDM) is a probabilistic method
c. Precedence diagramming method (PDM) is a deterministic method, whereas the arrow
diagramming method (ADM) is a probabilistic method
d. Precedence diagramming method (PDM) is a more accurate method

67. The project schedule is not used to determine:

a. The start and finish dates of the activities
b. Occasional changes to the activity listing
c. The total float of the activities
d. The project’s budget

68. A project manager wants to make a trip to California by car. The project
manager knows how many miles it will be to drive to California, the current price of
gasoline, and how many miles the car will go on a gallon of gasoline. From this
information he or she can calculate the estimated cost of the gasoline for the trip.
This is a form of what kind of estimating technique?
a. Definitive
b. Analogous
c. Parametric
d. Quantitative

69. A project manager wants to make a trip to California by car. The project
manager knows someone who has made this trip before. This person has a similar
car to the one that the project manager has, and the person has kept good records
on the money spent for fuel on the trip. The distance that the project manager will
travel is 10% farther than the other person’s trip. By multiplying the cost of fuel
reported by the other person by 1.1, the project manager is performing what kind of
estimate?
a. Definitive
b. Analogous
c. Parametric
d. Quantitative

70. To distinguish top-down estimates from bottom-up estimates, it would be correct

to say that the bottom-up estimate would be:
a. Less accurate
b. About equal in accuracy to the top-down estimate
c. More accurate
d. No different to perform than the top-down estimate

71. A project manager and the project team identify several specific risks in a
project. The expected value of these risks is estimated at $10,000. The impact on the
project brought about by these risks is estimated at $40,000. What value should be
entered into the management reserve for these risks?
a. $10,000
b. $40,000
c. $0
d. $25,000

72. A project manager and the project team identify several specific risks in a
project. The expected value of these risks is estimated at $10,000. The impact on the
project brought about by these risks is estimated at $40,000. What value should be
entered into the contingency reserve for these risks?
a. $10,000
b. $40,000
c. $0
d. $25,000

73. What characteristic best describes the cost baseline?

a. Total budget for the project
b. Time-phased budget for the project
c. Total budget for the project including the contingency budget
d. Total budget for the project including the contingency budget and the management
reserve

74. A project is formed to produce a product that will be used for transporting
people. Costs that are associated with the project that occur after the delivery of the
product to the customer are considered to be what kind of cost?
a. Prorated cost
b. Expenses
c. Life cycle cost
d. Expected value
75. A project team receives an approved change request from customer. The team
has previously estimated that the cost to implement this change is $10,000. The
customer has agreed to pay this amount for the additional work. The customer
realizes that there is a 50 percent chance that this change will not work and will
later be removed. What change, if any, should be made in the budget?
a. The project budget should not be increased
b. The project budget should be increased by $15,000
c. The project budget should be increased by $10,000
d. The project budget should be increased by $5,000

76. The act of doing anything that will help to bring future project performance into
line with the project plan is called:
a. Budget update
b. Revised cost estimate
c. Corrective action
d. Contingency planning

77. Which of the following choices would be an acceptable cause for “re-baselining”
a $10 million project?
a. The monthly consumer price index on some of the commodities used on the project has
been identified as having gone up by 1.6%, an increase of 46% over the 1.1% that had
been budgeted
b. The client has authorized a $10,000 addition to the scope of the project
c. The contractor’s company has instituted a quality program on which it has pledged to
spend $1 million during the next year
d. The productivity in the drafting department has been shown to be lower than
anticipated, which has resulted in 1,000 additional hours, a 78% increase over what was
budgeted

78. In terms of earned value reporting, a project is considered complete when:

a. The BAC is equal to the PV
b. The EV is equal to the AC
c. The PV is equal to the AC
d. The BAC is equal to the EV

79. The time-phased cost of the project that reflects the expenditures rather than the
consumption of a resource that will be used to measure and monitor cost
performance on a project is the:
a. Spending plan
b. Cost baseline
c. WBS
d. Schedule

80. A large piece of equipment is needed for the project. It will be retained and used
after the project is completed. The equipment has a value of $500,000, and it has a
scrap value of $50,000 at the end of its useful life of ten years. If the sum of the
years’ digits method of depreciation is used, what is the depreciation that is taken at
the end of the third year?
a. $81,818
b. $90,900
c. $65,250
d. $72,500

81. Using the formula: Present value = S/(1+i)n where i is the interest rate in percentage, n
is the number of periods, and S is the starting amount, the following table is produced:
Periods 10% 12% 14%
1 0.909 0.893 0.877
2 0.826 0.797 0.769
3 0.751 0.712 0.675
4 0.683 0.636 0.592
5 0.621 0.597 0.519

Based on the table, what is the value of an annual income flow of $1,300 each year over
the next three years at 12%?
a. $3122.60
b. $3900.00
c. $3497.00
d. 36%

82. Lifecycle costing:

a. Is a method of including all of the cost associated with the project over its entire life
b. Is a federal government accounting method
c. Is a method of predicting the life of a project
d. Is a method of evaluating projects when they are complete

The following table and description refer to questions 83 through 89.

A project manager is using the earned value reporting method to manage his project. The
following table shows the data collected to date. The plan is for the project to be complete
after eight weeks. The earned value report shows data collected for the first four weeks of
the project.
The figure shown in the table is cumulative.
Week PV AC EV
1 1,000 1,000 1,000
2 3,000 2,000 2,500
3 5,000 5,000 6,000
4 7,000 9,000 7,000
5 13,000
6 17,000
7 19,000
8 20,000

83. What is the cost performance index for week 4?

a. 1.000
b. 0.777
c. 1.286
d. 1.250
84. What is the schedule performance index for week 3?
a. 1.200
b. 0.833
c. 1.000
d. 1.500

85. What is the BAC for the project during week 4?

a. 7,000
b. 9,000
c. 5,000
d. 20,000

86. During week 5 it is found that some of the work that was reported complete in week 2
was considered unacceptable. It will require $500 to fix the problem and make this work
acceptable. The work is scheduled to be done in week 6. No other work is reported to be
complete during week 5. What is the EV for week 5?
a. 7,000
b. 6,500
c. 9,000
d. 5,000

87. What is the cost variance for week 4?

a. 0
b. -2,000
c. 2,000
d. 7,000

88. What is the schedule variance in week 2?

a. 500
b. 1,000
c. -500
d. -1,000

89. What is the EAC at week 4?

a. 20,000
b. 15,555
c. 25,740
d. 17,717

90. The calculation of the EAC assumes that:

a. The schedule performance index will remain the same for the remaining part of the project
b. The cost performance index will remain the same for the remaining part of the project
c. The BAC will be different by the end of the project
d. The EAC will continuously increase for the remaining portion of the project

91. What factors need to be known in order to be able to calculate the ETC?
a. Budget at completion, actual cost, and planned value
b. Budget at completion, earned value, and actual cost
c. Estimate at completion and planned value
d. Estimate at completion and actual cost

92. A construction company is being measured by the earned value reporting method.
During the project one of the tasks, installing ten elm trees, was completed. The planned
value for this task was $4,000, and it was completed two weeks ago. Unfortunately for the
contractor, maple trees should have been planted. The customer insists that maple
trees be planted and that the elm trees be removed. As of this time the elm trees are still in
the ground, but the contractor has agreed to do the work of replacing them. What action
should be taken on the earned value report?
a. Reduce PV by $4,000
b. Reduce AV by $4,000
c. Reduce EV by $4,000
d. Make no changes since the vendor has agreed to fix the problem

93. Learning curve theory emphasize that in producing many goods:

a. Cost decreases as production rates increase
b. Average unit cost decreases as more units are produced
c. Materials become cheaper when they are purchased in bulk
d. Laborers become more productive because of technological advances

94. A project manager is considering applying learning curve theory to his project. The
project involves designing a number of software modules that are very similar. According
to the cost figures that have been collected the first unit required 100 person-hours to
design and test. The second unit required 90 person-hours to design and test. How many
person-hours will the eighth module take to design and test?
a. 90
b. 100
c. 73
d. 172

95. The process required to ensure that the project will satisfy the needs for which it was
undertaken include all activities of the overall management function that determines the
quality policy, objectives, and responsibilities and implements them by means such as
quality planning, quality control, quality assurance, and quality improvement, within the
quality system. This is called:
a. Quality assurance
b. Quality control
c. Quality planning
d. Quality management

96. Decisions as to the types of projects that should be accomplished and strategic plans
as to the quality of the projects that are required should be the decision of which of the
following?
a. Project manager
b. Procurement manager
c. Upper management
d. Stakeholders

97. According to Deming and Juran most of the quality problems that exist are due to a
defect or failure in processes that are controlled by:
a. The project manager
b. The procurement manager
c. Upper management
d. Stakeholders

98. A project manager is managing a large project and must consider the application of a
quality management plan. One of the critical factors in such a plan is the cost of
implementing the plan. The project manager should:
a. Invoice the client for all quality improvements
b. Implement the highest quality possible regardless of cost
c. Implement quality improvements as long as the benefits outweigh the costs
d. Rely on upper management to determine the quality budget

99. A project manager has discovered a problem and is trying to determine the cause. The
process whereby he identifies the variables that have the most influence on the project by
holding all the variables constant and changing one at a time is called:
a. Product correlation
b. Design of an experiment
c. System integration
d. Output processing

100. A control chart is being used to control a manufacturing process. As part of the
control a sample of five parts is taken from the manufacturing process each hour of
operation. Each of the five parts is measured and the dimension is recorded on the work
sheet. The difference between the highest and lowest measured dimension of the five
parts is plotted on the control chart. This is called which of the following values?
a. R
b. R bar
c. X
d. X bar

101. The totality of characteristics of an entity that bear on its ability to satisfy stated or
implied needs is the definition for:
a. Modern quality management
b. Quality assurance
c. Quality
d. Quality control

102. A large project is being worked on by a large company. The client is interested in
knowing how the company will be able to meet the quality needs of the project. In order to
satisfy this request of the client the project manager arranges a meeting between the
client and the:
a. General manager
b. Quality control manager
c. Quality assurance manager
d. Chief designer

103. One of the fundamental tenets of quality management is that quality:

a. Must exceed customer expectation
b. Is planned in and not inspected in
c. Will increase cost
d. Costs must all be passed onto the customer

104. A category or rank given to products that have the same functional use but different
technical characteristics is called the product’s:
a. Quality
b. Functional characteristics
c. Grade
d. Technical characteristics

105. The quality manager of a company wishes to analyze the data that is coming to him in
the form of a list of defects that have occurred in the shipping department. The report
comes with defects listed chronologically as they occurred, the cost of the repair
necessary to correct each defect, the person involved, and a description of the defect.
The manager would like to determine which of the defects should be corrected first
according to the frequency of the defect occurring. He should use which of the following
quality tools?
a. Cause and effect diagram
b. Sampling inspection
c. Pareto diagram
d. Quality critical path

106. A project manager from the quality control area is trying to categorize the number of
mistakes that are made in the area that paints the right front fender of the Mercedes 560
SL. She lists all the possible defects on a sheet of paper and asks the inspector to make a
mark each time one of the listed defects is found. This is an example of using which of the
following quality tools?
a. Scatter diagram
b. Statistical measurements
c. Check sheet
d. Random sampling

107. The project management team should be aware that modern quality management
complements modern project management. For example, both disciplines recognize the
importance of:
a. Completion in the shortest possible time frame
b. Making a maximum profit
c. Having lower cost than competitor
d. Customer satisfaction

108. In a manufacturing process that is being controlled by control charts there are
variables occurring that will affect the process output. Variations in the process that are
considered to be normal process variables are called:
a. Common causes
b. Uncommon causes
c. Special causes
d. Random causes

109. Work results, quality checklists, operational definitions, and the management plan
are:
a. Inputs to quality control
b. Outputs from quality control
c. Inputs to quality assurance
d. Outputs from quality assurance

110. A control chart is being used to control a manufacturing process. As part of the
control a sample of five years is taken from the manufacturing process each hour of
operation. Each of the five parts is measured, and the dimension is recorded on the work
sheet. The average of the five parts is plotted on the control chart. This is called which of
the following values?
a. X
b. X bar
c. Sample average
d. Control average

111. A project manager for the quality department is trying to solve a problem with a
machine that makes die cast aluminum parts that are used in automobiles. These parts are
frequently made with defects. The project manager has decided to hold a meeting to
discuss the process of making the parts. He creates a diagram that has branches that
show the possible causes of the problems. Each of the branches breaks the cause down
into more and more detail. This diagram is called a:
a. Pareto diagram
b. Fishtank diagram
c. Cause and effect diagram
d. Scatter diagram

112. As the manager of the production department where electrical circuits are being made
you observe the inspection station where the completed printed circuit assemblies are
being inspected. In this operation the inspector takes the printed circuit assembly and
puts it into a fixture. The fixture is part of the testing machine that has three digital
readouts. The inspector records the readings on the three digital readouts on his
inspection report. This is an example of:
a. Attribute inspection
b. Variable inspection
c. Sampling inspection
d. Process control

113. One of the important advantages of using control charts in managing a production
operation is that the control chart tells you when to take corrective action on the process
being controlled. Another important result of using control charts is:
a. The control chart identifies the special causes
b. The control chart tells you when you should not take corrective action
c. The control chart shows how much the defects are costing
d. The control chart shows who is responsible for the defects

114. According to the ideas behind modern quality management, quality improvements
should be made:
a. In large steps through detailed study of problems and then implemented as comprehensive
solutions when they are funded
b. In small incremental steps
c. By assignment of permanent quality improvement teams
d. By hiring ISO certification consultants to point out quality deficient areas

115. The Japanese developed a method of modern quality management that relies on
continuing small improvements involving everyone from the top management to the
lowest level worker in the organization. This is called:
a. Kamban
b. Kaizen
c. PDCA
d. Deming cycle

116. The primary benefits of meeting quality requirements are:

a. Cost and delays are reduced, production improves, cost to customers goes up, and profits go
up
b. Cost and delays are reduced, production improves, market share increases, and profits go up
c. Cost and delays are reduced, capital expenditures go down, market share increases, and
profits go up
d. Cost and delays are reduced, production improves, market share increases, and profits are
maintained

117. When the quality management discipline is implemented, the benefits to costs ratio
should at least be:
a. Unable to be evaluated
b. Less than one
c. Of little importance
d. Greater than one

118. The quality management plan provides input to __________________ and addresses
quality control, quality assurance, and quality improvement.
a. The overall project plan
b. The WBS
c. The project scope
d. External stakeholders

119. Project quality assurance:

a. Includes policing the conformance of the project team to specs
b. Provides the project team and stakeholders with standards, by which the project performance
is measured
c. Is a managerial process that defines the organization, design, resources, and objectives of
quality management
d. Provide confidence that the project will satisfy relevant quality standards

120. What are the major advantages of the functional type of organization?
a. Single point of contact for the customer
b. Stable organizational structure
c. Project orientation
d. Multifunctional teams are easy to form

121. The project manager’s leadership style should be matched to the corresponding
developmental level of the project team and should move through successive steps in the
following order:
a. Disciplinary, autocratic, participative
b. Projectized, matrix, functional
c. Team building, team development, responsibility assignment
d. Directing, coaching, supporting, delegating

122. A company has signed a contract for new work that is different from work that it has
done before. The company’s strategic plan calls for much of this kind of work in the future.
It is important that it be able to bring the correct shared resources together to work on
different parts of the contract. The type of organization that this suggest is a:
a. Functional organization
b. Contractor organization
c. Matrix organization
d. Pure project organization

123. The manager of a large corporation wants to sign a contract to build a nuclear power
plant in Botswana several thousand miles away from the home office. The project will take
several years to build and test. What type of organization will be best for managing this
project?
a. Functional organization
b. Contractor organization
c. Matrix organization
d. Pure project organization

124. In matrix management organizations, if the organization maintains many of the

characteristic of the functional organization and the project managers are considered
more like project coordinators or expediters, it is called a:
a. Strong matrix
b. Project team
c. Weak matrix
d. Project office

125. A project manager is selecting team members for her project team. She collects the
resumes and past performance reviews for the potential team members and discusses
each with their functional manager. Which of the following is not a characteristic that the
project manager should use in selecting the team members?
a. Previous experience
b. Personal characteristics
c. Personal interest
d. Salary

126. A project manager is responsible for all that goes on in the project. One of the most
important duties that the project manage can perform is the function of:
a. Risk management
b. Quality management
c. Cost management
d. Integration

127. The organization that is a formalized structure directed toward the support of the
project community within the organization is called:
a. Matrix organization
b. Project office
c. Project team
d. Project management office

128. On a project team one of the team members has a problem collecting on a medical
insurance claim. The team member comes to the project manager and explains the
problem. The problem is the responsibility of the:
a. Project team
b. Project manager
c. Executive manager
d. Human resource department

129. The organization that is a formalized structure where the project teams and the
project managers reside is called:
a. Matrix organization
b. Project office
c. Project team
d. Project management office

130. A conflict arises about the method to solve a difficult design problem. The project
manager is seeking a method of resolving the conflict. In order to achieve the most long
lasting resolution to project conflicts, which of the following approached should be used?
a. Problem solving
b. Compromise
c. Withdrawal
d. Smoothing

131. In a large organization a project expediter is being used to manage a project for an
important client. The position of project expediter would be found in what kind of an
organization?
a. Strong matrix
b. Weak matrix
c. Functional
d. Projectized

132. The project manager of a project is concerned with managing cost and improving
morale and is also concerned about notifying other project managers when individuals
from his project team will be available to work on other projects. This is best addressed in
the project’s:
a. Communications plan
b. Work breakdown structure
c. Staffing plan
d. Project schedule

133. The beginning and the end of the project is defined by:
a. The project plan
b. The project charter
c. The team charter
d. The project lifecycle

134. Herzberg divided motivation factors into two classes: satisfiers and dissatisfiers.
Examples of satisfiers are:
a. Vacation time, assignment of a personal staff assistant
b. Work satisfaction, fringe benefit
c. Plush office space, performance-based salary raise
d. Sense of personal achievement, work satisfaction

135. The skill of listening involves more than just hearing the sounds. One of the
characteristics of a good listener is that he or she:
a. Finishes the speaker’s sentences
b. Take good notes
c. Repeats some of the things said
d. Agrees with the speaker

136. Primary outputs from team development are:

a. Input to performance appraisals
b. High project team morale
c. Reduced project cost
d. Greater customer satisfaction

137. An automotive oil change station was receiving complaints that service took too long.
A coffee machine and television were installed in the waiting room and the complaints
went down. This is an example of:
a. Smith-Carlisle method
b. Creative problem solving
c. Analytical problem solving
d. Decision analysis

138. A project manager is concerned about team building on her project. One of the
mandatory things that she must have in order to have good team building is:
a. Commitment from top level management
b. Co-location of team members
c. Establishment of clear negotiated goals
d. Open discussion of poor individual performance
139. The project manager of a new project wants to get things started in a positive way
with the project team. The project manager wants the team members to get to know one
another, to introduce the project team and the project manager to one another, to discuss
the objectives and goals of the project, and to identify some of the potential problem areas.
This meeting is called a:
a. Project team meeting
b. Project kick-off meeting
c. Goal setting meeting
d. Introduction meeting

140. A project manager is managing a project where there will be a number of persons
working together. She wants to enhance the ability of the team to work together and
perform as a team. One of the things that she can do to maximize the ability of the team to
do this is:
a. Cohabitation
b. Co-location
c. Staffing plan
d. Work breakdown structure

141. A project manager is in need of a solution to a problem. He decides that the best thing
will be to arrange a meeting to solve the problem rather than solve the problem himself or
by having one of the project team members solve it individually. Generally, this will result
in:
a. The group taking more time than one individual
b. The solution to the problem being less accurate
c. The group taking less time than one individual
d. In depends on the specific problem

142. A project manager will manage a large complicated project that is located in a remote
part of Africa. The project will last for five years and will have the product of producing a
nuclear reactor that will generate 900 megawatts of power at start-up. The best kind of
organization for managing this project is:
a. Strong matrix management
b. Weak matrix management
c. Projectized organization
d. Functional organization

143. Project human resources management is divided into which of the following?
a. Organization planning, staff acquisition, and team development
b. Leadership, team building, and negotiation
c. Recruitment, labor relations, and personnel administration
d. Team building, communication, and labor relations

144. A project manager wants to do as much as she can to help in developing her project
team. A key barrier to project team development is which of the following?
a. Strong matrix management structure
b. Major problems that delay the project completion date or budget targets
c. Team members who are accountable to both functional and project managers
d. Formal training plans that cannot be implemented

145. Which of the following media can a communicator use to present information?
a. Visual
b. Audio and visual
c. Tactile
d. Visual, audio, and tactile

146. The three principal interests in maintaining good document control are:
a. Timely communication, collection of performance appraisal data, and assuring proper disposal
of sensitive documents
b. Timely communication, maintain proper approvals, and communication cost control
c. Effective communication, ability to reconstruct why decisions were made, and historical value
d. Security, change management, and procedural documentation

147. A project manager wants to handle communications well in his project. In order to do
this he has chosen to write a communication plan. Of the items listed below, which one is
not part of the communication plan?
a. Collection and filling structure
b. Distribution plan
c. Method for accessing information
d. Project organization structure

148. Which of the following are filters that the receiver uses to filter messages?
a. Language and knowledge
b. Distance
c. Culture and distance
d. Language, distance, culture, and knowledge

149. A project manager has many different ways of communicating. Which of the following
is a good communication tools for the project manager to use?
a. Sending a videotape of the project progress to the client
b. Inputting a task into the project manager’s personal computer
c. Writing notes on a handheld computer
d. Putting the project budget into a spreadsheet

150. The use of brainstorming as a communication technique encourages which of the

following?
a. Team building and convergent thinking
b. Divergent thinking
c. Analytical results
d. Use of the scientific method

151. Which of the following techniques allows for the participants to be anonymous?
a. Brainstorming
b. Nominal group
c. Delphi technique
d. Crawford slip

152. Which of the following is not a standard type of communication?

a. Written
b. Verbal
c. Nonverbal
d. Clairvoyant

153. During a project meeting a disagreement between two members of the project team
began. The disagreement was over a technical detail of the project. The project manager
was in attendance in the meeting. It is important that the conflicting opinion of the two
team members be resolved as quickly as possible. It is even more important that the
difference of opinion be resolve correctly. What should the project manager do?
a. The project manager should make the decision right away to save time and not let the two
disagreeing parties stay in disagreement very long
b. End the meeting and give everyone a few days to cool off
c. Assign someone to find out more factual information about the problem
d. The project manager should suggest a compromise between the two disagreeing team
members

154. In the communication model, communications between the sender and the receiver
often are affected by communications barriers. These include all of the following except:
a. Cultural differences
b. Differences in motivation
c. Educational differences
d. Lack of a communications device

155. A project manager has one member of the project team working on a critical problem.
The person working on the problem verbally communicates to the manager that this
correction to the problem will probably cost $1,000. Which form of communication should
the project manager use to respond to the team member?
a. Written
b. Oral
c. Form letter
d. Formal

156. Who is responsible for communications for the project team?

a. The human resources representative
b. The representative from the management information systems department
c. The project manager
d. The communications department

157. Statements such as “It’s never been done before: or “It will cost a fortune” are
examples of:
a. Feedback
b. Communication blockers
c. Conflict generators
d. Forcing

158. The project manager has a very complex communication to prepare for the program
manager. In order to ensure that the communication will be understood as completely as
possible, what method of communication should be used?
a. Oral
b. Written
c. Nonverbal
d. Oral, written, and nonverbal

159. There are many ways to organize projects. The persons involved with these projects
have several titles that describe their management responsibilities. Which of the following
titles describes a person who has a primary responsibility for communications?
a. Project manager
b. Project manager in a strong matrix environment
c. Project manager in a weak matrix environment
d. Project expediter

160. A project manager is responsible for performance reporting. Which of the following is
not one of the tools and techniques that the project manager can use for performance
reporting?
a. Variance analysis
b. Earned value reports
c. Performance reviews
d. Past project review

161. A project manager discovers that there is a part of the project that contains some risk. His
strategy with this risk is to subcontract the work to an outside supplier by using a firm fixed-price
contract. Which of the following must the project manger do?
a. The project manager should make certain that the project team does not reveal the risk to the supplier
until the contract is signed
b. The project manager should make every effort to make sure that the supplier is made aware of the risk
after the contract is signed
c. The project manager should make sure that the supplier understands the risk before the contract is signed
d. The project manager should assign a member of the project team to monitor the activity of the supplier to
make sure that the supplier deals with the risk properly if it occurs

162. A project manager is faced with making a decision about a risk that the team has identified. The
risk involves the design of a bicycle. It has been found that the neck of the bicycle, where the steering
bearing is located and the two supporting bars of the frame come together, will corrode in a high salt
environment. If this takes place the neck may fail and injure the rider. The project team decides that
the design of the bicycle should be modified by using corrosion resistant materials in the design of the
neck. This will eliminate the risk from consideration. This technique is called:
a. Risk avoidance
b. Risk acceptance
c. Risk rejection
d. Risk deflection

163. A problem occurs in the design of a grocery cart. In this case it is determined that the wheels
will wear out much quicker in areas of heavy snow and ice because the salt will corrode the wheel
bearings. Using sealed bearing wheels will significantly increase cost, and it is determined that the
carts themselves will be rusty and damaged at about the same time the wheel bearings begin to fail.
By injecting the wheel bearings with a high temperature grease the life of the wheel bearings is
increased considerably. The project recommends using the high temperature grease. This is called:
a. Risk acceptance
b. Risk avoidance
c. Risk mitigation
d. Risk deflection

164. The contingency budget will:

a. Reduce the probability of scope changes
b. Reduce the probability of cost overruns
c. Increase the probability of a cost overruns
d. Increase the probability of scope changes

165. A risk has four possible outcomes. Given the following information, what is the expected value of
this risk?
Probability Result of Risk
0.4 -10,000
0.3 -7,500
0.2 -5,000
0.1 +2,500
a. -$20,000
b. -$14,500
c. $7,000
d. -$7,000

166. The project has done its risk analysis. In the process of risk identification the project team has
determined that there are risks that will probably happen that have not been identified or evaluated
except by noting that other projects of this type have historically had a certain amount of risk
discussed in the lessons learned of the project. This project team should set aside money to handle
these risks in which financial category?
a. Risk management fund
b. Contingency budget
c. Management reserve
d. Emergency fund

167. A project manager observes that in one part of the project several activities are being completed
late. All of these activities have several days of free float associated with them. These are early
warnings of the risk that the project will be late in completion.
They are called:
a. Risk triggers
b. Warning messages
c. Risk forecasts
d. Schedule risks

168. The effect of risk on schedule dates for the project creates an array of dates that are possible for
project completion. In a typical project the most likely date for the project will have which of the
following relationships with the expected value for the project completion date?
a. The most likely date will be earlier than the expected value date
b. The most likely date will be later than the expected value date
c. Both dates will have the same likelihood
d. The most likely date and the expected value date will occur at the same time

169. A project manager is reviewing the risks of her project. One of the risks she is reviewing has an
impact of $25,000 and an associated probability of 10%. The risk is associated with an activity that is
the predecessor to seven other activities in the schedule. All eight activities are on the critical path.
The seven other activities have a budget of $75,000. What is the expected value of this risk?
a. $10,000
b. $100,000
c. $25,000
d. $2,500

170. In probability theory, what is the probability that if you roll two dice (cubes with consecutive
numbers 1 to 6 on each of the six faces) you will have at least one 6?
a. 1/3
b. 11/36
c. 1/36
d. 1/6

171. A project manager is looking at the risk associated with the project schedule. Realizing that if
the risks occur the project will be delivered to the stakeholders late, the project manager decides to
consider the risk and promise delivery later than the most likely project completion date. He then
takes the time between the promise date and the most likely completion date and distributes it among
the activities of the project schedule. This creates float in the schedule. This process is called:
a. Schedule delay
b. Critical chain scheduling
c. Buffering
d. Contingency scheduling
172. A project manager wants to give some guidelines to the project team as to how risk events
should be described. Which of the following items would not be appropriate in describing a risk
event?
a. Probability that the risk will occur
b. The cost of the risk should it occur
c. Expected timing of the risk when it is expected to occur
d. The client’s outsourcing method

173. A project manager and her project team are analyzing risk in their project. One of the things
that they might do to help identify potential risks or opportunities would be to review:
a. The project budget
b. The goals and objectives of the project
c. Lessons learned from other similar projects
d. The monetary value of changes for similar projects

174. A project manager holds the first risk meeting of the project team. The client is present at the
meeting. At the meeting several risks are identified and assigned to members of the project team for
evaluation and quantification. The result of the meeting is:
a. Expected value of the risk events
b. Strategies for the risk events
c. A list of potential risk events
d. General statements about risk for the project

175. In the Monte Carlo technique, what is the critically index?

a. The number of days the project will be late divided by the project duration
b. The percent of time a given activity will be on the critical path
c. The percent of time an activity will be late
d. The sum of the duration of the critical path activities divided by the project expected value for duration

176. The management reserve for the project contains:

a. Money to offset missing cost objectives
b. Money to offset missing schedule objectives
c. Money to offset missing cost or schedule objectives
d. Money to handle the effects of known risks in the project

177. A project manager uses the breakeven point to justify his project. He presents this as a
justification for buying a new machine. What risk does the project manager run by using this
technique to justify buying a new machine for his company?
a. Breakeven point will favor buying a cheap, low-quality machine
b. Breakeven point will favor buying a machine that is too expensive for the work required
c. The company may not have the funds to buy the machine in spite of the justification
d. The machine may not be available because the justification method takes a long time to calculate

178. Goldratt’s critical chain theory says that in order to reduce risk in schedules we should:
a. Start activities in the feeder chains as early as possible
b. Start activities in the feeder chains as late as possible
c. Start activities in the critical chains as early as possible
d. Add buffer to the critical chains

179. In managing the risk of the project schedule we are managing the risk that the project will not
be delivered or completed on time. If we assume that the project’s possible completion dates are
normally distributed and we promise the client the most likely of the project’s possible completion
dates, what is the probability that the project will be delivered late?
a. 5%
b. 10%
c. 50%
d. 77%

180. A risk event in a project is something that can have an effect on the project:
a. For the better only, a positive effect
b. For the worse, a negative effect
c. Both better or worse, a positive or negative effect
d. Neither better nor worse, neither a positive nor a negative effect

181. The project team has put together a project plan for a project, and the plan has been
approved by the stakeholders. The customer asks the project manager if the project can
be delivered seven weeks sooner. The customer offers sufficient monetary incentive for
the project manager. The project manager decides to fast track the project. This decision
will:
a. Increase risk
b. Decrease risk
c. Not affect risk
d. Risk change cannot be determined

182. A project team evaluates risk in the project. As an outcome there are some positive
and negative risks that are identified and evaluated. To evaluate the worst case for the
project the project team should evaluate and summarize:
a. All of the risks affecting the project
b. Only the negative risks
c. The negative risks minus the positive risks
d. The positive risks minus the negative risks

183. The Project Management Institute decided to hold its annual meeting in New Orleans,
Louisiana. The conference represents a substantial amount of PMI’s operating budget for
the year. PMI identified a risk of hurricanes during the month of September, when the
conference was to be held. PMI decided to purchase convention insurance to offset the
loss of convention revenue if a hurricane caused cancellation of the conference. This is a
risk management strategy called:
a. Avoidance
b. Deflection or transference
c. Acceptance
d. Mitigation

184. During the project lifecycle, in which part of the lifecycle will risk be the lowest?
a. Initiation
b. Planning
c. Execution
d. Closeout

185. The Monte Carlo technique can be used to:

a. Determine the amount of contingency budget needed for the project
b. Determine the amount of the management reserve
c. Determine the critically index for an activity in the schedule
d. Determine the risk index for a risk in the project

186. A project manager must make a narrative description of the project. This narrative
description covers the items that will be supplied under the contract with the client. It is
called:
a. The project plan
b. The statement of work
c. The exception report
d. The progress report

187. A project manager discovers that there is a part of the project that contains some risk.
His or her strategy with this risk is to subcontract the work to an outside supplier by using
a firm fixed-price contract. Which of the following is true?
a. The supplier will include an allowance for the risk in the contracted price
b. The supplier will lose money on the contract
c. The project manager will have to compensate the supplier if the risk occurs
d. The project manager will assist the supplier with the project team if the risk occurs

188. A project manager discovers that there is a part of the project that contains some risk.
His or her strategy with this risk is to subcontract the work to an outside supplier by using
a firm fixed-price contract. The project manager should:
a. Make certain that the project team does not reveal the risk to the supplier until the contract is
signed
b. Make every effort to make sure that the supplier is made aware of the risk after the contract is
signed
c. Make sure that the supplier understands the risk before the contract is signed
d. Assign a member of the project team to monitor the activity of the supplier to make sure that
the supplier deals with the risk properly is it occurs

189. The project manager is considering contracting some of the work of the project to a
service bureau. The service bureau has been used in the past by this project manager. The
manager has several choices of contracts that can be used to subcontract this work.
Which of the following is not a type of contract that the project manager might choose?
a. Firm fixed price
b. Make or buy
c. Cost plus incentive fee
d. Unit price

190. A project manager is employed by a construction company and is responsible for the
furnishing of the completed building. One of the first things that the project manager for
this project should do is to write a:
a. Work breakdown structure
b. Budget baseline
c. Project charter
d. Project plan

191. A contractor is working on a fixed price contract that calls for a single, lump sum
payment upon satisfactory completion of the contract. About halfway through the contract,
the contractor’s project manager informs the contract administrator that financial
problems are making it difficult for the contractor to pay employees and subcontractors.
The contractor asks for partial payment for work accomplished. Which of
the following actions by the buyer is most likely to cause problems for the projects?
a. Starting to make partial payments to the contractor
b. Making no payments to the contractor
c. Paying for work accomplished to date
d. Negotiating a change to the contract

192. Under a blanket order arrangement, which of the following is correct?

a. The cost of carrying the inventory is borne by the buyer
b. The seller delivers all of the material ordered at one time
c. Payments for all of the material are made at one time
d. At the end of the blanket order, prices are adjusted for the actual amount of material delivered

193. Forward buying will:

a. Decrease storage cost
b. Decrease capital investment
c. Decrease transportation costs
d. Decrease inventory

194. Which of the following would not be a part of the procurement management process?
a. Purchasing
b. Contract negotiations
c. Inspection
d. Marketing

195. The equivalent of cost-reimbursable contracts is frequently termed:

a. Back-charge contracts
b. Fixed-price contracts
c. Progress payment contracts
d. Cost-plus contracts

196. The project team has delivered a deliverable to the customer. The deliverable
contains defects that are easily correctable. There is a good relationship with the
customer and the customer agrees to make the repairs and correct the defects on the item
and invoice supplier for the work that was done. This is considered to be a:
a. Bid cost reduction
b. Payment authorization
c. Back charge
d. Release payment

197. A project manager decides to go out for bids on some of the project work that must
be done as part of the contract to do a project for another customer. The bids are received
and evaluated, and the seller with the lowest bid is selected. The cost of the contract to the
project can further be reduced by what action?
a. Illegal methods
b. Procurement leverage
c. Selecting another seller
d. Contract negotiation

198. A buyer extends a formal invitation that contains a scope of work that seeks a
response that will describe the methodology and results that will be provided to the buyer.
This is called:
a. Invitation to bid
b. Request for information
c. Request for proposal
d. Request for bid

199. A project manager wants to subcontract part of the project. This part of the project is
quite complicated, and there are many ways that the work can be done. What method of
request for seller responses should be used by the project team?
a. Request for bid
b. Request for quotation
c. Request for proposal
d. Request for information
200. The project team is considering whether to purchase a service or do it themselves.
One of the items that should not be considered in their analysis is:
a. The seller’s price
b. The cost and availability of floor space at the team’s facility
c. The seller’s technical staff
d. A competitor’s method of outsourcing

201. During testing, multiple defects were identified in a product. The project manager
overseeing this product's development can best use which tool to help prioritize the
problems?

A. Pareto Diagram

B. Control Chart

C. Variance Analysis

D. Order of Magnitude estimate

202. You are the manager of an aircraft design project. A significant portion of this aircraft
will be designed by a subcontracting firm. How will this affect your communications
management plan?

A. More formal verbal communication will be required.

B. Performance reports will be more detailed.

C. More format written communication will be required.

D. Official communication channels will significantly increase.

203. What officially creates the project?

A. The project initiating document.

B. The kickoff meeting.

C. The project charter.

D. The statement of work.

204. Refer to the table. What is the critical path?

A . Start A B C I Finish

B. Start A B H I Finish

C. Start D E H I Finish

D. Start F G I Finish

205. The Delphi technique is a way to:

A. Analyze performance.

B. Gather expert opinion.

C. Resolve conflict.

D. Estimate durations.

206. The work authorization system makes sure that

A. All the work and only the work gets performed.

B. Work gets performed in the right order and at the right time.

C. Work is done completely and correctly

D. Functional managers are allowed complete control over who is assigned and when.

207. Your team is hard at work on their assigned project tasks when one team member
discovers a risk that was not identified during risk planning. What is the FIRST thing to
do?

A. Halt work on the project.

B. Update the risk management plan.

C. Look for ways to mitigate the risk.

D. Assess the risk.

208. The activity duration estimates should be developed by:

A. The person or team doing the work.

B. The project manager

C. Senior management.

D. The customer.

209. The project plan should be all of the following EXCEPT:

A. A formal document

B. Distributed to stakeholders in accordance with the communications management plan

C. Approved by all project stakeholders.

D. Used to manage project execution.

210. You have been asked to take charge of project planning for a new project, but you
have very little experience in managing projects. What will be the best source of help for
you?

A. Your education.

B. You on-the-job training.

C. Historical information.

D. Your functional manager.

211. The majority of the project budget is expended on"

A. Project plan development

B. Project plan execution

C. Integrated change control

D. Project communication.

212. Corrective action is:

A. Fixing past anomalies

B. Anything done to bring the project's future performance in like with the project management
plan.
C. The responsibility of the change control board

D. An output of project plan execution.

213. Outputs of Direct and Manage Project Execution include:

A. Deliverables and performance reports.

B. Deliverables and corrective action.

C. Deliverables and work performance information

D. Performance reports and requested changes.

214. Your original plan was to construct a building with six stories with each story costing
$150,000. This was to be completed in 4 months. However, the project has not gone as
planned. 2 months into the project, earned value is $400,000. What is the budget at
completion?

A. 450,000

B. 600,000

C. 800,000

D. 900,000

215. Project Integration is primarily the responsibility of"

A. The project team.

B. The project manager.

C. Senior management.

D. The project sponsor.

216. One of your team member has discovered a way to add an extra deliverable to the
project that will have minimal impact on the project schedule and cost. The project cost
performance idex is 1.3 and the schedule performance index is 1.5 The functionality was
not included in the scope. How should you proceed?

A. Conform to the project scope and do not add the deliverable.

B. Deliver the extra work to the customer service since it will not increase their cost.

C. Reject the deliverable because you are behind schedule.

D. Ask senior management for a decision.

217. If a project manager is unsure who has the authority to approve changes in project
scope, she should consult:

A. The customer.

B. The scope statement.

C. The sponsor.

D. the scope management plan.

218. An end user has just requested a minor change to the project that will not impact the
project schedule. How should you, the project manager, respond?

A. Authorize the change quickly to ensure that the schedule can truly remain unaffected.

B. Deny the change to help prevent scope creep.

C. Evaluate the impact of change on the other project constraints.

D. Submit the change request to customer for approval.

219. Which of the following tools is NOT used in initiating a project?

A. Project selection methods.

B. Project management methodology

C. Expert judgement

D. Earned value analysis.

220. You overheard a causal conversation between two team members in which one
confides to the other some problems he is having in completing his part of the project
work. You realize that the work being discussed is on the project's critical path and that
the information you overheard could mean a significant delay for the project. What should
you do?

A. Let the team member know that you heard his conversation and discuss the work problems
with him immediately.

B. Begin analyzing ways to compress the project schedule in anticipation of the potential delay.

C. Ask a third team member to get involved immediately and encourage the two other team
members to come to you with the delay.

D. Ask human resources for help in resolving the problem.

221. The process of Contract Administration falls under which process group

a) Planning
b) Closing
c) Monitoring and Control
d) Executing

222. Sam Consultancy has a large internal project to be initiated. To staff this project, Sam
Consultancy is working with People Consultancy to provide three resources for six months. The
resources will be part of the team managed by Sam Consultancy for six months. Which contract type
should be used by Sam Consultancy?

a) Purchase Order
b) Cost plus Fee
c) Fixed cost
d) Time and Material

223. Sam Consultancy is planning to buy ten desktops for $1500 each from a leading computer store.
Which type of contract will get signed in this case?

a) Purchase Order
b) Cost plus Fee
c) Fixed cost
d) Time and Material

224. Tree Consultancy is getting 200 computers installed from a vendor. The vendor will be paid the
cost involved and a 10% incentive. Which contract will be used in this case?

a) CPPC
b) CPIF
c) CPFF
d) Fixed Cost

225. Alice is a Project Manager. She is coordinating a bidder conference to allow vendors to get
clarification on the work that needs to be performed. Which phase of Project Management is in
progress.

a) Request Seller Process

b) Plan Contracting
c) Select Sellers
d) Contract Administration

226. Process Analysis is a function of:

a) Performance Analysis
b) Quality Metrics
c) Process Improvement Plan
d) Quality Improvement Plan

227. Root Cause Analysis relates to:

a) Process Analysis
b) Quality Audits
c) Quality Control Measurements
d) Performance Measurements

228. Trend Analysis is often performed using:

a) Cause and Effect Diagram
b) Control Charts
c) Pareto Chart
d) Run Chart
e) Scatter Diagram

229. A Pareto diagram can be best described as:

a) Cause and Effect Diagram

b) Scatter Chart
c) Control Chart
d) Histogram

230. A planning phase for an engineering component generated 80 engineering

drawings. The QA team randomly selected 8 drawings for inspection. This exercise
can BEST be described as example of:

a) Inspection
b) Statistical Sampling
c) Flowcharting
d) Control Charting

231. Reserve Analysis a technique NOT used in:

a) Cost Estimating
b) Cost Budgeting
c) Cost Control
d) Estimating Activity Duration

232. A Project with a total funding of $100,000 finished with a BAC value of
$95,000. What term can BEST describe the difference of $5,000?

a) Cost Variance
b) Management Overhead
c) Management Contingency Reserve
d) Schedule Variance

233. Project Cost Management Plan is created as a part of:

a) Develop Project Management Plan process

b) Cost Estimating process
c) Cost Budgeting process
d) Cost Control process

234. A particular project in the domain of civil construction requires that every on-
site worker be insured. Which of the following inputs BEST conveys this
requirement to the Cost Estimation process so that the insurance cost is estimated
and subsequently budgeted:

a) Enterprise Environmental Factor

b) Organizational Process Assets
c) Project Scope Statement
d) Project Management Plan
235. _____________ is not a part of the project cost baseline but is included in the
project budget:

a) Activity Cost Contingency Reserve

b) Management Contingency Reserve
c) Management Overheads
d) Project Management Planing

236. ___________ is not part of the Earned Value calculations.

a) Known Unknowns
b) Unknown Unknowns
c) Project Budget
d) Amount of work completed

237. What is the BEST way to make an accurate forecasting of ETC?

a) Manual Forecasting of cost of remaining work.

b) BAC – EV
c) (BAC – EV)/CPI
d) EAC - AC

238. If the Earned Value is equal to Actual Cost, it means:

a) Project is on budget and on schedule

b) Schedule Variance Index is 1
c) There is no schedule variance
d) There is no cost variance

239. Trend Analysis is BEST described as:

a) Analyzing performance of similar projects over time

b) Examining project performance over time
c) Calculating Earned Value
d) Calculating Cost Variance

240. Which of the following is not done as part of Performance Measurements?

a) Calculating Planned Value

b) Calculating Earned Value
c) Calculating ETC
d) Calculating Cost Variance

241. Jeff always delivers his projects on time and within budget. He believes that his success can be
explained by the fact that he makes all of the project decisions himself and then enforces those
decisions with an iron hand. His management style is best described by

a) Kurt Lewin’s Force Field theory.

b) McGregor’s Theory X.
c) Elizabeth Duffy’s Arousal Theory.
d) McGregor’s Theory Y.

242. One of the following items is not used in assessing the completion of the project scope. Which
one?
a) The product requirements.
b) The project management plan.
c) The project scope statement.
d) The WBS and WBS dictionary.

243. Hard logic is also known as

a) Mandatory dependencies
b) Preferred dependencies
c) External dependencies
d) Discretionary dependencies

244. Contract negotiation is the process

a) of clarifying and developing a mutual agreement on the structure and requirements of the contract.
b) of clarifying and developing a mutual agreement on the responsibilities and authorities that will govern
contract administration.
c) in which parties with different interests reach an acceptable agreement through communication and
compromise.
d) bargaining with the seller concerning resources, information and activities in order to come to terms that
can be incorporated into the final contract.

245. A checklist is

a) an ordered listing of quality items that must be verified before the quality control step is completed.
b) an inspection list that is used when no evidence exists that the quality level of the product being
submitted is better or worse than the specified quality level.
c) a technical list of measured variables or counted data for decision making in a quality process review.
d) a structured tool used to verify that a set of required steps has been performed.

246. Developing the answers to questions such as “Who needs what information”, “What form is
appropriate” and “Who is responsible for its preparation” is part of which process?

a) Communications planning
b) Information distribution
c) Project plan execution
d) Scope planning

247. Questions such as “What products are available in the marketplace” and “What is the current
balance between supply and demand” are related to what input to procurement planning?

a) Availability assessment.
b) Cost/benefit analysis.
c) Market conditions.
d) Competitive fit analysis.

248. Inspections are

a) A statistical sampling and examination.

b) Activities undertaken to determine whether results conform to requirements.
c) Recorded data concerning the results of inspection actions.
d) Performed during the manufacturing or repair cycle to help prevent defects from occurring.

249. Which process in integration management uses inputs from the largest number of other
PMBoK processes?
a) Develop Project Management Plan.
b) Direct and Manage Project Execution.
c) Monitor and Control Project Work.
d) Integrated Change Control.

250. The cost baseline is usually not changed unless

a) The basis for the original cost estimate is found to be false and the project must be re-estimated.
b) Significant cost deviations have been reported and it is desired to have future cost reports be based on
an “as of” date.
c) The revision is the result of an approved scope change.
d) The time baseline is also changed.

251. Qualitative numbers

a) Cannot be measured numerically.

b) Cannot be meaningfully added together.
c) Are ones that are measured by reference to a standard that is external to the system.
d) Are less reliable than quantitative numbers.

252. In estimating the total amount of material resources required for a project you must first
estimate the amount of waste to be expected. You will most likely find this information in which
process input?

a) Resource requirements
b) Historical information
c) Parametric modeling
d) Supporting detail

253. Which of the following statements is not true about stakeholder analysis?

a) A methodical and logical view of the stakeholder’s information needs should be made.
b) Care should be taken to include all information that may be of interest to one or more stakeholders.
c) The analysis should consider methods and technologies suited to the project that will provide the
information needed.
d) The sources needed to meet stakeholder information needs should be identified.

254. The project plan is usually developed by

a) senior management of the performing organization.

b) the customer.
c) the project manager.
d) the project management team.

255. Which of the following is not true about error in project quality management?

a) It is an unavoidable component of all project work.

b) It is more costly than the design and planning work that would be necessary to prevent it.
c) It is a source of learning rather than a basis for disciplinary warnings or actions.
d) It is a reflection of inadequate project planning.

256. Which of the following inputs to contract administration is not based on the seller’s work
deliverables?

a) Reports on what work has been started, is in progress or is finished.

b) Change requests.
c) Reports on cost, schedule and technical performance.
d) Inspection reports.

257. Doing activities in parallel that would normally be done sequentially in order to achieve project
objectives or to deal with resource allocation problems is called

a) Crashing
b) Accelerating
c) Fast Tracking
d) Objectives management

258. Which of the following is usually not considered a goal of portfolio management?

a) To maximize the value of the portfolio by careful examination of candidate projects and exclusion of
those no meeting strategic objectives.
b) To balance the portfolio among incremental and radical investments.
c) To manage the effective and efficient use of resources.
d) To ensure that the relationship between projects in the portfolio clearly reflects strategic objectives.

259. Which of the following is not true about the relationship between the activity definition
processes and the WBS?

a) These processes may identify deliverables missing from the WBS

b) These processes may identify inaccurate descriptions in the WBS
c) These processes may result in WBS changes that require additional scope definition work.
d) The WBS provides the key input to these processes but is not part of any of its outputs.

260. All of the following are true concerning the product description except

a) It is another term for the Statement of Work (SOW).

b) It describes the ultimate end product of the project.
c) It provides important information about any technical issues that are relevant to procurement planning.
d) It is usually included in the Request for Proposal (RFP).

261. What does RDU stand for?

a) Really Dumb User

b) Ready for Download Use
c) Remaining Duration unassisted
d) Remaining Duration

262. Who is responsible for risk identification, risk quantification, risk response
development, risk Monitor and Control?

a) Project Communications Management

b) Project human resource Management
c) Project Procurement Management
d) Project Risk Management

263. Three Point Statistical Estimating Formula Group. Expected Value =

a) (Optimistic + (4 X Most Likely) + Pessimistic ) x 6

b) (Optimistic + (4 X Most Likely) + Pessimistic ) divided by 6
c) (Optimistic + (4 X Most Likely) x Pessimistic ) divided by 6
d) (Optimistic + (4 + Most Likely) + Pessimistic ) divided by 6
264. Two Point Delphi Estimate, The Best and Worst Case effort calculation:

a) Calculate (Best + Worst) / 2

b) Calculate (Best +2 ) / Worst
c) Calculate (2 + Worst) / Best
d) none of the above

265. What does TQM stand for?

a) Time Quality Managed

b) Target Quality Management
c) Total Quality Management
d) Time Quote Management

266. Examples of Projects include:

a) Implementing a new business procedure or process

b) Constructing a building or facility
c) Designing a new transportation vehicle
d) All of the Above

267. Projects are undertaken at all levels of the organization?

a) True
b) False
c) Both True and False
d) Neither true nor false

268. ________ means that every project has a definite beginning and a definite end.

a) Overall
b) Project Chart
c) Temporary
d) Duration

269. The smallest unit of time used in scheduling the project is known as:

a) Calendar Unit
b) Scope unit
c) Time Measurement
d) All of the Above

270. Who should be involved in the project planning phase?

a) The Project Manager.

b) The customer.
c) The Sub-contractors/vendors.
d) The project team members.
e) All of the above.

271. The successful project managers spend most of their time:

a) Planning with their personnel.

b) Planning with top management.
c) Talking with personnel.
d) Studying project results.
272. Cost Plus Percentage of Cost (CPPC) contracts provide:

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

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

a) Customer acceptance.
b) Customer satisfaction.
c) Customer compromise in defining its needs.
d) Exceeding customer requirements through gold plating.

274. Which of the following is the most efficient means of product quality inspection:

a) Acceptance sampling.
b) 100% inspection.
c) Variable lot inspection.
d) A and C.

275. Constructive Team Role includes:

a) Investigates, clarifier and closer.

b) Compromise, blocker and closer.
c) Initiate, encourage and gate keeper.
d) Investigates, recognize and summary.

276. Pareto Analysis, cause and effect diagrams and flow charts are used in quality.

a) Control.
b) Assurances.
c) Planning.
d) Verification.

277. In a multi-cultural environment, it is critical to establish a corporate culture that

facilitates:

a) Problem-solving through different approaches.

b) Learning and communication.
c) Partnerships, strong alliances and joint ventures.
d) Negotiations.

278. A condition which will lead an organization towards conflict is:

a) Conflict of interest.
b) Differentiation in organization
c) Resolved prior conflicts.
d) Both A and B.
e) All of the above.

279. The contemporary view of conflict is that:

a) Conflict is bad.
b) Conflict is caused by trouble makers.
c) Conflict should be avoided.
d) Conflict is often beneficial.
e) A, B and C.

280. In general a project charter covers:

a) Project justification, background, scope, objectives, available resources, organizational responsibilities,

a project schedule, estimates, procurement schedule, and any imitations that top management wants to
apply.
b) Project justification, background, scope, objectives, available resources, organizational responsibilities,
detailed project schedules, estimates, and detailed procurement schedules responsibilities, a project
schedule, and any limitations that top management wants to apply.
c) Project justification, background, scope, objectives, available resources, organizational apply.
d) Project scope, objectives, available resources, responsibilities, a project schedule, estimates,
procurement schedules, and any limitations that top management wants to apply.

70 Incorrect, 210 Correct

Percentage Score – 75%