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1538 Cards in this Set

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198. _________ Contains detailed descriptions of work packages? a. WBS dictionaries b. Scope of work c. Budget estimates d. Cost estimates
Answer: a
1. The relationship between the budgeted actual cost, actual work completed and work planned will determine the
A. Schedule estimate at completion
B. Cost estimate at completion
C. Cost Performance Index
D. Schedule Performance Index
E. both a and b
Answer: A
2. All work packages are complete
A. at EAC time
B. when BAC is equal to EAC
C. when BCWP intersects BCWS
D. when schedule variance is zero
E. c and d
Answer: B
3. Earned value is
A. the base line plan
B. completed work value
C. cost/cost variance
D. percent over or under budget
E. a and b
Answer: B
You could tell Diane was worried about her project. Her folks had been working on the project since Independence Day. Here it was already Halloween and they were just finishing up work that was supposed to have been completed by Labor Day. "Oh dear", she confided to her friend, "Instead of completing by Christmas, at this rate I expect we won't be done until
A. New Year's Day
B. St. Patrick's Day
C. Easter
D. Mother's Day
E. the 4th of July
Answer: E
. Diane was so concerned about her project that she woke up dreaming about it. She thought to herself, "Well, our BCWP is 2, our ACWP is 4 and our BCWS is 6, so that means
A. our productivity was less than planned
B. our cost estimate at completion is 6
C. our CPI and SPI are both positive
D. our cost variance is negative
E. a, c and d
Answer: E
The measurement which best shows the difference between actual work and actual costs is
A. Cost variance
B. Percent over or under
C. Schedule variance
D. CPI
E. this is not a valid measurement
Answer: A
Rework costs ____ times budgeted costs.
A. +75, -25
B. +25, -10
C. 85
D. 10 to 15
E. 25 to 50
Answer: E
. If part of a project's costs will be paid in future years, the best way to determine the value of those costs in today's dollars is
A. estimated project payout
B. return on investment
C. net present value
D. discounted cash flow
E. internal rate of return
Answer: D
. If the ACWP exceeds the BCWP, the cost estimate at completion will
A. increase
B. decrease
C. depend on the BCWS
D. exceed the schedule estimate at completion
E. a and d
Answer: A
. If the BCWS = $1,000,000, the BAC = $2,000,000, the ACWP = $1,500,000, the BCWP = $500,000 and you're halfway through the project after two years, what is the cost estimate at completion?
A. $2,000,000
B. $4,000,000
C. $6,000,000
D. $8,000,000
E. Cannot be determined without the EAC
Answer: C
. Cost management requires a critical look at future expenditures and the controls exercised over those expenditures. The three types of cost estimates through which project expenditures are made are ________.
A. rough order of magnitude, guestimate, and actual
B. traditional, classical, and contemporary
C. order of magnitude, budget, and definitive
D. concept, budget, and design
E. engineering, quoted, and definitive
Answer: C
The cost estimate with the most precise estimate (i.e., the smallest range of error) is the ________ estimate.
A. engineering
B. budget
C. concept
D. definitive
E. contingency
Answer: D
. The cost estimate that has a range for error of minus 10 percent to plus 25 percent is the ________ estimate.
A. budget
B. definitive
C. parametric
D. analogy
E. contingency
Answer: A
There are usually two types of reserves in a project's budget. The ________ reserve is for cost variances from the plan because of inaccurate estimates or pricing and costs overruns, while the ________ is to accommodate costs for project work that were not included in the plan through error or oversight.
A. project; budget overrun allowance
B. engineering; management allowance
C. management; contingency allowance
D. management; mismanagement allowance
E. planned; unplanned work allowance
Answer: C
Feasibility studies are evaluations of both the technical and economic aspects of a potential project. In the economic area, one would look at such items as interest rates, present worth factors, capitalization costs, and ________.
A. human resource skills
B. depreciation costs
C. prospective projects managers
D. implementation of cost controls
E. availability of cost accounting methods
Answer: B
Project financing can be extremely complex and can come from a variety of sources. However, ________ is not a potential source of financing for a project.
A. borrowing money from a bank
B. selling stocks in the project or corporation
C. selling bonds on the project
D. selling lottery tickets on the project
E. leasing or renting existing property to another
Answer: D
Life cycle costing is a concept whereby all costs for a system are computed to determine the total cost of ownership. Life cycle cost categories include ________.
A. purchase, repair, and operation
B. development, procurement, and operation/maintenance
C. procurement, lease, and disposal
D. procurement, operation, and disposal
E. operation, maintenance, and storage
Answer: B
The integration of cost and schedule to provide measures of the project's performance is the earned value system, or contract performance measurement. The baseline for the earned value system is depicted as a slight "S" curve because ________.
A. there are fewer costs at project initiation until the work force is fully staffed
B. there are workers who have not been paid, so the expense is not shown on the chart
C. there are more expenses to get a project started than are required on a normal operating basis
D. this is just a traditional method of plotting the costs and has no relationship to the actual expenditures
E. this approximation has proven to be nearly correct when all costs and expenditures have been accounted for at project completion
Answer: C
The pricing of a project can be extremely complex in the development of valid cost estimates and price quotes from vendors. The tool that facilitates the pricing of a project by a structured decomposition of the total into individual elements of labor, material, and equipment is the ________.
A. project management plan
B. budget
C. responsibility matrix
D. configuration management plan
E. work breakdown structure
Answer: E
In estimating the cost of work, the best source of cost information can be obtained from the ________.
A. customer
B. historical records
C. senior engineers
D. top management
E. independent consultants
Answer: B
Setting up a cost control system requires matching the work packages to the cost accounting system. The direct mapping of the work packages to the accounting is accomplished by establishing a ________.
A. work package cost/price
B. work breakdown structure element
C. cost correlation matrix
D. computer coded bar chart
E. code of accounts
Answer: E
Cost overruns on a project have major impacts on the profitability of operations, but ________ do(es) not necessarily contribute to cost overruns of a project budget.
A. a change in contract scope
B. delays in schedule
C. lack of work force experience
D. integration uncertainty for project elements
E. contractor claims for out-of-scope work
Answer: A
. Suppose the contingency allowance established to cover unforeseen activities of a project has been set at eight percent of the total project cost. The total dollars in the contingency allowance should be ________ as the project nears completion.
A. retained at the remaining dollar level
B. increased to meet unidentified surprises
C. decreased to reduce the accounting work
D. spent to ensure there is no extra money shown in the budget
E. reduced to a percentage of the remaining work
Answer: E
Suppose a contract has been in force for six months and the work is progressing, and then the buyer requests some changes in the design. The changes do not affect completed work but add some new items and subtract some existing items. The cost to the buyer to accomplish these changes is ________.
A. increased by the amount of added work
B. unchanged because the contract is in place
C. decreased because the work has not been started
D. unchanged because the buyer (customer) is always right
E. unknown because the cost of the changed work is not specified
Answer: E
. In the earned values system, the focus is on "cost of work," which is divided into "scheduled" and "performed" work. This is further defined as "budgeted" and "actual" work. The formula "BCWP - BCWS" provides the ________.
A. cost difference
B. schedule variance
C. overrun conditions
D. schedule difference
E. cost variance
Answer: B
Indices can provide an indication of the status of a project. In the earned values system, there are two indices
Cost Performance Index (CPI) and Schedule Performance Index (SPI). The formula for CPI is ________.
A. ACWP/BCWS
B. ACWP/BCWP
C. BCWP/ACWP
D. BCWS/ACWP
E. BCWS/BCWP
Answer: C
Suppose that in the earned value system, the status of the project is reported as BCWS = 100, ACWP = 110, BCWP = 95. The project is now ________.
A. underspent and behind schedule
B. overspent and ahead of schedule
C. underspent and ahead of schedule
D. overspent and behind schedule
E. cannot be determined from available data
Answer: D
. Projects have direct and indirect costs that the project manager must track to ensure the budget is not exceeded. The project manager has the most control over direct costs such as ________.
A. bonuses, fees, and awards
B. labor, materials, and equipment
C. labor, supervision, and fees
D. overhead, G&A, and fees
E. G&A, facilities, and transportation
Answer: B
. A project is being advertised to solicit bidders. The buyer has asked for two types of price first, if payment is made in total upon completion of the project; second, if payment is made 50 percent at the midpoint of completion and 50 percent upon total completion. This is a two-year project that is being priced at $10,000,000 when the cost of money is not included. Assume money is borrowed in two equal increments-at the start of year 1 and year 2. If the interest rate over the two years is eight percent, the total bid under each option (i.e., payment at the end; payment at midpoint) is ________.
A. $11,844,000; $11,412,000
B. $10,400,000; $10,040,000
C. $10,800,000; $10,400,000
D. $11,232,000; $10,832,000
E. $12,484,000; $11,244,000
Answer: D
. The cost of money and cash flow can adversely affect the financial status of the project. One method of encouraging early payment of invoices is to offer a discount for payment within a few days. If an invoice for $10,000 was paid within (x) days (see each possible answer for value of x), the method "two 10, net 30" would provide a savings of ________.
A. $100 (x = 30)
B. $200 (x = 30)
C. $300 (x = 10)
D. $200 (x = 10)
E. cannot be determined from available data
Answer: D
. Project financial audits are used to determine the current status of the financial health of a project, but ________ is/are not an area for financial audit.
A. a project budget system
B. a project computer system
C. a project change control
D. a project status reporting
E. cash-flow projections
Answer: B
A project audit is often a three-step process using different skills to assess the condition of the health of the project. The first audit, or first audit opportunity, is at the ________ phase.
A. start of the planning
B. start of the implementation
C. end of the planning
D. end of the implementation
E. middle of the implementation
Answer: C
The budget for a project is the baseline from which future expenditures are measured. Of the following, ________ do(es) not cause change to the budget baseline during project implementation.
A. change orders to the contract
B. expenditures to buy materials
C. revised cost estimates made in-house
D. changes to subcontractor's scope of work
E. correction to the work breakdown structure to eliminate some tasks
Answer: B
In the earned value system for determining project status, there are several methods of accepting credit for the completion of work. In the most common method, full credit is allowed after the work package is complete. A second method is to allow full credit when 50 percent of the work package is complete to permit the performing contractor (seller) to receive credit for work-in-process. From the seller's point of view, ________.
A. either method is acceptable under an incremental payment schedule contract
B. the credit at 100 percent completion is better for either a lump-sum or incremental payment contract because the accounting is more accurate
C. the credit at 100 percent completion is better because the accounting lags the work-in-process by 30 days in any type of payment schedule
D. the credit at 50 percent completion is better because it improves the cash flow under an incremental payment schedule
E. the credit at 50 percent completion is better because it reduces the billing cycle
Answer: D
Because of the investment or risk associated with a project, the decision may be to ensure a high profitability. When this is the case, senior management should agree on profit ________ of the project.
A. capability at the beginning
B. margin (rate) at the midpoint
C. margin (rate) at the end
D. goals at the beginning
E. goals at the end
Answer: D
Estimating costs for a project is difficult because of the lack of historical cost records, the uncertainty regarding the future state of the economy, and the lack of understanding as to the full scope of work. Successive estimating is one method of accounting for the uncertainty of cost estimating by ________.
A. making three estimates and taking the average
B. continually making estimates as the project progresses
C. also including the range of potential error for an estimated item
D. using two or more cost estimating techniques to arrive at an average cost
E. delaying estimates until all information is acquired
Answer: C
The degree of uncertainty (lack of information) in a project affects the ability of cost estimators to make precise estimates to determine the total cost. One method to resolve the uncertainty is influence diagramming, which is used to evaluate ________.
A. price, net worth, and net present value
B. alternative outcomes, risk factors, and given quantities
C. risk factors, price, and alternatives
D. price, quantities, and time of purchase
E. risk factors, contract type, and project duration
Answer: B
. The most accurate estimates (and the most expensive to produce) are _______.
A. analogous estimates
B. parametric estimates
C. top-down estimates
D. bottom-up estimates
E. function point estimates
Answer: D
The ________ identifies the project elements that costs will be allocated to.
A. work breakdown structure
B. PERT estimates
C. earned value
D. order of magnitude estimate
E. BCWR
Answer: A
The EAC is a forecasting technique based on past project performance. It can be calculated using the formula ________.
A. cumulative actuals + (ETC X CPI)
B. cumulative actuals + new estimate for cost of work remaining
C. cumulative actuals + remaining budget
D. all of the above
E. none of the above
Answer: D
The best way to manage the costs of change requests is to ________.
A. accept them orally
B. allow them to happen in ad hoc fashion
C. impose change unilaterally
D. document and authorize all changes
E. use the earned value system
Answer: D
Materials management is crucial to the success of the project when resources are needed at a specified time and place to ensure continued progress. An assessment of the materials costs should consider not only the cost of purchase but also ________.
A. transportation, deterioration, and storage
B. storage, damage, and deterioration
C. transportation, storage, and shortage
D. transportation, storage, and loss
E. quantities, storage, and damage
Answer: C
. Project financing is critical to large projects where neither the owner (buyer) or contractor (seller) has sufficient funds available to cover the costs incurred during project implementation. In such cases, a third party must provide the necessary capital. The third party evaluates the feasibility of financing the project based on ________.
A. the participants' business reasons for the project
B. the share of ownership to be retained
C. the level of risk the participants are to share
D. the project's anticipated cash flow and tax benefits, if any
E. all of the above
Answer: E
The financing plan for a project should detail the methods of obtaining and dispensing the capital over the full duration of the project. In preparing the plan and considering risk and reward, management should ensure that participants' credit standing is preserved, maximum leverage is used, tax benefits are optimized, flexibility is incorporated into ownership, and ________.
A. additional tax relief is pursued
B. lines of credit are opened
C. accesses to sources of new capital are maintained
D. maximum financing is used
E. late receipt of funds is avoided
Answer: C
. Investors are often used to obtain the necessary financing for major projects, which can transfer the ownership to the investors. The system is then leased back for operation and use. The major advantage for the investors is ________ , and the major advantage for the user of the system is ________.
A. control of a business; low risk for operation and maintenance
B. high internal rate of return; favorable tax write-off
C. favorable tax write-off; new source of funds
D. ownership without risk of operation; favorable tax write-off
E. reduced quality (performance) risk; reduced cost risk
Answer: C
Lending institutions are eager to finance projects that have an excellent potential for being successful and repaying the loans. Timely repayment of the debt depends largely on ________.
A. the willingness of the owners to make payments
B. future cash flows to be generated by the entity
C. the debt-to-liquidity ratio
D. the entity's internal rate of return on operations
E. future ownership and operating cycles
Answer: B
The success of a project is usually considered its ability to meet the objectives established prior to the start of the project. In a more global view, to become a functioning entity the project must have working capital, which consists of ________.
A. cash, inventories, sales, and receivables
B. cash, sales, receipts, and receivables
C. receipts, savings, receivables, and inventories
D. cash, receivables, inventories, and payables
E. sales, receipts, inventories, and stock
Answer: D
. Under any type of contract, the owner (buyer) is always concerned with the cost of a project and the contractor's (seller's) expenditure rates. Although the fixed price contract transfers much of the risk to the contractor, the owner has a lot at risk in terms of meeting his/her objectives. One of the best methods of controlling contractor expenditure rates under any type of contract is to ________.
A. hold back a portion of the payment until all work is completed to the satisfaction of the technical inspectors
B. ensure that only fixed price contracts are awarded and that payment is only upon satisfactory completion of the project
C. have an "owner's representative" monitor and track all expenditures and have power to disapprove any expenditure that is not justified to him/her
D. track and pay the costs of the contract by phases or stages and evaluate the costs at each review/decision point
E. set up a duplicate project accounting system, track all costs, and validate the costs as being the best value for the owner
Answer: D
. The budget for a major project lasting several years is usually prepared to reflect expenditures on an annual basis. The budget is, therefore, compared to expenditures at the end of each accounting cycle (i.e., each year). This poses a potential problem because _________ .
A. the budget will always be greater than the rate of expenditure when delays are encountered in paying the billings
B. the expenditure rate will be viewed optimistically (underspent) and the project manager will attempt to increase expenditures
C. the budget is not representative of the expenditure rate when there is an increase to the scope of work
D. the budget changes too frequently to permit a valid comparison of the plan versus the actual expenditures
E. schedule delays or restructuring of the workload will affect costs during the accounting periods and give false indications of expenditure rates
Answer: E
Project Cost Management includes all of the following functions EXCEPT
A. Resource planning
B. Resource leveling
C. Cost estimating
D. Cost budgeting
E. Cost control
Answer: B
Which of the following choices indicates that your project was 10% under budget?
A. BCWS = 100, BCWP = 110
B. ACWP = 100, BCWP = 110
C. BCWS = 100, ACWP = 110
D. ACWP = 110, BCWP = 100
E. BCWP = 100, BCWS = 110
Answer: B
. Earned value can best be defined as
A. The value of the equipment that has been installed as of the data date
B. The sum of the labor costs, which have been incurred on the project ot date
C. A method of measuring project performance
D. A method of measuring the amount of money that has been spent to date
E. The Actual Cost of Work Performed minus the Budgeted Cost of Work Performed
Answer: C
. The output from resource planning includes
A. Job descriptions
B. Salary schedules
C. The types of resources required
D. Analogous estimating
E. Historical informaiton
Answer: C
. Cost estimates may be expressed in I. Units of currency II. Staff hours III. Staff days
A. I only
B. II only
C. III only
D. I and II only
E. I, II, and III
Answer: E
All of the following are functions of cost control EXCEPT
A. Informing the appropriate project stakeholders of authorized changes in the cost baseline
B. Monitoring cost performance to detect variances from the cost baseline
C. Ensuring that all appropriate changes are recorded accurately in the cost baseline
D. Allocating the overall estimates to individual work packages in order to establisha cost baseline
E. Preventing incorrect, inappropriate, or unauthorized changes from being included in the cost baseline
Answer: D
. During the sixth monthly update on a ten month $30K project, the analysis shows that the BCWS is $20K, and the ACWP is $10K. The BCWP is also determined to be $15K. What can be ascertained from these figures? I. Less has been accomplished that was planned II. Less has been spent than planned III. To complete the project on schedule, costs will exceed budget IV. The project will probably complete behind schedule, but under budget
A. II only
B. Ii and III only
C. III and IV only
D. I, II, and IV only
E. I, II, III, and IV
Answer: D
. Cost estimates include all of the following resource categories EXCEPT
A. Labor
B. Materials
C. Supplies
D. Inflation allowances
E. Time allocations
Answer: E
Parametric cost estimating involves
A. Using the WBS as the basis for estimating
B. Defining the parameters of the project life cycle
C. Caldculating individual cost estimates for each work package
D. Using rates and factors based on historical experience to estimate costs
E. Using the actual cost of a similar project to extimate total proejct costs
Answer: D
All of the following choices represent inputs to the resource planning process EXCEPT
A. The policies of the particular organization (e.g. use of contracting or internalstaffing, or lease or purchase major equipment)
B. The WBS
C. Descriptions of the available resources
D. The actual final cost of the last project
E. The scope statement
Answer: D
Cost control is concerned with I. Influencing the factors that create change to the cost base line II. Determining that the cost baseline has changed III. Managing cost changes when they occur
A. I only
B. III only
C. I and III only
D. II and III only
E. I, II, and III only
Answer: E
Historical results used in cost estimating may include I. Project team knowledge II. Project files III. Commerial cost estimating databases IV. Actual time to complete similar projects
A. I, II, and III only
B. I, II, and IV only
C. I, III, and IV only
D. II, III, and IV only
E. I, II, III, and IV
Answer: A
In the earned value system, cost variance is computed as
A. BCWP - BCWS
B. BCWP - ACWP
C. ACWP - BCWP
D. ACWP - BCWS
E. BCWS - BCWP
Answer: B
. Earned value includes I. Percent complete II. Actual cost of work performed III. Comleted work value IV. Budgeted cost of work performed
A. III only
B. I and II only
C. II and III only
D. I, III, and IV only
E. I, II, III, and IV
Answer: D
Analogous estimating
A. Uses bottom-estimating techniques
B. Uses the actual costs from a previous, similar project
C. Is used most frequently in the later stages of a project
D. Uses project characteristics in a mathematical model
E. Summarizes estimates for individual work items
Answer: B
. Inputs to resource planning include all of the following EXCEPT
A. The WBS
B. The Scope statement
C. A resource pool description
D. Organization policies
E. Resource requirements
Answer: E
Of the following four major processes contained in Project Cost Mangement, which are concerned with the Cost Baseline?
A. Resource Planning and Cost Estimating
B. Cost Estimating and Cost Budgeting
C. Cost Budgeting and Cost Control
D. Resource Planning and Cost Control
E. Resource Planning, Cost Estimating, and Cost Control
Answer: C
In order to determine the project's Estimate at Completion, which of the following information is needed?
A. BCWP and ACWP
B. BCWP and CV
C. CPI and CV
D. ACWP and CPI
E. ACWP and ETC
Answer: E
. If BCWS = 100, BCWP = 98, adn ACWP = 104, the project is
A. Ahead of schedule
B. Headed for a cost overrun
C. Operating at project cost projections
D. Likely to come in under budget at completion
E. Behind schedule
Answer: B
. Which is an acceptable cause for "re-baselining" a $10M project
A. The monthly Consumer Price Index on some commodities essential to the project has gone up by 1.6%, an increase of 46% over the 1.1% that had been budgeted
B. The client has authorized a $10K addition to the scope of the project
C. The contractor's company has instituted a Quality Program in which it has pledged to spend $1M during the next year
D. The productivity in the Dratfting Department is lower than anticipated which has resulted in 1,000 additional hours, a 78% increase over what was budgeted
E. The engineering dpartment has converted to a new $200K CAD system
Answer: B
Which item is most over budget?
<table>
<tr><th>Item <th> BCWS <th> ACWP <th> BCWP
<tr><td>1 <td> 10,000 <td> 11,000 <td> 10,000
<tr><td>2 <td> 9,000 <td> 8,000 <td> 7,000
<tr><td>3 <td> 8,000 <td> 8,000 <td> 8,000
<tr><td>4 <td> 7,000 <td> 7,000 <td> 5,000
<tr><td>5 <td> 6,000 <td> 9,000 <td> 6,000
</table>
A. Item 1
B. Item 2
C. Item 3
D. Item 4
E. Item 5
Answer: E
Which item has the lowest SPI?
<table>
<tr><th> Item <th> BCWS <th> ACWP <th> BCWP
<tr><td> 1 <td> 10,000 <td> 11,000 <td> 10,000
<tr><td> 2 <td> 9,000 <td> 8,000 <td> 7,000
<tr><td> 3 <td> 8,000 <td> 8,000 <td> 8,000
<tr><td> 4 <td> 7,000 <td> 7,000 <td> 5,000
<tr><td> 5 <td> 6,000 <td> 9,000 <td> 6,000
</table>
A. Item 1
B. Item 2
C. Item 3
D. Item 4
E. Item 5
Answer: D
According to earned value analysis, the SV of the project described below is BCWS = $2.2K, BCWP = $2K, ACWP = $2.5K, BAC = $10K
A. +$300 and the project is behind schedule
B. -$300 and the project is ahead of schedule
C. +$8K and the project is on schedule
D. +$200 and the project is ahead of schedule
E. -$200 and the project is behind schedule
Answer: E
What is the CPI for this project, and what does it tell us about cost performance thus far?BCWS = $2.2KBCWP = $2KACWP = $2.5KBAC = $10K
A. 0.20; actual costs are exactly as planned
B. 0.80; actual costs have exceeded planned costs
C. 0.80; actual costs are less than planned costs
D. 1.25; actual costs have exceeded planned costs
E. 1.25; actual costs are less than planned costs
Answer: B
. The CV is BCWS = $2.2KBCWP = $2KACWP = $2.5KBAC = $10K
A. $300
B. ($300)
C. $500
D. ($500)
E. None of the above
Answer: D
What is the EAC for this project, and what does it represent?BCWS = $2.2KBCWP = $2KACWP = $2.5KBAC = $10K
A. $10K; the original project budget
B. $10K; the revised estimate for total project cost (based on performance thus far)
C. $12,500; the original project budget
D. $12,500; the revised estimate for total project cost (based on performance thus far)
E. None of the above
Answer: D
. Life-cyle cost estimates consider the
A. Costs of the project for the concept, planning, implementation, and closeout phases
B. Expected profits, measured by subtracting total costs from estimated gross revenues
C. Cost of ownership, including the costs of operations and disposal
D. Project cost at the time of customer acceptance
E. Acquisition costs only
Answer: C
Accelerated depreciation allows a company to write capital expenses off its taxes more quickly. Which of the following is a recognized method of accelerated depreciation?
A. Straight-line
B. Double-declining balance
C. Rapid capital deduction
D. A and B
E. All of the above
Answer: B
Experts contend that sunk costs should not be considered in making financial decisions about the future of a project. Sunk costs are
A. The initial outlay to get a project started
B. Costs that have been expended already
C. The average cost per unit
D. The marginal cost
E. Total indirect and direct costs
Answer: B
. All the following statements about analogous estimating are true except that it
A. Supports top-down estimating
B. Is a form of expert judgement
C. Is used to estimate total project costs when a limited amount of detailed projectinformation is available
D. Involves using the cost of a previous, similar project as the basis for estimatingthe cost of teh current project
E. Has an accuracy rate of +/- 10% of actual costs
Answer: E
Which of the following estimates would most closely predict the actual cost of a project?
A. Order-of-magnitude
B. Budget
C. Definitive
D. Initial
E. Detailes
Answer: C
If a project is running behind schedule and the project manager decides to crash the network to catch up, which of the following rules should he/she follow?
A. Use early start times for noncritical tasks
B. use resource leveling to optimize the productivity of project resources
C. Crash the tasks that have the longest duration
D. Crash critical tasks for which cost of crashing is lowest
E. Use late start times for noncritical tasks
Answer: D
. According to learning curve theory, when many items are produced repetitively
A. Production equipment that requires less operator training lowers unit costs
B. Unit costs decrease as production rates increase
C. Unit costs decrease in a regular pattern as more units are produced
D. Costs of training increase as the level of automation increases
E. None of the above
Answer: C
Which of the following is NOT an example of a direct cost?
A. Salary of the project manager
B. Subcontractor expenses
C. Materials used by the project
D. Electricity
E. B and D
Answer: D
84. As the fourth month on the Acme project, cumulative planned expenditures were $100K. Actual expenditures totaled $120K. How is the Acme project doing?
A. The project is ahead of schedule
B. The project is in trouble because of a cost overrun
C. Project costs are within a normal range
D. The project will finish within the original budget
E. Sufficient information is not available
Answer: E
. In bottom-up cost estimating, accuracy is enhanced
A. With smaller work items
B. By using accurate historical information
C. If previous projects are similar in fact, not just in appearance
D. If the individuals or groups preparing the estimates are fully qualified
E. Through the use of computerized tools
Answer: A
Working capital consists of
A. Current assets minus current liabilities
B. Funds reserved for bid and proposal costs
C. Funds set aside for unforeseen problems
D. Current liabilities plus current assets
E. Current liabilities minus current assets
Answer: A
According to the law of dimishing returns
A. Using more resources will result in proportionately more output
B. Using fewer resources will result in greater profit
C. Using more resources will result in proportionately less output
D. Using more resources will result in the projrect's taking less time
E. Smaller production runs will increase unit costs, thereby reducing profit
Answer: C
Which of the following is a tool for analyzing a design, determining its functions, and assessing how to provide those functions cost-effectively?
A. Pareto diagram
B. Kanban
C. Configuration management
D. Value analysis
E. Management by objectives
Answer: D
The cost management plan
A. Describes how CVs will be managed
B. Establishes the cost baseline
C. Measures and monitors cost performance on the project
D. A and C
E. A, B, and C
Answer: A
. Cost accounts
A. Are charge accounts for personnel time management
B. Summarize project costs at level 2 of the WBS
C. Identify and track management reserves
D. Represent the basic level at which project performance is measured and reported
E. All of the above
Answer: D
The internal rate of return is a measure of a project's expected profitability that can be thought of as the
A. After-tax profit reported to the government
B. Average rate of return for the project
C. EAC minus BAC
D. CV percentage
E. Ratio of discounted revenues over discounted costs
Answer: B
. A resource-limited project is one in which
A. The project must be finished as soon as possible but without exceeding a specific level of resource usage
B. Functional managers do not allocate the required number of resources at the time required by the project manager
C. Th eproject must be finished by a certain time using a few resources as possible
D. The project manager is rewarded if only a few of the allocated resources are used
E. All of the above
Answer: A
Considering the project schedule during the cost budgeting process
A. Identifies the project elements so that costs can be allocated
B. Allows costs to be assigned to the time period when they will be incurred
C. Provides another way to help measure and monitor cost performance
D. A and B
E. A, B, and C
Answer: B
. Resource leveling is an important tool for the project manager because
A. Less management attention is required if the use of a given resource is nearly constant over time
B. A just-in-time inventory policy may be used without worrying that the quantity delivered will be incorect
C. Morale on the project may be increased
D. Stable labor levels will result in fewer problems with regard to administration of personnel and payroll
E. All of the above
Answer: E
The purpose of resource planning is to
A. Determine the physical resources needed to perform project activities
B. Approximate the costs of resources needed to complete project activities
C. Provide quantitative assessments of the costs of resources required to complete project activities
D. Determine the resources that are potentially available
E. Assess the organizational policies concerning resources for use on the project
Answer: A
The cost of investing in a particular project and, therefore, forgoing the potential benefits of other projects is known as
A. Variable cost
B. Total cost
C. Fixed cost
D. Indirect cost
E. Opportunity cost
Answer: E
Which of the following techniques for cost estimating is considered the least accurate?
A. Bottom-up estimating
B. Parametric modeling
C. Analogous estimating
D. Computerized tools
E. Range estimating
Answer: C
. Net present value is the
A. After-tax value of working capital
B. Value today of future cash flow
C. Total budget as of today
D. Total budget as of today plus management reserve
E. Future value of present cash flow
Answer: B
Supporting detail for cost estimates should include
A. A description of the scope of work
B. Documentation of the basis of teh estimate
C. Documentation of any assumptions made
D. An indication of teh range of results
E. All of the above
Answer: E
Financial analysis of payback period identifies the
A. Ratio of discounted revenues over discounted costs
B. Future value of money invested today
C. Project that is expected to become profitable most quickly
D. Point in time where costs exceed profit
E. Margin that has been earned
Answer: C
. The purpose of cost budgeting is to
A. Determine the cost of the resources needed to complete project activities and allocate them to the proper chart of accounts for the organization
B. Provide a quantitative assessment of the likely costs of the resources required to completeproject activities
C. Monitor cost performance to detect variances from the plan
D. Allocate cost estimates to individual work items to establish a cost baseline againstwhich project performance can be measured
E. All of the above
Answer: D
Resource loading describes
A. A method to minimize the period-by-period variations in resources by shifting tasks withintheir slace allowances
B. The number of people assigned to each task
C. The amount of materials needed for each task
D. The amount of individual resources that an existing schedule requires during specific time periods
E. The need to finish a project as soon as possible without exceeding a specified level of resource usate
Answer: D
. Anticipating the actios and resources required to satisfy customers is an investment in the future. Therefore, the project manager should consider the cost of quality in determining the project's budget. The cost of quality includes the
A. Cost of conformance (doing it right the first time)
B. Cost of nonconformance
C. Cost of materials
D. A and B
E. A, B, and C
Answer: D
To determine EAC, the project manager can
A. Take actuals to date plus the remaining project budget modified by a performance factor
B. Take actuals to date plus a new estimate for all remaining work
C. Take actuals to date plus the remaining budget
D. A and B
E. A, B, and C
Answer: E
. The undistributed budget is part of the
A. Management reserve
B. Performance measurement baseline
C. Level-of-effort cost accounts
D. Indirect pool of accounts
E. General and administrative accounts
Answer: B
Contingencies should be justified
A. Explicitly, in advance of committing to the budget
B. Implicitly, to allow for a management reserve
C. As needed during the project
D. `At the time the budget is prepared
E. At the time the price is determined
Answer: A
The process of cost control includes all the following actions except
A. Monitoring cost performance to detect variancesa from the plan and determining the reasonsfor both positive and negative variances
B. Ensuring that all appropriate changes are recorded accurately in the cost baseline
C. Selecting projects using IRR, present value, or other techniques to ensure profitability
D. Informing appropriate stakeholders of authorized changes
E. Preventing incorect, inappropriate, or unauthorized changes from being includedin the cost baseline
Answer: C
A rolling-wave budget provides
A. Maximum assurance that management's oals are reasonable and attainable because supporting details are included
B. A full-period projection that uses a top-down, unsupported budget along with a fully supported, bottom-up budget for the njearest 6-month segment of the project
C. A qualitative basis for measuring and rewarding individual and departmental performance
D. A basis for monitoring results according to the plan
E. A way to examine individual components of a budget so that management knows the project'sstatus at all times
Answer: B
The method of calculating the EAC by adding the remaining project budget (modified by a performance factor) to the actuals to date is used most often when the
A. Current variances are viewed as typical of future variances
B. Project management team believes that similar variances will not occur in the future
C. Original estimating assumptions are no longer reliable because conditions have changed
D. Current variances are viewed as atypical ones
E. Original estimating assumptions are considered to be fundamentally flawed
Answer: A
The cumulative cost curve for planned and actual expenditures
A. Shows the cumulative expenditures for the project
B. Is also knows as a S-curve
C. Helps to monitor project performance at a glance
D. Shows the difference beeetween planned and actual expenditures
E. All of the above
Answer: E
. Rebaselining may be an output of cost control when
A. CVs are severe, and a relaistic measure of performance is needed
B. Revised cost estimates are prepared and distributed to stakeholders
C. Corrective action must be taken to bring expected future performance in linewith the project plan
D. A and C
E. A, B, and C
Answer: A
. All the following statements are true about interface, EXCEPT
A. Considered to be the most difficult aspect of implementing the project plan
B. The process of coordinating the various elements of the project so that they meet their joint goals of performance, schedule, and budget
C. The responsibility of the project manager as part of the everyday task of managing the project
D. Facilitated by use of the responsibility assignment matrix to display the ways people on the project interact and their duties and responsibilities
E. Primarily concerned with the technical issues associated with linking system components in a configuration
Answer: E
. The input to project initiation consists of
A. The product or service description
B. The company's strategic plan
C. The project selection criteria
D. Historical data
E. All of the above
Answer: E
. The subdivision of major project deliverables, as identified in the scope statement, into
smaller, more manageable components is called:
a. parametric estimation.
b. scope definition.
c. feasibility analysis.
d. benefit­cost analysis.
Answer: b
. The process of establishing clear and achievable objectives, measuring their achievement,
and adjusting performance in accordance with the results of the measurement is called:
a. strategic planning.
b. alternative objectives inventory.
c. management by objectives.
d. contingency planning.
Answer: c
. A fundamental tenet of modern quality management holds that quality is most likely to be
achieved by:
a. planning it into the project.
b. developing final inspections for quality.
c. striving to do the best job possible.
d. conducting quality circle activities.
Answer: a
The time­phased budget that will be used to measure and monitor cost performance in the
project is called the:
a. work breakdown structure.
b. project schedule.
c. cost baseline.
d. cost budget.
Answer: c
At XYZ Inc., the hourly wage for semi­skilled workers is $14.00. The annual audit shows
that fringe benefits cost 30% of basic wages, and that overhead costs are 60% of wages plus
fringe benefits. What is the ``loaded'' hourly wage for a semi­skilled worker at XYZ Inc.?
a. $22.40.
b. $26.60.
c. $29.12.
d. $30.33.
Answer: c
When there is uncertainty associated with one or more aspects of the project, one of the first
steps to take is to:
a. revise project plan.
b. conduct a risk­benefit analysis.
c. conduct a needs analysis.
d. increase the estimated cost.
Answer: d
A narrative description of products or services to be supplied under contract is called:
a. the project plan.
b. a statement of work.
c. an exception report.
d. Pareto analysis.
Answer: b
. 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 the project should proceed.
Answer: a
All of the following are examples of a source of scope change except:
a. a variation in government regulations.
b. failure to include a required feature in the design of a telecommunication system.
c. discovering a need to engage in bottom­up cost estimating.
d. introducing technology that was not available when scope was originally defined.
Answer: c
Learning curve theory emphasizes that in producing many goods:
a. cost decreases as production rates increase.
b. average unit cost decreases as more units are produced.
c. materials become cheaper when they are purchased in bulk.
d. laborers become more productive because of technological advances.
Answer: b
Adjusting resources applied to maintain constant resource loading is called:
a. floating.
b. leveling.
c. restructuring.
d. crashing.
Answer: b
Configuration management is:
a. used to ensure that the description of the product is correct and complete.
b. the creation of the work breakdown structure.
c. the set of procedures developed to assure that project design criteria are met.
d. a mechanism to track budget and schedule variances.
Answer: a
The type of contract that transfers most of the cost risk to the seller is:
a. cost plus award fee.
b. fixed incentive fee.
c. cost plus fixed fee.
d. fixed price.
Answer: d
It is critical for your company to offer its products on the Internet to increase its market
share. The company has no previous experience in this area, but it believes that knowledge
is needed rapidly. As you have shown an interest in the Internet, you are asked to start
planning for this project. The first step to take as you begin planning is to:
a. identify the risks.
b. plan the scope.
c. prepare a schedule.
d. negotiate a budget.
Answer: b
Given the information in the following table, what is the expected value from this risk event?
<table>
<tr><th> Probability <th> Result
<tr><td> .4 <td> ­10,000
<tr><td> .3 <td> ­7,500
<tr><td> .2 <td> ­5,000
<tr><td> .1 <td> +2,500
</table>
a. ­10,000.
b. ­ 7,500.
c. + 2,500.
d. ­7,000.
Answer: d
A contractor is working on a fixed price contract that calls for a single, lump sum payment
upon satisfactory completion of the contract. About halfway through the contract, the
contractor's project manager informs their contract administrator that financial problems
are making it difficult for them to pay their employees and subcontractors. The contractor
asks for a partial payment for work accomplished. Which of the following actions by the
buyer is most likely to cause problems for the project?
a. starting partial payments for work accomplished.
b. adhering to the contract and making no early payments.
c. paying for all work accomplished to date only.
d. demanding penalty free options to make early payments.
Answer: b
To be successful, negotiating must be conducted in an atmosphere of:
a. flexibility and understanding.
b. sincerity and thoughtfulness.
c. mutual respect and cooperation.
d. sincerity and prudent caution.
Answer: c
Inputs to cost budgeting include all of the following except:
a. cost baseline.
b. cost estimates.
c. work breakdown structure.
d. project schedule.
Answer: a
A precise description of a deliverable includes a:
a. specification.
b. baseline.
c. work package.
d. WBS element.
Answer: a
. Theory X management is based upon an assumption that:
a. quality improvements lie in the hands of quality circles.
b. profits are tied to meeting the project's baseline milestones.
c. absenteeism is tied to poor working conditions.
d. workers are inherently unmotivated and need strong guidance
Answer: d
All of the following are characteristics of parametric estimating except:
a. historical data inputs.
b. quantifiable relationships.
c. scalable calculations.
d. international standards.
Answer: d
Of the following estimates, which most accurately reflect the actual cost of the project?
a. bottom­up estimates.
b. order of magnitude estimates.
c. preliminary estimates.
d. conceptual estimates.
Answer: a
. Including a contingency reserve in the project budget is intended to:
a. reduce the probability of scope changes.
b. increase the effectiveness of scope controls.
c. reduce the probability of a cost overrun.
d. increase the effectiveness of cost controls.
Answer: c
. Cost control outputs include all of the following except:
a. estimate at completion.
b. budget updates.
c. revised cost estimates.
d. cost baseline.
Answer: d
Pareto analysis, cause and effect diagrams, and flow charts are tools used in quality:
a. control.
b. assurance.
c. planning.
d. verification.
Answer: a
Constrained optimization methods of project selection typically include:
a. scoring models for procurement.
b. benefit­cost ratios for finance.
c. multi­objective programming algorithms.
d. subjective computer­based simulation analysis.
Answer: c
Activity duration estimate inputs include all of the following except:
a. resource requirements.
b. basis of estimates.
c. activity lists.
d. constraints.
Answer: b
Risk response development is intended to:
a. create steps to identify project risks.
b. formulate strategies for dealing with events.
c. document lessons learned from project risks.
d. develop measures to quantify project risks.
Answer: b
. Inputs for project initiation include all of the following except:
a. a product description.
b. strategic plans.
c. a project charter.
d. selection criteria.
Answer: c
As part of the contract close­out, project management should document the:
a. statement of work.
b. payment schedules.
c. formal acceptance.
d. change control process.
Answer: c
The process of performance reporting includes all of the following except:
a. status reporting.
b. progress reporting.
c. forecasting.
d. product analysis.
Answer: d
Constructive team roles include:
a. investigator, clarifier, and closer.
b. compromiser, blocker, and closer.
c. initiator, encourager, and gatekeeper.
d. investigator, recognizer, and summarizer.
Answer: c
Which of the following statements concerning contract type is correct?
a. fixed price contracts offer buyers the highest potential risk.
b. cost reimbursable contracts offer buyers the lowest potential risk.
c. fixed price contracts are illegal in most regulated industries.
d. lump sum contracts offer sellers the highest potential risk.
Answer: d
A Work Breakdown Structure numbering system should allow project staff to:
a. identify the level at which individual WBS elements are found.
b. identify configuration management milestones.
c. estimate the costs of WBS elements.
d. provide project justification.
Answer: a
All of the following are true quality statements except:
a. Computer­aided design systems can improve quality, but only at the expense of
an increase in the cost of design.
b. Project quality management must address both management of the project and the
product of the project.
c. Recognition of key actions required of each team member is necessary to meet
quality objectives.
d. Quality improvement depends upon better definition and increased awareness of
the requirements/specifications.
Answer: a
A project was estimated to cost $1.5 million and scheduled to last six months. After three
months, the earned value analysis shows the following: EV = $650,000, PV = $750,000, and
AC = $800,000. The schedule and cost variances are:
a. SV = ­$100,000 / CV = ­$150,000.
b. SV = ­$50,000 / CV = +$150,000.
c. SV = +$100,000 / CV = +$150,000.
d. SV = +$150,000 / CV = ­$100,000.
Answer: a
A precise summary of a physical item, procedure, or service for implementation of an item
or service is called a:
a. work package.
b. baseline description.
c. product description.
d. work breakdown structure.
Answer: c
All of the following are examples of tools often used in cost estimating except:
a. parametric modeling.
b. duration estimating.
c. bottom­up estimating.
d. analogous estimating.
Answer: b
The most crucial time for project risk assessment is:
a. when a problem surfaces.
b. during the planning phase.
c. during the close­out phase.
d. after the schedule is published.
Answer: b
Inputs used during scope planning include all of the following except:
a. constraints.
b. project charter.
c. budget/cost analysis.
d. product description.
Answer: c
A scope statement is important because it:
a. provides the basis for making future project decisions.
b. provides an executive summary of the project for sponsors.
c. documents approval of the project for the stakeholders.
d. provided criteria for measuring total project cost.
Answer: a
The major processes for project integration management are project plan development:
a. project plan execution, and scope change control.
b. project plan execution, and overall change control.
c. overall change control, and scope change control.
d. project initiation, and overall change control.
Answer: b
A project's payback period ends when:
a. maximum profit for that period is realized.
b. total project costs are minimized.
c. total monthly revenue equals total monthly costs.
d. cumulative revenue equals cumulative costs.
Answer: d
A project should be terminated for all of the following reasons except:
a. lack of team synergy necessary to achieve top quality.
b. the project no longer meets the company's objectives.
c. the resources are not available to complete project activities.
d. project funding has been significantly reduced.
Answer: a
The decomposition process is a technique used to construct a:
a. precedence network diagram.
b. critical path analysis.
c. cost variance analysis.
d. work breakdown structure.
Answer: d
The first topic to address in a project kick­off meeting is:
a. roles and responsibilities.
b. resource plans and schedules.
c. project plans and budgets.
d. project scope and schedules.
Answer: a
Inputs into overall change control include all of the following except:
a. project plan.
b. change requests.
c. change control system.
d. performance reports.
Answer: c
A project schedule completion date will change if:
a. the critical path is shortened.
b. contingency funds are used.
c. float time is allocated too late.
d. project resources are added early.
Answer: a
Risk quantification includes:
a. sub­totaling internal and external events.
b. identifying potential risks and impact.
c. evaluating event probability and impact.
d. developing contingency plans and resources.
Answer: c
The most common sequence for risk management activities is risk identification, :
a. risk quantification, and risk response development.
b. risk response assessment, and risk planning.
c. risk mitigation, and risk management.
d. risk elimination, and risk mitigation.
Answer: a
The objective of fast tracking a project is to:
a. increase productivity.
b. reduce project duration.
c. accelerate cost tracking.
d. mitigate project risks.
Answer: b
Complex projects, involving cross­disciplinary efforts, are most effectively managed by a:
a. projectized organization.
b. functional organization.
c. strong matrix organization.
d. strong virtual organization.
Answer: c
You've been engaged to manage a project with an estimated cost of $1,000,000 that has been
publicly approved by the project's sponsor. Your earned value calculations indicate that the
project will be completed on time and under budget by $200,000. Based on this calculation,
your personal profit will decrease by $2,000. You should plan to:
a. invoice for the full amount because the budget has been made public.
b. add features to improve the quality without exceeding the public budget.
c. inform the end­user that you can add features without exceeding the budget.
d. inform the project sponsor of the projected financial outcomes.
Answer: d
. One common way to compute estimated at completion (EAC) is to take the project
budgeted­at­completion and:
a. divide it by the schedule performance index.
b. multiply it by the schedule performance index.
c. multiply it by the cost performance.
d. divide it by the cost performance index.
Answer: d
Project sponsors have the greatest influence on the scope, quality, time, and cost of the
project during the:
a. concept phase.
b. development phase.
c. execution phase.
d. closeout phase.
Answer: a
Ideally, communication between the project manager and the project team members should
take place:
a. via daily or weekly status reports.
b. through approved template forms.
c. by written and oral communication.
d. through the formal chain of command.
Answer: c
During the project scope planning process, the work breakdown structure should be
developed to:
a. the sub­project levels by phase.
b. the levels determined by the project office.
c. levels allowing for adequate estimates.
d. cost center levels for budgeting.
Answer: c
Responses to risk threats include all of the following except:
a. avoidance.
b. acceptance.
c. mitigation.
d. rejection.
Answer: d
To learn who has approval authority for revisions in scope, a project manager should:
a. refer to the resource assignment matrix.
b. refer to the change control plan.
c. review the original project charter.
d. request a copy of the organization chart.
Answer: b
A purchase order represents a:
a. cash out­flow.
b. project expense.
c. commitment.
d. capital investment.
Answer: c
. The process of determining how a risk event will affect the project schedule is called risk:
a. identification.
b. mitigation.
c. simulation.
d. assessment.
Answer: d
Conflict resolution techniques that may be used on a project include:
a. compromising, directing, and withdrawing.
b. compromising, smoothing, and withdrawing.
c. confronting, directing, and smoothing.
d. confronting, smoothing, and withdrawing.
Answer: d
. Risk identification outputs include the following except:
a. risk triggers.
b. decision trees.
c. inputs to other processes.
d. risk events.
Answer: b
Configuration management is a technique for:
a. overall change control.
b. project plan execution.
c. scope planning.
d. risk quantification.
Answer: a
A key activity for achieving customer satisfaction is to define customer:
a. benefits.
b. requirements.
c. feedback.
d. preferences.
Answer: b
Your project is behind schedule due to conflict among team members. After resolving the
conflict, you should consider:
a. leveling the resources.
b. reducing resource loads.
c. reassigning resources.
d. crashing the schedule.
Answer: d
When it appears that a design error will interfere with meeting technical performance
objectives, the preferred response is to:
a. develop a new Work Breakdown Structure.
b. develop alternative solutions to the problem.
c. update the costs to set a new project baseline.
d. notify all project stakeholders of the error.
Answer: b
Your most recent project status report contains the following information:
BCWP = 3,000, ACWP = 3,500, and BCWS = 4,000. The schedule variance is:
a. + 1,000.
b. + 500.
c. ­ 500.
d. ­ 1,000.
Answer: d
All of the following are contract types except:
a. cost­reimbursable.
b. arbitration­based.
c. time and material.
d. fixed­price.
Answer: b
. The disorientation experienced by individuals who suddenly find themselves living and
working in an unfamiliar environment is known as:
a. culture shock.
b. socio­centrism.
c. cultural bias.
d. ethno­centrism.
Answer: a
A detailed project schedule can be created only after
a. A project plan is created
b. A WBS is created
c. A budget is created
d. A project control plan is created
Answer: b
Which of the following is not part of the team's stakeholder management effort?
a. Give them extras
b. Identify them
c. Determine their needs and expectations
d. Manage their expectations
Answer: a
In a projectized organization, the project team
a. Reports to many bosses
b. Has loyalty to the project
c. Will not always have a home
d. B & c
Answer: d
When it comes to changes, the project manager's attention is best spent on
a. Handling changes when they come to light
b. Recording changes
c. Letting management know about changes
d. Preventing unnecessary changes
Answer: d
A work authorization system is used to
a. Control who does each task
b. Control gold platting
c. Let management know what tasks are planned
d. Let functional managers know what tasks are planned
Answer: b
During the execution of a project the project manager determines that a change is needed to material purchased for the project. The project manager calls a meeting of their team to plan how to make the change. This is an example of
a. Management by objectives
b. Lack of a change control system
c. Good team relations
d. Lack of a clear WBS
Answer: b
You are a new project manager who has never managed a project before and are asked to plan a new project. It would be best in this situation to rely on _______ during planning in order to improve your chance of success?
a. Your intuition
b. Your training
c. Historical records
d. Responsibility charts
Answer: c
. A project manager discovers during planning that part of the scope of work is undefined. They should
a. Continue to plan the project because the scope of work is not ready
b. Do what they can to get the scope of work defined
c. Wait until the scope of work is defined and issue a change to the project
d. Complain to the management
Answer: b
Linear programming is an example of what type of project selection criteria?
a. Constrained optimization
b. Comparative approach
c. Benefit measurement
d. Impact analysis
Answer: a
A WBS numbering system should allow project staff to
a. Estimate costs of WBS elements
b. Provide project justification
c. Identify the level at which individual WBS elements are found
d. Use it in project management software
Answer: c
. A chief characteristic of the Delphi technique is
a. Extrapolation from historical data
b. Intuitive expert opinion
c. Analytical hierarchy process
d. A guess
Answer: b
. During a project team meeting a team member suggests an enhancement to the scope of the work that is beyond the scope of the project charter. The project manager points out that the team needs to concentrate on completing all the work and only the work required. This is an example of
a. Domineering behavior
b. Scope management
c. Project charter
d. Scope decomposition
Answer: b
. Management by objectives works only if
a. It is supported by management
b. The rules are written down
c. The project does not impact the objectives
d. The project includes the objectives in the charter
Answer: a
In order to manage a project effectively, work should be broken down into small pieces. Which of the following does not describe how far each task should be broken down?
a. Can be completed in under 80 hours
b. Cannot be logically subdivided further
c. Is done by one person
d. Can be realistically estimated
Answer: c
Contains detailed descriptions of work packages?
a. WBS dictionaries
b. Scope of work
c. Budget estimates
d. Cost estimates
Answer: a
Which of the following estimating methods does not use dummies?
a. PERT
b. CPM
c. PDM
d. Detailed
Answer: c
Which of the following is not TRUE?
a. CPM uses most likely time estimate
b. PERT is superior to CPM because it requires three time estimates per task
c. PERT provides an optimistic, pessimistic and most likely estimate for each task
d. PERT Formula for variance of a task is (P-O)/6
Answer: d
Due to the cost overruns, Diane has sent a status report to the CEO of her company. Assuming he reads it, she can expect him to remember what percent of the report?
A. 73% to 77%
B. 23% to 27%
C. -25% to 75%
D. 85%
E. 50%
Answer: A
Which of the following methods to resolve conflict is most likely to create a "wounded warrior"?
A. Forcing
B. Compromising
C. Accommodation
D. Avoidance
E. Coercion
Answer: D
Decoder" is not synonymous with "receiver" because
A. the decoder interprets based on his or her frame of reference
B. the decoder is not a position on the team
C. the decoder evaluates, uses assumptions and self-interest while the receiver sees or hears
D. the decoder uses skills and credibility to challenge the encoder
E. a and c
Answer: E
People generally remember __ % of the spoken word in 1-2 days and __ % in 2 months.
A. +50, +75
B. +50, +25
C. +75, -25
D. +25, -10
E. +10, -5
Answer: B
In a simple, interactive, one-on-one communication process, there are the sender and receiver of information. The sender is the one who transmits the signals, while the receiver ________ the signals.
A. accepts
B. mixes
C. rejects
D. interprets [PMBOK p. H-2]
E. intercepts
Answer: D
The communication process must have a medium to convey information between two or more parties. The three common media are ________.
A. written, spoken, and signalized
B. visual, audio, and tactile
C. seeing, talking, and listening
D. seeing, listening, and touching
E. none of the above
Answer: B
Communications between two individuals can be affected by either the attitude of either party or an external source disrupting the flow of information. An example of a barrier between the parties involved in verbal communications and an example of a disruptive influence could be ________.
A. a wall between desks and a difference in language skills
B. a third party injecting comments and a fourth party attempting to change the subject
C. an attitude of hostility by the receiver or sender and a ringing telephone nearby
D. a confrontation over schedules and a lack of a scheduling tool
E. an excessive spatial distance between the individuals and one of the individuals has a hearing loss
Answer: C
Of the five basic approaches to conflict resolution that characterize an individual's human resource management style, the one that produces a "win-lose" outcome whereby the project manager uses his/her power to overrule the participant in the conflict is ________.
A. confrontation
B. compromise
C. smoothing
D. forcing
E. withdrawal
Answer: D
Management styles affect the confidence level given a project manager by subordinates, peers, and superiors. When a project manager is judicial in his/her management style, s/he is ________ .
A. honest, sincere, able to motivate and to press for the best and fairest solution, and one who generally goes "by the books"
B. marked by an eagerness to fight or be disagreeable over any given situation
C. encouraging subordinates to realize their full potential, cultivates team spirit, and lets subordinates know that good work will be rewarded
D. one who tends to break apart the unity of the group by agitating and causing disorder on a project
E. one who exercises sound judgment in most areas of the project
Answer: E
ommunications between individuals while talking may also involve nonverbal communications, or body language. Body language is most commonly associated with ________.
A. twisting and shrugging
B. gestures and facial expressions
C. toe tapping and foot shuffling
D. dancing and waltzing
E. pointing and smiling
Answer: B
In negotiations, there are always ongoing communications in an attempt to reach a position that is mutually agreeable to all parties. One means (facilitator) of communication during the negotiation phase is to ________.
A. obtain written concurrence at the end of each session
B. be calm, poised, and patient
C. use surprise as required
D. not be afraid to say no
E. all of the above
Answer: E
Communication includes understanding the other person and reaching a consensus as to what was said. The use of ________ is a means of giving feedback to the speaker by rephrasing the speaker's words to ensure there is a level of understanding.
A. give-back
B. active listening
C. double talk
D. double speak
E. double entendre
Answer: B
Communications between the project manager and a team member take many forms, but it would not include a ________.
A. memorandum announcing a meeting of the team
B. letter of commendation to a team member
C. performance appraisal for a team member
D. newsletter article reviewing the project's progress
E. counseling session for a team member
Answer: D
In face-to-face communications, individuals send two messages when they speak. The two message aspects are content and command. The first contains that part of the message about which two or more persons can agree, and the second contains ________.
A. that portion that is intentionally meant to be misunderstood
B. that portion that imposes behavior and the relationship between the parties
C. inferences as to future messages to be sent
D. reinforcement of prior messages
E. random information that does not contribute to the message content
Answer: B
Barriers to communication can be invisible to the casual observer but can often be greater obstacles than physical barriers. However, barriers do not include ________.
A. semantic ordinates, or absolute words
B. differences in frames of reference
C. lack of credibility or trust
D. an overly technical approach to communicating
E. perceived status difference
Answer: D
Team members may "filter" information to the project manager for several reasons. Filtering, a selective reduction in the quantity and quality of information, is promoted through all of the following except when the team member ________.
A. does not believe the information to be important
B. receives an adverse reaction when "bad news" is given
C. fails to understand the information in the context given
D. summarizes to save reporting time
E. takes too long in obtaining the correct information
Answer: E
The factors of the structural environment can be manipulated (positively and negatively) to improve or degrade the effective communications within a project team. Of the following factors, the one that can be manipulated the most to change the level of communications is ________.
A. mobility opportunity
B. status
C. organizational climate
D. autonomy
E. security
Answer: C
Project managers must strive to improve communications within the project team as well as with external elements. The project manager can improve communications by removing ________ of the information.
A. delays, impediments, and barriers
B. filtering, distortion, and blockage
C. haste, waste, and redundancy
D. pushing, pulling, and putting aside
E. none of the above
Answer: B
The most basic model for the communication process consists of three basic elements ________. When these three elements are present, communication may result.
A. words, illustrations, and mathematics
B. people, transmission medium, and information processor
C. verbal, nonverbal, and physical
D. sender, receiver, and message
E. common language, physical means, and common understanding
Answer: D
In the communication process, "noise" is the word used to describe factors and forces inhibiting the exchange of information between two or more parties. Noise includes all of the following but ________.
A. culture
B. behavior
C. language
D. traditional way of doing things
E. loud talking
Answer: E
In the project environment, there are four general categories of communication formal written, informal written, formal verbal, and informal verbal. Of the following, the one that is not an example of formal written communication is a ________.
A. project charter
B. project budget
C. project management plan
D. project engineer's notes
E. project schedule
Answer: D
To ensure a team member understands the work to be accomplished, the project manager may be more assured of the effectiveness of his/her communication by ________.
A. obtaining feedback and evaluating the end result of the work
B. restating the directive and asking for a commitment
C. restating the directive and using active listening
D. using active listening and obtaining feedback
E. emphasizing the importance of the work and restating the directive
Answer: A
Communication to a group in a meeting multiplies the potential for misunderstanding unless the structure is maintained. One major communication consideration in obtaining an understanding and commitment is that ________.
A. objectives may not be realistic
B. starting the meeting before all participants arrive ensures some people do not have all the information
C. asking for additional comments on a subject only increases the amount of information to be processed
D. silence on a matter does not ensure communication
E. addressing only one item at a time does not provide all related information to be processed
Answer: D
Meeting management facilitates the communication of information between individuals. A legitimate reason for assembling the project team in a meeting includes ________.
A. impressing everyone with the project manager's power
B. providing an opportunity for individuals to discuss personal grievances
C. presenting project information and making a decision on project direction
D. giving the team a chance to talk about its experience
E. forcing a decision out of the team because any outcome is going to be unfavorable
Answer: C
The project manager has three primary interests who need information and are involved in the project's success. These are the ________.
A. customer, project team, and project sponsor/boss
B. customer, client, and project team
C. client, financial department, and functional departments
D. project team, project matrix workers, and subcontractors
E. vendors, subcontractors, and prime contractors
Answer: A
The project manager must maintain an effective communication link with the customer to ensure the customer's satisfaction with the progress of the project. The project manager maintains this link through ________.
A. subordinates, project team members, and the project sponsor
B. the telephone, facsimile, and data transmission
C. periodic project reports, periodic visits to the customer, and telephonic exchanges
D. one-time reports, weekly reports, and monthly reports
E. cost data, schedule data, and performance data
Answer: C
The project manager schedules a quarterly technical review with the customer to assure him/her that the project is progressing as planned. The project manager plans a series of briefings on the cost, schedule, and technical aspects of the project that should be presented by ________.
A. the project manager himself/herself
B. team members knowledgeable of the areas
C. the customer
D. the functional departments
E. none of the above
Answer: B
Suppose the project manager is appointed to manage a new project that has just been given approval to start the planning requirements. The project manager is new to the organization and has inherited a project team previously selected by top management. The best method of initiating the communication process with the team and to establish the expectations of the project team is to ________.
A. send a formal memorandum to each team member to outline the objectives, the requirements of the team, and the time frame for work
B. personally talk to each team member to determine what he/she would like to do on the project and how that can be accommodated
C. call a briefing session to set objectives of the management and direct how these objectives will be met
D. call a kickoff meeting to present the objectives and open the floor for discussion on how the objectives will be achieved
E. prepare a work assignment list and send a copy to each individual tasked with accomplishing a planning task
Answer: D
In the project environment, it is helpful to publish a formal document showing the chain of communications. This document's greatest contribution to the project is to ________.
A. limit the authority of staff members on matters that are the prerogative of the project manager
B. define who can talk to whom within the project so effective communications can be conducted
C. prevent senior management from "legally" asking questions of the lower-level staff members
D. define the project manager's communication authority and responsibilities
E. protect staff members from extraneous requests and directions
Answer: E
The project environment is always in need of effective communication for individuals to exchange and understand information. When everyone is permitted to talk to anyone, essential communication ________.
A. can take the shortest route from the sender to the person needing the information
B. is lost in many informal discussions and most often is never delivered to the intended receiver
C. takes as much as three times longer than when formal communication channels are followed
D. changes the context in which complex issues are delivered as compared to formal written communications
E. becomes nonessential communication because of the lack of emphasis given to the verbal message
Answer: A
The customer-project manager relations are perhaps the most important aspect to the successful implementation of the project work because ________.
A. the customer is always right in defining the contract
B. the customer doesn't understand project management and must be continually tutored in the practices
C. the words in the contract often do not convey the precise meaning of the requirements
D. the project manager's performance evaluation is based on the relationship with the customer
E. none of the above
Answer: C
The project manager must communicate with several different people in the course of managing the project. His/her sole purpose for sending a message is to ________.
A. impress upon the receiver the importance of the project manager
B. convey words that have a motivating impact on the receiver
C. convey information or an action
D. convey an image of positive progress for the project
E. convey a desire or want for the project
Answer: C
Project managers must write correspondence to many individual parties who are project stakeholders. The most important aspect of the project manager's correspondence is to ensure ________.
A. the grammar is correct
B. the format is correct for the message
C. the message is clearly conveyed
D. the delivery of the message is made within 24 hours
E. the completeness of the sentences
Answer: C
The most difficult and costly type of communication performed by the project manager is ________.
A. the formal letter to the customer
B. the meeting or conference
C. the technical specification update
D. the contract modification
E. the one-on-one counseling
Answer: B
Meetings may be held for a number of different purposes and may involve different parties. The types of meetings may be classified as information sharing, problem solving, decision making, planning, and evaluation. The definition of a problem solving meeting might be ________.
A. organized exchange of data and information
B. selection of a course of action from options and alternatives
C. future options and alternatives
D. options and alternatives reviewed
E. results achieved reviewed
Answer: D
Suppose the project manager is called to an information meeting with the customer and a problem is raised. This problem has major implications for the project manager's company, but the customer wants to pursue a solution at the meeting. The project manager should ________.
A. give the customer a range of solutions that might be acceptable to his/her company
B. give the customer an interim solution that must be approved by his/her boss
C. collect as much information on the problem without committing his/her company to a solution
D. tell the customer that he/she will not address any problems because this is only an information exchange meeting
E. tell the customer that the problem is not sufficiently defined to determine the appropriate action
Answer: C
Customers often attempt to resolve issues in meetings with the project manager. The project manager should anticipate the raising of issues and be ________.
A. ready and willing to give an immediate response
B. sensitive to all the nuances of the issues but have a well-considered answer before responding to the customer
C. ready to deflect the issues through persuasion and argument
D. ready to put up a good argument before giving in
E. sensitive to the customer's issues but refuse to respond unless each is codified and formally endorsed to him/her
Answer: B
Project communications are vital to the success of the project meeting its objectives. Documentation is a form of this communication and is often not recognized as a part of the project. Of the following, the one that is not a form of project communications is ________.
A. correspondence
B. photographs
C. handwritten memos to file
D. professional magazines
E. telephone logs
Answer: D
139. The project manager's time is limited, and the opportunity to discuss the project elements with the team is also limited if the project is to be properly managed. Therefore, the project manager must balance his/her time for communications by ________.
A. being reasonably available to key team members without having an unrestricted open-door policy
B. showing his/her interest and concern for work progress through random discussions with groups at their work sites
C. causing relevant documents to be prepared and issued following any meetings
D. maintaining a written record of all pertinent project information and description for use by the team
E. all of the above
Answer: E
ffective communications between elements of a large project improves the probability of success for the project through better information exchanges. In addition to the communication skills required for effective communication, communication planning focuses primarily on ________.
A. the project team and the functional departments
B. the vendors, subcontractors, and other suppliers of goods
C. the interrelationships within the project team
D. the lines of communication and interfaces
E. the project manager's role and responsibility to promote information exchange
Answer: B
Communicating requirements to project participants is the key to establishing the basis for building a product to "conform to the requirements." Poor communication is often the cause of imprecise specifications that a vendor, subcontractor, or implementation team will be working on. The most critical point at which the communications have the chance for being misinterpreted is ________.
A. during the planning phase when little is fully understood about the project's requirements
B. the interface between the project team and suppliers of services or products
C. during close-out when all parties are attempting to terminate operations and move all assets
D. at meetings and conferences when the agenda limits the subjects to be discussed
E. all of the above
Answer: B
he documentation of a project is a form of communication even when the document is completed and placed in a file for future reference. This latent form of communication serves a purpose by recording the facts for future use. Latent communication is often used to ________.
A. record data for post-project evaluations
B. state a position that is a "minority opinion"
C. record actions of project participants to establish a trail of actions
D. collect bits of information that will subsequently be aggregated for decision making
E. all of the above
Answer: E
Closing out a project's contract is both an intellectual (cognitive) issue and an emotional (affective) issue dealing with details and attitude, respectively. The communication needed to effectively complete the contract must deal with both issues. Therefore, the project manager's job is to communicate with the customer to confirm the deliverables, meet the specification or negotiate a settlement, and obtain certifications while managing the customer's emotional side in ________.
A. attitude changes toward the project
B. loss of interest in the project implementation
C. assigning new people to the project
D. having key people unavailable for consultation
E. all of the above
Answer: E
The major processes of project communications management are
A. Communications requirements, information distribution, performance reporting, and administrative procedures
B. Communications planning, information distribution, performance reporting, and administrative closure
C. Communications planning, information distribution, progress reporting, and response planning
D. Communications planning, information distribution, schedule reporting, and stakeholder analysis
E. Communications planning, change reporting, project records, and acceptance
Answer: B
The three major types of communication are
A. Written, oral, and graphic
B. Written, oral, and visual
C. Verbal, written, and electronic
D. Verbal, formal documentation, and informal documentation
E. Verbal, project records, and computerized
Answer: C
Communication barriers are a more frequent source of conflict in matrix and projectized environments than functional organizations for all the following reasons EXCEPT
A. Communication is the prime focus of an expediter type of project manager
B. Team members are often physically separated in a matrix or project environment
C. There are increased numbers of levels of authority in a matrix or projectized environment
D. Team members are often separated in the timing of their contributions to a matrix or project environment
E. Team members with differing skills and backgrounds can be asked to contribute to project results
Answer: A
A communication plan details all of the following EXCEPT
A. To whom information will flow, and what methods will be used to distribute various types of information
B. What information will be gathered, how it will be gathered, and how often it will be gathered
C. Methods for accessing information between scheduled communications
D. All memos, correspondence, reports, and documents related to the project from all personnel
E. Production schedules showing when each type of communication will be produced
Answer: D
The three principal reasons for maintaining good document control are
A. Timely communication, collection of performance appraisal data, and assuring proper disposal of sensitive documents
B. Timely communication, maintaining proper approvals, and communication cost control
C. Effective communication, ability to reconstruct why decisions were made, and historical value
D. Security, change management, and procedural documentation
E. Security, maintaining proper approvals, and optimizing paperwork flow
Answer: C
Ways to improve listening ability include all of the following EXCEPT
A. Focusing on concepts and ideas
B. Listening to feedback
C. providing feedback
D. Performing other activities while the speaker is talking
E. Allowing the speaker to complete the entire message
Answer: D
Communication barriers between the sender and receiver can include all of the following EXCEPT
A. Cultural differences
B. Differences in motivation
C. Unclear expectations
D. Shared assumptions
E. Environment circumstances
Answer: D
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
E. Facilitation
Answer: B
The communication "expediter" of a project team is
A. The MIS subject matter expert
B. A project manager
C. A database manager
D. A project secretary
E. The project client
Answer: B
All of the following aid in achieving consensus EXCEPT
A. Avoiding conflict
B. Maintaining a focus on the problem, not each other
C. Avoiding voting, trading, or averaging
D. Avoiding self-oriented behavior
E. Seeking facts
Answer: A
Inputs to communication planning include
A. Communications requirements, communication technology, constraints, and assumptions
B. Stakeholder requirements, project logistics, and project schedule
C. Stakeholder analysis, communication barriers, and organization structure
D. Communication requirements, project organization chart, and communication technology
E. Stakeholder survey, RAM, WBS, and administrative procedures
Answer: A
All of the following are communication tools EXCEPT
A. Memos
B. Videos
C. Body Language
D. Inputting data into a spreadsheet
E. Verbal circulation of a rumor
Answer: D
Manual filing systems, electronic text databases, and project management software are examples of
A. Information distribution systems
B. Communications technology
C. Internal communications systems
D. Information retrieval systems
E. Project records
Answer: D
Most project managers spend about ___________ of their work time engaged in some form of communications
A. 10%
B. 30%
C. 50%
D. 70%
E. 90%
Answer: E
All of the following are important if the project manager is to effectively manage communications within the project team EXCEPT
A. Formalizing and controlling communication between team members
B. Promoting harmony and trust between team members
C. Ensuring that feedback occurs in both directions
D. Recognizing the importance of the interpersonal communication network
E. Understanding that communication involves both sending and receiving messages
Answer: A
A "tight matrix" is an organizational option
A. In which all team members are brought together in one location
B. Between a weak matrix and a strong matrix
C. In which functional managers operate in a dual reporting structure reporting to both their own departments and to the project manager
D. In which project participants act as a coordinated team
E. In which a functional level of management exists
Answer: A
Communication is the PRIME responsibility of a Project
A. Expediter
B. Coordinator
C. Manager in a weak matrix environment
D. Manager in a strong matrix environment
E. Manager in a projectized environment
Answer: A
Communications technology factors include all of the following EXCEPT
A. Expected staffing levels
B. Project length
C. Executive requirements
D. Availability of technology
E. Immediacy of the need for information
Answer: C
The best overall effective method of resolving conflict in a project environment is
A. Smoothing
B. Withdrawal
C. Problem solving
D. Compromise
E. Confrontation
Answer: C
Tools and techniques for performance reporting include all of the following EXCEPT
A. Trend analysis
B. Decision tree analysis
C. Earned value analysis
D. Performance reviews
E. Information distribution tools and techniques
Answer: B
The sender is responsible for
A. Scheduling communication exchange
B. Ensuring the receiver agrees with the message
C. Confirming message is understood
D. Presenting the message in the most favorable manner
E. Interpreting the message correctly
Answer: C
Information required to determine project communications requirements typically includes all of the following EXCEPT
A. Project organization and stakeholder responsibility relationships
B. Logistics of how many individuals will be involved with the project and at which locations
C. External information needs, disciplines, departments, and specialties involved in the project
D. The availability of technology in place at the project location
E. Project organization and stakeholder responsibility relationship
Answer: D
Formal acceptance by the client or sponsor of the product of the project should be prepared and distributed ______________.
A. As part of Administrative Closure
B. Following the plan as outlined in Quality Management
C. As requested by upper management
D. As part of contract close-out
E. As the last step in project management
Answer: A
The four key stakeholders on every project are
A. Senior managers, customer, sponsor, and functional managers
B. Project manager, project team, senior managers, and customer
C. Project manager, customer, performing organization and sponsor
D. Project manager, functional managers, senior managers, and customer
E. Suppliers, contractors, customers, and sponsors
Answer: C
Miscommunication, disparities in information, and unequal access to information are significant trust inhibitors on teams that are not collocated. A project manager in this situation should
A. Be extremely clear when communicating with team members
B. Develop a communication plan to ensure that team members are kept informed of team issues
C. Keep communication flowing to counteract the isolation of individuals on distributed teams
D. Facilitate clear communication by encouraging the technique of having one person repeat what was heard to ensure understanding
E. All of the above
Answer: E
To determine project communication requirements, typically all the following information is needed except
A. Stakeholders' responsibilities and relationships with the project organization
B. Disciplines, departments, and specialists involved in the project
C. The number of individuals involved in the project and their locations
D. External communication requirements
E. Project audit requirements
Answer: E
The first step in preparing a presentation is to
A. Define the audience
B. Determine the objective
C. Decide on the general form of the presentation
D. Plan a presentation strategy
E. Assess the environment in which the presentation will be delivered
Answer: B
The three project situations that require the most negotiation skills are
A. working with functional managers to ensure that resources are available to support the project, providing performance appraisals to project team members, and developing the WBS
B. Developing the WBS, determining the master schedule, and managing project changes
C. Developing the project team, WBS, and scope statement
D. Using subcontractors, developing the project scope statement, and managing changes after the project is underway
E. Securing upper management support for the project, working with functional managers, and building the project team
Answer: D
The purpose of the communication management plan is to provide
A. Detailed information on the methods that will be used to gather and store information
B. A description of the information to be distributed, including its format, content, and level of detail and the conventions and definitions to be used
C. A procedure to update the communication management plan as the project progresses
D. A and B
E. A, B, and C
Answer: E
Of the following qualifications, which one is the most important for a project manager?
A. Has supervisory experience
B. Is a qualified negotiator
C. Is profit oriented
D. Is educated in a technical field
E. Works well with others
Answer: E
All the following are objectives of the kickoff meeting except
A. Establishing working relationships and lines of communication
B. Setting team goals and objectives
C. Reviewing project plans
D. Establishing individual and group responsibilities and accountabilities
E. Discussing specific legal issues regarding the contract
Answer: E
When communicating with a process-oriented person, a project manager should
A. Remain patient when the other person digresses on arcane topics
B. Emphasize the practicality of his or her ideas
C. Present ideas in a logical, step-by-step manner
D. Allow for small talk, focusing on procedural details
E. Reference his or her recommendations to TQM practices
Answer: C
Of the five tools and techniques for performance reporting, which one integrates cost and schedule information as a key element of its approach?
A. Performance reviews
B. Variance analysis
C. Trend analysis
D. Earned value analysis
E. Information distribution tools and techniques
Answer: D
The 50-50 rule of progress reporting is used to
A. Calculate the exact BCWP
B. Provide a good statistical approximation of BCWP
C. Determine schedule variance
D. Determine schedule variance in monetary terms
E. Control very large projects
Answer: B
The SPI, which is used to forecast project completion date, is calculated by using which formula?
A. BCQP/ACWP
B. BCWS/BCWP
C. ACWS/BCWS
D. BCWP/BCWS
E. BCWP - BCWS
Answer: D
The performance measurement baseline is the
A. BCWS
B. BCWP
C. ACWP
D. ACWS
E. ETC
Answer: A
All the following are barriers to communication except
A. Liquidated damages provisions in fixed-price contracts
B. Difficulties with technical language
C. Detrimental attitudes associated with low compensation
D. Distracting environmental factors
E. Lack of clear communication channels
Answer: A
During the project closeout phase, most conflict arises from
A. Schedule problems
B. Cost overruns
C. Technical problems
D. Working interfaces
E. Personality conflicts
Answer: A
In general, disagreements among stakeholders should be resolved in favor of the
A. Sponsor
B. Customer
C. Performing organization
D. Senior management
E. None of the above
Answer: B
When the project team is not collocated, establishing a way to help team members communicate quickly and frequently is essential. One practical approach is to
A. Bring everyone together frequently for meetings
B. Conduct informal audio-conference meetings regularly
C. Hold a project kickoff meeting
D. Set up an electronic yearbook that lists each team member's accomplishments and background
E. All of the above
Answer: B
A project manager who wants to create a receptive atmosphere for communicating should
A. Ensure that all communication is clear and understood
B. Speak or write as he/she would like to be spoken or written to
C. Have the project team prepare a project communication plan
D. Ensure that team members have the information needed to do their work
E. Ensure that team members have the tools available to facilitate communication
Answer: B
The tool or technique used for communication planning is
A. Stakeholder analysis
B. Communication skills
C. Information retrieval systems
D. Information distribution systems
E. None of the above
Answer: A
Which of the following terms describes the strong pressures within a group to conform to group norms at the expense of critical and innovative thinking?
A. Group oppression
B. Groupspeak
C. Groupthink
D. Groupthought
E. Groupgrope
Answer: C
Empathetic listening entails understanding another person's frame of reference. To exhibit empathetic listening skills, a project manager should
A. Mimic the content of the message
B. Probe, then evaluate the content
C. Evaluate the content, then advise
D. Rephrase the content and reflect the feeling
E. None of the above
Answer: D
The presence of communication barriers is most likely to lead to
A. Reduced productivity
B. Increased hostility
C. Low morale
D. Increased conflict
E. Increased stress
Answer: D
As a project communication management process, administrative closeout consists of verifying and documenting project results to formalize acceptance of the project product by the customer. The output generated from administrative closeout activities consists of
A. Project archives, formal acceptance, and lessons learned
B. Change requests, project records, and lessons learned
C. Lessons learned, performance reports, and change requests
D. Communication management plans, change requests, and project archives
E. None of the above
Answer: A
When communicating with an action-oriented person, a project manager should
A. Be as brief as possible and emphasize the practicality of his or her ideas
B. Provide options, including the pros and cons
C. Stress the relationships between his/her proposals and the people concerned
D. Remain patient if the other person goes off on tangents
E. Speak as quickly as possible to ensure that all the information is conveyed
Answer: A
The project manager can enhance project communication and team building by doing all the following except
A. Having a war room
B. Using a tight matrix
C. Being a good communication blocker
D. Being a communication expediter
E. Holding effective meetings
Answer: C
Of the following factors, which one has the greatest effect on the project's communication requirements?
A. Stakeholder responsibility relationships
B. External information needs
C. Availability of technology
D. The project's organizational structure
E. Expected project staffing
Answer: D
Paraphrasing can be achieved by restatement
A. In different terms
B. From general to specific terms
C. From specific to general terms
D. In opposite terms
E. All of the above
Answer: E
The most common communication problem that occurs during negotiation is that
A. Each side may misinterpret what the other side has said
B. Each side may give up on the other side
C. One side may try to confuse the other side
D. One side may be too busy thinking about what to say next to hear what is being said
E. Either side may not be paying attention
Answer: A
Which of the following is true regarding communication within a project environment?
A. The project manager must assume the primary burden of responsibility to ensure that messages sent have been received
B. Effective meetings, a war room, and a tight matrix promote effective communication
C. If a project consists of 12 people, 48 potential channels of communication exist
D. Most project managers spend 30% of their working hours engaged in communication
E. All of the above
Answer: B
Performance reports are used to provide information to stakeholders on project scope, schedule, cost, and quality. Which statement most accurately describes this process?
A. The configuration control board receives performance reports and generates change requests to modify aspects of the project
B. Performance reporting includes status reports, which detail where the project is now; progress reports, which describe accomplishments; and forecasts, which predict future status and progress
C. Performance reporting focuses on examining earned value analysis to determine whether cost overruns will require budget revisions
D. Performance reporting includes histograms flow charts, and bar charts to show network dependencies and relationships
E. Performance reporting provides variance analysis information, which helps the project team adhere to the zero variance principle
Answer: B
The project manager who adopts the shareholder manager leadership style
A. Solicits little or no information from his or her team and makes decisions alone
B. Solicits input fro the team and makes decisions alone
C. Invites team members to share in project decision deliberations
D. Delegates decision making to the team without much information exchange
E. Lets the project team assume as much leadership responsibility as it will accept
Answer: D
All the following are examples of informal written communication except
A. Engineers' notes
B. e-Mail messages
C. The management plan
D. Memos to team members
E. Post-it notes messages
Answer: C
Communication planning is a process for determining the information and communication needs of the
A. Stakeholders
B. Planners
C. Contractors
D. Customer
E. Team members
Answer: A
The LOB technique is best suited as a performance reporting technique to
A. Display a future job to facilitate analysis of the work involved
B. Show the customer how various activities relate to one another in the production or development process
C. Determine which work sequences will take the longest to complete the project
D. Assure the customer that the articles it is buying will be available when needed
E. Determine which sequences of the effort have been positive and which have been negative to focus attention on areas for improvement
Answer: D
In person-to-person communication, messages are sent on verbal levels and nonverbal levels simultaneously. If nonverbal cues and the spoken message are incongruous, the flow of communication is hindered. Nonverbal communication can involve the use of
A. Physical attributes
B. Esthetic attributes
C. Signs
D. Symbols
E. All of the above
Answer: E
536. Which of the following tools or techniques are used in the information distribution process?
A. Communication management plan, project plan, and information distribution system
B. Information distribution system, information retrieval system, and performance reports
C. Communication skills, information retrieval system, and information distribution system`
D. Communication skills, work results, and status reports
E. Performance reviews, performance reports, and project plan
Answer: C
In dealing with the customer, the project manager should
A. Disclose information only at regular intervals to maintain consistency
B. Strive to develop a friendly, honest, and open relationship
C. Be honest to the extent that the project organization is protected from litigation
D. Try to maximize profits by encouraging scope creep
E. Do whatever it takes to satisfy the customer and win additional business
Answer: B
When communicating with a people-oriented person, a project manager should
A. Stress the uniqueness of the idea or topic at hand
B. Stress the relationships between his/her proposals and the people concerned
C. Be precise about the value of the ideas to overall organizational goals
D. Focus on personnel performance issues first
E. Describe the ideas using anecdotal evidence to support recommendations
Answer: B
The communication process consists of the following components
A. Communicator
B. Message
C. Function
D. Recipient
E. Medium
Answer: C
The process of conferring with others to come to terms or reach an agreement is called
A. Win-win
B. Getting to yes
C. Negotiation
D. Arbitration
E. Confrontation
Answer: C
The project manager has changed the scope without communicating the change to the rest of the project team. The project is now over budget. What action would prevent this from happening in the future?
A. Adjust the resource allocation
B. Improve budget estimating
C. Follow the communication plan
D. Hold more meetings
Answer: C
The project manager has changed the scope without communicating the change to the rest of the project team. The project is now over budget. What should the project manager do now?
A. Call the customer immediately
B. Analyze the impact and request more budget
C. Analyze impact to cost and schedule, review and implement contingency plans
D. Call a team meeting, apologize and get a quick agreement on a solution
Answer: C
Lessons learned are most often based upon a projects historical records.
Lessons learned can be used to:
a. See what mistakes have been made previously.
b. See how problems have been solved previously
c. Predict trends, highlight problems and identify alternatives.
d. All of the above.
Answer: D
(Kerzner 896-900)
Project Closeout must ensure that the terms of the contract have been met.
Documentation enables the project team to:
a. Reflect revised or as-built conditions
b. Verify that the budget has been met.
c. Verify that no cost accounts have been exceeded.
d. All of the above.
Answer: A
Kerzner 608-609
Work packages are used to :
a. Represent units of work at a level where work is performed.
b. distinguish one package from all others assigned to a single functional group.
c. Limit work to be performed to relatively short periods of time.
d. All of the above.
Answer: d
Scope baseline once established and approved is used:
a. As the basis for making future decisions..
b. To accomplish verification measures.
c. To evaluate potential changes.
d. All of the above.
Answer: d
In preparing a good project definition, experienced project manager will:
a. Concentrate mainly on the end product, rather than on costs are benefits.
b. Realize that only the tip of the iceberg may be showing. As Proj. managers, they must get beneath it.
c. Understand that a project definition / plan is a dynamic rather than a static tool, and thus subject to change.
d. All of the above.
Answer: d.
The contractual Statement of work (CSOW): _______________
a. Must be the same as the proposal statement of work.
b. Does not identify reporting requirements (ie data items)
c. Can be at a different level of detail than the proposal's SOW
d. All of the above.
Answer: c
Kerzner 583-84
Graphical displays of accumulated costs and labor hours, plotted as a function of time, are called:
a. Variance report
b. S Curve
c. Trend Analysis
d. Earned value report
Answer: b
(Kerzner 822)
Mgmt plans include all of the following except:
a. Organization of the project
b. Job description
c. Policies & Procedures
d. Scope baseline
Answer: d
(Kerzner 570-72)
A comprehensive definition of Scope management would be:
a. Approval of Scope baseline
b. Approval of detailed project charter
c. Configuration control
d. Managing a project in terms of its objectives thru all life cycle phases and processes.
Answer: d
he degree to which a company accepts and utilizes project mgmt is most often dependent upon the ___________ and ___________ of its projects.
a. Competion, dollar value
b. Type of industry, manpower requirements.
c. Risk, quality management
d. size, nature
Answer: d
The rolling wave or moving window advocates the use of WBS decomposition, and is used most frequently in the ________process.
a. Initiation
b. Scope definition
c. Scope planning
d. Scope reporting
Answer: b
The project charter and scope statement are documents designed to tell __________ exactly what the project entails.
a. The project manager
b. Project Office
c. Project team
d. Anyone associated with the project
Answer: d
(Kerzner 626)
Using the WBS shown in 1_A034.bmp, a typical work package would be:
a. Software development
b. Systems design
c. Coding
d. None of the above
Answer: d
Problems can occur in properly defining a project because:
a. Plan was too loose, allowing changing of priorities
b. Project goals may not be agreeable to all parties.
c. High turnover of the project personal
d. Project objectives were quantified
Answer: b
15. Project Mgmt / Project planning can address:
a. Long range / strategic planning (5yrs or more)
b. Intermediate range planning ( 1 to 5 yrs)
c. Short range/ tactical planning (1 yr or less)
d. b and c
Answer: d
(Kerzner 9/97)
A project Manager believes that modifying the scope of the project may provide added value for the customer. The project manager should:
a. Change the scope baseline
b. Prepare a variance report
c. Change project objectives
d. Convene change control board
Answer: d
(Kerzner 633-34)
Researching, organizing, and recording pertinent project information is called:
a. alternative analysis
b. configuration control
c. Information gathering
d. All of the above
Answer: c
Feasibility studies evaluate alternatives in terms of:
a. Cost effectiveness
b. Risk
c. Safety
d. All or part of A thru C
Answer: d
(Kerzner 578)
The most common non-behavioural reason for projects being completed behind schedule and over budget is:
a. Wrong choice of a Proj Manager
b. Accepting high risk
c. Ill-defined requirements
d. Wrong choice of a Proj Sponsor
Answer: c
(Kerzner 583-5)
Ensuring that all work is both authorized and funded by contractual documentation is the responsibility of:
a. The Project Manager
b. Functional Manager
c. Sponsor
d. All of the above
Answer: a
Preparation of the Scope baseline involves the:
a. Project Manager and sponsor
b. Functional team
c. Project Manager and project office
d. All of the above
Answer: d
The major disadvantages of a bar chart is that it:
a. Lacks time phasing
b. Cannot be related to calendar dates
c. Does not show activity interrelationships
d. Cannot be related to manpower planning
Answer: c
A Project element which lies between two events is called:
a. An activity
b. Critical path node
c. A slack milestone
d. A timing slot
Answer: a
3. Mgmt. has decided to "crash" a project in order to avoid penalty payments for late deliveries. Additional costs are expected. To crash the project, either overtime or additional resources should be assigned to:
a. All activities
b. Those activities on the critical path beginning with the longest time duration activities.
c. Only for activities with the longest time durations.
d. None of the above.
Answer: b
Time Mgmt is the allocation of time to a project's processes of:
a. Planning
b. Estimating
c. Scheduling
d. All of the above.
Answer: d
ADM is an Activity-on-Arrow method. In this method, a dummy activity:
a. Denotes critical path relationship.
b. shows slack.
c. Denotes any dependency relationship.
d. Identifies customer team meeting dates.
Answer: c
Using the following figure, the critical path is ____ weeks.<br>
<img src="Balaji-time-6.gif">
a. 21
b. 22
c. 23
d. 24
e. 25
Answer: d
The major difference between PERT and CPM networks is:
a. They are one and the same, but they are called different names in USA and European Union.
b. PERT is used for IT projects, whereas CPM is used for R&D.
c. PERT addresses only time whereas CPM talks about costs and resource availability.
d. PERT uses computer solutions, whereas CPM is a manual technique.
e. PERT requires three time estimates, whereas CPM requires one time estimate.
Answer: e
Once a logic of a network is laid out, the project manager will conduct a forward pass and then a backward pass thru the network. Doing this will provide information on the ___________ and identification of the _________.
a. Slack for each activity, critical path.
b. Slack for each activity, high risk activities.
c. Manpower shortages, high risk activities.
d. High risk activities, non-critical paths.
e. Manpower availability, contingency plans.
Answer: a
Smoothing out resource requirements from period to period is called resource ______________.
a. Allocation
b. Partitioning
c. Leveling
d. a and b
e. None of the above
Answer: c
Assigning resources is an attempt to find the shortest project schedule consistent with fixed resource limits is called __________________.
a. Resource Quantification.
b. Resource partitioning.
c. Resource leveling.
d. Resource-constrained scheduling.
e. None of the above.
Answer: d
In the Arrow Diagramming Method (ADM), ________ do not consume time or resources.
a. Events
b. Activities.
c. Slack Elements.
d. All of the above.
e. b and c
Answer: a
Increasing resources on the critical path activities may not always shorten the length of the project because:
a. Certain activities are time-dependent rather than resource-dependent.
b. Safety, OSHA and EPA may have placed restriction on the number of people used on certain activities or in the physical location of the project.
c. The skill level of the added resources might not be appropriate for the activities to be performed.
d. Adding more resources may create additional work and produce inefficiencies
e. All of the above.
Answer: e
Among the common types of schedules are Gantt charts, milestone charts, line of balance, and :
a. Networks
b. Time-phased events.
c. Calendar-integrated activities.
d. a and c
e. b and c
Answer: a
Bar charts are most appropriate for:
a. Comparing actual to planned performance for each activity
b. Showing slack time.
c. Showing critical path dependencies
d. Showing which activities can be rearranged in parallel
e. All of the above
Answer: a
Using the following figure, activity D has the latest start time of ________weeks and latest finish time of _______ weeks.<br>
<img src="Balaji-time-15.gif">
a. 4,12
b. 2,10
c. 6,14
d. 7,15
e. 9,17
Answer: b
Normally distributed data, by definition, is distributed evenly around the ____________.
a. Normal Value
b. Mean value
c. Six sigma value
d. Standard Deviation
Answer: b
Which of the following is not a principle of modern quality assurance?
a. Increased expenditure on inspection
b. Total quality control
c. The cost of quality
d. Continuous improvement
Answer: a
Which of the following is / are typical tools of statistical process control?
a. Pareto Analysis
b. Cause-& Effect Analysis
c. Process control Charts
d. All of the above
Answer: d
The specification for a particular part is 10" 0.015". The associated process produces parts with the mean of 10" and a standard deviation of 0.002". The process capability index is:
a. 0.0002
b. 1.0
c. 2.5
d. Cannot be calculated with above data.
Answer: c
Costs of prevention include:
a. Training
b. Supplier certification
c. scrap
d. a & b
Answer: d
Good quality objectives should:
a. Be attainable and state specific deadlines for completion / implementation.
b. Define specific goals
c. Be understandable
d. All of the above.
Answer: d
When a process is set up optimally, the upper and lower specification limits typically are:
a. Set outside the upper and lower control limits
b. Set equal to the upper and lower control limits.
c. Set at an equal distance from the mean value
d. a and c
Answer: d
Which of the following is true of modern quality management?
a. Quality has become a competitive weapon
b. Quality is linked with profitability on both the market & cost sides.
c. Quality is defined by the customer.
d. All of the above are true.
Answer: d
Which of the following is not a part of the generally accepted view of quality today?
a. Quality is customer focused
b. Quality can be improved thru thorough inspection.
c. Improved quality saves money and increases business.
d. All above are correct.
Answer: b
The cost of internal failure include:
a. Scrap
b. Rework
c. a & b
d. None of the above
Answer: c
Attributes quality data:
a. Are expressed as pass / fail or accept / reject
b. Are quality data for which the product or service is designed and built.
c. Indicates management's understanding of the concept of variability
d. a & b
Answer: d
Which of the following is / are part of the criteria by which a company is evaluated for the Malcolm Baldrige award?
a. Business Results
b. Information analysis
c. Leadership and strategic planning.
d. All of the above.
Answer: d
A well-written policy statement on quality will:
a. Be a statement of how, not why.
b. Promotes consistency throughout the organization and across projects.
c. Provides an explanation of how customers view quality in their organizations.
d. None of the above
Answer: b
Which of the quality gurus believed "Zero Defects " is achievable.
a. Crosby
b. Taguchi
c. Juran
d. All of the above
Answer: a
Which of the following is / are true about quality costs when quality management principles are applied?
a. Prevention costs may actually rise over time
b. Prevention costs and failure costs (internal and external) are directly related.
c. Prevention costs and failure costs (internal and external) are inversely related.
d. a & c
Answer: d
A process characteristic has a true (population) mean of 150 and a true (population) standard deviation of 20. A sample of 25 items is taken from this process. The standard deviation of the sample is :
a. 4.0
b. 0.2
c. 0.8
d. 7.5
Answer: a
Quality audits:
a. Are not necessary if you do it right the first time.
b. Must be performed daily for each process.
c. Are important only for technology-oriented products
d. Are none of the above.
Answer: d
Which of the following is considered a cost of prevention?
a. Rework costs
b. Mass inspection
c. Creating quality control charts
d. All of the above.
Answer: c
Which of the following is not one of crosby's four absolutes of quality?
a. Quality is measured by the cost of conformance.
b. Quality comes from prevention.
c. Quality is measured by the cost of non-conformance.
d. Quality means conformance to requirements.
Answer: a
Which of the following is not one of crosby's four absolutes of quality?
a. Quality is measured by the cost of conformance.
b. Quality comes from prevention.
c. Quality is measured by the cost of non-conformance.
d. Quality means conformance to requirements.
Answer: a
Assignable cause or special cause variation is indicated when a:
a. Point falls outside the control limits.
b. Points falls outside the specification limits.
c. Run of seven or more points fall above the centre line of a standard control chart.
d. a & c
Answer: d
Which is closest to the Juran's definition of Quality?
a. Conformance to requirements
b. Fitness for use.
c. customer focus
d. continuous improvement of products and services.
Answer: b
Quality assurance includes:
a. Planning for collection of data.
b. Completing tic charts.
c. Inspection analysis
d. All of the above
Answer: a
If a project manager requires the use of a piece of equipment, how many days must he rent the equipment before the cost is equal to the total cost of leasing the equipment for one year?
<table>
<tr><th>Cost <th> Renting <th> Leasing
<tr><td>Annual Maint <td> $0.00 <td> $3000
<tr><td>Daily Operation <td> $0.00 <td> $70
<tr><td>Daily Rental <td> $100 <td> $0.00
</table>
a. 300 days
b. 100 days
c. 700 days
d. 30 days
Answer: b
Which of the following is an element of procurement management?
a. Inspection
b. Purchasing & Expediting
c. Estimating
d. a & b
Answer: d
Which one of the following factors should be considered in the make or buy analysis?
a. Direct & Indirect costs
b. Possible use by other projects and /or operations of the asset under consideration
c. a & b
d. None of the above
Answer: c
A customer asks a contractor to develop a new product for the customer. The customer knows that the contractor will then "transfer" this knowledge to other product lines, which may generate substantial future revenue for the contractor. The customer would most likely negotiate which type of contract?
a. FFP
b. Cost Sharing
c. Time and material
d. Cost
Answer: b
Which type/s of contract/s has / have no profit margins included.
a. Cost
b. Cost sharing
c. Time and material
d. a & b
Answer: d
Which of the following contract has the highest technical risk to the owner?
a. Time & Material
b. Firm Fixed price
c. Cost plus fixed fee
d. None of the above
Answer: a
The formal invitation to submit a price for specified goods / services is usually referred to as:
a. Request for Proposal (RFP)
b. Request for Quotation (RFQ)
c. Bid invitation
d. a & b
Answer: b
A proposal kickoff meeting usually covers:
a. Project Scope
b. Staffing & assignments
c. Proposal schedule
d. All of the above
Answer: c
Which type/s of incentive contract/s has/have a total price ceiling?
a. Cost plus incentive fee
b. Fixed price incentive fee
c. firm fixed price
d. a & c
Answer: b
Standardization of purchased material:
a. Reduces risk of obsolescence
b. Reduces cost of purchasing & simplifies inventory control
c. Increases cost of storage.
d. a & c
Answer: b
Which of the following is / are associated with a buyer's request for material to meet a particular need?
a. Implied warranty of fitness for a particular purpose.
b. Material guarantee
c. Material warranty
d. Implied warranty of salability.
Answer: a
Which of the following is not usually included in the evaluation criteria of proposals from vendors or contractors:
a. Contract price
b. Life cycle cost & technical merit
c. Project management approach
d. Evaluation criteria may include any or all of the above items.
Answer: d
Which of the following type of specifications gives measurable capabilities of a product?
a. Functional specification
b. Conformance specification
c. Performance specification
d. Process capability specification
Answer: c
The comprehensive review of the procurement process from planning thru contract administration is referred to as:
a. Post project evaluation
b. Procurement audit
c. Procurement performance evaluation
d. None of the above.
Answer: b
Which of the following is not a part of the contract administration?
a. Performance control
b. Financial control
c. Contract award
d. All above is part of contract administration.
Answer: c
The procurement document used to solicit responses from potential contractors / sellers, primarily concerning price, is usually referred to as the:
a. Request for Proposal
b. Request for quotation
c. Invitation for bid
d. b or c
Answer: d
Which of the following is / are an appropriate reason / s to use financial incentives in a contract?
a. To increase overall schedule.
b. To reduce overall cost of the project
c. To attain the minimum performance required by the contract.
d. All of the above
Answer: b
What type of contract has a "ceiling" and "floor" (i.e max and min values) on the allowable profit?
a. CPIF
b. FPIF
c. T & M
d. None of the above
Answer: a
In which of the following type of specifications does a buyer carry most of the performance risk:
a. Functional specification
b. Performance specifications
c. Conformance specifications
d. Design specifications.
Answer: d
Which of the following is not part of the acquisition process?
a. Invitation to bid
b. Contract award
c. Notice to proceed
d. Source selection
Answer: c
Which of the following should be considered in the negotiation and selection of a contract type?
a. The degree of clarity, which the end product is defined.
b. Acts of god or acts of nature.
c. Price competition
d. All above except b.
Answer: c
The relationship between the budgeted actual cost, actual work completed and work planned will determine the
A. Schedule estimate at completion
B. Cost estimate at completion
C. Cost Performance Index
D. Schedule Performance Index
E. both a and b
Answer: A
All work packages are complete
A. at EAC time
B. when BAC is equal to EAC
C. when BCWP intersects BCWS
D. when schedule variance is zero
E. c and d
Answer: B
Earned value is
A. the base line plan
B. completed work value
C. cost/cost variance
D. percent over or under budget
E. a and b
Answer: B
You could tell Diane was worried about her project. Her folks had been working on the project since Independence Day. Here it was already Halloween and they were just finishing up work that was supposed to have been completed by Labor Day. "Oh dear", she confided to her friend, "Instead of completing by Christmas, at this rate I expect we won't be done until
A. New Year's Day
B. St. Patrick's Day
C. Easter
D. Mother's Day
E. the 4th of July
Answer: E
Diane was so concerned about her project that she woke up dreaming about it. She thought to herself, "Well, our BCWP is 2, our ACWP is 4 and our BCWS is 6, so that means
A. our productivity was less than planned
B. our cost estimate at completion is 6
C. our CPI and SPI are both positive
D. our cost variance is negative
E. a, c and d
Answer: E
The measurement which best shows the difference between actual work and actual costs is
A. Cost variance
B. Percent over or under
C. Schedule variance
D. CPI
E. this is not a valid measurement
Answer: A
Rework costs ____ times budgeted costs.
A. +75, -25
B. +25, -10
C. 85
D. 10 to 15
E. 25 to 50
Answer: E
If part of a project's costs will be paid in future years, the best way to determine the value of those costs in today's dollars is
A. estimated project payout
B. return on investment
C. net present value
D. discounted cash flow
E. internal rate of return
Answer: D
If the ACWP exceeds the BCWP, the cost estimate at completion will
A. increase
B. decrease
C. depend on the BCWS
D. exceed the schedule estimate at completion
E. a and d
Answer: A
If the BCWS = $1,000,000, the BAC = $2,000,000, the ACWP = $1,500,000, the BCWP = $500,000 and you're halfway through the project after two years, what is the cost estimate at completion?
A. $2,000,000
B. $4,000,000
C. $6,000,000
D. $8,000,000
E. Cannot be determined without the EAC
Answer: C
Cost management requires a critical look at future expenditures and the controls exercised over those expenditures. The three types of cost estimates through which project expenditures are made are ________.
A. rough order of magnitude, guestimate, and actual
B. traditional, classical, and contemporary
C. order of magnitude, budget, and definitive
D. concept, budget, and design
E. engineering, quoted, and definitive
Answer: C
The cost estimate with the most precise estimate (i.e., the smallest range of error) is the ________ estimate.
A. engineering
B. budget
C. concept
D. definitive
E. contingency
Answer: D
The cost estimate that has a range for error of minus 10 percent to plus 25 percent is the ________ estimate.
A. budget
B. definitive
C. parametric
D. analogy
E. contingency
Answer: A
There are usually two types of reserves in a project's budget. The ________ reserve is for cost variances from the plan because of inaccurate estimates or pricing and costs overruns, while the ________ is to accommodate costs for project work that were not included in the plan through error or oversight.
A. project; budget overrun allowance
B. engineering; management allowance
C. management; contingency allowance
D. management; mismanagement allowance
E. planned; unplanned work allowance
Answer: C
Feasibility studies are evaluations of both the technical and economic aspects of a potential project. In the economic area, one would look at such items as interest rates, present worth factors, capitalization costs, and ________.
A. human resource skills
B. depreciation costs
C. prospective projects managers
D. implementation of cost controls
E. availability of cost accounting methods
Answer: B
Project financing can be extremely complex and can come from a variety of sources. However, ________ is not a potential source of financing for a project.
A. borrowing money from a bank
B. selling stocks in the project or corporation
C. selling bonds on the project
D. selling lottery tickets on the project
E. leasing or renting existing property to another
Answer: D
Life cycle costing is a concept whereby all costs for a system are computed to determine the total cost of ownership. Life cycle cost categories include ________.
A. purchase, repair, and operation
B. development, procurement, and operation/maintenance
C. procurement, lease, and disposal
D. procurement, operation, and disposal
E. operation, maintenance, and storage
Answer: B
The integration of cost and schedule to provide measures of the project's performance is the earned value system, or contract performance measurement. The baseline for the earned value system is depicted as a slight "S" curve because ________.
A. there are fewer costs at project initiation until the work force is fully staffed
B. there are workers who have not been paid, so the expense is not shown on the chart
C. there are more expenses to get a project started than are required on a normal operating basis
D. this is just a traditional method of plotting the costs and has no relationship to the actual expenditures
E. this approximation has proven to be nearly correct when all costs and expenditures have been accounted for at project completion
Answer: C
The pricing of a project can be extremely complex in the development of valid cost estimates and price quotes from vendors. The tool that facilitates the pricing of a project by a structured decomposition of the total into individual elements of labor, material, and equipment is the ________.
A. project management plan
B. budget
C. responsibility matrix
D. configuration management plan
E. work breakdown structure
Answer: E
In estimating the cost of work, the best source of cost information can be obtained from the ________.
A. customer
B. historical records
C. senior engineers
D. top management
E. independent consultants
Answer: B
Setting up a cost control system requires matching the work packages to the cost accounting system. The direct mapping of the work packages to the accounting is accomplished by establishing a ________.
A. work package cost/price
B. work breakdown structure element
C. cost correlation matrix
D. computer coded bar chart
E. code of accounts
Answer: E
Cost overruns on a project have major impacts on the profitability of operations, but ________ do(es) not necessarily contribute to cost overruns of a project budget.
A. a change in contract scope
B. delays in schedule
C. lack of work force experience
D. integration uncertainty for project elements
E. contractor claims for out-of-scope work
Answer: A
Suppose the contingency allowance established to cover unforeseen activities of a project has been set at eight percent of the total project cost. The total dollars in the contingency allowance should be ________ as the project nears completion.
A. retained at the remaining dollar level
B. increased to meet unidentified surprises
C. decreased to reduce the accounting work
D. spent to ensure there is no extra money shown in the budget
E. reduced to a percentage of the remaining work
Answer: E
Suppose a contract has been in force for six months and the work is progressing, and then the buyer requests some changes in the design. The changes do not affect completed work but add some new items and subtract some existing items. The cost to the buyer to accomplish these changes is ________.
A. increased by the amount of added work
B. unchanged because the contract is in place
C. decreased because the work has not been started
D. unchanged because the buyer (customer) is always right
E. unknown because the cost of the changed work is not specified
Answer: E
In the earned values system, the focus is on "cost of work," which is divided into "scheduled" and "performed" work. This is further defined as "budgeted" and "actual" work. The formula "BCWP - BCWS" provides the ________.
A. cost difference
B. schedule variance
C. overrun conditions
D. schedule difference
E. cost variance
Answer: B
Indices can provide an indication of the status of a project. In the earned values system, there are two indices
Cost Performance Index (CPI) and Schedule Performance Index (SPI). The formula for CPI is ________.
A. ACWP/BCWS
B. ACWP/BCWP
C. BCWP/ACWP
D. BCWS/ACWP
E. BCWS/BCWP
Answer: C
Suppose that in the earned value system, the status of the project is reported as BCWS = 100, ACWP = 110, BCWP = 95. The project is now ________.
A. underspent and behind schedule
B. overspent and ahead of schedule
C. underspent and ahead of schedule
D. overspent and behind schedule
E. cannot be determined from available data
Answer: D
Projects have direct and indirect costs that the project manager must track to ensure the budget is not exceeded. The project manager has the most control over direct costs such as ________.
A. bonuses, fees, and awards
B. labor, materials, and equipment
C. labor, supervision, and fees
D. overhead, G&A, and fees
E. G&A, facilities, and transportation
Answer: B
A project is being advertised to solicit bidders. The buyer has asked for two types of price first, if payment is made in total upon completion of the project; second, if payment is made 50 percent at the midpoint of completion and 50 percent upon total completion. This is a two-year project that is being priced at $10,000,000 when the cost of money is not included. Assume money is borrowed in two equal increments-at the start of year 1 and year 2. If the interest rate over the two years is eight percent, the total bid under each option (i.e., payment at the end; payment at midpoint) is ________.
A. $11,844,000; $11,412,000
B. $10,400,000; $10,040,000
C. $10,800,000; $10,400,000
D. $11,232,000; $10,832,000
E. $12,484,000; $11,244,000
Answer: D
The cost of money and cash flow can adversely affect the financial status of the project. One method of encouraging early payment of invoices is to offer a discount for payment within a few days. If an invoice for $10,000 was paid within (x) days (see each possible answer for value of x), the method "two 10, net 30" would provide a savings of ________.
A. $100 (x = 30)
B. $200 (x = 30)
C. $300 (x = 10)
D. $200 (x = 10)
E. cannot be determined from available data
Answer: D
Project financial audits are used to determine the current status of the financial health of a project, but ________ is/are not an area for financial audit.
A. a project budget system
B. a project computer system
C. a project change control
D. a project status reporting
E. cash-flow projections
Answer: B
A project audit is often a three-step process using different skills to assess the condition of the health of the project. The first audit, or first audit opportunity, is at the ________ phase.
A. start of the planning
B. start of the implementation
C. end of the planning
D. end of the implementation
E. middle of the implementation
Answer: C
The budget for a project is the baseline from which future expenditures are measured. Of the following, ________ do(es) not cause change to the budget baseline during project implementation.
A. change orders to the contract
B. expenditures to buy materials
C. revised cost estimates made in-house
D. changes to subcontractor's scope of work
E. correction to the work breakdown structure to eliminate some tasks
Answer: B
In the earned value system for determining project status, there are several methods of accepting credit for the completion of work. In the most common method, full credit is allowed after the work package is complete. A second method is to allow full credit when 50 percent of the work package is complete to permit the performing contractor (seller) to receive credit for work-in-process. From the seller's point of view, ________.
A. either method is acceptable under an incremental payment schedule contract
B. the credit at 100 percent completion is better for either a lump-sum or incremental payment contract because the accounting is more accurate
C. the credit at 100 percent completion is better because the accounting lags the work-in-process by 30 days in any type of payment schedule
D. the credit at 50 percent completion is better because it improves the cash flow under an incremental payment schedule
E. the credit at 50 percent completion is better because it reduces the billing cycle
Answer: D
Because of the investment or risk associated with a project, the decision may be to ensure a high profitability. When this is the case, senior management should agree on profit ________ of the project.
A. capability at the beginning
B. margin (rate) at the midpoint
C. margin (rate) at the end
D. goals at the beginning
E. goals at the end
Answer: D
Estimating costs for a project is difficult because of the lack of historical cost records, the uncertainty regarding the future state of the economy, and the lack of understanding as to the full scope of work. Successive estimating is one method of accounting for the uncertainty of cost estimating by ________.
A. making three estimates and taking the average
B. continually making estimates as the project progresses
C. also including the range of potential error for an estimated item
D. using two or more cost estimating techniques to arrive at an average cost
E. delaying estimates until all information is acquired
Answer: C
The degree of uncertainty (lack of information) in a project affects the ability of cost estimators to make precise estimates to determine the total cost. One method to resolve the uncertainty is influence diagramming, which is used to evaluate ________.
A. price, net worth, and net present value
B. alternative outcomes, risk factors, and given quantities
C. risk factors, price, and alternatives
D. price, quantities, and time of purchase
E. risk factors, contract type, and project duration
Answer: B
The most accurate estimates (and the most expensive to produce) are _______.
A. analogous estimates
B. parametric estimates
C. top-down estimates
D. bottom-up estimates
E. function point estimates
Answer: D
The ________ identifies the project elements that costs will be allocated to.
A. work breakdown structure
B. PERT estimates
C. earned value
D. order of magnitude estimate
E. BCWR
Answer: A
The EAC is a forecasting technique based on past project performance. It can be calculated using the formula ________.
A. cumulative actuals + (ETC X CPI)
B. cumulative actuals + new estimate for cost of work remaining
C. cumulative actuals + remaining budget
D. all of the above
E. none of the above
Answer: D
The best way to manage the costs of change requests is to ________.
A. accept them orally
B. allow them to happen in ad hoc fashion
C. impose change unilaterally
D. document and authorize all changes
E. use the earned value system
Answer: D
Materials management is crucial to the success of the project when resources are needed at a specified time and place to ensure continued progress. An assessment of the materials costs should consider not only the cost of purchase but also ________.
A. transportation, deterioration, and storage
B. storage, damage, and deterioration
C. transportation, storage, and shortage
D. transportation, storage, and loss
E. quantities, storage, and damage
Answer: C
. Project financing is critical to large projects where neither the owner (buyer) or contractor (seller) has sufficient funds available to cover the costs incurred during project implementation. In such cases, a third party must provide the necessary capital. The third party evaluates the feasibility of financing the project based on ________.
A. the participants' business reasons for the project
B. the share of ownership to be retained
C. the level of risk the participants are to share
D. the project's anticipated cash flow and tax benefits, if any
E. all of the above
Answer: E
The financing plan for a project should detail the methods of obtaining and dispensing the capital over the full duration of the project. In preparing the plan and considering risk and reward, management should ensure that participants' credit standing is preserved, maximum leverage is used, tax benefits are optimized, flexibility is incorporated into ownership, and ________.
A. additional tax relief is pursued
B. lines of credit are opened
C. accesses to sources of new capital are maintained
D. maximum financing is used
E. late receipt of funds is avoided
Answer: C
Investors are often used to obtain the necessary financing for major projects, which can transfer the ownership to the investors. The system is then leased back for operation and use. The major advantage for the investors is ________ , and the major advantage for the user of the system is ________.
A. control of a business; low risk for operation and maintenance
B. high internal rate of return; favorable tax write-off
C. favorable tax write-off; new source of funds
D. ownership without risk of operation; favorable tax write-off
E. reduced quality (performance) risk; reduced cost risk
Answer: C
Which is not an element of procurement management?
A. Purchasing
B. Expediting
C. Acquisition
D. Marketing
E. C and D
Answer: E
The purchasing cycle consists of all the following elements except?
A. Defined Need
B. Transmit Need
C. Inspection
D. Price & Terms
Answer: C
The cost of corrective action taken by the purchaser and chargeable to the supplier under the terms of the contract is
A. Payment authorization
B. Bid cost considerations
C. Release payment
D. Back charge
Answer: D
__________ is a narrative description of the work to be accomplished or resource to be supplied.
A. Purchase order
B. Level of effort work
C. Scope of work
D. Contract stipulation
Answer: C
By which means is a contractor able to control costs overruns due to changing requirements?
A. Project Data review
B. Change order
C. Change Control
D. Contract negotiations
Answer: C
_________ is a written order directing the contractor to make changes according to the provisions of the contract documents.
A. Change order/purchase order Amendment
B. Contract order Modifications.
C. Contractor claim
D. Owner Directive
Answer: A
_________ is a request for interim stoppage of work due to non conformance, funding or technical considerations
A. Bid Protest
B. Stop Work order
C. Notice to Proceed
D. Supplier Default Notice
Answer: B
_________ defines when the work is ready for or is being used for the purpose intended and is so certified.
A. Final Completion
B. Substantial Completion
C. Final Acceptance
D. Mechanical Completion
Answer: B
The process that may be used by an unsuccessful supplier to seek remedy for a non award of work is
A. Bid Protest
B. Stop Work Order
C. Back charge
D. Contract Dispute
Answer: A
The __________ specification describes, defines or specifies the goods/services to be supplied.
A. Performance
B. Functional
C. Technical
D. Bid
E. General Requirements
Answer: C
The Bid Evaluation process is characterized by all of the following activities except?
A. Evaluation of suppliers financial resources
B. Ability to comply with technical specifications,
C. Delivery schedule and Cost factors
D. Performance Record
E. Competitors' method of sourcing
Answer: E
Which is not a consideration in a make or buy decision?
A. Cost factors
B. Sales Volume
C. Existence of sufficient administration/technical personnel
D. Political and, social factors with the organization
Answer: B
There are four methods of government procurement. Which is not one of these methods?
A. Assistance
B. Sealed Bidding
C. Competitive proposals
D. Acquisition
E. Small Purchases
Answer: D
A purchasing operation does not contain this classification of work
A. Management
B. Buying
C. Follow up and expedition
D. Marketing
E. Clerical
Answer: D
__________ is a register of suppliers invited to submit bids for goods/services as specified.
A. Procurement invitation
B. Bid List
C. Resource Identification
D. Supplier's Rankings
Answer: B
__________ is a formal invitation to submit a price for goods and/or services as specified.
A. Request for Quotation
B. Bid Response
C. Intention for Bid
D. Invitation for Bid
E. Request for Proposal
Answer: A
Which contract type should be used by the owner on a high risk project?
A. Cost Plus Percentage of Cost
B. Cost Plus Incentive Fee
C. Lump Sum
D. Fixed Price Plus Incentive Fee
E. C and D
Answer: C
Cost Reimbursable contracts are equivalent to
A. Progress Payment Contracts
B. Extra Work Order Contracts
C. Cost Plus Contracts
D. Fixed Price Contracts
Answer: C
Fixed price and incentive type contracts place responsibility for performance and financial risks associated with delay or non performance on the
A. Contractor
B. Owner
C. Lending Institution
D. Project Manager
Answer: A
__________ is based on information gathered and analyzed about demand and supply. This forecast provides a prediction of short and long term prices and the underlying reasons for those trends.
A. Sales forecast
B. Consumer Price Index
C. Production forecast
D. Price forecast
Answer: D
The contract is signed at the end of the
A. Pre-award phase
B. Award phase
C. Post-award phase
D. Solicitation phase
E. Award cycle
Answer: E
Definitive contract terms are spelled out in the
A. Pre-award phase
B. Award phase
C. Post-award phase
D. Purchasing phase
E. Pre-award phase for fixed cost contracts, and Award phase for cost plus contracts
Answer: C
A bilateral RFP is preferred to an invitation to bid when
A. supplier and terms are specified
B. the product or service is relatively low value and readily available
C. the product or service has high value and is unique
D. the product or service has high value, but is easy to obtain
Answer: C
PMI suggests which of the following behaviors as part of contract negotiations?
A. Protocol, probing, scratching
B. Sniffing and smelling (olfactory)
C. Touching and caressing (tactile)
D. Mind-reading and extra-sensory perception
E. None of the above
Answer: A
The bid package is developed in the
A. Requirements phase
B. Requisition cycle
C. Solicitation cycle
D. Award cycle
E. Award phase
Answer: B
The Award phase includes the
A. requirements, requisition and award cycles
B. award and contractual cycles
C. requisition and solicitation cycles
D. solicitation cycle
E. cycles required for the contract
Answer: D
To relieve pressure on the project schedule, Diane decided to fast-track and hire a contractor to do part of the work. Which form of contract(s) should she consider?
A. None. Fast-tracking is a very poor time to consider a contractor.
B. Fixed lump sum
C. Cost plus incentive
D. Cost plus percentage of cost
E. c and d
Answer: E
Which is not a factor in choosing a contractor?
A. Complexity of requirements
B. Price competition
C. Competency
D. Capacity
E. none of the above
Answer: E
Requirements and specifications are always changing in the systems integration business. Therefore, the best form of contract for this environment would be
A. the form of contract required to get the best contractor
B. Fixed price
C. Cost plus
D. Overseas
Answer: C
In the area of contracting, there are two basic types of contracts that reflect how the total price is determined. The ________ contract has an objective of a pre-determined end price while the ________ contract has an objective of a target end price.
A. full value; partial value
B. definitive; undefined
C. incentive fee; award fee
D. fixed price; cost-plus
E. end price; target price
Answer: D
A contract is a promise to provide goods and/or services to one party in return for something of value from that party. To define the goods, services, and something of value in a legal document, the contract must be comprised of ________.
A. an explicit work and product description
B. a generic statement of the requirements
C. a basic contract, a statement of work, a specification, and a list of documentation requirements
D. statements of the requirements using language that describes the physical characteristics and the amount of money to be paid for the delivered products
E. none of the above
Answer: C
The selection of the type of contract is important because of the cost risk involved. In most cases, the buyer (owner) will attempt to transfer the risk to the seller (project sponsor). The buyer, therefore, will always attempt to award a(n) ________ contract to the seller.
A. fixed price
B. cost-plus
C. time and materials
D. definitive
E. incentive fee
Answer: A
The buyer has not completely defined all the requirements for the project but has enough definition to start. The type of contract that will most likely be awarded while additional requirements are being finalized is the ________ contract.
A. letter
B. cost-plus
C. fixed price
D. variable price
E. temporary
Answer: B
Contracts may be written in any form that is understandable and enforceable, and often project personnel attempt to be "creative" in developing the document. Given a choice, it is best to ________ to meet the requirements of the project.
A. prepare a unique contract
B. tailor an old contract
C. use standard clauses in contracts
D. avoid using contractual documents
E. mix standard and unique clauses
Answer: C
A purchase order can be considered a contract with a vendor to provide a number of parts or components that will be used in project implementation. The purchase order becomes a "contract" when it is ________.
A. issued by the project procurement section
B. received by the vendor
C. filled by the vendor
D. accepted and signed by the vendor
E. completed through delivery of the products by the vendor
Answer: D
The marketplace often dictates the price of products and services through competitive or non-competitive supply situations, which will vary from many suppliers to one supplier. However, ________ is not a market condition.
A. mixed competition
B. pure competition
C. monopolistic competition
D. oligopoly
E. monopoly
Answer: A
The contracting process for the negotiation and legal execution is divided into pre-award, award, and post-award phases and five cycles that describe the activities under the phases. The first cycle under the pre-award phase is the ________ cycle.
A. requisition
B. requirement
C. solicitation
D. award
E. contractual
Answer: B
Project management, as an integration function, has the need to either make or buy components of the system. The decision to make or buy is based on all the following but ________.
A. availability of people
B. availability of funds
C. technology/know-how
D. availability of contractors/manufacturers
E. price
Answer: B
A contract is a stand-alone legal document and must be individually managed to ensure the proper performance. Many projects have several contracts to be initiated and executed throughout the life of the project. Therefore, it is best to have a ________ that anticipates and describes the types of contracts required for the project.
A. responsibility matrix
B. listing of contracts
C. contracting manual
D. project contract management plan
E. project configuration management plan
Answer: D
Contracts for projects require revisions to meet the project needs as those needs evolve. The correct method of initiating a change to the contract is to prepare a ________ for submission to the customer (buyer).
A. change notice
B. new contract
C. change order
D. proposal
E. plan
Answer: D
Changes to a contract are approved and signed by both the buyer and seller as the desired performance requirements. These changes are ________.
A. separate contracts between the customer and the project
B. stand-alone subcontracts to the prime contract
C. an integral part of the prime contract as an amendment
D. secondary in legality to the prime contract
E. primary in legality and the prime contract becomes secondary
Answer: C
The concept of warranty is based upon one party's assurance that the product or service will meet certain standards of quality, including ________.
A. function, performance, durability, and desirability
B. appearance, desirability, reliability, and maintainability
C. desirability, reliability, durability, and maintainability
D. reliability, maintainability, function, and repairability
E. condition, reliability, description, and function/performance
Answer: D
Warranties are given in two manners, either implied or expressed. The implied warranty differs from the expressed warranty in that the implied warranty ________.
A. is always given by a sales person
B. is always written at the time of sale
C. gives specific descriptions of the product's qualities
D. is not a recorded statement of the characteristics of the product
E. none of the above
Answer: D
A project manager may issue a "waiver" on items received from a vendor because the items are less than the purchase order specified. If the project manager knowingly accepts faulty material, the vendor is usually ________ any damages that the material may cause.
A. held responsible for
B. relieved of responsibility for
C. made to pay a percentage of
D. willing to repair/correct
E. not paid in the amount of
Answer: B
A contract may include a clause that imposes a penalty on the project for late delivery of the completed system. Although the contract specifies a specific monetary penalty for delays, the key(s) to the issue is/are ________.
A. whether the delays were necessary for safety
B. whether the delay could be anticipated by the project manager
C. who caused the delay (buyer or seller) and the nature of the interruption
D. why the delay affected the delivery of the system
E. all of the above
Answer: C
A contract is a promise to provide goods and/or services to one party in return for something of value from that party. To define the goods, services, and something of value in a legal document, the contract must be comprised of ________.
A. an explicit work and product description
B. a generic statement of the requirements
C. a basic contract, a statement of work, a specification, and a list of documentation requirements
D. statements of the requirements using language that describes the physical characteristics and the amount of money to be paid for the delivered products
E. none of the above
Answer: C
The selection of the type of contract is important because of the cost risk involved. In most cases, the buyer (owner) will attempt to transfer the risk to the seller (project sponsor). The buyer, therefore, will always attempt to award a(n) ________ contract to the seller.
A. fixed price
B. cost-plus
C. time and materials
D. definitive
E. incentive fee
Answer: A
The buyer has not completely defined all the requirements for the project but has enough definition to start. The type of contract that will most likely be awarded while additional requirements are being finalized is the ________ contract.
A. letter
B. cost-plus
C. fixed price
D. variable price
E. temporary
Answer: B
Contracts may be written in any form that is understandable and enforceable, and often project personnel attempt to be "creative" in developing the document. Given a choice, it is best to ________ to meet the requirements of the project.
A. prepare a unique contract
B. tailor an old contract
C. use standard clauses in contracts
D. avoid using contractual documents
E. mix standard and unique clauses
Answer: C
A purchase order can be considered a contract with a vendor to provide a number of parts or components that will be used in project implementation. The purchase order becomes a "contract" when it is ________.
A. issued by the project procurement section
B. received by the vendor
C. filled by the vendor
D. accepted and signed by the vendor
E. completed through delivery of the products by the vendor
Answer: D
The marketplace often dictates the price of products and services through competitive or non-competitive supply situations, which will vary from many suppliers to one supplier. However, ________ is not a market condition.
A. mixed competition
B. pure competition
C. monopolistic competition
D. oligopoly
E. monopoly
Answer: A
The contracting process for the negotiation and legal execution is divided into pre-award, award, and post-award phases and five cycles that describe the activities under the phases. The first cycle under the pre-award phase is the ________ cycle.
A. requisition
B. requirement
C. solicitation
D. award
E. contractual
Answer: B
Project management, as an integration function, has the need to either make or buy components of the system. The decision to make or buy is based on all the following but ________.
A. availability of people
B. availability of funds
C. technology/know-how
D. availability of contractors/manufacturers
E. price
Answer: B
A contract is a stand-alone legal document and must be individually managed to ensure the proper performance. Many projects have several contracts to be initiated and executed throughout the life of the project. Therefore, it is best to have a ________ that anticipates and describes the types of contracts required for the project.
A. responsibility matrix
B. listing of contracts
C. contracting manual
D. project contract management plan
E. project configuration management plan
Answer: D
Contracts for projects require revisions to meet the project needs as those needs evolve. The correct method of initiating a change to the contract is to prepare a ________ for submission to the customer (buyer).
A. change notice
B. new contract
C. change order
D. proposal
E. plan
Answer: D
Changes to a contract are approved and signed by both the buyer and seller as the desired performance requirements. These changes are ________.
A. separate contracts between the customer and the project
B. stand-alone subcontracts to the prime contract
C. an integral part of the prime contract as an amendment
D. secondary in legality to the prime contract
E. primary in legality and the prime contract becomes secondary
Answer: C
The concept of warranty is based upon one party's assurance that the product or service will meet certain standards of quality, including ________.
A. function, performance, durability, and desirability
B. appearance, desirability, reliability, and maintainability
C. desirability, reliability, durability, and maintainability
D. reliability, maintainability, function, and repairability
E. condition, reliability, description, and function/performance
Answer: D
Warranties are given in two manners, either implied or expressed. The implied warranty differs from the expressed warranty in that the implied warranty ________.
A. is always given by a sales person
B. is always written at the time of sale
C. gives specific descriptions of the product's qualities
D. is not a recorded statement of the characteristics of the product
E. none of the above
Answer: D
A project manager may issue a "waiver" on items received from a vendor because the items are less than the purchase order specified. If the project manager knowingly accepts faulty material, the vendor is usually ________ any damages that the material may cause.
A. held responsible for
B. relieved of responsibility for
C. made to pay a percentage of
D. willing to repair/correct
E. not paid in the amount of
Answer: B
A contract may include a clause that imposes a penalty on the project for late delivery of the completed system. Although the contract specifies a specific monetary penalty for delays, the key(s) to the issue is/are ________.
A. whether the delays were necessary for safety
B. whether the delay could be anticipated by the project manager
C. who caused the delay (buyer or seller) and the nature of the interruption
D. why the delay affected the delivery of the system
E. all of the above
Answer: C
Performance bonds are required by some contracts to ensure the project is completed and the system functions as specified. A performance bond should never be for less than ________ percent of the contract price.
A. 25
B. 50
C. 75
D. 100
E. none of the above
Answer: D
Payment bonds are often required by the contract and require specific actions under the stated conditions. Payment bonds are specifically designed to ensure payment of ________ by the prime contractor.
A. insurance premiums
B. weekly payrolls
C. incremental earned value charges
D. subcontractors, laborers, and materials
E. damages for accidents caused
Answer: D
. Some contracts are not completed because the contractor fails or refuses to complete the contractual conditions. This situation is called a ________ for which damages can be assigned.
A. breech
B. stop-work
C. flawed contract
D. contract in situ
E. none of the above
Answer: A
The time of delivery for a contract is often specified to ensure that both parties, the buyer and seller, understand the need for the product, service, or system on or before that date. When a time is not specified in a contract, it is assumed that performance must be completed ________.
A. at the same pace as other work
B. sooner than contracts of a lesser dollar value
C. in the order in which the work (contract) was accepted
D. as soon as possible, but without causing the seller any additional expense
E. within a reasonable time
Answer: E
The project manager is responsible for all the activities within a project and interfaces with external functions, all of which consume his/her time. Therefore, when a contract administrator is assigned to the project, the project manager ________ the contract.
A. does not need to manage
B. can transfer all responsibility to the contract administrator for matters related to
C. must still manage all major aspects of
D. must know only the general contents of
E. is not concerned with the management of
Answer: C
The final step on a project is the close-out phase where all activities are to be terminated in a business-like fashion. From a contractual point of view, the prime consideration is to determine ________.
A. the profit made on this project
B. who must be notified that the contract is completed
C. the degree to which the project met the provisions of the contract
D. what reports are required to terminate the contract
E. how many changes were made in the course of the project and whether all the changes are accounted for
Answer: C
. In initiating a contract, the primary focus is on obtaining a product or service without regard for the termination. The contract for goods or services should have a termination provision (after successful completion) that ________.
A. fixes on a date that designates completion
B. permits adjustments to the perceived termination, when necessary
C. requires a specific action on the part of the seller and the buyer
D. requires the seller to demonstrate the product's capability
E. requires the buyer to formally accept the product on a specific date
Answer: C
. The language of contracts does not preclude misunderstanding and situations that adversely affect project completion. Therefore, a contract should always have a method of removing the obstacles to progress. One method is to form a ________ committee to address matters that the project manager and the customer's representative cannot handle.
A. top management
B. disputes resolution
C. problem processing
D. steering
E. none of the above
Answer: B
It is important to review the performance of subcontractors during post-contract evaluations. This review establishes the baseline for ________.
A. payment of current bills and incentive bonuses
B. demonstrated performance and future potential
C. future pricing and costs
D. work measurement and work standards
E. none of the above
Answer: B
. Project contracts can be separated into two broad categories
A. how the work is to be performed; who will perform the work
B. what procedures are to be used; how the work will be performed
C. when the work is to be performed; what performance standards will be used
D. what the contractor (seller) is to provide; how the work is to be performed
E. who may be used to perform the work; the procedures to be used
Answer: D
. In a cost-reimbursable contract, the owner (buyer) accepts most of the ________. Therefore, the owner has more input as to how the work is accomplished as compared to a fixed price contract.
A. risk and exercises more control over the project
B. cost and has a greater interest in the schedule
C. design work and influences the end product
D. project management and daily direction of the work force
E. planning function and cost disbursements for the project
Answer: A
. During the proposal and bidding phase, the owner (buyer) must assess the capability of the contractor (seller) to perform the work. For example, if the owner believes the proposed team consists of some individuals who do not have the requisite qualifications and suggests that these individuals be replaced, the contractor should ________.
A. disregard the owner's suggestions unless it precludes the contractor from obtaining the contract
B. immediately make changes to follow the owner's suggestions although the contractor believes the replacements are less qualified
C. discuss the suggestions with the owner and clarify the qualifications of individuals prior to making a change
D. tell the owner that personnel working on the contract are not his/her responsibility and make no changes
E. tell the owner that the individuals will be replaced and ignore the situation (the owner is not responsible for personnel selection)
Answer: C
The contractor (seller) accepts all liability for engineering errors, poor workmanship, and consequential damages under a(n) ________ contract.
A. letter
B. incentive fee
C. cost-plus
D. fixed price
E. variable production
Answer: D
. Contracting for project work follows a set sequence of activities that ensures a favorable contracting strategy. The sequence of contracting activities includes the following
A. receive proposals; evaluate proposals; select winner
B. prepare proposals; submit proposals; select bidder
C. prepare proposals; receive proposals; review proposals
D. receive invitation for bid; review invitation for bid; submit bid
E. prepare proposals; review proposals; submit proposals
Answer: D
Contractor screening is important to ensure that candidates are capable of performing the work and the number is neither excessive, which will make the proposal evaluation process difficult, nor too few, which will minimize the competition. The four key items to be used in contractor screening are ________.
A. capacity, experience, capability, and interest
B. capital, capacity, experience, and location
C. experience, interest, financial stability, and skills
D. facilities, capital, capacity, and capability
E. industry, experience, risk, and cost
Answer: A
A request for proposal (RFP) is used to
A. establish a project master plan.
B. establish project baselines.
C. create project budgets.
D. solicit bids from contractors.
E. maintain control over unauthorized work changes.
Answer: E
. When invitations for bid are issued to the contractors, the bids (proposals) must be submitted in a standard format because ________.
A. the owner (buyer) has a format that he/she routinely uses and wants to force the contractors to meet his/her requirements
B. the Uniform Commercial Code specifies that all proposals will comply with the law and the standard format
C. the government has specified that proposals must meet the requirements of contract law and this assures the incorporation of all items
D. the Association of Contractors has prescribed the format to which all bidders must comply to meet a legal proposal
E. it gives the greatest assurance that all items are covered and the proposals can be evaluated in a uniform manner
Answer: E
Submission of proposals to perform work is the avenue for acquiring most projects. The proposals, when submitted, must contain specific items to obligate or bind the tendering organization. The most important item is ________.
A. the complete description of the work to be performed
B. the list of terms and conditions
C. the signature of a corporate officer
D. a statement of work that describes how the work will be accomplished
E. a price for the complete work to be performed
Answer: C
The most critical aspect of selecting a contractor and awarding a contract is the proposal evaluation (or bid review) process. The evaluators must be aware of the need to balance fact versus judgment, objective versus subjective reasoning, work tasks versus costs, time versus price, and ________.
A. certainty versus uncertainty
B. quality versus cost
C. quality versus price
D. risk versus opportunity
E. none of the above
Answer: D
. Contracting is a means of obtaining required goods and/or services that are required to meet the needs of a project. The contract defines the legal relationship between the participants and what each participant is expected to do before the contract can be concluded. The contract also forms a ________ in which the participants strive to work toward the common goal of successfully completing the legal obligations in the most efficient manner.
A. union
B. partnership
C. consortium
D. single team
E. situation of opposition
Answer: A
. The proposal preparation is in itself a short-term project that requires intense effort to be completed in the owner's (buyer's) format and time frame, while being responsive to the requirements of the formal invitation for bid. A company bidding for projects can ease the workload and enhance the potential for successfully "winning" contracts by ________.
A. appointing the proposal manager early in the process
B. identifying a proposal staff early in the process
C. having a technical information data base
D. having standard scopes of services
E. all of the above
Answer: E
Similar to a small project, the proposal preparation process is started by a ________ meeting where the technical, legal, and compensation considerations are reviewed and assignments of responsibility are made.
A. preliminary proposal
B. planning and approval
C. kickoff
D. technical assessment
E. staff assignment
Answer: C
. When entering into a contract, it is often assumed that the performance of the work will be as specified and no disputes will be raised during the performance period. On the contrary, it is better to assume that there will be disputes and include a procedure in the contract as to the means for dispute resolution because ________.
A. contracts, by their very nature, create situations where disputes will arise, but they can be easily resolved with good procedures
B. the tracking of claims is important for the best "win" position during the subsequent litigation
C. disputes must be brought before the National Contract Arbitration Board to obtain equitable resolution
D. there will be a hostile relationship between the contract participants once the contract is signed
E. it is more economical to resolve disputes as soon as claims are made and before time and effort are wasted
Answer: A
. A contract is a promise to do or not do something in exchange for some form of consideration. A negotiated contract is one where both participants agree on the basis for principal considerations
A. the period of performance and the specifications for the project
B. how the work will be performed, at what time, and for what price
C. the services to be rendered by one party and the price to be paid by the other party
D. who will perform the work and who will pay for the work
E. the description of services to be rendered and the description of the payment and payment schedule
Answer: C
In abstract theory, a contract is not essential to the performance of a project. Contracts are, however, useful when the performance involves ________ , particularly when they are interdependent.
A. personnel, money, and material
B. cost, schedule, and quality
C. new, unique, and complex work
D. substantial, complex, and extended commitments
E. subcontractors, vendors, and suppliers
Answer: D
When making the project procurement plan, the project manager should consider all of the following EXCEPT
A. Preliminary cost estimates
B. Market conditions
C. Project funding availability
D. Application area extensions
E. Product descriptions
Answer: D
. Procurement documents should have all of the following attributes EXCEPT
A. Facilitating accurate and complete responses
B. Including a complete statement of work
C. Describing the desired form of response
D. Including the list of potential bidders/respondents
Answer: D
A request for bid differs from a request for proposal in that the
A. RFP is used when source selection will be price driven
B. RFP is used when the project time-frame is limited
C. RFB is used when source selection will be price driven
D. RFP disregards price considerations
E. RFB is concerned with price exclusively
Answer: C
. Contract administration change requests may include all of the following EXCEPT
A. Modifications to the terms of the contract
B. Termination of the contract if the seller's work is unsatisfactory
C. Modification to the description of the product or service to be provided
D. Seller invoices
E. Contracted changes
Answer: D
Which of the following is true about the advertising in the solicitation process? I. It is sometimes required on public projects II. It is an effective method of expanding the list of potential bidders III. It can cause public pressure resulting in bid disputes
A. I only
B. Ii only
C. I and II only
D. I and III only
E. I, II, and III
Answer: C
Which type of contract provides the highest risk to the Owner (Buyer)?
A. Cost Plus Percentage of Cost
B. Cost Plus Fixed Fee
C. Firm Fixed Price
D. Fixed Price Plus Incentive Fee
E. Cost Plus Incentive Fee
Answer: A
In negotiations, what is a fait accompli tactic?
A. Accomplishing the phase before the other side is ready
B. Pretending to accept the other side's offer
C. Claiming an issue has already been decided on and cannot be changed
D. Acting in good faith
E. Promising that a requirement will be completed before it is due
Answer: C
An expressed warranty
A. Is provided by the sales manager
B. Is a statement of the characteristics of the product
C. Covers a longer period than the implied warranty
D. Is the best guarantee to the buyer
E. Can be sold separately
Answer: B
The project's contractor payment system should include
A. An administrative review
B. The contractor submission
C. A review of work performed
D. Negotiations over price
E. A viable account payable system
Answer: D
The contract administrator should provide ___________ at formal closure of project I. Formal notice of project completion to the contractor II. Letters of commendation to all project staff III. Formal notice of acceptance to the contractor IV. Internal notice to senior management/buyer
A. I only
B. IV only
C. I and III only
D. II and IV only
E. I, III, and IV only
Answer: C
Which type of contract should be used for a well-defined project
A. Unit price contract
B. Fixed price contract
C. Cost reimbursable contract
D. Partnership contract
E. A unit price contract that disallows such contracting
Answer: B
Contract close-out documentation includes all of the following EXCEPT
A. Technical documentation
B. Financial documents
C. The RFP or RFB and seller's working proposal
D. Results of contract-related inspections
Answer: C
. Potential contract changes should be
A. Postponed as long as possible to protect the budget
B. Viewed as negative, quantified, and tabulated
C. Quantified and fed back through the project planning and procurement processes
D. Reviewed by senior management and the buyer
E. Submitted for bids to the relevant vendor list
Answer: C
The purpose of a procurement audit is to do all of the following EXCEPT
A. Maintain a complete file of contract-related records
B. Determine if all required work has been completed
C. Determine if the bid documents used were effective
D. Determine if the contract change control system was effective
E. Identify successes and failures and their implications
Answer: A
When the procurement item is available from only one supplier, all of the following evaluation criteria should be identified and documented to support an integrated assessment EXCEPT
A. Management approach
B. Financial capacity
C. Life cycle cost
D. Technical capabilities
E. Mode of delivery
Answer: E
All of the following methods are available to the project manager for short-listing contract proposals EXCEPT
A. Comparing proposals against independent estimates
B. Weighting systems
C. Subjective screening systems
D. Resource distribution system
E. Negotiation
Answer: D
Which terms are used to describe contested changes when the seller and project management team disagree on compensation for the change? I. Appeals II. Mediation III. Claims IV. Disputes V. Arbitration
A. I and III only
B. II and IV only
C. IV and V only
D. I, III, and IV only
E. II, III, and V only
Answer: D
FFP is an acronym for
A. Free Flow Performance
B. Fundamentally Fixed Price
C. Firm Fixed Price
D. Free Form Project
E. Fixed File Procurement
Answer: C
The buyer has negotiated a cost-plus-incentive fee contract with the seller. The contract has a target cost of $300k, a target fee of $40K, a share ration of 80/20, a maximum fee of $60K, and a minimum fee of $10K. If the seller has actual costs of $380K, how much fee will the buyer pay?
A. $104K
B. $56K
C. $40K
D. $30K
E. $24K
Answer: E
Which of the following terms is an expression by one party of its assent to certain terms in the contract provided that the other party expresses its assent to the identical terms?
A. Proposal
B. Counter-offer
C. Bargain
D. Offer
E. Exchange
Answer: D
Which term describes the failure by either the buyer or seller to perform part or all of the duties of a contract?
A. Termination of contract
B. Partial performance
C. Breach of contract
D. Contract litigation
E. Contract waiver
Answer: C
Which of the following practices is NOT an important element of effective contract administration?
A. Preparing contract change documentation
B. Processing payment vouchers
C. Establishing the appropriate contract type
D. Implementing a contract change control system
E. Preparing monthly contract status reports for the buyer
Answer: C
When actual costs exceed estimated costs without any change in the scope of work, the project is experiencing
A. Accelerated costs
B. Cost growth
C. Schedule compression
D. Cost overrun
E. Cost risk
Answer: D
Contract type selection is dependent on the degree of risk or uncertainty facing the project manager. From the perspective of the buyer, the preferred contract type in a low-risk situation is
A. Firm-fixed-price
B. Fixed-price-incentive
C. Cost-sharing
D. Cost-plus-fixed fee
E. Cost-plus-a-percentage-of-cost
Answer: A
Generally speaking, compensation to a contractor in a cost contract is based on
A. Actual costs incurred based on the contractor's best efforts
B. The amount of time required to complete the contract
C. Delivery of the goods and services stipulated in the contract
D. The number of resources used
E. Actual costs incurred minus profit if the cost ceiling was exceeded
Answer: A
The process of monitoring contract performance, making payments, and awarding contract modifications occurs during
A. The pre-award phase
B. The award phase
C. Contract administration
D. Contract formation
E. Contract resolution
Answer: C
Which term describes those costs that are traceable to or caused by a specific project work effort?
A. Variable
B. Direct
C. Indirect
D. Fixed
E. Semi-variable
Answer: B
Subcontracting may be the best option when
A. The subcontractor possesses special technical or engineering skills
B. The performing organization possesses limited capacity in an area
C. The subcontractor can augment the contractor's labor force at a lower cost than an in-house capability can be maintained
D. A and C
E. A, B, and C
Answer: E
During negotiation, the seller takes exception to the buyer's terms and conditions and proposes different terms and conditions. Which negotiation technique is the seller using?
A. Recommendation
B. Rejection of offer
C. Separate offer
D. Suggestion
E. Counter-offer
Answer: E
Which of the following contract types places the greatest risk on the seller to control costs?
A. Fixed-price with economic price adjustment
B. Fixed-price incentive (firm target)
C. Firm-fixed-price
D. Cost-plus-award fee
E. Cost-plus-incentive fee
Answer: C
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-sharing
B. Cost-plus-award fee
C. Cost-plus-fixed fee
D. Cost-plus-incentive fee
E. Cost-plus-a-percentage-of-cost
Answer: E
The purpose of the bidders' conference is to
A. Ensure that prospective sellers have a clear, common understanding of the buyer's requirements
B. Confirm which bidders are going to be considered in the procurement
C. Ensure that all qualified sellers are on the qualified sellers list
D. Obtain detailed information on the prospective sellers' past performance
E. Ensure that all bidders attending the conference receive amendments
Answer: A
A specification that describes the buyers requirements with special dimensions, tolerances, or features, such as chemical or electronic requirements and that is accompanied by engineering drawings, is called a
A. Design specification
B. Functional specification
C. Performance specifications
D. Commercial standard
E. Qualified product
Answer: A
The language of contracts sometimes causes misunderstandings and creates situations that adversely affect project completion. Therefore, a relatively fast and informal method for removing the obstacles to progress should always be available. One such method is to submit the issue in question to an impartial third party for resolution. This process is known as
A. Cause of action
B. Alternative dispute resolution
C. Problem processing
D. Steering resolution
E. Mediation litigation
Answer: B
The legal contractual relationship that exists between the buyer and the seller is called
A. Caveat emptor
B. Apparent authority
C. Contract privity
D. Terms and conditions
E. Force majeure
Answer: C
Japanese quality control has improved dramatically in the last 30 years for all of the following reasons except
A. The use of quality control circles
B. Small, continuous improvements in quality control
C. The use of worker suggestion systems
D. The use of quality control charts
E. Focusing quality control efforts on production output
Answer: E
Quality management deals with all of the following topics except
A. Conformance to requirements/specifications
B. Satisfying the needs of the customer
C. Making Products more desirable and luxurious
D. A and C
E. B and C
Answer: C
Which of the following statements about the cost of quality are true?
A. The cost of quality is the expense of nonconformance to requirements and specifications
B. The costs of quality are mostly the direct responsibility of workers who are manufacturing the product
C. Quality control programs should only be implemented when the costs of quality are excessive
D. a and B
E. a and C
Answer: A
The zero defects concept
A. Is a performance standard for management
B. Is a motivational technique that promotes "doing it right the first time".
C. Is used by management to communicate to all employees that everyone should do things right the first time.
D. A and C
E. B and C
Answer: D
Quality assurance
A. Refers to the prevention of product defects
B. Is an auditing function that provides feedback to the project team and Client about the quality of output being produced
C. Is the technical process that includes the construction of control charts which specify acceptability limits for conforming output
D. A and B
E. b and C
Answer: B
Financial compensation is the primary motivational tool for which of the following management theories or programs?
A. Zero Defects program
B. Theory X management
C. Theory Y management
D. Quality Control Circles
E. A and C
Answer: B
In the project environment, the individual ultimately responsible for quality control is
A. The line workers who must strive "to do things right the first time' to avoid quality problems
B. The company's quality control manager who must work with the project members to ensure the quality control program is effective
C. The head of the production department who retains ultimate quality control responsibility for all the company's projects
D. The project manager who has ultimately responsibility for the entire project
E. The customer who must ensure that he is receiving a quality product from the vendor
Answer: D
An acceptance control chart has limits that are based on the specification limits for the product rather than limits which differentiate between random and assignable causes. Under which of the following circumstance should a QC manager consider using an acceptance control chart?
A. When the engineering tolerance on a dimension greatly exceeds the natural dispersion of the manufacturing process
B. When the number of samples outside the current control chart limits become too costly and Cumbersome to investigate
C. When a process is subject to constant but stable tool wear
D. A and B
E. A and C
Answer: E
The majority of product defects could be prevented in most processes if manufacturers would do the following
A. Increase the use of acceptance control charts instead of standard three-sigma control charts
B. Make a concerted effort to eliminate the potential for product defects in the design stage
C. Create a quality control department
D. A and B
E. A and C
Answer: B
Quality attributes
A. Are used to determine how effectively the organization accomplishes its goals
B. Can be objective or subjective in nature
C. Are specific quality characteristics for which a product is designed, built, and tested
D. A and B
E. B and C
Answer: E
Most quality problems
A. Originate in the quality department where the ultimate responsibility for quality rests
B. Originate on the shop floor because of waste and product rework
C. Are the result of management inattention to potential quality improvement ideas
D. Could be eliminated if shop supervisors monitored their workers more closely
E. A and B
Answer: C
The Pareto Principle is a technique used by quality managers to determine which quality control problems concerning a particular service or manufacturing process should be corrected. Which of the following statements best represents the philosophy employed by this principle?
A. In order to minimize financial losses from quality control problems, all problems which have a measurable cost associated with them should be corrected.
B. The majority of defects are caused by a small percentage of the identifiable problems. Improvement efforts should be reserved for these few vital problems.
C. In order to achieve zero defects, all quality control problems, including those which do not have a direct financial cost, should be corrected.
D. Generally, 80% of the quality control problems are justifiable for correction via cost-benefit analysis. The remaining 20% are not financially worthy of improvement efforts.
E. A and d
Answer: B
The Japanese Quality Control (QC) Circle movement motivated its participants in many ways. Which of the following represents the most important motivation for the QC circle participant
A. Improving the performance of the company
B. Self-improvement
C. Financial incentives
D. Recognition among co-workers
E. Strengthening of relationships between co-workers.
Answer: A
In order to achieve long-term quality improvements, management must do the following
A. Motivate the employees with seminars, contests, and institution of programs such as "Quality Improvement" day
B. Create a quality control department and give the head of the department ultimate responsibility for quality improvement
C. Implement of a formal quality control program with worker and management involvement
D. Establish financial incentive packages for workers
E. A and D
Answer: C
Quality assurance is
A. top management's intention regarding quality
B. functions determining implementation of the quality policy
C. actions to provide confidence of satisfying quality requirements
D. responsibilities and processes which implement quality management
E. all of the above
Answer: C
Quality is
A. zero defects
B. a problem
C. a specification
D. a cost
E. a, c and d
Answer: C
Which are the best two charts to show trends in a process?
A. Pareto and Control
B. Control and Run
C. Histogram and Run
D. Gantt and Pert
E. Gantt and CPM
Answer: B
If the acceptance sampling attribute for a lot is 30%, this means that
A. 30% of all lots must be tested
B. 30% of all lots must pass the test
C. any given lot must have 30% or fewer defects
D. a sample of a given lot must have 30% or fewer defects to pass the entire lot
E. c and d
Answer: D
The pillar(s) of quality is (are)
A. Quality is free
B. Doing it right the first time
C. Zero defects
D. Process improvement
E. B and C
Answer: E
When a product or service completely meets a customer's requirements
A. quality is achieved.
B. cost of quality is high.
C. cost of quality is low.
D. the customer pays the minimum price.
E. a and b.
Answer: A
Using Pareto's Rule, and given the data in the following table, where should corrective action focus? Origin of problem % of problems Design 80 Development 2 Prototype 9 Testing 6 Fabrication 3"
A. Design
B. Design, development, and prototype
C. Design and prototype
D. Development, prototype, and fabrication
E. None of the above
Answer: A
Cost of quality is a concept that includes
A. the cost necessary for ensuring conformance to requirements.
B. the life cycle cost of the project.
C. all research and development costs related to the project.
D. only the cost of the quality control function
E. a and b.
Answer: A
The process of determining that technical processes and procedures are being performed in conformance with scope requirements and quality plans is called quality
A. management.
B. assurance.
C. process review.
D. control.
E. checks.
Answer: D
Quality control is
A. identifying which quality standards are relevant to the project and determining how to satisfy them.
B. monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance.
C. evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality) standards.
D. taking action to increase the effectiveness and efficiency of the project so as to provide added benefits to both the performing organization and the project customer.
E. assuring the production of goods that meet the highest standards of luxury.
Answer: B
Quality planning is
A. identifying which quality standards are relevant to the project and determining how to satisfy them.
B. monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance.
C. evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards
D. taking action to increase the effectiveness and efficiency of the project so as to provide added benefits to both the performing organization and the project customer.
E. assuring the production of goods that meet the highest standards of luxury.
Answer: A
Quality management includes forming and directing a team of people to achieve a qualitative goal within an effective cost and time frame that results in
A. a project completed in the shortest possible time.
B. a product or service that conforms to the requirement specification.
C. an award-winning product that brings public recognition to the project.
D. an innovative project that establishes the qualifications of the project team.
E. B and C.
Answer: B
According to current quality management thinking, which of the following approaches to quality improvement is least likely to produce positive results ?
A. increased inspection
B. Continuous improvement
C. Quality circles
D. Statistical quality control
E. Use of worker suggestion systems
Answer: A
The concept that states "the optimal quality level is reached at the point where the incremental revenue from product improvement equals the incremental cost to secure it" comes from
A. quality control analysis.
B. marginal analysis.
C. standard quality analysis.
D. conformance analysis.
E. systems analysis.
Answer: B
Which of the following best characterizes the results of an increase in quality*?
A. increased productivity, increased cost-effectiveness, and decreased cost risk.
B. Reduced productivity and no change to cost-effectiveness or cost risk.
C. Reduced productivity and an increase in overall product or service cost.
D. increased productivity and cost-effectiveness.
E. increased productivity, decreased cost-effectiveness and increased cost risk.
Answer: A
Which of the following statements regarding quality is false?
A. Quality improvement depends upon better definition and increased awareness of the requirements specifications.
B. Future gains in quality will often rely on advanced technology.
C. Recognition of key actions required of each team member is necessary to meet quality objectives.
D. Computer-aided design systems can improve quality, but only at the expense of an increase in the cost of design.
E. A and C.
Answer: B
You are sampling items from a batch and plotting the results on a control chart. How will an increase in the number of items in the sample affect the value of the standard deviation used to set the control limit?
A. increase it.
B. Decrease it.
C. No effect on it.
D. First increase it, then decrease it.
E. First decrease it, then increase it.
Answer: B
If the level of conformance directly increases as a result of new processes. different resources, or changed methods. the required cost of monitoring is likely to
A. increase as well.
B. remain the same.
C. decrease.
D. decrease initially then increase slightly.
E. increase then tend to level off
Answer: C
The primary driver(s) behind the demand for continual quality improvement is/are
A. an increase in the number of projects being worked.
B. the government cost improvement reports that have created widespread public interest in quality.
C. the prevalence of media reports on quality!- circles and other quality improvement techniques
D. the need to both reduce costs and ensure consistency in the performance of products and services.
E. b and d.
Answer: E
The concept of quality is based on
A. meeting luxury goods standards.
B. producing excellent products that are superior to other similar items.
C. conforming to the requirements specifications
D. maintaining uniformity of design
E. a and c.
Answer: C
An assignable variance tells us
A. our equipment is becoming obsolete.
B. top management should initiate increased worker training.
C. there is an identifiable problem that must he fixed.
D. schedule variances will be reduced.
E. ours use of quality circles is inadequate
Answer: C
From a high level perspective, quality
A. is ensured by having inspectors.
B. cannot be quantitatively measured.
C. and productivity are inconsistent objectives.
D. is primarily (85-95%) a management problem.
E. problems are usually caused by unmotivated employees.
Answer: D
Which is not a commonly used quality management tool?
A. Fishbone diagram
B. CSSR report
C. Pareto chart
D. Control chart
E. None of the above (all are commonly used)
Answer: E
Quality is often influenced by all of the following except
A. fabrication processes and methods.
B. supervision.
C. inspection
D. cost of materials.
E. design.
Answer: C
The___ of a product or service most affects its reliability and maintenance characteristics.
A. design
B. concept
C. fabrication
D. performance
E. cost
Answer: A
Random variance in a process, as measured by the standard deviation. can be directly reduced by
A. improving the overall system of production
B. increasing the number of quality inspectors.
C. making use of run charts.
D. making better use of Pareto charts.
E. identifying patterns of variance using control charts.
Answer: E
A project manager notices that all the measurements recorded on a control chart lie within the control band range. However, most of the measurements are below the midpoint (negative variance). Quality management practice offers us what guidance in dealing with this situation?
A. The project manager should apply the "rule of seven."
B. There is no problem as long as the variances lie within the control band.
C. Negative variance indicates a problem which should be remedied.
D. These variances are most likely caused by random factors.
E. increased worker ownership should be encouraged.
Answer: A
The project management team's for quality should
A. extend beyond the completion of the project.
B. stop at the point of delivery. .
C. be significantly reduced by a good warranty..
D. be ignored by the project manager.
E. a and c.
Answer: A
On a project, quality should generally be of
A. equal priority with cost and schedule.
B. lower priority than cost and schedule.
C. equal priority with cost, but higher priority than schedule.
D. equal priority with schedule. but higher priority than cost.
E. higher priority than cost and schedule.
Answer: A
100% inspection for defects may be neither possible nor desirable. When is sampling for defects likely to be most useful?
A. When destructive testing is required
B. When the cost of 100% inspection is high.
C. When we believe there are not many defects.
D. a, b, and c.
E. a and b.
Answer: E
A fundamental tenet of modern quality management holds that quality is most likely to be achieved
A. by planning it into the project.
B. by developing careful mechanisms to inspect for quality
C. by developing prestigious products and processes.
D. by striving to do the best job possible.
E. by conducting quality circle activities.
Answer: A
Poor quality in a design project is likely to directly affect ________________ costs.
A. manufacturing/building
B. advertising
C. overhead
D. post-completion support
E. a and d
Answer: E
From the project perspective, quality attributes
A. are used to determine how effectively the performing organization supports the project
B. can be objective or subjective in nature.
C. are specific characteristics for which a product is designed, built. and tested
D. b and c.
E. a and b.
Answer: D
From the project manager's viewpoint, quality assurance involves
A. conducting studies to determine if design methods will support quality requirements.
B. identifying applicable laws, ordinances and regulations that the project must comply with.
C. monitoring inspection activities to ensure that the work is performed as specified.
D. a, b, and c.
E. a and c.
Answer: E
Just-in-time (JIT) is the concept of reducing inventories to
A. 25% of former stock.
B. Less than half of former stock.
C. 75% of peak stock.
D. zero stock.
E. 15% of the cost of the product for a planned stock.
Answer: D
Of the following statements, which one(s) is/are true?
A. Quality is the usual result when skilled designers and skilled implementors work on the project.
B. Quality is 10% skill and 90% luck.
C. Quality can be achieved with the proper combination of personnel, materials, methods and time to do the work.
D. None of the above.
E. a and c.
Answer: E
Some organizations today are using "six sigma", to set the upper and lower limits on control charts rather than the traditional sigmas, which are?
A. two
B. threes
C. four
D. five
E. twelve
Answer: B
The quality management tool that can be described as "a diagram that ranks and displays defects in order of frequency of occurrence (from left to right)" is a
A. control control
B. vertical bar chart.
C. histograms.
D. Pareto chant.
E. run chant.
Answer: D
From the project manager's perspective, quality management is ______________ limited to assessing the attributes of the tools provided to do the work.
A. always
B. usually
C. not
D. seldom
E. intermittently
Answer: C
The primary responsibility for establishing design and test specifications should rest with
A. senior management.
B. procurement or purchasing.
C. engineering.
D. manufacturing.
E. quality control.
Answer: E
Which of the following is least likely to contribute to developing an effective project team supportive of quality?
A. Commitment to the project
B. Team member flexibility
C. Frequent turnover of personnel
D. Team interest in workmanship
E. Clearly defined goals
Answer: C
Primary responsibility for quality management in the project rests with the
A. project engineer.
B. purchasing agent.
C. quality manager.
D. project manager.
E. company president.
Answer: D
The ISO 9000 series is
A. a set of instructions for preparing control charts.
B. a set of guidelines for quality.!
C. a set of forms and procedures to ensure quality. .
D. an international standard that describes a recommended quality system.
E. intended to be applied only to manufactured products.
Answer: D
Unless evidence indicates otherwise, a process is assumed to be
A. in control.
B. out of control.
C. working at full capacity.
D. working at less than full capacity.
E. operating within required engineering tolerances.
Answer: A
Which of the following statements best characterizes the quality management practice called benchmarking?
A. The ISO term for progress measurement
B. Comparing planned project practices to those of other projects.
C. A technique used to test certain types of electronic equipment.
D. The difference between grade'' and quality.
E. The measurement of customer satisfaction.
Answer: B
Quality management is defined as the process of ensuring that a project meets the ________ of the project's clients, participants, and shareholders.
A. specifications and statements of work
B. legal and financial obligations
C. expectations and desires
D. needs and expectations
E. legal and moral requirements
Answer: D
The primary components of quality management are quality ________.
A. inspections, certifications, and validations
B. philosophy, assurance, and control
C. form, fit, and function
D. reliability, maintainability, and availability
E. insurance, assurance, and warranty
Answer: B
Quality assurance is defined as the managerial process that determines ________ that provide the customers with performance standards and feedback on the performance.
A. time, scope, cost, and resources
B. human resources, dollars, materials, and duration
C. time, location, duration, and completion
D. organization, design, objectives, and resources
E. management, staff, workers, and contractors
Answer: D
Quality control is the technical processes that ________ the project's progress against the performance standards.
A. inspect, certify, and verify
B. examine, analyze, and report
C. inspect, examine, and determine
D. identify, measure, and report
E. reveal, establish, and record
Answer: B
Responsibility within the project for quality must be defined and promulgated to everyone contributing to the end product. First and foremost, the ________ has the ultimate responsibility for conformance to requirements when provided with the tools, skills, knowledge, and opportunities.
A. corporate president
B. director of project management
C. quality assurance manager
D. project manager
E. individual
Answer: E
Self-inspection by the individual performing the work is used to achieve quality in a product. The advantages of self-inspection include ________.
A. immediate feedback to permit adjustments to the process
B. early identification of errors prior to further integration
C. minimization of end product repairs and material waste
D. reduction in the number of end product inspections and tests
E. all of the above
Answer: E
Zero Defects is an element of the quality management philosophy that is a ________ for all workers to be achieved ________.
A. slogan; whenever possible
B. slogan; most of the time
C. standard; at all times
D. standard; whenever possible
E. standard; during critical operations
Answer: C
Statistical Process Control is used in quality programs to determine whether repetitive operations meet predictable standards. The process uses ________ to permit accurate monitoring of the operation.
A. 100 percent inspection and random rejection
B. acceptance sampling and automatic rejection
C. continuous sampling and error detection methods
D. random sampling and corrective procedures
E. statistical sampling and control procedures
Answer: E
Statistical Decision Making includes Pareto Analysis as a means of reducing errors in the total project process. Pareto Analysis ________.
A. is a method of rejecting errors or variances from standards following self-inspection
B. is a procedure for ranking the errors to identify those contributing the most to failures [PMBOK p. B-2]
C. counts errors or failures to determine the added cost of all operations that do not meet the requirements
D. compares the error rate with the pass rate to determine the allowable number of errors per 1,000
E. compares the error rate of individuals to determine the compensation for bonuses
Answer: B
Statistical sampling is a method to determine the conformance to requirement for some element or product of a project. The advantage of statistical sampling is that it ________.
A. does not require an expenditure of resources
B. is accurate enough with a sampling of less than one percent
C. does not require 100 percent sampling of the elements to achieve a satisfactory inference of the population
D. needs to be conducted only when there is a problem discovered with the end product or when the customer has some rejects
E. is a good tool to gain customer confidence during a period of high rejects
Answer: C
Statistical Process Control uses diagrams called "Control Charts." These charts depict horizontal, parallel lines to represent ________ standard deviations.
A. six
B. five
C. four
D. three
E. two
Answer: D
When data is plotted on the control charts, the data is of two types R and X-bar. The R data represent points of a ________ while the X-bar data represent points of a(n) ________.
A. random sample; cross-matrix sample
B. real sample; simulated sample
C. 100 percent sampling; 10 percent sampling
D. sampling run; average of several runs
E. random sampling; continuous sampling
Answer: D
The cost of quality has been argued as being primarily driven by the workers. When items were produced that did not meet the customers' expectations, the workers were "found" to be at fault. Current thinking is that management has at least ________ percent of the responsibility for the cost of quality.
A. 85
B. 75
C. 65
D. 55
E. 50
Answer: A
Statistical sampling methods are valid for most projects, regardless of the lack of repetitive processes, because ________.
A. projects rely on external vendors for products that must meet contractual specifications to conform to the requirements
B. purchased materials will never meet the requirements of the project
C. services are amenable to statistical sampling even for small lots
D. it looks good to the customer when there is a mathematical approach to quality
E. statistics provide a basis for customer acceptance of the projects
Answer: A
A quality program within a project should be based on ________ of errors to improve productivity along with quality levels.
A. early detection
B. early correction
C. late detection
D. late correction
E. prevention
Answer: E
The cost of quality is needed to identify opportunities for improvement. The cost of quality is, therefore, defined as the dollar value associated with ________.
A. producing a product that meets the requirement
B. nonconformance to the requiremenT
C. any cost for quality personnel and tools
D. any extra cost to hire a quality consultant
E. all extra efforts to implement a quality program
Answer: B
In a project, the common parameters are cost, schedule, and quality. In relationship to the others, quality should be ranked ________.
A. first as the prime driver for a project
B. second behind cost but ahead of schedule
C. second behind schedule but ahead of cost
D. equal to cost and schedule
E. third behind cost and schedule
Answer: D
When errors that affect quality are discovered, the procedure to improve the situation should be to ________.
A. identify the specific error
B. correct the specific error
C. determine the root cause of the error
D. correct the root cause of the error
E. all of the above
Answer: E
A quality audit is a powerful tool in any quality improvement program. For a project that is starting a quality improvement program, the initial audit is used to ________.
A. identify all the faulty work that has been completed
B. identify all the work that has been correctly accomplished
C. determine the single most urgent area for improvement
D. determine the quality baseline from which improvements will be made
E. evaluate the quality audit's effectiveness in identifying errors
Answer: D
Customers are the driving force in any project and determine the requirements to be met. In dealing with customers' complaints, it is important to ________.
A. avoid commitment to correction on an "out of warranty" item
B. talk to them until they see the reason the complaints are trivial
C. give them something more than they contracted to receive to suppress any feelings of dissatisfaction
D. provide them with the full scope of the contracted product or service
E. realize that customers ask for too much and to change their perceptions about the product or service requirements
Answer: D
In computing the cost of producing a quality product, the major areas of costs contribute to the sale price of the product. The ratio of the ________ costs determine whether an effective quality program is fully implemented.
A. direct, indirect, and overhead
B. one-time, recurring, and variable
C. variable, fixed, and semi-fixed
D. prevention, appraisal, and failure
E. build, repair, and test
Answer: D
The 14-step process to quality improvement is a progressive approach to total involvement of everyone in a company toward the production of quality products and services. The 14-steps do not include ________.
A. management commitment
B. quality improvement team
C. quality measurement
D. goal achievement measures
E. supervisor training
Answer: D
Trend charts reflect the relative status of a program. Trend charts are effective means of ________.
A. visibly reinforcing the growth of quality improvements to the workers
B. reflecting the precise status of quality failures
C. identifying to customers the failure rates of products
D. setting standards and goals for acceptable levels of quality
E. showing that all goals have been achieved
Answer: A
In many projects, the end product is a "service" that does not have physical characteristics and attributes to be measured to ensure conformance to the requirement. When service is the end product of a project, measurements ________.
A. do not apply to the service, but the criterion is pass or fail
B. are always artificial and present only false indications of progress
C. can be established based on customer expectations and the responsibility assigned to individuals
D. are not applicable if the service is to an internal function of the project
E. relate only to the actual expenditures of funds or receipt or revenues
Answer: C
Recognition of personnel achievements is an important building block to the attainment of a superior quality program. The form of recognition should be ________.
A. an annual bonus increase paid at the end of the year
B. an immediate cash award that is commensurate with the deed
C. a nonmonetary award presented in a public forum as soon as the deed is identified
D. a nonmonetary award presented in private
E. a combination of monetary and nonmonetary award presented in private
Answer: C
Quality in a project's product is essential for the enhancement of the project manager and the selling organization. To ensure that the customer perceives a quality product, the project manager must inform the customer of the ________ to be used so the customer will not have a perception of ________.
A. materials; inferior fabrication
B. standards; gold plating
C. practices; poor workmanship
D. pricing; gouging
E. warranty; poor service after product sale
Answer: B
As one of its goals the project organization has quality to specified performance measures. When compared with the functional organization, the project organization ________.
A. achieves higher levels of quality
B. is always tailored to meet the specific quality goals
C. is less disciplined in the implementation of quality
D. is more disciplined in the implementation of quality
E. none of the above
Answer: C
The technical performance of the project is derived from the quality program instituted by the project manager. Quality control is one part of the quality program that ________.
A. defines requirements and performance standards
B. measures results of operations
C. compares measured results to performance standards
D. initiates corrective actions for variances
E. all of the above
Answer: E
Quality control includes inspection to ensure that standards of performance are being met. Inspection includes ________ examination of ________.
A. visual and nonvisual; processes and components
B. visual and aural; processes and materials
C. visual and technical; materials and end products
D. aural and tactile; materials and end products
E. aural and tactile; processes and procedures
Answer: C
Quality control methods extend beyond the external characteristics of the product or components of the product. The types of testing of the product or components include ________.
A. operator, maintainer, and environmental
B. stress, destructive, and operating
C. in-house, public, and private
D. laboratory, destructive, and nondestructive
E. laboratory, fabrication, and product
Answer: D
Each project needs a quality program plan to define the parameters of the overall approach to meeting quality requirements. As a minimum, the quality program plan addresses ________.
A. the required processes and procedures
B. the inspection plan
C. the types of test to be conducted
D. the documentation requirements for actions (testing, inspections, etc.)
E. all of the above
Answer: E
. In a quality management information system, there is a need to collect data and format such data into an information output that is useful to the project manager. In developing such an information system, it is good to remember that an optimum system doesn't supply all the information because ________.
A. there is never enough information collected
B. the system is incapable of processing all the required information
C. some information costs more to collect than it is worth
D. some information is not available for collection and input
E. most information relies on related data to generate thE proper output
Answer: C
Quality is one part of the three major parameters of a project. When the quality in a project exceeds the specifications, that is called ________.
A. excellence
B. superior quality
C. deviation plus quality
D. gold plating
E. silver plating
Answer: D
In the quality area, process control is becoming an important element of the manufacturing to rigorous specifications to provide a consistently uniform output. The control of a process is divided into controlling temperatures, pressures, flows, ________ , and levels in terms of rates and time.
A. directions, elasticities
B. volumes, distances
C. speeds (velocities), volumes
D. distances, speeds (velocities)
E. lengths, widths
Answer: D
Process control is distinct and separate from the data gathering function in a quality program. While process control regulates the functions, data gathering is used to ________.
A. collect information on the relative performance standards of the process so the output can be enhanced through continuous adjustments to the input functions
B. validate the controlling function as performing correctly and provide information on equipment servicing intervals
C. provide the historical records for production lots as to the specifications and actual measurements of a product
D. generate the control charts to determine the variances in the product and the number of nonconforming products
E. ensure the products are within tolerances and to identify those products that require reworking or scrapping
Answer: B
In the area of quality, project managers are struggling with the training and indoctrination of individuals in the need to do the work right the first time to conform to the requirement. Occasionally, the project manager will discover an individual, either in the planning or actual work, doing more than is called for in the specification. These individuals need training to reduce the level of "over building" because ________.
A. the extra value given to the customer is not recognized or needed to complete the project
B. the increases to the system specifications place that portion out of balance with the other system components
C. it leads to increased customer requirements for other parts of the system
D. exceeding the specified requirement is wasting time and money at no value added to the project
E. the project must be reworked in other areas to increase the level of "goodness" to the same as the "over build"
Answer: D
Fast-tracking is also known as
A. overtime and contracting
B. utilizing additional resources
C. crashing
D. concurrent engineering
E. all of the above
Answer: D
In the network diagram for a completely unrealistic schedule, you would likely find
A. no slack available for critical tasks
B. late start dates earlier than early start dates
C. negative total float
D. b and c
E. all of the above
Answer: E
Time-limited scheduling is best used when
A. there is negative total float
B. resources can be better utilized by taking advantage of existing free float
C. a finish-to-start relationship exists
D. fast-tracking
E. b and c
Answer: B
The major difference(s) between time-limited scheduling and resource leveling is (are)
A. Time-limited scheduling reschedules based on late start dates, while resource leveling reschedules based on late finish dates
B. Time-limited scheduling considers total float but resource leveling does not
C. Time-limited scheduling reschedules activities according to resource availability while resource leveling attempts to smooth out resource requirements by rescheduling
D. a and c
E. all of the above
Answer: C
Which relationship dependency is indicative of concurrency?
A. Start-to-start
B. Start-to-finish
C. Finish-to-start
D. Finish-to-finish
E. a and d
Answer: A
Susie has just told Diane, the project manager, that she hasn't started working on her planned activity that was supposed to start a week ago. Which factors will influence Diane's decision whether to escalate to Susie's manager?
A. If the delay is within the amount of free float
B. If the activity has negative float
C. If time-limited scheduling was used
D. If Susie has a reputation for being undependable
E. All of the above
Answer: E
Susie's delays are getting worse and worse. All available slack time for her task has been used. Any additional delays would
A. affect the slack available for subsequent tasks
B. require a determination of the late finish date
C. require crashing or fast-tracking
D. a and b
E. all of the above
Answer: A
Which of the following is true about the critical path in a network diagram?
A. The critical path represents the shortest single path through the network
B. Activities on the critical path hold the greatest risk for the project
C. Activities on the critical path have their early start date equal to their late start date if the shortest possible duration of the project is to be achieved
D. Activities on the critical path have their early start date equal to their late finish date if the earliest end date of the project is to be achieved
E. Activities on the critical path can never have float
Answer: C
. The affect of additional resources on the critical path
A. is likely to reduce the project end date by creating parallel tasks
B. is likely to require that a revised network diagram be created
C. is negligible
D. has the same effect as crashing this path
E. a, b and d
Answer: E
If the Early Start Date = October 10th, the Late Start Date = October 12th, the Early Finish Date = October 12th and the Late Finish Date = October 14th, and all days that week are working days available to the project, compute the number of slack days for this task.
A. 0
B. 1
C. 2
D. 3
E. 4
Answer: C
If free float on a task is exceeded, it
A. should be of concern to the project manager
B. will impact the early start of the succeeding task
C. could impact the late start of the succeeding task
D. could jeopardize the success of the project
E. all of the above
Answer: E
The purpose of performing a backward pass is to
A. determine the critical path
B. determine where there is slack
C. determine where there is float
D. determine the late finish
E. B, C and D
Answer: E
A concurrent relationship is shown on a network diagram as
A. an arrow going from the start of one task to the start of another
B. an arrow going from the start of one task to the finish of another
C. an arrow going to the start of two or more tasks
D. a and c
E. b and c
Answer: A
The effective management of the use of time in a project is usually critical to the successful accomplishment of the project's objectives. There are several types of time management tools (called scheduling systems or project management systems) that fall into three categories referred to by the abbreviations CPM, PERT, and PDM. Respectively, these three abbreviations stand for ________.
A. critical path means, program evaluation and repetitive technology, probabilistic decision method
B. critical path method, program evolution and review timing, probability design method
C. critical planning method, program evaluation and review technique, program detail method
D. critical path method, program evaluation and review technique, precedence diagramming method
E. critical plotting method, program evaluation review technique, precedence diagramming method
Answer: D
Scheduling networks are all similar in their functions and general approach to building a schedule. The major difference between PERT and CPM network input information requirements is ________.
A. PERT will only accept whole units of time whereas CPM will accept fractions/decimals of units of time (e.g., 2 hours vs. 2.1 hours)
B. CPM requires that all time estimates are in hours whereas PERT will accept any unit of time (e.g., hours, days, weeks)
C. PERT requires three time estimates to compute an average whereas CPM requires one point estimate
D. PERT is primarily a time scheduling system whereas CPM also addresses cost and resources
E. PERT requires less time to load the input information than does CPM
Answer: C
PDM differs from PERT and CPM primarily in its use of ________.
A. dummy activities to constrain events
B. lag time connections to slow the project's progress
C. arrows to represent work
D. nodes/boxes to represent work
E. nodes/boxes to represent slack time
Answer: D
PDM uses four different relationships between its nodes to reflect connectivity and lag time, but it does not include ________.
A. start-to-finish
B. finish-to-start
C. finish-to-finish
D. end-to-end
E. start-to-start
Answer: D
The four distinct phases that are used to control the work during the project's life cycle are ________.
A. planning, positioning, implementation, and close-out
B. concept, planning, implementation, and close-out
C. feasibility, concept, implementation, and execution
D. concept, feasibility, planning, and implementation
E. planning, execution, close-out, and post-project
Answer: B
The work breakdown structure is a critical tool for the project and the planning of the project. The lowest level of the work breakdown structure represents the ________ for the schedule network.
A. time duration
B. sequencing of work (or logic)
C. responsibility for work execution
D. task activity
E. task timing by the calendar
Answer: D
The schedule duration of a project is dependent upon the available time until delivery of the system/product. In addition to time, a major contributor to the duration of a project is the ________.
A. skill of the scheduler
B. cost of labor for planners
C. type of automated scheduling system used
D. frequency of updates to the schedule
E. availability of resources for the project
Answer: E
The division of the work breakdown structure into smaller tasks is continued until the lowest level that represents a work package is no more than ________.
A. a cost of $900 for each day of work
B. 80 hours of calendar duration
C. 80 hours of total resource (labor) time
D. what can be accomplished by one person in one week
E. what can be accomplished by one team in three weeks
Answer: C
Suppose the summary network for a major project has 500 activities. For a briefing requirement for senior management, the best method of displaying the progress on the project (schedule vs. calendar) is by using a ________.
A. bar chart of all activities on the summary schedule
B. network of all activities on the summary schedule
C. narrative description of the active tasks
D. combination of the full (detail) network and the summary network
E. histogram to show percent of work on the project that has been completed
Answer: A
The bar chart does not explicitly show the ________ between the activities, which makes it difficult to impute the effects of a delay on one activity.
A. completed work
B. unfinished work
C. duration
D. timing
E. dependency relationships
Answer: E
In the preparation of a network (schedule), factors that must be considered to ensure that the end product meets the needs of the project manager do not include ________.
A. project budget
B. project objectives
C. responsibility of achieving project objectives
D. organization of resources available/required
E. information requirements of management
Answer: A
The rules of network logic state that, except for an independent or time phased start, an activity may not begin before ________.
A. all preceding activities are started
B. most preceding activities are complete
C. all preceding activities are complete
D. resources are ordered
E. resources are identified
Answer: C
As originally developed and employed, CPM and PERT could have only ________ start point(s) and ________ end point(s), but the current networks can have ________ start and end points.
A. two; one; up to six
B. one; two; up to six
C. one; one; four
D. one; one; several
E. one; one; two
Answer: D
In an "activity-on-the-arrow" (i-j) network, the nodes represent ________ and may also be ________.
A. a stopping point; transition points
B. zero time usage; milestones
C. a use of one unit of time; decision points
D. connector points for events; duplicates of other nodes
E. activities of importance; major consumers of time
Answer: B
In preparing the time estimates for a project, the general rule is to use the ________ to estimate each activity.
A. engineers who will be working on the project
B. planners who are preparing the schedule
C. knowledgeable supervisory personnel
D. customer's representative
E. experience of an independent contractor
Answer: C
Often the detailed network contains so many activities that it is difficult to follow the logic and track progress over relatively long periods of time. A summary network is used for this purpose. To develop a summary network from a detailed network, ________.
A. develop a new logic network with fewer activities
B. delete activities until the logic is no longer overwhelming
C. eliminate the connecting nodes or lines to let the logic flow together
D. group like activities in a series to a higher level of work
E. group like events in a series to obtain summary events
Answer: D
The computation of the duration of the network after all logic is completed and all time estimates are included in the schedule requires a forward and backward pass (computation). These two functions result in ________.
A. compressing any activities that exceed a specified duration
B. sorting all activities into a forward group and a backward group
C. generating new logic for the schedule if it exceeds the desired time duration
D. generating the float (slack) on each activity and identifying the critical path
E. separating the critical path from the noncritical path activities in the network
Answer: D
The critical path, by definition, is considered the longest track through the network. The computation of the critical path will determine that the network has ________ longest (time) path(s).
A. only one
B. one or more
C. always more than one
D. always more than two
E. never more than two
Answer: B
A network can have minus float on the critical path but never positive float (under optimum scheduling). Some common causes of negative float are that ________.
A. a fixed end date for the project prohibits the schedule from moving beyond a set date
B. fixed milestones in the schedule prohibit sliding of dates beyond a set date
C. work may have been added on the critical path
D. changes may have been made to either the fixed end date or a fixed milestone
E. all of the above
Answer: E
Suppose a negative slack/float condition has been discovered in the schedule because of poor logic in the initial network. The logic is corrected, but the schedule is now in a negative five-day condition. The method(s) to remove the negative slack is/are to ________.
A. change the schedule logic to conduct parallel activities to condense the longest path
B. add resources on the critical path until some activities are reduced a total of five days
C. use a combination of added resources and change to network logic
D. obtain authority to extend the schedule by five days
E. all of the above
Answer: E
In a precedence diagram (PDM), the notation "SS6" on one of the connecting lines means ________.
A. start soonest after completion of activity six
B. subtract six units of time from the path
C. scheduled start on the sixth day of the month
D. start-to-start slack of six units of time
E. start-to-start with a delay of six units of time
Answer: E
PERT uses three time estimates to arrive at a single "best" estimate for each activity. This is assumed to better account for uncertainty in the estimating process. The formula for computing the "PERT estimate" is ________. (Note a = optimistic, m = most likely, b = pessimistic)
A. (a+m+b)/4 = mean
B. (a+4m+b)/4 = mean
C. (a+4m+b)/6 = mean
D. (a+5m+b)/6 = mean
E. none of the above
Answer: C
For purposes of computing the mean and standard deviation, it is assumed that the PERT distribution is similar to a normal curve. Therefore, PERT estimates are assumed to have ________ standard deviations and that ________ percent of the estimates are within this distribution.
A. two; 95
B. three; 95
C. four; 99.7
D. five; 99.99
E. three; 99.7
Answer: E
Suppose a network (activity-on-the-arrow, i-j) is analyzed and that it is noted that one node has six input arrows, including two dummy activities, and two output arrows. This is a violation of ________.
A. the rule stating that no more than three inputs or outputs can be used on one node
B. the rule that limits the output to one activity (i.e., that event triggers one activity)
C. no rule-the node is not limited to a given number of inputs or outputs
D. the rule that dummy activities are limited to one per node of either input or output
E. the logic for preparing i-j networks, which can compute only a total of six inputs and outputs combined
Answer: C
In a precedence diagram (PDM), the nodes are the activities and each represents a discrete activity. The placement of the connecting lines to other activities are significant because the lines show ________.
A. one of the four relationships of connectivity
B. a dashed connectivity for dummy activities
C. the duration of delay between the finish of one activity and the start of another
D. the amount of work being accomplished when converted to a bar chart
E. resources needed to complete the next activity
Answer: A
Fast-tracking requires more sophisticated schedule and control methods because it is a practice that ________ the schedule to place the system in operation at ________.
A. increases; a later date
B. stabilizes; an earlier date
C. increases; minimum cost
D. moderates; the first opportunity
E. compresses; an earlier date
Answer: E
The trend in computerized scheduling systems is toward the use of the precedence diagramming method (activity on the node) as compared to the early systems (PERT and CPM) with activity on the arrow. In teaching new project personnel the scheduling system, it is helpful to teach both methods because ________.
A. some of the activity on the arrow systems may need to be converted to activity on the node
B. it provides a better basis for understanding networking techniques
C. some activity on the node systems may need to be converted to activity on the arrow
D. some systems use a mixture of both techniques in an individual network
E. there is often a need to schedule in both methods for one project
Answer: B
The success of a project is often unknown until completion because there was little or no planned evaluation of the realistic progress and trends for the future. Determining whether a project will finish on time is best accomplished by ________.
A. comparing the baseline schedule with the current status
B. comparing the current status with the expenditure rate
C. running several iterations of the network to conduct a "what if" exercise
D. analyzing the work completed versus the work scheduled
E. obtaining the opinions of several members of the project team
Answer: A
Suppose you are the project manager for a major project that has 14 subcontractors. Managing the schedule is considered critical to the successful completion and activation of the system. To ensure the best control, you direct the project control section leader to develop a schedule that ________.
A. includes interface points for subcontractors, and you let the subcontractors develop their detail schedules for individual management of time
B. includes the detailed activities of the subcontractors as well as the details of your work
C. excludes any subcontractor schedule because the subcontractors are paid to manage to meet the critical interface dates
D. includes only the subcontractors' schedules and their vendors' or subcontractors' detail schedules
E. compresses all (yours and subcontractors') activity durations by 10 percent, which will be used as a reserve
Answer: B
Suppose a subcontractor informs the project manager that there is a slippage on the schedule of his/her work by at least two weeks. This work is on the critical path and will negatively impact the project by two weeks if nothing is done. The project manager should ________.
A. review the contract to determine the subcontractor's obligation to meet the current schedule
B. review the subcontractor's schedule to determine whether there is an actual two-week delay
C. review the situation to determine why the subcontractor believes s/he is going to betwo-weeks late
D. review the project master schedule to determine if there is going to be a two-week impact on the project if the subcontractor delays his/her schedule
E. all of the above
Answer: E
The project manager identifies a potential problem with the schedule in that many of the supervisors are not starting work on schedule, but are waiting until all the float (slack) is consumed on an activity before starting. In a few cases, this practice is "pushing" following activities out and absorbing the float downstream. The project manager directs that this practice stop and to ensure compliance ________.
A. "freezes" the start of all activities to identify when supervisors initiate late starts
B. "freezes" the end point of all activities to identify when the supervisors initiate late starts
C. converts the schedule to a "fixed" activity network so the supervisors have only a given time frame to complete activities
D. informs the supervisors that any delays in the scheduled activities will result in dismissal of the responsible supervisor
E. dismisses the most frequent abuser of the scheduling system as an example of the action that will be taken against supervisors for irregular practices
Answer: A
During a review of the Gantt (bar) chart, the project manager identifies some tasks that have not been started and are more than two weeks late. All of these activities are the responsibility of one supervisor. The project manager should ________.
A. determine whether the Gantt chart has the most current information
B. determine whether the supervisor is accurately reporting progress
C. review the system of information inputs to determine the accuracy of the system
D. discuss the late activities with the supervisor to determine why there are delays in the schedule
E. all of the above
Answer: E
When properly managed and used, float (slack) in a schedule provides some flexibility in a schedule. The ownership of float on a major contract may be questioned by the owner (buyer), prime contractor, and subcontractors. Therefore, it is best to include the float ownership in ________.
A. the project management plan
B. the contract(s)
C. the project charter
D. a separate agreement
E. the master schedule
Answer: B
There is a belief that all task durations can be altered by increasing or reducing the work force. Following this belief, one could compress the schedule to one-half by doubling the work force. The fallacy with this procedure is that ________.
A. the skills may not be available to double the work force
B. the process may not facilitate the additional personnel (such as a sequential assembly operation)
C. there may not be sufficient physical space to accommodate the larger work force
D. the compression of work into fewer hours by more people may be inefficient
E. all of the above
Answer: E
A project is scheduled to be completed in a set number of days, weeks, or months. The schedule can often be impacted to the extent that work activity must be accelerated by the increase of people and equipment. The most frequent reason for acceleration is that ________.
A. an increase or change in the scope of work must be completed within the original time frame
B. the progress of work activities has been poor in the beginning of the project
C. the project was started late and the schedule end date must be met
D. an opportunity to place a system in service at an early date forces the owner to impose a new completion date
E. the project manager believes that the original schedule was not valid and that acceleration is needed to meet the planned end date
Answer: A
The project schedule is more than a document that lays out the activities over time to represent the time dimension of the project; it is a management tool to be used for decision making. As such, the schedule is used by the project management team to ________.
A. measure, delay, record, distribute, analyze, and direct
B. emphasize, visualize, analyze, conceptualize, report, and record
C. promote, highlight, monitor, control, forecast, and report
D. plan, schedule, monitor, control, report, and forecast
E. all of the above
Answer: D
The project schedule is a dynamic document that is maintained in computer systems and that initially reflects the baseline plan. As the schedule is updated to correct errors, change the scope, or reflect actual duration, the baseline schedule ________.
A. becomes the current schedule with all changes
B. is maintained as the original baseline for post-project evaluations
C. is deleted as being unusable and unneeded to manage the project
D. is amended to remove any errors but maintained for post-project evaluations
E. none of the above
Answer: B
The schedule is an important document to plan and control the use of time and to reflect progress on the project. As such, it should be developed during the ________ phase and updated during the ________ phase.
A. conceptual; planning
B. implementation; execution
C. planning; implementation
D. execution; close-out
E. none of the above
Answer: C
In scheduling, efficiency demands that the least sophisticated scheduling system be used to save on resources and maintenance time. In a small, simple project with few interdependencies, the most efficient means of graphically portraying the schedule would be by means of a ________. A complex project with many interdependencies would require a ________ system that would facilitate ease of planning and updating as well as reporting progress.
A. Gantt chart; computerized scheduling
B. histogram; automated bar chart
C. Pareto diagram; computerized CPM
D. CPM network; computerized scheduling
E. none of the above
Answer: A
The project schedule is the key to tracking progress in the project. Schedule reports should be easily understood, practical, pertinent, and current because of their intended use by ________.
A. engineers
B. planners
C. managers
D. the scheduling team
E. all of the above
Answer: A
The main difference between the two types (ADM and PDM) of the CPM of scheduling is the
A. placement of the activity on the logic diagram line
B. ADM is a deterministic method whereas the PDM is a probabilistic method
C. PDM is a deterministic method whereas the ADM is a probabilistic method
D. PDM is a more accurate method
E. ADM is a more accurate method
Answer: A
The overall duration of the project schedule is influenced by all of the following except
A. Using mandatory dependencies as constraints
B. Using discretionary dependencies as constraints
C. The availability of the resources which are assigned to perform the work
D. The capabilities of the resources which are assigned to perform the work
E. Using the ADM insteady of the PDM of scheduling
Answer: E
The Program Evaluation and Review Technique method of schedule differs from the CPM because the PERT method uses
A. Weighted averages of activity durations to calculate project duration
B. "Dummy" activities to represent logic ties
C. "Free float" instead of "Total float" in the schedule calculations
D. Bar charts instead of logic diagrams to portray the schedule
E. Segmented network logic
Answer: A
The "fast-tracking" method of schedule compression involves
A. The use of industrial engineering technques to improve productivity; thereby finishing the project earlier than originally planned
B. Work package execution thereby increasing risk
C. Going on a "mandatory overtime schedule" in order to compelte the project earlier
D. Calculating the percentage of potential schedule overrun, and reducing each activity'sduration by that percentage in order to enable the project to complete on schedule
E. Assigning "dedicated teams" to the critical path activities
Answer: B
The project schedule is useful in the generation of many important documents during the life span of the project. All of the following documents may be generated by a project schedule except
A. Resource Utilization Histograms
B. Cash Flow Forecasts
C. WBS
D. Performance Measurement Baseline
E. Purchase Order Curves
Answer: C
As of the data date, your project schedule has a BCWS of 100. The BCWP, however, is 110. This tells you that your project is currently 10%
A. Behind schedule
B. Ahead of schedule
C. Over budget
D. Under budget
E. Ahead of schedule and over budget
Answer: B
In what way does free float differ from total float?
A. Free float is the amount of Total float that does not affect the end date, whereas total float is the accumulated amount of Free float.
B. There is no difference - the two terms are functionally equivalent
C. Free float affects only the early start of any immediately following activities
D. Free float is commonly referred to as "slack time", wehereas total float is