Study Material

Front 1

Work performance information is an output of:
(a) scope control
(b) manage project team
(c) perforance reporting
(d) Direct and manage project execution

Back 1

(d) Direct and manage project execution

Front 2

You are a project manager for a contruction projeect in a war zone. You secure the perimeter of the work site with barbed wire and around the clock surveillance with armed patrols. This is an example of:
(a) risk mitigation
(b) contingency planning
(c) risk transfer
(d) force majeure

Back 2

(a) risk mitigation

Front 3

Which of the following is not among the top three source of conflicts on projects
(a) schedule
(b) project priorities
(c) resources
(d) cost

Back 3

(d) Cost

Front 4

The procurement department is sending out the request for proposal to potential sellers. That means they are performing:
(a) plan contracting
(b) request seller responses
(c) select sellers
(d) plan purchares and acquistions

Back 4

(b) request seller responses

Front 5

In which project management document is one likely to find a Rough Order of Magniture cost estimate for the project
(a) project charter
(b) contract
(c) preliminary scope stmt
(d) detailed cost estimates

Back 5

(c) preliminary scope stmt

Front 6

George works for a medium-size IT consulting company and
likes his job. He recently became involved with an upgrade of
his company’s IT system, and it will likely become an ongoing
activity for him in addition to his other responsibilities. What
describes the work that George is doing for this new assignment?
❑ A. It is an attractive project and he should take it.
❑ B. Because the project has several phases, it will use a lot of
resources.
C. His new work is an interesting program for the company.
D. He should look for a new job.

Back 6

Answer C is correct. Answer A is incorrect because his new work is not a project,
it is a program. The PMI definition of a project is a “temporary endeavor
undertaken to create a unique product or service.” Because there is no end to
the work, it would not qualify as a project. Answer B is incorrect for the same
reason. Answer D should be incorrect unless George is in the wrong type of
work.

Front 7

You have just finished writing the scope statement and developing the work breakdown structure. A logical next step would be to:
(a) perform scope planning
(b) create an activity list
(c) perform scope definition
(d) estimate durations

Back 7

(b) create an activity list

Front 8

A non PMI member challenges the benefits of the certification, especially that he knows people who got the certification by providing PMI wrong information about their experience. What must you do in this case?
(a) change the subject as it involves discussion of illegal activities
(b) ask him for th names of the people who lied on their application and investigate the allegations
(c) report the person who told you this to PMI
(d) tell him that if you have clear evidence of such violations that it your durty to report them.

Back 8

A non PMI member challenges the benefits of the certification, especially that he knows people who got the certification by providing PMI wrong information about their experience. What must you do in this case?
(a) change the subject as it involves discussion of illegal activities
(b) ask him for th names of the people who lied on their application and investigate the allegations
(c) report the person who told you this to PMI
(d) tell him that if you have clear evidence of such violations that it your durty to report them.

Front 9

A project seems to be facing several problems, but your time only allows you to focus on a few of them at this time. Which of the following tools can help you focus on the problems that are cuasing most troupbles on the project?
(a) statictical sampling
(b) pareto chart
(c) Iskikawa diagram
(d) none

Back 9

(b) pareto chart

Front 10

The amount of time an activity can be delayed without delaying the succeeding activity is called:
(a) Free float
(b) total float
(c) lag
(d) activity buffer

Back 10

(a) Free float

Front 11

If there was too much noise in the background as your are talking to a client representative about an important and urgent issue. Your best course of action is:
(a) shout over the high level of noise
(b) delay the disucssion until the representative visits you at your office sometime in the future
(c) ask the client representative to repeat what he heard to ensure understanding
(d) speak normally, as it is the responsibility of the receiver to ensure understaning

Back 11

(c) ask the client representative to repeat what he heard to ensure understanding

Front 12

You are in charge of developing a new product for an organization. Your quality metrics are based on the 80th percentile of each of the last three products developed. This is an example of:

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

Back 12

(2)

Front 13

Performance reporting is important during administrative closure in order to:

1. show progress made on tasks.
2. communicate the team's success.
3. gain approval to start the lessons learned.
4. in order to prove formal acceptance has been achieved.

Back 13

(2)

Front 14

Which motivational theory uses the concept of theory X?

1. Maslow
2. Deming
3. McGregor
4. Herzberg

Back 14

(3)

Front 15

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

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

Back 15

(4)

Front 16

A resource assigned to your project contacts you, trying to get off the team. He knows that an important project in his department is going to be approved and will take place at the same time as yours. He wants to work on the other project. Under the circumstances, what should you do?

1. Release him from the team
2. Talk to the functional manager about releasing him from the team
3. Release him after he finds a suitable replacement
4. Speak with the project sponsor about releasing him from the team

Back 16

(2)

Front 17

A project team is scattered across North America, South America and Europe. There are seven companies working on the project and 67 core team members. Which of the following would have the greatest impact on making the situation easier to manage?

1. A list of resource requirements
2. A staffing management plan
3. A resource management plan
4. A resource histogram

Back 17

(2)

Front 18

Quality control is best defined as:

1. the process of regularly evaluating overall project performance to provide confidence that the project will satisfy relevant quality standards.
2. the process of monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory results.
3. a structured review of quality management activities to identify lessons learned and improve performance of the project or other projects within the organization.
4. the process used to provide better product definition and product development and the help a design team define, design, manufacture and deliver a high quality product.

Back 18

(2)

Front 19

Your project is in the final test stage, the user acceptance test. It meets all the product specs and is under planned costs. In term of schedule, this project is ahead. Your customer meet you and requested that he will not accept the product unless you make several changes. What you should do is:

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

Back 19

(3)

Front 20

While completing work for your project, the seller's subcontractor suffers a major fire. The fire destroyed the heating system they were building for your project. What should you do?

1. Stop payment on invoices for the heating system until work begins again
2. Check to ensure the subcontractor was covered by insurance
3. Try to mitigate the problem but be prepared to extend the deliverable due date
4. Tell the seller to stop work on the part of the project that involves the heating system until their subcontractor can recover from the fire

Back 20

(3)

Front 21

1. George works for a medium-size IT consulting company and
likes his job. He recently became involved with an upgrade of
his company’s IT system, and it will likely become an ongoing
activity for him in addition to his other responsibilities. What
describes the work that George is doing for this new assignment?
❑ A. It is an attractive project and he should take it.
❑ B. Because the project has several phases, it will use a lot of
resources.
❑ C. His new work is an interesting program for the company.
❑ D. He should look for a new job.

Back 21

C
Answer C is correct. Answer A is incorrect because his new work is not a project,
it is a program. The PMI definition of a project is a “temporary endeavor
undertaken to create a unique product or service.” Because there is no end to
the work, it would not qualify as a project. Answer B is incorrect for the same
reason. Answer D should be incorrect unless George is in the wrong type of
work.

Front 22

Projects come in all sizes and shapes. Many times, project
managers must draw from their “toolbox” of processes, tools,
or methodologies. How many knowledge areas are described
in the Project Management Body of Knowledge (PMBOK)?
❑ A. 2—core processes and facilitating processes
❑ B. 9
❑ C. 5—initiation, planning, execution, control, and closing
❑ D. 39

Back 22

B
Answer B is correct. Answer A is incorrect because it pertains to the processes.
Answer C is incorrect because these are the five phases of a project. Answer D
is incorrect because there are 39 processes, not knowledge areas, in the
PMBOK.

Front 23

3. What areas does project integration management include?
❑ A. Plan development, execution, and scope management
❑ B. Execution, time management, and scope planning
❑ C. Change control, execution, and plan development
❑ D. Cost management, integrated change control, and cost
estimating

Back 23

C
Answer C is correct. Answer A is incorrect because it includes a knowledge
area. Answer B is incorrect because it includes a knowledge area. Answer D is
incorrect because it includes a knowledge area, which includes cost estimating.

Front 24

Project human resource management includes numerous
“soft” skills that are not easy to learn, and many project managers
require additional training or development to effectively
schedule and coordinate resources. Human resource planning
includes all of the following, except
❑ A. Team skills analysis
❑ B. Staff acquisition
❑ C. Team development
❑ D. Organizational planning

Back 24

A
Answer A is correct because Project Management human resource planning
does not include skills analysis. Answers B, C, and D are incorrect because these
are areas that are included in Project Management human resource planning.

Front 25

Many organizations have different definitions for Project
Management because the profession encompasses so many
industries. Consequently, the Project Management Institute
(PMI) describes Project Management as
❑ A. The processes and tools in order to complete a project
❑ B. The use of knowledge, tools, and techniques to meet requirements
❑ C. Industry specific because the definition changes based upon
whatever industry the company is involved with
❑ D. Initiation, planning, execution, control, and closeout of a
project

Back 25

B
Answer B is correct because the PMI definition of Project Management is “the
application of knowledge, skills, tools, and techniques to project activities to
meet project requirements.” Consequently, Answers A, C, and D are incorrect.

Front 26

When an iterative type of approach is used with projects, there
are several incarnations that occur throughout the entire
process. Each of these iterations is called
❑ A. A prototype
❑ B. Deliverable
❑ C. A work product
❑ D. Progressive elaboration

Back 26

D
Answer D is the best answer. Answer A is incorrect because the prototype is an
output of the process. Answers B and C are incorrect because iterations are not
deliverables, nor are they work products.

Front 27

A waterfall methodology is commonly utilized with IT
projects. There are several steps in the process, which includes
all of the following except
❑ A. Testing and implementation
❑ B. Analysis and development
❑ C. Requirements
❑ D. Design and customer buy-in

Back 27

D
Answer D is correct. All of these choices are correct, except customer buy-in is
not part of the process. “Waterfall” methodology includes six steps: requirements,
analysis, design, development, testing, and implementation.

Front 28

The difference between core processes and facilitating
processes is
❑ A. Core processes take more time and resources.
❑ B. Core processes are performed in the same sequence and facilitating
processes are intermittent.
❑ C. Facilitating processes often require micromanagement in
order to be completed on time.
❑ D. Core processes are not performed in the same sequence and
facilitating processes are.

Back 28

B
Answer B is correct. Answer A is incorrect because the core processes do not
necessarily take more time and resources than facilitating processes. Answer C
is incorrect because core processes are not usually tied with micromanagement
of tasks. Answer D is incorrect because core processes are performed in the
same sequence on most projects.

Front 29

The president and the vice president of marketing for a software
development services organization hold a meeting to
discuss a change to a key task in the design phase of a project.
After the discussion, they tell the project manager to make the
appropriate changes. This scenario is an example of
❑ A. Proactive senior management
❑ B. A project-based organization
❑ C. Effective decision making
❑ D. A project coordinator role

Back 29

D
Answer D is correct. In this scenario, it is the best response. A project coordinator’s
authority and decision-making ability are generally limited to minor
items. Senior management will generally make the significant decisions impacting
the scope and success of the project. There is not enough information
given to determine whether Answers A or C are correct, and in a project-based
organization, the project manager would be empowered to make these decisions.
Therefore, Answer B is incorrect.

Front 30

Which of the following statements about the project expeditor
or the project coordinator role is correct?
❑ A. The project expeditor does not make decisions.
❑ B. The project coordinator does not make decisions.
❑ C. The project coordinator has no authority.
❑ D. The project expeditor focuses on completing the project on
schedule.

Back 30

A
Answer A is correct. A project coordinator does make decisions on nonmajor
items impacting the project and does have some authority to influence the project.
Therefore, Answers B and C are incorrect. The project expeditor is
focused on coordinating communications and is not able to make decisions.
Therefore, Answer D is incorrect.

Front 31

The project selection process must be well thought out in
order for the project to be successful and the stakeholders to
be satisfied with the outcome. Which one of the following
steps is not part of the project selection process?
❑ A. List assumptions.
❑ B. Develop resource wage structures.
❑ C. Gather data and information for each opportunity.
❑ D. Develop a set of criteria against which the opportunity will be
evaluated.

Back 31

B
Answer B is correct. The other step in the four-step project selection process
is to evaluate each opportunity against the criteria. Wage structures are not
associated with the project selection process. Answers A, C, and D are steps
that are involved in the project selection process, and are therefore incorrect
for this question.

Front 32

A work breakdown structure, a status report, and a responsibility
assignment matrix are frequently used throughout a project.
However, their usage might be iterative. These are examples of
❑ A. Project Management tools
❑ B. Work products
❑ C. Milestones
❑ D. Deliverables

Back 32

D
Answer D is the best answer. Answer A is incorrect because this list includes
outputs of Project Management processes, which could later be used as tools.
Answer B is incorrect because it is not a PMBOK term. Answer C is incorrect
because not all of these deliverables are significant enough to be considered
milestones.

Front 33

A project manager for a not-for-profit organization is completing
a new retail outlet project but is unable to get the
planned amount of time from key resources to complete some
of the critical path tasks. The key resources are focused on
completing their day-to-day tasks, and the project manager
does not control the work assignments for these people. This
scenario is an example of what type of organization?
❑ A. Balanced matrix
❑ B. Tight matrix
❑ C. Functional
❑ D. Project coordinator

Back 33

C
Answer C is correct. In a functional organization, the project manager has the
least support and the least ability to control project resources. In a balanced
matrix organization or a project coordinator situation, the project manager
would be empowered with more control over resources or would be able to
leverage his senior management to influence resource assignments. Therefore,
Answers A and D are incorrect. Tight matrix deals with the co-location of project
team members within a matrix organization and is not relevant to this question.
Therefore, Answer B is incorrect.

Front 34

Ambiguous jurisdiction is more common in a functional or
weak matrix organization than a strong matrix or projectized
organization. Why?
❑ A. Projectized organizations tend to be large in size.
❑ B. Conflict between a functional manager and a project manager
is more common in a functional or weak matrix.
❑ C. Legal issues are more frequent in a functional or weak matrix
organization.
❑ D. Projectized and strong matrix organizations are the best companies
for a project manager to work for due to less ambiguity
in scope development.

Back 34

B
Answer B is correct. Answer A is incorrect because it is not a correct statement
and has nothing to do with ambiguous jurisdiction. Answer C is incorrect
because ambiguous jurisdiction is not related to legal issues at a company.
Answer D is incorrect because the statement is incorrect and is not related to
ambiguous jurisdiction.

Front 35

The level of authority and autonomy that a project manager
possesses is vital to his success and ability to influence the
project, time, and personnel scheduling. In what type of
organization does the project manager maintain a moderate to
high level of authority?
❑ A. Functional matrix
❑ B. Balanced matrix
❑ C. Strong matrix
❑ D. Projectized matrix

Back 35

C
Answer C is correct. Answer A is incorrect because it is not a correct PMBOK
term. Answer B is incorrect because a project manager has a low to moderate
level of authority in these types of organizations. Answer D is incorrect because
it is not a correct PMBOK term.

Front 36

The differences between managing people and leading people
can be linked to a project manager’s personality and ability to
interact with individuals and groups. Why does a project manager
need to have both leadership and management skills in
order to be the most effective?
❑ A. Project managers spend up to 90% of their time communicating
with their team and stakeholders.
❑ B. Managers focus on resource scheduling and leaders focus on
motivation.
❑ C. Leaders are more effective than managers.
❑ D. Managers focus on processes and leaders are more people
oriented.

Back 36

D
Answer D is the best answer. Answer A is incorrect because it does not answer
the question. Answer B is incorrect because it is not the best answer. Answer C
is incorrect because the statement is incorrect and is not related to ambiguous
jurisdiction.

Front 37

Colleen wants to make sure she eliminates any potential
projects that might go before the project review board and be
vetoed due to lack of research and planning. She understands
that the needs identification is part of the initial phase of a
project. What does it not start with?
❑ A. A problem
❑ B. An opportunity
❑ C. A need
❑ D. An idea

Back 37

D
Answer D is the best answer. The idea is not the catalyst that precedes the
needs identification. The concept or idea is generally the output of the needs
identification process. Therefore, it is not the correct answer. Answers A, B,
and C (need, problem, opportunity) are triggers that signal the needs identification
process and are therefore incorrect answers for this question.

Front 38

The world is becoming more of a global economy all of the
time. Project managers will need the ability to interact and
manage remote resources, and outsource tasks in order to meet
strict deadlines. Looking at the differences and advantages of
working with various cultures and nationalities, numerous
advantages for creative scheduling of resources become evident.
Which of the following statements is not true?
❑ A. Cultural differences are always a constraint on any project.
❑ B. Culture is a critical lever for competitive advantage.
❑ C. There is a common ground for people from different cultures
to work from when they help resolve project conflicts together.
❑ D. Only those who realize that cultural differences are a resource
to leverage will survive in the twenty-first century.

Back 38

A
Answer A is the best answer. The statement in Answer A is not true because
cultural differences are not “always” a constraint on a project. Answers B, C,
and D are all true statements and therefore incorrect responses to this question.

Front 39

Standards and regulations are commonplace within organizations
and society. Millions of dollars are spent every year for
companies to be compliant with OSHA and ISO 9000 requirements.
Six Sigma certifications are desired, but costly to
administer and maintain. The FDA has standards and regulations,
but IBM only has standards. Why doesn’t IBM have
regulations?
❑ A. IBM is a for-profit corporation and the FDA is a government
entity.
❑ B. IBM does not utilize Six Sigma methodology but it is ISO
9000 compliant.
❑ C. The FDA has standards for its internal use and enforces regulations
upon other organizations.
❑ D. Because the government develops its own laws and regulations,
it is the watchdog for standards.

Back 39

C
Answer C is the correct answer. Answer A is incorrect because it does not
answer the question. Answer B is incorrect, although it provides plenty of
information to confuse the reader. Answer D is incorrect because a standard is
“a document approved by a recognized body that provides for common and
repeated use, rules, guidelines, or characteristics for products, processes, or
services with which compliance is not mandatory.” The government does not
enforce guidelines.

Front 40

The triple constraints of Project Management are frequently
discussed in other contexts such as marketing classes and a
variety of other subjects. The interaction between _______,
_______, and _______ can be seen as a triangle, with the three
sides impacting the others.
❑ A. quality, resources, time
❑ B. money, resources, quality
❑ C. scope, quality, planning
❑ D. time, scope, cost

Back 40

D
Answer D is correct. Scope, quality, and cost are the triple constraints. Quality
is a function of these three areas and can impact them; however, it is not considered
one of the components of the triple constraint. Therefore, Answers A,
B, and C are incorrect.

Front 41

There are plenty of tools and techniques that project managers
can utilize in order to create synergy on a project. Some of
these skills cannot be developed by reading a book and must
be learned on the job. Project managers need solid communication
and negotiation skills primarily because
❑ A. They must give presentations and briefings to senior management.
❑ B. Getting the best deals from vendors requires these skills.
❑ C. They might be leading a team with no direct control over the
individual team members.
❑ D. They must be able to effectively share their technical
expertise.

Back 41

C
Answer C is correct. This is an example of looking for the best response.
Effective negotiation and communication skills are important to the other three
situations, too, but the project team leadership aspect is where these skills are
essential and where they will have the greatest impact on project success.
Therefore, Answers A, B, and D are incorrect.

Front 42

Many people confuse operational activities with projects and
do not assign appropriate resources to the tasks. Frequently,
they fail because a good subject matter expert (SME) does not
always make a good project manager (PM). Why?
❑ A. They do not understand the importance and trade-offs of the
triple constraints.
❑ B. They do not understand what the appropriate leadership style
for managing the project is.
❑ C. They lack social and communication skills.
❑ D. They can’t delegate authority to subordinates.

Back 42

A
Answer A is the best answer. Many subject matter experts are very proficient in
their area of expertise; however, they do not have the other necessary Project
Management attributes associated with time management, scope control, and
budgeting skills. Answer B could be correct because subject matter experts frequently
understand the appropriate leadership style for managing the project,
but it is not the best answer. The triple constraints are the areas in which many
subject matter experts encounter problems and the trade-offs they must
encounter as they go forward with their project. Answer C is incorrect because
subject matter experts do not routinely lack social and communication skills.
Answer D is incorrect because project managers don’t delegate authority to
subordinates. Project managers have all the responsibility and none of the functional
authority.

Front 43

There are several processes, tools, and techniques that you
need to learn for the PMP exam. According to the PMBOK,
the five process groups are
❑ A. Initiation, planning, execution, resources, and quality
❑ B. Initiation, scheduling, reporting, closeout, and approval
❑ C. Analysis, design, building, development, and support
❑ D. Initiation, planning, execution, control, and closeout

Back 43

D
Answer D is the correct answer. Answer A is incorrect because quality and
resources are not process groups. Answer B is incorrect because scheduling,
reporting, and approval are not process groups. Answer C is incorrect because
none of these are PMBOK process groups.

Front 44

Whenever people are looking for a job, they frequently see
“program manager wanted” and “project manager wanted”
when reading the job listings in their local newspaper. Which
of the following statements best describes the relationship
between projects and programs?
❑ A. There are no differences between the two; they are just different
terms for the same thing.
❑ B. A project is composed of one or more related programs.
❑ C. A program is composed of one or more related projects.
❑ D. A project is a temporary endeavor, whereas a program is permanent.

Back 44

C
Answer C is correct. Answer A is incorrect because there is a definite difference
between the two terms. Answer B is incorrect because just the opposite is
true. Answer D is incorrect because a program is a group of projects, which are
temporary endeavors.

Front 45

Soliciting feedback from stakeholders is important to the success
of a project. If the project manager does not include this
as part of the project development process, she can encounter
plenty of problems later. The process of soliciting feedback
and incorporating stakeholder ideas into the project is called
❑ A. Feedback loop
❑ B. Buy-in
❑ C. Progressive elaboration
❑ D. Project approval

Back 45

B
Answer B is the best answer. Answer A is incorrect because it is not a PMBOK
term for the process described in this question. Answer C is incorrect because
progressive elaboration is a totally different aspect of Project Management,
although buy-in might be involved in the process. Answer D is incorrect
because this is not related to the buy-in process.

Front 46

You need to take the following items when you take the PMP
exam:
❑ A. Driver’s license or photo ID and “cheat sheets”
❑ B. Study guides and “cheat sheets”
❑ C. Driver’s license or photo ID, calculator, and watch
❑ D. PMI membership card

Back 46

C
Answer C is the correct answer. Answers A and B are incorrect because you
are not allowed to take “cheat sheets” to the test, although you need to take a
driver’s license or photo ID. Answer D is incorrect because you do not need to
present your PMI card at the testing center.

Front 47

Every year, auto manufacturers introduce new model cars and
retire models that do not sell or have become obsolete.
Frequently, project managers work with engineers and designers
to develop new styles and features that will sell in the marketplace.
The cycle for an automobile that extends from the
concept to the introduction to the phaseout is called
❑ A. A project life cycle
❑ B. A product life cycle
❑ C. Product development
❑ D. R and D (Research and Development)

Back 47

B
Answer B is the correct answer. Answer A is incorrect because the project life
cycle includes initiation, planning, execution, control, and closeout. Answers C
and D are incorrect because product development and R and D do not extend
throughout the life cycle of a product.

Front 48

All projects should have basic elements in order to be planned
and executed efficiently and successfully. Many project managers
do not plan properly and, ultimately, the projects fail and
money and resources are lost. One of the following documents
authorizes and initiates the project while empowering the
project manager to begin working on it. This document is
known as a
❑ A. Project charter
❑ B. Project plan
❑ C. Work authorization form
❑ D. Project approval requisition

Back 48

A
Answer A is the correct answer. Answer B is incorrect because a project plan is
the output of the planning process. Answer C is incorrect because it is not the
correct term for this question. A work authorization is a control mechanism
that is used to keep the project on track by getting the correct work on time.
Answer D is incorrect because this is a fake term for this question.

Front 49

There are numerous milestones that Suzy, an aspiring PMP,
wants to incorporate into her project but she does not know
how to differentiate among all of the tasks. She realizes that
the first meeting of stakeholders and team members is a key
element to the positive start of a project. Whether an in-person
meeting or a virtual meeting, this initial gathering provides an
opportunity to clarify roles, ask questions, and transfer knowledge.
This is called
❑ A. A team meeting
❑ B. An ad hoc meeting
❑ C. A kickoff meeting
❑ D. A project overview

Back 49

C
Answer C is the best answer. Although Answers A, B, and D may also be correct
to a certain degree, Answer C is the best answer because the question
describes the planning, knowledge transfer, and scheduling that is commonly
done during the kickoff meeting with the stakeholders and team members.

Front 50

You have recently been promoted to project manager for a
clinical testing facility. The team is developing a new product
that will cut down on testing interval requirements for a new
seizure management medication. After you become involved
with the project, you decide to add more research reports,
which the customer did not request. This is an example of
❑ A. Good customer service
❑ B. Scope creep
❑ C. Due diligence
❑ D. Gold plating

Back 50

D
Answer D is correct. Answer A is incorrect because you are providing a service
that the customer did not request; therefore, it might not be important to her
and unnecessary. Answer B is incorrect because scope creep is generally an
expansion of the scope of the project at the customer’s request and the customer
did not request these reports. Answer C is incorrect because an additional
report does not always mean increased diligence with a project.

Front 51

There are distinct differences between project life cycles and
project phases. Which of the following statements describes
the relationship between project phases and project life cycles?
❑ A. A project phase can contain one or more iterations of the
project life cycle.
❑ B. Collectively, the project phases are known as the project life
cycle.
❑ C. The project life cycle is known as the sequence of project
activities, whereas phases are defined to control the overlapping
activities.
❑ D. The project life cycle contains the iterative, incremental elements
inside a project phase.

Back 51

B
Answer B is correct. A project life cycle is composed of one or more phases.
Answers A, C, and D do not fully or accurately describe the relationship
between project phases and project life cycle and are therefore incorrect.

Front 52

The PMIS is a valuable tool for the project manager to utilize
as a communication mechanism throughout the duration of
the project. The communication plan is frequently a subproject
of the PMIS development milestone that is used to gather,
integrate, and disseminate the _________ of the Project
Management processes.
❑ A. outputs
❑ B. tools
❑ C. deliverables
❑ D. scope changes

Back 52

A
Answer A is correct. The PMIS is used to distribute the outputs of Project
Management processes. Answer B is incorrect because tools are not disseminated
during a project. Answer C is incorrect because deliverables are not used
to gather, integrate, or disseminate the outputs of the processes. Answer D is
incorrect because scope changes are just an example of an output.

Front 53

Susan wants to be a project manager and has done Project
Management at PMC Construction Company for more than
10 years. Until she discovered the PMI, she was unaware there
was a global authority on Project Management certification or
benchmarking in the planning and delivery of projects. When
describing the purpose of the PMBOK, it is important to note
that the guide is used to provide practices and knowledge that
are generally accepted because
❑ A. They are global in perspective.
❑ B. They are applicable to most projects, most of the time.
❑ C. They provide a foundation of knowledge from which to learn
for future project managers.
❑ D. Project Management is a relatively new profession that continues
to build credibility.

Back 53

B
Answer B is the best answer. According to PMI, generally accepted indicates that
the practices and knowledge are applicable most of the time. Answer A is incorrect
because it does not answer the question. Although the PMBOK might not
be accepted in every country around the world, it continues to expand every
year. Answer C is incorrect because generally accepted is the focus of the question
and this answer is not a full response to the question. Answer D, although true,
also does not address the definition of generally accepted.

Front 54

Projects come in all sizes and shapes. They occur in almost
every industry, including aerospace, manufacturing, information
services, engineering, and life sciences. Because Project
Management encompasses so many different areas and disciplines,
many people have a difficult time explaining what
Project Management is. Regardless of the industry, Project
Management includes all of the following except
❑ A. Impermanence
❑ B. Creating a unique item for consumption
❑ C. Creating a unique service
❑ D. Increasing efficiency of projects

Back 54

D
Answer D is correct. The PMI definition of a project is “a temporary endeavor
undertaken to create a unique product or service.” Therefore, Answers A, B, and C
are incorrect because they encompass parts of the definition in the answer. Temporary
indicates that the project has a definite beginning and ending. The uniqueness is what
distinguishes the product or services from different types of projects.

Front 55

A company that you previously worked for is seeking new
employees and you are trying to explain the culture to a
potential candidate. The company has strict policies, supervisory
control, and rules. Team members are not encouraged to
be individualistic nor offer feedback to upper management.
Many times, the team feels its input is not valuable or implemented.
This explanation describes a company that utilizes
what employee management theory?
❑ A. Meredith and Mann’s Autocratic Management Theory
❑ B. Deming’s Zero Defects Theory
❑ C. Kerzner’s Earned Value Theory
❑ D. McGregor’s X Theory

Back 55

D
Answer D is correct. Answer A is incorrect because Meredith and Mann did
not develop an autocratic management theory. Answer B is incorrect because
Deming’s theories did not involve any of the X and Y theories that were developed
by McGregor. Answer C is incorrect because Earned Value is not related
to X or Y management theories.

Front 56

NASA developed the space shuttle over an extended period of
time. When the project first began, many of the engineers had
to develop their blueprints based upon a vision of what they
saw as the final product. This focus on the end result is one of
the keys to successful Project Management. Each time that a
blueprint was revised, before the final design was approved,
the team became challenged with additional work; however, it
understood that
❑ A. Scope creep was common in a large scope project.
❑ B. Progressive elaborations of the blueprints accurately defined
the final deliverable.
❑ C. New subject matter experts would be needed.
❑ D. The project sponsor would develop a change control
document.

Back 56

B
Answer B is correct. The progressive elaborations of a project integrate the
temporary and unique characteristics of a project. Because a project proceeds in
steps over time, the progress continues forward incrementally. This process is
developed thoroughly with input from the team and plenty of details. Although
the characteristics are defined broadly in the beginning of the project, they
begin to become more defined with each elaboration as the project progresses.
Answer A is incorrect because scope creep is only common if there was poor
planning for the project or an effective change control management plan was
not utilized correctly. Answer C is incorrect because it is not related to the evolution
of the blueprints for the shuttle. Answer D is incorrect because a change
control document is generally not needed for progressive elaborations of the
blueprints unless it has a major impact upon the project development.

Front 57

Management by projects views aspects of ongoing operations as
projects in order to apply Project Management techniques to
them. This can be used to describe an organizational approach
to the management of ongoing operations. Why would a company
want to utilize this methodology on nonprojects?
❑ A. To keep project managers employed
❑ B. To provide better estimates about durations
❑ C. To allow the utilization of PM tools, such as earned value, to
calculate ROI
❑ D. To specify the different phases within the operations

Back 57

C
Answer C is correct. Answer A is incorrect because project managers are not
effectively utilized if they are always scheduling and coordinating resources for
daily operations. Answer B is incorrect because project managers are not the
best resource for providing estimates on daily operations and time allocations;
people doing the actual work are the best sources. Answer D is incorrect
because you do not specify different phases of ongoing operations.

Front 58

General management includes all of the following except
❑ A. Staffing and planning
❑ B. Controlling operations of an ongoing enterprise
❑ C. Organizing and procurement
❑ D. Executing and logistics

Back 58

C
Answer C is correct because procurement is not considered part of general
management, although organizing is part of general management. General
management also includes other supporting disciplines such as law, human
resource management, and strategic planning. This frequently overlaps into
areas such as financial forecasting, planning techniques, and organizational
behavior. Therefore, Answers A, B, and D are incorrect because they are part
of general management.

Front 59

According to PMI, application areas are categories of projects
that have common elements that exist in general management
projects, but are not needed or present in all projects.
Consequently, application areas are usually defined in terms of
❑ A. Industry groups
❑ B. Financial impact upon the organization
❑ C. Deliverables and time frames
❑ D. Visibility within the company

Back 59

A
Answer A is correct. Industry groups, management specializations, technical
elements, and functional departments are generally how application areas are
defined. Therefore, Answers B, C, and D are incorrect because application
areas are not defined in these types of terms.

Front 60

Your new nursing resource company is doing well after its
10th year of business but, frequently, projects go over time,
over budget, or both. Therefore, the new PMO director, Tom
Thinwallet, has implemented new change control procedures
for your projects in order to keep them in line financially. In
order for Tom’s change control management plan to be effective,
it must
❑ A. Be conservative.
❑ B. Utilize milestones as frequently as possible.
❑ C. Define how project deliverables can be changed.
❑ D. Tie stakeholder rewards to definite timetables.

Back 60

C
Answer C is correct. The change control management plan should be
described at the beginning of the project and provide details about how deliverables
or other project-related artifacts can be changed during the project. If no
procedures or guidelines are provided, chaos will develop because the stakeholders
will not understand how they are to implement change within the project.
Answer A is incorrect because a conservative approach is not always the
best method to view projects if you are required to develop creative solutions to
problems. Answer B is incorrect because frequent milestones are not the solution
to effective change control management. Answer D is incorrect because
rewards are not generally tied to the change control management process;
however, rewards are frequently tied with timelines and the ability to provide
projects ahead of schedule.

Front 61

Open-heart surgery can be viewed as a project and a
program. Why?
❑ A. Because heart usage does not have a definite ending, the project
is also a program.
❑ B. Because the surgery requires a tremendous amount of
resources, it is considered a project.
❑ C. The surgery is a project; the ongoing support is a program.
❑ D. Getting the skills and resources is a program. Scheduling and
coordinating the skills and resources is a project.

Back 61

C
Answer C is correct. Open-heart surgery has a beginning and ending and
therefore constitutes a project. The post-surgery maintenance and ongoing
support is a program because it does not have a definite ending to the treatment.
Answer A is incorrect because the heart usage timeline does not determine
whether it is a project or a program. Answer B is incorrect because
resource allocation does not determine whether the surgery is a project or a
program. Answer D is incorrect because getting the skills and resources is not a
program.

Front 62

Your team has developed a thorough project plan and risk
analysis for your project. You have a tight time frame to develop
a team, determine your milestones, and get everyone up to
speed. The best way to communicate this information as
quickly as possible is
❑ A. Via email
❑ B. However it is described in the communication
management plan
❑ C. At the kickoff meeting
❑ D. Through the project team

Back 62

B
Answer B is correct. The communication management plan describes who and
how the communication will be distributed. Answer A might be a fast method
of distribution, but it should be explained thoroughly in the communication
plan. Answer C is incorrect because the project manager does not need to wait
until the kickoff meeting in order to communicate the information. If the kickoff
is described in the communication management plan as the correct method
to communicate this information, the kickoff is appropriate. However, the
communication plan is the first source to draw from to determine if the kickoff
meeting is the forum to utilize. Answer D is incorrect because it might not be
the most efficient method to distribute the information.

Front 63

Amy has become involved with Six Sigma at work and she sees
some parallels between Project Management and Six Sigma.
She is also a firm believer that each project phase should be
reviewed to determine whether the project should continue to
the next phase. The review and decision to proceed with the
project is
❑ A. A kill point
❑ B. A milestone
❑ C. Based upon stakeholder expectations
❑ D. Time consuming and unnecessary for small projects

Back 63

A
Answer A is the best answer. The phase-end reviews are called phase exits,
stage gates, and kill points because they provide a point to pause and determine
whether the project should go forward or be stopped. Answer B is incorrect
because the review and decision are not always milestones. Answer C is incorrect
because the decision should not necessarily be based upon stakeholder
expectations. Answer D is incorrect because the review and decision-making
process can be swift if enough information is provided in a timely manner.

Front 64

The project life cycle can be broken into five phases that tend
to overlap with each other from one phase to another; however,
the control phase does not overlap with a specific phase. Why?
❑ A. Change control management is separate from the other phases.
❑ B. Change control management has a plan that can be used
throughout the initiation, planning, execution, and closeout
of the project.
❑ C. Because the project sponsor is responsible for change control
management, the project manager is not involved with that
phase of the project.
❑ D. Change control extends throughout the entire project from
initiation to closeout.

Back 64

D
Answer D is correct. Change control management is utilized from the beginning
to the end of the project in order to keep it focused with an emphasis on
the time and budget. Answer A is incorrect because change control management
is not separate from the other phases. Answer B is incorrect because the
control plan must be throughout the other phases of a project. Its usage is not
optional, and consistent utilization is imperative to managing scope creep and
other scope expansions. Answer C is incorrect because the project sponsor is
generally not responsible for the change control documentation, although it
should be involved in the buy-in and approval process.

Front 65

You have been assigned to manage a new supply chain solicitation
and procurement process project. This enterprisewide initiative
will be rolled out to 30 locations within 8 months in 3
geographical regions including Asia, Ireland, and Spain.
Because of the abbreviated time frame, you must look for ways
to reduce your timelines for the various tasks. By utilizing
resource scheduling software, you determine several opportunities
for overlapping phases in order to speed up the process.
This is an example of
❑ A. Crashing the schedule
❑ B. Peak shaving
❑ C. Resource reallocation
❑ D. Fast tracking

Back 65

D
Answer D is correct. Answer A is incorrect because crashing the schedule
involves scheduling extraneous amounts of resources in an attempt to decrease
your timeline with the additional people. Answers B and C are incorrect
because peak shaving and resource reallocation are used whenever you want to
move extra resources from one time period to another. Fast tracking pushes the
project along regardless of whether an approval has been completed. This can
be the catalyst for the project to proceed into the next phase without loss of
inertia.

Front 66

Mark Smallbrain, the internationally known author and consultant,
predicts that bowling will be the next fad to have a
revitalization this decade. Therefore, he plans to endorse a
chain of bowling franchises and invest in their vision of bowling
splendor. The probability of his failure is the highest at the
beginning of a project. The bowling aficionados (stakeholders)
will also have the biggest impact upon the project scope at the
beginning of the project. Why are the probabilities higher at
the beginning of the project?
❑ A. Stakeholders are more fickle at the beginning of a project.
❑ B. Risk decreases over time and stakeholders lose vision of their
original scope over time.
❑ C. Risk decreases as deliverables are provided and timelines and
milestones are met. Stakeholder influence decreases as the
scope is documented and expectations are set.
❑ D. A risk analysis has not been prepared and not all of the stakeholders
have been identified.

Back 66

C
Answer C is correct. The completion of milestones and deliverables provides
validity to the direction of the project with an emphasis on results. The stakeholders
are more involved in the beginning because the scope might be more
open ended. However, this impact and involvement decreases as the scope is
formalized and buy-in is achieved with the stakeholders. Answer A is incorrect
because it does not correctly answer the question. Answer B is incorrect
because time alone does not reduce risk, and stakeholders should not lose
vision over time if the information is correctly documented and communicated.
Answer D is incorrect because a risk analysis should have already begun regardless
of whether the stakeholders have been identified.

Front 67

Sam is running a one-year project that is expected to be in initiation
and planning for three months, execution for six
months, and rollout for three months. When will his project
spend the most money?
❑ A. Initiation
❑ B. Planning
❑ C. Execution
❑ D. Control

Back 67

C
Answer C is correct. The execution phase of a project has the highest level of
activity and expense. The planning phase has the second-highest level of activity
and expense. For most project life cycles, the intermediate phases consume
the highest level of staffing and time. During the initial phase, the project
begins to gain momentum as the level of activity rises. Therefore, Answers A,
B, and D are incorrect.

Front 68

48. The software development life cycle begins with a proof of
concept and progresses into the build, test, and acceptance
phases as the project develops. Sometimes, differences between
stakeholders can develop into conflict, which impacts the customer.
As a trained, professional project manager, how do you
handle this situation and resolve the customer’s concerns?
❑ A. Let the customer vent and take notes.
❑ B. Schedule a meeting.
❑ C. Develop a change request for the customer.
❑ D. Resolve the matter in favor of the customer.

Back 68

D
Answer D is correct. According to PMI, differences between or among stakeholders
should be resolved in favor of the customer. Coming to a win/win resolution
is a key element to effective Project Management while aligning business
priorities with customer expectations. Answer A is incorrect because taking
notes is not enough to resolve the problem. Answer B is a good first step, but it
is not the best response. Answer C is incorrect because this might not resolve
the problem.

Front 69

A project coordinator or project leader title or position is
more common in a functional or weak matrix organization
because a project manager’s role is only utilized on a part-time
basis. In a projectized or strong matrix organization, a project
manager’s level of authority changes in what way?
❑ A. The level of authority increases because you have more control
over resources.
❑ B. The level of authority stays the same however the autonomy
increases.
❑ C. Coercion power is more effective in a projectized organization.
❑ D. The administrative staff becomes full time, so there is more
emphasis on results and accountability.

Back 69

A
Answer A is correct. As you go along the continuum from a functional to a
projectized organization, the level of authority for a project manager increases.
Answer B is incorrect because the level of authority increases as you progress
from functional to projectized organizations. Answer C is incorrect because
coercion power is not as effective in Project Management as other professions,
such as the military. Answer D is incorrect because it does not answer the question
completely.

Front 70

Which of the following statements best describes the relationship
between project life cycle phases and Project
Management processes?
❑ A. Project Management processes correspond one to one with
project life cycle phases.
❑ B. Project life cycle phases can repeat within a Project
Management process.
❑ C. Project Management processes can repeat within a project life
cycle.
❑ D. Project Management processes are completely independent of
project life cycle phases.

Back 70

C
Answer C is correct. The Project Management processes should be executed
for each project life cycle phase and/or iteration. Answer A is incorrect because
the Project Management processes are used to manage the progress of the
project life cycle, and project life cycle phases are not normally associated with
controlling and executing processes, for example. Answer B is incorrect because
it is the opposite of the correct choice. Answer D is incorrect because a relationship
can exist between the initiating, planning, and closing processes and
traditional project life cycle phases (such as concept, analysis, and closure).

Front 71

Susan is a well-paid global operations executive who also
enjoys consulting and teaching. She is so popular that recently
she received two offers in the same day to speak at conferences
as a paid presenter. At one conference, she was offered $3,000
for her presentation on a topic that she is not fond of. She was
offered $2,000 at another conference to speak on resource
allocation, a topic that she enjoys. Because money is no object
to Susan, she decides to speak about resource allocation for
$2,000 and pass on the other conference. Susan must also use
a day of vacation time with a value of $2,000 to take time off
work to attend the conference. What is Susan’s opportunity
cost to speak at the conference?
❑ A. $1,000
❑ B. $2,000
❑ C. $3,000
❑ D. $4,000

Back 71

C
Answer C is correct because the opportunity cost is the lost money that she
could have been paid for the other event if she was the speaker. Therefore,
Answers A, B, and D are incorrect.

Front 72

The purpose of a project charter is all of the following except
❑ A. To describe the business need(s) that the project will meet
❑ B. To authorize the beginning of the project
❑ C. To give the project manager the authority to go forward with
the project
❑ D. To give functional power to the project manager

Back 72

D
Answer D is correct because a project manager is not given functional authority
in the charter. Answer A is incorrect because the charter should include a
description of the business need(s) that the project will meet. Answer B is
incorrect because the project charter does authorize the beginning of the
project. Answer C is incorrect because the project charter does give the project
manager the authority to go forward with the project.

Front 73

Whenever a team becomes involved with a new project, it does
analysis in order to determine what the best alternatives to
begin the project are. Because projects should be aligned with
the organization’s strategic direction, the initiation phase is the
❑ A. First step in the solicitation process
❑ B. Second step in the project life cycle
❑ C. Stakeholder’s responsibility
❑ D. First step in the scope management process

Back 73

D
Answer D is correct because the initiation phase is the first step in the scope
management process and the Project Management process. The process of
performing this initial analysis for a project should be considered a separate
project and not part of the initiation phase of the project. Answer B is incorrect
because the initiation phase is the first step in the project life cycle. Answer C is
incorrect because it is not necessarily the stakeholders’ responsibility to be a
resource for the initiation of the project, unless they are team members.

Front 74

You have started your own company based upon PMI methodologies
and have been contracted by the government to develop
a new interface for one of its computer applications. You develop
a solution and win the bid for the contract but encounter
problems at the end of the project when the customer says that
you did not fulfill their needs. You are thoroughly shocked.
What is your conclusion of the situation?
❑ A. There are always more customers available.
❑ B. If the customer is not satisfied, the project is not successful.
❑ C. Change control management was not effective.
❑ D. The customer did not communicate very well.

Back 74

B
Answer B is correct. Answer A is incorrect because without satisfied customers,
we do not have potential for new projects. Answer C is incorrect
because the change control management process would have likely resolved this
problem. Answer D is incorrect because it is the project manager’s responsibility
to seek communication with the customer to set realistic expectations.

Front 75

Budiono is in the process of developing his project notebook
and accumulating archive materials related to the project’s
work breakdown structure (WBS). The lowest level of a work
breakdown structure branch is known as a _______.
❑ A. Work package
❑ B. Task
❑ C. Deliverable
❑ D. Work product

Back 75

A
Answer A is correct. Not all branches of the WBS have to be decomposed to
the same level, although each succeeding level generally has more detail.
Answer B is incorrect because a task is not a definitive enough answer to
describe the lowest level of the WBS. Answer C is incorrect because deliverables
are the outputs of the project processes and not involved with the different
levels of the WBS. Answer D is incorrect because a work product is
described as a process output and not a term that would be used to describe the
lowest level of a WBS.

Front 76

Which of the following work products must be included in the
project charter?
❑ A. Risk analysis
❑ B. Budget estimates
❑ C. Product description
❑ D. Scope statement

Back 76

C
Answer C is correct. The product description is one of the three minimal
requirements of the project charter, as described by the PMBOK. The charter
should also include a description of the business need(s) that the project will
meet. The other choices in this question might appear in some organization’s
charters; however, they are not the correct answers for the test question.
Therefore, Answers A, B, and D are incorrect.

Front 77

During the project selection process for the new power plant
infrastructure development, Roger learns about a project selection
method that utilizes scoring models and a cost analysis to
determine what projects he should work on and develop over
time. This type of project selection method is an example of
❑ A. Constrained optimization
❑ B. Earned value
❑ C. Standard deviation
❑ D. Benefit measurement

Back 77

D
Answer D is correct and illustrates the utilization of a cost benefit analysis.
Answer A is incorrect because constrained optimization is a mathematical
approach that uses math models and complex criteria in the selection process
and is not the appropriate response to this question. Answer B is incorrect
because earned value is the value of the work actually performed and not a
project selection method. Answer C is incorrect because standard deviation
evaluation is not a project selection method, although some of the standard
deviation reports may be inputs to the project selection process.

Front 78

Ralph’s Cyber Café is starting an electronic PMO office and needs
fresh ideas to help the business grow. For the initial phase, the
PMO director has decided to roll out the use of project charters.
As a project manager, why would you be encouraged by this plan?
❑ A. The project charter enables you to establish the business need
for the project.
❑ B. The project charter ensures that a preliminary budget and
schedule are developed.
❑ C. The project charter authorizes you to use organizational
resources to accomplish the objectives of the project.
❑ D. The project charter enables you to get senior management
buy-in for your Project Management approach

Back 78

C
Answer C is correct. Answer A is incorrect because the project manager cannot
establish the business need alone. Remember that the charter is issued by someone
external to the team. Answer B is incorrect because the project charter does
not require a preliminary schedule and budget. Answer D is incorrect because
the Project Management approach would be defined in the project plan.

Front 79

One of the goals of management by objectives (MBO) is to
ensure that objectives of one level within an organization are
supportive of and aligned with the objectives of another level of
the organization. This methodology has been popular within
some organizations as they define their culture. Which of the
following is not true about MBO?
❑ A. It has a top-down orientation.
❑ B. Corrective actions are not part of the process.
❑ C. You need to establish clear and achievable objectives.
❑ D. MBO is a natural fit for Project Management.

Back 79

B
Answer B is correct. Corrective actions are part of the process after establishing
objectives and checking on the objectives. The next step is to take corrective
actions. Answers A, C, and D are true statements and therefore are incorrect for
this question.

Front 80

As a new program manager, Mary is still trying to determine
her best sources of information for the not-for-profit organization
that you work for. One resource is experts. Expert judgment
is mentioned in the beginning of the PMBOK because
project initiation is the first process that lists expert judgment
as a primary tool or technique. Which of the following would
likely not be a source of expert judgment for Mary?
❑ A. Stakeholders
❑ B. Industry groups
❑ C. Government regulatory agencies
❑ D. Utilities

Back 80

D
Answer D is the best answer because utilities would be the least likely to provide
expert advice to a not-for-profit organization concerning how to run the
organization. Answer A is incorrect because stakeholders can be a valuable
resource for expert judgment. Answer B is incorrect because industry groups
frequently support not-for-profit organizations and can be a good information
source. Answer C is incorrect because the government regulatory agencies frequently
support and monitor not-for-profit organizations.

Front 81

Rebecca has created the project charter but cannot get it
approved by senior management. Her manager and boss have
asked her to begin the project anyway. Which of the following
actions is the best thing to do?
❑ A. Focus on other projects that have a signed charter.
❑ B. Start work on critical path tasks.
❑ C. Update the Project Risk Log.
❑ D. Show the manager the impact of proceeding without approval.

Back 81

D
Answer D is correct. Remember the importance that PMI places on effective
communications and on “doing the right thing.” Answers A and C are incorrect
because these would not be the best actions to take next in this situation. It is
the project manager’s responsibility to present all the necessary information to
the sponsors and stakeholders so that they can make decisions that are in the
best interest of the project, quality, and the timeline. Answer B is incorrect
because the “lack of senior management approval” issue has not been dealt with
yet and resolution should be pursued so the project can go forward.

Front 82

Cost benefit analysis and constrained optimization are two
general types of project selection methods that project managers
utilize when they are evaluating projects. Although
various industries have different priorities and agendas, the
stakeholders need to be in agreement about the selection
process for the project. What is the most important criterion
when an organization chooses a project selection model?
❑ A. Organizational fit
❑ B. Flexibility
❑ C. Cost
❑ D. Capability

Back 82

A
Answer A is correct. The most important factor is that the project selection
method be “realistic” for the organization. It needs to be consistent with its
goals and objectives, and it needs to account for the capabilities of the organization.
Answers B, C, and D are all incorrect because although they are key criteria
when choosing a project selection model, they are irrelevant if the model
is not first an effective organizational fit.

Front 83

The payback period can become an important issue when a
large scope project is developed over several years. Maureen
has been assigned the responsibility of calculating the payback
period for her project that is to be completed in 3 years. The
internal rate of return (IRR) is 7% and the annual savings will
be $800,000 per year. The total cost is $4,000,000 and the rate
of return during this time period is 3%. What is the payback
period of Maureen’s project?
❑ A. 3 years
❑ B. 4 years
❑ C. 5 years
❑ D. 13.3 years

Back 83

C
Answer C is correct. The payback period is how long it takes to recoup your
investment. In this example, the cost was $4,000,000 and the savings was
$800,000 per year. $4,000,000/$800,000 = 5. Therefore, Answers A, B, and D
are incorrect.

Front 84

Another project selection method evaluates the present value
of cash inflows minus the present value of cash outflows.
When evaluating the net present value (NPV)
❑ A. A positive NPV is unfavorable.
❑ B. A negative NPV is unfavorable.
❑ C. The lower the NPV, the better.
❑ D. You subtract the IRR to get the future value.

Back 84

B
Answer B is correct. A negative NPV is unfavorable because this means that cash
outflows are higher than the value of cash inflows. Answer A is incorrect because
a positive NPV is favorable. Answer C is incorrect because the higher the NPV,
the better. Answer D is incorrect because IRR is not associated with NPV.

Front 85

The Acme Company is always trying to get the best return on
its investment because its government funding was cut last
year. If the current interest rate is 6% and the return on
investment (ROI) is 1.73, the return that a company would
earn if it invests in the project is the
❑ A. IRR
❑ B. Benefit cost ratio
❑ C. Present value (PV)
❑ D. Earned value

Back 85

A
Answer A is correct. The internal rate of return (IRR) is the interest rate that
makes the net present value of all cash flows equal zero. Answer B is incorrect
because the benefit cost ratio identifies the relationship between the cost and
benefits of a proposed project. Answer C is incorrect because present value
(PV) is the value today of future cash flows. Answer D is incorrect because
earned value is the work accomplished plus the authorized budget for the work.
It is the sum of the approved cost estimates for activities completed during a
given time period. This was previously called the budgeted cost of work
performed (BCWP).

Front 86

There are numerous reasons why initiation and planning activities
get confused. While determining business needs and collecting
historical data during the initiation phase, the project
manager also
❑ A. Selects team members
❑ B. Determines deliverables and constraints
❑ C. Develops a risk analysis
❑ D. Prepares a communication plan

Back 86

B
Answer B is correct. The deliverables and constraints are identified during the
initiation phase as the inputs into the planning phase. Answer A is incorrect
because team member selection is done during the planning phase of the
project. Answer C is incorrect because a risk analysis is generally prepared
during the planning phase of a project. Answer D is incorrect because the communication
plan is also generally developed during the planning phase.

Front 87

Management By Walking Around (MBWA) is a common term
to refer to the interaction that a manager performs while
working with his team. Daniel works for a toothpaste company
and has found his company, Bright Teeth, is an ideal environment
in which to apply the technique of MBWA because
❑ A. Top management policy and goals should flow down through
the management hierarchy.
❑ B. Project Management involves setting organizational objectives.
❑ C. All projects should be strongly oriented toward goals and
objectives.
❑ D. Projects are generally handled in a matrix management environment.

Back 87

C
Answer C is correct. The approach of goal/objective setting and periodic evaluations
is common to both MBWA and Project Management. Answer A is
incorrect because projects use more than functional management hierarchy
structures. Answer B is incorrect because Project Management is focused on
executing organizational objectives and not on setting them. Answer D is
incorrect in much the same way that Answer A is incorrect. You cannot rely on
a top-down organizational flow in project environments.

Front 88

Sometimes project managers forget all of the expenses that
they can incur on a project, such as capital resources and
assets. This can have an impact upon their budgets and the
economic return on the project. A cost that has been incurred
and cannot be reversed is known as a
❑ A. Fixed cost
❑ B. Direct cost
❑ C. Variable cost
❑ D. Sunk cost

Back 88

D
Answer D is correct because a sunk cost is a project expense that will eventually
need to be paid. Answer A is incorrect because a fixed cost remains constant,
regardless of any change in a company’s activity. Answer B is incorrect because a
direct cost can be directly linked to producing specific goods or services. Answer
C is incorrect because a variable cost changes in proportion to a change in the
company’s activity or business.

Front 89

Ian works for a manufacturing company that has a global
presence and utilizes outsourcing for many of its services.
Because of the increasing cost of local resources, he must identify
all of the potential options when analyzing his resource
pool and determining which projects he wants to complete in
the United States and which projects should be done in India.
All of the following are examples of benefit-measurement
methods of project selection except which one?
❑ A. Scoring models
❑ B. Multiobjective programming
❑ C. Economic models
❑ D. IS steering committee review

Back 89

B
Answer B is correct. Multiobjective programming is the only constraint optimization
method that is listed. Answers A, C, and D are all incorrect because
they are not constraint optimization methods.

Front 90

Straight-line depreciation is the simplest method of depreciating
an asset and is frequently utilized on a project to determine
its economic feasibility. Straight-line depreciation is
❑ A. Only applicable for direct costs
❑ B. Only applicable for costs that are indirectly traced to a specific
product or service
❑ C. A cost that can increase with the interest rate
❑ D. A method that divides an asset’s cost and its expected salvage
value by its expected utilization period

Back 90

D
Answer D is correct. Answer A is incorrect because straight-line depreciation
is not tied with direct costs. Answer B is incorrect because indirect costs are not
associated with straight-line depreciation. Answer C is incorrect because the
interest rate does not impact straight-line depreciation.

Front 91

Michelle is not an accountant and is frequently frustrated
about why she needs to know financial information for her
projects. Therefore, she has returned to college in order to
enhance her accounting knowledge. Her company, Quikstart,
is paying for her tuition if she maintains satisfactory grades. In
her studies, she has found that current assets less current liabilities
are equal to
❑ A. Working capital
❑ B. Standard deviation
❑ C. Actual cost of work performed (ACWP)
❑ D. Estimate at completion (EAC)

Back 91

A
Answer A is correct. Answer B is incorrect because the standard deviation is not
associated with current assets or liabilities. Answer C is incorrect because actual
cost of work performed is not linked to current assets or liabilities. Answer D is
incorrect because the estimate at completion (EAC) is utilized for this example.

Front 92

A project charter is one of the key deliverables to come from
the initiation process. The project charter should by issued by
❑ A. One or more functional managers
❑ B. The head of the performing organization
❑ C. A manager external to the project
❑ D. The CFO

Back 92

C
Answer C is correct. The other answers could be accurate in specific situations,
but their role alone does not meet the key criterion of being “external” to the
project team. Answers A, B, and D are incorrect because these individuals are
not external to the project.

Front 93

The direct cost to manufacture a replacement auto part for a
2001 vehicle is $24.97 and indirect costs (including utilities) is
$4.50 per part, labor at $2,119 per month, and variable costs
of $14.32. What is the wholesale cost to produce this auto
part?
❑ A. $24.97
❑ B. Not enough information is provided
❑ C. $43.79
❑ D. $39.29

Back 93

B
Answer B is correct. In order to calculate the cost of the auto part, you need to
know all of the costs associated with this part, which are not provided in this
problem. Although there is a lot of information provided in this example, it
does not provide enough information to determine a per-item cost. In order to
determine the cost to manufacture each item, you need to know all costs that
are directly related to the production of that specific item. Therefore, Answers
A, C, and D are incorrect.

Front 94

During the initiation of a project, numerous ideas will surface
whenever you are discussing goals and objectives for the project.
SMART objectives are much easier to assign to team members
when they are involved in the initiation phase rather than
when assignments are distributed in an autocratic manner.
SMART objectives are
❑ A. Aligned with the organization’s strategic goals
❑ B. Easily achievable
❑ C. Specific, measurable, assignable, realistic, and time based
❑ D. Used with the MBO management approach

Back 94

C
Answer C is correct. This acronym is frequently used in textbooks inside and
outside of Project Management circles to explain why it is vital that you quantify
objectives, set due date time frames, and assign responsibility for tasks. This
common-sense approach to defining objectives can be a positive tool for a project
manager. Answers A, B, and D are all incorrect because they are not the definition
or the concept of SMART goals.

Front 95

Project Management is a relatively new profession. Frequently,
the early project managers were looked upon as operations
managers or some other title that did not adequately describe
the work they were actually doing. Typically, the early project
managers were selected by which organizational level?
❑ A. Human resources
❑ B. Computer sciences
❑ C. Executive
❑ D. Engineering

Back 95

D
Answer D is correct. Early Project Management was tied with aerospace and government
defense departments. The emphasis upon engineers and engineering
tools was closely tied to the Project Management profession for a long time until
Information Technology began to place a heavy emphasis on its utilization for the
development and implementation of IT projects. In today’s Project Management
world, there is a heavy emphasis on Information Technology projects because
many of them involve new development and a certain amount of ambiguity.

Front 96

As an experienced project manager, you know there is an
inherent amount of risk with any project. During what phase
of the project life cycle is the highest level of risk and uncertainty?
❑ A. Controlling
❑ B. Executing
❑ C. Planning
❑ D. Initiating

Back 96

D
Answer D is correct. Every project has the highest level of risk and uncertainty
at the initiation of the project. This is due to the fact that few, if any, of the deliverables
have been provided and the milestones have not been met at the beginning
of a project. As milestones are met and deliverables are provided, the risk
and uncertainty decreases as you develop successes for the project. Your risk generally
decreases as you proceed from the initiation phase to the planning phase to
the executing phase and closeout. Therefore, Answers A, B, and C are incorrect.

Front 97

A business analyst helps provide a beginning blueprint for the
project to develop structure and encourages discussions about
the needs of the project. Which document describes the business
need, the quantifiable criteria that must be met by the
project, and the key deliverables, as well as authorizes the
project and the final product of the project?
❑ A. Business requirements document
❑ B. Executive summary
❑ C. Project charter
❑ D. Gantt chart

Back 97

C
Answer C is correct. Answer A is incorrect because the business requirements
document does not provide project execution details that are contained in the
charter. Answer B is incorrect because an executive summary generally is a brief
overview of the project and does not provide granular details about the actual
implementation and deliverables. Answer D is incorrect because a Gantt chart
is used to show timelines for the various tasks associated with the project.

Front 98

Norma is a new product development project manager who
frequently has to deal with scope creep at her company due to
the various silos within her company and competing demands
at each of the profit centers. She frequently becomes frustrated
because her projects seem to become “never ending.” Which
of the following is not a scope management process that
Norma can utilize?
❑ A. Scope planning
❑ B. Scope reporting
❑ C. Initiation
❑ D. Scope verification

Back 98

B
Answer B is correct. Answers A, C, and D are incorrect because they are
defined by the PMBOK as scope management processes, including initiation,
which is the first step in the scope management process.

Front 99

Jeffrey has been given the assignment to summarize his project
and provide a status update for next week’s steering committee
meeting. As part of his presentation, he will present the scope
document and associated deliverables. This scope statement
provides a foundation of information to begin the project and
gives the team an idea of what it is trying to accomplish.
Which of the following statements is not true about a scope
statement?
❑ A. The scope statement does not include a description of project
objectives, such as cost, schedule, and quality measures.
❑ B. The scope statement provides a documented basis for preparing
the work breakdown structure (WBS).
❑ C. The scope statement is not developed by functional managers
during the concept phase of a project.
❑ D. The scope statement is not the basis for the contract between
the buyer and seller.

Back 99

C
Answer C is correct. The scope statement can be developed by the functional
manager, or any other manager besides the project manager, during the initiation
phase of the project. Answer A is incorrect because a scope statement does
include these items. Answer B is incorrect because the scope statement is not
directly affiliated with the work breakdown structure (WBS). Answer D is a
true statement and therefore incorrect for this question. The scope statement is
not the basis for a contract between the buyer and seller and is therefore not
the correct response in this situation.

Front 100

Project authorization is one of the processes that is associated
with the initiation phase of a project. Authorizations can come
in many different forms, and projects are generally authorized
by all of the following except
❑ A. Technological advances
❑ B. Customer request or market demand
❑ C. Executive year-end bonuses
❑ D. Business or social needs

Back 100

C
Answer C is correct. Project authorizations should not be exclusively based
upon the impact of an executive’s bonus (many people would agree that it
should not ever be based upon an executive’s bonus). Answers A, B, and D are
common events that predicate the need for project authorization and can
evolve into large scope projects.

Front 101

There are some major differences between the project life
cycle and the product life cycle. These differences can have a
significant impact upon the Project Management requirements
and approach utilized during the initiation process. Inputs into
the initiation process include all of the following except
❑ A. The product charter
❑ B. The strategic plan
❑ C. The project selection criteria
❑ D. Historical information

Back 101

A
Answer A is correct. The charter is not an input into the project initiation
process. Inputs to the project initiation process are a product description, a
strategic plan, a project selection criteria, and historical information. Answers
B, C, and D are inputs into the initiation process and therefore incorrect for
this question.

Front 102

Tools and techniques is a term that is frequently used in the
PMBOK to describe the various options and actions that a
project manager can take when faced with various situations or
opportunities. The tools and techniques for the initiation
processes include
❑ A. The communication plan
❑ B. Expert judgment
❑ C. The project budget
❑ D. The WBS

Back 102

B
Answer B is correct. Answers A, C, and D are not tools and techniques used
during the initiation process.

Front 103

Subject matter experts (SMEs) are resources that are imperative
to the success of a project. Many times, project managers
are not experts in the areas they are managing and frequently
must rely upon others’ expertise. In which scope-management
process are SMEs first used?
❑ A. Scope planning
❑ B. Scope definition
❑ C. Initiation
❑ D. Scope verification

Back 103

C
Answer C is correct. Initiation is the first step in the scope management
process, and expert judgment is one of the techniques routinely utilized.
Answers A, B, and D are incorrect because they would come after the initiation
process.

Front 104

Assumptions, constraints, and the project charter are three of
the outputs from the initiation phase of a project. From the
point of initiation, why should assumptions be documented for
the team?
❑ A. Assumptions limit the project team’s options for decision
making.
❑ B. Assumptions might prove to be incorrect. The ability to identify
these assumptions allows for baseline adjustments in case
of project crisis.
❑ C. Assumption analysis is a key technique of risk identification.
❑ D. In case of schedule or budget overruns, the documentation of
assumptions provides an accountability trail.

Back 104

C
Answer C is correct. Answer A is incorrect because constraints limit your
options. Answer B is incorrect because it’s not the correct process for adjusting
project baselines. Answer D is incorrect because, although it’s a tempting
answer based on real-world experience, it’s not the answer PMI is looking for,
and it would be more applicable to project controlling.

Front 105

The assignment of a project manager to a project is one of the
key outputs from the initiation process. In general, when
should a project manager be assigned to a project?
❑ A. Before the project plan execution phase
❑ B. When the stakeholders choose him
❑ C. After the project planning is done
❑ D. This is decided in the WBS

Back 105

A
Answer A is correct. The project manager should be assigned to a project as
early as possible in order to allow him the opportunity to participate in the
planning aspects of the project. Answer B is incorrect because the stakeholders
are generally not the people that choose the project manager. Answer C is
incorrect because just the opposite is correct, and the project manager should
definitely be assigned to the project before the project planning is complete.
Answer D is incorrect because the work breakdown structure does not mandate
when the project manager will be assigned.

Front 106

One of the deliverables that comes from the initiation phase
can come in the form of a signed contract or a formalized document.
This deliverable should be prepared by someone who
is external to the project and utilizes this as a catalyst for the
project to move forward. This deliverable is known as the
❑ A. Scope statement
❑ B. Project charter
❑ C. Change request
❑ D. Status report

Back 106

B
Answer B is correct. The project charter is one of the most important outputs
of the initiation phase. Answer A is incorrect because the scope statement is not
one of the outputs of the initiation phase. Answer C is incorrect because a
change request is generally developed after the initiation phase of the project,
not during it. Answer D is incorrect because the status report is the output of
the execution phase of a project.

Front 107

As a project manager, you are required to look at the attributes
of a new hotel project in Las Vegas that will have a positive
financial impact upon your organization. The cost benefit
ratio is a project selection method and one way to determine
whether the project is appropriate for your company. This
ratio identifies the relationship between the financial cost and
the benefits of a proposed project. If the cost benefit ratio for
the new Las Vegas hotel project is .78,
❑ A. The project should go forward.
❑ B. The project manager will determine a plan to reduce the CR
to zero.
❑ C. The project will be successful.
❑ D. It is unfavorable.

Back 107

D
Answer D is the best answer. A benefit cost ratio (BCR) that is lower than 1.0 is
unfavorable because you are spending more money than you are receiving benefits.
Answer A is incorrect because the project manager should review the
project to determine whether it should go forward and develop ways to increase
the BCR to 1.0 or more. Answer B is incorrect because the BCR should not be
reduced to zero. A BCR of zero indicates that the project does not have any
benefits associated with the expenses of a project. Answer C is incorrect because
the project will not likely be successful, unless there are benefits that outweigh
the expenses and effort associated with the completion of the project.

Front 108

ABC Company project manager, Doug, is not an accountant
but he must make several financial decisions for his new project
for the company. In his research, he has found there are
several accounting-related attributes he needs to consider
before he talks with the steering committee about the new
project. In his presentation, he needs to describe the interest
rate that makes the net present value of all cash flows equal
zero. This is known as
❑ A. Prioritization of financial outcomes
❑ B. Future value (FV)
❑ C. IRR
❑ D. Present value (PV)

Back 108

C
Answer C is correct. The internal rate of return (IRR) is the return that the
company would earn if it invests in the project. Answer A is incorrect because
prioritization of financial outcomes is not a PMI term and not an appropriate
response for this question. Answer B is incorrect because the future value (FV)
is not associated with the internal rate of return. Answer D is incorrect because
the present value is the value today for future cash flows.

Front 109

Problems, opportunities, and business requirements are stimuli
that management responds to by creating projects. Susan is
working as a project manager for Big Chip Information
Technologies and has developed several programming code
changes that have revolutionized Big Chip and how it interacts
with its customers. A technological advancement such as the
development of the personal computer is
❑ A. An advancement that the project manager should incorporate
into her current projects
❑ B. Scope creep
❑ C. An advancement that the project manager should incorporate
into her future projects
❑ D. A reason to authorize a project

Back 109

D
Answer D is the best answer. Technological advances, market demand, customer
requests, and legal requirements are some of the triggers that signify the
need to authorize a project. Answer A is correct but not the best answer for this
question. Answer B is incorrect because scope creep is not associated with the
project authorization process. Answer C is incorrect because any advancement
that can have a positive impact upon a project should be incorporated into
projects as soon as they are available.

Front 110

You are a project manager for the redevelopment of the
Hoover Dam. Your team has been provided with the scope
statement, but it lacks many description details. Your team is
concerned because the project is in the initiation phase and it
wants to postpone it until it has more information. As the
project manager, you recommend that
❑ A. The team should go forward, but be cautious about the lack
of details and the impact upon the timeline for the project.
❑ B. The project should not go forward until the stakeholders
agree about the scope and purpose of the project.
❑ C. The team should verify the scope and realize that more
details will be available as more project characteristics are
progressively elaborated.
❑ D. The team should review the project selection criteria for the
Hoover Dam project.

Back 110

C
Answer C is correct. The project details and description will usually have less
detail at the beginning of the project and will increase as the characteristics are
progressively elaborated. Answer A is incorrect because the team should confirm
that they understand the essence of the scope of the project, even if the
details might be ambiguous at the beginning of the project. Answer B is incorrect
because the project should go forward; however, the team should request
further clarification of what the project scope entails. Answer D is incorrect
because the project selection criteria should be established before the project
begins.

Front 111

According to the PMBOK, the documents the characteristics
of the product or service that the project was undertaken
to create.
❑ A. project definition
❑ B. product description
❑ C. scope statement
❑ D. strategic plan

Back 111

B
Answer B is correct. The product description provides the characteristics of
the service or product that the project was utilized to develop. Answer A is
incorrect because project definition is not an official PMI or PMBOK term.
Answer C is incorrect because a scope statement is a document that provides
the description of what the project entails. Answer D is incorrect because the
strategic plan is the input into the initiation process along with the strategic
plan, project selection criteria, and historical information.

Front 112

Chuck is the project manager for a new point of sale (POS)
implementation for a national grocery chain. At the beginning
of the project, Chuck must rely upon input from numerous
SMEs in order to make correct decisions. This tool is an
example of
❑ A. Stakeholder input
❑ B. Team member expertise
❑ C. Expert judgment
❑ D. Consultant intuition

Back 112

C
Answer C is the best answer. An SME (subject matter expert) provides expertise
and advice to the team for the project. Expert judgment and project selection
methods are tools and techniques that are utilized during the initiation of a
project. Answers A, B, and D are incorrect because they are not tools and techniques
that are utilized during the initiation process.

Front 113

Scott is a government employee who is new to the Project
Management world. He was just promoted to this role and
wants to learn more about how he can advance within his
organization. During the initiation phase of his first project,
why should Scott document assumptions for the project?
❑ A. Because the assumptions might be incorrect, the ability to
identify these assumptions allows for baseline assumptions in
case of a project problem.
❑ B. Assumptions can limit the team’s options for decision making.
❑ C. In case of schedule or budget overruns, the documentation of
assumptions provides a paper trail of responsibilities.
❑ D. Assumption analysis is a technique for risk identification.

Back 113

D
Answer D is correct. Assumptions have an inherent amount of risk and should
be evaluated during the initiation phase to determine the potential impact upon
the project. Answer A is incorrect because assumptions are not baselined in a
project. Answer B is incorrect because assumptions do not generally limit the
team’s options; however, constraints can limit the team’s options. Answer C is
incorrect because assumptions are not correlated with the project responsibilities
and do not impact the overruns on a project.

Front 114

A good CFO will tell you that it is important to look at your
bottom line and determine how to increase profits for the
organization. Veronica, the new CFO at a local university, is
taking that approach and applying it to new projects.
Therefore, she wants to include costs from each phase of the
project on a total expenditure line item in the annual budget.
This total expenditure is known as
❑ A. An opportunity cost
❑ B. A sunk cost
❑ C. NPV
❑ D. A life cycle

Back 114

D
Answer D is correct. Life cycle costing includes the costs from each phase of
the project life cycle when the total investment costs are calculated. Answer A
is incorrect because an opportunity cost is the difference between a chosen
investment and the one that is passed up. Answer B is incorrect because sunk
costs are costs that have been incurred and cannot be reversed. Answer C is
incorrect because net present value (NPV) is the present value of cash inflows
(benefits) minus the present value of cash outflows (costs).

Front 115

Margaret works for an American textile manufacturer that outsources
several parts of its operations to an organization in
Ireland. At the beginning of the outsourcing project, a charter
was developed. The appropriate person to develop this charter
would be
❑ A. A manager external to the project
❑ B. The project manager
❑ C. The functional managers in America and Ireland
❑ D. The Irish Consulate

Back 115

A
Answer A is correct. The project charter should be developed by someone
who is external to the project. Sometimes this external person actually becomes
the project sponsor and provides support to the project because she either originated
the idea for the project or worked with the originator. Answers B and C
are incorrect because these individuals are not external to the project. Answer
D is incorrect because a government official associated with a vendor would
not be involved with the development of a charter.

Front 116

Thomas Company has purchased a new server for its IT
department and expects to use it until it becomes obsolete.
The server cost $4,500 and can be used for 10 years. It has a
resale value of $2,000 after 5 years and a resale value of $1,000
after 7 years. It is obsolete in the 10th year. Using straight-line
depreciation, calculate the expense per year for this piece of
hardware:
❑ A. $4,500
❑ B. $3,500
❑ C. $2,500
❑ D. $450

Back 116

D
Answer D is correct. Straight-line depreciation is a method of depreciation
that divides the difference between an asset’s cost and its expected salvage value
by the number of years it is expected to be used. Therefore, the calculation is
($4,500 [cost]) – ($0 [salvage value at obsolescence])/10 years = $450 per year.

Front 117

Relocating 200 employees from one building to another is
your new responsibility in a recent company reorganization.
Because there is a large volume of people involved with this
project, a multiphase approach will be used in order to minimize
the impact upon the workflow of the company.
Consequently, payments will need to be made on leases for
both locations until all employees have been moved. A lease
payment on the second building is an example of a
❑ A. Project assumption
❑ B. Direct cost
❑ C. Variable cost
❑ D. Fixed cost

Back 117

D
Answer D is correct. A fixed cost is a constant expense, regardless of the level
of activity within the company and does not vary based upon the level of output.
Answer B could be correct because a lease payment is a direct cost, but it is
not associated with a product in this case, so it is not the best answer. Answer C
is incorrect because variable costs are generally associated with the manufacture
of a product, and vary with the volume of product produced.

Front 118

Project budgets, resources, sustainability, and schedules are
difficult issues to juggle. As a project manager, you are always
trying to maintain a balance between all of these project
aspects. These topics are known as
❑ A. Milestones
❑ B. Assumptions
❑ C. Inputs
❑ D. Constraints

Back 118

D
Answer D is correct. Constraints are factors that can limit the options of the
team and need to be identified so they can be evaluated for their impact upon
the outcomes of the project. Answer A is incorrect because milestones are goalrelated
achievements and not applicable to this question. Answer B is incorrect
because assumptions are factors that are considered to be true, real, or certain.
Answer C is incorrect because inputs are the project-related efforts and contributions
that are related to outputs, tools, and techniques.

Front 119

Due to market demand of the new low-carb potato chips,
Louie is working a lot of hours at the local factory. Because
Louie recognizes that the product introduction and life cycle
are the same as with a previous product he worked on that was
very successful, he anticipates this product will be successful as
well, based upon
❑ A. Expert judgment
❑ B. Historical information
❑ C. Demographic studies
❑ D. The strategic plan

Back 119

B
Answer B is the best answer. The experience that Louie had with the previous
product life cycle is the knowledge that he can draw upon to anticipate similar
results in the future. Answer A is not correct because Louie would not necessarily
be considered an expert, especially if he had limited experience in that
area. Answer C is incorrect because demographic studies involve the analysis of
various groups of individuals to evaluate what categories they can be broken
into and is not applicable to this situation. Answer D is incorrect because a
strategic plan is involved as an input into the initiation process and is more
related to the support of the performing organization’s goals than the prediction
of future sales of potato chips.

Front 120

The scope management process is challenging and many times
can involve a project review board to make the final determination
in order to minimize scope creep. During what scope
management process are SMEs first utilized?
❑ A. Scope verification
❑ B. Scope planning
❑ C. Scope definition
❑ D. Initiation

Back 120

D
Answer D is correct. Because the change control process occurs during the
entire project, from initiation to closeout, the initiation phase is the first step in
the scope management process, and SMEs provide input as a tool during this
phase. Answer A is incorrect because the scope verification process occurs after
the initiation phase, when the SME’s input is needed. Answer B is incorrect
because scope planning occurs after the initiation phase of the project. Answer
C is incorrect because the SME’s input is needed before the scope definition
process of the project.

Front 121

The new CIO for Mega Hard Drive Corporation, Roger
Bigbucks, brings John into his office to discuss a new project
that has been approved to improve the security access to their
corporate systems worldwide. Roger explains the key objectives
of the project, general time frame, and business value.
The CIO assigns John to be the project manager and ends the
meeting. What is the first thing John needs to do?
❑ A. Determine who the key stakeholders are and have a kickoff
meeting.
❑ B. Find out how much money he has to use for the project.
❑ C. Order new business cards that show he is the project manager.
❑ D. Begin developing the scope definition.

Back 121

A

Answer A is the best answer. A kickoff meeting is indeed one of the first things
a project manager should schedule and is in fact the initial task in scope
planning. Answer B is tempting, because the amount of money for use on the
project could indeed be a constraint; ideally, however, a project manager will
determine the scope, activities, and resources needed, and then develop the
budget needed. Answer C is also tempting in terms of showing authority to do
a project; however, John’s CIO just authorized him to do the project, and a
business card does not necessarily give him the authority. Answer D is incorrect
because scope definition is after scope planning, and requires as input the scope
statement, which is defined in scope planning.

Front 122

Ed is asked to audit a relatively new project that creates a web
interface for warranty claims processing at a manufacturing
company. The project is already in trouble with a lot of new
changes, and business partners are becoming frustrated.
During interviews with the project team, Ed realizes that each
individual has a different view of what the project is supposed
to accomplish. After reviewing the project charter, he notices
that individual assignments are listed, but no objectives or
high-level deliverables. What should Ed recommend the project
manager do to help save this project?
❑ A. Have the project manager publish a description or explanation
of the business need the project is going to address.
❑ B. Change the project charter to include objectives and highlevel
deliverables with individuals assigned and time frames.
❑ C. Develop a scope statement with the project stakeholders.
❑ D. Hold a kickoff meeting to get everyone on the same page.

Back 122

C
Answer C is correct because a scope statement addresses the description of the
business need, high-level objectives and deliverables, and a brief description of
the project. This will help to get everyone on the same page. Answer A does
not address everything that a scope statement addresses, so it is not the best
answer. Answer B is incorrect because the project charter does not include
resource assignments and time frames. Answer D is tempting because holding a
kickoff meeting does indeed serve that purpose, but the scope statement is what
will help to get the project focused correctly.

Front 123

Paul is given a project charter and is assigned to be the project
manager. He is ready to begin progressive elaboration of the
project scope and tasks. Which of the following tools and
techniques is not appropriate for him to use at this time?
❑ A. Alternatives identification
❑ B. Analogous estimating
❑ C. Work breakdown structure templates
❑ D. Benefit cost analysis

Back 123

B
Answer B is the best answer because it is a technique associated with cost estimating.
Answers A, C, and D are incorrect; because Paul is ready to begin progressive
elaboration of scope and tasks, he is ready for scope planning and
scope definition, and these are tools and techniques used for those tasks.

Front 124

You are working on a new project to develop a new wireless
product with ease-of-use features recommended by customers.
It is as yet undetermined which features and the extent to
which each feature will be incorporated into the product. You
have a focus group that will continue to evaluate the features
as the project goes forward. The focus group is authorized to
suggest changes, as are your engineers and the quality department.
As a project manager, what will help you most to minimize
the effect of these changes?
❑ A. A change management plan.
❑ B. A scope management plan.
❑ C. Do not continue with the project until all of the features are
clearly defined in the scope statement and scope definition.
❑ D. This is an expected part of every project. A good project
manager will have a communications plan in place to be sure
everyone knows what is happening on the project.

Back 124

B
Answer B is correct. Answer A is tempting because the problem focuses on
changes. However, because we are talking about the elaboration of the product’s
characteristics, we are talking about scope changes, and therefore Answer
B is the best answer. Answer C is also tempting because it is difficult to move
forward on a project until the scope is clearly defined (especially in systems
development projects), but with products and certain types of web development,
scope changes can be frequent, and a formal scope management plan is
needed. Answer D is true from a project perspective, but does not address the
scope issues.

Front 125

In January, Connie, a marketing manager for a toy manufacturer,
is preparing a new red-haired doll for release during the
Christmas season. This means it needs to be ready to market by
the February Toy Fair, where toy retailers make their choices
about what toys to buy for the next year. The project manager
for the toy development is in the process of ensuring the toy
meets federal safety standards, which it does, but the product is
running into a problem with additional non-federal safety issues
that are only now being uncovered. Identify the assumption,
constraint, and product description the project manager should
have documented in the scope-supporting details.
Qu✓ick Check
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50 Chapter 3
Quick Answer: 71
Detailed Answer: 72
Quick Answer: 71
Detailed Answer: 72
Quick Answer: 71
Detailed Answer: 73
❑ A. Assumption: The product must be ready for the market in
February.
Constraint: Safety standards.
Product Description: Includes the fact that it is a Christmas toy.
❑ B. Assumption: Federal safety regulations are sufficient for a
safe toy.
Constraint: The product must be market ready by February.
Product Description: The toy is a red-haired doll.
❑ C. Assumption: The project manager is responsible for the
product’s safety results.
Constraint: The toy must meet federal safety standards.
Product Description: The product is a toy.
❑ D. Assumption: Non-federal safety issues might come up.
Constraint: The toy must be sold at Christmas.
Product Description: The toy must appeal to toy retailers.

Back 125

B
Answer B is correct. This is an example of a PMI question that tells you what
the work product or output is, but expects you to know how to use business
knowledge to apply to the question. Arguments can be made for many assumptions,
but in this case, the best answer is Answer B. The biggest assumption,
and an incorrect one (which might have been avoided had it been stated), was
that federal safety standards were sufficient to make a toy safe. The constraint
is the time frame in which the toy must be ready, and part of the product
description should include that the toy is a red-haired doll. Answer A is incorrect
because the statement “the product must be ready for the market in
February” is a constraint and not an assumption. Answer C is incorrect because
the statement “the product is a toy” does not provide enough information to be
considered a product description. Answer D is incorrect because the statement
“the toy must appeal to toy retailers” is not a product description.

Front 126

The AAA Cleaning Service Company is in the process of
developing and marketing a new yearly bundled package of
cleaning services to be available in its Eastern division and has
assigned Bob Brown to be the project manager for the new
product rollout. There are just a few major deliverables:
Develop new contracts, create an advertising campaign, provide
service training, and update the ordering system to handle
the new product. Management has agreed to Bob’s summary
of tasks and expectations, but wants Bob to tell them how
much he thinks the project will cost and how long it will take
to do the rollout because marketing is anxious to begin preselling
the service. What should Bob do first?
❑ A. Quit. There is not enough information for Bob to be successful
in this rollout.
❑ B. Develop a scope statement so that he is certain he has the
project well defined.
❑ C. Create a work breakdown structure of the tasks to be done.
❑ D. Give an estimate of six months and $250,000 based on his
prior work on other projects in different fields.

Back 126

C
Answer C is correct. Bob has a pretty clear scope and defined deliverables. In
order to be able to estimate project cost and time, the next step would be to
create a work breakdown structure of the deliverables decomposed into component
tasks. Answer A is incorrect because even though Bob doesn’t have a lot of
information at this point, as a project manager, it is his job to progressively
elaborate the project. Answer B is incorrect because Bob’s summary of tasks
and expectations is essentially his scope statement. Answer D is incorrect
because Bob cannot rely solely on his personal experience to deliver an accurate
cost and time estimate.

Front 127

Doug Johnson, the manager of operations at a small liquor
distribution company, has contracted an outside firm to develop
a new warehouse picking system. He is generally satisfied
with their performance so far, but in some meetings, he feels
they are going beyond the scope of the project as originally
defined. Because the contract is time and materials, Doug
wants to be sure only the work that is defined in the project
scope is what gets done. What project documentation should
Doug ask the project manager for?
❑ A. The scope statement, work breakdown structure (WBS), and
any approved changes.
❑ B. Meeting minutes from the kickoff meeting, where the project
scope was discussed.
❑ C. The project charter.
❑ D. No documents are needed for review. Doug simply needs to
clarify scope with the project manager

Back 127

A
Answer A is the best answer. Because the scope statement and WBS define the
work to be done and the WBS is intended to also ensure no unnecessary work
is done, Doug can look at these with the project manager to understand any
differences he perceives. Answer B is incorrect because meeting minutes,
although helpful historical documents, do not define the “contracted” scope.
Answer C is also a helpful document, but will not tell Doug the details of what
he needs to know. Answer D is tempting, but not the best answer. Reviewing
the actual WBS provides a documented and clear definition vision of the end
product of the project. A conversation does not.

Front 128

The WBS is the foundation for all but which of the following?
❑ A. Coordinated and integrated planning
❑ B. Performance reporting
❑ C. Scope management
❑ D. Project communication

Back 128

D
Answer D is correct. This is tricky, because the WBS helps to facilitate communication,
but is not the foundation of communication. Answers A, B, and C
are all supported directly by the WBS.

Front 129

Jenny is developing a WBS for her project. She knows that
PMI believes these are important, but she is struggling with
the structure and content of the WBS. Which of the following
are not items that will help her?
❑ A. Each WBS element should represent a single tangible deliverable.
❑ B. The WBS elements should be structured by organizational
unit.
❑ C. Think through how each component contributes to the
finished deliverable.
❑ D. All significant reporting items should be included in the WBS.

Back 129

B
Answer B is correct. A WBS should be structured with a deliverable focus.
PMI feels project failure can result from nondeliverable focused WBS elements.
Answers A, C, and D are incorrect because they are items that can help
in the development of a WBS.

Front 130

Ralph is a quality control reviewer for all projects at a large
clothing manufacturer. He has reviewed Sally’s project and
feels that the cost accuracy and duration estimates need to be
improved and that the project’s projected end date is too far
into the year. What should Sally do first?
❑ A. Reinterview the subject matter experts (SMEs) and ask for
better estimates.
❑ B. Reexamine the WBS to see if it can be further decomposed,
to allow for better estimating on cost and duration.
❑ C. Tell Ralph the estimates are sufficient. He is just a quality
control guy and has no real understanding of her project.
❑ D. Reduce all the cost and time estimates by 10% based on
Ralph’s feedback.

Back 130

B
Answer B is the best answer. Although it might be true that Ralph does not
have the insight into her project, Sally’s first step should be to review the WBS
and be sure it is at a sufficient level of detail to provide the accuracy of estimates.
Answer A is incorrect because reinterviewing SMEs does not address the
root of the problem. Sally can do so after she has examined the WBS. Answer
C is incorrect because a good project manager will always want to produce the
best quality project, and the quality control function—if it is auditing a
project—probably has some knowledge of the corporate projects and general
expectations. Answer D is incorrect, although it does happen often in real life.

Front 131

Rod is new to Project Management and is trying to be sure he
is following the entire set of core planning processes properly.
He is in the process of developing a WBS, and realizes activity
definition is next, but is confused about the difference between
the two. As a seasoned project manager, and one ready to take
the PMP exam, how would you describe the difference
between the two to Rod?
❑ A. The WBS is focused on deliverables, whereas activity definition
is focused on the tasks to create those deliverables.
❑ B. The WBS is focused on scope, and activity definition is
focused on planning.
❑ C. No one really uses the WBS, and it is essentially the same as
the activity definition. Most managers use a project planning
software tool instead.
❑ D. WBS is focused on the project, whereas activity definition is
related to the Project Management activities that must take
place to ensure the project is well executed.

Back 131

A
Answer A is correct. Answer B is incorrect because, although the WBS is part
of scope definition, both scope definition and activity definition are part of
project planning. Answer C might be the attitude that is encountered sometimes
in the real world, and Answer D describes project control processes, not
activity definition.

Front 132

During the activity definition process on his project, Jeff realizes
there are some deliverables that are missing from the
scope definition process. What should he do?
❑ A. Simply define the additional activities.
❑ B. Invoke the scope change management process.
❑ C. Update the WBS to include the missing deliverables, and
define the appropriate activities that support creating those
deliverables.
❑ D. Check with his manager to determine if the deliverables in
question need to be included in the project, and then convene
the change control board.

Back 132

C
Answer C is correct. Often in the planning process, and particularly during
progressive elaboration and decomposition, missing deliverables can be identified.
This does not mean they are out of scope. The WBS needs to be updated
and the activities to support creating that deliverable need to be planned.
Answer A is incorrect because it fails to update the WBS. Answers B and D are
incorrect because failing to identify a deliverable in the scope definition process
does not mean a scope change has occurred.

Front 133

Necessary and sufficient conditions are used in law, logic, and a
number of other disciplines. In what way can a project manager
benefit from the use of the necessary and sufficient concept?
❑ A. A project manager should check to make sure he has the necessary
resources and sufficient time to complete the project.
❑ B. It is a concept that can be used to verify the correct level of
decomposition for WBS and activity definition.
❑ C. Project managers only use this concept with projects that
involve contracts with outside vendors.
❑ D. There is no such concept.

Back 133

B
Answer B is correct. Using the necessary and sufficient test is a technique of
decomposition. Are the lowest levels identified both necessary and sufficient to
accomplish the deliverable? If not, there might be activities that need to be
removed or added. Answer A is tempting because it is true, but it is not an
example of the necessary and sufficient concept. Answer C can be true in that
contracts often use the necessary and sufficient test as criteria for completeness,
but it is not the best answer. Answer D is incorrect because necessary and sufficient
conditions is used in law, logic, and a number of other disciplines.

Front 134

Alyea is ready to begin activity definition for her project. She
has the project scope statement, a WBS, the corporate policy
of defining activities to a 20-hour period, information from a
meeting with her SMEs, and a team room identified, although
it is not yet available. What more does she need before she
starts?
❑ A. To identify her assumptions
❑ B. To identify her constraints
❑ C. To obtain input from experts on the project
❑ D. Historical information on projects similar to her own.

Back 134

D
Answer D is correct. Alyea has five of the six inputs to activity definition. Her
constraints are the corporate 20-hour work package policy; her expert judgment
comes from her SMEs, or subject matter experts; and she is assuming her
team room will be ready in time for the project to start. Answers A, B, and C
are incorrect because identifying assumptions, identifying constraints, and
obtaining input from experts on the project are not inputs to the activity definition
process.

Front 135

RF Sportswear is undertaking the construction of a new manufacturing
plant. You are working with John, the project manager
who is working on the project plan. He has asked for the
physical plant layout plans, which you don’t have yet because
the project has just started. You participated in helping to
develop the WBS and the activities list with John. As a former
project manager, you realize what John needs, and you send
him a copy of the mock-up drawing done for the steering
committee and approval of the project. Why does John need
the plans at this point?
❑ A. John is working on activity sequencing and the plans are
needed for helping to determine dependencies.
❑ B. John needs to archive all the documents for the project in one
project folder for future use.
❑ C. You know John is not an engineer and that he was not at the
steering committee meeting.
❑ D. John does not need the plans, but from a management standpoint,
you want to respect his authority as the project
manager.

Back 135

A
Answer A is correct. The plans are part of the product description, which
needs to be reviewed as input into the activity sequencing process. Answers B
and C may be true, but they are not the best answer. Answer D is false, and
therefore incorrect.

Front 136

Your company has a policy of having every software project
reviewed and approved by the Architecture Review Board
prior to the construction phase of a project. You are currently
in the process of activity sequencing. This is an example of
what?
❑ A. Gatekeeping
❑ B. Milestone
❑ C. New scope for the project
❑ D. Project integration

Back 136

B
Answer B is correct. The approval by the Architecture Review Board is a milestone
you want to include in activity sequencing so that you can ensure the
requirements for meeting the review board’s approval are met. Answer A is
tempting because the question references phase-end activities; however, it is
not an example of gatekeeping because the project is not being authorized to
continue based only on the architecture review. Gatekeeping often involves the
review of other factors as well. Answer C is incorrect because the requirement
of a review board approval does not affect scope. Answer D is incorrect because
project integration planning involves project plan development, execution, and
integrated change control, which are not related to a review board.

Front 137

Elwood is developing his project plan for a construction
project, and is currently involved in determining the dependencies
between activities on his project. He is also working with a
just-in-time (JIT) inventory from his suppliers. In creating his
project plan, he knows that his prefabricated trusses need to
arrive and be installed before he can begin to lay down the
roofing. However, because he has purchased the roofing materials
from the same supplier as the trusses, the roofing material
will arrive at the same time as the trusses.
In the preceding example, what is not true about the relationship
between the truss installation and roof installation?
❑ A. It is hard logic.
❑ B. It is a start-to-finish relationship.
❑ C. It is an example of an external dependency.
❑ D. It is a finish-to-finish relationship.

Back 137

D
Answer D is correct. The trusses must be completed before the roofing can
start; therefore, the roofing has a dependency on the installation of the trusses
and is a start-to-finish relationship. Answer A is incorrect because it is hard
logic. Answer B is incorrect because it is not a start-to-start relationship.
Answer C is incorrect because this problem is an example of an external
dependency because the project depends on the supplier for the trusses and the
roofing. Because they are correct statements, they are incorrect answers for this
question.

Front 138

In the hair care industry, it is considered a “best practice” to
sweep the hair from a previous client’s haircut prior to seating
the new client. You are a project manager, and have gone in
for a haircut with your hairdresser, Jan. She has had a bad day,
and has seated you before cleaning her area. This is an
example of what?
❑ A. Bad customer service
❑ B. A discretionary dependency
❑ C. Hard logic
❑ D. Precedence diagramming method (PDM)

Back 138

B
Answer B is the best answer because it is related to Project Management.
Although Answer A may be true, it is not the best answer. Answer C is another
term for a mandatory dependency. Answer D is the acronym for precedence
diagramming method, which is a technique used in activity sequencing in
which activities are represented in boxes (also known as nodes) and are linked by
precedence relationships to show the coordination of the activities that are to
be performed.

Front 139

Joe wants to choose a tool for activity sequencing. He can use
all of the following except
❑ A. Scoring models
❑ B. Activity on node (AON)
❑ C. Arrow diagramming method (ADM)
❑ D. Graphical evaluation and review technique (GERT)

Back 139

A
Answer A is correct. Scoring models are not used with activity sequencing.
Answers B, C, and D are activity sequencing tools and therefore incorrect
answers to this question. Activity on node (AON) is also known as the precedence
diagramming method in which activities are represented by the node.
The arrow diagramming method or activity on arrow (AOA) shows the activities
on the arrow. GERT is a conditional diagramming method.

Front 140

Richard has a project that uses the rational unified process,
and iterative tasks that loop. What would be the best sequencing
method for him to use?
❑ A. PDM
❑ B. ADM
❑ C. Critical path
❑ D. GERT

Back 140

D
Answer D is correct. Answers A, B, and C are incorrect because none of those
methods allow for nonsequential activities.

Front 141

The White Paper Company is embarking on developing a new
warehouse. Gregg, the project manager, knows the warehouse
will require new systems, equipment, and construction. He has
his work breakdown structure completed, and knows he will
need staff in addition to equipment purchases. He has the
company’s purchasing policy and its temporary staffing policy
at his desk for review, but doesn’t really know what staff might
be available for work on his project. He is about to call the
Human Resources Department to ask for help. What should
he ask for?
❑ A. Company human resource policies
❑ B. A resource pool description
❑ C. New hire information
❑ D. Approved vendor information

Back 141

B
Answer B is the best answer. Although company human resource policies
might be useful, he already has the policies on his desk for review. New hire
information provides no value added for his resourcing decisions and approved
vendors are in the policies on his desk, therefore Answers A, C, and D are
incorrect

Front 142

After gathering the needed information from human
resources, Gregg is reviewing the WBS for his new warehouse
project, and is trying to separate staff needs from material
needs. He needs four programmers, two construction workers
who are experts in metal framing, one drywall hanger, and an
electrician. He will also need the actual building materials, but
he is not as familiar with construction as he is with systems
development. He has looked at a couple of other similar projects,
and has an idea of the manpower. What should he do to
determine the material requirements?
❑ A. Consult other project managers who have experience in construction.
❑ B. Hire a consultant for that part of the project.
❑ C. Check with the construction management unit of the White
Paper Company.
❑ D. All of the above.

Back 142

D
Answer D is the best answer. Gregg should get some expert advice or expert
judgment in finalizing the materials requirements. Answers A, B, and C are
correct statements and represent opportunities to find expert judgment and are
therefore incorrect answers to this question.

Front 143

On a systems development project, John needs two programmers.
He knows Jeff and Rob were able to create a program in
40 days similar to the one he wants to create on his project.
He decides to use 40 days as his estimate. This is an example
of what type of estimating?
❑ A. Parametric modeling
❑ B. Analogous
❑ C. Rule of thumb
❑ D. Fixed rate

Back 143

B
Answer B is the best answer. John is using an estimate based on a project very
similar to his own with staff he will be using. Answer A is incorrect because
parametric modeling involves using a mathematical model to predict costs, such
as dollars per line of code. Answer C is incorrect, although close; if the development
project is a common item, such as putting down new flooring, a ruleof-
thumb measurement can be used, although it is less accurate. Answer D is
incorrect because it is not a form of estimating, but a type of pricing.

Front 144

Rich is an expert Java programmer. Eric is just out of school
and is 50% as effective as Rich. Rich thinks a certain program
can be completed in three weeks. Where can Ray, the project
manager, find this information so that he can put both Rich
and Eric on the project and have it done in two weeks?
❑ A. The resource pool description
❑ B. Historical information
❑ C. His activity duration estimates
❑ D. The scope statement, which states the project must be done
in two weeks

Back 144

A
Answer A is correct. The characteristics of the resource pool, of which Rich is
an expert and Eric is new, are available in the resource pool description.
Answers B and C are incorrect but helpful in the resource planning tasks
because they both give information on how to plan for resources. Answer D is
incorrect because a scope statement, although part of inputs to resource planning,
will not help Ray decide which resources to put on the project. Further, a
scope statement should not indicate time frames.

Front 145

Nick has a 400-square-foot room to floor. He knows it takes
an average of 5 man minutes per square foot based on past
jobs to lay down the flooring, including the prep work, gluing,
and cleanup. He figures this job will take approximately 34
man hours. At $12 per hour, this will cost him $400 to have
the work done. This is what type of estimating?
❑ A. Bottom up
❑ B. Quantitatively based durations
❑ C. Analogous
❑ D. Cost based

Back 145

B
Answer B is correct. Nick is using quantity of time for each work category
(that is, minutes per foot). Answer A is incorrect because bottom-up estimating
takes each work package and estimates it, and then rolls up to a total. Answer C
is incorrect because Nick is using quantifiable data rather than a project just
like the one he is doing. Answer D is incorrect because there is no such thing.

Front 146

Raymond wants to give himself a few extra hours in his
budgeted time for a construction project to account for problems
with weather or delays in delivery. This is called
❑ A. Padding
❑ B. Risk acceptance
❑ C. Reserve time or contingency
❑ D. Mitigation

Back 146

C
Answer C is correct. Providing additional hours as a contingency is a risk mitigation
strategy; therefore, Answer C is the best answer because we are talking
about time. Answer A is incorrect because padding has no basis and is not
quantified as a risk or other type of estimate. Padding is highly discouraged by
PMI. Answer B is incorrect because adding contingency is not acceptance of a
risk, it is simply mitigation. Answer D is not the best answer, although what
Raymond is doing is a form of mitigation.

Front 147

Ryan wants to keep all his documentation in order, and is currently
doing duration estimating for his project. In addition to
his duration estimates, what else does Ryan need to do to
complete his activity duration process?
❑ A. Document assumptions made in estimating and update the
activity list.
❑ B. Provide cost estimates.
❑ C. Provide resource requirement updates.
❑ D. A cost baseline.

Back 147

A
Answer A is correct. In addition to duration estimates, Ryan needs to provide
and document the assumptions made in doing the estimates as well as any
updates to the activity list that were uncovered. Answer B is incorrect because
cost estimates are an output of cost estimating. Answer C is incorrect because
updates to resource requirements are an output of schedule development.
Answer D is incorrect because a cost baseline is the output of cost estimating.

Front 148

Al is a project manager and is making activity duration estimates
for his project based on his experience six years ago
doing some similar tasks. He doesn’t want to bother his project
staff, who will be actually doing the work. Why is Al
headed for a scheduling problem?
❑ A. He is not headed for a problem. Al has the expert knowledge
and can therefore do the estimates.
❑ B. Al should be asking the staff to make or approve the estimates
for the best outcome.
❑ C. Al is heading for project team problems by not involving his
staff in the planning process.
❑ D. Al is not considering elapsed time.

Back 148

B
Answer B is correct. Al’s experience is dated. He should be engaging the people
doing the work to help with the estimating; therefore, Answer A is incorrect.
Answer C is incorrect because it is not the best answer for this question,
although it may be true. Answer D may be true, but we have not mentioned
anything in the question that involves elapsed time versus actual work.

Front 149

Sally knows one of her key construction workers, Gordon, has
a high probability of participating in a new reality building
show. This would take him out of work for eight weeks, which
is one fourth of the construction time. He is a long-term
employee and well liked by all, and management supports his
efforts regarding the show. Gordon has a 75% chance of making
the show. Sally is working on her project plan and, specifically,
task durations. How should she address the resource
issue?
❑ A. Engage the project team to identify the effect of Gordon’s
absence on the baseline durations, and incorporate that into
the duration estimates.
❑ B. Estimate the project as-is. There is always another worker to
fill in for Gordon.
❑ C. Buy “key-man” insurance to mitigate the cost of Gordon
being gone.
❑ D. Increase all activity durations assigned to Gordon by 75%
because that is the expected probability of Gordon being on
the reality show.

Back 149

A
Answer A is correct. Engaging the project team and adjusting the estimates
based on a possible change is the best answer. Answer B is tempting, and many
companies choose to go this route, but if Gordon is a key team member, the
loss and learning curves will need to be addressed. Answer C is incorrect
because buying the insurance does not solve the schedule problem. Answer D is
mathematically incorrect. The probability that Gordon would be gone does not
translate into changing duration by the same amount.

Front 150

You are a seasoned project manager who has taken a new job
in the engineering field, about which you know very little. You
are attempting to create activity durations for your project.
What resources can you use to help?
❑ A. Prior project files from similar projects
❑ B. Commercial databases with information on projects like yours
❑ C. Consult your project team
❑ D. All of the above

Back 150

D
Answer D is the best answer because Answers A, B, and C are all correct. PMI
highly recommends historical data on similar projects. Commercial databases
are also another source of information, as is your project team, which is
assumed to have the knowledge of working on similar projects. Although
Answers A, B, and C are individually correct, the combination of all three
statements is the best answer.

Front 151

Activity durations should always have which of the following?
❑ A. Each work package identified
❑ B. A range of possible quantitative results
❑ C. Approval by management
❑ D. An order of magnitude associated with the duration

Back 151

B
Answer B is correct. A range of possible results +/- is the best answer. Answer
A is good to have for appropriate estimating, but the estimate of a given work
package does not require that all work packages be identified. Further, work
packages that are identified in the activity duration process are added to the
activities list as an output of activity duration estimating. Answer C is incorrect;
in general, activity durations need to be done by or approved by the people
actually doing the work. Answer D is tempting because order of magnitude is
an estimating term; however, it is associated with cost estimates.

Front 152

Steve is asked to provide a cost estimate for a redecorating
project. How should he proceed?
❑ A. Take the cost of raw materials and labor for each activity in
the WBS. Check previous project files and consider any risks
to delivery; then add 10% to account for the company profit.
❑ B. Add raw materials and labor costs for each activity in the WBS.
❑ C. Check competitor pricing, add the raw materials and labor
from the WBS, and then decrease by 10% to be competitive.
❑ D. Use the cost of raw materials from a similar project on a
house with the same floor plan.

Back 152

B
Answer B is correct. Answer A is tempting, but adds the profit margin, which
has to do with pricing, not cost. Answer C is similar, but is dealing with competitive
pricing. Answer D is tempting, but in a decorating project, the raw
materials can be significantly different, even if it is the same size and type of
house. Also, Answer D does not factor in labor.

Front 153

I am looking to estimate the cost on a project, but I don’t want
to spend a lot of time on a detailed analysis. I really want a
ballpark figure. What options do I have?
❑ A. None—cost estimating requires details to be accurate.
❑ B. Use the cost of similar projects.
❑ C. Use a rule-of-thumb or per-square-foot estimate.
❑ D. Add up the costs on the WBS.

Back 153

B
Answer B is correct. Although it is less accurate than adding up individual
costs from the WBS, it is less time consuming. The trade-off is accuracy.
Answer A is incorrect (but tempting) because to do a more accurate cost estimate,
you need to delve into the details. Answer C is tempting also, and possible,
except we don’t really know if the project in question can use parametric
modeling. Answer D is incorrect because it takes the most time, but it is most
accurate.

Front 154

The Back-Step Furniture and Kitchen Company has been
asked to provide a cost estimate for a kitchen bid. To do the
project, the firm will have to borrow money to finance the cost
of raw materials. What item will be most important for
the cost estimator to have?
❑ A. A low cost of materials
❑ B. Good credit
❑ C. Cheap labor
❑ D. Accurate activity duration estimates

Back 154

D
Answer D is correct. Accurate duration estimates are key because the Back-
Step Furniture and Kitchen Company is borrowing money. The longer it
borrows, the greater the cost of the job. The sooner it can collect for service
rendered, the better. Answers A, B, and C are all true, but not the best answer
for this question.

Front 155

Edward, a former U.S. Army lieutenant, is estimating a project
the way he used to in the Army. He is taking each activity,
assigning its cost, and then aggregating it to a final cost estimate.
This is an example of what type of cost estimating?
❑ A. Top down
❑ B. Bottom up
❑ C. Army method
❑ D. Parametric

Back 155

B
Answer B is correct. Estimating at the activity level and aggregating is an example
of bottom-up estimating. Answer A is incorrect because top-down estimating
is a more general technique. Answer C is incorrect because the Army issue in
this problem is a red herring. Answer D is incorrect because parametric estimating
involves quantitative measures that can be applied to any scale project.

Front 156

The sponsor of one of your projects wants to know how cost
variances will be managed. He is very concerned because other
projects have had serious cost overruns. What can you provide
him that will give him a highly detailed and formal method for
dealing with cost variances?
❑ A. A paragraph in the project plan that describes general
approaches to cost management
❑ B. A weekly one-on-one with the sponsor to discuss costs
❑ C. Weekly vendor meetings
❑ D. A formal cost management plan

Back 156

D
Answer D is correct. Although a cost management plan can be informal, this is
an appropriate scenario for a formal cost management plan, in which a sponsor
is very concerned about costs. Answer A is incorrect because it does not adequately
address the sponsor’s concerns. Answers B and C may actually be part
of your cost management plan, but they are not the best answers because both
could be in the cost management plan.

Front 157

Activity list updates happen during which project planning
processes?
❑ A. All planning processes can result in activity list updates
❑ B. Activity sequencing and activity duration estimating
❑ C. Activity definition
❑ D. Risk planning

Back 157

B
Answer B is the best answer. Updates to the activity list are done during activity
sequencing and activity duration estimating. Answer A is tempting but not
correct because some of the planning processes do not focus on activity list
updates. Answer C is incorrect because the output of activity definition is the
creation of the activity list, not updating the activity list. Answer D is incorrect
because risk planning focuses on how to approach and plan risk management
activities.

Front 158

One of the key outputs of the scope planning process is what?
❑ A. Project charter
❑ B. Scope statement
❑ C. Scope definition
❑ D. WBS

Back 158

B
Answer B is correct. The scope statement is the key output of the scope planning
process. Supporting detail (assumptions) and a scope management plan are
also outputs from the scope planning process, but not listed. Answer A is incorrect
because that is the key output of the initiating process. Answer C is incorrect
because scope definition is a planning process. Answer D is incorrect
because the WBS is the key output of scope definition.

Front 159

As a project manager, you know the WBS is important. What
are the key planning processes in which the WBS is an input?
❑ A. Cost estimating, resource planning, cost budgeting, and risk
management planning
❑ B. Scope definition
❑ C. Activity duration estimating and activity sequencing
❑ D. All planning processes

Back 159

A
Answer A is the best answer. Answer B is incorrect because the WBS is the key
output of the scope definition process. Answer C is also tempting because people
often associate the WBS and activity lists. Activity duration estimating and
activity sequencing rely on the activity lists that are generated from the WBS,
but they are not the same thing. Although Answer D is tempting, the WBS is a
key input only to the processes listed in Answer A.

Front 160

You are a project manager involved in developing a project
plan for the downtown redevelopment of Kokomo, Indiana.
You are now beginning to do some risk planning. What are
the tools and techniques you use to develop your risk management
plan?
❑ A. Gather high-quality data on project risks.
❑ B. Apply a general contingency.
❑ C. Use a risk template.
❑ D. Conduct a planning meeting.

Back 160

D
Answer D is correct. A planning meeting is the technique by which you develop
your risk management plan. Answer A shows a commitment to risk management,
but is not a technique for planning. Answer B is used for unknown risks
as a mitigation strategy. Answer C is one of the inputs to risk planning.

Front 161

John provides a list of key risks and how to mitigate those risks
to his manager as his risk management plan. Why is his manager,
Jeff, a PMP, asking him to redo his plan?
❑ A. A list of project risks is an output of risk identification.
❑ B. The risk management plan should address approaches, tools,
and data sources as well as roles and responsibilities, budgeting,
timing, interpretation rules, risk thresholds, reporting
formats, and tracking.
❑ C. The risk list should also include triggers.
❑ D. John has not involved the project team.

Back 161

B
Answer B is correct. A risk management plan is the process by which risks will
be handled during the project. Answer A is tempting, and true, but not the best
answer. Answer C is also tempting because triggers are an output of risk identification.
Answer D may or may not be true—we do not have sufficient information.

Front 162

Beth is setting up a planning meeting for developing a risk
management plan for her project. Who should she invite?
❑ A. Just the project sponsor because his perception of how the
risks will be handled is the most important
❑ B. The corporate risk manager
❑ C. The project team leaders, key stakeholders, and anyone
engaged in risk management activities for the corporation, if
applicable
❑ D. The entire project team, all stakeholders, and all o

Back 162

C
Answer C is the best answer. Using the key stakeholders and team leaders as
well as a representative of risk management is sufficient for developing a project
risk plan. Answers A and B are incorrect because they provides too narrow a
viewpoint. Answer D is tempting, but an unnecessary use of time for the risk
planning session. A broader group is appropriate for risk identification.

Front 163

Joey is new to risk management within his projects. He has
typically handled risks as they come up, and adjusted time
frames accordingly after discussing them with his sponsor. He
is now being asked to develop a risk management plan and is
complaining about having to develop a scoring and interpretation
method. What advice would you give him as a seasoned
PMP who is knowledgeable in risk management?
❑ A. Developing interpretation and scoring criteria helps to ensure
consistency in handling risks as they arise. It also helps to
weight multiple risks at one time.
❑ B. A scoring mechanism is rarely used in real life. Just put a
paragraph or two into the management plan with High,
Medium, and Low.
❑ C. Scoring feeds into the risk thresholds, which determine who
needs to be involved in mitigating a risk.
❑ D. A risk management plan is a communication tool so that all
members of the project team know how risks will be handled
as they are identified.

Back 163

A
Answer A is the best answer. Although Answer B may be true, high, medium,
and low is a method of scoring. Answers C and D are also true, but not the best
answers.

Front 164

Why are risk tolerances and thresholds important to identify
in the risk management plan?
❑ A. Tolerances and thresholds, when documented, can help to
define the target by which the project team can measure the
effectiveness of the risk response plan execution.
❑ B. Tolerances and thresholds help to define how often the risk
management process will be performed.
❑ C. Tolerances and thresholds determine what tools and data
sources will be used in risk management.
❑ D. Tolerances and thresholds provide the basis for costing the
risk management process as well as defining how risk activities
will be recorded.

Back 164

A
Answer A is correct. Answer B defines the timing that should be addressed in
the risk management plan. Answer C defines the methodology that should be
identified in a risk management plan. Answer D touches on the budgeting and
tracking that should be defined in the risk management plan.

Front 165

A risk management plan should be tailored to a given project
in what ways?
❑ A. Some companies use predefined templates for risk management
plans.
❑ B. Certain companies have predefined roles and responsibilities
as they relate to risk management.
❑ C. Some organizations have predefined risk management policies
that must be tailored to an individual project.
❑ D. The risk management plan should ensure that the level and
type of risk management efforts are appropriate to the level of
risk and importance of the project to the company.

Back 165

D
Answer D is the best answer. The risk management plan should be appropriate
to the level of risk, size of project, and importance to the company. A high risk
project that is a strategic imperative for a company should have a more detailed
risk management plan. Answers A, B, and C are tempting because they represent
inputs to the risk management plan development.

Front 166

Timing, as described in a risk management plan, affects how
often a risk management process should be performed during
the life cycle of a project. What key factor affects timing?
❑ A. Timing should be defined to allow for results to be developed
early enough to affect decisions.
❑ B. Timing is scaled to project size.
❑ C. Timing is affected by organizational policies regarding risk
management.
❑ D. Timing is directly related to the sponsor’s risk aversion
threshold.

Back 166

A
Answer A is the best answer. Although Answers B, C, and D are true, the key
factor is ensuring the risk management processes take place so that results are
developed early enough to make decisions. Decisions should then be revisited
periodically throughout the project.

Front 167

You have recently been assigned to provide an accurate project
schedule for a troubled data conversion project. You have
reviewed the project schedule created by the previous project
manager, and notice that certain task dependencies do not seem
to be correctly identified. Prior to reworking the schedule,
what will you need to do first?
❑ A. Create a network diagram to ensure task dependencies are
correct.
❑ B. Review the resource pool description.
❑ C. Review the scope statement.
❑ D. Review the project charter.

Back 167

C
Answer C is the best answer. The first place to start with a troubled project is
to ensure the activities leading up to schedule development are accurate.
Therefore, reviewing the scope statement is the first step. Answer A is tempting
because dependencies are incorrect in the schedule. As a good turnaround
project manager, you should also do Answers B and D and become familiar
with the project.

Front 168

The Big Bank has hired you on as a new project manager for
the development and rollout of new ATM software. You are
now ready to develop your project schedule. Your project has
the potential to be very active during the summer months, and
you know that some of your key team members are planning
exciting vacations during that time. What do you need to help
plan the schedule accordingly?
❑ A. Company holiday schedule, regular work hours for each individual,
and vacation times for each project team member
❑ B. Where the work activity will be taking place
❑ C. Develop leads and lags in the tasks assigned to individuals on
vacation
❑ D. Resource pool description

Back 168

A
Answer A is the best answer. Although you will need the activity attributes
described in Answer B, and the resource pool from Answer D, your resource
calendars are the best way to include vacation time into a schedule and develop
it appropriately. Answer C is incorrect because leads and lags are used to identify
real delays from order time to arrival, or curing time for cement.

Front 169

As a seasoned project manager, you know your sponsors and
executive management are keenly interested in the project delivery
date. Why are you nervous when your project sponsor wants
the delivery date as soon as you’ve developed the schedule?
❑ A. Schedule development is often iterated, as are the inputs to
schedule development, to provide more detailed and accurate
information. Therefore, the end date is likely to change until
the process has been iterated sufficiently.
❑ B. Your project sponsor provided you with a “drop dead” date,
and your schedule does not have that date.
❑ C. You have not yet incorporated contingency into the schedule.
❑ D. The schedule has not been leveled.

Back 169

A
Answer A is the best answer. Schedules often need to be iterated to provide
accurate information. Answer B is all too often the real-world experience.
However, good communication and negotiation with the project sponsor can
help mitigate those types of issues. Answers C and D may be true, but we do
not have enough information.

Front 170

Project schedule development is the discipline of determining
what?
❑ A. The start and finish dates for each project activity
❑ B. Providing a critical path by which to manage the project
❑ C. Providing early and late start and finish dates for the project
❑ D. Determining which resources should perform which tasks

Back 170

A
Answer A is correct. Answer B is tempting because a critical path does help to
manage a project, but it is not the best answer. Answer C focuses on the project,
not the activities, and therefore is incorrect. Answer D is part of scheduling,
but not the primary focus.

Front 171

In developing a project schedule, you as a project manager
need to be aware of major constraints. What are the two major
time constraints that must be considered during project
schedule development?
❑ A. Project staff vacations and corporate holiday calendars
❑ B. Resource capabilities and availability
❑ C. Imposed dates and major milestones
❑ D. Responsibility and geography for activities

Back 171

C
Answer C is correct. Answer A is tempting because calendar activities relate to
time and can be constraints. Answer B is incorrect because resource capabilities
are not related to time. Answer D is incorrect because responsibility and geography
are not related to time.

Front 172

Why are CPM, GERT, and PERT not considered sufficient to
create a project schedule?
❑ A. All three are tools and techniques of schedule development,
not the actual schedule.
❑ B. As mathematical analysis tools, they simply provide the dates
that are possible, and do not consider resource pool limitations.
❑ C. They are sufficient. Each calculates early and late start and
finish dates for each activity.
❑ D. They are Monte Carlo techniques used to provide what-if
analysis for adverse external factors on a project.

Back 172

B
Answer B is correct. Answer A is tempting because it is true by definition, but
Answer B is correct because it properly answers the question, in that these
techniques do not take into account resource pool constraints. Answer C is
incorrect because it provides possible early and late start and finish dates, but
not the actual schedule. Answer D is incorrect because none of the three are
simulation techniques.

Front 173

Roger is a project manager working on a schedule for the road
installation for a new housing development. He knows there
will be issues related to weather, as well as a big convention in
town that is directly on the delivery path for his project. He is
developing his schedule and realizes his first pass shows a date
that is one month later than the date expected by his managers.
He is fairly sure his critical path is correct, and that his
key estimates are accurate. He also knows the budget amount
he is estimating is close to what his managers wanted to spend.
What options does Roger have?
❑ A. Meet with his managers and explain his assumptions and the
project schedule. Get them to buy in to the new date.
❑ B. Determine where he can add additional resources, thereby
increasing the cost of the project, but providing the date the
managers want.
❑ C. See where certain dependencies might be moved to take place
in parallel, increasing the risk and possibly rework in the
project, but meeting the date.
❑ D. All of the above.

Back 173

D
Answer D is correct. Answer A represents good negotiating techniques for a
project manager, in which given the scope, cost, and resources, a particular date
is determined. Answer B represents the technique of crashing, in which additional
costs are incurred to get the same work done more quickly. Answer C
represents fast tracking, in which normally sequential tasks are done in parallel,
increasing risk and rework.

Front 174

Which project scheduling technique focuses on float to determine
tasks with the least scheduling flexibility?
❑ A. CPM
❑ B. PERT
❑ C. Crashing
❑ D. Monte Carlo

Back 174

A
Answer A is correct. Critical path method is a project-scheduling technique
that focuses on float to determine tasks with the least scheduling flexibility.
Answer B is incorrect because PERT focuses on weighted average duration
estimates. Answer C is incorrect because crashing is a duration compression
technique. Answer D is incorrect because Monte Carlo is a simulation technique
that is used in duration estimations.

Front 175

The preceding diagram is an example of what type of activity
sequencing technique?
❑ A. ADM
❑ B. PDM
❑ C. CPM
❑ D. AARP

Back 175

A
Answer A is correct. Answer B is incorrect because PDM (precedence diagramming
method) puts the activities on the node. Answer C is incorrect
because the critical path method generally involves durations as well as activities
on node. Answer D is incorrect because it is the acronym for American
Association of Retired Persons.

Front 176

You are a project manager and have created a project plan with
activities, duration, resources allocated, and costs associated.
Your manager is now asking you for your project plan. You are
confused, because you’ve already sent him the plan. What is
your manager really looking for?
❑ A. A document that guides project execution and includes
assumptions, planning decisions, and alternatives chosen as
well as the timing of key management reviews
❑ B. The project charter
❑ C. A list of stakeholder skills and knowledge for guiding the
project
❑ D. Organizational policies that affect project execution

Back 176

A
Answer A is correct. Answer B is tempting, but a project charter initiates a
project and does not provide the execution guidelines (although in real life the
charter often includes these items). Answers C and D are incorrect because
they are inputs to the project plan development.

Front 177

In developing your project schedule for your home remodel,
you realize room painting will take three hours and is followed
immediately by the trim replacement, which has a predecessor
task of restaining the trim. Although this is the correct
sequence, you know the paint takes four hours to dry. To correctly
sequence these activities, you need to do which of the
following?
❑ A. Add a lag time of four hours to the painting activity.
❑ B. Add a lead time of four hours to the trim-replacement
activity.
❑ C. Remove the dependency between the two tasks, and manually
supervise them.
❑ D. Change the project to have the painting done after the trim is
replaced.

Back 177

A
Answer A is correct because the time for drying has a dependency with the
painting. Answer B is incorrect because you might have some unusual consequences
to adding lead time to the task that the drying is not associated with.
Answer C is incorrect and will lead to a bad schedule. Answer D is possible, but
not the best answer.

Front 178

You are developing a project schedule, and your manager has
asked you for the coding structure. How does the coding
structure benefit your project schedule?
❑ A. The coding structure enables you to sort activities and provide
clear reporting to the individuals on the project.
❑ B. The coding structure is aligned with the chart of accounts to
appropriately allocate the costs to the corporate accounting
system.
❑ C. The coding structure is related only to system development
projects.
❑ D. A and B.

Back 178

A
Answer A is correct. A schedule coding structure enables the users of the
schedule to sort and use it better. Answer B is tempting, but the chart of
accounts is related to the WBS, not the schedule. Answer C is incorrect
because the coding structure is not only related to system development projects.
Answer D is incorrect because it ties incorrect Answer B with correct
Answer A and is therefore also incorrect.

Front 179

John is studying for his PMP exam and is ready to take the
test. Because he is confident about his test preparation, he asks
his friend, Portia, to quiz him on several topics. Portia asks,
“What part of the planning process is staff acquisition?” John’s
response should be
❑ A. Staff acquisition is not the responsibility of the project
manager.
❑ B. Staff acquisition is a human resources knowledge area.
❑ C. Staff acquisition is a core planning process.
❑ D. Staff acquisition is a facilitating planning process.

Back 179

D
Answer D is correct. Answers A and B are true statements, but not the best
answers. Answer C is incorrect because staff acquisition is not a core planning
process.

Front 180

A WBS is a deliverables-oriented grouping of project elements
that organizes and defines the total scope of the project. How
is the WBS developed?
❑ A. As a pictorial representation of the project team’s
organization
❑ B. As a scope artifact that is archived after completion
❑ C. By outside parties
❑ D. By defining project work in terms of deliverables and components

Back 180

D
Answer D is correct. Answer A is incorrect because it is a description for an
organizational chart. Answer B is true in that a WBS is a scope definition artifact,
but it is not archived. The WBS is a living document throughout a project.
Answer C is incorrect because the project team likely develops the WBS.

Front 181

Experienced project managers understand the importance of
detailed planning and how a WBS can be a good tool to provide
direction and support to the project. How does a WBS
help a project stakeholder?
❑ A. Stakeholders do not use a WBS—only the project team references
the WBS.
❑ B. Stakeholders use a WBS to enforce contractual agreements.
❑ C. The elements assist stakeholders in developing a clear vision
of the product and the overall steps to produce it.
❑ D. The WBS functions as the organizational breakdown structure
(OBS) for stakeholders.

Back 181

C
Answer C is correct. The WBS helps to focus communication and accountability
at a level of detail required to manage a project. Answer A is incorrect
because stakeholders do use a WBS. Answer B is incorrect but tempting because
a WBS does define scope. However, it is not used to enforce a contractual
agreement. Only courts can do that. Answer D is incorrect because an OBS is
an organizational breakdown structure, and is not related to project elements.

Front 182

Getting the definition of success for the project combined
with feedback and buy-in from the team members of the WBS
can assist you in determining what tasks need to be done
throughout the project. The WBS supports effective Project
Management in all but which of the following ways?
❑ A. Separating deliverables into component parts to ensure project
plan matches scope
❑ B. Assisting in determining resource needs
❑ C. Supporting resource assignments and planning
❑ D. Providing the basis for the communications plan

Back 182

D
Answer D is correct. A WBS does not provide the basis for a communications
plan; however, it does facilitate communication and provide a framework on
which to base reporting. Answers A, B, and C are all pieces of project management
that a WBS supports and are correct statements; therefore, they are
incorrect answers to this question.

Front 183

Identification of inputs and outputs to the various phases and
the WBS can assist with identifying deliverables and other
project-related work products. A WBS is an input to all but
which of the following processes?
❑ A. Resource planning
❑ B. Risk management planning
❑ C. Activity definition
❑ D. Organizational planning

Back 183

D
Answer D is correct. Answers A, B, and C are all correct statements because
they use the WBS as an input to the process and are therefore incorrect
answers to this question.

Front 184

Decomposing tasks into smaller activities can be helpful in
reducing the amount of stress associated with overwhelmingly
large milestones. What is a feature of the hierarchical nature
of the WBS?
❑ A. A WBS hierarchy prevents duplication.
❑ B. A WBS can be rolled up or collapsed to provide information
at the appropriate level for a particular audience.
❑ C. The decomposition of tasks provides a detailed planning tool.
❑ D. The depth of a WBS is restricted to three levels, which avoids
overplanning.

Back 184

B
Answer B is correct. Answer A is incorrect because the WBS hierarchy does
not prevent duplication by itself. Answer C is incorrect because a WBS is
focused on deliverables and components or work packages and not on tasks.
Answer D is incorrect because a WBS can be sized appropriately to the project
size with as many levels as necessary.

Front 185

Integrated analysis of cost, schedule, and performance can
only be accomplished when
❑ A. Proper linking between the WBS and associated cost and
schedule is made
❑ B. A performance budget baseline is created
❑ C. Goal achievement is measured
❑ D. Integration and assembly elements are included

Back 185

A
Answer A is correct. Answer B is what is created when the proper linking takes
place. Answer C is not recommended— measuring work accomplishment is
preferred by PMI. Answer D is incorrect because integration tasks only need to
be included in a WBS when several components are being brought together to
create a higher-level deliverable.

Front 186

Every project has its share of problems and challenges. All of
the following are challenges in creating a WBS except
❑ A. Defining excessive levels in a WBS
❑ B. Ensuring WBS elements are deliverable focused
❑ C. Identifying all key project deliverables
❑ D. Cost of effort to create a WBS

Back 186

D
Answer D is correct. The cost of the WBS effort creation is not a factor considered
by PMI as a challenge to create a WBS and is assumed as part of a
project. Answers A, B, and C are correct statements and are challenges to creating
a well-defined WBS. Therefore, they are incorrect answers to this question.

Front 187

At his Indonesia-based software manufacturing company,
Daniel realizes that risk management has become more important
as the company continues to evolve. He needs to begin
the process of incorporating risk management into all of his
new projects. What is the first step in using a WBS as an
effective tool for risk management?
❑ A. Determine the probability of occurrence of risks.
❑ B. Review WBS elements and segment into risk events.
❑ C. Further define high-risk areas in the WBS.
❑ D. Include contingency activities in the WBS.

Back 187

B
Answer B is correct. Answers A, C, and D are incorrect because they are done
after risk events are identified.

Front 188

Scheduling the right resources at the right place at the right
time is a project manager’s responsibility and is a critical success
factor for the project’s successful completion. What is a
key element to consider in developing a WBS when factoring
in resource planning?
❑ A. Can the quality of work be evaluated by testing?
❑ B. Are WBS elements compatible with accounting and payroll
structures?
❑ C. How will element completion be determined?
❑ D. Can individual work assignments be managed from the
reporting structure indicated by the WBS?

Back 188

D
Answer D is correct because it is a general factor to consider in periodic
reviews of the WBS. Answer A is incorrect because it is a consideration for risk
and the WBS. Answer B is incorrect because it is a general consideration with
regard to accounting and payroll structures are not considered in a WBS.
Answer C is incorrect because determination of element completion is not a
key element when developing a WBS.

Front 189

Because he is the president of a minority-owned business,
Albert has first rights to many government contracts for the
new city infrastructure projects. Albert also realizes that dealing
with political bureaucracy can be one of the constraints of
working on government-related projects. Which of the following
is a key assumption of a government design-bid-build
project?
❑ A. The WBS must be more detailed.
❑ B. Alternatives must be included in the WBS.
❑ C. Of qualified bidders, the lowest bidder performs the construction.
❑ D. Real property must always be included in the WBS.

Back 189

C
Answer C is correct because this assumption will have a major impact upon
how you approach the bidding on a government project. Limits on power and
the use of eminent domain to obtain real property are the other two key
assumptions in this example. Answer A may or may not be true, depending on
the project. Answer B is incorrect because alternatives are not included in the
WBS, regardless if it is a government project. Answer D is incorrect because
real property is not included in the WBS.

Front 190

To prepare for the PMP exam, it is important to understand
how all of the Project Management processes interact with
each other during the entire project life cycle. During this
preparation, George realizes the fundamental differences
between core processes and facilitating processes is
❑ A. Core processes need to be done in the same order on most
projects, whereas facilitating processes, although not optional,
are performed intermittently and as needed.
❑ B. Core processes are mandatory and facilitating processes are
optional.
❑ C. Core processes focus on developing the schedule, whereas
facilitating processes focus on developing the project plan.
❑ D. Core processes are measured and facilitating processes are not.

Back 190

A
Answer A is the best answer. This is the PMI-defined reason for the differences
between core and facilitating processes. Answer B is incorrect because
facilitating processes are not optional. Answer C is tempting because it is generally
true, but not the best answer. Answer D is incorrect because the quantitative
risk analysis involves measuring.

Front 191

Rod is a friend of yours and is struggling with the definitions
of quality. He believes quality is about testing. You are working
with him on developing the quality management plan for a
project on which you both are working. How would you
describe the definition of quality planning?
❑ A. Quality planning is evaluating the overall project performance
on a regular basis to provide confidence that the project will
satisfy the relevant quality standards.
❑ B. Quality planning is the totality of characteristics of an entity
that bear on its capability to satisfy stated or implied needs.
❑ C. Quality planning is the monitoring of specific project results
to determine whether they comply with relevant quality standards
and identifying ways to eliminate the causes of unsatisfactory
performance.
❑ D. Quality planning is the identification of quality standards that
are relevant to the project and determining how to satisfy
them.

Back 191

D
Answer D is the PMI definition of quality planning. Answer A is incorrect
because it is the definition of quality assurance. Answer B is incorrect because it
is the definition of quality. Answer C is incorrect because it is the definition of
quality control.

Front 192

At the Jumping Gymboree for children, Ellen, the owner, is
planning a new location. Very much an advocate of quality, she
has learned a lot from the opening of her first site and doesn’t
want to make the same mistakes again. She has had a lessonslearned
session facilitated by a professional to ensure the
organization documents the process. She is ready to start the
project and wants to make sure everything at the new site and
any other additional sites is of high quality. She believes she
should begin her quality management plan, but does not have
much information about the new site, size, or location, or really
whether the project will move forward. What should she be
doing instead?
❑ A. Focus on project initiation for the new site.
❑ B. Establish a quality policy for Jumping Gymboree.
❑ C. Obtain the local building requirements and regulations.
❑ D. Formalize the lessons learned into a procedure for the development
of new sites.

Back 192

B
Answer B is the best answer because it codifies the overall intentions of the
Jumping Gymboree organization with regard to quality. Answer A may be true,
but it is not the best answer. Answer C would be appropriate if her new site
were launched. Although Answer D is tempting, it does not provide the focus
on quality.

Front 193

Jeff is a pharmacist who provides delivery orders to nursing
homes. He is keenly interested in providing a high-quality
service: Orders received by noon will be delivered by noon the
next day. He always meets his target, and often exceeds it.
However, his competitor, Ralph, is providing more services,
such as 1-hour delivery, 24-hour delivery, and transportation
to and from doctors’ offices. His competitor is not as consistent,
but is getting more and more business. How would you
characterize the two businesses?
❑ A. Jeff provides a high-grade, high-quality service, whereas
Ralph provides a high-grade, low-quality service.
❑ B. Jeff provides a low-grade, low-quality service, whereas Ralph
provides a high-grade, high-quality service.
❑ C. Jeff provides a low-grade, high-quality service, whereas Ralph
provides a high-grade, low-quality service.
❑ D. Jeff provides a high-grade, low-quality service, whereas Ralph
provides a low-grade, high-quality service.

Back 193

C
Answer C is correct. Jeff provides fewer services or features than Ralph; therefore,
he provides a lower-grade service. However, Jeff’s service meets or exceeds
the expectations and is therefore a high-quality service, whereas Ralph’s service
is inconsistent. Ralph will not continue to get more business if his quality
remains poor; however, Jeff would be smart to consider adding a service or two.
Answers A, B, and D are incorrect because they do not accurately reflect the
facts in this explanation because Jeff’s service is low grade and high quality.

Front 194

John is trying to make a case for improving quality efforts and
planning in his company. He is aware that in the quality discipline,
it is axiomatic that benefits outweigh costs, but he is trying
to show how the costs of quality break down for his given
project within his quality management plan. What three types
of costs will he highlight?
❑ A. Quality control, rework, and external
❑ B. Prevention, appraisal, and failure
❑ C. Internal, external, and stakeholder satisfaction
❑ D. Experimental, benchmarking, and flow charting

Back 194

B
Answer B is correct. The costs of quality are the total cost of all efforts to
achieve quality, including work to conform and rework due to nonconformance.
Answer A is incorrect because, although it touches on appraisal costs
(quality control) and failure, it does not mention prevention costs. Answer C is
incorrect because internal and external costs are related to failure costs, and
stakeholder satisfaction relates to conformance costs, but appraisal costs are
missing. Answer D is incorrect because these are tools and techniques for quality
planning related to appraisal, but do not include the other items in the definition
of cost of quality.

Front 195

Carmen is developing her quality management plan for an
advertising campaign project. What items must it include for it
to properly address quality management for her project?
❑ A. It must be formal.
❑ B. It must be related to the advertising industry standards for
quality.
❑ C. It must include information on quality control, quality assurance,
and quality improvement for the project.
❑ D. It must include the advertising checklist of required steps for
federal approval as well as the resources for the project.

Back 195

C
Answer C is correct. The quality management plan must address the project
quality system, including the procedures and processes needed to implement
the process. Answer A is incorrect because a quality management plan may be
informal or formal, highly detailed or broadly framed, depending on the project.
Answer B is tempting because, ideally, the quality management plan will
address industry standards, but these are inputs to the quality planning process.
Answer D is incorrect because a checklist is another output of the quality planning
process, but not the quality plan. Federal approval is a red herring.

Front 196

You are working on a yearlong global project involving 60 different
countries. The project has a large number of stakeholders
because it is rolling out a new process for managing global
procurement. You are in the project-planning phase of this
project and working on the communication plan. What do you
need to consider before you do your stakeholder analysis?
❑ A. Understand the project organization, the number of departments
and disciplines involved, the number of locations and
individuals involved, and whether the procurement process
will need to be communicated to vendors.
❑ B. Meet with the project team to determine who would be the
most likely project communication recipients.
❑ C. Obtain global email address lists from corporate communications
that have been used on similar projects.
❑ D. Plan to communicate only with the project sponsor and corporate
location because the project is a yearlong effort; communicating
to other sites will not be necessary until the
process is delivered.

Back 196

A
Answer A is the best answer. Understanding the complexity of the audience
and the communications requirements is the first input to communications
planning. Answers B and C may take place during the stakeholder analysis, but
are not what needs to be compiled first. Answer D is often an option chosen in
projects that get into trouble. Not considering all stakeholders in communications
can lead to lack of acceptance in a project.

Front 197

Allen Prieto, a product manager for a manufacturer of vending
mechanisms for Laundromats and soda machines, is working
on a communications plan for his new debit card vending
mechanism. He is interested in communicating with the dealerships
that sell his equipment, but knows many of them have
not made the technology leap to email because the business
has traditionally been handled by paper and phone. He also
knows there will be a move by corporate to require dealers to
be Internet capable within three months. What factors should
he consider in determining his communications method?
❑ A. What other traditional mechanisms have been used for dealerships
❑ B. Immediacy of need for information because the new product
will be hot and dealers will want to know about it quickly
❑ C. The technical details that will need to be communicated
❑ D. Other stakeholders on the project; dealerships are not the
only interested party

Back 197

B
Answer B is correct. Allen has considered the availability of technology, the
expected expertise of the recipient, and the possibility that the technology will
change during the project. This is tricky because Answer A would be a logical
route to pursue, and Answer C would be a factor to consider in the communication
content, but not the method. Answer D is also tempting but not the best
answer because other stakeholders do matter, but the method can be tailored to
their needs as well.

Front 198

Reggie is developing a communications plan for his project. It
is an informal and broadly framed statement indicating communications
will be “as frequent as necessary as determined by
the project control board” within his overall project plan and a
communications matrix that provides the information on who
will get what information when and how. What is he missing?
❑ A. A statement of how data will be collected and stored and
corrections distributed
❑ B. A method for assessing information between scheduled
communications
❑ C. A method of updating and refining the communications
management plan as the project progresses
❑ D. A production schedule showing when each communication
will be produced

Back 198

A
Answer A is correct. The broadly framed statement does not mention data collection
or storage. Answer B is incorrect because the project control board will
assess information between scheduled communications. Answer C is incorrect
because the project control board would also serve the function of modifying
the plan if necessary. Answer D is incorrect because a communications matrix is
the production schedule of when each type of communication will be produced.

Front 199

Beth likes new technology, and is in the process of developing
a communications plan for her project team. She is preparing
to issue hand-held computers (PDAs) to all her project team,
even though some of her team members are technology
averse. Only parts of the team will be on call, and only during
certain parts of the project. During her stakeholder analysis,
what is Beth forgetting?
❑ A. Beth needs a communications matrix to determine when the
PDA communications should be dispatched.
❑ B. Most managers already have PDAs and she will not have to
issue them.
❑ C. Care must be taken to avoid using inappropriate technology
and delivering unnecessary information to the project team
members who will not need “instant” information.
❑ D. She will need a training plan for the team members who are
technology averse.

Back 199

C
Answer C is the best answer. Communications plans must be devised to avoid
wasting resources with inappropriate technology or unnecessary information.
Answer A addresses the unnecessary information portion of the problem, but
not the inappropriate technology issue. Although Answer B might be more and
more true in society, it is not stated in the question. Answer D would be true if
the technology choice were appropriate.

Front 200

Human resources management as it relates to Project
Management includes which of the following?
❑ A. Stakeholders, sponsors, customers, project team, and interested
parties
❑ B. Project team members and project managers
❑ C. Project team members
❑ D. Identifying, documenting, and assigning project roles and
responsibilities, and reporting relationships

Back 200

A
Answer A is correct and includes all stakeholders. Answers B and C are incorrect
because they are missing stakeholders. Answer D is incorrect because it is
the definition of organizational planning.

Front 201

Denise is a rather autocratic line manager and has recently
taken a position managing IT projects for a consulting firm.
Her project team members will generally be changing with
each new project. How would you, as an experienced project
manager, advise her with regard to her management style?
❑ A. Denise has been successful as a manager in the past; she
should continue the techniques that have been successful
for her.
❑ B. Remind her that she might want to alter her style because
project teams are generally composed of individuals temporarily
assigned to the project and new to working together.
❑ C. Remind her that she will now rarely have direct authority
over her project team members.
❑ D. Suggest she use the X theory of human resources management.

Back 201

B
Answer B is the correct answer. Answer A is incorrect because her past autocratic
techniques might not work in a temporary environment. Answer C is
probably true, but it is not the best answer. Answer D, the X theory of management,
is another term used for an authoritarian management style.

Front 202

Gina is a detail-oriented programmer in charge of a small software
development project. She is having difficulty eliciting
cooperation from her project team during the initiation phase.
She has sent a detailed list of what she feels the project should
be doing, but is not getting response from her team. How
would you counsel her?
❑ A. Gina should call a team meeting and have the team perform a
lessons-learned session on why the project is not going as
planned.
❑ B. Talk to the sponsor and get referential authority to make the
team perform the work.
❑ C. Techniques that work well in one phase of a project might not
work well in other phases. Therefore, she might need a collaborative
approach during initiation.
❑ D. All of the above.

Back 202

C
Answer C is correct. Gina’s detail orientation might not be helping to develop
buy-in from the rest of the team members. Answer A is incorrect because it is
not the best answer, although at times a lessons-learned session in an early
stage of a project can help. Answers B and D are incorrect because requesting
referent power will not likely resolve this situation. Referent power involves
borrowing of authority from a functional manager, which could actually make
the situation worse, if not utilized correctly.

Front 203

The scheduling and coordinating of scarce resources is a challenge
for a project manager, especially if the resources are
committed to other projects or activities. Inputs to human
resources planning include all of the following except
❑ A. Templates
❑ B. Project interfaces
❑ C. Staffing requirements
❑ D. Constraints

Back 203

A
Answer A is correct. Answers B, C, and D are all inputs to human resources
planning. Templates are a tool used in HR planning.

Front 204

The term interface is frequently used in a variety of situations
that are related to your project. The definition of a technical
interface, with regard to human resources management, is
which of the following?
❑ A. A method of moving data between organizational units
❑ B. Formal or informal reporting relationships between different
technical disciplines, such as design and tooling
❑ C. The actual reporting relationship between two individuals in
an organization
❑ D. Technical interfaces do not exist between human resources;
this is a systems term

Back 204

B
Answer B is correct, according to PMI’s definition of project interface inputs
into organizational planning. Answers A, C, and D are incorrect because they
are not the correct definition according to the PMBOK. This is a straightforward
memorization-type question.

Front 205

Fast Auto Supply has hired Edward Thomas, also known as
E.T. to his friends, to finish the development of a new radio
product. E.T. is reviewing the documents his predecessor has
created. He comes across a list of job skills and competencies,
and the time frame in which these would be needed. What is
E.T. reviewing?
❑ A. Resource requirements
❑ B. Staffing requirements
❑ C. Team evaluations
❑ D. A preliminary project plan

Back 205

B
Answer B is correct and is PMI’s definition of staffing requirements. Answer A
is incorrect because resource requirements may also include materials and supplies.
Answer C is incorrect because there is no evaluation material mentioned
in the question. Answer D is tempting, but the information does not include
dependencies, and is therefore not a project schedule. Further, PMI depicts the
project plan as a grouping of planning documents, not the project schedule.

Front 206

Ron is given an assignment to run a project to develop a new
ice cream flavor. He is told that he must use Rick, a chemist in
the food products department, on this project. This is an
example of what?
❑ A. Management preferences
❑ B. An expected staff-assignment constraint
❑ C. Poor management practices because the project has not been
chartered or scoped
❑ D. A collective-bargaining agreement

Back 206

B
Answer B is correct. Although Answer A is tempting, the better answer is that
it is a constraint. Answer C is incorrect because the project’s scope is clearly to
deliver a new ice cream flavor. Answer D is incorrect, although the constraint
could be a result of a labor agreement.

Front 207

It is good to have cohesiveness within a team. However, group
think is dangerous in a project environment because
❑ A. It inhibits appropriate problem solving.
❑ B. It tends to enable groups to consider unpopular alternatives.
❑ C. It allows for the use of outside expertise, undermining the
project team.
❑ D. It requires a sizeable amount of time to survey warning signals
from other groups and organizations.

Back 207

A
Answer A is correct. Group think can cause collective rationalization, and
pressures for conformity that are counterproductive to good problem solving.
Answers B, C, and D are incorrect because they are techniques for avoiding
group think.

Front 208

Providing support and enthusiasm to team members and
stakeholders is a valuable ingredient for a successful project
manager. Coaching is considered what type of human
resources technique?
❑ A. Corrective
❑ B. A role on the organizational chart
❑ C. A practice designed to facilitate managing
❑ D. A type of stakeholder analysis

Back 208

C
Answer C is correct. Coaching is an HR practice listed as a tool and technique
within organizational planning. Answer A is tempting because often coaching
does occur as a corrective action. Answer B is incorrect because coaches are
usually managers on organizational charts. Answer D is incorrect because
coaching is not related to stakeholder analysis.

Front 209

The corporate “grapevine” is considered what form of communication?
❑ A. Accurate, especially for project information
❑ B. An informal channel that might or might not have truthful
information that should be considered by a project manager
❑ C. Inappropriate
❑ D. A “real world” communications method

Back 209

B
Answer B is correct. Project managers need to be aware of the effect of the
corporate grapevine, either good or bad, because it can influence morale on a
project. Answer A is incorrect because often grapevine information is incorrect.
Answers C and D may be true, but are not the best answers.

Front 210

As the project develops through the planning phase, various
deliverables are constructed that are inputs to other parts of
the project. One of these deliverables is a responsibility assignment
matrix (RAM), which is used for what part of human
resources planning?
❑ A. Role and responsibility assignments as an output of planning
❑ B. A resource pool description
❑ C. In conjunction with large, noncollocated groups to facilitate
meeting management
❑ D. To govern certain portions of a project

Back 210

A
Answer A is correct. The responsibility assignment matrix (RAM) is used to
link role assignments closely to scope and the WBS. Answer B is incorrect
because a resource pool description is an input to schedule development.
Answers C and D are nonexistent artifacts.

Front 211

Surrounding yourself with the right people at the right time is
a form of resource leveling that will be beneficial in the long
run and might reduce variances to your budget. What is one
of the key elements of a staffing management plan?
❑ A. How staff will be released from a project when they are no
longer needed
❑ B. A resource histogram
❑ C. Details about resource skill sets
❑ D. All of the above

Back 211

A
Answer A is correct. PMI states that particular attention should be paid to how
staff are released from a project. It is also possible to improve morale by reducing
uncertainty with continual communication. Answer D is tempting because
all items are elements of a staffing management plan, but Answer A is the best
answer. Answers B and C are incorrect because they would not likely resolve
the entire situation.

Front 212

An experienced project manager once said, “Projects would
run incredibly well if people’s agendas did not get in the way.”
This statement summarizes one of the human resource challenges
that a project manager must cope with throughout the
entire project. Human resource planning produces all but
which of the following artifacts?
❑ A. Performance evaluation
❑ B. Organization chart
❑ C. A staff management plan
❑ D. RAM

Back 212

A
Answer A is correct. Performance evaluations are not an output of human
resources planning. Answers B, C, and D are outputs of the human resource
planning process and therefore incorrect answers to this question.

Front 213

You are developing a network diagram using an activity on
arrow (AOA) format. While you are formatting the drawing,
you show how the activities are linked together by using circles.
These circles are known as
❑ A. Data
❑ B. Events
❑ C. Predecessors
❑ D. Loops

Back 213

B
Answer B is correct. Whenever using the activity on arrow format, the activities
are linked by circles that are known as events. The event is used to show the finish
of activities entering into it and the start of activities that are going out of it.
Answer A is incorrect because it does not fully answer the question. Answer C is
incorrect because predecessors only describe the activities that occur before the
event. Answer D is incorrect because network loops are perpetually repeating
relationships among activities and cannot occur in a network diagram.

Front 214

Rick is working in a functionally organized company and is
attempting to staff his project. Working in this environment
can be a constraint to his resource planning. He does not have
a preassigned group, nor does he have the money to obtain
outside resources. What can Rick do?
❑ A. Use the stage gate technique to stop the project until staffing
issues are resolved.
❑ B. Negotiate with functional managers and other project managers
for staffing on his project.
❑ C. Attempt to do the project himself, and lengthen the time for
delivery.
❑ D. Consult the organizational policies for recruitment.

Back 214

B
Answer B is correct. Rick’s only real choice here is to negotiate. Answer A
could be employed, if his negotiations fail, but it is not the best answer. Answer
C is incorrect because we do not know the scope of the project, and whether it
can be done by one person. Answer D is incorrect because Rick has no authority
for outside recruitment.

Front 215

A staffing pool description provides which of the following
pieces of information?
❑ A. Employee’s past performance reviews
❑ B. Employee competencies
❑ C. Employee age
❑ D. Employee bill rate

Back 215

B
Answer B is correct. Employee competencies, previous experience, personal
interests, availability, and characteristics are all part of the staffing pool description.
Answer A is incorrect; although past performance is considered, the performance
reviews are not part of the description. Answer C is generally illegal to
include. Answer D is incorrect because billing rate is not part of the description.

Front 216

The process of interviewing and hiring personnel is a timeand
resource-consuming part of the staff acquisition process.
Therefore, many companies are outsourcing this human
resource function to other organizations so they can focus on
their core competencies instead. The outputs of staff acquisition
are which of the following?
❑ A. Assignment characteristics
❑ B. Contracts for outsourced staff
❑ C. Staff assignments and project team directory
❑ D. All of the above

Back 216

C
Answer C is correct. Answers A and B are not outputs of staff acquisition.
Answer D is incorrect because Answers A and B are not included.

Front 217

Arnie and Jeff are project managers who are having lunch and
discussing their respective projects and the risks associated
with each.
“I just don’t know what I don’t know!” says Arnie, frustrated.
“Do a SWOT,” Jeff offers.
What is Jeff talking about?
❑ A. An analysis of security, work breakdown structure (WBS),
objectives, and tactics
❑ B. A strategic waterfall opportunity template
❑ C. Jeff’s mouth was full—he meant to say “SWAG”
❑ D. An evaluation of the strengths, weaknesses, opportunities, and
threats that might affect Arnie’s project

Back 217

D
Answer D is correct. A SWOT analysis is a technique for risk identification.
Answers A, B, and C are incorrect acronyms.

Front 218

Risk identification can be defined as
❑ A. Identifying all the risks on a project
❑ B. Determining which risks might affect a project and recording
their attributes
❑ C. Identifying key risks by performing a Pareto analysis
❑ D. Knowing when to label issues as risks for mitigation purposes

Back 218

B
Answer B is correct, and the definition of risk identification from PMI.
Answer A is incorrect, but a hoped-for goal on all projects. Answer C is incorrect
because a Pareto analysis would be part of quantitative risk analysis.
Answer D is incorrect, but a good skill for a project manager to have.

Front 219

Cara is having regular team meetings on her new footwear
product. She has had the team do a first cut on its view of
what risks affect the project. What should she do next?
❑ A. Document the risks and file them in the project folder.
❑ B. Involve stakeholders in a second review and then file in the
project folder.
❑ C. Involve stakeholders in a second review and then individuals
who are not project team members for a final, unbiased
review.
❑ D. Develop risk responses.

Back 219

C
Answer C is correct. Involving stakeholders and nonproject team members is
key to developing an unbiased analysis of risk. Answer A is incorrect because it
does not iterate through another pass of evaluation. Answer B is tempting, and
often where many project managers end, but it is not the best answer. Answer
D is not done until after risk qualification and quantification are done.

Front 220

Boyd works in the pharmaceutical industry and is involved in a
new drug release to help individuals who suffer from chronic
depression. He is aware of a potential new change in the way
the FDA allows new drug products to come to market, but he
is not sure whether his product will be “grandfathered.” This
is an example of which of the following?
❑ A. An internal risk
❑ B. A technical risk
❑ C. Iterative product development
❑ D. An external risk

Back 220

D
Answer D is correct. FDA rulings and regulations are an example of an external
risk. An example of an internal risk might be lack of funding for a project. A
technical risk is the capability of producing the product with a new process.
Iterative product development is not associated with risks. Answer A is incorrect
because an internal risk would likely be generated within his own company
and not an organization such as the FDA. Answer B is incorrect because this
example does not involve a technical risk. Answer C is incorrect because iterative
product development involves the different stages that a product evolves
into over time and is not applicable to this situation.

Front 221

Surfer Joe lives and works in Los Angeles, an earthquakeprone
area, and is a manager of IT operations for a health
food distributor. He is working on developing a business continuity
site for his computer room, outside of the earthquake
zone. What type of risk is Joe trying to mitigate?
❑ A. An external risk
❑ B. An organizational risk
❑ C. Force majeure
❑ D. A Project Management risk

Back 221

C
Answer C is correct. A force majeure is an external risk, such as a flood or an
earthquake that generally requires disaster recovery rather than risk management.
Answer A is tempting because an earthquake is a type of external risk,
but it is not the best answer. Answer B is incorrect because organizational risks
involve scope time or cost. Answer D is incorrect because Project Management
risks involve poor planning.

Front 222

A golf club manufacturer is beginning a project to develop a new
club head out of a titanium alloy using an unproven high heat
and cooling method. The product will have embedded “flex
beads,” and is expected to revolutionize the industry, according
to management. As the project manager for the new product
development, which of the following concerns you most?
❑ A. Lack of prior experience in product development
❑ B. The technical risks associated with the new manufacturing
method
❑ C. Other companies getting the process developed first
❑ D. Sufficiency of the budget to cover experimentation

Back 222

B
Answer B is correct. The technical risks associated with the product development
should concern you because they are unproven. Answer A is incorrect
because the golf manufacturer has clearly developed products in the past.
Answers C and D might concern you, but they are not the best answers.

Front 223

Your company has decided to develop a Project Management
Office (PMO) specifically to address the new rapid development
methodologies available in IT. As the project manager
for the development and deployment of the methodology, you
are concerned because your boss, the CIO, has said she wants
it to be available in two months and you have no staff to help.
What type of risk is this?
❑ A. Both project and organizational
❑ B. External
❑ C. Technical
❑ D. Job

Back 223

A
Answer A is correct. The risks posed are both inadequate planning and inadequate
funding in scope, time, and resources. Answer B is incorrect because the
source of the risk is internal: the CIO. Answer C is incorrect—although the
rapid development concept is relatively new, there is no new technology in creating
a methodology. Answer D may be true, but it is not a risk category identified
by PMI.

Front 224

You are trying to gain consensus on issues associated with a
merger between your company, which produces egg rolls, and a
new startup in the egg roll business. You have sent questionnaires
to legal, marketing, and manufacturing and have compiled
the results. You are now about to send out the compilation
for a new round of feedback. What technique are you using?
❑ A. Brainstorming
❑ B. Interviewing
❑ C. Delphi
❑ D. Assumption analysis

Back 224

C
Answer C is correct. The Delphi technique is a way to reach consensus with
experts via questionnaire. Answer A is incorrect because brainstorming is generally
not done by questionnaire, but in a facilitated session. Answer B is incorrect
because a questionnaire is being used. Interviewing involves one-on-one
conversations. Answer D is incorrect because assumption analysis is not a technique
identified by PMI.

Front 225

As a project manager, you want to solicit information from
experts, but do not want a single individual to have undue
influence over the results. You are looking for the most unbiased
data possible. What technique should you use?
❑ A. Brainstorming
❑ B. Interviewing
❑ C. Delphi
❑ D. Assumption analysis

Back 225

C
Answer C is correct. The Delphi technique is useful because participation is
anonymous, and the multiple iterations generate a consensus without undue
bias. Answers A, B, and D are incorrect because they do not allow the source to
be anonymous. This anonymity will likely lead to the least-biased results.

Front 226

An Ishikawa diagram is useful for all but which of the following
processes?
❑ A. Quality control
❑ B. Risk identification
❑ C. Quality planning
❑ D. Activity sequencing

Back 226

D
Answer D is correct. Ishikawa, fishbone, or cause-and-effect diagrams are used
in all the quality processes as well as risk identification. Answers A, B, and C
are incorrect because Ishikawa is not used in quality control, quality planning,
or activity sequencing.

Front 227

There are various methods to graphically depict the logic of a
project. Which of the following diagramming techniques is
not used as a tool of risk identification?
❑ A. System process
❑ B. Fishbone
❑ C. WBS
❑ D. Influence

Back 227

D
Answer D is correct. The WBS is not a diagramming technique; however, it is
an input to risk identification. Answers A, B, and C are incorrect because system
processes diagrams, fishbone diagrams, and influence diagrams are all diagramming
techniques that can be used in risk identification and therefore are
incorrect answers to this question.

Front 228

You are driving down the highway and going above the speed
limit. Behind you, you see a state trooper car with its lights
flashing. The state trooper car is an example of what?
❑ A. Poor judgment
❑ B. A cause and effect
❑ C. A risk trigger
❑ D. A risk

Back 228

C
Answer C is correct. The state trooper lights are a risk trigger, or a warning
sign or indication that a risk is about to occur. It isn’t definite because you don’t
know yet whether the state trooper car is after you. Answers A and B may be
true to a certain extent, but are not the best answers to this question. Answer D
is incorrect because the state trooper car is not the risk.

Front 229

Jane has been working long hours on her project. Many of her
team members have been coming down with the Asian flu, and
causing project delays. As a key project team member, Jane has
now listed the Asian flu as a minor project risk, in case she gets
it. Jane, sitting alone at her desk, begins to cough and feel
chilled. What has happened?
❑ A. A risk response
❑ B. A cause and effect
❑ C. A risk trigger
❑ D. A risk

Back 229

C
Answer C is correct. Jane’s coughing and chills are a risk trigger and could be
an indicator that she might have the Asian flu. Answer A is incorrect because the
risk response is not stated in the question. Answer B is incorrect because there
has not been a cause-and-effect relationship developed in this situation. Answer
D is incorrect because she has not actually been diagnosed as having the flu.

Front 230

Risk identification, analysis of risks, and development of mitigation
strategies are vital steps in the success of a project.
Assessing the impact and likelihood of identified risks is
known as
❑ A. Risk management
❑ B. Quantitative risk analysis
❑ C. Qualitative risk analysis
❑ D. Risk assessment

Back 230

C
Answer C is correct, and the definition of qualitative risk analysis. Quantitative
risk analysis is defined as the numeric analysis of probability of each risk. Risk
management is the overall set of risk activities. Risk assessment is not a PMI
term. Answers A, B, and D are incorrect because they do not involve assessing
the impact and likelihood of identified risks.

Front 231

Because project managers spend a large percentage of their
time communicating with other team members and stakeholders,
being timid is usually not a virtue for success. Interviewing
is a technique identified by PMI that can be used in a number
of processes to gather information that might be vital to the
project. Which process does not use interviewing?
❑ A. Qualitative risk analysis
❑ B. Quantitative risk analysis
❑ C. Risk identification
❑ D. Risk management

Back 231

A
Answer A is correct. Qualitative risk analysis focuses on probability, and does
not use interviewing as a technique. Risk identification and quantitative risk
analysis do use interviewing as a technique. Answers B, C, and D are correct
reasons for interviewing and therefore are incorrect for this question.

Front 232

Weighing of risks and risk outcomes should impact the project
selection process as an organization decides what projects
should be added to its project portfolio. What factor can magnify
the importance of a particular risk?
❑ A. Time criticality of risk-related actions
❑ B. Quality of information
❑ C. Mitigation strategies
❑ D. Prioritization

Back 232

A
Answer A is correct. The time criticality of a risk-related action can increase
the importance of a risk. Answer B is incorrect because quality of information
can actually reduce risk. Answer C is incorrect because mitigation strategies do
not magnify a risk. Answer D is incorrect because prioritization is a tool that is
used in risk response development.

Front 233

Determining the validity of information and the probability of
outcomes can be a guessing game in some circumstances and
can lead to ambiguity and chaos. Data precision is an input to
assessing the impact and likelihood of an identified risk. What
does data precision provide?
❑ A. Information on the extent to which a risk is known, the data
available, and the quality of the data about the risk
❑ B. A probability rating for the risk
❑ C. The extent to which assumptions are used in evaluating risks
❑ D. The risk priority

Back 233

A
Answer A is correct. Data precision is defined as the information about a risk.
Answer B is incorrect because the probability and impact are a technique of
qualitative risk analysis. Answer C is incorrect because assumptions are another
input. Answer D is incorrect because prioritization is an output of qualitative
risk analysis.

Front 234

Aaron is developing a project plan and assessing risk. He realizes
he has a noncollocated project team, multiple functional
departments involved, and multiple IT teams programming,
using a new unproven web tool. James, on the other hand, is
working on a project that is using a single, proven technology
with one team. What is their relative project risk based on
project type?
❑ A. James has a relatively high-risk project because his team is
noncollocated.
❑ B. Aaron has a relatively low-risk project type because there are
many experts involved.
❑ C. James has a highly complex project using state-of-the-art technology,
and is therefore in a project with more uncertainty.
❑ D. Aaron has a highly complex project using state-of-the-art technology,
and is therefore in a project with more uncertainty.

Back 234

D
Answer D is correct. Aaron’s project spans multiple departments and locations
and is using an unproven technology; therefore, the project has a higher risk
profile. Answer A is incorrect because James’s team is collocated. Answer B is
incorrect because, even with experts, the complexity of his project makes it
risky. Answer C is incorrect because James is using proven technology.

Front 235

Craig needs to decide what projects should be added to the
project review board agenda for the meeting next week. He
has a list of over 20 projects that have various degrees of risk
and return on investment (ROI). Therefore, he ranks the projects
according to their probability of success and ROI. A risk
probability is defined as
❑ A. A rating of high, medium, or low
❑ B. The impact of a risk to the project
❑ C. The effect on project objectives if the risk occurs
❑ D. The likelihood that a risk will occur

Back 235

D
Answer D is correct. Answer A is incorrect because it describes the actual
qualitative ratings. Answers B and C are incorrect because they are risk consequences.

Front 236

During the planning phase of a project, you should do a risk
analysis for your project. Attributing a quantitative measurement
to risks can be a challenge because different people
might have different opinions of which attributes are the most
important. A risk impact scale that is high, medium, or low is
known as
❑ A. A probability scale
❑ B. An ordinal scale
❑ C. A cardinal scale
❑ D. Nonlinear

Back 236

B
Answer B is correct. An ordinal scale is rank-ordered values. Answer A is
incorrect because a probability scale is between 0 and 1. Answer C is incorrect
because a cardinal scale assigns values to impacts. Answer D is incorrect
because linear and nonlinear values are used in cardinal scales.

Front 237

Utilization of best practices in Project Management requires
the retainment of archives for future reference. Part of these
archives should include risk analysis–related deliverables so
they can be reviewed for future projects. Assessing risk probability
is difficult because
❑ A. Probability assessment is a mathematical process that requires
a mathematician.
❑ B. Data precision is unknown.
❑ C. At the beginning of a project, risk is higher.
❑ D. It often requires expert judgment, and is often done without
the benefit of historical information.

Back 237

D
Answer D is correct. Answer A is incorrect, and generally not true. Probability
does not require a mathematician. Answer B is incorrect because data precision
is an input to qualitative risk analysis. Answer C is true, but not the best answer
for this question.

Front 238

Data precision ranking uses all of the following except
❑ A. Extent of understanding of the risk
❑ B. Quality of the data about a risk
❑ C. A probability impact matrix
❑ D. Reliability and integrity of the data about a risk

Back 238

C
Answer C is correct. Answers A, B, and D are all items to consider when ranking
data precision. A probability impact matrix is a tool in qualitative risk
analysis, separate from data precision ranking.

Front 239

Rachel has been working on the qualitative risk analysis for
her canning machinery rebuild project. She notices that her
data precision rankings for most of her risks are very low.
What should she do?
❑ A. Revisit the rankings with the project team.
❑ B. Accept the data as it is. The rankings are intended to be a
guideline to develop risk responses.
❑ C. See whether she can gather more accurate data.
❑ D. Consult an expert.

Back 239

C
Answer C is correct. Low precision rankings mean there might be a lack of
understanding about the risk, and therefore more data is needed for useful
qualitative analysis. Answer A is incorrect because the analysis most likely
included the project team. Answer B is incorrect because the low rankings
point to a need for further information. Answer D is tempting, but also incorrect
for this question.

Front 240

Outputs of qualitative risk analysis include all of the following
except
❑ A. Overall risk ranking for the project
❑ B. Risk triggers
❑ C. List of prioritized risks
❑ D. List of risks requiring additional analysis and management
effort

Back 240

B
Answer B is correct. Answers A, C, and D are all outputs of qualitative risk
analysis. Answer B is an output of risk identification.

Front 241

The ability to research the project risks and capture them for
future reference helps to show a relationship to the success of
a project. Quantitative risk analysis and qualitative risk analysis
differ in what ways?
❑ A. Qualitative risk analysis assesses the impact and likelihood,
whereas quantitative risk analysis assesses the consequence on
specific project objectives.
❑ B. Quantitative risk analysis assesses the impact and likelihood,
whereas qualitative risk analysis assesses the consequence on
specific project objectives.
❑ C. They are essentially the same and generally done at the same
time.
❑ D. Qualitative risk analysis uses the risk management as input
whereas quantitative risk analysis does not

Back 241

A
Answer A is correct. Answer B is incorrect because it is the opposite of Answer
A. Answer C is tempting because it is often true that they are done at the same
time; however, the objectives of the two functions are different. Answer D is
not true because both processes use the risk management plan as inputs.

Front 242

There are numerous objectives of the risk analysis process that
can contribute to the development of the change control management
process. One of the objectives of quantitative risk
analysis is to
❑ A. Develop a probability of project success.
❑ B. Quantify the risk exposure of a project and determine the size
of reserves needed.
❑ C. Perform sensitivity analysis.
❑ D. Use the Monte Carlo technique.

Back 242

B
Answer B is correct. Answer A is incorrect because quantitative analysis focuses
on the probability of achieving the cost and time objectives, not necessarily
the entire project’s success. Answers C and D are tools used in quantitative risk
analysis, not objectives of the process.

Front 243

Unfortunately, risk analysis is not done regularly on many
projects at many companies. A lot of time should be spent on
risk analysis during the planning phase as a key ingredient to
the success of a project by proactively identifying and isolating
known risk occurrences. Randy is evaluating a number of risk
options and the probabilities as well as costs associated with
each option. He wants to provide the highest expected value
for his choice. What tool should he use?
❑ A. Critical path method (CPM)
❑ B. Decision tree analysis
❑ C. Sensitivity analysis
❑ D. Expert judgment

Back 243

B
Answer B is correct. A decision tree focuses on the probability and cost outcome
of a particular decision path and provides the means to analyze which
decision would provide the highest expected value. Answer A is the critical path
method and is used in scheduling, not risk analysis. Answer C is incorrect
because sensitivity analysis is used to determine what risks have the most
impact on the project. Answer D is tempting because expert judgment is used
so often in projects, but it is not the correct answer.

Front 244

Dylan has formed his new IT team and looks forward to planning
his first project. His mentor has emphasized that he
needs to develop a risk response plan to help show the IT governance
board that he is forward thinking in his project plan
development. Which of the following is not true of risk
response planning?
❑ A. It must be timely.
❑ B. It must be cost effective.
❑ C. It is decided by the project manager.
❑ D. It must be owned by a responsible person.

Back 244

C
Answer C is correct. A risk response plan must be agreed upon by all parties
involved. Answers A, B, and D are attributes of risk response planning.

Front 245

The ability to be creative and open minded about new ideas
will have a positive impact upon your risk response plan development
and can lead to other opportunities as others realize
your capabilities. Risk response planning involves which of the
following?
❑ A. Developing options and assigning individual responsibility for
risk responses
❑ B. Identifying risks requiring the most attention
❑ C. Determining whether a risk trigger has occurred
❑ D. Reducing threats to the project

Back 245

A
Answer A is correct. Answer B is incorrect because it is an objective of quantitative
risk analysis. Answer C is incorrect because it is a part of risk control and
monitoring. Answer D is tempting, but incorrect, because risk response planning
doesn’t reduce a threat; it determines actions to take to reduce a threat or
enhance an opportunity.

Front 246

You are creating your risk response plan and are deciding to
change your project plan resources to protect your project
from the impact of a key resource needing to use the Family
Leave Act. What type of risk response strategy are you using?
❑ A. Acceptance
❑ B. Mitigation
❑ C. Transference
❑ D. Avoidance

Back 246

D
Answer D is correct. By changing your project plan, you are attempting to
avoid or eliminate the risk entirely. Answers A, B, and C, use different tactics to
mitigate risk, and are therefore incorrect.

Front 247

Jessica is developing a project plan for a project with a new
technology and realizes the in-house programmers do not
have the experience to do the work, which could potentially
cause the project schedule to be delayed significantly during
their learning curve. As a consequence, Jessica has decided to
use a contracting firm with a fixed-price bid to address the
coding risk. What type of risk strategy is she using?
❑ A. Acceptance
❑ B. Mitigation
❑ C. Transference
❑ D. Avoidance

Back 247

C
Answer C is correct. By using contractors with a fixed price, she is transferring
the risk of the new technology and coding schedule performance to the contract
company. Answers A, B, and D are not this type of risk strategy.

Front 248

A1 company wants you to develop a new web front end to a
legacy system. The functionality of the entire development
involves more than 1,000 transactions. You are expected to
deliver the new system in one year. As you develop the project
plan, you realize the risk of delivering a year out might hide
problems in terms of the complexity of the project and you
decide to propose delivery of small, frequent packages of functionality
in one-month intervals. What type of risk strategy are
you using?
❑ A. Agile programming techniques
❑ B. Mitigation
❑ C. Transference
❑ D. Avoidance

Back 248

B
Answer B is correct. By taking action to reduce the probability of hidden
problems by delivering more frequently, you are mitigating the possibility of
the problems. This is not to say that some might still exist. Answer A is tempting
because agile programming is, in effect, the mitigation strategy. Answers C
and D are different risk strategies.

Front 249

Some people indicate that Project Management adds too much
paperwork and documentation to the project and does not
have a perceived value. By providing value-added deliverables
such as a risk analysis and a risk register, a project manager
allows stakeholders to have a full understanding of the issues
that could add to the timeline and/or costs of the project. A
risk register is also known as
❑ A. A risk threshold
❑ B. A risk management plan
❑ C. A list of prioritized risks
❑ D. A risk response plan

Back 249

D
Answer D is correct. Answers A, B, and C are inputs to risk response planning.

Front 250

Being prepared to respond to adverse conditions is part of
many healthcare workers’ jobs. Increasing numbers of clinical
personnel are realizing how Project Management risk response
planning can be incorporated into their operations to handle
these adverse situations. A risk response plan should include all
of the following except
❑ A. Risk owners and responsibilities
❑ B. Specific actions to implement
❑ C. Contractual agreements
❑ D. Budgets and time frames for responses

Back 250

C
Answer C is correct. Risk response plans do not include contractual agreements,
although they are an output of risk response planning. Answers A, B,
and D are all elements that should be included in the risk response plan.

Front 251

A residual risk is defined as
❑ A. A risk that arises as a direct result of a risk response
❑ B. A risk that remains as an accepted or unaddressed risk
❑ C. A risk that is not properly mitigated, and therefore remains
❑ D. A risk that must be incorporated into the project plan

Back 251

B
Answer B is correct. Answer A is incorrect, and is the definition of a secondary
risk. Answer C is tempting because of the word residual, but it is not true.
Answer D is an output of risk planning and would involve other risk response
plans.

Front 252

The process to acquire capital goods can be time consuming,
especially if numerous approvals are needed and there is a lack
of urgency from the departments involved in the purchase
order process. Determining when to obtain products and services
from outside the organization for a project should be done
during which process?
❑ A. Activity cost estimating
❑ B. Procurement planning
❑ C. Scope definition
❑ D. Activity definition

Back 252

C
Answer C is correct. Procurement planning should be done during the scope
definition effort, according to the PMBOK. Answer B is tricky because the
question defines procurement planning—but this is the process, not the timing
of when to do it. Answers A and D are not the appropriate processes during
which procurement planning should take place.

Front 253

Ray has a technical problem with his project implementing the
infrastructure needed for a voice response unit. He is considering
an outside vendor for help, and knows that because he is
late in the planning process, he will only have a limited budget
to engage help. He also knows the system he is implementing
is only supported by one firm in his city. What factors are
most likely to influence his procurement planning?
❑ A. Market conditions
❑ B. His project scope statement
❑ C. Contract type
❑ D. Other units in his organization

Back 253

A
Answer A is correct. Ray is in need of specialized services from a single firm.
Depending on who else happens to need their services, he might or might not
be able to afford them. Answer B is incorrect because it is an input to procurement
planning, but not a factor that will influence Ray’s planning. Answers C
and D are incorrect because they are tools and techniques of procurement
planning.

Front 254

Ron is running a construction firm, and working on a business
building in the downtown area. He realizes he will need an
extra dump truck to make the schedule for clearing the lot. In
general, Ron has sufficient trucking capacity, but he might be
getting more downtown work. He is considering procuring
another truck, but isn’t sure whether he should rent or buy.
How should Ron approach the issue?
❑ A. Perform a cost benefit analysis.
❑ B. Determine the indirect and direct costs of each option, and
estimate the portion allocated to the project for a purchase.
❑ C. Consider double shifts on the trucks he has.
❑ D. Contact a consultant.

Back 254

B
Answer B is correct. Ron needs to do a make-or-buy analysis, which involves
determining the lowest cost. Answer A is tempting but it is not the appropriate
tool for this issue. Answer C may be true, but it is not the best answer. Answer
D is incorrect because contacting a consultant would not provide him with any
new information he does not have.

Front 255

Josh wants to transfer risk to another entity in order to reduce
the risk for his “hole-in-one” celebrity golf tournament project.
Because this generally involves a cost, it will be necessary
for documents to be created that outline the obligations of
both parties. Which contract type moves risk to the seller
most effectively?
❑ A. Fixed price
❑ B. Cost-reimbursable
❑ C. Cost plus
❑ D. Time and material

Back 255

A
Answer A is correct. Fixed-price contracts put the burden on the seller to produce
the product or deliverable within the specified time for a specified cost.
Answer B is incorrect because the costs are recoverable by the seller, so if they
go over budget, costs are still recovered. Answer C is incorrect because cost
plus enables the seller to achieve a profit in addition to all the costs associated.
Cost plus is another form of cost reimbursable. Time and material contracts
shift the risk entirely to the purchaser. Answer D is incorrect because time and
material pricing puts the burden on the buyer because the seller does not have
an incentive to keep costs low.

Front 256

Rhonda has decided to outsource a particular deliverable on
her construction project. She has described the product and
services in detail and has included the necessary reporting
requirements. What has Rhonda prepared?
❑ A. A statement of work (SOW)
❑ B. A contract
❑ C. A procurement management plan
❑ D. A scope definition

Back 256

A
Answer A is correct. A statement of work requires sufficient detail for the
prospective seller to determine whether he can and wants to do the work
required. Answer B is incorrect because a contract involves pricing and timing
and sometimes performance incentives. Answer C is incorrect because the procurement
management plan describes how the remaining procurement processes
will be governed. Answer D is tempting because, in essence, an SOW is a
scope definition; however, this is not the best answer.

Front 257

New project managers are frequently perplexed by the proliferation
of various terms in the Project Management field. Two
areas frequently confused include procurement and solicitation.
The difference between procurement planning and solicitation
planning is
❑ A. Procurement planning develops the procurement management
plan, whereas solicitation planning develops the SOW.
❑ B. Procurement planning involves preparing the documents to
support solicitation, whereas solicitation planning identifies
which project deliverables can be best met by an outside
organization.
❑ C. Procurement planning identifies which project deliverables
can be best met by an outside organization, whereas solicitation
planning involves preparing the documents to support
solicitation.
❑ D. Procurement planning develops the evaluation criteria for
vendors, whereas solicitation planning determines the SOW.

Back 257

C
Answer C is correct. Answer A is incorrect because the SOWs are developed
in procurement planning. Answer B is incorrect because it is the opposite of
Answer C. Answer D is incorrect because evaluation criteria are an output of
solicitation planning.

Front 258

Companies spend millions of dollars annually by moving
employees from cubicle to cubicle and office to office. Ellen is
setting up a meeting to talk about her requirements to all
prospective companies hoping to provide the moving service
for her office move project. What type of meeting is Ellen
having?
❑ A. A project kickoff meeting
❑ B. An illegal one—discussion with prospective sellers before a
contract is unethical
❑ C. A prebid conference
❑ D. An advertising meeting

Back 258

C
Answer C is correct. A meeting with prospective vendors is called a bidding
conference, or a prebid conference. Answer A is incorrect because kickoff meetings
involve all stakeholders, and are associated with the project, not solicitation.
Answer B is incorrect because bidder conferences, as long as all bidders
are on equal footing, are perfectly legal and good practice. Answer D is incorrect
but tempting because it is also a tool and technique of solicitation planning.

Front 259

During procurement planning, Jeff is considering the items he
needs to outsource, and the vendors who could potentially be
involved. Why is it important for Jeff to consider potential
vendors?
❑ A. To create the qualified seller list
❑ B. In order to exercise some degree of control over contracting
decisions
❑ C. Jeff doesn’t need to consider vendors; that task is done in
solicitation planning and the actual solicitation process
❑ D. Because vendor capability is a risk to be factored into his
planning

Back 259

B
Answer B is correct. PMBOK states that considering potential vendors during
the procurement planning may help exercise influence over the contract.
Answer A is incorrect because the qualified seller list is an input to solicitation.
Answer C is incorrect but tempting because vendors are considered during
solicitation planning and solicitation. Answer D may be true, but it is not the
best answer.

Front 260

From the following table, what is the total slack for Event 1?
Duration Earliest Earliest Latest Latest
Activity Estimate (Days) Start Finish Start Finish
Event 1 20 10 30 35 55
Event 2 2 14 16 23 25
Event 3 13 27 40 79 92
Event 4 8 13 21 88 96
❑ A. 10
❑ B. 25
❑ C. 30
❑ D. 20

Back 260

B
Answer B is the correct answer. The calculation is
Latest Finish (55)–Earliest Finish (30)=Slack (25)
Therefore, Answers A, C, and D are incorrect.

Front 261

From the table in Question 71, which event has a negative
slack?
❑ A. Event 3
❑ B. Event 2
❑ C. Event 1
❑ D. None

Back 261

D
Answer D is the correct answer. None of these events has a negative slack.
The calculations are
Event 1 Latest Finish (55)–Earliest Finish (30)=Slack (25)
Event 2 Latest Finish (25)–Earliest Finish (16)=Slack (9)
Event 3 Latest Finish (92)–Earliest Finish (40)=Slack (52)
Event 4 Latest Finish (96)–Earliest Finish (21)=Slack (75)
Therefore, Answers A, B, and C are incorrect.

Front 262

From the table in Question 71, what is the total slack for the
project?
❑ A. 20
❑ B. 161
❑ C. 268
❑ D. 88

Back 262

B
Answer B is the correct answer. The calculation is
Event 1 Latest Finish (55)–Earliest Finish (30)=Slack (25)
Event 2 Latest Finish (25)–Earliest Finish (16)=Slack (9)
Event 3 Latest Finish (92)–Earliest Finish (40)=Slack (52)
Event 4 Latest Finish (96)–Earliest Finish (21)=Slack (75)
Total Slack (161)=Slack 1 (25)+Slack 2 (9)+Slack 3 (52)+Slack 4 (75)
Therefore, Answers A, C, and D are incorrect.

Front 263

Budiono is excited to be involved with his new international
project in Indonesia but is trying to determine the critical path
for his project because several of the tasks have long durations.
In doing forward pass and backward pass calculations, it is
important for him to identify and focus on paths of tasks that
have a __________ slack for the project.
❑ A. negative
❑ B. zero
❑ C. positive
❑ D. delayed

Back 263

A
Answer A is the correct answer. In addition to identifying the paths that have
potential slippage and the critical path for the project, the project manager
needs to look for paths that have negative slack. Answer B is incorrect because
zero slack is not necessarily bad unless you anticipate some events that were not
identified in the estimates and could cause delays. Answer C is incorrect
because a positive slack is advantageous to the project manager as a contingency,
who uses it for unidentified issues that arise. Answer D is incorrect
because there is no Project Management concept that would have a delayed
slack effect for the project.

Front 264

Norma has been doing Project Management for over 20 years
and has never heard of PMI. Now she is overwhelmed with all
the new terminology that she has to learn from the PMBOK
for tasks that she used to take for granted. She is surprised to
find out that the longest path of activities from the beginning
to the end of the project is called the
❑ A. Path with positive slack
❑ B. Relative difference
❑ C. Critical path
❑ D. Schedule variance

Back 264

C
Answer C is the correct answer. Answer A is incorrect because paths with zero
or negative values (not positive slack) are referred to as critical paths. Answer B
is incorrect because it is an incorrect term for this question. Answer D is incorrect
because a schedule variance is the difference between the actual schedule
and the budgeted schedule.

Front 265

While evaluating the network diagram for the town hall
expansion project, Jeff looks at the relationship between the
facility management timelines and the construction contractors.
He realizes the earliest start and the earliest finish times
for the tasks are determined by calculating _________ through
the diagram.
❑ A. forward
❑ B. backward
❑ C. progressive elaborations
❑ D. consistently

Back 265

A
Answer A is the correct answer. Earliest start and finish times are calculated by
working through the network diagram from the first task to the last task.
Answer B is incorrect because the backward pass calculation is formulated by
working from the end of the project to the beginning of it. Answer C is incorrect
because progressive elaborations are not associated with forward or backward
pass calculations. Answer D is incorrect; however, it might sound correct
because of questions on the test that use common everyday words to simplify
complex concepts.

Front 266

Sara has never seen a network diagram before, but she must explain
the concept to the shareholders at next week’s steering committee
meeting, and get their buy-in for the schedule of a software development
project that she is working on. This diagram is an example of
❑ A. Activity on arrow formatting
❑ B. Looping
❑ C. Serial processing
❑ D. Laddering

Back 266

D
Answer D is the best answer. Laddering is done to show how a subject matter
expert can complete one task and then go forward to complete the same task as
another subject matter expert begins the second task that had a dependency
upon the first task (for example, trimming and then painting rooms in a house).
Answer A is incorrect because Activity on Arrow is another type of formatting
that uses arrows to show relationships between tasks. Answer B is incorrect
because looping in a network diagram is not possible because the task would
perpetually repeat itself without being completed. Answer C is correct because
serial processing is the sequential completion of tasks throughout a network
diagram; however, it is not the best response because the diagram has multiple
sequences going on simultaneously.

Front 267

What type of formatting is it?
❑ A. Activity on arrow
❑ B. Activity in box
❑ C. Work breakdown structure
❑ D. Responsibility assignment matrix

Back 267

B
Answer B is the correct answer. This network diagram is formatted in activity
in box formatting. Answer A is incorrect because AOA is activity on arrow,
which is a different type of formatting. Answer C is incorrect because a work
breakdown structure is not a network logic type of formatting. Answer D is
incorrect because a Responsibility Assignment Matrix (RAM) is a reporting
deliverable that is not associated with type of network diagram.

Front 268

With the development of a new space shuttle landing protocol,
you need to make some decisions about the duration estimates
that you are to provide at the kickoff meeting with the heads of
the aerospace division. By following a beta probability distribution
with three estimates and utilizing a network diagram, calculate
the expected duration with the following probabilities:
T (Optimistic) = 7 days
T (Most Likely) = 10 days
T (Pessimistic) = 22 days
❑ A. 7 days
❑ B. 17 days
❑ C. 12 days
❑ D. 32 days

Back 268

C
Answer C is the correct answer. The calculation is
T (Duration Estimate)=Estimate (Optimistic)+4 (Most Likely)+ Estimate
(Pessimistic)''6
Therefore, (7+4[10]+22)''6= 11.5 rounded to 12
Therefore Answers A, B, and D are incorrect.

Front 269

You are a PM for MN Travel Show. You are heading up a Project to promote a new line of souvenirs to be sold at the shows. You need to gather the inputs to write the scope statement. You gather which of the following:
A. Project charter, product description, assumptions and constraints
B. Project charter, product analysis and cost benefit analysis
C. Product description, product analysis and project charter
D. Product description, assumptions, constraints and product analysis

Back 269

c

Hint 269

None

Front 270

Which of the following is true regarding the scope statement?
A. It describes how to make changes to project scope
B. It describes project deliverables and serves as a baseline for future project decisions
C. It assesses the stability of the project scope and is a baseline for future project decisions
D. It assesses the reliability of the project scope and describes the frequency of changes and their impacts

Back 270

b

Hint 270

None

Front 271

You have just completed and obtained signoff on the scope statement for one of your new projects. A Key stakeholder has informed you that a deliverable is missing from the scope statement. This deliverable is a critical success factor. You should do which of the following:
A. Inform the stakeholder that work not stated in the scope statement is excluded from the project
B. Modify the scope statement to reflect the new deliverable
C. Inform the stakeholder that this deliverable can be included in the next project since signoff has already been obtained
D. Modify the scope statement after an approved change request has been received from the stakeholder

Back 271

d

Hint 271

None

Front 272

Because the project execution phase requires the most time
and resources of any phase of a project, there is a heavy
emphasis on these processes in regard to the management of a
project. The Project Management executing processes include
all of the following except
❑ A. Source selection and team development
❑ B. Project plan execution and solicitation
❑ C. Quality assurance and contract administration
❑ D. Information distribution and staff acquisition

Back 272

D
Answer D is correct because staff acquisition is not part of the Project
Management executing processes. Staff acquisition is one of the Project
Management planning facilitating processes. Answers A, B, and C are incorrect
because all of these processes are included in the Project Management executing
processes.

Front 273

Margie is working on a project for a new military facility on
the East Coast but she does not have a firm understanding of
the milestones and timelines for the project. According to the
PMBOK, an approved, formal document that is used to manage
the execution of a project is known as
❑ A. A project plan
❑ B. A project notebook
❑ C. A scope document
❑ D. An organizational policy

Back 273

A
Answer A is correct. Answer B is incorrect because the project notebook is a
repository for the documents associated with the project and notes used to execute
the project. Answer C is incorrect because the scope document is not used
to execute the project and it is developed before the executing phase of the
project. Answer D is incorrect because a company’s organizational policy is not
used to execute the project.

Front 274

Government regulations, organizational policies, and company
guidelines are constraints that a project manager must be
aware of whenever she is executing a project plan. Because
these limitations can affect the options for the project and the
responses to situations, some risk migration might be necessary.
Inputs to the project plan execution to migrate these risks
include
❑ A. Budgets
❑ B. Preventative actions
❑ C. Training plans
❑ D. Skills analysis reports

Back 274

B
Answer B is correct. Answer A is incorrect because budgets are not inputs into
the project plan; however, they should be considered during the planning phase
of a project. Answers C and D are incorrect because training plans and skills
analysis are not inputs into the project plan execution process.

Front 275

Marilyn is a senior project manager who is working on a project
that has a duration of three years and is developed in three
phases. During the project, she uses some project execution
tools and techniques while intertwining skills that are routinely
used for various types of management, such as leadership
and communication. These execution tools and techniques are
types of skills that are commonly referred to as
❑ A. Supervisory skills
❑ B. Organizational skills
❑ C. General management skills
❑ D. Expert power skills

Back 275

C
Answer C is correct because general management skills are one of the six tools
and techniques that are utilized during the execution phase of a project.
Answers A, B, and D are incorrect because they are not execution tools and
techniques for a project.

Front 276

Greg realizes that he must do a lot of communicating in order
for his project for the new elementary school system to be successful
and to keep everyone informed as the project proceeds.
The interactive processes that occur during the evolution of a
project are known as
❑ A. PMIS
❑ B. WBS
❑ C. EV
❑ D. BAC

Back 276

A
Answer A is correct. A Project Management Information System (PMIS) is
comprised of techniques and tools that are utilized to gather, integrate, and distribute
the outputs of the project processes. Answer B is incorrect because a
work breakdown structure (WBS) is used for the decomposition of tasks into
work packets and not the distribution of outputs. Answer C is incorrect because
earned value management (EVM) is a technique that is used to measure and
report project performance throughout the entire project life cycle and is an
input into the PMIS distribution process. Answer D is incorrect because the
budget at completion (BAC) is a financial tool that is also an input into the
information system.

Front 277

Proactive planning will directly affect the execution of a project
in numerous ways. Therefore, many project managers
appreciate the opportunity to be involved with a project from
the initiation of the project. One of the inputs to the project
plan execution includes anything that is done to bring the
project back in-line. This input completes the feedback loop
and is known as a
❑ A. Change control
❑ B. Communication plan
❑ C. Status report
❑ D. Corrective action

Back 277

D
Answer D is the best answer. Answer A is incorrect—although a change
control management system can be used to manage a project and get it back inline,
it is not an input into the project execution processes. Answer B is incorrect
because the communication plan is a tool that is the output of the planning
phase of a project. Answer C is incorrect because the status reports are communication
deliverables and do not directly affect the ability to bring the project
back in-line. The status report advises the team about the steps to bring the
project in-line and updates the stakeholders about the progress, action items,
and timeline.

Front 278

John is hard at work on a $5 million telecommunications project
that utilizes interactive voice response units to automate
several processes that are currently being done by humans. His
extensive project plan can be described as all of the following
except
❑ A. A method to identify milestones
❑ B. A document or collection of documents that change over time
❑ C. Formal and approved
❑ D. Only used by the project manager to execute the project

Back 278

D
Answer D is correct. Project plans are used by the entire project team and help
to communicate the tasks needed during the project time frame. Project plans
are distributed to the project staff according to the communication plan.
Consequently, a project plan is formal and approved. Answers A, B, and C are
true statements and therefore incorrect answers.

Front 279

Ken is brought in as a consultant to work on a project execution
that is having scope problems and unrealistic stakeholder
expectations. Which of the following statements is not true
about the project execution?
❑ A. The project performance will be measured against the project
plan.
❑ B. The majority of the budget is spent.
❑ C. Decisions on when and with whom to communicate are made.
❑ D. The product of the project is actually produced.

Back 279

C
Answer C is correct. Although some ad hoc communications and information
requests are handled during the project execution, decisions on when, how, and
with whom to communicate are defined in the planning phase of a communication
plan. Answers A, B, and D are true statements and therefore incorrect answers.

Front 280

Sadie is leading a market research project that is being conducted
through an educational grant from an international
think tank. Her project’s purpose is to define the buying habits
of the typical consumer of various demographics and geographic
locations. Therefore, she wants to use different types
of root cause analysis techniques that may include all of the
following except
❑ A. Excel spreadsheets
❑ B. Process flow diagrams
❑ C. Fishbone
❑ D. Ishikawa

Back 280

A
Answer A is correct. Flowcharts, fishbone, and Ishikawa diagrams are all examples
of root cause analysis techniques that might be effective when trying to
determine why an event occurred and how it can be mitigated in the future.
Because all of these techniques are applicable to this situation, Answer A is correct
because Microsoft Excel spreadsheets would not likely be used as a root
cause analysis tool but the other answers could be used for the analysis.
Answers B, C, and D are correct answers and therefore incorrect responses to
this question.

Front 281

You have been faced with corporate bureaucracy ever since
you started your project earlier this year. Guidelines and rules
of a company or organization can cause bottlenecks for timelines
and require escalation to the appropriate levels of an
organization. It is your responsibility as the project manager to
be aware of which project execution tools and techniques can
positively impact your project. Which of the following is a
project execution tool that you can use?
❑ A. Corporate hierarchies
❑ B. Organizational procedures
❑ C. Product skill and knowledge
❑ D. Project review board

Back 281

B
Answer B is the best answer. Organizational procedures and product
skill/knowledge are the only two project execution tools and techniques that
are listed. Therefore, Answers A and D are incorrect. Answer C is incorrect
because product skill and knowledge involves how well you know your product
and would not likely have an impact upon your ability to move through an
organization quicker. Organizational procedures is the correct answer because a
project manager should be aware and anticipate responses to organizational
procedures because they are seen as constraints for the project and should be
identified earlier in the project.

Front 282

A project plan is a constant source of information for the
project manager and is used for systems integration. This integration
plays a vital part in the performance attributes of a
project. Which of the following statements does not describe
an objective of systems integration?
❑ A. Performance
❑ B. Effectiveness
❑ C. Cost
❑ D. Autonomy

Back 282

D
Answer D is correct. Autonomy is not one of the objectives of systems integration.
Consequently, Answers A, B, and C are correct and therefore incorrect for
this question. Answer A is incorrect because performance is what the system
does. Answer B is incorrect because this objective is linked with the achievement
of the desired performance in an optimal manner.

Front 283

The project plan must contain certain elements that are vital
to the project. These include all of the following except
❑ A. Potential problems and contractual aspects
❑ B. Personnel information and schedules
❑ C. Evaluation methods and general approach
❑ D. Schedules and forward pass calculations

Back 283

D
Answer D is correct. Forward pass calculations are generally not required parts
of the project plan; however, they are valuable to the project manager as he
develops the estimates for various tasks. Answers A, B, and C are elements that
should be part of the project plan. A good project plan is more than just a
Gantt chart and Microsoft spreadsheet.

Front 284

Linear responsibility charts can be used for all of the following
except
❑ A. Keeping track of who must approve what items
❑ B. Critical interfaces
❑ C. Project timelines
❑ D. Determining who is responsible for what task

Back 284

C
Answer C is correct because project timelines are not associated with linear
responsibility charts (also known as a responsibility assignment matrix).
Answers A, B, and D are correct because they can be used for these purposes.
Therefore, they are incorrect answers to this question.

Front 285

This project execution tool is usually triggered by a written or
verbal approval to begin the activities and encourages control
of the work processes. It is known as the
❑ A. Work authorization system
❑ B. Change control system
❑ C. Communication plan
❑ D. Project Management information system

Back 285

A
Answer A is correct. The work authorization system (WAS) is the mechanism
that triggers the work to be done and is a catalyst for pushing the project forward.
Answers B, C, and D are incorrect because they are not triggers for the
project processes to go forward.

Front 286

You feel that you need to micromanage certain parts of the
project, but you do not want to alienate your team. How often
should a project plan be monitored?
❑ A. Weekly
❑ B. Monthly
❑ C. At the end of the project
❑ D. Continuously

Back 286

D
Answer D is correct. Answers A and B are incorrect because, although some
projects might have tasks that can be monitored monthly or weekly and depend
on the project itself, the best answer per the PMBOK is continuously, so that a
project manager can ensure budget adherence and timeliness of the project.
Answer C is incorrect because a project plan is a “living” document and as such
is modified often to reflect change within the project.

Front 287

You have a laundry list of tasks and you are overwhelmed by
the ambiguous details due to the large number of deliverables
that are required in the next two weeks. Following up to make
sure that everything is done correctly and fulfills the requirements
of the project is known as
❑ A. Quality measurement
❑ B. Quality assurance
❑ C. Variance monitoring
❑ D. Triple constraints

Back 287

B
Answer B is correct. Answer A is incorrect because quality measurement is a
method of monitoring quality without the follow-through that is associated
with quality assurance. Answer C is incorrect because the monitoring of variances
is not a specific answer that provides actions to fulfill the requirements.
Answer D is incorrect because the triple constraints (scope, time, and budget)
are attributes that are associated with the project and are not actions involved
with making sure that everything is done.

Front 288

Events such as project schedule alterations and scope creep
can impact the work results and activities related to the project
and therefore require a response from the Project
Management team. This response might require an approval
for implementation. _________ generally has a direct impact
upon the work results.
❑ A. A change request
❑ B. A budget decrease
❑ C. An execution output
❑ D. A GNP increase

Back 288

A
Answer A is correct. Answer B is incorrect because a budget decrease would
have to go through the change request process to impact the project.
Otherwise, it has an indirect impact upon the work results. Answers C and D
are incorrect because any execution output or GNP increase would not have a
direct impact upon the project. They might have an indirect impact and
require a change request if they can impact the project in some way.

Front 289

There are many tools and techniques that are used throughout
a project that are affiliated with inputs and outputs of various
processes. Some of these aspects include quality planning and
quality control. The costs of nonconformance and its impact
on quality can be postponed until the end of the project if
❑ A. The team says
❑ B. You have a risk mitigation plan
❑ C. The budget has anticipated that the costs of nonconformance
increases over time
❑ D. Quality planning involves auditing the project

Back 289

C
Answer C is the best answer. The costs of nonconformance to quality standards
tends to increase over time; therefore, the project manager should adhere
to the quality conformance requirements of the project from the onset. Answer
A is incorrect because the team should not make the final decision without
determining the long-term implications while focusing on quality. Answer B is
incorrect because a risk mitigation plan would not give you the flexibility to
postpone nonconformance. Answer D is incorrect because auditing the project
is a quality control technique for the project.

Front 290

Marcie has accepted a consulting assignment with a Fortune
500 publishing company for the development of a line of children’s
books, and she wants a strong quality policy. Because
she is responsible for quality assurance during the project execution,
she wants to learn more about the subject. What is the
difference between quality planning and quality assurance?
❑ A. None. Prior to ISO 9000, they were considered the same
thing.
❑ B. Quality planning uses the tools and techniques of cost-benefit
analysis, benchmarking, flowcharting, and design of experiments
to determine how quality should be assessed. Quality
assurance does not use these.
❑ C. Quality assurance is the totality of characteristics of an entity
that bear on its capability to satisfy stated or implied needs.
Quality planning is planning those characteristics.
❑ D. Quality planning focuses on identifying which quality standards
to use, whereas quality assurance focuses on planned
and systematic activities to ensure the standards.

Back 290

D
Answer D is correct. Answer A is a true statement, but it isn’t the best answer
and is therefore incorrect. Answer B is incorrect because both quality planning
and quality assurance use the same tools and techniques. Answer C is the definition
of quality, not quality planning or quality assurance, and is therefore
incorrect for this question.

Front 291

Some of the Project Management processes have multiple
inputs and outputs. The only output to quality assurance is
❑ A. A performance variance
❑ B. A change control document
❑ C. Re-baselining the project plan
❑ D. Quality improvements

Back 291

D
Answer D is the correct answer. Quality improvement involves any actions
taken to improve the quality of the project in response to quality deficiencies or
irregularities. Answer A is incorrect because a variance in performance is not an
output to the Project Management processes. Answer B is incorrect because a
change control document is affiliated with the change control management system
and is an output of that tool. Answer C is incorrect because re–baselining
the project plan would not be tied with quality assurance except that the project
manager must calculate the time requirements that are needed for quality planning
and assurance.

Front 292

Team development involves the growth of competencies to
increase the performance of the project. This can include individuals,
stakeholders, or groups that have a vested interest in
the project. Inputs into team development include all of the
following except
❑ A. Training
❑ B. External feedback
❑ C. Project staff
❑ D. Performance reports

Back 292

A
Answer A is the correct answer. Training is a tool and technique of team
development, not an input to team development. Answers B, C, and D are all
inputs to team development along with the project plan with the staffing management
plan.

Front 293

The conflict that a team member feels whenever he has dual
reporting responsibilities between a functional manager and
the project manager is known as
❑ A. A critical success factor
❑ B. Ambiguous jurisdiction
❑ C. Conflict resolution
❑ D. Portfolio project management

Back 293

B
Answer B is the correct answer. The conflict that a team member feels when
he reports to multiple people can be frustrating because he might have confusion
as to whom he should provide support. Answer A is correct; however, it is
not the best answer for this question. Answer C is incorrect because conflict
resolution is the process that a person would go through in order to resolve
this confusion about the dual reporting aspect of the project. Answer D is
incorrect because portfolio Project Management is involved with the financial
aspects of a project and is not associated with team member conflict.

Front 294

Quality assurance tools and techniques include all of the following
except
❑ A. Benchmarking
❑ B. Design or prototype
❑ C. Cost and benefit analysis
❑ D. Flowcharting

Back 294

B
Answer B is correct. Answers A, C, and D are Project Management quality
assurance tools and techniques that are used during the execution phase of a
project. Therefore, they are incorrect answers to this question.

Front 295

Susan is constantly plagued by frustrations in her projects.
What is the best project team environment to work in?
❑ A. A team in the same room that reports directly and only to the
project manager
❑ B. A team that meets frequently face to face, but has other functional
duties
❑ C. A loosely connected group of functional experts who help
direct the project
❑ D. A team that resides offsite

Back 295

A
Answer A is correct. Co-location and a projectized environment is the best situation
for a project team. Although Answer B can work effectively, team members
with other functional duties will have conflicts of priorities. Therefore,
Answer B is incorrect. Answer C is the definition of subject matter experts;
therefore, it is incorrect. Answer D is tricky because offsite team building is
often encouraged in team literature. However, it’s not the best answer and is
therefore incorrect.

Front 296

The knowledge that the team and stakeholders gain by actually
performing the project is known as
❑ A. Team development
❑ B. Best practices
❑ C. Lessons learned
❑ D. Cumulative intellectual capacity

Back 296

C
Answer C is correct. Lessons learned are important outputs of projects and
can be used for historical data and to provide assistance for other projects.
Answer A is incorrect because team building involves the activities that develop
camaraderie in order to enhance team performance. Answer B is incorrect
because best practices are those successful activities that a team wants to repeat
in current or future projects. Answer D is incorrect because it is a fictitious
term that is not related to Project Management.

Front 297

Rob and Larry are on the same project team and do not get
along very well due to personality conflicts. Team development
is important to the success of a project because
❑ A. It forces people to get along with each other.
❑ B. It encourages people to participate with the other team
members.
❑ C. It can lead to good friendships outside of work.
❑ D. It occurs throughout the entire project.

Back 297

B
Answer B is the best answer. Team development is important because it
encourages people to participate well with others. Team development is a perpetual
activity that an effective project manager must perform in order to
develop cohesiveness within the team. Answer A is incorrect because team
development does not force people to get along with each other, but it provides
opportunities for team members to interact and potentially develop good
working relationships. Answer C is incorrect because the purpose of team
development is work related, although these relationships can lead to friendships
outside of work. Answer D is incorrect because team development does
not always extend over the duration of the project.

Front 298

Providing positive reinforcement to your team can enhance its
performance and lead to positive outcomes for the project.
Traditional reward systems do not
❑ A. Work in a functional organization
❑ B. Generally fulfill the requirements for a project
❑ C. Work in an autocratic management environment
❑ D. Encourage team member loyalty

Back 298

B
Answer B is the best answer. Reward systems do not generally work for a project
because a project manager might not report to her functional manager and
receive the positive rewards that are usually associated with employment.
Answer A is incorrect because traditional reward systems do not generally work
due to the reporting structure that is inherent within a functional organization.
Answer C is incorrect because an autocratic work environment does not typically
work well with projects and, frequently, the reward system is the only positive
reinforcement that a team member receives from an autocratic type of
manager. Answer D is correct; however, it is not the best answer to this question.

Front 299

Sam realizes that the collaborative environment is the most
productive for his team. Which of the following is a good
team-building technique?
❑ A. Involving the team in the planning process
❑ B. Having a barbeque
❑ C. Doing a lessons-learned session
❑ D. Letting individual team members operate independently

Back 299

A
Answer A is correct. Involving the team in the planning of the project helps all
members develop a better understanding of the project and helps to provide
buy-in. Having a barbeque can be a team-building technique, but it isn’t the
best one. Therefore, Answer B is incorrect. Lessons-learned sessions are typically
done at the end of phases or the end of a project. These can become
team-building events by airing difficulties, but they are intended to correct
project direction, not to build the team. Therefore, Answer C is incorrect.
Allowing individuals to operate independently is a good management technique
in general; however, without supervision or project control, it could actually
cause team problems. Therefore, Answer D is incorrect.

Front 300

Project managers generally have all of the responsibility and
none of the authority to push their projects to completion.
Therefore, they must rely upon _________ within a functional
organization to get the support of the team and other stakeholders.
❑ A. Expert power
❑ B. Coercive power
❑ C. Reward power
❑ D. Referent power

Back 300

D
Answer D is correct. “Borrowed” legitimate power that is transferred from a
formal leader to a project manager is one source of influence for a project manager
as he moves the project forward. Answer A is incorrect because expert
power is based upon a person’s knowledge or expertise. Answer B is incorrect
because coercive power is based upon intimidation or use of force to push one’s
issue or decision. Answer C is incorrect because reward power is based upon
the ability to provide or withhold rewards to or from a participant. Project
managers are generally not involved with the distribution of rewards within an
organization, although it is a good idea to provide some type of reward or reinforcement
to a team, especially upon successful completion of a project.

Front 301

You are the single point of contact (SPOC) for your projects
and are frequently overwhelmed by the quantity of information
and materials that you are required to disseminate to the
team. What is the key purpose of distributing project information?
❑ A. To create an archive of project information that can be used
by other projects
❑ B. To inform stakeholders in a timely manner of work results
❑ C. To make sure the project continues to have sponsorship
❑ D. To resolve conflicts between project members

Back 301

B
Answer B is correct. Project information is important so that stakeholders and
sponsors understand how well a project is meeting its goals. For sponsors, a
project behind schedule might call for some type of intervention. Answer A is
incorrect because, although it is important to create a project archive, it is not
the purpose of distributing the information. Answer C is incorrect because
project sponsorship should be resolved prior to project initiation. Occasionally,
a project is canceled because it no longer meets the needs of the sponsors or
company, but distributing the project information is not intended to keep sponsorship
of the project. Answer D is incorrect because conflicts need to be managed
by the project manager and resolved apart from reporting on the project.

Front 302

Valerie has begun her work as a contract services project manager
at a military facility. She is well prepared to handle a multitude
of different volatile circumstances to provide a positive
outcome. She also knows when to become a hard-nosed manager.
The utilization of force by a manager is known as
❑ A. Legitimate power
❑ B. Coercive power
❑ C. Reward power
❑ D. Referent power

Back 302

B
Answer B is the correct answer. Coercive power is based upon the ability to use force
or intimidation to push one’s issues or decisions. Answer A is incorrect because legitimate
power is power by formal authority or by functional title. Answer C is incorrect
because reward power is based on the ability to provide or withhold rewards to or
from a participant. Answer D is incorrect because referent power is borrowed, legitimate
power that is transferred from a formal leader to a project manager.

Front 303

The close proximity that a team has to each other can have a
positive impact on communication and productivity. This is an
example of
❑ A. Synergy
❑ B. Brainstorming
❑ C. Collocation
❑ D. Team building

Back 303

C
Answer C is the best answer. Collocation occurs when team members are physically
located within a close proximity of each other, which enhances communication,
focus, and emphasis on project completion. Answers A, B, and D may be correct to
some degree, but the concept of collocation is emphasized in the PMBOK.

Front 304

Team development covers many facets of a project for Marge
at XYZ Corporation. The outputs to team development are all
of the following except
❑ A. An input to quality assurance
❑ B. An input to performance appraisals
❑ C. Increased efficiency
❑ D. Lower defect rate

Back 304

A
Answer A is the correct answer. Quality assurance is not associated with team
development. Answers B, C, and D are outputs to team development. Answers
C and D are both types of performance improvements, which is an output to
team development.

Front 305

Formal management processes that utilize guidelines that promote
or reinforce desired behavior are known as
❑ A. 360-degree feedback forums
❑ B. Reward and recognition systems
❑ C. Peer evaluations
❑ D. Team celebrations

Back 305

B
Answer B is the correct answer. Managers frequently use rewards and recognition
in the workplace and understand the importance of providing positive feedback
to their teams and stakeholders. Answer A is incorrect because 360-degree
feedback is provided for employees during the evaluation process, and the output
of these sessions can lead to rewards. Answer C is incorrect because rewards
tend to have a stronger and longer lasting effect on reinforcing behavior than
peer evaluations. Answer D is incorrect because it is not the exact definition in
the PMBOK for the reward and recognition systems; however, team celebrations
are a vital tool to reward your team for its participation on the project.

Front 306

Approaching a problem straight-on in order to discuss it for a
win-win resolution is Michelle’s approach to leading projects
and working with her subordinates. This from-the-hip
approach to problem solving has been very successful in her
management development and interactions as she rises within
the organization. This conflict resolution technique is commonly
referred to as
❑ A. Buy-in
❑ B. Negotiation
❑ C. Fact finding
❑ D. Confrontation

Back 306

D
Answer D is correct. Confronting an issue is a technique that some project
managers utilize to develop the best solution to a problem or issue. Answer A is
incorrect because buy-in is more of a process of soliciting feedback and making
a decision based upon the feedback. Answer B is incorrect because negotiation
is the process that is used whenever you are trying to find a middle ground for
mutual acceptance during the decision-making process. Answer C is incorrect
because the fact finding does not generally involve a situation in which a winwin
decision would need to be made concerning an issue.

Front 307

DeVonne is familiar with temporary solutions to conflicts and
not coming to a final resolution. This is inherent within the
industry that she works in and is frequently called “putting it
in the parking lot” or “putting it on the back burner.” This
_________ technique is not recommended for a long-term
solution.
❑ A. Contingency
❑ B. Smoothing
❑ C. Procrastination
❑ D. Project execution

Back 307

B
Answer B is the correct answer. The conflict is downplayed for the time being
until it reappears at a later time. This is a lose-lose resolution technique because
the conflict does not get resolved or have closure. Answer A is incorrect; a contingency
plan is involved with the planning and execution of the project as you look
at the options that you have for your decision-making process. Answer C is correct;
however, it is not the best response to this question. Procrastination makes
your project planning and execution a challenging and awkward experience.
Answer D is incorrect because project execution is not a smoothing technique.

Front 308

Maslow’s Hierarchy is frequently discussed in college classes
throughout the world and tends to still be relevant in today’s
business settings. What is it?
❑ A. A pyramid of needs
❑ B. The hierarchy order of the British royal family
❑ C. Self-actualization
❑ D. A philosophy that is similar to Deming’s work

Back 308

A
Answer A is the correct answer. Maslow’s Hierarchy of Needs is a pyramid of
hierarchical needs, from basic physical needs to self-actualization. Answer B is
incorrect because Maslow’s Hierarchy is not associated with the royal family.
Answer C is correct as one of the steps of Maslow’s Hierarchy; however, it does
not answer this question as well as Answer A. Answer D is incorrect because
Maslow’s Hierarchy is not related to Deming’s Total Quality Management
System that he successfully brought to cultures outside of the United States.

Front 309

Fredrick Herzberg postulated a theory that people are motivated
by factors that deal with the work and the satisfaction
that people get by performing the actual functions of their
jobs. This form of job satisfaction can be valuable to a project
manager as she determines how to motivate team members
and also maximize their efficiency. What did Herzberg call
this theory?
❑ A. X Theory
❑ B. Hygiene Theory
❑ C. Y Theory
❑ D. Hawthorne Effect

Back 309

B
Answer B is the correct answer. The ability to get promoted and learn new
skills are both examples of hygiene factors that contribute to why people enjoy
their jobs and are motivated. Answers A and C are incorrect because they are
McGregor’s theories that are related to people’s work ethic and approach to
their job. Answer D is incorrect because the Hawthorne Effect is related to the
increased productivity levels of workers that is correlated to the opportunity to
provide feedback to management about working conditions.

Front 310

After physical needs and security, what is the third-level need
of Maslow’s Hierarchy?
❑ A. Social needs
❑ B. Self-esteem
❑ C. Self-actualization
❑ D. Safety

Back 310

A
Answer A is correct. This hierarchy is seen as a pyramid with the first level,
physical needs, at the base of the pyramid. Answer B is incorrect because selfesteem
is the fourth level of the pyramid. Answer C is incorrect because selfactualization
is the fifth level of the pyramid. Answer D is incorrect because it
is on the second level of the pyramid with security.

Front 311

Susan works as the director of the Project Management Office
(PMO) at an electrical supply company and she puts a premium
on a good employee medical policy for her family.
Benefits, pay, and work conditions are examples from
Herzberg’s Hygiene Factors Theory. The job satisfaction and
challenge that Susan gets from her job by actually performing
her work is known as
❑ A. A monetary expectancy
❑ B. An intrinsic reward
❑ C. A motivator
❑ D. A satisfaction trigger

Back 311

C
Answer C is correct. Motivators help provide job satisfaction, and hygiene
factors are job attributes that help prevent job dissatisfaction. The necessity to
keep your team satisfied is an important part of maintaining good productivity
levels and team development. Answer A is incorrect because it is a fake term
and not related to Project Management. Answer B is correct but not the best
response for this question. Answer D is incorrect because it is a fake term.

Front 312

Charles has an autocratic type of management style that can
sometimes offend subordinates if they do not understand his
expectations. Many times, he uses formal power as a win-lose
conflict resolution technique whenever his department does
not want to participate in company initiatives. This technique
is known as
❑ A. Confronting
❑ B. Forcing
❑ C. Coercion
❑ D. Satisfaction trigger

Back 312

B
Answer B is correct. The technique is best used when time is short or the conflict
cannot be resolved through problem-solving techniques. Answer A is
incorrect because confronting involves approaching a problem as a problemsolving
activity that is used to discuss an issue for a win-win resolution. Answer
C is incorrect because coercion is not a PMBOK-identified conflict resolution
method. Answer D is incorrect because this term is not related to this topic and
is not relevant to this question.

Front 313

Ted is up to his neck in paperwork for the new project that he
just inherited from a previous employee of the company. He
has just received requests for capital equipment and he decides
that the event will be on the critical path for his project. The
procurement process can be time consuming and laborious
when you have to coordinate with all the purchase order–
related paperwork and the individuals that process the documents.
One step of the procurement process is known as solicitation.
What is solicitation used for?
❑ A. Gathering requirements for a product purchase
❑ B. Determining what vendors to buy from
❑ C. Letting vendors know you have a need
❑ D. Negotiating pricing

Back 313

C
Answer C is correct. The solicitation process is the means by which you let
vendors know what your requirements are. They then respond with a proposal
on how they can meet your requirements. Answer A is incorrect because
requirement gathering is done in the procurement planning stage. Answer B is
incorrect because the actual determination of a vendor happens in the source
selection phase. Answer D is incorrect because price negotiation happens in the
source selection phase also.

Front 314

Joe gets up every day to work at a local office supply company
and has done the same job for over 25 years. Because he only
has 5 years to go before his retirement, he tends to lack enthusiasm
about his career or about progressing within the company.
He is motivated exclusively by the fact that he has bills
to pay and anticipates that he will be paid for the work that he
performs on a daily basis. Theorists would describe Joe’s performance
is most closely aligned with
❑ A. Expectancy Theory
❑ B. Contingency Theory
❑ C. Glass Ceiling Theory
❑ D. Achievement Theory

Back 314

A
Answer A is correct. Expectancy Theory asserts that people are motivated in their
work with the expectation of being rewarded. Answer B is incorrect because
Contingency Theory asserts that people strive to become competent and are motivated
after the competency is developed. Answer C is incorrect because the Glass Ceiling
Theory is not relevant to this question. Answer D is incorrect because Achievement
Theory asserts that people are motivated by power, affiliation, or achievement.

Front 315

As a project manager, you will encounter numerous problems
with resources that are overworked and do not seem to have
enough time to help you with any projects. Sometimes these
resources can become frustrated and use a passive-aggressive
approach to new requests. Job attributes that help prevent job
dissatisfaction are known as
❑ A. Motivators
❑ B. Expectations
❑ C. Social needs
❑ D. Hygiene factors

Back 315

D
Answer D is correct. Hygiene factors are hypothesized in Herzberg’s Hygiene
Theory, which states that an individual’s motivation is based upon motivators and
hygiene factors. Benefits, pay, and work conditions are examples of hygiene factors.
Answer A is incorrect because motivators help provide job satisfaction and
include the actual work and the satisfaction that you get from doing the work.
These include new skills, getting promotions, and facing work-related challenges.
Answer B is incorrect because expectations do not have a direct impact upon job
satisfaction unless the expectations are not fulfilled. Answer C is incorrect
because social needs are drawn from Maslow’s Hierarchy of Needs and are not
related to this question.

Front 316

Juanita realizes that she must get participation in order to gain
commitment on her project. Consequently, common sense
mandates that she utilize different management styles during
the project life cycle in order to meet the project’s objectives
and timelines. She understands that one management and
team development style emphasizes a participatory environment
and puts value on getting the team’s involvement while
soliciting feedback to enhance the performance of the team.
This management style and philosophy are most closely related
to what team development theory?
❑ A. Kerzner’s Affiliation Theory
❑ B. McGregor’s Y Theory
❑ C. Herzberg’s Motivation-Hygiene Theory
❑ D. Meredith and Mantel’s Expectancy Theory

Back 316

B
Answer B is correct. McGregor’s Y Theory asserts that resources need limited
supervision and want to positively contribute to an organization to help the project
succeed. Answer A is incorrect because Kerzner does not have an affiliation
theory. Answer C is incorrect because Motivation-Hygiene Theory is more related
to attributes that motive people in the workplace rather than the management
styles of team development. Answer D is incorrect because Meredith and Mantel
were not the originators of Expectancy Theory, nor is the Expectancy Theory
relevant to this question.

Front 317

Modern Tool, Inc. is developing a new Project Management
office based upon a five-year government contract that it just
signed with the military. Because the team members for this
new project are scattered around the world, keeping everyone
informed will be a challenge for Ronak, the newly appointed
international director of the office. The communication system
that will develop during this project to assimilate information
horizontally and vertically throughout the organization is
known as the
❑ A. Corporate hierarchy
❑ B. Sender/receiver system
❑ C. Feedback loop
❑ D. Project Management Information System (PMIS)

Back 317

D
Answer D is the best answer. The Project Management Information System (PMIS)
is a culmination of all of the communication tools and techniques that are used
throughout the project to keep people informed. Answer A is incorrect because the
corporate hierarchy is not a system that is used to communicate, although it is a tool
that can assist with the communication and escalation processes. Answer B is correct;
however, it is not the best answer for this question because the sender/receiver system
is more involved with oral communication rather than all of the verbal and written
communication for the project. Answer C is incorrect because a feedback loop is frequently
used as a communication tool to provide communication back to an individual
concerning issues or topics rather than being a communication system.

Front 318

When looking at how much money will be spent on his
nuclear reactor decommission project, Michael has allocated
$200,000 to the initiation phase; $2,000,000 to the planning
phase; $2,000,000 to the execution phase; and $300,000 to the
closing phase. If you were analyzing Michael’s budget, what
would you say?
❑ A. The budget sounds good, but you need to beware of scope
creep and how it can impact the budget.
❑ B. He needs to allocate monies for the control phase of the
project.
❑ C. He does not have enough money for a project this big.
❑ D. Regardless of how much money he spends, the execution
phase will use the most money.

Back 318

D
Answer D is the best answer. The execution phase of the project will use more
money, time, and resources than the other phases of the project. Answer A is
incorrect because the budget has not proportionately allocated money to the
execution phase in comparison to the other phases of the project. Answer B
may be correct, but it is not the best answer for this question. Answer C may be
correct; however, we do not have enough information to make that conclusion
with the limited information that we have in this question.

Front 319

Your company has decided that it wants to install a new data
center. You have contacted various contactors and facilities
personnel to conduct studies about how much the data center
expansion will cost. A contract between buyer and seller is created
at what point in the procurement process?
❑ A. During procurement planning, based on the policies and procedures
of the company
❑ B. During solicitation, when a proposal from a vendor is
received
❑ C. During contract administration, when the vendor is actually
producing the work requested
❑ D. During source selection, based on evaluation criteria, procurement
policies, and supplier history

Back 319

D
Answer D is correct. After the source selection is made, the end result is a contract
to perform the requested activities. Answer A is partially correct because the
corporate procurement policies do affect a contract, but that is not when it is created.
Answer B is incorrect because the receipt of a proposal does not make a legal
contract. Answer C is incorrect because a contract must be signed before work can
be done. However, in certain circumstances, the actual act of work being produced
can be considered a default contract. Project managers need to avoid this.

Front 320

Paula is the accountant for Honorable Corporation and is
responsible for the financial aspects of the community rehab
project that began last year. The project is in the execution
phase. She has recently noticed there is a budget variance that
is due to the vice president going to Las Vegas for the weekend
and charging it against the rehab project. What should she do?
❑ A. Bring it up at the next team meeting.
❑ B. Confront the vice president.
❑ C. Immediately advise the project manager.
❑ D. Sell her story to the local newspaper.

Back 320

C
Answer C is correct. It is essential that team members bring up problems and
issues as soon as possible and not ignore them. Problem resolution is part of our
responsibility. Answer A is incorrect because delaying the issue until the next staff
meeting could be detrimental if it is not resolved quickly. Answer B is not the best
answer because the project manager is usually the single point of contact about the
events surrounding the project, including expenses. Therefore, it is advantageous
for the project manager to be aware of the expenditures and the impact upon the
budget. The project manager can approach the vice president about the expenses.
Answer D is incorrect because selling the story to a newspaper might be presumptuous
of some problem without researching the matter further.

Front 321

The mutual consent of a legally binding agreement is frequently
part of the procurement process. This allows the
review and weighing of various attributes while soliciting bids
for various products and services. What is the purpose of contract
administration?
❑ A. To manage the interfaces among various providers
❑ B. To ensure the seller’s performance meets the contractual
requirements
❑ C. To avoid change requests
❑ D. To provide payment to the vendor

Back 321

B
Answer B is correct. Contract administration involves all the execution phase
tasks, including monitoring the project plan, performance reporting, and
quality assurance. Answer A is incorrect because, although managing the interaction
between various providers is a key element, it is not the purpose of contract
administration. Answer C is incorrect because, although change requests
are a normal part of most projects, avoiding them because of contractual concerns
is inappropriate. Change requests should be managed according to the
change control process. Answer D is incorrect because payment to the provider
is part of contract administration, not the purpose of it.

Front 322

In the reconstruction of New York City’s World Trade Center
area, there will be numerous opportunities for effective Project
Management to enhance a productive work environment. This
effective management style will enable the team to achieve the
various milestones and meet deadlines by utilizing strong
change control management techniques. As an output of the
various control processes, anything that is done to bring
expected future project performance back in-line with the
project plan is known as a
❑ A. Change request
❑ B. Stratified opportunity
❑ C. Preventive action
❑ D. Corrective action

Back 322

D
Answer D is correct. Corrective actions are those activities that are a result of
when the project is not going as planned and action needs to be taken to get the
project back on track. Answer A is incorrect because a change request is the deliverable
that triggers the corrective action. Answer B is incorrect because a stratified
opportunity would not be associated with the corrective actions or the
change control process. Answer C is incorrect because preventative actions are
the proactive events that reduce the probability of risks materializing in a project.

Front 323

Carlos has accepted a recent highway construction project that
has a tight 30-day time frame in order to get a major intersection
re-engineered and construction completed. Therefore,
people will need to be trained on language lessons and some
new modern construction techniques that will increase their
efficiency. This training, combined with additional human
resources, will also increase productivity as the crews rotate
through 24-hour shifts. From a Project Management standpoint,
this employee training would be considered a
❑ A. Capital expense
❑ B. Work result
❑ C. Scope expansion
❑ D. Cost center debit

Back 323

B
Answer B is the best answer. Work results are the outcomes of the events that
are performed to complete a project. This could include tangible work results,
such as a highway infrastructure, or intangible work results, such as employee
development and knowledge. Answer A is incorrect because training is not considered
a capital expense. Answer C could be correct, but it is not the best
response for this question. Answer D is not a correct term and is not applicable
to this question.

Front 324

A project notebook is an excellent resource to provide a
comprehensive overview of the project and provide archive
materials for the team to reference as it progresses along the
timeline. The notebook also provides an excellent repository
for the project communications. Information distribution for
the project has all of the following outputs except
❑ A. Change requests
❑ B. Status reports, deliverables, and formal documents
❑ C. Information and documents
❑ D. Presentations in formal and informal settings

Back 324

A
Answer A is the correct answer. Change requests are the outputs of the project
plan execution and therefore are not directly involved with the information distribution
process. Answers B, C, and D are outputs that are correlated with
records, reports, and presentations as the outputs of information distribution.

Front 325

As Rita develops an action plan for her project, she begins to
itemize the keys that will lead to her future success. Because
she is a PMP and is very familiar with PMI methodologies, she
realizes that quality planning tools and techniques can also be
used for quality assurance on her project. Therefore, she
would like to try the use of flowcharting, such as Ishikawa diagrams
or fishbone diagrams, for her new project. How are
these tools used in relation to quality assurance?
❑ A. They show how various factors might be linked to potential
problems.
❑ B. They are used in collaboration with a work breakdown structure
(WBS).
❑ C. They determine kill points for a project.
❑ D. They utilize network logic to provide a forward pass calculation.

Back 325

A
Answer A is the correct answer. Cause-and-effect diagrams, which are also
known as fishbone or Ishikawa diagrams, provide details about how various factors
might be correlated to potential effects or problems. Answer B is incorrect
because the diagrams are not used with a WBS. Answer C could be correct but
it is not the best response for this question because kill points are decision
points in which the justification for the continued participation of the project
might be required. Answer D is not correct because the diagrams are not
involved with network logic or forward pass calculations in order to provide
quality assurance.

Front 326

As the world evolves into a more energy-conscious environment,
engineers will need to adapt to new constraints in quality
to fulfill their end users’ requirements. When electronic
component designers want to determine what combination of
features will provide reliability and functionality, they might
use a statistical method that helps identify which factors will
influence specific variables. This utilization of “what if” scenarios
can be described as a
❑ A. Procurement plan
❑ B. Cost of quality
❑ C. Design of experiments
❑ D. System flowchart

Back 326

C
Answer C is the correct answer. The design of experiments can also be applied
to Project Management issues, such as schedule and cost trade-offs, to determine
how various levels of expertise can influence the average workloads and
costs of different skill sets. Answer A is incorrect because the procurement plan
is a deliverable that is associated with the solicitation process, not the execution
phase of the project. Answer B is incorrect because the cost of quality is the
cost of all efforts to achieve the service and/or product quality combined with
expenses resulting from nonconformance to quality standards. Answer D is
incorrect because a system flowchart shows how various elements of a system
interact with each other, such as a cause-and-effect diagram.

Front 327

Someone once said, “Projects would run incredibly well if
people did not get in the way,” as a statement to illustrate how
personal agendas and conflicts can complicate a project and
impact the timeline. Team development on a project becomes
more challenging when the functional and project managers
are both requesting a subject matter expert’s (SME’s) time and
expertise on a project. This tends to give the SME a feeling of
conflict that can be categorized as
❑ A. Ambiguous jurisdiction
❑ B. Internal conflict
❑ C. Referent power
❑ D. Autonomy

Back 327

A
Answer A is the correct answer. Ambiguous jurisdiction is the feeling that a
team member can get when he has to split his allegiance to the functional manager
and the project manager so that he can provide support to both parties.
Answer B may be correct; however, it is not the best answer to this question.
Answer C is incorrect because referent power tends to give strength to a team
member because the functional manager is providing the project manager with
loaned power that originates from the functional title. Answer D is incorrect
because autonomy is the feeling of freedom to make choices, on your own, to
fulfill the project needs.

Front 328

Jeff wants to use collocation of team members to enhance the
performance of the team and focus on the end results of the
project. A common method of collocating a team is to
❑ A. Use frequent video conferencing.
❑ B. Hold weekly status meetings.
❑ C. Develop a reward and recognition system.
❑ D. Set up a war room.

Back 328

D
Answer D is the correct answer. Collocating involves the placement of the
team members in the same physical location to enhance their performance. A
war room is a location where the team can gather and review notes, project
artifacts, and other project-related items. Answer A is incorrect because the use
of frequent videoconferencing does not allow collocation of the team and lacks
the close proximity that is needed for this technique to work effectively. Answer
B is incorrect because status meetings only provide temporary collocation of
the team members and do not have same sustained impact. Answer C is incorrect
because a reward and recognition system reinforces desired behavior and is
not related to the physical proximity of team members to each other.

Front 329

For the communications to over 100 stakeholders to be effective and
informative, Darryl decides to draft a communication management
plan for the project, have the team review it, and then get signoff for
the implementation. All of the team is responsive to the changes
that were suggested by the other stakeholders, and the final signoff
comes within days after the kickoff meeting. A communication
management plan provides all of the following details except
❑ A. Methods to gather and store information
❑ B. Production schedules for communications
❑ C. To whom and by what methods that information will flow
❑ D. Lessons learned by the team

Back 329

D
Answer D is the correct answer. Lessons learned is involved during the closeout
of a project when the team determines what knowledge and skills were
developed as a result of the project. Answers A, B, and C are correct statements
and can be part of the communication management plan. Consequently, they
are incorrect answers for this question.

Front 330

Suzanne realizes that she must be an excellent communicator in
order to successfully migrate from a systems analyst position to a
Project Management role in her career path. Communications
planning is frequently allied with organizational planning because
❑ A. They both use the same channels.
❑ B. The project’s managerial configuration will impact the project’s
communication necessities.
❑ C. Both planning activities involve executive stakeholders and
utilize similar deliverables.
❑ D. Organizational planning is an output of the communication
planning process.

Back 330

B
Answer B is the correct answer. The organization’s structure determines who
receives communications and in what format. Therefore, the organization can
set constraints upon the communication if the correct people are not kept
informed about the project status. Answer A is incorrect because there is not
enough information in this statement to come to any conclusions. Answer C is
incorrect because the planning activities for this example may or may not
involve executive stakeholders, nor will they have similar deliverables. Answer
D is incorrect because organizational planning is not an output of the communication
planning process.

Front 331

Takashi is going through the source selection process for a
new library indexing system project that is in the initiation
phase. He uses the following chart to track the vendors and
selection criteria for the various vendors:
Vendor 1 Vendor 2 Vendor 3
Criteria A No No Yes
Criteria B Yes Yes No
Criteria C No Yes No
Based upon feedback from the team, Takashi develops a
weighted selection process and the following formula to assign
weights to the various criteria:
.9a + .5b + .3c = Weighted average
Based upon these three criteria, which vendor should Takashi select?
❑ A. Vendor 1
❑ B. Vendor 2
❑ C. Vendor 3
❑ D. Look at another vendor

Back 331

C
Answer C is the correct answer. The weighted average calculation for
Vendor 3 is
.9(1) + .5(0) + .3(0) = .9
Answer A is incorrect. The weighted average calculation for Vendor 1 is
.9(0) + .5(1) + .3(0) = .5
Answer B is incorrect. The weighted average calculation for Vendor 2 is
.9(0) + .5(1) + .3(1) = .8
Answer D is incorrect because there is enough information to determine a vendor
based upon these criteria.

Front 332

Change control management is an integral part of the success
for a project. A goal of integrated change control is to make
sure that product scope changes are reflected in the project
scope definition. What is a useful tool or technique that can be
used to aid integrated change control?
❑ A. Performance reports
❑ B. Project plans
❑ C. Change requests
❑ D. Configuration management

Back 332

D
Answer D is correct. Configuration management is a tool used for integrated
change control. It is a procedure that is used to identify characteristics of an
item and control any changes, record any changes, and audit such items to
ensure that requirements are met. A performance report is an input to integrated
change control. Answers A, B, and C are incorrect because they are not
tools or techniques that are used with integrated change control.

Front 333

Sarah has been assigned to a high-profile project with several
strong personalities that want to expand the scope of her project.
She realizes that minimizing scope creep through change
control can have a positive impact upon the timeline for the
project. Which of the following is an input to integrated
change control?
❑ A. Change control system
❑ B. Performance measurement
❑ C. Performance reports
❑ D. Lessons learned

Back 333

C
Answer C is correct. Performance reports include information regarding the
performance of the project. They may also include possible project issues. A
change control system and a performance measurement are tools and techniques
used in integrated change control, whereas lessons learned are an output
of integrated change control. Answers A, B, and D are incorrect because they
are not inputs to integrated change control.

Front 334

You are a project manager and are concerned that certain project
work tasks will either be duplicated by multiple team members
or not completed at all. What type of procedure can you
put into place to ensure that this does not occur?
❑ A. Work authorization system
❑ B. Formal work sign-off system
❑ C. Control charts
❑ D. Change control board

Back 334

A
Answer A is correct. A work authorization system requires that all work be
completed at the right time and in the proper order. Such a system prevents
work from being duplicated, neglected, or completed out of sequence.
Although a formal sign-off system would aid such a concern, the proper term
of a work authorization system is the best answer. Control charts graphically
show the results of a given process over time. A change control board is a
group of stakeholders responsible for reviewing and approving change requests.
Answer B is incorrect because work sign off is generally done after the work is
completed and does not proactively control work to be done in the future.
Answer C is incorrect because control charts are graphic displays of results and
are used to monitor types of output variables. Answer D is incorrect because
the change control board is involved with changes to the scope of the project
and generally does not micromanage the resources or work to be completed.

Front 335

Indonesia Limited Corporation is in the process of implementing
a PMO and change control process within its organization.
At its first staff meeting, there is a heated discussion
about why change control should be maintained within the
PMO and numerous tools and techniques are debated. Which
of the following is not a tool and technique recommended by
the PMBOK in integrated change control?
❑ A. Change control system
❑ B. Performance measurement
❑ C. Additional planning
❑ D. Corrective action

Back 335

D
Answer D is correct. Corrective action is an output of integrated change control,
not a tool or a technique. A change control system, performance measurement,
and additional planning are all tools and techniques of integrated change
control. Answers A, B, and C are incorrect because they are tools that are used
in integrated change control and therefore are incorrect for this question.

Front 336

The work breakdown structure is an important input to which
of the following project scope management processes?
❑ A. Scope planning
❑ B. Scope definition
❑ C. Scope change control
❑ D. Initiation

Back 336

C
Answer C is correct. The work breakdown structure is utilized during the
scope management process and is an input to scope change control. It is not an
input to scope planning, scope definition, or initiation. Answers A, B, and D
are incorrect because they are not inputs to the scope management process.

Front 337

As a high-profile project manager for nuclear power projects,
Theodore has come to the realization that incorporating
project changes into the schedule throughout the project is
imperative if he is going to keep the project on schedule. By
utilizing network diagrams, he is able to track the scheduling
and execution of the various tasks throughout the process.
When performing a backward pass analysis of a project schedule,
he knows that it is important to identify and evaluate all of
the paths of activities that have
❑ A. Negative slack
❑ B. Positive slack
❑ C. No slack
❑ D. A critical success factor

Back 337

A
Answer A is the correct answer. Answer B is incorrect because a positive slack
is beneficial to the project manager and negative slack is not. Answer C is
incorrect because no slack indicates that the project will be performed within
the time constraints that are mandated by the project. Answer D is incorrect
because critical success factors are not associated with network diagrams.

Front 338

Scope change control can be time consuming because it
requires a lot of communication with resources and buy-in
from stakeholders. The PMBOK states that scope change control
deals with all of the following except
❑ A. Preventing changes from occurring
❑ B. Influencing the factors that result in scope changes to ensure
that changes are agreed upon
❑ C. Determining that a scope change has occurred
❑ D. Managing the true changes when and if they occur

Back 338

A
Answer A is correct. Answers B, C, and D are associated with scope change
control and are therefore incorrect answers to this question.

Front 339

Why is the project plan important in change control?
❑ A. The project plan documents the baseline that changes are
managed against.
❑ B. The project plan enables all required changes to be approved.
❑ C. The project plan will probably change as the project progresses.
❑ D. The project plan facilitates stakeholder communication.

Back 339

A
Answer A is correct. Proposed changes must either be rejected or approved
and therefore incorporated into a new project baseline. Answer B is incorrect
because all changes must be approved; none are automatically approved and
performed within the project. Proposed changes must be included in an updated
project baseline. Answer C is incorrect because the project plan does not
necessarily change if the project is well planned. Answer D is incorrect because,
although it is true that the project plan does facilitate communication between
stakeholders, this is not the best answer. The project plan is important to
change control because it documents the original approved schedule baseline.

Front 340

All of the following are outputs of scope change control except
❑ A. Scope changes
❑ B. Corrective action
❑ C. Adjusted baseline
❑ D. Change requests

Back 340

D
Answer D is correct. Change requests are an input to scope change control,
not an output. Scope changes, corrective action, and an adjusted baseline are all
outputs of scope change control. Answer A, B, and C are outputs to change
control and therefore are incorrect for this question.

Front 341

Risk monitoring and control involves tracking known risks,
identifying new risks, and executing risk plans. Which of the
following answers are outputs of risk monitoring and control?
❑ A. Risk response audits and risk reviews
❑ B. A risk management plan and a risk response plan
❑ C. Corrective action and a risk management plan
❑ D. Workaround plans and corrective action

Back 341

D
Answer D is correct. Workaround plans and corrective action are outputs of
risk monitoring and control, along with project change requests and a risk
database. Answer A is incorrect because risk response audits and periodic risk
reviews are tools and techniques for risk monitoring and control. Answer B is
incorrect because both a risk management plan and a risk response plan are
inputs to the risk monitoring and control process. Answer C is incorrect
because, although corrective action is an output of risk monitoring and control,
a risk management plan is an input to this process.

Front 342

Project quality control includes verifying that the results comply
with related quality standards. Both product results and
Project Management results are included in quality control.
What are some inputs to quality control?
❑ A. Work results and rework
❑ B. Work results and operational definitions
❑ C. Quality improvement and rework
❑ D. Control charts and Pareto diagrams

Back 342

B
Answer B is correct. Both work results and operational definitions are inputs
to quality control. Related work results include both process and product
results. Operational definitions outline what something is and how the quality
control process measures it. Answer A is incorrect because, although work
results are an input to quality control, rework is an output that might result
from the quality control process. Answer C is incorrect because quality
improvement and rework are both outputs of quality control. Rework might be
necessary to bring a defective item into conformance. Answer D is incorrect
because control charts and Pareto diagrams are tools that can be utilized in
quality control. Although control charts graphically display the results of a
process over time, Pareto diagrams show how many results were generated in a
specified category in order by frequency.

Front 343

Earned value analysis (EVA) is the preferred performance
reporting technique. Earned value involves calculating all of
the following values except for
❑ A. Budgeted cost of work scheduled (BCWS)
❑ B. Cost performance index (CPI)
❑ C. Planned value (PV)
❑ D. Actual cost (AC)

Back 343

B
Answer B is correct. The cost performance index is the earned value divided
by the actual cost. Although the earned value can be determined if the cost performance
index and actual cost are known, this is not the best answer; earned
value involves calculating the key values of planned value (PV, which is also
BCWS) and actual cost (AC). Answer A is incorrect because budgeted cost of
work scheduled is the same as the planned value, which is the part of the
approved cost estimate planned to be spent on a given activity in a given period.
It is therefore involved in the earned value calculation. Answer C is incorrect
because earned value includes calculating the planned value, which is the
part of the approved cost estimate planned to be spent on a given activity in a
given period. Answer D is incorrect because the calculation of actual cost is
included in earned value. Actual cost is the cost incurred on a given activity in a
given period.

Front 344

The triple constraints of Project Management are areas that
project managers should focus upon to provide more reliable
and positive outcomes on a project. Project success is based
heavily upon the control of cost, time, and scope, as well as
❑ A. The acceptance given by the customer
❑ B. The human resources of the customer
❑ C. The level at which the project was under budget
❑ D. Very few lessons learned

Back 344

A
Answer A is correct. Acceptance by the customer involves scope verification
(PMBOK section 5.4) which focuses on acceptance of the work results by the
customer (the implication is that they were completed satisfactorily) and quality
control, which is focused on the correctness of the results. Answer B is incorrect
because the resources of the project team are more important than the
human resources of the customer. Answer C is incorrect because the success of
a project is not generally judged by being under budget. Answer D is incorrect
because there is not correlation between fewer lessons learned and the success
of a project.

Front 345

The Project Management Book of Knowledge (PMBOK) is an
internationally known reference guide for project managers.
How does the PMBOK define the work breakdown structure
(WBS)?
❑ A. A formal, approved document used to guide both project execution
and project control.
❑ B. A document that obligates the seller to provide the specified
product and for the buyer to pay for it.
❑ C. A document that defines the sum of the products and services
to be provided through the project, which is utilized for making
future project decisions.
❑ D. A deliverable-oriented grouping of project elements that
organizes and defines the total work scope of the project.
Each descending level represents an increasingly detailed definition
of the project work.

Back 345

D
Answer D is correct. As stated in the PMBOK, work that is not included in
the WBS is not in the scope of the project. Answer A is incorrect because it is
the definition of a project plan. Answer B is incorrect because it is a contract.
Answer C is incorrect because it is a project scope statement.

Front 346

As you evolve as a project manager, you will have the opportunity
to interact with some very talented people. In your current
position, you are a telecommunications project manager
and the project sponsor of your Internet project has asked you
to change the scope of the project. What should you do?
❑ A. Tell him that the scope cannot be changed after the baseline
is set.
❑ B. Prepare a scope change document.
❑ C. Adapt a passive-aggressive stance and do nothing.
❑ D. Advise him about the potential impact to the timeline and
resource allocation

Back 346

D
Answer D is correct. Before the change is made, the project manager should
communicate the impact to the sponsor so that he can determine if he wants to
pursue the change. Answer A is incorrect because it might be necessary to
change the scope in order for the project to be a success. Answer B is incorrect
because a scope change document might not be necessary after the project
manager explains the impact to the timeline and resource allocation to the
sponsor. Answer D is incorrect because it is not appropriate to utilize a passiveaggressive
approach to handle scope change issues.

Front 347

Your project office has issued a Project Management methodology
that emphasizes the importance of integrated change
control. It communicates that change requests can occur in all
the following forms except
❑ A. Externally or internally initiated
❑ B. Legally mandated or optional
❑ C. Oral or written
❑ D. Formal or informal

Back 347

D
Answer D is correct. Change requests can exist in many forms; however, they
must be formal requests, as opposed to informal requests, developed within the
context of a change control system consisting of documented procedures.
Answers A, B, and C are incorrect because they are forms of change requests
and therefore incorrect answers to this question.

Front 348

You are assuming the role of project manager on an existing
project. You are in the process of examining all scope change
requests. To assess the degree to which the project scope will
change, you need to compare the requests to which project
document?
❑ A. Work breakdown structure (WBS)
❑ B. Project plan
❑ C. Contract
❑ D. Scope management plan

Back 348

A
Answer A is correct. The PMBOK defines the WBS as a deliverable-oriented
grouping of project elements that organizes and defines the total work scope of
the project. Answer B is incorrect because the project plan is not initially the
source that should be reviewed to determine an impact to the scope of the project.
Answer C is incorrect because the contract is not the first document that is
reviewed to compare scope changes. Answer D is incorrect because the scope
management plan involves the processes and steps necessary for the change and
is not used to assess how the scope will change.

Front 349

Schedule control is an important tool used to avoid schedule
delays. Time management corrective action often involves
expediting certain activities to ensure that they are completed
with the least possible delay. To plan and execute schedule
recovery, corrective action frequently requires
❑ A. Root-cause analysis
❑ B. Re-baselining the project plan
❑ C. Change requests
❑ D. Resource leveling

Back 349

A
Answer A is correct. Corrective action is anything that brings expected future
project performance inline with the project plan. It often requires root-cause
analysis to identify the cause of the problem. Schedule delivery can address the
activity causing the deviation. It can also be planned and executed for activities
delineated later in the schedule. Answer B is incorrect because corrective action
does not necessarily require re-baselining the project plan. Answer C is incorrect
because change request preparation would occur after the root cause analysis
is performed. Answer D is incorrect because resource leveling is involved
with planning and not associated with corrective actions.

Front 350

Some organizations do not allow for a timeline to be rebaselined
and others prefer that changes are reflected in a new
baseline for the project. If you must re-baseline the project
schedule, it is important that you do it carefully so that
❑ A. Resource leveling isn’t needed
❑ B. All stakeholder approvals are documented
❑ C. All management approvals are documented
❑ D. Historical data is not lost

Back 350

D
Answer D is correct. Some extreme schedule delays require re-baselining to
provide realistic data in which to measure performance. Re-baselining should
be used as a last resort, however, and should be used with care so that historical
data is not lost. Answer A is incorrect because resource leveling may be needed
due to the new baseline. Answer B is incorrect because not all stakeholders
would necessarily be involved in the approval of re-baselining the project.
Answer C is incorrect because not all management personnel would necessarily
be involved in the approval of re-baselining the project.

Front 351

Marvin is a great asset for the company and has made the transition
from being a subject matter expert to a well-rounded
project manager. In his years of training, he has come to the
opinion that a well-thought-out change control management
system should be communicated to the stakeholders at the
beginning of the project during the kickoff meeting. One benefit
of a schedule change control system is that it includes
❑ A. Which types of schedule changes are allowed
❑ B. Required approval levels for the authorization of schedule
changes
❑ C. Methods for measuring cost variations
❑ D. Methods for measuring schedule variations

Back 351

B
Answer B is correct. A schedule change control system is beneficial because it
defines procedures for changing the project schedule and includes the documentation,
tracking systems, and approval levels required for authorizing
schedule changes.

Front 352

Keeping the budget and schedule in check is a challenging
endeavor for an inexperienced project manager who is not
detail oriented. If the cost variance and the schedule variance
are the same and greater than zero, what does this mean?
❑ A. The schedule variance is the cause of the cost variance.
❑ B. The variance is not favorable to the project.
❑ C. The variance is favorable to the project.
❑ D. The cost variance is the cause of the schedule variance.

Back 352

C
Answer C is correct. A positive (greater than zero) schedule variance indicates
that the project is ahead of schedule. A positive cost variance indicates that the
project is under budget. Answer A is incorrect because the schedule variance
may not be the only reason for the cost variance. Answer B is incorrect because
the variance may not be favorable to the project. Answer D is incorrect because
the cost variance may not be the only reason for the schedule variance.

Front 353

Your Project Management Office (PMO) director tells you
that if you do not start using some form of project indicator so
that management knows what to expect from your project, you
will be fired. In an effort to give upper management an effective
indicator, you decide to focus on the complete performance
index (CPI). What is the purpose of this index?
❑ A. To predict whether the project will be over budget
❑ B. To predict all probable change requests through the remainder
of the project
❑ C. To determine the cost performance needed to complete the
remaining work within management’s financial goal for the
project
❑ D. To determine the value of all projects being performed at an
organization

Back 353

C
Answer C is correct. The CPI is equal to the value of work remaining divided
by the value of funds remaining. It is used to obtain the cost performance factor
needed to complete all remaining work according to a financial goal set by
management. Answer A is incorrect because CPI is not used to predict whether
the project will be over budget. Answer B is incorrect because CPI is not used
to predict all probable change requests. Answer D is incorrect because CPI
does not determine the value of all projects being performed in an organization.

Front 354

Your client continually asks for the project’s bottom line profit
“numbers.” Which category of profit is he really interested in?
❑ A. Operating
❑ B. Gross
❑ C. True
❑ D. Expected

Back 354

A
Answer A is correct. The bottom line profits that your client is interested in is
operating profit. Operating profit is the amount of money earned and is calculated
by subtracting direct and indirect costs from revenue. Answers B, C, and
D are incorrect because they do not consider direct and indirect costs in their
calculations.

Front 355

Which of the following is a tool in scope planning for analyzing
a design, determining its functions, and assessing how to
provide those functions cost effectively?
❑ A. Pareto diagram
❑ B. Monte Carlo analysis
❑ C. Value engineering
❑ D. Fast tracking

Back 355

C
Answer C is correct. Value engineering is a technique used in product analysis.
Answer A is incorrect because a Pareto diagram, as stated by the PMBOK, is a
histogram, ordered by frequency of occurrence that shows how many results
were generated by each identified cause. Answer B is incorrect because Monte
Carlo analysis looks at multiple project simulations to calculate a distribution of
likely results. Answer D is incorrect because fast-tracking is shortening the
project schedule by overlapping tasks.

Front 356

Resource-constrained planning can sometimes impact a budget
if a resource is not available during the time period that was
originally planned and the cost cannot be reallocated to another
section of the budget. The undistributed budget is part of
❑ A. Stakeholder reserves
❑ B. An overall program’s budget
❑ C. Another project’s budget
❑ D. Performance measurement baseline

Back 356

D
Answer D is correct. The undistributed budget is applied to project work that
has not yet been tied to WBS items at or below the lowest level of reporting.
Therefore, it is part of the performance measurement baseline and will probably
be used in the performance of project work. Answers A, B, and C are incorrect
because they are not associated with the undistributed budget for this project.

Front 357

Learning all of the inputs, outputs, tools, and techniques in
the PMBOK can seem overwhelming; however, they become
more cohesive and make more sense as you progress through
the materials. Which of the following is an input to scope
change control?
❑ A. Scope change control
❑ B. Performance reports
❑ C. Performance measurement
❑ D. Additional planning

Back 357

B
Answer B is correct. Performance reports are an input to scope change control,
as are the work breakdown structure, change requests, and the scope management
plan. Answers A, C, and D are incorrect because they are all tools and
techniques used in scope change control.

Front 358

Construction project managers generally like scope creep
because it can positively impact their bottom line and profitability
for a developed property. The change control process
involves documenting anything that was not originally agreed
to in the scope document. How can change requests impact
the scope?
❑ A. Either expansion or shrinking of the scope
❑ B. Only expansion of the scope
❑ C. Only shrinking of the scope
❑ D. It depends on the original scope of the project

Back 358

A
Answer A is correct. The PMBOK states that changes may require expanding
the scope or may allow shrinking it. Answers B, C, and D are incorrect because
they do not fully answer the question.

Front 359

Martin is trying to decide how to outsource some of his company’s
noncore business activities because he does not have the
appropriate staff to maintain the current level of operations.
He realizes that resource leveling can only occur if the
resources have flexibility in their availability. This shifting of
resources might require a change control document to be
approved by the sponsor. A change control system is concerned
with
❑ A. Preventing all changes from affecting project execution
❑ B. Influencing factors that cause change, determining a change
has occurred, and managing the implementation of a change
❑ C. Ensuring the change control board is informed
❑ D. None of the above

Back 359

B
Answer B is correct. Preventing change from affecting execution is impossible.
Change control allows for the effective execution and incorporation of a
change into the project plan. The change control board is the body that accepts
or rejects a change request. As such, it must be informed and is part of the
change control system. Answer A is incorrect because a change control system
is not used to prevent all changes to the project. Answer C is incorrect because
it is just part of the change control system.

Front 360

Many Project Management experts have speculated about the
pitfalls of large-scale, high-dollar projects and how the
burnout of valuable resources can be an inherent risk to the
project. Which phase of the project life cycle has the greatest
degree of uncertainty?
❑ A. Initiating
❑ B. Planning
❑ C. Executing
❑ D. Controlling

Back 360

A
Answer A is correct. There is a great deal of uncertainty in initiating. As a
project progresses through the different phases, the degree of uncertainty
decreases. Answers B, C, and D are incorrect because they have a lesser degree
of uncertainty than the initiation phase and therefore less risk.

Front 361

Alberta spends most of her time focusing on noncritical path
elements of her project and thinks that implementation of
some system might help get feedback from her team members.
She is doing some research on the Internet and finds the term
PMIS. What is a PMIS?
❑ A. A repository used for project information so that future projects
can learn from previous ones
❑ B. An output that is required in a project plan
❑ C. A PM certification similar to the PMP
❑ D. None of the above

Back 361

A
Answer A is correct. PMIS stands for Project Management Information
System, which is the system that is used to provide communication throughout
the project, including historical information. Answers B and C are incorrect
because they do not describe the Project Management Information System.

Front 362

The work breakdown structure provides a foundation for the
project to develop a responsibility assignment matrix and allocate
resources. Which of the following statements about a
WBS is false?
❑ A. It is a key project-planning tool.
❑ B. It is one method used to build a project schedule.
❑ C. It provides a framework for ordering a project’s tasks.
❑ D. It breaks a project into greater detail by level.

Back 362

B
Answer B is correct. A work breakdown structure is not a way to build a project
schedule. Answers A, C, and D are factual statements about the WBS.

Front 363

There are numerous ways to reduce the estimated duration of
activities in order to have a positive impact upon your timeline.
Many times, this can save money for the project. Some
ways to reduce the duration of activities include all of the following
except
❑ A. Scope reduction
❑ B. More experienced resources
❑ C. Crashing the schedule
❑ D. Re-baselining

Back 363

D
Answer D is correct. Re-baselining a project is not a way to reduce the duration
of activities. Answer A, B, and C are correct information and therefore
incorrect answers to this question.

Front 364

A change control system does not have
❑ A. Paperwork
❑ B. Referential authority
❑ C. Approval requirements
❑ D. Tracking mechanisms

Back 364

B
Answer B is correct. The PMBOK definition for a change control system says
that it must have Answers A, C, and D (paperwork, approval requirements, and
tracking mechanisms); therefore, Answer B is not part of a change control
system.

Front 365

The aftermath of the 9/11 terrorist attacks required a tremendous
cleanup work effort. During the inception of these project
plans, there was a more narrow focus, which eventually
expanded to include countless subprojects. In order to monitor
and control these subprojects, a change control management
system was required. Which of the following is a tool and
technique used in scope change control?
❑ A. Adjusted baseline
❑ B. Lessons learned
❑ C. Scope changes
❑ D. Additional planning

Back 365

D
Answer D is correct. Additional planning is a tool and technique used in scope
change control. An adjusted baseline, lessons learned, and scope changes are all
outputs of scope change control. Answers A, B, and C are incorrect because
they are not tools or techniques that are used in scope change control.

Front 366

Enrique wants to focus on only the key elements of his highway
expansion project so that he can stick to the tight timeline.
He stresses to his supervisors that any schedule changes
must immediately be reported to the shift supervisor so that
corrective measures can be taken. Schedule control requires
❑ A. Assessment of the magnitude of variation to a schedule to
determine whether corrective action is needed
❑ B. Re-baselining
❑ C. Weekly meetings to update tasks
❑ D. None of the above

Back 366

A
Answer A is correct. Re-baselining is only necessary if a major change to the
scope or timeline of the project has occurred. Weekly meetings are not a
requirement; task updates can occur through other means. Answer B does not
require re-baselining. Answer C is incorrect because weekly meetings are not
required for schedule control.

Front 367

Rework must be done when
❑ A. Complete planning has been done
❑ B. A quality control finding deems it necessary
❑ C. A project resource has not been trained
❑ D. None of the above

Back 367

B
Answer B is correct. Although Answers A and C might be correct, Answer B is
the best answer. Rework will be deemed necessary and required through the
quality control process.

Front 368

Balancing the triple constraints of scope, time, and budget is
always a challenge and some organizations indicate that you
can only realistically focus on two of the elements. Because
many of them focus on their bottom financial line, they lose
sight of other cost-cutting options that would not be detrimental
to the project. Which of the following is not an input
to cost control?
❑ A. Revised cost estimates
❑ B. Cost baseline
❑ C. Performance reports
❑ D. Cost management plan

Back 368

A
Answer A is correct. Revised cost estimates are an output of cost control. The
four inputs are cost baseline, performance reports, change requests, and a cost
management plan. Answers B, C, and D are inputs to cost control and therefore
incorrect answers for this question.

Front 369

Estimating projects can be a time-consuming activity that
requires input from various stakeholders on a project. Which
of the following is the way the PMBOK defines estimate at
completion (EAC)?
❑ A. It is the same as AC.
❑ B. It is the same as EVA.
❑ C. It is a forecast of most likely total project costs based on previous
projects’ performance.
❑ D. It is a forecast of most likely total project costs based on project
performance and risk quantification.

Back 369

D
Answer D is correct. The PMBOK defines EAC as a forecast of most likely
total project costs based on project performance and risk quantification.
Answers A, B, and C are incorrect because they do not describe the estimate at
completion.

Front 370

Identifying and learning from the outcomes in a project can
help for future projects. What types of lessons learned should
be documented?
❑ A. Positive outcomes
❑ B. Negative outcomes
❑ C. Negative and positive outcomes
❑ D. None of the above

Back 370

C
Answer C is correct. Both positive and negative lessons learned should be documented
throughout a project. Answers A and B are incorrect because they do
not capture everything that should be incorporated into lessons learned that
should be documented.

Front 371

The risk analysis process is frequently overlooked at Backward
Thinking Corporation, and Valerie is trying to convince upper
management about the potential positive implication of performing
this analysis. She explains how risk monitoring is
rarely done in her department, which impacts the timeline and
quality of her project execution. Risk monitoring and control
❑ A. Only needs to occur at the start of a project
❑ B. Only needs to occur at the end of a project
❑ C. Keeps track of identified risks, monitors residual risks, identifies
new risks, and ensures the effectiveness of risk plans at
reducing risk to the project
❑ D. All of the above

Back 371

C
Answer C is correct. Risk monitoring and control keeps track of identified
risks, monitors residual risks, identifies new risks, and ensures the effectiveness
of risk plans at reducing risk to the project. It occurs throughout the project.
Answers A and B are incorrect because risk monitoring should occur throughout
the project, not just at the start or end of a project.

Front 372

Big Clock Company is developing a new line of water motion
clocks that will be used in shopping malls and airports.
Because it has not done one of these projects before, it is
going to develop a baseline for the project so it knows what
the original timeline estimates were for each phase of the
project. It realizes that measuring anticipated and actual performance
on this project will help keep it on course. The performance
measurement baseline is the
❑ A. AC
❑ B. EV
❑ C. PV
❑ D. EVA

Back 372

C
Answer C is correct. The PV, or planned value, is the originally scheduled
project cost, or baseline. Answers A, B, and D are incorrect because they do not
describe the performance measurement baseline.

Front 373

Which of the following can be used to monitor the number of
errors that have been identified and the number that still
remain unidentified?
❑ A. Trend analysis
❑ B. Quality assurance test
❑ C. Quality audit
❑ D. Lessons learned

Back 373

A
Answer A is correct. A trend analysis is forecasting future outcomes (or in this
case, errors) based on historical results. The PMBOK strongly supports using
historical data. Answers B, C, and D are incorrect because they are not used to
monitor the number of errors.

Front 374

The ordering of defects or errors that should be used to guide
corrective action is the underlying principle of
❑ A. Lessons learned
❑ B. Pareto diagrams
❑ C. Bar charts
❑ D. Error ordering

Back 374

B
Answer B is correct. A Pareto diagram, as stated by the PMBOK, is a histogram,
ordered by frequency of occurrence that shows how many results are
generated by each identified cause. The errors that are causing the largest
number of defects should be fixed first. Answers A, C, and D are incorrect
because they do not describe the ordering of defects or errors to guide the corrective
action in the project

Front 375

Changes to the project are common in certain types of projects,
especially when they involve new technology. Project
modifications should be reflected in the
❑ A. Project plan
❑ B. Quality control document
❑ C. Lessons learned document
❑ D. Quality control audit

Back 375

A
Answer A is correct. The project plan should continually be updated to reflect
modifications to the project. Answers B, C, and D are incorrect because they
are not documents that would be used to reflect project modifications.

Front 376

Your client would like a forecast of project costs for the next
six months so that he can review the budget. Which of the following
sources of information should you consider?
❑ A. Similar project cost estimates
❑ B. Pending change requests
❑ C. Project plan
❑ D. WBS

Back 376

B
Answer B is correct. If there are pending change requests that might have a
positive or negative effect on the budget, these are important documents to
review and consider.

Front 377

Maintaining quality on a project can be a challenge when
stakeholders are demanding results within a short time frame.
When utilizing statistical quality control, it is important to
understand
❑ A. How it was used on similar projects
❑ B. Statistical sampling
❑ C. Attribute sampling
❑ D. Special causes and random causes

Back 377

D
Answer D is the best answer. Special causes are linked to unusual events,
whereas random causes are more normal process variations. It is important to
understand these terms so that unusual event causes can be identified, controlled,
and corrected. Answer A could be correct but is not the best answer.
Answer B is incorrect because statistical sampling is just part of the statistical
quality control aspect of a project. Answer C is incorrect because attribute sampling
is just one aspect of statistical quality control

Front 378

Mario works for HS Corporation and is required to monitor
and manage the budget for his new Broadway musical project.
This week, it encountered several unexpected costs due to a
hurricane in one of the cities in which the production is playing.
Because of these added costs, his budget might be in jeopardy,
and he needs to implement a cost control plan. A cost
change control system can be used to
❑ A. Define the procedures by which the cost baseline may be
altered
❑ B. Determine why a cost variance exists
❑ C. Define the budget ceiling for a project
❑ D. Determine where excess project funds should be utilized

Back 378

A
Answer A is correct. The PMBOK states that the cost change control system
includes the documentation, tracking systems, and approval levels required for
a change. Answers B, C, and D are incorrect because they do not describe the
procedures by which the cost baseline can be altered, which is an important
aspect of the cost change control system.

Front 379

NRG Enterprises is developing a new line of memoryenhancing
products that have the potential to gain a significant
market share. The owner of NRG, Ima Smart, enforces very
strict scope management policies to keep the focus of the project
on this product line. A project scope change control system
❑ A. Must be part of the project plan
❑ B. Must be part of the WBS
❑ C. Defines the procedures by which project scope may be
altered, including the paperwork, tracking systems, and
approval levels necessary for authorizing change
❑ D. All of the above

Back 379

C
Answer C is correct. This is a PMBOK definition of a project scope change
control system. Answer A is incorrect because the system is not part of the
project plan, although it may be identified in this document. Answer B is
incorrect because the scope control system is not part of the work breakdown
structure.

Front 380

Lessons learned are important to document because an organization
can use them to improve future projects and the Project
Management process. Therefore, in project closing procedures,
it is helpful to review the
❑ A. Checklists for risk identification
❑ B. WBS
❑ C. Original contract
❑ D. Vendor audits

Back 380

A
Answer A is correct. Such a checklist is a tool and technique for risk identification
as described in the PMBOK. It can be formulated by using lessons learned
from previous projects and other historical information. Answer B is incorrect
because the work breakdown structure is more important at the beginning of
the project, rather than the end of the project. Answers C and D are incorrect
because the original contract and vendor audits are generally not associated
with lessons learned.

Front 381

Risk management should be incorporated into every project in
order to absorb, minimize, or eliminate events that could
impact your budget and timeline. As stated in the PMBOK,
the purpose of risk monitoring is to determine whether
❑ A. Risk responses have been implemented as planned
❑ B. Project assumptions are still valid
❑ C. A risk trigger has occurred
❑ D. All of the above

Back 381

D
Answer D is correct. The PMBOK states that the purpose of risk monitoring
is to determine whether risk responses have been implemented as planned,
project assumptions are still valid, and a risk trigger has occurred.

Front 382

Because projects tend to be the most risky at the beginning of
the project life cycle, risk analysis can help a project manager
acknowledge that no project is without a certain amount of
risk. Which of the following is an input to risk monitoring and
control?
❑ A. Risk management plan
❑ B. Risk response plan
❑ C. Project communication
❑ D. All of the above

Back 382

D
Answer D is correct. Answers A, B, and C are all inputs to risk monitoring and
control. The other inputs are scope changes and additional risk identification
and analysis.

Front 383

Periodic project risk reviews are considered to be
❑ A. An output of risk monitoring and control
❑ B. A tool and technique for risk monitoring and control
❑ C. An input to risk monitoring and control
❑ D. Not necessary

Back 383

B
Answer B is correct. Periodic project risk reviews are a tool and technique for
risk monitoring and control. The others that are defined in the PMBOK are
project risk response audits, EVA, technical performance measurement, and
additional risk response planning. Answer A is incorrect because project risk
reviews are not an output of risk monitoring and control. Answer C is incorrect
because project risk reviews are not inputs to risk monitoring and control.
Answer D is incorrect because periodic project risk reviews are necessary for
the success of a project.

Front 384

High Water Septic Systems is dealing with pollution problems
in one of its local rivers that is used as an overflow for its treatment
plant. Therefore, the government has mandated that it
develop a schedule for resolving the overflow problem and getting
the river back to EPA standards. The project schedule is
an output of schedule development. It is utilized as an input to
❑ A. Activity definition
❑ B. Activity sequencing
❑ C. Schedule control
❑ D. Activity duration estimating

Back 384

C
Answer C is correct. The project schedule is an input to schedule control. The
other inputs are performance reports, change requests, and the schedule management
plan. Answers A, B, and D are incorrect because the project schedule
is not an input to either activity definition, activity sequencing, or activity duration
estimating.

Front 385

Which of the following are outputs of schedule control?
❑ A. Schedule updates, corrective action, and lessons learned
❑ B. Project schedule, performance reports, and change requests
❑ C. Schedule updates, corrective action, and performance reports
❑ D. Lessons learned, performance reports, and change requests

Back 385

A
Answer A is correct. The PMBOK states that the three outputs of schedule
control are schedule updates, corrective action, and lessons learned. Therefore,
Answers B, C, and D are incorrect because they are not completely correct
answers.

Front 386

As a project manager, you understand that correlating risk and
mitigation costs is a valuable exercise that can isolate financial
implications for the risks. A risk database is an output of risk
monitoring and control. What is a risk database?
❑ A. A repository used to maintain information about risky
projects
❑ B. A repository used to maintain information about risky customers
❑ C. A repository used for data collected and utilized in the risk
management process
❑ D. All of the above

Back 386

C
Answer C is correct. The PMBOK defines a risk database as a repository that
provides for collection, maintenance, and analysis of data gathered and used in
the risk management processes. Answers A, B, and D are incorrect because they
are not the correct definition according to the Project Management Body of
Knowledge (PMBOK).

Front 387

Progressive elaborations are common in projects and can help
the project develop higher quality standards with each iteration.
Rework is
❑ A. Never acceptable
❑ B. Action taken to bring a nonconforming item into compliance
❑ C. Never necessary
❑ D. Always required to meet quality control measures

Back 387

B
Answer B is correct. The PMBOK states that rework is an output of the
quality control process. Although rework must be minimized, it is sometimes
required to bring a nonconforming item into compliance. Answers A and C are
incorrect because rework is sometimes unavoidable and must be accepted.
Answer D is incorrect because rework is not always required to meet quality
control measures

Front 388

It is important to maintain high quality standards for your
projects and to utilize inspections to maintain those standards.
Inspections completed during a project may also be called
❑ A. Walkthroughs
❑ B. Control tests
❑ C. Checkpoints
❑ D. Quality checklists

Back 388

A
Answer A is correct. Inspections are performed during a project to certify that
results are conforming to requirements. They may also be called walkthroughs,
audits, or reviews. Answers B, C, and D are incorrect because they are not
inspections that are completed during a project.

Front 389

Green Leaf LLC is an accounting firm that frequently
becomes involved with risk audits and the financial implications
that are correlated with those risks. What is the major
difference between a risk audit and a risk review?
❑ A. There is no difference.
❑ B. A risk audit is only conducted on a much larger project.
❑ C. The project team conducts a risk audit, whereas an outside
party conducts a risk review.
❑ D. An outside party conducts a risk audit, whereas the project
team conducts a risk review.

Back 389

D
Answer D is correct. An outside party conducts a risk audit, whereas the project
team conducts a risk review. Risk reviews should be scheduled regularly.
Answer A is incorrect because there are significant differences between risk
audits and risk reviews. Answer B is incorrect because risk audits can be done
on projects regardless of their size. Answer C is incorrect because a project
team does not generally conduct a risk audit; however, it frequently performs
the risk review.

Front 390

Raj is new to Project Management and is perplexed by scope
verification and quality control terminology. You explain to
him that scope verification differs from quality control in that
❑ A. Scope verification is concerned with the acceptance and not
the correctness of the work results.
❑ B. Quality control is necessary, whereas scope verification is not.
❑ C. A and B.
❑ D. None of the above

Back 390

A
Answer A is correct. Scope verification differs from quality control in that
scope verification is concerned with the acceptance, and not the correctness, of
the work results. Both scope verification and quality control are necessary in a
successful project. Answer B is incorrect because scope verification is concerned
with the correctness of the work results. Answer C is incorrect because scope
verification is required for a project. Answers C and D are incorrect because
Answer A is the only correct answer to this question.

Front 391

You have just learned that a new governmental regulation will
cause a change to your project’s product specifications. What
should you do?
❑ A. Set up a meeting with the government to discuss this regulation.
❑ B. Create a new project plan.
❑ C. Create a new WBS.
❑ D. Prepare a change request.

Back 391

D
Answer D is correct. Your first step is to document the change, the reasons for
the change, and its effect on the project in a change request. Answer A is incorrect
because a government regulation will likely not be changed to accommodate
your project. Answers B and C are incorrect because you do not necessarily need
to prepare a new project plan due to a new government regulation.

Front 392

The vice president of your company has requested that you
attend the upcoming change control board meeting that is
scheduled this week. Why is a change control board necessary?
❑ A. To approve or reject changes to the project plan
❑ B. To approve or reject change requests when required
❑ C. To approve or reject changes to the WBS
❑ D. To approve or reject the selection of project team resources

Back 392

B
Answer B is correct. The change control board’s responsibilities should be
agreed upon by the project stakeholders. A change control board is usually necessary
to approve or reject change requests. Answers A, C, and D are incorrect
because the change control board’s main focus is to approve or reject change
requests and not changes to the project plan, work breakdown structure, or
selection of project team resources.

Front 393

Understanding the concept of a schedule performance index
might be useful in identifying projects that should not be
included in your project portfolio. What does a schedule performance
index of less than 1.0 indicate?
❑ A. The project is over budget.
❑ B. The project is not as valuable as originally estimated.
❑ C. The project is running behind the monetary value of work
planned to accomplish.
❑ D. None of the above.

Back 393

C
Answer C is correct. The schedule performance index (SPI) is an index utilized
to show how much of the originally scheduled work has been accomplished
at a specific point in time. Answer A is incorrect because SPI is not
associated with a project being over budget. Answer B is incorrect because SPI
does not gauge if the project is not as valuable as originally estimated.

Front 394

Information technology and telecommunication projects frequently
offer opportunities for the project manager to develop
different scenarios to reach the end result. Some of these scenarios
might involve a workaround. What is a workaround?
❑ A. A provision in the project plan to mitigate cost or schedule risk
❑ B. Compressing the project schedule by overlapping tasks
❑ C. An unplanned response to a determined negative risk
❑ D. None of the above

Back 394

C
Answer C is correct. Workarounds are used when necessary in risk monitoring
and control. Answer A is the PMBOK’s definition of reserve. Answer B is the
PMBOK’s definition of fast tracking.

Front 395

Cost overruns have plagued the introduction of a new factory
assembly line at your company and your project’s approved
cost baseline has been exceeded. What should you do next?
❑ A. Request more funds from the customer.
❑ B. Update the project plan.
❑ C. Update the WBS.
❑ D. Issue a budget update.

Back 395

D
Answer D is correct. A budget update is necessary when there is a change to
an approved cost baseline. Such an update is usually made in response to an
approved project scope change. Answer A is incorrect because you can only
request more funds if the customer has approved a change control document to
approve the additional costs. Answer B is incorrect because you should only
change the project plan if it is affected by the budget and has gone through
appropriate approval processes. Answer C is incorrect because the budget overrun
will not have an impact upon the work breakdown structure (WBS).

Front 396

Construction has begun on the new wing at New Life
Hospital and Rick plans to use scheduling software to plan his
resource allocations. Project Management software and variance
analysis are tools and techniques used in
❑ A. Schedule control
❑ B. Risk response planning
❑ C. Administrative closure
❑ D. Quality control

Back 396

A
Answer A is correct. Project management software and variance analysis are
tools and techniques used in schedule control. Other tools and techniques utilized
in schedule control are a schedule change control system, performance
measurement, and additional planning. Answers B, C, and D are incorrect
because Project Management software and variance analysis are not tools and
techniques that are used in risk response planning, administrative closure, or
quality control.

Front 397

Project closing is the last phase of the project life cycle and
Howard is excited to be near project completion. In his
research on closing processes, he identifies several areas in
which he needs to concentrate his efforts. Which of the following
two processes is a part of project closing?
❑ A. Schedule control and quality control
❑ B. Information distribution and contract administration
❑ C. Activity definition and activity sequencing
❑ D. Contract closeout and administrative closure

Back 397

D
Answer D is correct. Contract closeout and administrative closure are the only
two processes in project closing. Answer A is incorrect because schedule control
and quality control are controlling processes. Answer B is incorrect because
information distribution and contract administration are executing processes.
Answer C is incorrect because activity definition and activity sequencing are
processes within project planning.

Front 398

As you develop your project closeout documents, you begin to
review the project deliverables and develop your checklist of
project requirements. You can typically find the requirements
for formal contract closeout in the
❑ A. Project plan
❑ B. Contract terms and conditions
❑ C. Work breakdown structure
❑ D. Charter

Back 398

B
Answer B is correct. If there are such formal procedures required during contract
closeout, they can typically be found in the contract terms and conditions.
Answer A is incorrect because the project plan is used to document planning
assumptions, decisions, scope, cost, and schedule. Answer C is not correct
because the WBS defines and organizes the total work scope. Answer D is
incorrect because the charter formally authorizes the existence of a project.

Front 399

The solicitation and procurement process can be a challenge if
your vendors are not responsive to customer requests for
information. Part of this procurement process might include a
procurement audit. What is the goal of a procurement audit?
❑ A. To determine whether the vendor has been overcharging
❑ B. To expose errors of the vendor
❑ C. To improve the procurement management process of an
organization
❑ D. All of the above

Back 399

C
Answer C is correct. A procurement audit is a review of each process step
within the procurement management activity with the key objective of improving
this process on future procurement initiatives within the same organization.
Answers A and B are incorrect because the goal is not to find or expose errors
on the vendor’s part. Therefore, Answer D is incorrect as well.

Front 400

Administrative closure can sometimes be viewed as an unnecessary
“busy work” task; however, it is imperative in the closing
phase of the project. Which of the following are inputs to
administrative closure?
❑ A. Performance measurement documentation
❑ B. Product documentation
❑ C. Project archives
❑ D. All of the above

Back 400

D
Answer D is correct. Answers A and B are both correct because performance
measurement documentation and product documentation are both inputs to
administrative closure. Answer C is an example of other project records and
therefore is also correct as an input.

Front 401

Greg is reviewing the project artifacts for his project and is
amazed about the volume of good information the team has
developed throughout the project, including the lessons
learned. The PMBOK states that lessons learned are
❑ A. An input to administrative closure
❑ B. An output of administrative closure
❑ C. Only necessary on large projects
❑ D. None of the above

Back 401

B
Answer B is correct. Lessons learned are an output of administrative closure,
and are necessary no matter how large or small the project is.

Front 402

Sometimes Mark feels like a lawyer as he reviews and critiques
vendor contracts for ACME Asphalt Company. During the
contract closeout, he develops a checklist of topics that he
needs to discuss so he is prepared to talk with the vendor
about its services. All of the following should be reviewed during
contract closeout except
❑ A. Invoice and payment records
❑ B. Risk log
❑ C. Approved change requests
❑ D. Inspection documentation

Back 402

B
Answer B is correct. A project risk log is not considered by the PMBOK to be
contract documentation. Answers A, C, and D are considered contract documentation
and should be reviewed during contract closeout.

Front 403

What is the difference between contract closeout and administrative
closure?
❑ A. Contract closeout is only performed once in a project.
❑ B. Administrative closure is only performed once in a project.
❑ C. Only contract closeout is required in every project.
❑ D. There is no difference.

Back 403

A
Answer A is correct. A contract is closed when the contract work has been
completed or terminated. Answer B is incorrect because administrative closure
is performed at the end of every phase of a project. Answer C is incorrect
because administrative closure is necessary on all projects. Contract closure
only occurs for projects that have contracts.

Front 404

While preparing for the PMP exam, Sabrina is relieved to
realize that she is finally getting to the last sections of the
PMBOK, but she wants to review the tools and techniques for
all of the project phases. Which of the following are tools and
techniques recommended by the PMBOK in the administrative
closure phase?
❑ A. Control charts and Pareto diagrams
❑ B. Flowcharting and trend analysis
❑ C. Project reports and presentations
❑ D. Trend analysis and inspection

Back 404

C
Answer C is correct. Project reports and presentations are tools and techniques
in administrative closure. Answer A is incorrect because control charts
and Pareto diagrams are tools and techniques used in quality control. Answer B
is incorrect because flowcharting and trend analysis are also tools and techniques
in quality control. Answer D is incorrect because again, trend analysis
and inspection are tools and techniques used in quality control.

Front 405

As a vendor, Big Blue Corporation has valued its customer’s
input during the entire project life cycle, and looks forward to
meeting the executives at Small Company for the closeout
meeting. Part of this meeting will include the review of the
administrative documents for sign-off by the customer. All of
the following are outputs of administrative closure except
❑ A. Correspondence
❑ B. Contract changes
❑ C. Lessons learned
❑ D. Payment requests

Back 405

C
Answer C is correct. Lessons learned are not an output of contract administration.
The outputs of contract administration are correspondence, contract
changes, and payment requests. Therefore Answers A, B, and D are outputs of
contract administration and therefore incorrect answers to this question.

Front 406

After attending the PMI Professional Development Day in
Los Angeles, Emelee was encouraged about all the information
she acquired on administrative closure of a project. All of
the following are outputs of administrative closure except
❑ A. Project archives
❑ B. Project closure
❑ C. Lessons learned
❑ D. Rework

Back 406

D
Answer D is correct. Project archives, project closure, and lessons learned are
all outputs of administrative closure. Rework is an output of quality control.

Front 407

Differentiating between closeout terms can sometimes be confusing.
Contract closeout and administrative closure are similar
in that they both include
❑ A. Project plan verification
❑ B. Product verification
❑ C. A and B
❑ D. None of the above

Back 407

B
Answer B is correct. It must be verified that the work product meets the specifications.
Answer A is incorrect because the project plan is verified during the
project plan development phase.

Front 408

After leading a two-year project at The Project Management
Company, David is ready to complete his project and get signoff
from the project sponsor. Which of the following must
happen before a project can officially close?
❑ A. The customer has to formally accept the project’s product.
❑ B. Lessons learned must be documented.
❑ C. The project team must have a new project.
❑ D. All of the above.

Back 408

A
Answer A is correct. Before a project can officially close, the customer must
accept the product of the project. Answer B is a part of the closing process, but
even if lessons learned have been documented, the project can remain open.
Answer C is incorrect because a team obviously doesn’t need a new project, and
therefore Answer D is incorrect as well.

Front 409

Which of the following is defined in the PMBOK to be an
output of contract closeout?
❑ A. Contract documentation
❑ B. Procurement audits
❑ C. Contract file
❑ D. None of the above

Back 409

C
Answer C is correct. The two outputs of contract closeout are the contract file
and formal acceptance and closure. Answer A is incorrect because contract documentation
is an input to contract closeout. Answer B is incorrect because procurement
audits are a tool and technique in contract closeout.

Front 410

As part of finishing her project notebook, Carmen is compiling
the paperwork for the project auditor to review. As she
completes her final reports for the administrative closeout, she
confirms that she has performed all of the necessary requirements.
Which of the following is not a part of administrative
closure?
❑ A. Performance measurement documentation
❑ B. Return on investment (ROI) reports
❑ C. Project closure
❑ D. Lessons learned

Back 410

B
Answer B is correct. ROI reports are financial reports that are not a part of
administrative closure. Answer A is an input to administrative closure. Answer
C is an output of administrative closure. Answer D is also an output of administrative
closure.

Front 411

On your current project, you are utilizing the skills of many
subcontractors. You look forward to working with some of
them again. However, one of them has submitted expensive
change orders every week. Now that you are in the closing
phase, what should you do?
❑ A. Utilize earned value analysis (EVA).
❑ B. Fire the subcontractor for submitting too many change
orders.
❑ C. Conduct a procurement audit.
❑ D. Conduct a subcontractor trend analysis.

Back 411

C
15. Answer C is correct. The goal of the procurement audit is to identify successes
and failures. Through this audit, your organization can determine which subcontractors
to work with again on future projects.

Front 412

Marsha is an engineer who is developing a new line of stereo
speakers for Big Bad Boom Company. The project manager of
the speaker project is Hans Tweeter, and he is requiring the
specifications, technical documentation, and blueprints for
these revolutionary speakers for the closeout of the project.
These inputs to the administrative closeout are known as
❑ A. Product documentation
❑ B. Deliverables
❑ C. Project archives
❑ D. Project reports

Back 412

A
Answer A is the best answer.

Front 413

You are the program manager of an organization and have a
project that is nearing completion. Although the project has
not been formally closed, the project manager would like to
leave early so she can begin her role as the project manager of
another project. What should you do?
❑ A. Forbid this, and dictate that she stay through the closing
process.
❑ B. Complete the closing duties yourself.
❑ C. Appoint another resource as the closing manager, but dictate
that she is available for any required customer meetings.
❑ D. Any of the above.

Back 413

C
Answer C is correct. The newly appointed closing manager will be able to
contact the previous project manager with any technical questions. The project
manager should be available for any customer meetings.

Front 414

Tonya can’t wait to be finished with her project in Indiana and
move on to new adventures in Project Management in
Chicago, but she realizes that she has not performed the
administrative closure on the project. Why is it important that
administrative closure is not saved until project completion?
❑ A. The customer might not approve the project.
❑ B. The project will not succeed.
❑ C. The project manager might be on a new assignment.
❑ D. Useful information might be lost or forgotten.

Back 414

D
Answer D is correct. The person or organization responsible for contract
administration should provide the seller with formal written notice that the
contract has been completed. This is usually defined in the contract.

Front 415

Scott has noticed that due to mergers and acquisitions, the
team culture at Worldwide Memorabilia has drastically
changed since the beginning of his project. During the closing
phase, the team’s culture is typically
❑ A. Focused on information gathering
❑ B. Focused on information transfer
❑ C. Competitive
❑ D. Participative

Back 415

B
Answer B is correct. During the closing phase, the emphasis is typically on the
transfer of information. As team members leave, information is transitioned to
the customer or project owner.

Front 416

A new customer at Jack’s construction company has just formally
accepted a new project. What is the next thing you
should do?
❑ A. Give the formal acceptance documentation to other stakeholders.
❑ B. File the formal acceptance documentation in the project
archives.
❑ C. Dismiss the project team.
❑ D. Schedule a final meeting

Back 416

A
Answer A is correct. After you receive formal acceptance of the project, you
should then distribute this formal acceptance documentation to the appropriate
stakeholders, as previously determined.

Front 417

Getting formal sign-off for a project from a sponsor can
almost be impossible at some companies. How is formal
acceptance and closure of a contract described in the
PMBOK?
❑ A. Any of the following.
❑ B. The signature of the primary stakeholder.
❑ C. The person or organization responsible for contract administration
should provide the seller with verbal notice that the
contract has been completed.
❑ D. The person or organization responsible for contract administration
should provide the seller with formal written notice
that the contract has been completed.

Back 417

D
Answer D is correct. The person or organization responsible for contract
administration should provide the seller with formal written notice that the
contract has been completed. This is usually defined in the contract.

Front 418

22. Due to hurricane Francis, many construction project contracts
in Charlotte, North Carolina had to be canceled or closed out
quickly due to the damage caused by the high winds and rain.
Which of the following does the PMBOK state is a special
case of contract closeout?
❑ A. Early termination of a contract
❑ B. A lost contract
❑ C. A and B
❑ D. None of the above

Back 418

A
Answer A is correct. The PMBOK specifically states that early termination of
a contract is a special case of contract closeout.

Front 419

Which of the following does the PMBOK not contain in its
definition of what is included in contract documentation?
❑ A. The contract itself
❑ B. The statement of work
❑ C. Requested and approved contract changes
❑ D. Supporting schedules

Back 419

B
Answer B is correct. The statement of work is not included in the PMBOK’s
definition of contract documentation. The PMBOK defines contract documentation
as including, but not limited to, the contract itself along with all supporting
schedules, requested and approved contract changes, any seller-developed
technical documentation, seller performance reports, financial documents such
as invoices and payment records, and the results of any contract-related inspections.

Front 420

Friction Partners is finishing its first government contract and
preparing the closing documents. Matt, the project manager
for Friction Partners, is in charge of coordinating the necessary
documents. Which of the following is an output of contract
closeout?
❑ A. Contract file
❑ B. Formal acceptance and closure
❑ C. Contract documentation
❑ D. A and B

Back 420

D
Answer D is correct. Both the contract file and formal acceptance and closure
are outputs of contract closeout. Contract documentation is an input to contract
closeout.

Front 421

Because it is an ISO-9000 certified supplier, Fillmore Vision
Limited is developing its own Project Management style,
which is based upon PMI methodology. The lead project manager,
Lars, is charged with preparation of project contract
closeout artifacts, and he consults the PMBOK for assistance.
Which of the following does the PMBOK describe as a useful
tool and technique to utilize during contract closeout?
❑ A. Bidder conferences
❑ B. Advertising
❑ C. Project presentations
❑ D. Procurement audits

Back 421

D
Answer D is correct. Procurement audits are a tool and technique to use during
contract closeout. Answers A and B are tools and techniques for solicitation.
Answer C is a tool and technique for administrative closure.

Front 422

While closing out project contracts, which of the following
documents do you not need to review?
❑ A. The contract itself
❑ B. Procurement audit
❑ C. Invoice records
❑ D. Payment records

Back 422

B
Answer B is correct. Procurement audits are not documents that need to be
reviewed while closing out project contracts. However, you should review the
contract itself, and invoice and payment records.

Front 423

What is a primary way that a project manager can assess project
effectiveness?
❑ A. Use trend analysis.
❑ B. Perform an inspection.
❑ C. Conduct a performance review.
❑ D. Perform a vendor audit.

Back 423

C
Answer C is correct. A performance review can be utilized to determine the
successes and failures of a project.

Front 424

Harold is a Six Sigma Black Belt and is savvy at statistical process
flows and supply chain management. During a recent lecture, he is
questioned by a student about variance analysis and how it relates
to Six Sigma. How does the PMBOK explain variance analysis?
❑ A. Comparing actual project results to expected
❑ B. Comparing actual project results over time
❑ C. A and B
❑ D. None of the above

Back 424

A
Answer A is correct. Variance analysis involves comparing actual project results
to planned or expected results. Trend analysis involves examining project results
over time to determine if performance is improving.

Front 425

John has a phobia of project risk and how to handle changes
within the project. The ambiguity and chaos during certain
parts of the project have encouraged him to seek another line
of work outside of Project Management. Which phase of the
project life cycle gives John the greatest degree of uncertainty?
❑ A. Initiating
❑ B. Planning
❑ C. Executing
❑ D. Closing

Back 425

A
Answer A is correct. There is a great deal of uncertainty in initiating. As a
project progresses through the different phases, the degree of uncertainty
decreases.

Front 426

As a project manager, you should confirm that the project has
met all customer requirements for the project. This output is
commonly referred to as
❑ A. Project closure
❑ B. Sign-off
❑ C. Project artifacts
❑ D. None of the above

Back 426

A
Answer A is correct. A PMIS stands for a project management information
system. The PMBOK strongly supports the use of historical project information.

Front 427

Earned value (EV) analysis is a performance reporting tool and
technique used in administrative closure. What is EV?
❑ A. Budgeted cost of work scheduled
❑ B. Cost of the work actually completed
❑ C. Value of the work actually completed
❑ D. None of the above

Back 427

C
Answer C is correct. EV, also called the budgeted cost of work performed
(BCWP), is the value of the work actually completed.

Front 428

EV – AC is equal to what?
❑ A. SPI
❑ B. CPI
❑ C. SV
❑ D. CV

Back 428

D
Answer D is correct. EV – AC is equal to CV, the cost variance. In Answer A,
the SPI is equal to EV/PV. In Answer B, the CPI is equal to EV/AC. And finally,
in Answer C, SV is equal to EV – PV.

Front 429

As you prepare for the PMP exam, you might be confused by
many of the terms and acronyms. For the contract closeout
section of the test, it is important to know that contract closeout
is similar to administrative closeout because both
❑ A. Are performed at the end of the project
❑ B. Involve project sign-off
❑ C. Include the sponsor and other key stakeholders
❑ D. Involve administrative closeout and product verification

Back 429

D
Answer D is correct. Performance measurement documentation, product documentation,
and other project records are all inputs to administrative closure.
Project archives are an output of administrative closure.

Front 430

How does the PMBOK describe product documentation?
❑ A. The statement of work
❑ B. Documents produced to describe the product of the project
❑ C. All project contract documentation
❑ D. All of the above

Back 430

B
Answer B is correct. The PMBOK states that product documentation is all
documents produced to describe the product of the project (plans, specifications,
technical documentation, drawings, electronic files, and so forth).

Front 431

Project deliverables are provided throughout the entire project
and are frequently tied with milestones. Which of the following
best describes project archives?
❑ A. A list of an organization’s prior projects
❑ B. Similar to lessons learned
❑ C. Indexed project records
❑ D. None of the above

Back 431

C
Answer C is correct. This set of indexed project records should contain all
project documents, communications, financial records, and other data.

Front 432

Your company has just completed a project for the county and
has received final payment for its services. Who should formally
notify you that the contract has been closed?
❑ A. The person in charge of contract administration
❑ B. The project manager
❑ C. The project sponsor
❑ D. Any of the project stakeholders

Back 432

A
Answer A is correct. The person in charge of contract administration should
let you know in writing that the contract has been closed.

Front 433

During a recent company retreat, there was considerable debate
about what topics would be discussed. The leader of the group,
Alfred, decided that the group would focus on problems it recently
encountered during the project closeout with its newest customer,
DC Designs. Because the customer was dissatisfied that it
did not receive its product on time, it asked for refund of its initial
payment. This early termination of the contract is a case of
❑ A. Contract cancellation
❑ B. Contract closeout
❑ C. Customer dissatisfaction
❑ D. Contract fraud

Back 433

B
Answer B is correct. The PMBOK defines the three inputs to administrative
closure to be performance measurement documentation, product documentation,
and other project records.

Front 434

Construction project estimates tend to be more accurate than
IT project estimates due to the historical data that is available
to builders and designers. Which of the following is the way
the PMBOK defines estimate at completion (EAC)?
❑ A. It is the same as AC.
❑ B. It is the same as EVA.
❑ C. It is a forecast of most likely total project costs based on previous
projects’ performance.
❑ D. It is a forecast of most likely total project costs based on project
performance and risk quantification.

Back 434

D
Answer D is correct. The PMBOK defines EAC as a forecast of most likely
total project costs based on project performance and risk quantification.

Front 435

Unless customers are satisfied with the project outcomes, they
will not likely bring more business to a vendor. Therefore, a
post-project evaluation should be provided to solicit feedback
from the customer to ensure it is satisfied. What is another
potential consequence of a dissatisfied customer?
❑ A. Negative return on investment (ROI)
❑ B. Procurement chain interruptions
❑ C. Lost credibility
❑ D. Corrective actions

Back 435

C
Answer C is correct. Both positive and negative lessons learned should be documented
throughout a project.

Front 436

The benefits that come from a successful project range from
knowledge development to financial gains. Sometimes, project
managers do not identify problems with a project until it is too
late. In the final days of a project, most problems that arise are
due to
❑ A. Lack of communication
❑ B. Collocation
❑ C. Schedule problems
❑ D. Technical issues

Back 436

C
Answer C is correct. Schedule problems cause most conflicts in the final days of
a project. Any slippage in the timeline will become very apparent at this time.

Front 437

Jessica is a financial whiz and can develop a budget for projects
very quickly. When she develops a project budget, she frequently
utilizes a performance baseline so she has an understanding of
financial implications for the project. The performance measurement
baseline is the
❑ A. Actual cost (AC)
❑ B. Earned value (EV)
❑ C. Present value (PV)
❑ D. Budgeted (EVA) cost

Back 437

C
Answer C is correct. The PV is the originally scheduled project cost, or baseline.

Front 438

During which of the following processes should team members
update their performed skills in their organization’s database?
❑ A. Administrative closure
❑ B. Organization planning
❑ C. Information distribution
❑ D. Team development

Back 438

A
Answer A is correct. The PMBOK specifically says that employee skills in the
staff pool database should be updated to reflect new skills and proficiency
increases.

Front 439

Project managers tend to dwell upon closure and get excited as
they check off their to-do lists. The PMBOK states that a
project or phase requires closure
❑ A. After achieving its objectives
❑ B. Being terminated for other reasons
❑ C. If it spans more than 30 days
❑ D. A or B

Back 439

D
Answer D is correct. The PMBOK specifically states that a project or phase,
after either achieving its objectives or being terminated for other reasons,
requires closure.

Front 440

Sieglinde is glad to finally be done with her six-month
production-line upgrade project at a local mattress-fabricating
company. As she prepares the deliverables for the customer
closeout meeting, she reflects upon the activities that will need
to occur to properly close out the project. Administrative closure
includes all of the following activities except
❑ A. Collecting project records
❑ B. Staffing team members on new projects
❑ C. Archiving project information
❑ D. Documenting lessons learned

Back 440

B
Answer B is correct. Administrative closure does not include the activity of
staffing the project’s team members on new assignments. However, it does
include collecting project records, archiving project information, and documenting
all lessons learned.

Front 441

Which of the following statements about administrative closure
is false?
❑ A. Each phase of the project should be closed for projects over
30 days.
❑ B. Each phase of the project should be closed.
❑ C. It includes documenting lessons learned.
❑ D. It includes collecting project records.

Back 441

A
Answer A is correct. Each phase of a project should be closed in all projects,
not only lengthier ones. It’s also true that lessons learned are documented and
project records are collected in this process.

Front 442

Too frequently, project managers are so glad to be done with a
project that they do not go through the necessary final steps in
the contract closeout. A written formal statement that the
project has been completed should
❑ A. Be done at the closeout meeting
❑ B. Finalize the project
❑ C. Be provided by the contact administration representative or
organization to the seller
❑ D. Resolve any outstanding contract disputes

Back 442

C
Answer C is correct. The PMBOK specifically states that contract closeout is
similar to administrative closure in that it involves both product verification
and administrative closeout.

Front 443

The post-project evaluation frequently identifies areas in
which the team and project managers can improve. This evaluation
also provides all of the following except
❑ A. Cost performance reporting
❑ B. Formal acceptance
❑ C. Cost performance
❑ D. Recommendations for future projects

Back 443

B
Answer B is correct. Procurement audits are a tool and technique used in contract
closeout. Answer A is a tool and technique used in contract administration.
Answer C is an input to contract closeout. Answer D is an output to contract
closeout.

Front 444

Team celebrations are an integral part of a project that encourage
future success and camaraderie among stakeholders. When
should a team celebration occur?
❑ A. Upon completion of major milestones
❑ B. Project closeout
❑ C. Whenever the project manager deems it necessary
❑ D. All of the above

Back 444

D
Answer D is correct. This is what the PMBOK defines to be formal acceptance
and closure, which is an output of contract closeout.

Front 445

Lessons learned are important to document because an organization
can use them to improve future projects and the Project
Management process. Therefore, in project closing procedures,
it is important to review the
❑ A. Checklists for risk identification
❑ B. Work breakdown structure (WBS)
❑ C. Original contract
❑ D. Vendor audits

Back 445

A
Answer A is correct. Such a checklist is a tool and technique for risk identification
as described in the PMBOK. It can be formulated by using lessons learned
from previous projects and other historical information.

Front 446

Meredith and Mantel identify several varieties of project termination.
These include all of the following except
❑ A. Termination by extinction
❑ B. Termination by integration
❑ C. Termination by subtraction
❑ D. Termination by starvation

Back 446

C
Answer C is correct. The two processes in the closing process group are
administrative closure (within the project communications management knowledge
area) and contract closeout (in the project procurement management
knowledge area).

Front 447

The five Project Management process groups include all of the
following except
❑ A. Startup
❑ B. Planning
❑ C. Executing
❑ D. Closing

Back 447

A
Answer A is correct. Startup is not one of the process groups. The five Project
Management process groups are initiating, planning, executing, controlling,
and closing.

Front 448

Which of the following is not a Project Management knowledge
area?
❑ A. Integration management
❑ B. Scope management
❑ C. Risk management
❑ D. None of the above

Back 448

D
Answer D is correct. All answers listed are Project Management knowledge
areas. The nine Project Management knowledge areas are integration management,
scope management, time management, cost management, quality management,
human resource management, communications management, risk
management, and procurement management.

Front 449

Contract closeout falls in which of the following Project
Management knowledge areas?
❑ A. Communications management
❑ B. Procurement management
❑ C. Contract management
❑ D. Vendor management

Back 449

B
Answer B is correct. Contract closeout falls within the project procurement
management knowledge group.

Front 450

All of the following are included in the contract closeout
process except
❑ A. Contract documentation
❑ B. Procurement audits
❑ C. Contract changes
❑ D. Formal acceptance and closure

Back 450

C
Answer C is correct. Contract changes are an output of contract administration.
Answer A is an input to contract closeout. Answer B is a tool and technique
utilized in contract closeout. Answer D is an output of contract closeout.

Front 451

A procurement audit is used to identify successes and failures
in the procurement process. It is conducted during
❑ A. Procurement planning
❑ B. Solicitation planning
❑ C. Vendor review
❑ D. Contract closeout

Back 451

D
Answer D is correct. A procurement audit is a tool and technique used during
contract closeout. The PMBOK defines it as a review of the procurement
process from procurement planning through contract administration.

Front 452

Tom, a scientific project manager with a large pharmaceutical
company, has been assigned a very difficult R & D project that
does not appear to be aligned with the goals of his department.
Novice project managers frequently do not know how or when
to appropriately terminate a project. What is the most important
factor to consider when you terminate an R & D project?
❑ A. Low probability of achieving technical objectives or commercializing
results
❑ B. Low profitability
❑ C. Patent problems
❑ D. Change in market needs or competitive factors

Back 452

A
Answer A is correct. Contract closeout and administrative closure are closing
processes.

Front 453

Project archives are an indexed set of project records that
should be maintained for any size or length of project. They
should be prepared as a part of which process?
❑ A. Organizational planning
❑ B. Administrative closure
❑ C. Procurement planning
❑ D. Communications planning

Back 453

B
Answer B is correct. Project archives should be kept for all projects, and are an
output of the administrative closure process.

Front 454

Which of the following is not an input to administrative closure?
❑ A. Project reports
❑ B. Performance measurement documentation
❑ C. Product documentation
❑ D. Other project records

Back 454

A
Answer A is correct. Project reports are a tool and technique used in administrative
closure. The three inputs to administrative closure are performance
measurement documentation, product documentation, and other project
records.

Front 455

The actual cost (AC) is the total costs incurred in accomplishing
work on an activity. It is also known as
❑ A. Cost variance (CV)
❑ B. Actual cost of work completed (ACWP)
❑ C. Earned value (EV)
❑ D. Present value (PV)

Back 455

B
Answer B is correct. AC was previously called ACWP, the actual cost of work
performed. CV is cost variance, EV is earned value, and PV is planned value.

Front 456

Which of the following is an output of administrative closure?
❑ A. Project closure
❑ B. Project reports
❑ C. Project presentations
❑ D. Product documentation

Back 456

A
Answer A is correct. Project closure is an output of administrative closure, as
are project archives and lessons learned. Answers B and C are tools and techniques
used during administrative closure. Answer D is an input to administrative
closure.

Front 457

Earned value (EV) involves the calculation of three key values
for an activity. These values can be used to measure whether
work is being accomplished as planned. What are these three
values?
❑ A. PV, AC, and SV
❑ B. PV, EV, and SV
❑ C. AC, SV, and AT
❑ D. PV, AC, and EV

Back 457

D
Answer D is correct. Earned value involves the calculation of PV (planned
value), AC (actual cost), and EV (previously called the budgeted cost of work
performed, or BCWP).

Front 458

What does a schedule performance index of less than 1.0 indicate?
❑ A. The project is over budget.
❑ B. The project is not as valuable as originally estimated.
❑ C. The project is running behind the monetary value of work
planned to accomplish.
❑ D. None of the above.

Back 458

C
Answer C is correct. The SPI is an index utilized to show how much of the
originally scheduled work has been accomplished at a specific point in time.

Front 459

Which of the following is not a part of the administrative closure
process?
❑ A. Performance measurement documentation
❑ B. Performance reports
❑ C. Project reports
❑ D. Project archives

Back 459

B
Answer B is correct. Performance reports are an output of performance
reporting. Performance measurement documentation is an input to administrative
closure. Project reports are a tool and technique used during administrative
closure. Project archives are an output of administrative closure.

Front 460

What formula can you use to determine the cost performance
index (CPI)?
❑ A. AC/EV
❑ B. EV – AC
❑ C. EV/AC
❑ D. AC – EV

Back 460

C
Answer C is correct. The CPI (cost performance index) is earned value divided
by actual cost.

Front 461

Administrative closure falls within which of the following
Project Management knowledge areas?
❑ A. Procurement management
❑ B. Cost management
❑ C. Communications management
❑ D. Human resource management

Back 461

C
Answer C is correct. Administrative closure falls within the communications
management–Project Management knowledge area.

Front 462

1. PMI’s ethical standards document describes the professional
obligations to which a member must adhere. These fall into
which of the following categories?
❑ A. Responsibilities to the profession, to customers, and to the
public
❑ B. Professional practices
❑ C. Advancement of the profession
❑ D. Truthful advertising

Back 462

A
Answer A is correct. Answers B, C, and D are subcategories of the professional
obligations category.

Front 463

You and your friend Jim are both PMPs. Jim is advertising
himself locally as an expert in human resources. He is listing
projects you know he never worked on. What should you do?
❑ A. Nothing. Unless Jim actually gets a job in the field, no violation
has occurred.
❑ B. Confront Jim and tell him you feel he is engaging in false
advertising. Ask him to pull the ad, or you will have to report
him to PMI.
❑ C. Gather the data you need, including copies of the ad, and
report Jim to PMI.
❑ D. The doctrine of caveat emptor applies here. Let the buyer
beware. You do not have any obligation to do anything.

Back 463

B
Answer B is correct. Although it is tempting to believe Answers A and D, as a
PMI member or candidate, you have a responsibility to report possible violations
of the code of professional conduct. Answer C is incorrect because you
need to first discuss the situation with Jim, exercising the “reasonable and clear
factual basis” rule.

Front 464

As a PMP, you need approximately 20 hours of professional
development units (PDUs) per year to maintain your certification
on a three-year cycle. You are now in your third year, and
realize you are desperately short of PDUs. A friend recommends
submitting early for classes you are scheduled to take.
What do you do?
❑ A. Go ahead and submit the forms for credit. You are planning
to take the classes.
❑ B. Do not submit for credit in advance. You might be suspended
for not meeting your PDU requirements, but may be able to
make them up.
❑ C. If you have already paid for the classes, you can submit for
the credit.
❑ D. Do not submit for credit in advance. You will be permanently
barred from PMI for false reporting

Back 464

B
Answer B is correct. Answer A is tempting, but would be submitting a false
report. Answer C is incorrect; you must attend and attain the learning objectives
to count PDUs. Answer D is tempting but incorrect because a false report
is a violation of the Code of Ethics, but it might not necessarily result in permanent
barring from PMI.

Front 465

The PMI Member Code of Ethics pledges all but which of the
following?
❑ A. Professional conduct
❑ B. Taking responsibility for your actions
❑ C. Enhancing professional capabilities
❑ D. Accepting reasonable and customary profits

Back 465

D
Answer D is correct. Answers A, B, and C are all parts of the Code of Ethics.
There is no provision for the evaluation of profits.

Front 466

Renee orders printer ink cartridges for her project from a new
supplier who appears to have the lowest cost. After delivery of
the cartridges, the sales rep calls Renee to thank her for the
order, and tells her he will be sending her a portable grill as a
thank-you gift for her order. What should Renee do?
❑ A. Accept the gift. It did not influence her decision to purchase
the cartridges.
❑ B. Refuse the gift to avoid the appearance of impropriety.
❑ C. Report the cartridge company to the Better Business Bureau.
❑ D. Ensure the gift becomes a company asset and not a personal
asset.

Back 466

B
Answer B is correct. Although Answers A and D might be tempting, the
appearance of impropriety (A4) is important, and should be disclosed or avoided.
Answer C is not necessary unless the cartridge company has done something
illegal.

Front 467

Bob works at a manufacturing firm as a contract project manager.
He is responsible for choosing a circuit component supplier
for his project. Bob is also a silent investor in CIRQ, a
circuit component startup that is on the vendor selection list
for his project. What should Bob do?
❑ A. Select CIRQ. His project benefits and he reaps side benefits
for his investment.
❑ B. Immediately disclose to the manufacturing company that he is
a silent investor in one of the vendors on the list.
❑ C. Recuse himself from the vendor selection process.
❑ D. Disqualify CIRQ from the vendor selection list.

Back 467

B
Answer B is the best answer. Answer A is incorrect because Bob definitely has
a conflict of interest. Answers C and D are tempting, and could be options, if
the manufacturer feels the conflict is too big. Bob’s first step, however, should
be to disclose the conflict, and then decisions on actions can be made.

Front 468

website. He has used a number of PMBOK and RUP diagrams
and materials, but you notice he has not attributed them
to the source. What should you do?
❑ A. Report Ralph to the in-house legal group.
❑ B. Document the website and send it to PMI so that Ralph is
properly sanctioned.
❑ C. No action by you is necessary. Because it is an in-house
website, there is no issue with intellectual property.
❑ D. Approach Ralph and indicate that he might be violating copyright
laws. Suggest that he obtain permission for use and provide
proper attribution on the website

Back 468

D
Answer D is correct. Approaching Ralph is the first step. Answers A and B
might be necessary if Ralph refuses to correct the error. Answer C is incorrect
because intellectual property needs to be protected in-house as well as in public
realms.

Front 469

Your co-worker has written a report, which is really your job.
You want to take it and re-form it slightly, and then submit it
to your boss yourself. Your co-worker is fine with this
approach. Should you?
❑ A. No. It is a failure to disclose conflicts.
❑ B. Yes. It is simply an example of a co-worker helping you out.
❑ C. No. It is an example of failure to recognize and respect intellectual
property.
❑ D. No. This is an example of improper research.

Back 469

C
Answer C is correct. Answer A is incorrect because this situation is not a conflict
of interest. Answer B might be true, but you are taking credit for someone
else’s work. Answer D is incorrect because you don’t know whether the
research was done properly.

Front 470

Jerry, a PMP, needs a job badly, and has tweaked his resume to
imply he has experience in customer relationship management
(CRM) in order to land a job with a local CRM marketing
company. How would you characterize his behavior?
❑ A. Jerry is within normal limits of exaggeration. It is the hiring
company’s responsibility to check Jerry’s credentials.
❑ B. Jerry’s behavior is a violation of PMI’s ethical standards
regarding relationship to the public.
❑ C. Jerry’s behavior is a violation of PMI’s ethical standards
regarding professional practices.
❑ D. B and C.

Back 470

D
Answer D is correct. Jerry needs to represent his qualifications to the public
accurately. This is stated in both the Professional Practices section and
Responsibilities to the Public section of the Code of Ethics. Answer A is incorrect;
lying is not exaggeration, regardless of how badly Jerry needs a job.

Front 471

Rob is an old hippie turned project manager and is very successful
in the warehousing industry. At work, Rob is impeccable,
truthful, and well qualified. At home, he likes to indulge
in some of his old habits, including smoking marijuana occasionally
on weekends. How does this affect his status
with PMI?
❑ A. It doesn’t. What is done in the privacy of your own home is
not of concern to PMI.
❑ B. PMI is only concerned with professional behavior. Rob is
clearly an exemplary PMP.
❑ C. Rob is actually violating one of the PMI responsibilities of
membership, which is to abide by the laws of the community
and not knowingly engage in criminal conduct.
❑ D. Rob is violating responsibilities to customers and to the
public.

Back 471

C
Answer C is correct. This type of problem occurs often in business and is
tricky because it can end with a confrontation and possible job loss. No job,
however, is more important than your integrity. Answer A is incorrect unless
his boss has new data that would change the ROI significantly. Answer B is
incorrect because it is not the best approach to a situation. Answer D is also
incorrect because it is unlikely that any disclaimer will be allowed into a project
proposal.

Front 472

Ray is a project manager working on strategic projects for a
coat manufacturer. He has developed a business case for a new
warehouse, but the return on investment (ROI) is negative. “I
need to have a 10% positive ROI for this project,” his boss
tells him. “Change the forecast so we can get the project
approved.” What should Ray do?
❑ A. Change the forecast to get the positive ROI, because his boss
asked him to.
❑ B. Refuse to modify the data, and risk losing his job.
❑ C. Explain that ROI might not be the only consideration for the
approval of a project, and ask his boss to focus on the strategic
nature of the project, rather than changing the ROI.
❑ D. Modify the data, as his boss requested, and add a disclaimer
to the report that he disagrees.

Back 472

C
Answer C is correct. This type of problem occurs often in business and is
tricky because it can end with a confrontation and possible job loss. No job,
however, is more important than your integrity. Answer A is incorrect unless
his boss has new data that would change the ROI significantly. Answer B is
incorrect because it is not the best approach to a situation. Answer D is also
incorrect because it is unlikely that any disclaimer will be allowed into a project
proposal.

Front 473

Liz is a PMP, and values the process discipline of Project
Management. In a conversation with her, she complains about
the professional responsibility requirements of PMI. How
would you describe the purpose of maintaining an ethical standard
as a PMI member?
❑ A. That it maintains the integrity of PMI as an organization
❑ B. That it is good for profits
❑ C. To ensure all PMI members behave in a professional manner
❑ D. To earn and maintain the confidence of team members, colleagues,
employees, employers, customers and clients, the
public, and the global community

Back 473

D
Answer D is correct. This is in the preamble to the Member Code of Ethics.
Answers A, B, and C are byproducts of ethical behavior.

Front 474

As a contract project manager, you have just finished a major
product development project for a bicycle manufacturer,
Racebikes. Bike-Tech, a competitor to Racebikes, has
approached you to develop a similar product for it. What
should you do?
❑ A. Take the job. Leverage the knowledge of Racebikes to create
an even better product for Bike-Tech.
❑ B. Decline the engagement due to confidentiality issues.
❑ C. Determine whether the new engagement will cause you to
breach any confidentiality issues with Racebikes.
❑ D. This situation represents your ability to leverage your industry
knowledge. Take the engagement.

Back 474

B
Answer B is correct. Although opportunities arise often in which we have
industry information without causing confidentiality problems, this is a case in
which a competitor wants a similar product. The likelihood that confidentiality
will be breached is very high. Answers A and D are tempting because we are
often asked as PMs to do projects within the same industry. Answer C is possible,
but not likely.

Front 475

You are a PMP working as a project manager on a new fiberoptic
circuit that you know will revolutionize the computer
industry. You decide to buy stock in your company one week
before the product announcement and have told several
friends to do so also, without disclosing why. Would PMI
sanction this behavior?
❑ A. Yes. You did not disclose why your friends should buy the
stock.
❑ B. No. You are engaging in insider trading.
❑ C. Yes. It is only your opinion that the product will revolutionize
the computer industry.
❑ D. Yes. PMI would invoke sanctions against you as a PMI
member.

Back 475

B
Answer B is correct. Answers A and C are incorrect because you are taking
financial advantage of confidential information, which is considered an ethics
violation. Answer D is incorrect and tricky because it is an alternative use of the
word sanction. The question asks whether PMI would sanction the behavior,
using the verb, meaning approve. Answer D talks about sanctions, (nouns) or
punishments.

Front 476

Richard owns 10% of a company that competes with the one
he is currently doing a project for. He decides he will bring up
his stock ownership only if it becomes necessary in the course
of his project. Has Richard made the right decision?
❑ A. No. Richard is violating the timeliness of the disclosure clause
in the PMI Member Standards of Conduct.
❑ B. Yes. Richard, as an individual, cannot affect the stock value of
either company, so therefore he does not need to disclose
anything.
❑ C. Yes. Unless Richard is an employee of the competing
company, it does not matter.
❑ D. Yes. Unless Richard is working on a strategic project, his
stock ownership does not matter.

Back 476

A
Answer A is correct. Under professional behavior, A1 timely and full disclosure
is a requirement of members. Answer B is incorrect because a 10% ownership
is significant and can affect stock values. This is also a conflict of interest for
Richard to be working for a competing company. Answers C and D are not
correct in any way. Neither employment nor the strategic nature of a project
are factors in disclosure decisions.

Front 477

Iman is working in a Middle Eastern country and knows that
bribes are a legitimate custom in doing business. Iman works
for a U.S. company and knows that U.S. law prohibits bribery.
He is attempting to win a contract to construct a water treatment
facility and is expected to pay a $5,000 “finder’s fee” to
the local utility official. What should Iman do?
❑ A. Provide the fee. PMI approves of obeying local customs.
❑ B. Provide the finder’s fee. Because it is a fee, there is no issue.
❑ C. Do not provide the fee and risk losing the business. It is
illegal in the U.S., and Iman works for a U.S. firm.
❑ D. Provide the fee outside of his business capacity.

Back 477

C
Answer C is correct. Answer A is incorrect because, although PMI approves of
obeying local customs, it does not approve of breaking the law. Because Iman
works for a U.S. company, he is subject to U.S. laws. Answers B and D are
incorrect because they are trying to use other ways to justify the bribe.

Front 478

Ben is working a bridge construction project that is running
over budget and he is getting pressure from his customer to
cut costs. He has an opportunity to cut costs by using a rebar
that is not as high quality as originally planned. There is some
risk that the substitute rebar could fail with high winds, but
Ben feels the risk is small, even though the area occasionally
gets hurricanes. Should Ben use the substitute rebar?
❑ A. Yes. The cost/benefit shows it is worth it.
❑ B. Yes. The sponsor wants the project to come in on budget.
❑ C. No. Ben should use the originally specified rebar, and look to
cut costs elsewhere.
❑ D. Yes. Ben should tell the customer and use the cheaper rebar.

Back 478

C
Answer C is correct. To use rebar that has a risk of failure could put the public
in danger. This is a violation of Member Standards of Conduct C2: relationship
to the public and global community for PMI members to perform their
work in conformance to professional standards to ensure the public is protected
from harm. Answer A is incorrect because the cost benefit is not detailed in the
question. Answer B is incorrect because it is improper to do the wrong thing,
even when the sponsor wants it. Answer D is incorrect because it does not
absolve Ben of his responsibilities.

Front 479

Joe, a PMP, is providing research into customer purchasing
behavior of electronics. To sell the research to a pool manufacturer,
he changes the white paper and results to be more
generic, but does not actually research consumer behavior on
pool purchases. How would you characterize Joe’s behavior?
❑ A. It is typical for the consulting world. Joe is just trying to
develop another market for his research. Consumer behavior
is generally the same, regardless of product.
❑ B. Joe is providing a legitimate product to the customer.
❑ C. Although Joe can make some generic assumptions about his
research, he should really do some additional work before he
sells it to groups outside of the electronics industry.
❑ D. Joe is violating the PMI Member Standards of Conduct with
regard to research.

Back 479

D
Answer D is correct. Although Answers A and C might be true, Joe is still misrepresenting
his research, and is violating A3 of the member standards. Answer
B is incorrect because it is not true. The research should not be considered
valid for the pool industry.

Front 480

You are on a time and materials contract. You have finished
your work product an hour earlier than expected and want to
go home. However, you were expecting a full eight hours of
billable time to make your personal income goals. What
should you do?
❑ A. Bill eight hours. Just because you were especially efficient
does not mean you shouldn’t get a full day’s pay.
❑ B. Stay an extra hour and surf the Web or chat with other coworkers
to make up the time.
❑ C. Find an additional one-hour task that you can do and legitimately
bill the client, even though they did not ask for it.
❑ D. Bill the seven hours you worked and go home.

Back 480

D
Answer D is correct. Although this can happen, meeting your financial goals
should be considered in your rate and contract type negotiations. Answers A
and B are incorrect because they are not accurately reporting the time worked.
Answer C is incorrect because you were not contracted to provide additional
work—you should not do it, nor should you bill for it. Answers A, B, and C are
violations of Member Standards of Conduct B1.

Front 481

Randy is writing a book about Project Management and is
using case studies that reflect his experience in working for
several local companies who are named in the case studies. You
are a PMP editing his manuscript. What would you do?
❑ A. Remove specific names due to confidentiality issues, unless
Randy gets written permission.
❑ B. Get contact information and verify that the case studies are
accurate.
❑ C. Remove the case studies from the book.
❑ D. Approve the case studies if they are accurate.

Back 481

A
Answer A is correct. Due to confidentiality of assignments undertaken and
identities (B2), Randy would have to get permission to mention or use them.
Answers B and C are probably things an editor would do after permission is
granted. Answer D is incorrect because it would be the last resort.

Front 482

You are a new project manager for a telephone company. One
of your suppliers invites you to an all-expenses-paid golf weekend.
He states that your predecessor always went. It is just for
customers of the supplier. Should you accept?
❑ A. Yes. Other customers are going; therefore, there is no conflict
of interest.
❑ B. Yes. An event is not considered a gift.
❑ C. No. This is considered a gift that could provide unfair advantage
for the supplier.
❑ D. Yes. Your predecessor used to go.

Back 482

C
Answer C is correct. This type of gift could provide an unfair advantage to the
supplier. Answer A is incorrect because, even if other customers go, you still
have a responsibility not to. Answer B is incorrect because an event can be a
gift. Answer D is incorrect because your predecessor should not have gone
either.

Front 483

At a CRM convention, you are given tickets to a free dinner
by one of the software vendors. The ticket states that the dinner
is a courtesy, and that during it you will see a demo of the
latest version of their software. Should you go?
❑ A. No. This violates the appearance of impropriety.
❑ B. No. The dinner is a gift, and therefore should not be
accepted.
❑ C. No. You do not want to see the demo.
❑ D. Yes. This is a typical custom at conventions, and there is no
impropriety in attending the event.

Back 483

D
Answer D is correct and the best answer. Conventions are venues for sharing
information. Because the dinner is not specific to you individually, and you will
be seeing a demo, there is no ethics violation. Answer C might be true, but it is
not the best answer. Answers A and B are incorrect because there is no impropriety
in attending events such as this when attending a convention.

Front 484

As a PMP, Ed is taking several classes on Project Management
topics each year. His boss questions, “If you are already certified,
why are you taking additional classes?” How should Ed
answer?
❑ A. To get PDUs.
❑ B. I like to learn.
❑ C. The classes are covered by the training budget.
❑ D. As a PMI member, part of my professional behavior responsibilities
is to strive to enhance my professional capabilities.

Back 484

D
Answer D is correct. See A5 of the Member Standards of Conduct. Answers A,
B, and C might be true, but they are not the best answers.

Front 485

Ron is asked to provide an estimate of cost for a project. After
getting scope carefully defined, he provides an estimate that is
300% higher than he really expects the project to cost, just in
case. What technique is Ron using?
❑ A. Ron is not using good Project Management techniques. He
should provide the real estimate and then negotiate and discuss
risk and contingency.
❑ B. Ron is using contingency in his estimate.
❑ C. Ron is not using a bottom-up approach, but he should at least
provide an order of magnitude estimate.
❑ D. All of the above.

Back 485

D
Answer D is correct. Ron is actually violating B1 of the Member Standards of
Conduct. He is not accurately providing complete information in his estimates.
Ron is factoring in contingency by ballparking an additional 300%. Ron might
have used a bottom-up approach, but we don’t know. In any case, he should
provide a plus or minus % in his estimate.

Front 486

Ellen wants to get a contract badly. When she hears that
Havert Consulting is her competition, she says to the hiring
manager, “I heard that Havert is having financial difficulties,”
even though she really does not know their financial status.
Has Ellen crossed the line?
❑ A. Yes. Ellen has violated the member standard of not knowingly
engaging in an activity intended to cause harm.
❑ B. No. Ellen is merely suggesting there is a problem, and she is
trying to get the business for herself. The company has a
responsibility to look into the financials anyway.
❑ C. Yes. Ellen has violated the confidentiality of Havert
Consulting.
❑ D. Both A and C.

Back 486

A
Answer A is correct. By implying Havert is having financial difficulties, Ellen
has crossed the line and violated PMI member ethics. Answer B is not true.
Answers C and D are incorrect because Havert’s confidentiality has not been
violated.

Front 487

Gregg, a PMP, is developing a radio for an automotive supplier.
He knows if he uses a certain type of circuit, the radio could
catch fire in a low probability of cases in very rare circumstances.
He reviews his findings with several other team
members and management, as well as the risk management
department. Based on these reviews and for cost purposes, he
chooses that circuit. Has Gregg violated PMI ethics?
❑ A. There is insufficient information to answer the question.
❑ B. Yes. Gregg has violated the member responsibility to protect
the public from harm.
❑ C. No. Gregg has done due diligence and is conforming to professional
standards; therefore, he is not in violation of PMI
ethics.
❑ D. Yes. Even with the advice of others, Gregg is not absolved of
his responsibility to prevent the public from harm.

Back 487

C
Answer C is correct. Gregg has performed his work consistently with
Professional Standards C2, and therefore is not in violation of the ethics code.
This is a fine line because there was the potential to cause harm. However,
because he had the findings reviewed and the risk was considered negligible, he
is in compliance. Answer A is incorrect because there is adequate information.
Answer B is not possible because due diligence was done and the circuit was
approved. Answer D is incorrect because Gregg conformed to professional
standards.

Front 488

During a PMI ethics dispute, who has the only authority to
resolve and end an ethics matter?
❑ A. The individuals involved
❑ B. PMI
❑ C. The appropriate local legal system
❑ D. The attorneys involved in litigation

Back 488

B
Answer B is correct. According to the PMI member ethics case procedures
general provisions, only PMI has the authority to resolve and end an ethics
matter.

Front 489

Jeff is a PMI member who is the subject of an ethics complaint.
Does he need an attorney?
❑ A. Yes
❑ B. No

Back 489

B
Answer B is correct. The ethics policy is designed to operate without the assistance
of attorneys (general provisions 1, second paragraph).

Front 490

Jane is involved in a PMI ethics dispute, but decides to resign
from PMI prior to resolution. Does that resolve the issue?
❑ A. Yes
❑ B. No

Back 490

B
Answer B is correct. PMI reserves the right to continue a matter to a final
binding resolution (general provisions A9).

Front 491

Mike is submitting an ethics complaint to PMI. Mike must do
which of the following?
❑ A. Provide a detailed factual description of the allegations and
note the specific provisions of the Code of Ethics that were
violated.
❑ B. Sign a confidentiality agreement in order to protect the
privacy of the parties involved in the case.
❑ C. Notify the respondent within the time requirements specified
in the ethics procedures.
❑ D. Engage an attorney and communicate with the institute
through the PMI legal counsel.

Back 491

A
Answer A is correct. Answers B, C, and D are not requirements of submitting
an ethics complaint.

Front 492

Ellen receives notice of an ethics complaint against her. As a
PMP, she knows that the consequences of an ethics violation
include
❑ A. Private or public reprimand
❑ B. Suspension of membership
❑ C. Loss of PMI membership
❑ D. All of the above

Back 492

D
Answer D is correct. PMI can use these and several other disciplinary actions
for violations of the ethics code (D8 of the Member Code of Ethics).

Front 493

Jan is studying for the PMI exam and quizzing a friend: “The
definition of confidential information according to PMI is
_______.”
❑ A. Any sensitive information considered proprietary
❑ B. Any material marked “Confidential” by an organization
❑ C. Any material not explicitly in the public realm
❑ D. Any material considered confidential, sensitive, or proprietary,
either implicitly or explicitly that is not in the public realm

Back 493

D
Answer D is correct. Answers A, B, and C all have elements of the definition,
but not the complete definition. See the PMI Confidentiality Operations policy.

Front 494

Ricky happens on a file of potential new product releases left
at a copier at a convention. He works for the competitor. Can
Ricky divulge the information?
❑ A. We do not know whether Ricky is a PMI member or applicant.
Therefore, it is impossible to determine the answer.
❑ B. Yes. Ricky has no responsibility to the company that left out
the information where anyone could find it.
❑ C. No. Ricky should return the folder to the owner if he can
find him.
❑ D. Yes. However, Ricky should return the folder to the owner.

Back 494

A
Answer A is the best answer. This is a difficult question. PMI only governs
PMI members and applicants. Answer B could possibly be construed as correct
too, but because the question was not clear about his PMI membership status,
Answer A is the best choice. Answers C and D pose possible actions but, again,
his PMI status is in question, thus making Answer A the better answer here, as
well.

Front 495

Gregg is not sure whether he has a conflict of interest. He
looks up the definition on the PMI website. A conflict of
interest is defined as
❑ A. A transaction in which an individual is directly or indirectly a
beneficiary or party to the transaction
❑ B. A transaction in which an individual’s family members are
party to the transaction
❑ C. A transaction in which a company and an individual engage a
third party
❑ D. A transaction in which an individual and his family engage a
company for a particular service

Back 495

A
Answer A is correct. See the PMI Conflict of Interest policy. Answers B, C,
and D are all legitimate transactions.

Front 496

B.J. is a project manager working on a project for his company’s
annual meeting. B.J.’s sister owns the local conference center,
which is one of the locations on B.J.’s list for a company event.
Should B.J. consider his sister’s location?
❑ A. No. Conflict of interest includes family members.
❑ B. Yes. As long as B.J. has no financial interest in his sister’s business,
he can consider her location.
❑ C. Yes. B.J. can still consider his sister’s business as long as he
fully discloses his relationship, and the evaluation is done
fairly.
❑ D. Yes. A company’s annual meeting is not a strategic project;
therefore, this is not a conflict of interest.

Back 496

C
Answer C is correct. Although Answer A is correct, B.J. can still consider her
company as long as full disclosure and fair assessment is done. Answer B is
incorrect because B.J.’s financial position in his sister’s company is irrelevant.
Answer D is incorrect.

Front 497

Robert, a project manager on a human resources project, has
access to the employment records of Dave, who is applying for
a loan from Robert’s friend Jeff. Robert knows Dave is on probation.
Should Robert tell Jeff not to issue the loan?
❑ A. Yes. Robert has a responsibility to report accurate information
to Jeff.
❑ B. No. Robert is violating the confidentiality of private information.
❑ C. Yes. Because Jeff and Robert are friends, there is no issue.
❑ D. No. Robert should refer Jeff to the human resources individual
responsible for employment inquiries

Back 497

B
Answer B is correct. Answers A and C are incorrect because Robert has no
responsibility to Jeff, even though they are friends. Answer D is tempting
because that is what Robert should do if he receives an inquiry, but it is not the
best answer because the question does state that Jeff asked for the information.

Front 498

You work for BigTV, a privately held TV company that is
planning to purchase a privately held TV parts supplier. You
know Ed, who works at the supplier, and tell him a purchase is
being considered. Your boss finds out you’ve told Ed. Are you
in trouble?
❑ A. Of course! You have violated the confidentiality of the company
you work for.
❑ B. No. The purchase plans are public.
❑ C. No. Neither company is publicly held, so this is not insider
trading.
❑ D. It depends on how seriously your boss feels you have violated
the company’s confidentiality.

Back 498

A
Answer A is correct from a PMI perspective. Answer B is incorrect because the
question does not state whether the information is public. Answer C is incorrect
because confidentiality does not depend upon the public or private status
of a company. Answer D is not the best answer.

Front 499

Joan makes a decision to put off buying certain computer
hardware for her project until the second quarter, based on
feedback from her team. She has submitted her budget and is
now locked into the schedule. Joan now finds out that she does
indeed need the hardware in the first quarter. What should
she do?
❑ A. Blame her team and try to get the funding back.
❑ B. Do nothing and let her schedule be late.
❑ C. Admit the error and attempt to get the financing moved back.
❑ D. Juggle the project funding to get the hardware now.

Back 499

C
Answer C is correct and the best answer. Answer A is incorrect because even
though her team gave her input, Joan made the decision. Answers B and D are
not the best answers. Joan needs to accept responsibility for her decisions and
actions.

Front 500

Aaron is a tough manager and expects his staff to obey the
strictest interpretation of company policy, especially with
regard to time off. Aaron, however, comes in late and leaves
early. What type of behavior is Aaron displaying?
❑ A. Lack of integrity by not conforming to the same standards he
expects of others.
❑ B. Management prerogative.
❑ C. Flextime.
❑ D. Aaron is actually going to management meetings, but his staff
does not know.

Back 500

A
Answer A is the best answer. Answers B and C are incorrect and bad practices,
although they are often used as justification. Answer D might be true, but it is
not part of the question information.

Front 501

Jane is a PMP who is running a project at a rug manufacturer.
Jane works as an employee of a contracting company, but is
also able to send her expenses through the rug company. You
find out that Jane is expensing both her contracting company
and the rug company for the same expenses because the policies
do not prevent her from doing so. What should you do?
❑ A. Inform Jane that although she is expensing according to the
procedures, she is “double dipping,” which is illegal and
unethical.
❑ B. Document the transactions and report her to the management
of both companies.
❑ C. Do not get involved. If the policies enable her to do so, she is
doing nothing wrong.
❑ D. Start using the process yourself because it has been successful
for Jane.

Back 501

A
Answer A is the correct answer. Even though Jane is complying to the letter of
the policy, the intent is clearly not to allow for double reimbursement of
expenses. This is a violation of B1 of the ethics code.

Front 502

Ralph works hard on his project. He works late hours and
often takes work home. His three children are about to start
school tomorrow, and he realizes he has forgotten to buy them
some school supplies. Ralph raids the company supply cabinet
for three notebooks and six pens, and when he sees you on the
way out, he murmurs something about needing supplies for
work at home. Has Ralph violated the ethics code?
❑ A. No. Everyone on occasion walks off with a work pen. Ralph
works overtime and at home. It is legitimate for him to take
the supplies.
❑ B. Yes. Even for small things we might take for granted, taking
supplies for nonbusiness purposes is stealing.
❑ C. Yes. You should report him to the corporate authorities as
well as PMI.
❑ D. No. Ralph stated clearly that he was taking the supplies for
work. Whether he actually does or not, you will never know.

Back 502

A
Answer A is correct. Answer B is incorrect because, although this behavior is
often typical, and considered no big deal, it costs corporations millions. Answer
C is tempting, but not realistic. To report him to PMI, you would have to have
factual documentation. Answer D is tempting because you don’t know whether
he really took them for himself, but the question states otherwise.

Front 503

In an abusive, autocratic corporate environment, workers will
often get even in passive but destructive ways, even though in
general they are persons of high ethics. This phenomenon is
known as
❑ A. The Boomerang effect
❑ B. A retaliatory response
❑ C. Theory X
❑ D. Theory Y

Back 503

B
Answer B is correct. When workers feel undervalued or their perception of the
organization’s requirements is out of sync with their personal values, they can
engage in retaliatory behavior such as stealing, lying, and cheating. Answer A is
incorrect and is a term associated with grown children returning to live with
their parents. Answers C and D are incorrect because Theories X and Y are
about types of organizational behaviors.

Front 504

John, a PMP, is studying ethics. He comes across the term
ethical congruence and finds that it is defined as
❑ A. When two ethical behaviors collide
❑ B. An organization’s capability to effectively develop a code of
ethics
❑ C. The alignment of an organization’s stated values, the decisions
of its leaders, the behaviors that are encouraged by its
systems, and the values of its employees
❑ D. The prioritization of ethics

Back 504

C
Answer C is correct. Answer A is incorrect because when two sets of ethics
collide, you have incongruence. Answer B is incorrect because developing a
code of ethics is simply a starting point for developing organizational ethics.
Answer D is incorrect for the same reason

Front 505

Brenda uses the Internet frequently for her job researching
different aspects of Project Management and for publishing a
newsletter for her organization. As she surfs the Web, she happens
upon other sites that interest her personally and notes
them for use at home. Her corporate Internet usage policy
states that the Internet is to be used for business purposes
only. Has Brenda acted accordingly?
❑ A. Yes. Brenda may come across the sites during legitimate
searches. She is not spending her time reviewing them, but
noting the sites for later use.
❑ B. The PMI Code of Ethics is not intended to address details
such as this.
❑ C. No. If she is searching properly, she would not come across
sites of interest to her personally.
❑ D. No. By even looking at the other sites, she is in violation of
corporate policy, and therefore not acting according to PMI
ethics standards

Back 505

A
Answer A is correct. Answer B is incorrect because behaving honestly and
following organizational policies is part of the PMI Code of Ethics. Answer C
cannot be determined because we do not know what sites interest her personally.
Answer D is not correct because we know she is simply noting them, and not
using them during work hours.

Front 506

Carol is a project manager for a construction project, and is
sending a couple of workers to get supplies for a part of the
construction. She also needs to have the mulch for her home
picked up and delivered, and instructs them to do that on the
way to getting the supplies. Is this a violation of the PMI Code
of Ethics?
❑ A. No. Carol is simply making use of the synergies available
to her.
❑ B. No. Carol’s house is on the way, so there is no conflict of
interest.
❑ C. Yes. Carol is engaging in the wrongful use of resources, and is
behaving in a dishonest manner.
❑ D. No. The workers work for Carol, so there is no conflict.

Back 506

C
Answer C is correct. Answers A, B, and D are all incorrect because Carol is
using a project resource (worker time) for her personal gain.

Front 507

Dwayne is currently working on a major software development
project involving a new technology and has been asked by a
software development convention to speak. He will be provided
with expenses and an honorarium. Dwayne eagerly accepts.
You are a PMP working on his project. How would you
advise him?
❑ A. Indicate that you think accepting an honorarium is a conflict
of interest, and that he should not accept the request.
❑ B. Congratulate him. It is an honor to be asked to speak at a
convention.
❑ C. Tell him he may speak at the convention as long as he takes
no fee or expense reimbursement.
❑ D. Gather the information you need to report him as a violator
of the PMI Code of Ethics.

Back 507

B
Answer B is correct. Dwayne has no conflict of interest as long as he is not
speaking for a specific supplier. Honorariums and expenses are a common
incentive for speakers. Answer A is incorrect because there is no conflict of
interest. Answer C is also incorrect because accepting an honorarium and
expenses is neither illegal nor unethical. Answer D is incorrect for the same
reasons.

Front 508

Lawrence is a PMP and researcher in the marketing field. He
is working on a project and keeping meticulous records of the
questions asked, responses, and individual respondent information,
and is compiling the information to sell in aggregate
about consumer behavior in grocery stores with respect to
“cherry picking.” You are reviewing his research and are concerned
that he is keeping individual respondent information.
What should you do?
❑ A. Nothing. Lawrence is keeping the records appropriately,
preparing honest research, and protecting the privacy of the
individuals involved by aggregating the data.
❑ B. Approach Lawrence and indicate you feel he is violating the
privacy of the individuals in question.
❑ C. Gather the evidence of the privacy violations and prepare to
report them to PMI.
❑ D. Do nothing. A privacy violation, although not preferred, is
not a violation of the PMI Member Code of Ethics.

Back 508

B
Answer B is correct. An ordinal scale is rank-ordered values. Answer A is
incorrect because a probability scale is between 0 and 1. Answer C is incorrect
because a cardinal scale assigns values to impacts. Answer D is incorrect
because linear and nonlinear values are used in cardinal scales.

Front 509

Al is attempting to perform a risk assessment on his project. As
a seasoned project manager, he knows assessing risk probability
is difficult because
❑ A. Probability assessment is a mathematical process that requires
a mathematician.
❑ B. Data precision is unknown.
❑ C. At the beginning of a project, the risk is higher.
❑ D. It often requires expert judgment, and is often done without
the benefit of historical information.

Back 509

A
Answer A is correct. By aggregating the data, Lawrence is not disclosing personal
information. Further, keeping the source data records of the research is
good practice and encouraged. Answer B is incorrect. You might do it and find
out you are wrong. Answer C is incorrect because Lawrence is not violating the
privacy concerns of the individuals. Answer D is incorrect because privacy is of
concern to PMI (Standards of Ethics B2).

Front 510

Mike has a friend from church, Jack, who owns a paper supply
company. Jack’s company is on the vendor supply list for one
of Mike’s projects. Does Mike have a conflict of interest?
❑ A. Yes. Depending on the extent of the relationship between
Mike and Jack, there could be a conflict of interest.
❑ B. Yes. Because Mike and Jack are friends, Mike has a conflict of
interest he needs to disclose.
❑ C. No. Mike has no financial interest in Jack’s company, nor
does any member of Mike’s family.
❑ D. No. As long as Mike does not choose Jack’s company, there is
no issue.

Back 510

C
Answer C is correct. Answer A is incorrect because the friendship does not
create a conflict of interest. There might be an appearance of impropriety
depending on the depth of the relationship between Mike and Jack, but not a
conflict of interest. This could be a gray area if the relationship was very
strong. Answer B is incorrect because friendship does not pose a conflict of
interest. Answer D is incorrect for the same reason.

Front 511

Gordon is using part of a presentation from Jeff in a speech he
is doing for a local PMI chapter. Jeff has given permission.
During his speech, Gordon does not attribute the information
other than to mention that others had contributed and are listed
at the end. At the end of the presentation, he recognizes
Jeff’s contribution in small print. Has Gordon violated Jeff’s
intellectual property rights?
❑ A. No. However, Gordon should have gotten written permission
from Jeff, as well as made the attribution more prominent.
❑ B. Yes. Attribution should be bold and clear. Gordon should be
sanctioned.
❑ C. No. Gordon attributed the information to Jeff. Even if it was
in small print, it still counts.
❑ D. Yes. Gordon did not adequately obtain permission because it
should be in writing.

Back 511

C
Answer C is correct. Gordon has properly given Jeff credit for his work.
Answer A is incorrect because verbal permission is sufficient. Answer B is incorrect
because the font size of the attribution is not defined by PMI. Answer D is
incorrect because permissions do not have to be in writing.

Front 512

Peter has worked as a project manager on a large and complex
systems security project for two years, and is now advertising
himself as an expert in security projects. Is he being truthful?
❑ A. No. Without the CISSP certification, Peter cannot claim
expert status and is in violation of the PMI Code of Ethics in
truthful advertising.
❑ B. Maybe. We do not have enough information about Peter’s
qualifications to determine.
❑ C. Yes. Two years of experience on a complex project can qualify
an individual as an expert. Peter is advertising truthfully.
❑ D. Yes. In Peter’s mind, he is being truthful; therefore, there is
no violation.

Back 512

C
Answer C is correct. Peter clearly has experience in systems security, or he
would not have been running a project for two years in the field. The amount
of information learned in that two years could indeed have made him an expert.
Therefore, Peter is fully within his rights to advertise as an expert. Answer A is
incorrect because the CISSP certification is an indication of expertise, but not
necessarily the only qualification for it. Answer B is incorrect because we do
have adequate information. Answer D is incorrect because what Peter thinks is
immaterial to the issue.

Front 513

Nick is a PMP, and in his first year of certification, he has
written several books and attended three 40-hour classes. He
has ample PDUs to requalify in three years. Therefore, Nick
is not planning on any training for the next two years, and is
focusing on his practice. Is Nick failing to strive to enhance his
professional capabilities?
❑ A. Yes. By not taking classes or improving himself for two years,
Nick is actually violating the Member Standards of Conduct.
❑ B. No. Working on his practice is still a form of learning.
❑ C. Yes. Nick should be sanctioned for failure to take classes.
❑ D. No. Nick has met the requirements of PMI for professional
development for his certification cycle.

Back 513

D
Answer D is correct. Just because Nick doesn’t take classes for two years
doesn’t mean he hasn’t put the effort into enhancing his professional capabilities.
Therefore, Answer A is incorrect. Answer B is true, but not the best
answer. Answer C is incorrect because Nick is meeting PMI requirements.

Front 514

AAA Lock Company is hiring Charlie’s company, PMP
Consultants, and specifically Charlie, as a contract project
manager to run a project to improve its lock manufacturing
process. The project is expected to be in the middle of execution
during August. Charlie takes the contract, knowing that
in August he will be in Hawaii on a long-planned family vacation,
but he does not tell this to AAA Lock Company in the
negotiation. Because Charlie owns PMP Consultants, he plans
to have another person fill in for him during that time. In
August, AAA Lock Company files a complaint with PMI.
What do you think will happen?
❑ A. Charlie will most likely be disciplined by PMI because he violated
section B1 of Member Standards of Conduct by not
fully disclosing how he planned to execute his services.
❑ B. If Charlie’s contract does not stipulate that he must be the
project manager, there will be no finding.
❑ C. Charlie’s company agreed to provide services, not Charlie
himself, so no disciplinary action will be taken.
❑ D. No disciplinary action will take place because at project initiation,
there is no way to guarantee that project execution will
really take place in August.

Back 514

A
Answer A is correct. Charlie did not fully disclose the nature of how his
services would be performed. This is truly the difference between legally correct
and ethically correct. Answer B is incorrect because, although Charlie has
done nothing wrong legally, he has ethically. Answer C is incorrect because
Charlie clearly implied he would be the project manager. Answer D is incorrect
because the timing of the project is not at issue, just the fact that Charlie substituted
someone else without telling AAA Lock Company.

Front 515

Kyle wants the inside track on Xtreme Software. Steve, a PMP
who works for Xtreme, has easy access to the public financial
statements. Kyle asks Steve for financial information, and
Steve forwards him parts of the financial statements from the
Web. Has Steve provided insider information?
❑ A. Yes. Steve has provided Kyle financial statements; therefore,
he has violated section B3 of the Member Standards of
Conduct.
❑ B. No. Steve has forwarded information from the website; therefore,
it is not insider information.
❑ C. No. The financial statements are public information, and
Steve has forwarded publicly available data.
❑ D. Yes. Steve has clearly violated the confidentiality of information
for his company.

Back 515

C
Answer C is correct. Answers A and D are incorrect because the information
was public; therefore, Kyle could have accessed it himself. Answer B is tricky
because we do not know whether Steve got the information from an intranet or
extranet website. Therefore, it is not the best answer.

Front 516

Jennifer, a new PMP, overhears her co-worker, Isaac, talking to
Ellen, another co-worker. Isaac brags about a consulting fee he
has earned from one of the company’s suppliers, just for recommending
the supplier as a source for their department.
Isaac is going to buy a new TV with the money. Isaac is not a
PMP, so Jennifer knows PMI can’t do anything in this situation.
What should Jennifer do?
❑ A. Determine whether there is a company ethics policy and, if
so, have a conversation with Isaac about how the consulting
fee is really a kick-back.
❑ B. Talk to Isaac’s supervisor and advise her of the overheard conversation.
❑ C. Contact PMI anyway because they have ethics advisors.
❑ D. Report Isaac to the company ethics board.

Back 516

A
Answer A is correct. If there is no ethics policy, Jennifer could still confront
Isaac and try to educate him on conflicts of interest and kickbacks. Answer B is
incorrect because Jennifer should confirm the facts with Isaac first. Answer C is
incorrect because PMI has no advisory personnel for this type of issue. Answer
D is incorrect for the same reason as Answer B.

Front 517

Don and Frank are both PMPs working for the same company.
Don is reviewing Frank’s work and does not feel he has
done an adequate job. Should Don report Frank to PMI for
failure to conform to professional standards?
❑ A. Yes. Frank is violating section C2 of the Member Standards of
Conduct.
❑ B. Yes. Frank is violating section B1 of the Complete and
Accurate Information section of the Member Standards of
Conduct.
❑ C. No. Don should mind his own business.
❑ D. No. The conformance to professional standards is applied to
preventing the public from harm, as in a construction project
or medical environment

Back 517

D
Answer D is correct. Answers A and B are incorrect because they are citing the
wrong section of the Member Standards of Conduct. Answer C is incorrect
because if Don did see inadequacies in Frank’s work, he should work with
Frank to help Frank to improve.

Front 518

Henry has reported a fellow PMI member for an ethics violation.
He has provided the necessary information, and wants to
be done with it. PMI has asked him for more information and
to participate in the hearing. Henry refuses. Can Henry be
disciplined by PMI?
❑ A. No. Henry is the complainant; therefore, after he has completed
the complaint, his responsibilities are finished.
❑ B. Yes. Henry is violating the Member Standards of Conduct C3
to cooperate with the institute concerning review of ethics
violations.
❑ C. No. However, the ethics complaint will be dropped.
❑ D. Yes. Henry is violating his fellow PMI member’s privacy, and
therefore can be disciplined under section B2.

Back 518

B
Answer B is correct. A complainant must cooperate with PMI requests during
an ethics review. Answer A is incorrect for the same reason. Answer C is incorrect
because PMI can pursue an ethics violation review to completion. Answer
D is incorrect because Henry is not violating anyone’s privacy.

Front 519

Carl is filling out a professional development units (PDU)
form online, and cannot remember the event code. He completes
the form, providing all the information he has, except
for the event code. Is Carl violating the Member Ethics Code
to provide accurate and complete information?
❑ A. No. Carl gave as complete a set of information as he had.
❑ B. No. Carl is not misrepresenting the information in any way.
❑ C. No. Intent needs to be considered when looking at an ethics
violation.
❑ D. All of the above.

Back 519

D
Answer D is correct. The member standard of conduct is not meant to be misused.
A test of reasonableness and a review of intent with any ethics matter is
crucial.

Front 520

Larry likes to have a martini at lunch. Because he is selfemployed,
he does so at his leisure. As a PMP, Larry is working
as a contractor for a company that prohibits drinking
during working hours. Larry still has his martini at lunch.
How would you characterize Larry’s behavior?
❑ A. Larry has a drinking problem.
❑ B. As a self-employed individual, Larry may drink at lunch.
❑ C. Larry is violating the Member Standards of Conduct C1
because he is not abiding by the rules of the community in
which he is working.
❑ D. Larry is violating the Member Standards of Conduct C2, protecting
the public from harm.

Back 520

C
Answer C is correct and hinges on the definition of a community. A business
organization can be considered a community. Answer A may or may not be
true—we do not know, so therefore it is incorrect. Answer B is incorrect
because the organization prohibits it. Answer D is incorrect because we do not
know the nature of Larry’s job or whether he is putting the public in jeopardy.

Front 521

Nathan, a PMP, is working on a project with Trevor without a
written agreement. Trevor has put in a lot of hours since his
last payment, and suddenly and unexpectedly dies of a heart
attack. Trevor’s wife comes to Nathan to get the last check.
Nathan refuses, citing he has no legal obligation, because
there was no contract. How would you characterize Nathan’s
behavior?
❑ A. Unethical and subject to discipline by PMI via C1, stating
that Nathan must meet all legal and ethical obligations.
❑ B. Although not nice, Nathan is perfectly within his rights to
refuse payment to Trevor’s wife.
❑ C. Nathan is a bad, bad person and will get what is coming to
him eventually.
❑ D. Nathan is a smart business person. Why pay, when he doesn’t
have to?

Back 521

A
Answer A is correct. PMI requires that members honor all legal and ethical
obligations. Answer B is correct legally, but not ethically. Answer C might be
true, but does not answer the ethical question. Answer D is not true because a
truly savvy business person knows that ethical behavior pays off far better in the
long run.