Chapter 7. Project Closing


Chapter 7. Project Closing

    Exam Prep Questions

    Answers and Explanations


Exam Prep Questions

1:

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

2:

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

3:

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

4:

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

5:

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

6:

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

7:

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.

8:

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

9:

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

10:

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

11:

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

12:

After leading a two-year project at The Project Management Company, David is ready to complete his project and get sign-off 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.

13:

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

14:

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

15:

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.

16:

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

17:

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.

18:

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.

19:

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

20:

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.

21:

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.

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

23:

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

24:

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

25:

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

26:

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

27:

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.

28:

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

29:

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

30:

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

31:

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

32:

EV AC is equal to what?

  • A. SPI

  • B. CPI

  • C. SV

  • D. CV

33:

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

34:

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

35:

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

36:

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

37:

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

38:

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.

39:

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

40:

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

41:

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

42:

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

43:

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

44:

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

45:

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.

46:

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

47:

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

48:

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

49:

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

50:

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

51:

The five Project Management process groups include all of the following except

  • A. Startup

  • B. Planning

  • C. Executing

  • D. Closing

52:

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

53:

Contract closeout falls in which of the following Project Management knowledge areas?

  • A. Communications management

  • B. Procurement management

  • C. Contract management

  • D. Vendor management

54:

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

55:

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

56:

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

57:

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

58:

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

59:

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)

60:

Which of the following is an output of administrative closure?

  • A. Project closure

  • B. Project reports

  • C. Project presentations

  • D. Product documentation

61:

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

62:

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.

63:

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

64:

What formula can you use to determine the cost performance index (CPI)?

  • A. AC/EV

  • B. EV AC

  • C. EV/AC

  • D. AC EV

65:

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