Chapter 12. Practice Exam 2

Question 1

When working on a project in a country outside of your own, it is important that you not be viewed as ethnocentric by other team members and individuals around you. What is meant by ethnocentric?

  • A. Being homesick

  • B. Stereotyping others based on what you've heard about their culture

  • C. Having the opinion that one's own culture is inherently natural and superior

  • D. Believing that individuals from your country know how to better manage a project

Question 2

As the project manager for a marketing and sales extranet application tool project, you have contracted with a Web development firm to reengineer the existing extranet application in order to be compliant with the standards of the new corporate Web hosting center. The contract is fixed price with incentives for meeting targeted milestone dates. The payment schedule and accompanying incentives are as follows:







Signed contract







+5% if 5 days early


First iteration



+5% if 5 days early


Second iteration



+ 5% if 1 week early; +10% if 2 weeks early


Third iteration



+ 5% if 1 week early; +10% if 2 weeks early


User acceptance



At this point, the contractor has just delivered the second iteration 8 days early and requests the incentive bonus of 5%. You decide to not authorize the incentive bonus because the contractor had been 3 days late on the delivery of the first iteration and there were numerous performance issues with that iteration. The contractor's project manager threatens to halt application development until the milestone and incentive bonus payments are authorized. Which project document would be the most beneficial in the resolution of this dispute?

  • A. Procurement management plan

  • B. Solicitation plan

  • C. Signed contract (statement of work)

  • D. Scope statement

Question 3

You've completed a deliverable for a project and have gained acceptance and signoff by the customer. The project has now been closed for more than 30 days. When reviewing the deliverable with another project manager who is preparing for a similar project, you discover a flaw in the results communicated in the deliverable that may not depict possible safety issues in the future. The risk involved with these safety issues is very small. What should you do?

  • A. Because the project has been closed for more than 30 days, there is no need to bring these safety issues to the attention of the customer.

  • B. Because the risk involved with these safety issues is very small, there is no need to bring them to the attention of the customer.

  • C. Communicate your findings to your management, both verbally and in writing.

  • D. Immediately call the customer and let them know your concerns.

Question 4

Which of the following does not describe characteristics of a project plan ?

  • A. Formal and approved

  • B. A document or collection of documents that change over time

  • C. Only used by the project manager to execute the project

  • D. Includes methods for identifying milestones

Question 5

Which of the following statements is not true during project execution?

  • A. The majority of the budget is spent.

  • B. The product of the project is actually produced.

  • C. Project performance against the plan is monitored.

  • D. Decisions on when and with whom to communicate are made.

Question 6

As part of your project you implement a control system. What is a control system concerned with?

  • A. Preventing change from affecting project execution

  • B. Influencing factors that cause change, determining a change has occurred, and managing the implementation of the change

  • C. Ensuring the change-control board is informed

  • D. Ensuring the quality of the work products meet targeted standards

Question 7

Which of the following best describes progressive elaboration?

  • A. The process for better defining project scope

  • B. The step-by-step process by which project tasks are identified

  • C. A process for better defining project scope and product scope

  • D. A process that should not affect the project scope but that better defines the project's product characteristics over time

Question 8

What is the main difference between a program manager and a project manager?

  • A. A program manager is part of a PMO.

  • B. A project manager may direct one or more program managers.

  • C. A program manager coordinates and manages a group of projects to obtain benefits not available by managing them individually.

  • D. There are no major differences. The terms are interchangeable.

Question 9

You want to make certain you are not at a disadvantage in an upcoming negotiation session. What should you do?

  • A. Actively listen to all parties involved.

  • B. Speak louder than everyone else.

  • C. Make sure there are more people in the negotiation with your opinion than there are with an opposing opinion.

  • D. Sit at the head of the table.

Question 10

How often should a project plan be monitored?

  • A. Weekly.

  • B. Monthly.

  • C. Never. Once the plan is done, the team knows what to do and can do it.

  • D. Continuously.

Question 11

As part of your planning for a new chemical-processing plant construction project you have won, you identify the stakeholders involved with your project. Which of the following statements best describes who stakeholders are?

  • A. The company paying for the product or service.

  • B. Stakeholders exert influence over the project and its results.

  • C. Stakeholders include anyone whose interests are affected by the project.

  • D. Stakeholders are always external to the project team.

Question 12

A culture's approach to doing business is to initially spend a great deal of time getting to know the personal background of individuals through small talk. Questions are asked about such topics as family, education, and personal interests. This type of approach can be referred to as which of the following?

  • A. Lacking scope

  • B. High context

  • C. Low context

  • D. Overly friendly

Question 13

Project managers need solid communication and negotiation skills primarily because ________________________________________.

  • A. they often lead teams with no direct control over the individual team members

  • B. they must give briefings to senior management

  • C. procuring resources from vendors requires these skills

  • D. they must be able to effectively share their technical expertise

Question 14

What is the key difference between quality planning and quality assurance?

  • A. None. Prior to ISO 9000, they were considered the same thing.

  • B. Only quality planning involves the use of cost benefit analysis, benchmarking, flowcharting, and design of experiments.

  • C. Only quality assurance must be performed by the organization's QA department.

  • D. Quality planning focuses on identifying which quality standards to use, whereas quality assurance focuses on planned and systematic activities to ensure those standards.

Question 15

The ability of stakeholders to influence the final characteristics of a project's product is ___________________________________________.

  • A. a major contributor to budget overruns

  • B. highest at the end of a project when stakeholders are engaged during product approvals

  • C. highest at the start of a project when the project and product requirements are defined

  • D. a constant issue for project managers

Question 16

If Project X has a Net Present Value (NPV) of $176K and Project Y has a NPV of $216K, what is the opportunity cost if Project X is selected?

  • A. $176K

  • B. $40K

  • C. $216K

  • D. $40K

Question 17

When interacting with individuals from foreign countries in both personal and professional situations, people unfortunately sometimes judge others based on traits they assume everyone from that country has. While working on a project team in a foreign country, what should you do if you feel the team has categorized you based on your culture?

  • A. Use this to your advantage if possible.

  • B. Behave in a manner that contradicts their assumption about you.

  • C. Communicate verbally and in writing that you do not hold the cultural traits they are assuming you to have.

  • D. Ignore the situation.

Question 18

Which of the following is not needed in order to develop a project estimate?

  • A. WBS

  • B. Risks

  • C. Change-control procedure

  • D. Resource levels

Question 19

If you have a colleague ask you to describe the concept of Kaizen as related to project management, which of the following answers would be the best one to give?

  • A. It's a quality control technique.

  • B. It's a solicitation philosophy.

  • C. It's a quality assurance technique.

  • D. It's a quality planning organization.

Question 20

Which of the following statements regarding power types is true?

  • A. Legitimate power is based on an individual's organizational authority or position.

  • B. Referential power is based on the number of references on your resume.

  • C. With referential power, a project manager can enforce the execution of certain project tasks.

  • D. Legitimate power is based on fear.

Question 21

Which of the following statements is not true about a project phase?

  • A. A project phase is marked by the completion of one or more deliverables.

  • B. A project phase is marked by phase-end reviews designed to determine whether a project should continue.

  • C. Collectively, the sequential set of project phases are known as the project lifecycle.

  • D. A project phase is synonymous with a project management process group.

Question 22

Fast tracking can be best described as which of the following?

  • A. The quickest way to achieve project manager status

  • B. The practice of overlapping project activities on the critical path to speed a project's completion

  • C. An accelerated method of monitoring project performance

  • D. The practice of adding additional resources to critical path activities to compress the duration of the project

Question 23

Double-declining balance is a form of _____________.

  • A. investment analysis

  • B. straight-line depreciation

  • C. constrained optimization

  • D. acceleration depreciation

Question 24

A status review meeting __________________.

  • A. is ad hoc and only needed when problems arise

  • B. is regularly scheduled and used to exchange information about the project

  • C. should be avoided so that team resources can be spent on the project

  • D. is part of executing the project plan

Question 25

Which statement best describes a PMIS?

  • A. A PMI certification that is specifically designed for project management focusing solely on the Information Systems profession.

  • B. A repository used for project information so that future projects can learn from this information. It's used in the execution phase of a project for reference purposes.

  • C. A required log for timekeeping.

  • D. The tools and techniques used to gather, integrate, and disseminate the process outputs of project management.

Question 26

Business operations differ from projects because operations are not ________.

  • A. performed by people

  • B. constrained by limited resources

  • C. planned, executed, and controlled

  • D. temporary and unique

Question 27

Using the following earned value metrics, calculate the SV, CV, CPI and EAC for this project:

PV=$125,000, EV=$75,000, AC=$100,000, BAC=$225,000

  • A. SV=$50,000, CV=$25,000, CPI=.75, EAC=$300,000

  • B. SV= $50,000, CV= $25,000, CPI=.75, EAC=$300,000

  • C. SV= $50,000, CV=$25,000, CPI=1.25, EAC=$180,000

  • D. SV=$25,000, CV=$50,000, CPI=.75, EAC=$168,750

Question 28

Which of the following is not an example of an item that causes a change request?

  • A. The programmer decides there is a neat feature he can add to the product.

  • B. An error in the project or product design is discovered.

  • C. The government has changed a regulation that impacts the project.

  • D. An identified risk has occurred and a contingency plan must be implemented.

Question 29

All the following statements about a WBS are true except which one?

  • A. It provides a framework for organizing and ordering a project's activities.

  • B. It breaks down a project into successively greater detail by level and can be similar in appearance to an organizational chart.

  • C. It's one of the methods available to build a project schedule.

  • D. It's a key project-planning tool.

Question 30

Which project-selection technique utilizes a constrained optimization approach?

  • A. Murder boards

  • B. Cost-benefit analysis

  • C. Linear programming

  • D. Scoring models

Question 31

Which of the following statements best describes a weighting system?

  • A. It's a tool used to evaluate vendors based on a value assigned to each criteria.

  • B. It establishes minimum performance requirements.

  • C. It judges the size and volume of the work to be accomplished.

  • D. It's not a recommended technique because it's subjective.

Question 32

Where is the best place to go to find out when individual people resources will be needed for the project?

  • A. The roles and responsibilities matrix

  • B. The project schedule

  • C. The staffing management plan

  • D. The communications plan

Question 33

A change-control system does not have which of the following?

  • A. Paperwork

  • B. Tracking mechanisms

  • C. Approval requirements

  • D. Referential authority

Question 34

Schedule control requires which of the following?

  • A. Continual meetings to update tasks and monitor personnel hours to ensure that all workers are sufficiently busy

  • B. Measuring and assessment of the magnitude of variation to a schedule to determine whether corrective action is needed

  • C. Re-baselining

  • D. A project scheduling system with a tightly integrated time-reporting capability

Question 35

Rework is the result of ________________.

  • A. poor planning

  • B. a quality control finding

  • C. untrained project resources

  • D. a quality improvement process

Question 36

Risk monitoring and control _______________.

  • A. only need to take place during the initial phases of a project

  • B. detect new risks as the project matures

  • C. keep track of identified risks, monitor residual risks, identify new risks, and ensure the effectiveness of risk plans at reducing risk to the project

  • D. D. are part of the PMIS and are the most neglected risk management processes

Question 37

The characteristics of a project lifecycle include all the following except which one?

  • A. A defined beginning and ending

  • B. A phase to transition the project to ongoing operations

  • C. Deliverable approvals

  • D. High risk

Question 38

What does Earned Value Management consist of?

  • A. Monitoring project work results for conformance to requirements

  • B. Measuring project performance by relating planned value, earned value, and actual costs

  • C. Determining the amount of payment to a contractor

  • D. Monitoring planned schedule and costs against actual schedule and costs

Question 39

Schedule variance is _____________________.

  • A. the difference between how much the project was expected to cost and how much it is actually costing

  • B. not an issue for project managers because schedules do typically vary

  • C. the difference between the amount of time a task is scheduled to take and the actual amount of time it takes

  • D. considered a major problem by PMI

Question 40

You are meeting with a business that has never had a professional project manager work with it before. The president asks you what's the best environment for your team to work in. She is concerned about giving you the optimal environment to succeed with the project. What do you tell her in response to her question?

  • 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

Question 41

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

Question 42

The key purpose of distributing project information is ____________________.

  • 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

Question 43

A scope change is __________________________.

  • A. a request by a stakeholder to change the project schedule

  • B. any modification to the agreed-upon scope, as defined by the WBS

  • C. necessary for any change request

  • D. a change in the level of involvement of the project manager

Question 44

The Work Breakdown Structure is a central input to which of the following?

  • A. Project schedule management

  • B. Scope change control, because it defines the baseline tasks of the project

  • C. Project payments to vendors

  • D. Project initiation

Question 45

The WBS can be used to ______________________.

  • A. show calendar dates for each task

  • B. show the business need for the project

  • C. communicate with the customer

  • D. show the dependencies between work packages

Question 46

Your project is about to get underway. You perform a solicitation at the start. Which of the following best describes what you are doing in the solicitation?

  • A. Gathering requirements for a product purchase

  • B. Determining what vendors to buy from

  • C. Letting vendors know you have a need

  • D. Negotiating the pricing

Question 47

A contract between buyer and seller is created at what point in the procurement process?

  • A. In 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

Question 48

Scope verification consists of __________________.

  • A. ensuring the correctness of the work results

  • B. ensuring formal acceptance of the work results

  • C. a verbal acceptance from a project sponsor

  • D. verification that all the project's teams have signed off on their respective duties

Question 49

A good work authorization system is ______________.

  • A. mandatory and includes all tasks

  • B. informal

  • C. intended to prevent projects from spending money unnecessarily

  • D. designed to balance the value of the control provided against the cost of that control

Question 50

All of the following statements about project plan execution are true except which of the following?

  • A. Tasks are completed

  • B. Change requests are generated based on new information

  • C. Information for project reporting regarding costs and quality is gathered

  • D. Team members are trained

PMP Exam Cram 2. Project Management Professional
PMP Exam Cram 2. Project Management Professional
Year: 2003
Pages: 169 © 2008-2017.
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