Questions from Chapter Sixteen


1.

In a standard contract, ________ are bound.

A.

Buyer and seller

B.

Project manager and sponsor

C.

Seller and sponsor

D.

Buyer and project manager


2.

The seller agrees to furnish products/services, and the buyer agrees to provide ________.

A.

Time

B.

Effort

C.

Consideration

D.

Facilities


3.

For the examination, procurement is discussed using the ________ relationship.

A.

Technical

B.

Buyer/seller

C.

Vendor/seller

D.

Purchasing


4.

In PMBOK, the buyer is ________ to the project team, and the seller is ________ to the project team.

A.

Assigned, allocated

B.

Important, secondary

C.

Related, outside

D.

Internal, external


5.

Market conditions are a part of ________.

A.

Organizational process assets

B.

Project management concerns

C.

Enterprise environmental factors

D.

General management concerns


6.

Formal or informal policies that pertain to procurement are part of the ________.

A.

Organizational process assets

B.

Project management concerns

C.

Enterprise environmental factors

D.

General management concerns


7.

Needed delivery dates and availability of resources can be found in the detail of the ________.

A.

WBS

B.

SOW

C.

Project Scope Statement

D.

Project Charter


8.

A Risk Register is a detailed part of the ________.

A.

Project Scope Statement

B.

Project management plan

C.

Project scheduling plan

D.

Project Charter


9.

When doing make-or-buy analysis, you should make sure that both ________ and ________ costs are included so that the comparisons are equal.

A.

Tactical, strategic

B.

Management, project

C.

Delayed, sunk

D.

Direct, indirect


10.

Technical judgments made to assess inputs and outputs of the planning of purchases and acquisition are an example of using ________.

A.

Expert judgment

B.

External assets

C.

Internal assets

D.

Computers


11.

There are three general types of contracts: cost reimbursable, time and materials, and ______________?

A.

Cost required

B.

Fixed price

C.

Simple cost

D.

Reimbursed time


12.

Which type of contract has the highest risk for the buyer?

A.

Fixed price

B.

Reimbursed time

C.

Time and materials

D.

Cost plus


13.

In the cost plus contract with the initials CPFF, the FF stands for ________.

A.

Formula foundation

B.

Free fixed

C.

Founded fixed

D.

Fixed fee


14.

Which type of contract has the highest risk for the seller?

A.

Fixed price

B.

Reimbursed time

C.

Time and materials

D.

Cost plus


15.

The type of contract where the buyer and seller share in the savings is ________.

A.

Fixed Price

B.

Cost reimbursable with incentive fee

C.

Cost reimbursable with fixed fee

D.

Time and materials


16.

Which type of contract uses a percentage of cost as a part of the agreed upon contract?

A.

T&M

B.

CPFF

C.

CPIF

D.

CPPC


17.

A buyer negotiates a fixed-price incentive contract with the seller. The target cost is $200,000, the target profit is $35,000, and the target price is $250,000. The buyer negotiates a ceiling price of $280,000 and a share ratio of 70/30. If the contract is completed with actual costs of $180,000, how much profit will the buyer pay the seller?

A.

$49,000

B.

$41,000

C.

$38,000

D.

$29,000


18.

Definition of contract types to be used, how to handle lead times for procurement, and metrics used to manage contracts are all found in the ________.

A.

SOW

B.

Procurement management plan

C.

WBS

D.

Scope Statement


19.

The document that gives detail to prospective sellers concerning item or items to be purchased is the ________.

A.

SOW

B.

Charter

C.

WBS

D.

CSOW


20.

The document that contains information such as identified risks and risk owners is called a ________.

A.

Risk Register

B.

SOW

C.

WBS

D.

Risk locator


21.

The evaluation criteria are determined by the ________.

A.

Seller

B.

Project manager

C.

Buyer

D.

Sponsor


22.

Procurement documents are documents seeking information from the ________.

A.

Seller

B.

Project manager

C.

Buyer

D.

Accountant


23.

Meetings with prospective sellers to ensure that they have a clear understanding of the requirements are known as ________.

A.

Bidder conferences

B.

Vendor conferences

C.

Contract conferences

D.

All of the above


24.

The system that assigns a value to evaluation criteria is known as ________.

A.

Weighting system

B.

Screening system

C.

Expert judgment

D.

Rating system


25.

Risk control, quality control, and performance reporting are all used in ________.

A.

Project management

B.

Contract administration

C.

Reports

D.

Sponsor communication


26.

Contracts are administered by the ________.

A.

Buyer

B.

Seller

C.

Sponsor

D.

Buyer and seller


27.

Contracts can be amended prior to contract closure in accordance with the ________ of the contract.

A.

Requirements

B.

Change control terms

C.

Sponsor regulations

D.

Organizational requirements


28.

The buyer will conduct performance reviews that show differences between the ________ of the project and the actual performance.

A.

SOW

B.

Baseline

C.

Charter

D.

WBS


29.

The ________ will offer performance reports concerning the work done on the project.

A.

Seller

B.

Buyer

C.

Sponsor

D.

Project manager


30.

The ________ will conduct performance reviews that show differences between the baseline of the project and the actual performance.

A.

Sponsor

B.

Project manager

C.

Buyer

D.

Sponsor


31.

________ and ________ are both a type of buyer performance review.

A.

Inspections, audits

B.

Inspections, tours

C.

Questioning, tours

D.

Audits, tours


32.

The payment system controls payments to the seller and may be controlled by the ________ function of the buyer.

A.

Accounts receivable

B.

Payment processing

C.

Accounts payable

D.

Check writing


33.

________ involves verification that the work and deliverables of the project are acceptable.

A.

Contract closure

B.

Administrative closure

C.

Project schedule closure

D.

Management plan closure


34.

Contract closure usually involves ________ notice that the contract has been completed.

A.

Legal

B.

Management

C.

Formal written

D.

Oral


35.

Early termination of a contract is a unique type of ________.

A.

Legal requirement

B.

Contract closure

C.

Contract fulfillment

D.

Contract management


36.

A ________ is done to review all procurement processes done during the project.

A.

Project plan review

B.

Project management review

C.

Project performance review

D.

Procurement review




Passing the PMP Exam. How to Take It and Pass It
Passing the PMP Exam: How to Take It and Pass It: How to Take It and Pass It
ISBN: 0131860070
EAN: 2147483647
Year: 2003
Pages: 167
Authors: Rudd McGary

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