| 1. | The answer is A. Both the buyer and seller are bound by the contract. |
| 2. | The answer is C. Consideration may be monetary, but it does not have to be. |
| 3. | The answer is B. PMI discusses procurement focusing on the buyer/seller relationship. |
| 4. | The answer is D. For the purposes of this chapter, this is the configuration of buyer and seller. |
| 5. | The answer is C. Market conditions will influence almost all factors of procurement. |
| 6. | The answer is A. The processes already delineated within the organization will determine how procurement is done. |
| 7. | The answer is A. These two factors are included in the detail done when decomposing the Scope Statement. |
| 8. | The answer is B. The Risk Register will generally include owners of and responses to risks that are identified at the time of writing the project management plan. |
| 9. | The answer is D. Every effort must be made to ensure that comparisons include all applicable costs. |
| 10. | The answer is A. These people may be technical subject matter experts or professionals such as attorneys or accountants. Expert judgment is useful all throughout the procurement process. |
| 11. | The answer is B. The third type of contract is the fixed price, often called the firm fixed price contract. |
| 12. | The answer is C. |
| 13. | The answer is D. |
| 14. | The answer is A. |
| 15. | The answer is B. |
| 16. | The answer is D. |
| 17. | The answer is B. This is how to work this problem out. The numbers that you need to be concerned with are the target cost, $200,000, the target profit, $35,000, the share ratio of 70/30, and the actual costs of $180,000. (In a share ratio, the first percentage goes to the buyer and the second number is the percentage that the seller will get.) Using these numbers, the calculation goes like this. You subtract the actual costs from the target cost, which gives you $20,000. Seventy percent of that goes to the buyer, whereas thirty percent goes to the seller. In this case, that would be 30% of $20,000 or $6,000. Add $6,000 to the target profit of $35,000, and you have your answer, which is $41,000. |
| 18. | The answer is B. |
| 19. | The answer is D. The contract statement of work is the place where detail is given, not the SOW. The CSOW is considered a subset of the SOW. |
| 20. | The answer is A. A Risk Register can also contain risk analysis, risk level, and risk responses. |
| 21. | The answer is C. The buyer determines what requirements are needed and then documents these needs. The evaluation criteria will often determine whether a seller is even eligible to participate in the proposal process. |
| 22. | The answer is A. The specific purpose of a procurement document is to get information from the seller as to how the requirements of the project can be meet through purchasing and acquisition. |
| 23. | The answer is D. All of these are names for conferences where the prospective sellers can ask questions concerning requirements so that they get a clear outlook on what is expected of them. |
| 24. | The answer is A. The weighting system is the basis for many of the other tools that are used in selecting sellers. |
| 25. | The answer is B. When administering a contract, the project manager should be certain to include processes specific to project management to get the best possible control of project execution. |
| 26. | The answer is D. Both the buyer and seller should administer the contract to make certain that the obligations in the contract are being met. |
| 27. | The answer is B. Change control terms should be specified in the contract and used to manage any changes made prior to contract closure. |
| 28. | The answer is B. The baseline of the project is used when looking at variances between planned and actual performance. |
| 29. | The answer is A. The seller must document work being done on the project, and this is done in performance reports. |
| 30. | The answer is C. The buyer conducts periodic performance reviews and rates the performance based on the differences between the baseline documents of the project and the actual performance of the project. |
| 31. | The answer is A. These are used to disclose variations from the original project plan. |
| 32. | The answer is C. If the organization has this type of function within it, it will control the payments to the seller. There will also be times when the payment system will be administered by someone within the project team. |
| 33. | The answer is A. The buyer notifies the seller that the deliverables and work done under the contract have been accepted. |
| 34. | The answer is C. The acceptance of the work done should be in written form. It is possible that the form of the acceptance will be outlined in the contract. |
| 35. | The answer is B. The buyer may have to compensate the seller for work done up to that time by the seller. |
| 36. | The answer is D. This is a structured review used to examine all of the procurement tasks done during the project. |
