PMP Test Prep Quiz

1. A document called ____________ is created by decomposing the project scope into smaller, more manageable elements.

Statement of Work

Network Logic Diagram

Work Breakdown Structure

Change Control

The Work Breakdown Structure decomposes the project into smaller, more detailed tasks.

Explanation

The Work Breakdown Structure decomposes the project into smaller, more detailed tasks.

2. During execution of a project, an identified risk event occurs that results in additional cost and time. The project had accounted for contingency and management reserves. Which should be used?

Contingency reserves

Collateral risks

Management reserves

Secondary risks

The question is about correct accounting for risk events that occur and updating the reserves.

Reserves are meant for making provisions in cost and schedule, to accommodate for consequences of risk events.

Risk events are classified as “unknown unknowns” or “known unknowns”, where “unknown unknowns” are risks that were are not identified and accounted for, while “known unknowns” are risks that were identified and provisions were made for them.

Provisions for “unknown unknowns” are in management reserves while those for “known unknowns” are accommodated in contingency reserves. Management reserves are at the discretion of senior management while

Explanation

The question is about correct accounting for risk events that occur and updating the reserves.

Reserves are meant for making provisions in cost and schedule, to accommodate for consequences of risk events.

Risk events are classified as “unknown unknowns” or “known unknowns”, where “unknown unknowns” are risks that were are not identified and accounted for, while “known unknowns” are risks that were identified and provisions were made for them.

Provisions for “unknown unknowns” are in management reserves while those for “known unknowns” are accommodated in contingency reserves. Management reserves are at the discretion of senior management while

3. What does the acronym RACI commonly stand for in project management?

Responsible, Accountable, Consult, Inform

Remote, Attached, Connected, Integrate

Risk Analysis and Caution Initiative

Randomly Accessible Cash flow Information

Used to create a Responsibility Assignment Matrix (RAM)

Explanation

Used to create a Responsibility Assignment Matrix (RAM)

4. Which of the following is not the feature of a project?

Constrained by limited resources

Planned, executed and controlled

Creates unique product or service

Is Ongoing

5/19/20115/19/2011

Explanation

5/19/20115/19/2011

5. Which of the following is the sequence of phases for any project?

Initiating, Planning, Controlling, Executing, Closing

Planning, Initiating, Controlling, Executing, Closing

Planning, Initiating, Executing, Controlling, Closing

Initiating, Planning, Executing, Controlling, Closing

PMBOK Ed. 4, Ch. 1, Pg. 6

Explanation

PMBOK Ed. 4, Ch. 1, Pg. 6

6. Pareto diagrams are based on what ratio?

50/50

60/40

70/30

80/20

The 80/20 ratio believes that 80% of the problems are due to 20% of the causes

Explanation

The 80/20 ratio believes that 80% of the problems are due to 20% of the causes

7. You are the project manager for a seminar and training session that approximately 2,000-2500 employees will be attending. You have rented a hall for the seminar; however, you are unsure exactly how many people will attend. Moreover, the number of tables required will change depending on attendance. The cost of the furniture should be considered?

Variable Cost

Fixed Cost

Indirect Cost

Overhead Cost

It is variable since the cost varies with the number of attendees

Explanation

It is variable since the cost varies with the number of attendees

8. All of the following are contract types except:

Unit-price.

Build-or-buy.

Cost reimbursable.

Fixed-fee

Build-or-buy is a feasibility analysis on whether the product should be build in-house or bought off the shelf

Explanation

Build-or-buy is a feasibility analysis on whether the product should be build in-house or bought off the shelf

9. Regarding management and leadership all of the following are true except

Technical leadership takes precedence over business objectives in project management

On a project, particularly a larger project, the project manager is generally expected to be the project's leader as well

Leading involves establishing direction, aligning people, motivating and inspiring

Managing is primarily concerned with consistently producing key results expected by stakeholders

As a project manager, it is your responsibility to balance technical vs. business priorities and objectives

Explanation

As a project manager, it is your responsibility to balance technical vs. business priorities and objectives

10. The completion of a project phase is known as a

Kill point

Archive station

Scope creep

Quality metrics

Kill points are synonymous to phase exits, decision gates, and milestones.

Explanation

Kill points are synonymous to phase exits, decision gates, and milestones.

11. Estimating activity duration and resources is done during which phase?

Initiating

Planning, Initiating, Controlling, Executing, Closing

Executing

Controlling

PMBOK Ed. 4, Ch. 6, Pg. 146

Explanation

PMBOK Ed. 4, Ch. 6, Pg. 146

12. Reviews at the end of a phase are known as:

Decision Gates

Kill Points

Stage Gates

All the above

Kill points, stage gates, phase exits, decision gates, and milestones are all synonymous.

Explanation

Kill points, stage gates, phase exits, decision gates, and milestones are all synonymous.

13. A project manager performs Earned Value Analysis and finds the following values: EV: 150,000; PV: 200,000; AC: 150,000

The project is behind schedule but on budget.

The project is on schedule and on budget.

The project is on schedule but costs exceed budget.

Then project is behind schedule and costs exceed budget.

The planned value is greater than the actual cost and the earned value therefore at this point less work has been completed but within budget.

Explanation

The planned value is greater than the actual cost and the earned value therefore at this point less work has been completed but within budget.

14. Which of the following is a tool used to secure expert judgment?

Subject Matter Expert Committee

Delphi technique

Brainstorming

Work Breakdown Structure (WBS)

The ‘Delphi technique’ is a commonly used tool to secure expert judgment by asking experts to answer questionnaires and provide feedback anonymously.

Explanation

The ‘Delphi technique’ is a commonly used tool to secure expert judgment by asking experts to answer questionnaires and provide feedback anonymously.

15. A project is under budget when Cost Performance Index is

CPI > 1.

CPI < 1.

CPI = 0.

CPI=1

CPI is the ratio of performance over cost, therefore if the CPI is greater than one then performance is outpacing cost.

Explanation

CPI is the ratio of performance over cost, therefore if the CPI is greater than one then performance is outpacing cost.

16. Which one of the following is the last step of project closing?

Client has accepted the product

Lessons learned are documented

Project closing party

Archives are complete

Archiving means the documents are complete after the project tasks are complete and accepted

Explanation

Archiving means the documents are complete after the project tasks are complete and accepted

17. At XYZ Inc., the hourly wage for semi-skilled workers is $12.00. The annual audit shows that fringe benefits cost 30% of basic wages, and that overhead costs are 70% of wages plus fringe benefits. What is the "loaded" hourly wage for a semi-skilled worker at XYZ Inc.?

$27.14

$27.96

$31.03

$26.52

$12.00*1.3*1.7

Explanation

$12.00*1.3*1.7

18. Which of the following should happen for successful team development?

Team Building Exercises

Organizational development

Conflict Management

Individual Development

In order to have a successful team, each member must learn and contribute

Explanation

In order to have a successful team, each member must learn and contribute

19. Project initiation include all of the following inputs except:

Product description.

Strategic plan.

Project charter.

Selection criteria.

The Project Charter is the output of the initiation phase.

Explanation

The Project Charter is the output of the initiation phase.

20. Which is true of the following statements concerning contract types?

A fixed price contract contains the most risk for the buyer.

Cost reimbursable contracts offer sellers the highest profit potential.

Fixed-fee contracts offer sellers the greatest profit potential.

Unit price contracts are illegal in many jurisdictions.

Fixed price contracts give the seller an incentive to complete the work using less effort or time since they will receive the same amount of money regardless

Explanation

Fixed price contracts give the seller an incentive to complete the work using less effort or time since they will receive the same amount of money regardless