Project Management Question Bank
for Exam preparation

Q2. You are carrying out a project for an external customer. Most of the project’s scope of work is outsourced and distributed among many subcontractors. What would be the role of the Direct and Manage Project Work process in this scenario?

1. Inspect and verify the adequacy of the seller’s product
2. Authorize the seller’s work at the appropriate time
3. Assure that the changes are properly approved and communicated
4. The Direct and Manage Project Work process will become redundant in this case

Q3. In which of the following contract types does the seller have the most cost risk?

1. Fixed price incentive fee (FPIF)
2. Time and material (T&M)
3. Cost plus award fee (CPAF)
4. Cost plus percentage of costs (CPPC).

Q4. You have always been asked by your management to cut your project estimate by 10 percent after you have given it to them. The scope of your new project is unclear and there are over 30 stakeholders. Management expects a 25 percent reduction in downtime as a result of the project. Which of the following is the BEST course of action in this situation?

1. Re-plan to achieve a 35 percent improvement in downtime
2. Reduce the estimates and note the changes in the risk response plan
3. Provide an accurate estimate of the actual costs and be able to support your estimate
4. Meet with the team to identify where you can find 10 percent savings.

Q5. Which of the following is not an input to the Direct and Manage Project Work process?

1. Approved Change Requests
2. Consultants
3. Project Management Plan
4. Project files from prior projects

Q6. During project executing, the project manager is spending a lot of time solving problems that arise. It would be BETTER for the project manager to transfer his efforts to:

1. Having the team solve the problems, thus freeing his time to hold more meetings
2. Executing the project management plan and making sure the quality management plan is viable.
3. Identifying additional risks and following the risk management process
4. Performing sensitivity analysis on past problems and transferring them to other projects.

Q7. What theory proposes that efforts will lead to effective performance and will be rewarded for accomplishments?

1. Conditional reinforcement
2. Maslow’s hierarchy
3. McGregor’s
4. Expectancy.

Q8. Though you have tried to plan the project to accommodate all major contingencies, you are now asked for the fifth time to decrease the length of time the project will take to complete. The person completing activity C is no longer talking to you because of the added work she needed to do to accommodate previous decrease in time. She has already told you she cannot shorten her activity any more. The person doing activity D has been replaced by a new and less tested resource. The risk of crashing activity F is small. Based on this and the chart, what is the BEST thing to do?

1. Determine why there have been so many decreases to the project length
2. Invite the person doing activity C to lunch to talk about her problems
3. Evaluate the risk added to the project with the change of resources on activity D
4. Make changes to the project to decrease the time the project will take.

Q9. All of the following are inputs to the Determine Budget process EXCEPT:

1. Activity cost estimates
2. Work breakdown structure
3. Project scope statement
4. Project performance reviews.

Q10. A contractor is currently constructing a new building for your organization on a cost-plus-incentive contract. You just received the project status report from the contractor’s project manager. According to the report, the project’s CPI is 1.5. You are shocked because you believe the project costs are out of control. Upon investigation, you learn the $1 million advance payment (20 percent of the estimated project cost) given to the contractor at the start of the project was included in the project’s earned value. Further, the cost of the inventory at the project site was excluded from the total actual costs. According to the contract, your company reimburses only the costs for the completed deliverables and not for the supplies in the project’s inventory. In this scenario, the reported project’s CPI is incorrect because:

1. Actual cost is understated.
2. Earned value is overstated, and actual cost is understated.
3. Earned value is overstated.
4. Both the earned value and the actual cost are overstated.