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Project Management Question Bank
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Question:

Nancy is carrying out cost-benefit analysis for a project. If undertaken, the project will start in January next year and end by December. The project will incur a constant cost of $10,000 each month (payable by the end of each month) giving a total cost of $120,000 for the project. The revenue from the project is collected on a quarterly basis. The total revenue for the project by the end of December will be $200,000. The opportunity cost of the project is 12 percent which is the bank interest rate Nancy can get if she does not invest in this project. The total present value of all cash outflows is $112,551, while the total present value of all cash inflow is $185,721. What is the benefit-to-cost ratio for the project?
  1. 1.67
  2. 0.6
  3. 1.65
  4. 0.61






Q2. Project stakeholder management is an integral part of project management. The effectiveness of stakeholder analysis carried out early in a project can decide its fate. Which of the following is the least important consideration during stakeholder analysis, especially when analyzing stakeholders who are also decision-makers?

  1. Prior experience
  2. Expectations
  3. Interests
  4. Influence
Correct Answer

Q3. The installation project has a CPI of 1.03 and an SPI of 1.0. There are 14 team members and each team member had input into the final project management plan. The customer has accepted the three deliverables completed so far without complaint and the responsibility assignment matrix has not changed since the project began. The project is being completed in a matrix environment and there are no contracts needed for the project. Though the sponsor is happy with the status of the project, one of the team members is always complaining about how much time his project work is taking. Which of the following is the BEST thing for the project manager to do?

  1. Review the reward system for the project.
  2. Try to improve schedule performance of the project
  3. Meet with the customer to try to extend the schedule.
  4. Gain formal acceptance in writing from the customer.
Correct Answer

Q4. The project is NOT completed until:

  1. The project scope is completed, administrative closure is completed, and payment is received.
  2. Formal acceptance is received, and any other requirements for project closure as stated in the contract are met
  3. The customer is satisfied and final payment is received
  4. Lessons learned are completed
Correct Answer

Q5. Projects with adaptive life cycles use product backlogs to define a project’s scope. The product backlog is a set of:

  1. Voice of the customer
  2. User stories
  3. Client lullabies
  4. Non-functional requirements
Correct Answer

Q6. Your construction project is in execution, and you require a major change to one of your supplier agreements. Can you directly make this change with mutual consent of the supplier during the Control Procurements process, or do you have to visit the Perform Integrated Change Control process, as well?

  1. The change request needs to be approved through the Control Procurements process prior to making the change through the Integrated Change Control process.
  2. The change request can be directly processed through the Control Procurements process since the change requests only affects a particular supplier agreement.
  3. The Control Procurements process is about identifying variances. The supplier contract can directly be altered through the Perform Integrated Change Control process.
  4. The change request needs to be approved through the Perform Integrated Change Control process prior to making the change through the Control Procurements process.
Correct Answer

Q7. The management theory that all people can direct their own effort is:

  1. Theory Y
  2. Herzberg’s theory
  3. Maslow’s hierarchy
  4. Theory X
Correct Answer

Q8. All of the following are forms of power derived from the project manager's position EXCEPT:

  1. Formal.
  2. Reward.
  3. Penalty.
  4. Expert.
Correct Answer

Q9. Which of the following are the tools and techniques used in both the Plan Communications Management and Manage Communications processes?

  1. Expert judgment
  2. Project reporting
  3. Communication requirements analysis
  4. Communication methods
Correct Answer

Q10. All of the following are examples of Perform Quality Control EXCEPT:

  1. Inspection
  2. Cost of quality
  3. Pareto chart
  4. Fishbone diagram
Correct Answer










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