Project Management Question Bank
for Exam preparation

Q2. You are in the middle of a new product development project for your publicly traded company when you discover that the previous project manager made a $3,000,000 payment that was not approved in accordance with your company policies. Luckily, the project cost performance index (CPI) is 1.2. What should you do?

1. Put the payment in an escrow account.
2. Bury the cost in the largest cost center available.
3. Ignore the payment
4. Contact your manager

Q3. The cost performance index (CPI) of a project is 0.6 and the schedule performance index (SPI is 0.71. The project has 625 work packages and is being completed over a four-year period. The team members are very inexperienced and the project received little support for project planning. Which of the following would be the BEST thing to do?

1. Update risk identification and analysis.
2. Spend more time improving the cost estimates.
3. Remove as many work packages as possible.
4. Reorganize the responsibility assignment matrix.

Q4. As a project manager, you are analyzing the costs incurred in a project. Which of the following costs cannot be classified under cost of nonconformance?

1. Quality Assurance Costs
2. Warranty costs
3. Costs due to loss of reputation
4. Rework costs

Q5. Kevin is assigned to a software development project that will start in the near future and is currently tailoring the PMBOK processes to satisfy the project’s specific needs. Kevin wants to introduce a new process, “Identify Key Deliverables”, to the existing six project scope management processes. Although he understands that project deliverables identification is already in the PMBOK scope management processes, he believes that having a dedicated process will stress the importance of determining and agreeing to key project deliverables. The best position for the new “Identify Key Deliverables” process should be between which of the following two processes?

1. Define Scope and Create WBS
2. Create WBS and Validate Scope
3. Plan Scope Management and Collect Requirements
4. Collect Requirements and Define Scope

Q6. Measuring the quality of items in a sample on a pass/fail basis is:

1. Biased sampling
2. Variable sampling
3. Stratified sampling
4. Attribute sampling

Q7. A person is writing a document identifying the business need for a project and is including a description of the product is created by the project. She includes a list of stakeholders and pre-assigned resources. What is the role of this person on the project?

1. The project manager for the project or a company functional manager
2. A member of the project management team working at the direction of the project manager
3. The sponsor or the project manager
4. A manager or executive in the organization who is higher in the corporate hierarchy than the project manager.

Q8. You are a project manager for a major telecommunications network upgrade with a net present value (NPV) of US $10,000,000. You are heavily dependent on a third party vendor for your project and your contract office informs you that there is a 30 percent chance that the vendor will go out of business at the end of the quarter. If that occurs, your project will incur a US $3,000,000 cost overrun due to rework. There is also a 30 percent chance that a new legislation will pass that will decrease government oversight of your team's work. If this legislation passes, you estimate that your project will save US $1,600,000 in time delays. Lastly, your technical lead indicates that there is 20 percent chance that a new software package will be available by month end that could save US $1,800,000 in testing time. If available, the software will cost US $500,000 to procure, install and train. What is the total expected monetary value of these three risk events?

1. $60,000
2. $1,640,000
3. $5,900,000
4. $160,000 88

Q9. Which motivational theory is based on ideas about hygiene factors?

1. Maslow
2. Deming
3. McGregor
4. Herzberg

Q10. You are in the final phase of a low-cost car manufacturing project. This project has successfully delivered a low-cost car that runs on batteries. However, to close this project and avoid auditing from government authorities, it must demonstrably comply with many administrative standards. Since your organization possesses experts who know closing procedures and standards, you want to use them to close this project. This effort is an instance of:

1. Using enterprise environmental factors in closing the project
2. Using expert judgment in closing the project
3. Using organizational process assets in closing the project
4. Poor project management practice