Project Management Question Bank
for Exam preparation

Q2. Bill is the project manager of an external project for a customer. The project is expected to take about a year to complete. Six months into the project, the customer informs Bill that he or she needs to scrap the project. During which of the following processes would procedures be developed to handle early termination of a project?

1. Develop Project Charter
2. Close Project or Phase
3. Define Scope
4. Monitor Risks

Q3. You have one document which hierarchically categorizes labor, equipment, and materials, etc. This document is known as:

1. RBS
2. Resource calendar
3. RACI matrix
4. RAM chart

Q4. You are building a dam for a state government. Your organization is considered a specialist in dam design and overall management of construction activities. However, your organization lacks resources to execute the earth-works involved. You have subcontracted all the project’s earth-works to a local subcontractor. The quality of the subcontractor’s work is acceptable, but the subcontractor is not conforming to your organization’s health and safety standards. You escalated this to the subcontractor’s project manager, but he turned down your request. The subcontractor’s project manager is of the view that the request is out of the contract’s scope and none of the contract provisions require him to conform to your organization’s standards. You are agitated since you believe health and safety standards are globally accepted, and the contract does not have to explicitly state them. Further, according to the state law, you cannot terminate the contract since the subcontractor has not vio

1. Go for judicial arbitration as stated in the contact’s ADR provisions
2. Terminate the contract immediately since you will not compromise health and safety standards
3. Withhold the subcontractor’s payments to force compliance
4. Negotiate a contact amendment with the subcontractor requiring compliance to the standards

Q5. Management wants to look at how a project is doing, as compared to past projects. To make a valid judgment, management should compare his project to:

1. Benchmarks
2. Flowcharts
3. Bar charts
4. Trend charts

Q6. Ron is a project manager handling an alternate water-supply project. During a project performance review, he notices the following: (i) Activity A, on the critical path, is delayed by four days. (ii) Activity B, not on the critical path, is delayed by nine days. (iii) Activity C, on the critical path, is delayed by two days. (iv) Activity D, not on the critical path, is delayed by five days. In what sequence should Ron prioritize his efforts in addressing these delays?

1. First Activities A and B, and then Activities C and D
2. First Activities A and C, and then Activities B and D
3. First Activities C and D, and then Activities A and B
4. First Activities A and D, and then Activities B and C

Q7. Your team is analyzing the project and comes up with the information in the chart. What activities are on the critical path?

1. Not enough information
2. Activities B, C, and I
3. Activities B, C, E, F, H
4. Activities D, G, I Activity Baseline Crash Time Cost Time Cost A 10 $4,000 8 $6,000 B 2 $6,000 2 $6,000 C 14 $22,000 12 $26,000 D 6 $9,000 5 $10,000 E 9 $14,000 7 $19,000 F 8 $18,000 4 $36,000 64

Q8. The Actual Cost (AC) is the total cost actually incurred and recorded in accomplishing work performed for an activity or work breakdown structure component. What is the upper limit for the AC?

1. 50 percent over and above the Planned Value (PV)
2. The Actual Cost (AC) is limited to the Planned Value (PV).
3. 100 percent over and above the Planned Value (PV)
4. There is no upper limit for the Actual Cost (AC).

Q9. A project team is creating a project management plan when management asks them to identify project risks and provide some form of qualitative output as soon as possible. What should the project team provide?

1. Prioritized list of project risks
2. Risk triggers
3. Contingency reserves
4. Probability of achieving the time and cost objectives.

Q10. Which of the following is a basic rule or guideline for creating a work breakdown structure?

1. The first row should describe the products of the project
2. Each level of a work breakdown structure is a smaller segment of the level above
3. A work breakdown structure should be like a to-do list, listing in chronological order every activity that needs to be done to complete the project.
4. A work breakdown structure should be organized by functional areas.