Project Management Question Bank
for Exam preparation

Q2. What type of method uses a weighting ranking system for quantifying qualitative data to minimize the effect of personal bias during the process of selecting a seller?

1. Independent estimates
2. Source Selection Criteria
3. Vendor audits
4. Sourcing workshops

Q3. Establishing control accounts for the work packages and a unique identifier from a code of accounts finalizes the WBS. This provides a structure for hierarchical summation of:

1. Schedule and requirements information
2. Cost and requirements information
3. Cost and resource information
4. Scope, budget and schedule information

Q4. The project manager has had some difficulty in getting the team to complete work efforts but he feels that the changes he made to the reward system will fix the problem. The number of stakeholders on the project has grown by 20 percent and the number of activities being completed late is growing. The project manager has heard from management that the project might become a higher priority if their competition comes out with a new product that uses wireless technology. Based on this, it would be BEST for the project manager to:

1. Re-estimate the activities and prepare to create a new schedule
2. Perform configuration management
3. Recreate the project work authorization system
4. Better respond to risk event triggers 30

Q5. A project change management plan should be created during which process group?

1. Initiating
2. Planning
3. Executing
4. Closing

Q6. As an external vendor, you are managing a complex software project on a time-and-materials (T&M) contract. One of your team members reports a breakthrough in automating some of the testing activities. This may result in cost savings to the project and completion of the project one month ahead of schedule. Which of the following actions would you take?

1. This is confidential information within your project team and there is no need to share with the customer. The savings will be additional profits on the project.
2. Communicate the current status and inform the customer you will incorporate some additional features to use up the savings in cost and time since it was budgeted.
3. Communicate the current status to the customer and indicate the potential changes to cost and schedule.
4. Communicate the savings in cost and time to the customer. At the end of the project, notify your billing department that they need to prepare an invoice for 50 percent of the cost saved.

Q7. During project executing, one of the electrical engineers informs the project manager that the life cycle cost of the new heating and air conditioning system is higher than the life cycle cost of another heating and air conditioning system. What should the project manager do?

1. Determine if there is room in the project budget for the additional cost.
2. Select the product with the lower life cycle cost.
3. Select the product with the best life cycle cost to earned value ratio.
4. Select the product with the lowest maintenance cost to life cycle cost ratio.

Q8. You are working on a new oil purification project in a foreign country. A person informs you that you will have to pay him a “transfer fee” for the permit to move heavy equipment through the city. What is the FIRST thing you should do?

1. Pay the fee, but only to the city
2. Do not pay the fee
3. Make sure the person is really a government official
4. Negotiate openly with the city officials.

Q9. You are currently managing an urban development project for a municipal authority. You and your team are managing the project and have outsourced most of the project work to specialist contractors. All the contracts awarded were FFP contracts. The project is almost 50 percent complete, and most of the contractors have requested amendments to their contacts. Work specifications were not clear at the time of contract awards, and as a result, new work requirements have come up. What is your lesson learned?

1. Never award FFP contracts in the future since they usually result in disputes and contests
2. Cost-plus contracts are ideal types of contracts for construction projects
3. Do not award FFP contracts unless the scope of work and specifications are precisely articulated.
4. Good and credible contractors were not selected for the project at the time of award

Q10. A parking lot fencing project was bid at US $11 per foot, and one company is doing all the work. The parking lot has four equal sides of 125 feet and requires the installation of a six-foot diameter culvert on one side. Fencing should be installed at a rate of 100 feet per day. The culvert installation will cost US $500 and take one day to complete. The culvert must be installed before work can begin on that side of the fence. After three days of work, one side is complete, another project has 75 feet installed, and the culvert is completely installed. What is the current status of the project?

1. The budget is neutral with a cost variance of $0
2. It is over budget, with a cost variance of -$1,100.
3. It is under budget, with a cost variance of +$500 due to the completion of the culvert installation
4. It is over budget with a cost variance of +$125.