Project Management Question Bank
for Exam preparation

Q2. Which factor would NOT be considered when choosing between two projects to undertake?

1. Net present value (NPV)
2. Benefit cost ratio (BCR)
3. Payback period
4. Law of diminishing returns

Q3. A project manager has managed four projects for the company and is being considered to join the project management office team. The following is discovered during the evaluation of his performance. The project manager’s first project had an ending cost variance of -500, used two critical resources, needed to rework the project charter during project executing and was ranked 14th in priority within the company. The second project finished with a schedule variance of +100, was completed with a vastly compressed schedule and received a letter of recommendation from the sponsor, but the product of the project was not used. The third project had 23 percent more changes than expected, had an SPI of 0.90, and 25 open items in the issue log when the project was completed. Each of these projects had a cost budget of US $1,000 and 20 to 28 percent more changes than others of its size. The project management office decided not to add this project manager to the team. Which of the following BEST describes why this might have happened?

1. The project manager has only managed low-priority projects and he had to compress the schedule, showing that he does not have the skill to work in the project management office.
2. Issue logs should not be used on projects of this size, showing that the project manager does not have the knowledge to work in a project management office
3. The project manager did not effectively involve the stakeholders, showing that he does not have the knowledge to work in the project management office
4. The project manager had two critical resources on their team and still needed to rework the project charter, showing that he does not have the discipline to work in the project management office.

Q4. Cost performance measurement is BEST done through which of the following?

1. Asking for a percent complete form each team member and reporting that in the monthly progress report
2. Calculating earned value and using the indexes and other calculations to report past performance and forecast future performance
3. Using the 50/50 rule and making sure the life cycle cost is less than the project cost
4. Focusing on the amount expended last month and what will be expended the following month

Q5. Which of the following is done during the Create WBS process?

1. Product analysis
2. Project selection
3. Decomposition
4. Alternatives identification

Q6. While the project is being completed, management requests a change. What is the FIRST thing the project manager should do?

1. Comply with the request if possible
2. Obtain an understanding of the scope of the change
3. Tell the customer that a change will be coming
4. Ask the team to accept the change

Q7. You have been appointed manager of a project to convert multiple electronic mail systems at a major financial institution to a single platform. Your company’s approach was not the client’s first choice, and your firm was able to be the lowest cost alternative by using funds provided to your company for a different purpose. After the project is underway, the client specifies a new approach that has never been used before. When the project is approaching the originally scheduled end date, it becomes clear that the technological approach will have to be significantly altered. Although the client has been apprized of development throughout the project through regular status reports, and the project management plan has been followed, the client demands that the project be continued without any increase in cost until all of the client’s requirements are met. Your firm feels hat it has no choice but to comply with the client’s demands, although this will result in a substantial loss on the project. What was the MOST important thing that should have been done to avoid this situation?

1. Better identification of risks and development of risk mitigation strategies
2. Clearer project scope statement
3. Enhanced communications management plan
4. Formal client acceptance of the project management plan.

Q8. Which of the following gives you the cost estimate of your project if you continue to perform with the same cost performance?

1. ETC
2. VAC
3. EAC
4. BAC

Q9. You have been given a project to build a park for a local community. Currently you are developing approaches to involve project stakeholders based on their needs, expectations, interests, and potential impact on the project. Which of the following is not an output of this process?

1. Communication management plan
2. Risk register
3. Stakeholder register
4. None of the above

Q10. A project employs a virtual team with team members located in different offices in the same city as well as across different cities. The project manager wishes to build trust and good working relationships. One of the best ways to do this is:

1. To use team-building strategies
2. Write a memo to the team detailing the need for good working relationships
3. Plan for job-rotation on a weekly basis
4. To encourage the use of telephonic conversations as much as possible