Project Management Question Bank
for Exam preparation

Q2. If the project's current total earned value (EV) is $100,000 and the actual amount spent (AC) is $95,000, what is the cost variance of the project?

1. The cost variance is $1.05
2. The cost variance is $5,000
3. The cost variance is $0.95
4. The cost variance is $-5,000

Q3. You are managing a project. An audit team wants to know where they can find information on training plans for the project team members and certification requirements. This are in the:

1. Resource Breakdown Structure
2. Staff Release Plan
3. Resource Management Plan
4. Communications Management Plan

Q4. You have been appointed as the manager of a new, large, and complex project. Because this project is business-critical and very visible, senior management has told you to analyze the project’s risks and prepare response strategies for them as soon as possible. The organization has risk management procedures that are seldom used or followed, and has had a history of handling risks badly. The project’s first milestone is in two weeks. In preparing the risk response plan, input from which of the following is generally LEAST important?

1. Key stakeholders
2. Project team members
3. Project sponsor
4. Individual responsible for risk management policies and templates.

Q5. The project has been going relatively well, although there have been some problems with resource availability and the project scope has changed more than was expected. The project is now completing one of its phases. Of all decisions the sponsor must consider during and end-of-phase review meeting, the MOST difficult is:

1. Authorizing scope change for the next phase
2. Authorizing budget increases for the next phase based on scope changes
3. Cancelling the project
4. Decreasing scope to maintain budget

Q6. Bidder conferences can have a negative effect on the project if the project manager does NOT remember to make sure:

1. All questions are put in writing and sent to all sellers
2. All sellers get answers to their questions only
3. To hold separate meetings with each bidder to ensure you receive proprietary data.
4. There is room in the meeting for all sellers.

Q7. The project deadline is the end of the year. The project consists of two activities. Activity A has a duration of two months and activity B has a duration of three months. Activities A and B can be performed concurrently. The start date for the project is set for the beginning of July. What is the MAXIMUM duration of the project?

1. Two months
2. Three months
3. Five months
4. Six months 45

Q8. Your company is considering buying a building worth $1 million. If the company buys this building and rents it out for the next five years, it will get $100,000 per year as rent (receivable by the end of each year). At the end of the fifth year, the company will resell the building at $1.1 million. What is the NPV of this investment at 10 percent per annum discount rate?

1. 62092
2. 600000
3. 1600000
4. 2200000

Q9. All of the following are outputs of the Estimate Costs process EXCEPT:

1. An understanding of the cost risk in the work that has been estimated.
2. The prevention of inappropriate changes from being included in the cost baseline.
3. An indication of the range of possible costs for the project
4. Documentation of any assumptions made during the Estimate Costs process.

Q10. You are managing a project with a large multinational staff. Susan, one of the engineers, was originally asked to deliver her part of the work on October 19. Due to a change in the critical path, her deliverable will be needed two days sooner. However, as the new deadline is still two weeks away and she is ahead of schedule, you are confident her delivery will be on time. During a staff meeting, you learn from John, her functional manager, that Susan celebrates a religious holiday on October 17. However, he also tells you that Susan is not particularly religious; if pushed a bit and offered some incentive, she may forego celebrating this holiday and come to work. What should you do?

1. Check whether one of her colleagues can share some of her workload this week
2. Increase her project incentive if she agrees to deliver her presentation on the 17th
3. Let the critical path remain the same
4. Ask her boss to ask her to skip the holiday