Project Management Question Bank
for Exam preparation

Q2. A contractor is currently constructing a new building for your organization on a cost-plus-incentive contract. You just received the project status report from the contractor’s project manager. According to the report, the project’s CPI is 1.5. You are shocked because you believe the project costs are out of control. Upon investigation, you learn the $1 million advance payment (20 percent of the estimated project cost) given to the contractor at the start of the project was included in the project’s earned value. Further, the cost of the inventory at the project site was excluded from the total actual costs. According to the contract, your company reimburses only the costs for the completed deliverables and not for the supplies in the project’s inventory. In this scenario, the reported project’s CPI is incorrect because:

1. Actual cost is understated.
2. Earned value is overstated, and actual cost is understated.
3. Earned value is overstated.
4. Both the earned value and the actual cost are overstated.

Q3. RACI stands for______________, ________________, ___________, _______________.

1. Review, Analyze, Calculate, Implement
2. Responsible, Actual, Complete, Informative
3. Roles, Activities, Costs, Instructions
4. Responsible, Accountable, Consult, Inform

Q4. What leadership style should you employ during the first 2 weeks of project planning?

1. Coaching
2. Directing
3. Supporting
4. Facilitating

Q5. The communication model helps you communicate information to stakeholders smoothly. Which of the following is not a basic step in the communication model?

1. Encode
2. Transmit message
3. Remove noise
4. Decode message

Q6. Which process group corresponds to the "act" component of the plan-docheck- act cycle?

1. Monitoring & Controlling
2. Executing
3. Planning
4. Initiating

Q7. If earned value (EV) is US $300,000, actual cost (AC) is US $350,000, and planned value (PV) is US $375,000, what does the schedule performance index (SPI) indicate?

1. You are only progressing at 86 percent of the rate originally planned.
2. You are progressing at 125 percent of the rate originally planned.
3. You are progressing at 116 percent of the rate originally planned.
4. You are only progressing at 80 percent of the rate originally planned.

Q8. Due to improper cost planning, your cost performance is not as planned and you are over budget. Therefore, you again estimate the cost of the project and find that you will require more money to complete the project. This will require an update of the cost baseline. What will you do?

1. Update the cost baseline
2. Raise the change request to update the cost baseline
3. Update the cost baseline and inform management
4. None of the above

Q9. How can changes be made to a project management plan once the project manager baselines it?

1. By generating a change request and having it approved through the Perform Integrated Change Control process.
2. This is typically done by using a version control system. The project manager creates a new version with the changes and baselines it as the new baseline.
3. This is done by maintaining a revision history or log. The project manager documents the changes in detail and then baselines it.
4. A project management plan cannot be changed once it is baselined. An addendum has to be created to incorporate the changes.

Q10. 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