Project Management Question Bank
for Exam preparation

Q2. A project team is trying to decrease risk on the project. Management has a good relationship with a seller who is experienced in areas that your company is not experienced in. Management wants all activities with a US $50,000 or higher risk to be transferred to the seller. Management believes that this will remove the impact of those higher risks from the project. Why would this NOT be effective?

1. Working with sellers will add more than the $50,000 of risk to the project.
2. You would have to go through the contracting process.
3. The transference of a risk does not remove all impacts of the risk.
4. Management’s association with the seller is a conflict of interest for the project.

Q3. You are estimating the cost for your project by using historical data and applying it to your project, such as the cost of painting per square foot. Which technique are you using here?

1. Bottom up
2. Top down
3. Analogous
4. Parametric

Q4. You are working with your team and are looking at the cost risks in the project. You and your team are currently creating a tornado diagram for the project risks. You do this as a part of which of the following processes?

1. Qualitative Risk Analysis
2. Risk Response Planning
3. Quantitative Risk Analysis
4. Monitor Risks

Q5. A quality management plan is created during which of the following?

1. Project executing
2. Plan Quality
3. Manage Quality
4. Perform Quality Control

Q6. The BEST method to control costs is to:

1. Estimate at the beginning of the project and then check costs against the baseline
2. Estimate during the execution of the project and then manage each activity to the budget.
3. Estimate during planning and then re-estimate before each activity begins
4. Estimate during the initiation of the project and have management confirm the estimates.

Q7. Resource requirements are determined:

1. Before the project schedule and after the network diagram
2. After the project schedule and project scope statement
3. After the project schedule and WBS
4. Before the project scope statement and the network diagram 43

Q8. A first-time project manager is advised by an experienced project manager to plan for cost of quality. The first-time project manager is not sure which costs are included in the cost of quality. What would your advice be?

1. Cost of quality only includes cost of nonconformance.
2. Cost of quality includes cost of conformance and cost of nonconformance.
3. Cost of quality only includes prevention costs and internal failure costs.
4. Cost of quality only includes cost of conformance.

Q9. A process that states how formal validation and acceptance of the completed project deliverables will be achieved is documented in the:

1. Scope Management plan
2. Procurement Management plan
3. Risk Management plan
4. Communications Management plan

Q10. The project for the accounting department has been going well when the company says that it must reduce the cost of the project without changing the quality requirements. The project manager has looked to trim any resources, paid more attention to risk on upcoming activities, and even has reduced product scope, but the project remains over the new budget limit. Which of the following should the project manager do NEXT?

1. Get an extension of time
2. Review expensive customer requirements that add the least benefit
3. Suggest the project be terminated
4. Cut 10 percent off the cost estimate of each remaining activity.