Project Management Question Bank
for Exam preparation

Q2. A project has a payback period of nine months. What does this mean?

1. It will take the project nine months to start incurring costs
2. The project will be complete in nine months
3. The first nine months of the project will provide profit to the company
4. It will take the project nine months to cover the investment and start generating revenue

Q3. Your project is delayed because of some regulatory issues and the client has asked you to stop the work until he gets government clearance. The project team members are afraid that the project may be terminated early and you may need to enter into the close project process. In which of the following cases will you not perform the close project or close phase process?

1. When the project is terminated due to cost overrun
2. When the project is terminated due to schedule overrun
3. The client decided to terminate the project
4. None of the above

Q4. If Project A has a net present value (NPV) of US $30,000 and project B has an NPV of US $50,000, what is the opportunity cost if project B is selected?

1. $23,000
2. $30,000
3. $20,000
4. $50,000

Q5. PMBOK offers a number of tools and techniques for all the project management processes. These tools and techniques must be carefully applied in order to meet the objectives of any process. Which of the following is not a tool or technique of the Plan Stakeholder Engagement process?

1. Expert judgment
2. Meetings
3. Decision-making
4. Interpersonal skills

Q6. A RAM diagram shows the relationship between ______________ and _____________ in a tabular format.

1. Cause and effect
2. Risks and mitigation plans
3. Deliverables and costs
4. Work packages and project team members

Q7. The customer responsible for overseeing your project asks you to provide a written cost estimate that is 30 percent higher than your estimate of the project’s cost. He explains that the budgeting process requires manager to estimate pessimistically to ensure enough money is allocated for projects. What is the BEST way to handle this?

1. Add the 30 percent as a lump sum contingency fund to handle project risks
2. Add the 30 percent to your cost estimate by spreading it evenly across all project activities
3. Create one cost baseline for budget allocation and a second one for the actual project management plan.
4. Ask for information on risks that would cause your estimate to be low.

Q8. During project executing, your project team member delivers a project deliverable to the buyer. However, the buyer refuses the deliverable, stating that it does not meet the requirement on page 300 of the technical specifications. You review the document and find that you agree. What is the BEST thing to do?

1. Explain that the contract is wrong and should be changed.
2. Issue a change order
3. Review the requirements and meet with the responsible team member to review the WBS dictionary.
4. Call a meeting of the team to review the requirement on page 300.

Q9. All of the following are tools of Perform Quality Control EXCEPT:

1. Cost of quality
2. Inspection
3. Control charts
4. Flowcharting

Q10. The MOST common source of conflict on projects is:

1. Personality
2. Cost
3. Priorities
4. Schedules