Project Management Question Bank
for Exam preparation

Q2. A team has just gathered information and requirements for a new project that will be completed by an external company. If the project manager is just starting the procurement process, which one of the following should be done LAST?

1. A make-or-buy analysis
2. Seek expert judgment from a variety of resources including industry groups, consultants, and other divisions of her organization
3. Contract type selection including fixed price, unit price, and cost reimbursable contracts
4. Finalize the terms and conditions of the contract.

Q3. 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.

Q4. The WBS represents all product and project work. The total work at the lowest levels should roll up to the higher levels so that nothing is left out and no extra work is performed. This principle is also the:

1. 100 percent rule
2. 80/20 rule
3. Pareto's rule
4. Ground rule

Q5. A tool that provides a visual representation of human resource allocation to a project, number of working hours, and availability on the project is a:

1. Resource Histogram
2. Staff release plan
3. Resource Breakdown Structure (RBS)
4. Organization Breakdown Structure (OBS)

Q6. What theory proposes that efforts will lead to effective performance and will be rewarded for accomplishments?

1. Conditional reinforcement
2. Maslow’s hierarchy
3. McGregor’s
4. Expectancy.

Q7. Your project calls for communication with an extremely large audience. What communication method would be appropriate under such circumstances?

1. Pull communication
2. Interactive communication
3. Two-way communication
4. Verbal communication

Q8. A new project manager is being mentored by a more experienced certified project management professional (PMP). The new project manager is having difficult finding enough time to manage the project because the product and project scope are being progressively elaborated. The PMP mentions that the basic tools of project management, such as a work breakdown structure, can be used during project executing to assist the project manager. For which of the following can a work breakdown structure be used?

1. Communicating with the customer
2. Showing calendar dates for each work package
3. Showing the functional managers for each team member
4. Showing the business need for the project 6

Q9. While finalizing the WBS you assign each work package to a control account and establish a unique identifier for the same work from a code of account. These identifiers help you find a hierarchical sum of costs, schedule, etc. Which statement is true about the WBS?

1. It contains all project work
2. It authorizes the project manager
3. It is a hierarchy of project staff
4. It is a hierarchical breakdown of project resources

Q10. What does benefit cost ratio (BCR) of 2.1 mean?

1. The costs are 2.1 times the benefits
2. The profit is 2.1 times the costs
3. The payback is 2.1 times the costs.
4. The cost is 2.1 times the profit