Project Management Question Bank
for Exam preparation

Project Management- Q2. As a project manager, you are analyzing the costs incurred in a project. Which of the following costs cannot be classified under cost of nonconformance?

1. Quality Assurance Costs
2. Warranty costs
3. Costs due to loss of reputation
4. Rework costs

Project Management- Q3. Performance reports should address all the needs of:

1. Management.
2. Team members.
3. The project manager.
4. Stakeholders.

Project Management- Q4. Crashing helps you bring the project back on schedule if it is late. Which of the following statements is true about crashing?

1. Crashing should be done on the critical path
2. Crashing does not increase the cost
3. In crashing, you don’t start activities in parallel
4. All of the above

Project Management- Q5. During which project management process group are budget forecasts created?

1. Monitoring and controlling
2. Planning
3. Initiating
4. Executing

Project Management- Q6. Estimating the type and quantities of material, people, equipment, and supplies required to perform each activity is:

1. Estimate Activity Workload
2. Estimate Activity Input
3. Resource calendars
4. Estimate Activity Resources

Project Management- Q7. During the planning phase of your project, your team decided to procure a certain brand of hardware because it had the lowest price and came with free shipping and installation. This approach saved $6,000 over the other brands. Since that purchase, however, you discovered the annual maintenance costs for this hardware are $2,500 per year, and $12,500 over the life of the hardware. These costs were not budgeted in the project, nor were they included in the Total Cost of Ownership (TCO) analysis that was part of the project business case. What should you do?

1. Request a new budget
2. Notify the stakeholders immediately
3. Revise the business case
4. Do nothing. This will not affect the project budget

Project Management- Q8. A project is contracted on a Cost-Plus-Incentive-Fee (CPIF) basis. The contract states that if the final costs are less than expected costs, the sharing formula for cost savings is 80:20. The targeted cost is US$500,000 with a 10 percent fee. If the project comes in at US$450,000, what would be the total cost of the contract?

1. US$495,000
2. US$510,000
3. US$505,000
4. US$550,000

Project Management- Q9. The management theory that all people can direct their own effort is:

1. Theory Y
2. Herzberg’s theory
3. Maslow’s hierarchy
4. Theory X

Project Management- Q10. You are in the process of subdividing project deliverables and project work into smaller, more manageable parts so the project management team can get a structured vision of what has to be delivered. Which of the following is an output of this process?

1. Scope baseline
2. RBS
3. Network diagram
4. OBS