Project Management Question Bank
for Exam preparation

Q2. Costs incurred in one area of a project can offset costs in another area of the same project. However, it is not enough to consider only the costs of project execution when making project decisions. What other costs external to the project must also be considered?

1. Costs of conformance
2. Planning costs
3. Operating costs
4. Initiating costs

Q3. You are the project manager for one part of a new program in your organization. You are four months into a three-year project when your project team makes significant discoveries on your project. What is the BEST thing to do?

1. Make certain the discoveries are included in the project lessons learned
2. Make certain the discoveries are in the monthly status report.
3. Make certain you mention the discoveries at the senior management meeting in two months
4. At the weekly meeting, make certain you tell the other project managers involved in this program about the discoveries.

Q4. A project is contracted on a Cost-Plus-Fixed-Fee (CPFF) basis with a fee of 10 percent of estimated costs. The estimated cost is US$50,000. If the project comes in at US$75,000 with no changes in project scope, what would be the total cost of the contract?

1. US$55,000
2. US$125,000
3. US$75,000
4. US$80,000

Q5. There are numerous ways to share information among project stakeholders. Which of the following is the most efficient communication method?

1. Push communication
2. Interactive communication
3. Pull communication
4. Manual communication

Q6. A work breakdown structure is an input to all of the following processes EXCEPT:

1. Define Activities
2. Estimate Costs
3. Perform Quality Assurance
4. Plan Procurements

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. Which of the following BEST describes the phrase, “influencing the factors that affect change”?

1. Telling people that changes are not allowed
2. Determining the sources of changes and fixing the root causes
3. Adding more activities to the work breakdown structure to accommodate risks
4. Calculating the impact of changes to date on the project

Q9. Seven non-random data points that are still within the upper and lower control limit of a control chart are:

1. Specification limits
2. Out of control
3. In control
4. Gold plated

Q10. Three years back, your organization awarded a fixed price contract to a reputable local contractor to construct a new airport terminal in the city. A few days back, you received a change request from the contractor requesting to adjust the contract’s price. The contractor is claiming that as a result of the recent national recession, the prices of raw materials have gone up and he cannot complete the rest of the project at the contract price. Is the contactor’s request legitimate?

1. Yes, you cannot penalize the contactor for price escalations due to force majeure.
2. Yes, unless there is no Economic Price Adjustment provision in the contract.
3. No, the price of the contract is fixed and cannot be changed.
4. No, the price hike due to recession must be adjusted against the contractor’s profit.