Project Management Question Bank
for Exam preparation

Q2. An activity can be completed in 5 days if the conditions are favorable; however, if the conditions are unfavorable, it will take 10 days to complete. The most likely time for this activity to be completed is 6 days. Determine the PERT estimate for this activity.

1. 6.5
2. 7
3. 5
4. 3.5

Q3. A stakeholder's mental picture or belief about the future is:

1. A Requirement.
2. A Heuristic.
3. An Expectation.
4. A Constraint.

Q4. Nancy is carrying out cost-benefit analysis for a project. If undertaken, the project will start in January next year and end by December. The project will incur a constant cost of $10,000 each month (payable by the end of each month) giving a total cost of $120,000 for the project. The revenue from the project is collected on a quarterly basis. The total revenue for the project by the end of December will be $200,000. The opportunity cost of the project is 12 percent which is the bank interest rate Nancy can get if she does not invest in this project. The total present value of all cash outflows is $112,551, while the total present value of all cash inflow is $185,721. What is the benefit-to-cost ratio for the project?

1. 1.67
2. 0.6
3. 1.65
4. 0.61

Q5. You have been offered a position managing a project that will last 12 months. However, you know that in six months, you will be relocating to another state for family reasons. What should you do?

1. Turn down the position
2. Accept the position and provide four weeks’ notice before leaving the job
3. Accept the position and compress the schedule to complete the project in six months
4. Disclose your relocation plans to the hiring manager

Q6. During the risk qualification process, you have identified many risks with a low impact or probability of happening. How will you deal with these risks?

1. Ignore them
2. Analyze them further
3. Keep on the watch list
4. Plan a risk response for them

Q7. A management control point where scope, budget and schedule are integrated and compared to earned value for performance measurement is a:

1. Code of accounts
2. Control packages
3. Control account
4. Account Plan

Q8. As a project manager, you are presented with the following information on the paycheck period for several possible projects. Which project is your BEST choice?

1. Project A with a payback period of 6 months
2. Project B with a payback period of 9 months
3. Project C with a payback period of 12 months
4. Project D with a payback period of 18 months

Q9. The Actual Cost (AC) is the total cost actually incurred and recorded in accomplishing work performed for an activity or work breakdown structure component. What is the upper limit for the AC?

1. 50 percent over and above the Planned Value (PV)
2. The Actual Cost (AC) is limited to the Planned Value (PV).
3. 100 percent over and above the Planned Value (PV)
4. There is no upper limit for the Actual Cost (AC).

Q10. You have just completed a solid waste management project in an underdeveloped country. The contractor you are working for has a strict policy of abiding by local laws and rules although the local resources working on the project have a much more lax approach to following laws and policies. Now at the end of the project, you are handing over the operational equipment to the local operators and disposing of the leftover inventory and other materials that were used during the project. More than 50 percent of the toxic materials used during the project remains in your inventory. There is no law that would prohibit you from disposing of either the type or quantity of remaining materials in the local sewage system. What should you do?

1. Give the material to local resources to dispose of by selling it to a recycling facility
2. Do not dispose of the materials improperly
3. Dispose of the material in the local sewage system; there is no law applicable here
4. Abandon the materials in the project facility you are handing over to the local operators