PMP Exam Set 2 - Questions PDF

PMP Exam Set 2 - Questions
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.
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1. During which project management process group is the rough order of magnitude estimate
created?
a. Initiating
b. Planning
c. Executing
d. Closing
2. In a simple Project lifecycle, the activities like Acceptance, Handover and Archiving of
records will occur during,
a. Concept
b. Development
c. Execution
d. Finish
3. Which of the following process develops the document that formally authorizes the project?
a. Direct and Manage Project Execution
b. Monitor and Control Project Work
c. Develop Project Charter
d. Develop Project Management Plan
4. Calculate the Payback period for the data available in the table below. This is the project
managers estimate of the cash flow that will take place over the next five years.
End of Year
1
2
3
4
5
a.
b.
c.
d.
Cash Flow In
0
300,000
400,000
100,000
50,000
Cash Flow Out

5,00,000
90,000
1,00,000
1,75,000
35,000
1 year
2 years
3 years
5 years
5. Philips has ventured into a small business and intends to calculate the ROI for his project.
The original investment was $10,000,000and the average annual profit is $400,000.
Calculate the ROI for the project.
a. 4%
b. 40%
c. 25%
d. 2.5%
6. Whose job is it to determine the priorities among projects in a company?
a. Project Manager
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b. Sponsor
c. Senior Management
d. Project Team
7. One of the functional manager in your organization is arguing that operations and projects
are same therefore require similar planning techniques. What would be your best argument
to stress your view point that the two are different?
a. Resources consumed by operations are different than the resources consumed by
projects
b. Projects incur large expenses in comparison to operations
c. Projects are done by combining the efforts of various departments while the operations
are done only by one department
d. Projects have a definite start and end date while operations do not
8. You are the Project Manager for an underpass construction project in Scotland. While
planning the project risks, which of the following will you NOT select as a strategy for dealing
with negative risks or threats?
a. Exploit
b. Avoid
c. Transfer
d. Mitigate
9. In which document will you find the code of account identifier, description of work,
responsible organization, and list of schedule milestones?
a. WBS
b. WBS Dictionary
c. PERT / CPM Charts
d. Role and Responsibility Matrix
10. A matrix organization begins a new project. Project manager knows that the team is more
responsive to their functional managers than to PM. To overcome this, PM decides to
prepare,
a. Project plan
b. Project charter
c. Scope statement
d. Human resource management plan
11. The activity Ship Container in your network diagram has an early
start of day 17, a late start of day 22 and a late finish of day 37. What is the activity
duration?
a. 15 days
b. 16 days
c. 59 days
d. 14 days
12. In your new project, you have to provide a critical deliverable within five months and do not
have time to go through the Conduct Procurements process. You decide to sign a contract
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with a supplier with whom your company has done some work in the past. The risk you are
accepting in this situation is:
a. The ability of the supplier to deliver the goods
b. Collusion between the supplier and your team
c. Lack of proper scope definition
d. Lack of a legally binding agreement
13. As a project manager, achieving customer satisfaction is an important objective for you.
Which of the following will help you in attaining your objective?
a. Defining requirements
b. Providing more features than what the customer has asked for
c. Identifying project related risks
d. Providing project justification
14. Which of the following is an ongoing and coordinated management of a group of projects
that are interrelated and/or independent and contribute to a common strategic objective?
a. Project Management
b. Program Management
c. Portfolio Management
d. Personal Management
15. Which of the following is NOT a function of the Program Management Office?
a. Administrative support to project managers and team members
b. Consolidation of individual project status reports into program and corporate reports
including exception reporting
c. Responsible for quality audit and assurance across the organization
d. Coordination of resource allocation across all projects
16. Which of the following is never true about Define Scope process?
a. It is critical to project success.
b. It is a detailed description f the project and the product
c. It never involves negotiation with the stakeholders
d. It could be iterative
17. Your project has just been approved by management. You have developed the project
charter and identified the project stakeholders. This information from the initiating phase is
input into which of the following processes?
a. Executing
b. Planning
c. Controlling
d. Back to Initiating
18. As a project manager, you need to manage the stakeholders for your project. What is not
true for stakeholders?
a. Individuals and organizations involved in the project are stakeholders
b. Individuals and organizations that support the project are stakeholders
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c. Individuals and organizations that get effected by the project are stakeholders
d. Individuals and organizations that provide finance to the project are stakeholders
19. During the planning phase of your project, your project team has discovered another
method to complete a part of the project scope. This method is more secure with an
additional cost to the client. This is an example of :
a. Risk assessment
b. Alternatives Identification
c. Alternative Selection
d. Product analysis
20. As the time in the Project Lifecycle passes by, the ability to influence risk and cost in the
project,
a. Increases
b. Decreases
c. Increases and decreases
d. There is no fixed pattern
21. After a large amount of effort, the project team has finally determined the specifications for
a major scope change to be made in the project. In light of this, what should the project
manager do FIRST?
a. Look for other changes
b. Gain sign off on this change
c. Calculate the risks associated with this project
d. Start execution of the said work
22. The project has been initiated and the project manager is in the process of defining and
documenting stakeholders' needs that are required to meet the project objectives. He is
very careful in performing this process as he is aware that the project's success is directly
influenced by the effort taken in capturing and managing project and product requirements.
All of the following are tools and techniques that can assist him in preparing the
requirements documentation except,
a. Facilitated workshops
b. Group decision making
c. Prototypes
d. A-beta technique
23. John provides a list of key risks and states their risk response strategies to his manager as his
Risk Management Plan. Why is his manager, Jeff, a PMP, asking him to redo his plan?
a. A list of project risks is an output of risk identification
b. The risk management plan defines the approaches, tools, and data sources used to
perform risk management, roles and responsibilities, budgeting, timing, risk categories,
revised stakeholders tolerances, reporting formats and tracking but not the risks
c. The risk list should also include triggers
d. John has not involved the project team
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24. You have to ensure that appropriate tools & techniques are used for performing the process
of Monitor and Control Risks. Which one of the following is not a tool & technique for this
process?
a. Risk reassessment
b. Risk Audits
c. Risk Register
d. Technical Performance Measurement
25. A project of $1.5 million has an adverse event that has the probability of 60% of occurrence
and a potential loss of $25,000. This represents an expected negative value of:
a. $1,50,000
b. $15,000
c. $1,500
d. $90,000
26. Sensitivity analysis is of the tools involved in performing quantitative risk analysis. What are
the advantages of using sensitivity analysis?
a. It determines the risk to public only
b. It allows for independent answers
c. Management understands that there is a range of possible outcomes
d. It provides insight into the project that the PM may be lacking
27. You are currently in the planning process and have identified the risks associated with this
project and are ready for the next step. What is the next step?
a. Assign probability and impact values using qualitative or quantitative analysis
b. Use the Delphi technique to confirm the identified risks
c. Identify the response strategies for the identified risks
d. Start working on the creation of the project schedule
28. You are the project manager in the aviation industry and are engaged in a project that will
create a new and improved product for your company. Currently, your company has over 5
million users around the globe and this product will impact them also. Your organization has
high expectations from your project. What technique among the options given will be the
right one to have the opinions on the impact?
a. Identify Risks
b. Anonymous trigger
c. Risk Mitigation
d. Delphi Technique
29. Which is the tool that displays the values of Probability and Impact and assists in prioritizing
the risks qualitatively and quantitatively?
a. Probability and Impact
b. Probability and Impact Matrix
c. Probability Analysis
d. Exposure Matrix
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30. Upon evaluation, a newly appointed project manager identifies that the LDR project has
many risks with high-risk impact scores, but has an overall low risk score. How is this
possible?
a. The risk scores are graded on a bell curve.
b. The risks are rated High, Medium, and Low
c. The impact of each risk is not accounted for until it comes to fruition
d. The probability of each risk is low
31. Which of the following techniques is used to evaluate the degree to which the data about
risks is useful for risk management?
a. Decision Tree
b. Probability impact matrix
c. Simulation
d. Data Quality Assessment
32. What action should a project manager FIRST take when an unidentified risk event occurs?
a. Inform the customer of the possible consequences
b. Inform the senior management of the possible consequences
c. Redo the risk identification process to get prepared for other known unknowns
d. Create a work around
33. What type of contract would the owners or buyers want to issue for a relatively new
technology oriented project in order to reduce or eliminate as much risk as possible for
them?
a. Lump sum
b. Cost plus percentage of Cost
c. Cost plus Fixed Fee
d. Fixed Price plus Incentive fee
34. If a project has a 90% chance of having the scope defined by a certain date and an 80%
chance of obtaining approval for the scope by a certain date, what is the probability that the
delivered scope will both be defined and accepted as per the schedule dates?
a. 1.7
b. 0.1
c. 0.72
d. 0.9
35. Rolling wave planning is a form of progressive elaboration planning where the work to be
accomplished in the near term is planned in detail and future work is planned at a higher
level of the WBS. Which process uses Rolling Wave Planning as a tool & technique?
a. Define Activities
b. Sequence Activities
c. Estimate Activity Resources
d. Develop Schedule
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36. You are examining the network paths for your project. Path A's duration is: 1-2-3-5-8; Path
B's duration is 1-3-5-6-7; Path C's duration is 1-2-5-4-9; and Path D's duration is 2-3-4-4-8.
Which of the following is the critical path for this project?
a. Path A
b. Path B
c. Path C
d. Path D
37. Rahul, the project manager has recently earned his PMP Certification and is planning quality
standards for his project with his team. Since it is the first time he is performing this activity,
kindly help him identify which of the following quality planning tools he will NOT require to
plan quality in his project,
a. Cost Performance baseline
b. Affinity diagrams
c. Force field techniques
d. Cost Benefit analysis
38. Which of the following is also known as Failure costs?
a. Internal costs
b. Prevention costs
c. Cost of defects
d. Cost of poor quality
39. You are the project manager for the ABC Project. Initially you have identified 5 stakeholders
in your project. As the project moved ahead, 5 more stakeholders got involved in the
project. Assuming that they all need to communicate with each other, how many additional
communication channels are there?
a. 5
b. 45
c. 35
d. Cannot be evaluated
40. Which of the following signifies the time an activity may be delayed or extended without
affecting the total project duration?
a. Lag
b. Lead
c. Total Float
d. Free Float
41. Which of the following is NOT Crosbys 4 Absolutes of Quality?
a. Aim is zero defects
b. Conformance to requirements
c. Cost of Quality cannot be measured
d. Quality comes from prevention
42. You are in charge of developing a new product for an organization. Your quality metrics are
based on the 17th percentile of the last three products developed. This is an example of:
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a.
b.
c.
d.
Statistical Sampling
Metrics
Benchmarking
Operational definitions
43. There are five stages of development that teams may go through. Which of the following is
the correct order in which these stages occur?
a. Forming, Storming, Norming, Performing, Adjourning
b. Norming, Storming, Forming, Performing, Adjourning
c. Forming, Norming, Performing, Storming, Adjourning
d. Forming, Performing, Norming, Storming, Adjourning
44. The Project Manager can exercise different powers during the project lifecycle on need
basis. Which of the following represents the power that is a subset of Legitimate Power and
involves the ability to reward people in exchange for positive achievements?
a. Legitimate Power
b. Coercive Power
c. Reward Power
d. Referent Power
45. Tim is the Project Manager for the Doom project. Two key team members have come to him
for assistance in resolving their conflict. Tim intends to use a conflict resolution strategy that
results in a win-win situation, where both the parties strive for consensus and commitment.
Which is this conflict resolution strategy?
a. Compromising
b. Confrontation
c. Smoothing
d. Collaborating
46. Which leadership style throws open the problem to the group for discussion and
simultaneously allows or encourages the entire group to make the relevant decision?
a. Autocratic
b. Democratic
c. Laissez Faire
d. Consultative Autocrat
47. What is NOT true about Management by Objectives (MBO)?
a. It is a system of managerial leadership that defines individual managerial responsibilities
in terms of corporate objectives.
b. Managers are set individual goals that contribute to the achievement of those corporate
objectives.
c. Goals and objectives should reflect project goals and align well with the client's goals.
d. It works well only when it is driven by the lower staff.
48. In the Power/Influence Model, who are the powerful people who are actively supportive of
the project?
a. Blockers
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b. Champions
c. Supporters
d. Detractors
49. The project phases are collectively known as, (54)

a. Slack
b. Float
c. Lifecycle
d. Implementation time
50. Which is a phased budget used to measure and monitor cost performance on the project?
a. Cost baseline
b. Cost management plan
c. EAC
d. Chart of accounts
51. Which of the following is NOT true about the Project Management Plan (PMP)
a. It is a living document and is subject to version control
b. It forms the baseline against which future actions are measured
c. Primary purpose of the Project Management Plan is to communicate the project
managers intentions to the stakeholders
d. Primary purpose of the Project Management Plan is to communicate the project
managers intentions to the sponsor and the management
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52. The diagram below is the Work Breakdown system (WBS) for an Engineering project. The
WBS Item 1.1.2 could be a,
a.
b.
c.
d.
Control Point
Planning package
Code of Accounts
WBS Dictionary
53. You have been assigned a high priority project. Your organization is pioneering in new
technology with this project and has no previous experience in building a similar product.
Management has requested that your estimates should be accurate. Which technique
should be used?
a. Top down estimating
b. Top down budgeting
c. Bottom up estimating
d. Bottom up budgeting
54. Which of the following is most true in regard to the Code of Accounts?"
a. It allows to easily identify the breakdown level of the item in the resource breakdown
structure.
b. It describes the coding structure used by the performing organization to report financial
information in its general ledger
c. It is the collection of unique identifiers generally assigned to WBS items
d. It defines ethical behaviour in the project and the responsibilities to the customer and
the profession
55. As the project manager, you are currently estimating costs for your project. You are using
the analogous estimating technique that is best described as:
a. Least accurate
b. Bottom up estimating
c. Regression analysis
d. Most accurate
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56. The sponsor has asked you to provide the project cost estimation for development,
installation, maintenance and customer support for as long as the project exists? What kind
of estimate is this referred to as?
a. Lifecycle costing
b. Depreciation
c. Project cost baseline
d. Payback estimate
57. The project manager has asked John to estimate the cost of his activity so as to complete
project cost estimating. He is not confident of the cost estimations and seeks help from his
colleague who asks him to identify the optimistic, pessimistic and most likely values for cost
estimation of his activity. John has identified the following values.
Pessimistic = $450K
Optimistic=$330K
Most Likely=$360K
Help John evaluate the estimated cost for his activity,
a. 370
b. 190
c. 355
d. None of the above
58. Which of the following is NOT a tool and technique for Determine Budget process?
a. Cost Aggregation
b. Reserve Analysis
c. Funding Limit Reconciliation
d. Resource calendars
59. According to Herzbergs theory, all of the following are motivating factors EXCEPT:
a. Recognition
b. Responsibility
c. Advancement in career
d. Salary
60. In your project, you invest a lot of time in team development to increase the teams
performance, which in turn increases the likelihood of meeting project objectives. Which of
the following indicators will you NOT use to evaluate your teams effectiveness?
a. Improvement in skills of team members
b. Improvement in competencies and morale that help the team to perform better as a
group
c. Decrease in staff-attrition (i.e., fewer people leaving the project team)
d. Delivery of project deliverables before time
61. Which of the following coordinates the project resources to carry out the project as per the
project plan?
a. Resource planning
b. WBS
c. Monitoring work progress
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d. Executing process
62. The performing organization has a policy of air travel by a particular airline to specified
destinations. However, the project manager has a frequent flier program with another
airline, which also flies to the particular destination that he is required to travel. What
should the project manager do?
a. Make his own travel arrangements
b. Travel by the company approved airline
c. Secure an approval for travel by his preferred airline
d. Get the organization to make an arrangement with the airline of his choice
63. You are managing a project with one year duration. During the middle of the project, it is
found that quality of the project is not as planned or expected. Who is responsible for this
situation?
a. Project champion
b. Project team
c. Stakeholders
d. Customers
64. WBS for your project has been prepared and distributed to the project team members.
When execution begins, which document will be providing the detailed descriptions of the
WBS elements?
a. WBS Dictionary
b. Scope statement
c. Project Management plan
d. Project statement of work
65. The management wants to be sure that a project is following defined quality standards.
Which one, from the following, would they use?
a. Risk Management Plan
b. Work Breakdown Structure (WBS)
c. Statement of Work
d. Quality Audit
66. If an employee is working towards the satisfaction of his/her safety needs, which of the
following is the highest need, he/ she have already satisfied?
a. Physiological
b. Need for approval from the society
c. Need for self-esteem
d. Social
67. Post the mid review of your project, EV is 42% against PV of 50%. The project manager
intends to makeup for the 5%. The project sponsor has set aside Rs.100, 000 as management
reserve. Instead of using it to hire temporary labour or pay overtime, the project manager is
using it as an incentive for the team to catch up in 60 days. If the team achieves the
deadlines, the money will be used to take the team members and their guests to Miami for
an all expenses paid weekend. What type of power is the project manager referencing?
a. Referent
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b. Reward
c. Coercive
d. Expert
68. You are managing a project and cannot get enough attention for your project. Resources
are working on more than one project at the same time and their priorities keep on
changing. Most likely you are working in what form of organization?
a. Matrix
b. Functional
c. Expeditor
d. Coordinator
69. Project information may be distributed using a variety of methods including project
meetings, hard copy document distribution, and shared access to networked electronic
databases, fax, electronic mail, voice mail, video conferencing and electronic tools for
project management. These are known as
a. Project controls
b. Project information management system
c. Project distribution systems
d. Information distribution tools
70. You are in the process of selecting a seller from the shortlisted ones and awarding a
contract. The process will involve receiving bids or proposals and applying defined selection
criteria to select the seller(s) who is/are qualified to perform the work. All of the following
are inputs to this process except?
a. Teaming Agreements
b. Make or buy decisions
c. Bidder conferences
d. Source selection criteria
71. A project manager is managing a project where there will be a number of persons working
together. She wants to enhance the ability of the team to work together and perform as a
team. One of the things that she can do to maximize the ability of the team to do this is:
a. Cohabitation
b. Co-location
c. Staffing plan
d. Work Breakdown structure
72. Which of the following is a hygiene factor under Herzbergs Motivation-Hygiene Theory?
a. Recognition for excellent work
b. Self-actualization
c. Good relations with co-workers and managers
d. Clean clothing
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73. Tom is a project manager on an industrial design project. He is always watching when his
team members come into the office, when they take their breaks, and when they leave. He
periodically walks around the office to be sure that everyone is doing work when they are at
their desks and he insists that he make every project decision, even minor ones. What kind
of manager is he?
a. Theory X
b. Theory Y
c. Cost Cutter
d. Effective Theory X
74. There is probably more man hours lost through ineffective meetings than any other cause.
The application of some simple rules can make meetings much more effective. Which of the
following does NOT contribute in making the meetings effective?
a. Have a meeting policy defined in the Communications Plan
b. Meet at least once a week
c. Circulate an agenda before the meeting and stick to it
d. Make all actions personal and timely and follow them up
75. Which of the following is an input to the Quality Assurance process?
a. Approved change requests
b. Quality metrics
c. Resource calendars
d. Grade
76. Which type of cost is team training?
a. Direct
b. Fixed
c. NPV
d. Indirect
77. A cost baseline is an output of which cost management process?
a. Estimate Costs
b. Estimate Activity Durations
c. Determine Budget
d. Control Costs
78. Which of the following is the most probable result of communication blockers?
a. Conflict occurs
b. Trust level is enhanced
c. Project is delayed
d. Senior management is displeased
79. When is formal written correspondence required with the customer?
a. When the customer requests additional word not covered under the contract
b. When the project has cost overruns
c. When the project has a schedule slippage that includes changes to the critical path
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d. When defects are detected

80. Which of the following is NOT a tool and technique for Acquire Project Team process?
a. Pre-assignment
b. Virtual teams
c. Resource calendars
d. Acquisition
81. Which one of the following documents determines the method and timing of releasing the
team members and also helps to mitigate human resource risks that may occur during or at
the end of the project?
a. Staff acquisition
b. Staff release plan
c. Compliance
d. Safety
82. Project Staff assignments is an output from the Acquire Project Team process. It is an input
to,
a. Develop Project Team process
b. Human Resource Management process
c. Staff Planning process
d. Human Staffing process
83. Nonverbal communication skills are of ____________________ when the project manager is
engaged in negotiations.
a. Major importance
b. Little importance
c. Importance only when cost and schedule objectives are involved
d. Importance only to ensure he wins the negotiation
84. Establishing minimum requirements of performance for evaluation criteria is also known as,
a. Entry Level Screening
b. Estimating system
c. Screening system
d. Weighting system
85. Which of the following is known as the formal procedure for sanctioning the project work to
ensure that its done at the right time?
a. Project Planning
b. Cost Estimation
c. Work Authorization System
d. Organizational procedures
86. Which of the following coordinates the project resources to carry out the project as per the
project plan?
a. Resource planning
b. WBS
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c. Monitoring work progress

d. Executing process
87. Which of the following stands true when the ratio between Earned Value and Planned Value
is greater than one?
a. You have completed less work than the planned work.
b. You have completed more work than the planned work.
c. You are earning less than spending.
d. You are earning more than spending.
88. Your project has an allocated budget of $720,000. 8 months down the project time, you
have exhausted $515,200 of your budget. You have completed 70 percent of the work
against your plan of 82%. What is the CPI for this project?
a. 0.97
b. 1.02
c. 0.7
d. 0.85
89. During the project review, you learn that your project has a high likelihood of experiencing a
schedule overrun. You know this because the cumulative EV is ________
a. Lower than the cumulative actual cost
b. Higher than the cumulative PV
c. Lower than the cumulative PV
d. Lower than the cumulative CPI
90. What are the graphical displays of accumulated costs and labour hours, plotted as a function
of time known as?
a. Variance reports
b. S curves
c. Trend analysis
d. Earned value reports
91. Your organization uses Earned Value Management to assess project health. As a project
manager, you will use EVM during which of the following?
a. Controlling processes
b. Executing processes
c. Entire project
d. Closing processes
92. You are in the process of monitoring the various project processes and their performance.
Which of the following are the LEAST appropriate tool/ technique to use in this process?
a. Expert judgment
b. Earned value technique
c. Project management methodology
d. Variance analysis
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93. Your team has completed the project and the customer has accepted the completed project
scope. The Project management office has reverted back to you, the Project Manager saying
that the lessons learned have not been completed. What is the status of your project NOW?
a. The project is complete because the customer has accepted the deliverables
b. The project is incomplete because the project needs to be re-planned
c. The project is incomplete until all project and product deliverables are complete and
accepted
d. The project is complete because the project has reached the due date
94. Your project was just completed. Because of some unfortunate circumstances, the project
was delayed, causing cost overruns at the end of the project. Which of the following
statements is true?
a. You should document the circumstances as lessons learned.
b. You should pay particular attention to archiving the financial records for this project.
c. Your project ended because of starvation because of the cost overruns.
d. You should document the circumstances surrounding the project completion during the
Scope Verification process.
95. Procurement audits review which of the following?
a. The procurement processes from Plan Procurements through Administer Procurements
b. The procurement processes from Plan Procurements through Close Procurements
c. The Plan Procurements and Conduct Procurements processes
d. The procurement processes from Plan Procurements through Close Project or
Phase process
96. Your construction project has 190 specifications, 350 blueprints and multiple parts. Which
tool would you use to apply technical and administrative direction to identify the functional
and physical characteristics of items, and control changes to those characteristics?
a. Change control system
b. Configuration management
c. Inventory control
d. Operational definitions
97. As part of finishing her project notebook, Carmen is compiling the paperwork for the project
auditor to review. As she completes her final reports for the project closeout, she realizes
that she has mistakenly included the,
a. Performance measurement documentation
b. Return on Investment (ROI)
c. Contract documentation
d. Lessons Learned
98. Project closing is the last phase of the project life cycle and Dan is excited to be near to the
project completion. He finds that while doing project closing he needs to concentrate his
efforts on many areas. They are:
a. Control Schedule and Perform Quality Control
b. Distribute Information and Administer Contracts
c. Define Activities and Sequence Activities
d. Close Procurements and Close Project or Phase
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99. Project A has an Internal Rate of Return (IRR) of 20%, Project B has an IRR of 12%, Project C
has an IRR of 22%, and Project D has an IRR of 10%. Which of these would be the BEST
project?
a. Project A
b. Project B
c. Project C
d. Project D
100. Given the following values, calculate the Variance at Completion for the project :
PV=300, AC=358, EV=324, EAC=454, BAC=420
a. Negative Variance at 34
b. Positive variance at 130
c. Positive Variance at 34
d. Negative Variance at 130
101. Tools and Techniques for Perform Integrated Change Control include:
a. Expert Judgment
b. Expert Judgment, Change control meetings
c. Change control meetings
d. Change control meetings, Project management plan
102. Verify Scope is the process of formalizing acceptance of the completed project deliverables.
When should this process be done?
a. At the beginning of the project
b. During the Planning processes
c. At the end of each phase of the project
d. At the end of the project
103. For the company review meeting, you have to prepare graphical charts to show the project
performance trends. Which of the following two charts will help you to do that?
a. Pareto chart & Control Chart
b. Control chart & Run Chart
c. Gantt Chart & Control Chart
d. Histogram & Run Chart
104. Johnny is the project manager of the Galaxy Project. Quality audits of the deliverables show
there are several problems in the product. The organization has asked Johnny to create a
chart showing the distribution of problems and their frequencies. Which of the following is
the right tool to assist Johnny?
a. Pareto diagram
b. Ishikawa chart
c. Control chart
d. Flowchart
105. As a project manager, you are deciding the tools & techniques that you need to use on your
project. Which process uses Issue Log as one of the tool & technique?
a. Develop Human Resource Plan
b. Manage Project Team
c. Distribute Information
d. Report Performance
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106. A customer has been consistently late with approvals on design documentation. The project
manager has raised the subject in the past but the practice of delayed approval has not
changed. The project manager has just been documenting the delays. Which conflict
resolution technique has the project manager been following?
a. Confronting
b. Withdrawal
c. Smoothing
d. Compromising
107. Senior Management needs to be informed regarding the progress on your project. You will
be making progress reports based on the scope, schedule and cost details provided in the:
a. Project Management Plan
b. Project Charter
c. Earned Value calculations
d. PERT and CPM
108. In your organization, a project management team has subcontracted work to a service
company. The process of ensuring that this service company's performance meets
contractual requirements is called:
a. Plan Procurements
b. Administer Procurements
c. Procurement Management Plan
d. Staffing Management Plan
109. Which of the following is the Output from the 'Report Performance' process?
a. Communication methods
b. Organizational process assets updates
c. Reports
d. Budget forecasts
110. Your most recent project status report contains the following information:
EV = 3,000, AC = 3,500, and PV = 4,000. The schedule variance is:
a. "+1000"
b. "+500"
c. "-500"
d. "-1000"
111. Cost control outputs include all of the following except:
a. Estimate at completion
b. Budget estimates
c. Revised cost estimates
d. Cost Baseline
112. You have just been informed by the Project sponsor that the customer intends to terminate
the project in the middle of the execution process group. Which of the following will you do
FIRST as a project manager?
a. Share this information with all stakeholders by email
b. Evaluate the impact of project closure
c. Initiate the Close Project or phase process
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d. Meet the sponsor to discuss the course of actions

113. Which of the following is a Tool and Technique for the 'Close Project' process?
a. Expert Judgment
b. Accepted deliverables
c. Project charter
d. Project management plan
114. One way the Close Project or Phase process differs from Close Procurement is:
a. "Procurement closure involves verification that all work and deliverables are acceptable,
where Close Project or Phase does not"
b. Close Project or Phase is only a subset of Close Procurement
c. "Procurement closure means verifying that the project is complete or terminated; Close
Project or Phase is the process of tying up all of the activities for every management
process group"
d. Procurement closure is performed by the seller; Close Project or Phase is performed by
the buyer
115. Your client has terminated your project before it is complete. Which of the following is true?
a. You must stop all work and release the team immediately
b. You must work with the team to document the lessons learned
c. "You must keep the team working on the project to give your senior management time
to talk to the client"
d. You must update the project management plan to reflect this change
116. Which of the following is NOT an input of the Close Project or Phase process?
a. Project management plan
b. Project management methodology
c. Accepted deliverables
d. Organizational process assets
117. Which of the following is an input to the 'Close Procurement' process?
a. Project management plan
b. Project documentation
c. Expert Judgment
d. Accepted deliverables
118. During procurement closure, a procurement audit includes all of the following EXCEPT:
a. Reviewing the contract terms to ensure that they have all been met
b. Identifying successes and failures that should be recognized
c. Documenting lessons learned
d. Using the payment system to process consideration as per the terms of the contract
119. Which of the following BEST describes when you perform the Monitor and Control Project
Work process?
a. Continuously throughout the project
b. As soon as every deliverable is completed
c. At scheduled milestones or intervals during the project
d. At the end of every project phase
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120. You are the project manager for a construction company. You are currently working on a
project for building a new dam across a river. A recent change in a law governing Ecological
Preservation will impact your project and change your project scope. What should PM do?
a. Proceed as planned, and ignore the change in the law
b. Create a documented change request
c. Consult with the project sponsor and the stakeholders
d. Stop all project work until the issue is resolved
121. You are listing down the possible reasons that can cause scope change in your project.
Which one of the following will not be a valid reason for scope change?
a. Customer has changed the specifications for the deliverables
b. Change in government regulations
c. Change in the estimation approach from top down to bottom up
d. A change in the design because new technology needs to be implemented
122. What is the MOST important thing that a project manager should ensure during the 'Verify
Scope' process?
a. Accuracy
b. Timeliness
c. Acceptance
d. Completeness
123. You, as a project manager are in the process of midway review at the end of the first year of
a $50K project, the earned value analysis shows that the PV is $25K the EV is $20K and the
AC is $15K. What can be determined from these figures?
a. The project is behind schedule and over budget.
b. The project is ahead of schedule and under budget.
c. The project is ahead of schedule and over budget
d. The project is behind schedule and under budget.
124. At what level of the WBS should the budget be estimated to assist in budget control during
the Monitoring and Controlling process group?
a. Highest
b. Lowest
c. Third
d. Major work effort
125. As a project manager, you are ensuring that project cost control is done on your project. All
of the following is mostly true about Project Cost Control except:
a. The cost base line is updated all the time
b. Appropriate stakeholders are informed about the approved changes to the project cost
c. All the changes to the project cost are recorded pre and post their approval
d. Cost performance is monitored to detect the variance between the cost base line and
actual cost performance
126. A customer has been consistently late with approvals on design documentation. The project
manager has raised the subject in the past but the practice of delayed approval has not
changed. The project manager has just been documenting the delays. Which conflict
resolution technique has the project manager been following?
a. Confronting
b. Withdrawal
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c. Smoothing
d. Compromising
127. If a project manager wants to examine project results over a period of time to analyse the
improvement in performance, what would she use?
a. Trend Report
b. Forecasting Report
c. Status Report
d. Variance report
128. Senior Management needs to be informed regarding the progress on your project. You will
be making progress reports based on the scope, schedule and cost details provided in the:
a. Project Management Plan
b. Project Charter
c. Earned Value calculations
d. PERT and CPM
129. You have to ensure that appropriate tools & techniques are used for performing the process
of Monitor and Control Risks. Which one of the following is not a tool & technique for this
process?
a. Risk reassessment
b. Risk Audits
c. Risk Register
d. Technical Performance Measurement
130. In your organization, a project management team has subcontracted work to a service
company. The process of ensuring that this service company's performance meets
contractual requirements is called:
b. Administer Procurements
c. Procurement Management Plan
d. Staffing Management Plan
131. Which of the following is not a Quality Control Tool?
a. Audit
b. Pareto Charts
c. Ishikawa Diagrams
d. Inspection
132. Which of the following is the Output from the 'Report Performance' process?
a. Communication methods
b. Organizational process assets updates
c. Reports
d. Budget forecasts
133. An example of scope verification is:
a. reviewing the performance of an installed software module
b. managing changes to the project schedule
c. decomposing the WBS to a work package level
d. "performing a benefit/cost analysis to determine if we should proceed with the project"
Page 23 of 34
134. There are five stages of development that teams may go through. Which of the following is
the correct order in which these stages occur?
a. Forming, Storming, Norming, Performing, Adjourning
b. Norming, Storming, Forming, Performing, Adjourning
c. Forming, Norming, Performing, Storming, Adjourning
d. Forming, Performing, Norming, Storming, Adjourning
135. The Staffing Management Plan, which is part of the Human Resource plan, describes when
and how human resources requirements will be met. Information in the staffing
management plan may vary according to the application area and project size. Key areas
may be the following except,
a. Staff acquisition
b. Resource calendars
c. Compliance
d. Work Items
136. In a matrix organization, two projects have a concurrent need for identical skills in limited
availability with the functional manager in charge of the skill in demand. Who is responsible
for resolving this conflict over resources?
a. Senior management
b. Sponsor
c. Project Manager
d. Functional Manager
137. You are the project manager for the Moon project. As part of quality management, you have
listed the cost of quality, both for conformance and non-conformance. Which of the
following is not an attribute of the cost of non-conformance?
a. Safety measures
b. Downtime
c. Loss of customers
d. Rework
138. An International Project consists of 150 project team members around the world. Each
project team will be upgrading a piece of software in different facilities. The Project
Manager need to address quality of the overall delivery. Which of the following is the most
suitable quality planning tool?
a. Work Breakdown Structure
b. Checklists
c. PND
d. WBS Dictionary
139. As a project manager, you are ensuring that quality standards should be followed on your
project. In which PMBOK process are the quality standards that need to be followed on the
project are identified?
a. Develop Project Charter
b. Collect Requirements
c. Plan Quality
d. Perform Quality Assurance
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140. You as a project manager want a detailed cost estimation to be developed for your project.
Which one of the following technique are you most likely to use?
a. Analogous estimating
b. Expert Judgment
c. Bottom up estimating
d. Numerical estimating
141. The duration of an activity has the following estimates - optimistic: 25 days, most likely: 48
days, and pessimistic: 65 days. Which of the following is the time estimate of this activity
based on the Beta distribution?
a. 43 days
b. 49 days
c. 47 days
d. 48 days
142. You are managing a project in which your team members are uncertain as to how much time
will be needed for each activity. Which of the following technique is considered to be the
most useful in this case?
a. Precedence diagramming method (PDM)
b. Arrow Diagramming method (ADM)
c. Project Evaluation and Review Technique (PERT)
d. Critical Path Method (CPM)
143. The standard deviations for the four tasks at the critical path are 3, 5, 10, and 3. What is the
standard deviation for the entire critical path?
a. You can not determine the standard deviation on critical path.
b. 11.95
c. 5.8
d. 143
144. A project manager is using a single duration estimate to calculate activity duration. Which
type of mathematical analysis, from the following, is he using?
a. Critical Path Method (CPM)
b. Project Evaluation and Review Technique (PERT)
c. Monte Carlo
d. Graphical Evaluation and Review Technique (GERT)
145. A logical relationship between tasks that allows an acceleration of the successor task is
represented by:
a. Float
b. Free Float
c. Lag
d. Lead
146. The calculation of pricing for a project can be extremely complex in the perspective of valid
cost estimates and price quotes from vendors. The tool that facilitates the pricing of a
project by a structured decomposition of the total effort into individual activities and by
defining cost elements of labour, material, and equipment is?
a. Cost Estimation Plan
b. Cost Management Plan
c. WBS
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d. Bottom up estimating
147. Which of the following are the project constraints defined by PMI?
a. Scope, Quality, Schedule, Budget, Resources and Risk
b. Quality, Procurement, Schedule, Budget, Resources and Risk
c. Scope, Quality, Communication, Budget, Resources and Risk
d. Scope, Quality, Schedule, Budget, Communication and Risk
148. Of the following, which is not TRUE about Project Life cycle?
a. Cost and staffing levels are low at the start, peak as the work is carried out and drop
rapidly as the project draws to a close.
b. Stakeholder influences are greatest towards the end of the project
c. Risk and Uncertainty are greatest at the start of the project
d. Cost of changes increases as the project approaches completion
149. You are a project manager for your organization. Joe, a project manager in training, wants to
know when the project manager needs to be assigned to a project. Your BEST answer is:
a. During the initiation stage
b. During the Planning stage
c. When the stakeholders approve the budget
d. After the project is proven feasible
150. Of the following, which is an example of external factor for Enterprise environmental
conditions?
a. Company methodology and organization
b. Company culture
c. Company infrastructure and capability
d. Government and industry standards and regulations
151. For projects that are carried out under a formal contract, the principal inputs are,
a. Statement of Work and Business Plan
b. Statement of Work and Project Charter
c. Project Charter and Business Plan
d. Statement of Work and Project Document
152. All of the following are TRUE about Statement of Work except,
a. It is a formal document that describes the activities, deliverables, and timescale for the
performance of specified project work.
b. Detailed requirements are usually included in the Statement of Work (SOW), along with
standard regulatory and governance terms and conditions.
c. Where the work is by a contractor on behalf of a client, then the SOW becomes part of
the binding contract.
d. It is the responsibility of the sponsoring management to create it
153. The discount rate at which the Net Present Value of future cash flows is zero is known as,
a. Return on Investment (ROI)
b. Payback Period
c. Internal Rate of Return (IRR)
d. Net Present Value (NPV)
Page 26 of 34
154. A key tool of project monitoring and control that defines tools, procedures and processes
necessary to collect, collate and disseminate the information generated as an outcome of
the project management processes is known as,
a. Earned Value
b. Project Management Information System
c. Project Management Plan
d. Project Charter
155. As the project progresses, the cost of change is expected to,
a. Reduce
b. Increase
c. Increase and later reduce
d. Has no effect
156. Close Project or Phase process involves all of the following except,
a. Contract Completion
b. Financial accounting
c. Handover of deliverables
d. Admin Management
157. Failure to properly archive can have severe consequences. An archiving system should not,
a. Cater for every document and record type e.g. book, drawing, report, letters, minutes,
specifications, e-mails, etc.
b. List and index all documents and state where they are stored and the media type.
c. Have slow retrieval access controls.
d. Ensure that electronic media is future proof.
158. Which of the following make use of Workflow Diagramming?
a. Total Quality Management
b. Project Charter
c. Project Management Plan
d. ISO 9000
159. A graphical hierarchical decomposition of project into products, products into composition,
etc that helps clarify scope is known as,
a. Work Breakdown Structure
b. Product Breakdown Structure
c. Acceptance Criteria
d. Scope Statement
160. Perform Integrated Change Control process is the principal tool for controlling scope
variances. Scope is also controlled by regular performance reviewing and Performance
Reports. All are TRUE about Performance Reports except,
a. Are used to determine if the project is on track.
b. Compares actual with planned time, cost, quality, and scope.
c. Will have an acceptance test
d. Provides audit trail and project history.
161. Precedence Diagramming Method creates a network of activities and uses boxes to show
the activities and arrows to link them. They are also known as,
a. Activity on Node
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b. Activity on Arrow
c. Critical Path Method
d. None of the above
162. What is the purpose of Dummy Activities?
a. They can incorporate lead / lag
b. Dummy activities are used to show complete relationships between tasks
c. Represents an improvement to Activity-on-Line by adding other relationships to
activities
d. Used by the Project Manager and team
163. A resource constrained critical path that places a buffer at the end of a critical chain as a
time contingency to allow for uncertainty is known as,
a. Buffers
b. Critical Chain Method
c. Critical Path Method
d. Float
164. A schedule compression technique with overlapping phases or activities that would normally
happen sequentially is known as,
a. Crashing
b. Fast Tracking
c. Float
d. Lag
165. Repeatable elements of a network are known as,
a. Fragnet
b. Heuristic
c. PERT
d. CPM
166. A bar chart representation that summarizes related items of work but does not show
individual task details is known as,
a. Detailed schedule
b. Milestone Schedule
c. Summary Schedule
d. Time Management
167. If the Project Manager wants to analyse the performance of the project, viz. deteriorating or
improving, which kind of progress report should he/she use?
a. Performance Reviews
b. Variance Analysis
c. Trend Analysis
d. Earned Value Analysis
168. Sunk cost is the money already spent and cannot be recovered. When should the sunk cost
be ignored?
a. When making decisions about whether to continue investing in a continuing project
b. When calculating the investment opportunity lost in Project B
c. When Opportunity cost is calculated
d. When Direct and Indirect costs are calculated
Page 28 of 34
169. Instead of rejoicing project end, the stakeholders are breathing a sigh of relief. None of them
were confident that the project would meet the end date. Which of the following is NOT one
of the reasons that this project had difficulty?
a. Lack of a payback period
b. Lack of milestones
c. Lack of a communication plan
d. Lack of a stakeholder management plan
170. Which type of leadership style is most appropriate when managing large number of low
skilled workers?
a. Autocratic
b. Paternalistic
c. Democratic
d. Paradorma
171. Which of the following best describes any measurable, tangible, or verifiable item that must
be produced to complete the project?
a. Deliverable
b. Data item list
c. Work package
d. Code of accounts
172. Which of the following is not a measure of the profitability of a project or program?
a. Return on original investment
b. Net present value
c. Depreciation
d. Discounted cash flow
173. A cost-plus-percentage-cost (CPPC) contract has an estimated cost of $120K with an agreed
profit of 10% of the costs. The actual cost of the project is $130K. What is the total
reimbursement to the seller?
a. $143K
b. $132K
c. $142K
d. $130K
174. As you develop your project closeout documents, you begin to review the project
deliverables and develop your checklist of project requirements. You can typically find the
requirements for contract closure in:
a. Project Plan
b. Contract terms and conditions
c. Work Breakdown structure
d. Project charter
175. You are currently planning your project activities. Some members in your organization are
against taking up the project because they state that it's better to buy the same product
from an outside source. Others within the organization feel that building the product inCopyright 2013 The Knowledge Academy Ltd - All rights reserved.
Page 29 of 34
house will provide exposure to new technologies. What tool should the project manager use
to choose between the options available?
a. Make-or-Buy Analysis
b. Fish Bone model
c. Ishikawa diagram
d. ROI analysis
176. You are the project manager of a time-critical project. One of your sellers is giving you too
much trouble as most of the seller's deliverables are late and below set quality levels and
you have little confidence in his company's ability to complete the project. What should you
do?
a. Meet with the seller to discover the cause of the problem
b. Assign a group within your team to meet with the seller and reassign project work so
that the seller has easier work to accomplish
c. Terminate the seller for convenience and hire another seller
d. Provide some of your own staff to augment the seller's staff
177. Which of the following contract needs the buyer to specify the requirement correctly at the
time of contract signing?
a. Fixed Firm Price
b. Time and Material
c. Cost Reimbursable
d. CCP
178. Part of your project plan has to be outsourced. You are engaged in creating source selection
criteria for your contract. Which process are you in?
b. Close Procurements
c. Conduct Procurements
d. Administer Procurements
179. As a project manager, you are evaluating the better option between buying and making a
WOODEN FURNITURE. If you buy, the cost would be USD 225,000 and the cost of
procurement and other related costs is USD 5,000. If you make the product yourself, you
need 19 workers working for 6 months. Salary of each of the workers would be USD 1800
per month, and the overhead cost is USD 65,000. What should you do?
a. Buy the wooden furniture
b. Make the wooden furniture
c. Partly buy and partly make
d. Go for opportunity cost logic
180. The management wants to be sure that a project is following defined quality standards.
Which one, from the following, would they use?
a. Risk management plan
b. Work Breakdown Structure
c. Statement of work
d. Quality Audit
Page 30 of 34
181. The technique of determining the quality standards for the entire product range by
measuring the quality standard of few categories of products is an example of measuring
which of the following?
a. Statistical Sampling
b. Statistical population
c. Statistical Independence
d. A mutual exclusivity
182. In your electronics industry, there have been several instances where the few circuits have
not been accurate since the past one week. You have been assigned the task of trying to
determine the potential causes for these variations. You can use the following tool :
a. Control charts
b. Pareto Diagram
c. Ishikawa diagram
d. Flowcharts
183. You are the project manager of the MAX Project. While monitoring your project, you find
that the project is having some flaws in its production. Which analysis tool will allow you to
determine the cause-and-effect of the production faults?
a. Flow chart
b. Ishikawa diagram
c. Pareto diagram
d. Control chart
184. Which of the following tools assist a project manager and his team to show how the various
elements of a system relate?
a. Project Scope Statement
b. Trend charts
c. Flowcharting
d. Scatter Diagram
185. You are the project manager where the project's product has to be of very high quality to be
competitive in the market. To create quality awareness, you address your project team
about the importance of quality. In order to achieve the maximum benefits from quality
management processes in your project, what will be the most suitable approach towards
quality?
a. It will cost more money to build quality into the project
b. Quality is prevention driven
c. Quality is inspection driven
d. It will cost less money to build quality into the project process
186. You have tasked a project team member to list the activities that result in cost of nonconformance to quality in your project. The list he submits is inaccurate because one of the
four is a cost of conformance. Which of the following did your project team member list
incorrectly?
a. Rework
b. Scrap
c. Quality Training
Page 31 of 34
d. Warranty costs
187. Once the project team completes the planning phase of the project, they should have the
following identified/developed to monitor and control quality :
a. Operational definitions or metrics and procedures
b. Benchmarks
c. Flowcharts
d. Pareto diagrams
188. As a project manager, you are looking at defects in all the inspection runs for the past year
and you identify that there are more and more defects per inspection as time goes on. You
create a quality task force to try to figure out what is causing these defects. Which process
are you in?
a. Perform Quality Control
b. Perform Quality Assurance
c. Plan Quality
d. Quality Planning
189. Design of Experiments (DoE) is a tool for Quality Planning which you will be using to
determine which factors might influence specific factors? Which of the following variable
can you use in your analysis?
a. Weight
b. Dollars
c. Pounds
d. Meters
190. Which of the following is NOT a tool and technique for Plan Quality?
a. Control chart
b. Cost of Quality
c. Design of Experiments
d. Scatter diagram
191. "Maximize the value of the portfolio by careful examination of candidate projects and
programs for inclusion in the portfolio and the timely exclusion of projects not meeting the
portfolios strategic objectives" - which concept of project management is stated here?
a. Project Risk Management
b. Organizational strategy
c. Project Portfolio Management
d. Project Plan Management
192. At times, the project manager has very less formal authority and he/she basically acts as a
staff assistant to an executive who is ultimately responsible for the project. This type of
organization is called:
a. Functional Organization
b. Expeditor organization
c. Weak Matrix Organization
Page 32 of 34
d. Poor Project Management Organization

193. Project sponsors have the GREATEST influence on the scope, quality, time, and cost of the
project during the:
a. Concept phase
b. Development phase
c. Execution phase
d. Close - down phase
194. Which type of organization experiences the least amount of stress during project closeout?
a. Functional
b. Projectized
c. Weak Matrix
d. Strong matrix
195. Two stakeholders have begun fighting over functionality on your project. Who should
resolve this conflict?
a. Senior management
b. Project Manager
c. Sponsor
d. Customer
196. Which of the following statement related to Standards and Regulations is not correct?
a. Standard is a document approved by a recognized body - there can be multiple
standards for one product.
b. Regulations are mandatory but Standards are not mandatory
c. Standards after widespread adoption may become de facto regulations
d. The influence of standards and regulations for a project is always known
197.
a.
b.
c.
You are working in the Project Office of your organization. What is your job responsibility?
Managing the different activities of a project
Always being responsible for the results of the project
Providing support functions to Project Managers in the form of training, software, templates
etc.
d. Providing Subject Matter Expertise in the Functional areas of the project
198. Of the following, which usually exhibits the slowest rate of change?
a. People
b. Technology
c. Organizations
d. Environment
199. Which conflict resolution technique should be used when the deadline is critical and tasks
are at risk of slipping?
a. Accommodating
b. Forcing
c. Problem Solving
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d. Compromising
200. As a project manager, you are explaining your project team the difference between resource
histogram and responsibility assignment matrix. What does a resource histogram show that
a responsibility assignment matrix does not?
a. Time
b. Activity
c. Inter-relationships
d. Person in charge of each activity
Page 34 of 34

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Cash Flow Out

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49. The project phases are collectively known as, (54)

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d. When defects are detected

c. Monitoring work progress

d. Meet the sponsor to discuss the course of actions

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d. Poor Project Management Organization

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