PMP - test Flashcards

Terms Definitions

Resource Capabilities
Outputs Scope Definition
Project Scope Statement
Requested Changes
Project Scope Management Plan Updates
Outputs Scope Definition

Risk Management Plan
Cost estimating:
A. Involves developing an estimate of the costs of the resources needed to complete project activities.
B. Includes identifying and considering various costing alternatives.
C. Involves allocating the overall estimates to individual work

Arrow diagramming method (ADM)
achievement theory
achievement , power, affliation
Complex projects, involving cross­disciplinary efforts, are most effectively managed by a:
a. projectized organization.
b. functional organization.
c. strong matrix organization.
d. strong virtual organization.
Answer: c
A person's negotiating skills/temperament certainly are influenced by his/her culture. However,
other factors, such as education and experience, also are at work. And over time, an individual
who is living in a culture that is different from his or her
Answer: d
Intergration Management Process Outputs - Develop Project Charter
Project Charter
'Quantitative Control'
'Any quantitative or statistically-based technique appropriate to analyze a software acquisition process
Process of HR management
planning and executing
Inputs schedule development
Organizational process assetsProject scope statementActivity listActivity attributesProject schedule network diagramsActivity resource requirementsResource calendarsActivity duration estimatesProject Management plan Risk register
Scope Definition Inputs?
Inputs: (1)Scope Statement, (2)Constraints, (3)Assumptions, (4)Other Planning Outputs, (5)Historical Information
Project Cost Management includes all of the following except:
A. Resource leveling
B. Resource planning
C. Cost estimating
D. Cost budgeting
E. Cost control
The contract administrator should provide ___________ at formal closure of project I. Formal notice of project completion to the contractor II. Letters of commendation to all project staff III. Formal notice of acceptance to the contractor IV. Internal no
Answer: C
Scope verification differs from quality control in that it is primarily concerned with
a. Acceptance of the work results while quality control is primarily concerned with the
correctness of the work results.
b. Correctness of the work results while qua
Answer: a
The customer-project manager relations are perhaps the most important aspect to the successful implementation of the project work because ________.
A. the customer is always right in defining the contract
B. the customer doesn't understand project managem
Answer: C
Accelerated depreciation allows a company to write capital expenses off its taxes more quickly. Which of the following is a recognized method of accelerated depreciation?
A. Straight-line
B. Double-declining balance
C. Rapid capital deduction
D. A and B
Answer: B
Project information has been distributed according to the communications plan. Some project deliverables have been changed. Those changes were made according to the change control plan. One stakeholder expressed surprise to the project manager upon being
Performance reporting is important during administrative closure in order to:
A. show progress made on tasks.
B. communicate the team's success.
C. gain approval to start the lessons learned.
D. in order to prove formal acceptance has been achieved.
Define Portfolio
Investment in projects and programs
Aligned to company strategic goals
Cost Management Processes - Controlling
Cost Control
What qualities should project team members possess?
'There may be external circumstances or events that must occur for the project to be successful. If you believe such an event is likely to happen
'Cost Plus Incentive Fee Contract (CPIFC) - A type of Contract where the buyer reimburses the seller for the seller#s allowable costs and the seller earns a profit if defined criteria are met.'
a complete avoidanec of the issue; postponign a decision- high emotion
Functional Organization
An organizational structure in which staff are grouped hierarchically by specialty (e.g., production, marketing, engineering, accounting) at the top level and then further divided within specialty
Cost Control Inputs?
Inputs: (1)Cost Baseline, (2) Performance Reports, (3)Change Requests, (4)Cost Management Plan
Contingency Fund?
Allows for future situations which may be planned for only in part.
The project manager's role during execution of the project can BEST be described as a(n):
A. director.
B. integrator.
C. coordinator.
D. leader.
The specification for a particular part is 10" 0.015". The associated process produces parts with the mean of 10" and a standard deviation of 0.002". The process capability index is:
a. 0.0002
b. 1.0
c. 2.5
d. Cannot be calculated with
Answer: c
From the project perspective, quality attributes
A. are used to determine how effectively the performing organization supports the project
B. can be objective or subjective in nature.
C. are specific characteristics for which a product is designed, built.
Answer: D
Most project managers spend about ___________ of their work time engaged in some form of communications
A. 10%
B. 30%
C. 50%
D. 70%
E. 90%
Answer: E
The three principal reasons for maintaining good document control are
A. Timely communication, collection of performance appraisal data, and assuring proper disposal of sensitive documents
B. Timely communication, maintaining proper approvals, and communi
Answer: C
During the project closeout phase, most conflict arises from
A. Schedule problems
B. Cost overruns
C. Technical problems
D. Working interfaces
E. Personality conflicts
Answer: A
The networking vendor has contacted the project manager to inform her that the recent earthquake will impact the delivery of critical components. The project team must meet to determine the impact to the overall project. It is determined that staffing wil
Unlike bar charts, milestone charts show
A. Scheduled start or completion of major deliverables and key events
B. Activity start and end dates
C. Expected durations
D. Dependencies
E. Logical relationships and critical path
Answer: A
Paraphrasing can be achieved by restatement
A. In different terms
B. From general to specific terms
C. From specific to general terms
D. In opposite terms
E. All of the above
Answer: E
Which of the following statements about the cost of quality are true?
A. The cost of quality is the expense of nonconformance to requirements and specifications
B. The costs of quality are mostly the direct responsibility of workers who are manufacturing
Answer: A
The process of determining that technical processes and procedures are being performed in conformance with scope requirements and quality plans is called quality
A. management.
B. assurance.
C. process review.
D. control.
E. checks.
Answer: D
A purchasing operation does not contain this classification of work
A. Management
B. Buying
C. Follow up and expedition
D. Marketing
E. Clerical
Answer: D
Inputs to scope verification include the following
a. Work results, project documentation, work breakdown structure, scope statement, and project
b. Work results, product documentation, work breakdown structure, scope statement, and
project plan
Answer: b
Rework costs ____ times budgeted costs.
A. +75, -25
B. +25, -10
C. 85
D. 10 to 15
E. 25 to 50
Answer: E
With triangular distribution, the low, likely and high values are 15, 20 and
40, respectively. The mean is _____.
A. 20.0
B. 22.5
C. 25.0
D. 27.5
Answer: C
If the acceptance sampling attribute for a production lot is 20 percent
a. Twenty percent of all lots must be test
b. Twenty percent of all lots must pass the test
c. Any given lot must have 20 percent or fewer defects
d. A sampling of a given lot mus
Answer: d
During project execution, a project team delivers a project deliverable to the customer. However, the customer neither acknowledges the deliverable nor says if it is acceptable, although an approval is required. What is the BEST thing to do?
A. Continue w
Learning curve theory emphasizes that in producing many goods:
a. cost decreases as production rates increase.
b. average unit cost decreases as more units are produced.
c. materials become cheaper when they are purchased in bulk.
d. laborers become more
Answer: b
Documents that serve as historical records for future projects are archived:
A. throughout the project.
B. before the end of planning.
C. before the end of execution.
D. during closure.
A project schedule completion date will change if:
a. the critical path is shortened.
b. contingency funds are used.
c. float time is allocated too late.
d. project resources are added early.
Answer: a
The project manager schedules a quarterly technical review with the customer to assure him/her that the project is progressing as planned. The project manager plans a series of briefings on the cost, schedule, and technical aspects of the project that sho
Answer: B
Outputs Cost Estimating
Activity cost estimates
Activity cost estimates supporting detail
Requested changes
Cost manaement plan updates
Outputs Cost Estimating
Time Management Processes - Schedule Control
Schedule Updates
Delphi technique
Means of gathering expert opinion where participants don't know who the others are. Seeks to eliminate group think to get participants' real opinions.
Communications Processes - Monitoring & Controlling
-Performance Reporting
-Manage Stakeholders
'Project Oriented'
'Typically organizations who have a predisposition to use projects as their corporate business approach
'Baseline at Completion (BAC) - Total completed cost of work as originally planned.'
'Cross-Stage Plan'
'A detailed plan showing activities that span more than one stage in the project life cycle.'
Name the Planning Process for Quality
Quality Management
Plan Quality - inputs
Inputs: Scope baseline, stakeholder register, cost performance baseline, schedule baseline, risk register, enterprise environmental factos, organizational process assets
Is a technique in which cost and schedule tradeoffs are analyzed to determine how, if at all, to obtain the greatest amount of compression for the least incremental cost. Does not always produce a viable alternative and often results in increased cost
A group of related projects that are managed in a coordinated way:a. Major projectb. Project officec. Enterprised. Programe. Group of projects
An estimating technique that uses the values of parameters, such as scope, cost, budget, and duration from a previous, similar activity for estimating for future activity.
Analogous Estimating

(Activity Duration Estimation)
If a project team is subdividing project work packages into smaller, more manageable components, they are:
A. creating a WBS.
B. decomposing.
C. network diagramming.
D. activity sequencing.
All the following come after scope definition EXCEPT?
A. Activity duration
B. Resource planning
C. Cost estimating
D. Scope planning
When a product or service completely meets a customer's requirements
A. quality is achieved.
B. cost of quality is high.
C. cost of quality is low.
D. the customer pays the minimum price.
E. a and b.
Answer: A
The majority of product defects could be prevented in most processes if manufacturers would do the following
A. Increase the use of acceptance control charts instead of standard three-sigma control charts
B. Make a concerted effort to eliminate the potent
Answer: B
Which term describes the failure by either the buyer or seller to perform part or all of the duties of a contract?
A. Termination of contract
B. Partial performance
C. Breach of contract
D. Contract litigation
E. Contract waiver
Answer: C
An input to project plan execution includes the:
A. cost plan.
B. risk plan.
C. schedule.
D. project plan.
The quality management tool that can be described as "a diagram that ranks and displays defects in order of frequency of occurrence (from left to right)" is a
A. control control
B. vertical bar chart.
C. histograms.
D. Pareto chant.
E. run chant
Answer: D
The core planning processes are:
A. Scope definition, Resource planning, Cost estimating, Schedule
development, Activity definition
B. Inputs, Control, Status reports, Risk management
C. Planning, Resource planning, Quality assurance, Risk control
Answer: A
The level of detail of performance reports is described in the:
A. charter.
B. communications plan.
C. monthly requests for information by management.
D. project's monthly needs.
Each project needs a quality program plan to define the parameters of the overall approach to meeting quality requirements. As a minimum, the quality program plan addresses ________.
A. the required processes and procedures
B. the inspection plan
C. the t
Answer: E
When the project team is not collocated, establishing a way to help team members communicate quickly and frequently is essential. One practical approach is to
A. Bring everyone together frequently for meetings
B. Conduct informal audio-conference meetings
Answer: B
The most common non-behavioural reason for projects being completed behind schedule and over budget is:
a. Wrong choice of a Proj Manager
b. Accepting high risk
c. Ill-defined requirements
d. Wrong choice of a Proj Sponsor
Answer: c
(Kerzner 583-5)
Similar to a small project, the proposal preparation process is started by a ________ meeting where the technical, legal, and compensation considerations are reviewed and assignments of responsibility are made.
A. preliminary proposal
B. planning and appr
Answer: C
. The proposal preparation is in itself a short-term project that requires intense effort to be completed in the owner's (buyer's) format and time frame, while being responsive to the requirements of the formal invitation for bid. A company bidding for pr
Answer: E
Materials management is crucial to the success of the project when resources are needed at a specified time and place to ensure continued progress. An assessment of the materials costs should consider not only the cost of purchase but also ________.
A. tr
Answer: C
To determine EAC, the project manager can
A. Take actuals to date plus the remaining project budget modified by a performance factor
B. Take actuals to date plus a new estimate for all remaining work
C. Take actuals to date plus the remaining budget
D. A
Answer: E
There are usually two types of reserves in a project's budget. The ________ reserve is for cost variances from the plan because of inaccurate estimates or pricing and costs overruns, while the ________ is to accommodate costs for project work that were no
Answer: C
Because of the investment or risk associated with a project, the decision may be to ensure a high profitability. When this is the case, senior management should agree on profit ________ of the project.
A. capability at the beginning
B. margin (rate) at th
Answer: D
The four key stakeholders on every project are
A. Senior managers, customer, sponsor, and functional managers
B. Project manager, project team, senior managers, and customer
C. Project manager, customer, performing organization and sponsor
D. Project mana
Answer: C
The three major types of communication are
A. Written, oral, and graphic
B. Written, oral, and visual
C. Verbal, written, and electronic
D. Verbal, formal documentation, and informal documentation
E. Verbal, project records, and computerized
Answer: C
A key activity for achieving customer satisfaction is to define customer:
a. benefits.
b. requirements.
c. feedback.
d. preferences.
Answer: b
Just-in-time (JIT) is the concept of reducing inventories to
A. 25% of former stock.
B. Less than half of former stock.
C. 75% of peak stock.
D. zero stock.
E. 15% of the cost of the product for a planned stock.
Answer: D
__________ is a formal invitation to submit a price for goods and/or services as specified.
A. Request for Quotation
B. Bid Response
C. Intention for Bid
D. Invitation for Bid
E. Request for Proposal
Answer: A
If the level of conformance directly increases as a result of new processes. different resources, or changed methods. the required cost of monitoring is likely to
A. increase as well.
B. remain the same.
C. decrease.
D. decrease initially then increase sl
Answer: C
In a precedence diagram (PDM), the nodes are the activities and each represents a discrete activity. The placement of the connecting lines to other activities are significant because the lines show ________.
A. one of the four relationships of connectivit
Answer: A
CV = EV – AC

(-) defines over budget.
(+) defines under budget.
application areas
Application areas are the areas of business, industry, and trade about which the project manager may need special knowledge. Common application areas include legal issues, technical issues, engineering information, and manufacturing information
Cost Control - Tools
Cost Change Control System
Performance Measurement Analysis
Project Performance Reviews
Project Management Software
Variance Management
Quality Management Processes - Quality Planning
Quality Management Plan
business need
relates to the need of the organizations itself
'Quality Criteria'
'The characteristics of a product that determines whether it meets certain requirements.'
'Cost Benefit Analysis'
'An analysis of the relationship between the costs of undertaking a task or project
'Contingency Reserve'
'A provision held by the project sponsor for possible changes in project scope or quality. Scope and quality changes constitute changes in the project manager#s mandate and will affect the project#s cost and schedule.'
'Risk Avoidance'
'The process of planning activities so as to avoid identified risks by using an alternative method.'
Project Definition
A project is a temporary endeavor undertaken to create a unique product ,service or result
parametric estimate
based on the use of parameter and repetitve units of identical work.
Planned Value (PV)
The physical work scheduled, plus the authorized budget to accomplish the scheduled work. Previously, this was called the budgeted costs for work scheduled (BCWS)
Activity Sequencing Tools and Techniques?
Tools and Techniques: (1)Precendence Diagramming Method(PDM), (2)Arrow Diagramming Method(ADM), (3)Conditional Diagramming Methods, (4)Network Templates.
Which type of warranty is enacted if a service or product does not meet the level of quality specified in the contract?

A. Implied warranty of merchantability
B. Implied warranty of specified quality
C. Express warranty
D. none of the above
. Investors are often used to obtain the necessary financing for major projects, which can transfer the ownership to the investors. The system is then leased back for operation and use. The major advantage for the investors is ________ , and the major adv
Answer: C
In the closing phase of your project, a number of administrative issues must be completed. A
concern is to assess project effectiveness. One way to accomplish this task is to­­­
a. Prepare a performance report
b. Perform an inspection
c. Hold a per
Answer: c
Who provides the KEY support role in creating project plans?
A. Senior manager
B. Functional managers
C. Project manager
D. Project team
As one of its goals the project organization has quality to specified performance measures. When compared with the functional organization, the project organization ________.
A. achieves higher levels of quality
B. is always tailored to meet the specific
Answer: C
Which contract type should be used by the owner on a high risk project?
A. Cost Plus Percentage of Cost
B. Cost Plus Incentive Fee
C. Lump Sum
D. Fixed Price Plus Incentive Fee
E. C and D
Answer: C
You are managing a project to develop nutritional soda for the "under 20" market. You have
recently heard that the client calls your progress reports the "Code of Crap" because they seem
to be written in a foreign language and incomp
Answer: d
The cost of quality is needed to identify opportunities for improvement. The cost of quality is, therefore, defined as the dollar value associated with ________.
A. producing a product that meets the requirement
B. nonconformance to the requiremenT
C. any
Answer: B
Zero Defects is an element of the quality management philosophy that is a ________ for all workers to be achieved ________.
A. slogan; whenever possible
B. slogan; most of the time
C. standard; at all times
D. standard; whenever possible
E. standard; duri
Answer: C
Which of the following is / are associated with a buyer's request for material to meet a particular need?
a. Implied warranty of fitness for a particular purpose.
b. Material guarantee
c. Material warranty
d. Implied warranty of salability.
Answer: a
After the contract has been signed for the upgrade of 8,000 workstations, a project manager is assigned. The proposal manager is relatively new and doesn't have as much related knowledge as the project manager. The cost analyst works from home and his pri
FFP is an acronym for
A. Free Flow Performance
B. Fundamentally Fixed Price
C. Firm Fixed Price
D. Free Form Project
E. Fixed File Procurement
Answer: C
A project manager and her team worked together to develop a work breakdown structure. However, it seems project team members are doing work that is not included in the work breakdown structure. The purpose of a work breakdown structure is to:
A. guide the
Who is a stakeholder
People involved with project; interest may be impacted by project
Procurement Processes - lie in which process groups?
-Planning (2)
-Executing (2)
-Monitoring & Controlling (1)
-Closing (1)
Human Resource Management Processes - Human Resource Planning
Roles & Responsibilities
Staffing Management Plan
'Bottom Up Cost Estimate'
'An estimate derived by summing detailed cost estimates of individual work packages (labor and materials) and applying appropriate cost burdens.'
'Management by Objectives'
'(MBO) - A management theory that calls for managing people based on documented work statements mutually agreed to by manager and subordinate. Progress on these work statements is periodically reviewed
'Estimate Class D'
'An Order of Magnitude estimate only. In all cases
'Implied Warranty'
'The legal theory that when an owner requires a contractor to execute a project in accordance with plans and specifications supplied by the owner
Team Development- Tuckman- storming
team members fight for positions as they attempt to establish themselves in relation to other team members and leaders.
A schedule network analysis method used to determine the amount of scheduling flexibility(amount of float) on various logical network paths to determine the minimum project duration. Forward pass to get early start and finish dates/Backward pass to get la
Critical Path Method (CPM)

(Schedule Development)
Which is not a consideration in a make or buy decision?
A. Cost factors
B. Sales Volume
C. Existence of sufficient administration/technical personnel
D. Political and, social factors with the organization
Answer: B
A process that is not part of Project Risk Management is:
A. Identification
B. Solicitation
C. Quantification
D. Response Development
Answer: B
15. Project Mgmt / Project planning can address:
a. Long range / strategic planning (5yrs or more)
b. Intermediate range planning ( 1 to 5 yrs)
c. Short range/ tactical planning (1 yr or less)
d. b and c
Answer: d
(Kerzner 9/97)
What does project cost include?
* Informing stakeholders of approved changes
* monitoring cost performance to detect variances from cost baseline
* bring expected cost overruns within acceptable limits
* ensuring requested changes are agreed upon
Inputs to Developing a Project Charter
Project Statement of Work
Business Case
Enterprise environmental factors
Organization process factors
'Dual Concern Model'
'A graphical display in which the five negotiating strategies are plotted with Concern about Own Outcomes (X-axis) against Concern for Other Side#s Outcomes (Y-axis).'
Rule of 7 in stability anaylsis
seven consecutive data points on either side of the mean , may indicate an out of control situation
The company is taking a vote to see if the contracts department should be split up and reassigned to projects or remains intact. A contract professional might not want this to occur because they would lose ___________ in a decentralized contracting enviro
Actual Cost (AC) is also known as...
Actual Cost of Work Performed
'Finish to Finish Lag'
'The minimum amount of time that must pass between the finish of one activity and the finish of its successor(s). All lags are calculated when a project has its schedule computed. Finish-to Finish lags are often used with Start-to-Start lags.'
What are the 5 Scope Process Outputs
Scope Planning, Scope Definition, Create WBS, Scope verification, Scope Control
Earned Value Formulas - Variance at Completion (VAC)
The difference between what was budgeted and what will actually be spent
Why is the WBS important
It becomes a hub of information for the project. Time and cost are mapped back to it, work is measured against it and deliverables are ultimately compared to it.
'Cost Plus Incentive Fee Contract'
'(CPIFC) A type of Contract where the buyer reimburses the seller for the seller#s allowable costs and the seller earns a profit if defined criteria are met.'
How does project management relate to other managerial functions?
Most of the knowledge and skills that a project manager neeeds are unique to the project management process
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