Project Management Assignments/Practice Tests Ch9 -15

Regardless of what method is used to estimate project costs, estimates should be documented, and the level of confidence in the estimate should be described. a. True b. False

T

Which of these is NOT one of the four core project quality concepts? a. Vendor satisfaction b. Process management c. Fact-based management d. Empowered performance

a. Vendor satisfaction

During which phase of a project life cycle do recurring costs typically occur? a. Planning b. Selecting and initiating c. Closing and realizing d. Executing

d. Executing

Project managers should not lie to themselves or to anyone else regarding project costs. a. True b. False

T

Which of these is NOT one of the steps of the PDCA model? a. Plan b. Deliver c. Check d. Act

b. Deliver

Risks are typically discovered during which stage(s) of a project? a. Initiating b. Initiating and planning c. Initiating, planning, and executing d. Initiating, planning, executing, and closing

d. Initiating, planning, executing, and closing

In the United States, government, business, consulting, and academic specialists in quality worked together to develop a common means of describing Total Quality Management (TQM). Which of these is NOT one of the key TQM areas that form the core values of the Malcolm Baldrige Performance Excellence Award? a. Visionary leadership b. Customer focused excellence c. Agility and resilience d. Project quality management

d. Project quality management

Which of these is NOT an example of supporting detail pertaining to cost estimates? a. Description of the project scope b. Method used to create the estimate c. Assumptions and constraints d. Schedule milestones

d. Schedule milestones

What does a SWOT analysis examine? a. Strengths, weaknesses, options, and threats b. Strengths, warnings, opportunities, and threats c. Scenarios, weaknesses, opportunities, and threats d. Strengths, weaknesses, opportunities, and threats

d. Strengths, weaknesses, opportunities, and threats

Early in a project when very little detail is understood regarding a project, it is impractical to render even a rough estimate of the final project cost. a. True b. False

F

Perform Quantitative Risk Analysis evaluates the importance of each risk to categorize and then prioritizes risks to develop further actions. All teams should perform this analysis. a. True b. False

F

The component of the project management plan that includes forecasting and refining cost estimates of all the project activities throughout the duration of the project is called the financial management plan. a. True b. False

F

The primary output of Identify Risks is the Risk Identification Matrix (RIM). a. True b. False

F

The purpose of risk management is to eliminate all project risk. a. True b. False

F

A Resource Breakdown Structure (RBS) is a hierarchical organization of risks based on categories such as operational, strategic, finance, external, and project management. a. True b. False

F

A bit more information is needed to complete a parametric cost estimate as compared to an analogous estimate. a. True b. False

T

A contingency reserve is money assigned to the project and allocated for identified risks (known unknowns) that may or may not occur. a. True b. False

T

A project risk is anything that may impact the project team's ability to achieve the general project success measures and the specific project stakeholders' priorities - together, referred to as project objectives. a. True b. False

T

Cost estimating is linked very closely with scope, schedule and resource planning and is often performed simultaneously with creating the schedule. a. True b. False

T

Direct costs typically include the cost of direct labor as well as other direct costs for items such as consumable materials, travel, subcontracts, equipment, and computer time. a. True b. False

T

Estimate Cost is the process of developing an approximate and best guess of the monetary value of resources needed to complete all project activities. a. True b. False

T

Fixed costs are those that remain the same regardless of the size or volume of work, while variable costs vary directly with volume of use. a. True b. False

T

In Agile projects early risk planning, assessment and response planning is done at a high level, and more detailed and timely risk management occurs during the planning of each subsequent iteration, in daily stand-up meetings, and in retrospectives at the end of each iteration. a. True b. False

T

It is a good practice to encourage wide participation in risk management activities, as it brings a different perspective, and people work with great enthusiasm if they participated in the planning. a. True b. False

T

On Agile projects, estimating is iterative in that at the start only an order of magnitude estimate is created for the entire project at the same time the product owner is establishing the project vision. a. True b. False

T

On small projects, the cost management plan may be as simple as developing accurate estimates, securing the funding, and designing cost reporting procedures to ensure that the money is spent correctly.

T

Once risks have been identified and analyzed, the project team decides how they will handle each risk. a. True b. False

T

Perform Quantitative Risk Analysis is the process of developing insight using a detailed numerical estimate of the overall impact of the risk on project objectives. a. True b. False

T

Project risk response strategy decisions often must be made with a thorough understanding of the key stakeholders' priorities of cost, schedule, scope, and quality. a. True b. False

T

Risks that would adversely impact one or more project objectives are called threats, and those that have a positive impact on one or more project objectives are known as an opportunities. a. True b. False

T

The cost per risk for risks discovered early in the project is often less than the cost per risk for risks discovered later, because there will be an opportunity and time to make changes to the project plan. a. True b. False

T

The amount of money placed into contingency reserve is calculated during risk analysis and is often in the range of __________ to __________ percent of the total project. a. 5; 10 b. 10; 15 c. 15; 20 d. 25; 30

a. 5; 10

What is used to compare actual project spending with planned expenditures to determine if corrective action is needed? a. Cost baseline b. Critical path c. Cost estimate d. Cost management plan

a. Cost baseline

__________ is best known for creating the Quality Trilogy. a. Juran b. Ishikawa c. Harrington d. Senge

a. Juran

Which of these is NOT a risk strategy that is used specifically for dealing with opportunities? a. Mitigate opportunity b. Enhance opportunity c. Exploit opportunity d. Share opportunity

a. Mitigate opportunity

Complex projects such as research and development for new products often employ rolling wave planning to estimate costs. Which of the following best describes "rolling wave" planning? a. Project managers render a definitive estimate for the first stage and an order of magnitude estimate for the remainder of the project. b. Project managers render an order of magnitude estimate for the first stage and a definitive estimate for the remainder of the project. c. Project managers render definitive estimates for all stages of the project during initiation. d. Project managers render an order of magnitude estimate for all stages of the project.

a. Project managers render a definitive estimate for the first stage and an order of magnitude estimate for the remainder of the project.

Which of the following describes the activities appropriately performed by the project team during Perform Qualitative Risk Analysis? a. Team members assess the probability of occurrence and severity of impact for identified risks. b. Team members develop contingency plans for all risks to avoid adverse impacts to project objectives. c. Team members identify potential risk events. d. Team members define how to conduct risk management activities for the project.

a. Team members assess the probability of occurrence and severity of impact for identified risks.

What does the Agile term "shift left" mean? a. Teams work exclusively on verifying a specific approach, and adjust their thinking by testing as early as practical in the project anything that will need to be tested at a later stage. b. Move stories from In Progress status on the Kanban board to the left, back to Product Backlog. c. Remove decimal places from estimates. d. Move from various locations to a co-located team environment.

a. Teams work exclusively on verifying a specific approach, and adjust their thinking by testing as early as practical in the project anything that will need to be tested at a later stage.

"Unknown unknowns" are unexpected events which can occur when the project is underway. All of the following accurately describe an implication associated with unknown unknowns EXCEPT: a. They are usually discovered during risk identification b. They need to be covered in the project budget. c. They usually require the use of management reserve. d. They usually cause an increase in cost and / or schedule.

a. They are usually discovered during risk identification

A __________ estimate is also referred to as a single-point estimate. a. deterministic b. probabilistic c. definitive d. order of magnitude

a. deterministic

An indirect cost is described as a cost that __________. a. is necessary to keep the organization running, but is not associated with one specific project. b. only occurs because of the project and is often classified as direct labor or other direct costs. c. repeats as the project work continues d. occurs when the project must be conducted faster than normal

a. is necessary to keep the organization running, but is not associated with one specific project.

Which of the following terms best describes extra money in the project budget to be used if necessary - usually if a risk event occurs? a. reserve b. insurance c. padding d. discretionary fund

a. reserve

In Agile projects, teams adjust their thinking so they test as early as practical anything that will ultimately need to be tested in order to reduce risk, improve quality, and improve the accuracy of estimates. This practice is referred to as: a. shift left b. time box c. spike d. planning poker

a. shift left

All of the following criteria can be used to categorize project risks EXCEPT: a. whether the risk is a known known b. what project objective may be impacted by the risk (cost, schedule, scope and / or quality) c. whether the risk is internal or external to the performing organization d. when it occurs in the project life cycle

a. whether the risk is a known known

The project manager at a software company predicts a project's costs based on previous projects that were similar to the current project. What type of cost estimating are they using? a. Parametric b. Analogous c. Bottom-up d. Rolling wave

b. Analogous

How can the project manager come up with a credible estimate for the new space quickly? a. Tell the manager that you can't come up with an estimate in a few hours. b. Ask the manager questions about the new office space to understand the departments that will be located there, the level of finishes desired, etc. Then base the new budget on previous, similar projects. c. Create a work breakdown structure by using another previous project and generate a bottom-up estimate for each work package. d. Go through all office buildouts for the past five years. Calculate an average construction cost per square foot and multiply the 5,000 square feet by this historical cost per square foot to calculate the budget.

b. Ask the manager questions about the new office space to understand the departments that will be located there, the level of finishes desired, etc. Then base the new budget on previous, similar projects.

__________ was the influential thought leader in the area of quality who created the Profound Knowledge System. a. Juran b. Deming c. Taguchi d. Crosby

b. Deming

Which of these is NOT an example of an external stakeholder? a. The public b. Functional areas within the organization c. Customers d. Suppliers

b. Functional areas within the organization

The cost management plan provides guidelines to the project manager and other stakeholders and serves all of the following purposes EXCEPT: a. It shows how to develop and share relevant, accurate and timely cost information that the project manager, sponsor, and other stakeholders can use to make intelligent and ethical decisions. b. It documents all of the project risks and the amount of reserves required. c. It helps all project stakeholders focus appropriately on schedule and cost performance. d. It provides feedback, thereby showing how the project's success is linked to the business objectives for which it was undertaken.

b. It documents all of the project risks and the amount of reserves required.

20This term refers to improving the accuracy and elaborating the scope plan continuously with more detailed and specific information as the project progresses, leading to a better and more accurate cost estimate with each successive plan iteration. a. empirical estimating b. progressive elaboration c. grass roots estimating d. analogous estimating

b. progressive elaboration

All of the following are benefits that can be attributed to the effective use of a risk management plan EXCEPT: a. It enables project managers to eliminate or reduce the impact of some threats. b. It enables the project manager to identify and eliminate all risks. c. It facilitates communication with various project stakeholders during project execution. d. It enables project managers to capitalize on some opportunities.

b. It enables the project manager to identify and eliminate all risks.

__________ estimates are often used to seek initial project charter approval. a. Budget b. Order of magnitude c. Definitive d. Parametric

b. Order of magnitude

__________ is "the process of identifying quality requirements and/or standards for the project and its deliverables and documenting how the project will demonstrate compliance with quality requirements and/or standards." a. Fact-based management b. Plan quality management c. ISO 9001:2015 d. Manage quality

b. Plan quality management

Which of these is NOT one of the general categories of typical project success measures? a. Meeting project agreements b. Quality improvements c. Project outcome met the customers' needs d. Project helped the performing organization

b. Quality improvements

All of the following describe an appropriate application of Plan Risk Responses in project management EXCEPT: a. Risk response planning should address both opportunities and threats. b. Responses should be created for every identified project risk, regardless of the risk score. c. The expectations of the sponsor and key stakeholders should influence the risk responses that are developed. d. Often multiple strategies are identified for a single risk.

b. Responses should be created for every identified project risk, regardless of the risk score.

A __________ is an analytical technique to ascertain the fundamental or causal reason or reasons that affect one or more variances, defects, or risks. a. SWOT analysis b. Root cause analysis c. Delphi technique d. Brainstorming technique

b. Root cause analysis

Which of the answers below is NOT one of the three types of data that Microsoft Project uses to compute each assignment's cost value? a. Assignment work hours b. Task costs c. Resource standard rate d. Resource overtime rate

b. Task costs

The approved budget, with contingency reserves and any amount of management reserve that has already been approved) serves as a(n) ??? for project control. a. estimate. b. baseline. c. benchmark d. control account

b. baseline.

The time value of money is relevant to project management because: a. the project manager must balance the timing of project cash inflows and outflows. b. discounting the value of future revenue and cost streams enables better project decisions. c. it is important to understand how to calculate the cost of regular and overtime labor. d. as time passes on a project, money is spent.

b. discounting the value of future revenue and cost streams enables better project decisions.

What type of cost is incurred when a project must be conducted faster than normal, and overtime for workers and / or extra charges for rapid delivery from suppliers are necessary? a. marginal costs b. expedited costs c. nonrecurring costs d. variable costs.

b. expedited costs

Agile teams and their product owners often agree early in a project to perform a ____________, a short period when the only thing the team works on is a large identified risk that could upset the entire project. a. prototyping exercise b. risk-based spike c. mitigation strategy d. risk retrospective

b. risk-based spike

When a project team elects to purchase insurance, or adopts a fixed price contract with a vendor, or hires an expert, it is demonstrating which of the following risk response strategies? a. avoid a threat b. transfer a threat c. mitigate a threat d. assume a threat

b. transfer a threat

A key supplier of materials for your project has not been returning your calls or responding to your e-mails. This is an example of a __________, which indicates that a risk is likely to occur. a. bad business relationship b. trigger condition c. risk avoidance d. risk transfer

b. trigger condition

With respect to risk, Agile teams assume ________ and plan with the flexibility to make necessary adjustments. a. the worst b. variability c. the best d. Responsibility

b. variability

During Agile project estimating, a "spike" is undertaken when the team __________. a. wants to develop a definitive cost estimate for the entire project b. wants to work exclusively on verifying a specific approach to lessen risk c. agrees to "shift left." d. agrees to do value engineering

b. wants to work exclusively on verifying a specific approach to lessen risk

All of these are ways to categorize project risks EXCEPT: a. when they occur in the project life cycle. b. who identified the risk. c. what project objective may be impacted (scope, time, cost, etc.). d. whether the risk is internal or external to the organization.

b. who identified the risk.

Which of these methods of estimating can produce the most accurate estimate? a. Parametric b. Analogous c. Bottom-up d. Rolling wave

c. Bottom-up

All of the following describe the appropriate application of Perform Quantitative Risk Analysis to projects EXCEPT: a. Large, complex and expensive projects stand to benefit from the additional rigor of quantitative risk analysis techniques. b. Quantitative techniques are used when it is critical to predict with confidence the probability of completing a project on time, on budget and with the agreed-upon scope and/or quality. c. Brainstorming techniques are used by the team and other stakeholders to identify as many project risks as possible during quantitative risk analysis. d. Decision Tree Analysis and simulation techniques such as Monte Carlo simulation are useful quantitative risk analysis techniques.

c. Brainstorming techniques are used by the team and other stakeholders to identify as many project risks as possible during quantitative risk analysis.

Six Sigma uses a 15-step disciplined process called the __________ process to plan and manage improvement projects. a. SIPOC b. TQM c. DMAIC d. ISO 9001:2015

c. DMAIC

What type of costs do NOT depend on the size of the project? a. Variable costs b. Direct costs c. Fixed costs d. Indirect costs

c. Fixed costs

During which risk planning process is each risk assigned a probability and impact score? a. Plan risk management b. Identify risks c. Perform qualitative risk analysis d. Perform quantitative risk analysis

c. Perform qualitative risk analysis

__________ is defined as a practice, primarily concerned with overall process improvements to ensure that every deliverable produced is error free. a. Manage quality b. Control quality c. Perform quality assurance d. Plan quality management

c. Perform quality assurance

Which of these is an example of an expedited cost? a. The team completes a major deliverable within the normal 40-hour work week. b. New computers are delivered per the agreed dates in the executed purchasing agreement. c. Production work is halted in the factory due to lack of inventory, and management pays extra for rapid delivery of additional material. d. Summer months are slow for the company so management establishes summer hours, where everyone gets Friday afternoons off.

c. Production work is halted in the factory due to lack of inventory, and management pays extra for rapid delivery of additional material.

What type of risk analysis is NOT required on all projects? a. Identify risks b. Qualitative risk analysis c. Quantitative risk analysis d. Risk response planning

c. Quantitative risk analysis

A ________ presents a hierarchical organization of risks based on categories such as operational, strategic, finance, external, and project management. a. Risk Management Plan b. Risk Register c. Risk Breakdown Structure (RBS) d. Decision Tree

c. Risk Breakdown Structure (RBS)

Which of the following quantitative risk analysis techniques is used to determine which risks have the most impact on the project outcomes or goals, with results displayed in the form of a tornado diagram? a. Failure Mode and Effects Analysis (FMEA) b. Expected Monetary Value (EMV) c. Sensitivity Analysis d. Simulation Techniques such as Monte Carlo Analysis

c. Sensitivity Analysis

In the risk register, why should one person be designated as the "owner" of the risk? a. So that they can be congratulated when the risk is mitigated b. So that they can be blamed if the risk is triggered and causes major project problems c. So that they can be responsible for determining if it's about to be triggered, and implementing the strategy d. So that they will be responsible for administering the management reserves

c. So that they can be responsible for determining if it's about to be triggered, and implementing the strategy

Which of these is NOT one of the reasons that it is better to design quality into a process than to find problems upon inspection? a. It costs more to make junk and then remake it to obtain good outputs. b. Having to do rework aggravates schedule pressure on projects. c. The saying that the team should meet expectations but exceed requirements. d. Even the best inspectors do not find every mistake.

c. The saying that the team should meet expectations but exceed requirements.

Which of the following describes how the team uses a cause-and-effect / fishbone diagram to support project risk analysis? a. The project team begins by identifying strengths, weaknesses, opportunities and threats. b. The team organizes assumptions and constraints in a fishbone pattern. c. The team first lists the risk as the "effect" in a box at the head of a fish, then labels the big bones based on major causes contributing to the effect. d. Team members are encouraged to keep asking "when?" to break down risks into more detailed causes.

c. The team first lists the risk as the "effect" in a box at the head of a fish, then labels the big bones based on major causes contributing to the effect.

__________ is defined as a formal and structured approach to reducing cost without decreasing the quality or performance. a. Vendor bid analysis b. Life cycle costing c. Value engineering d. Time value of money

c. Value engineering

Which estimating technique decomposes the work into lower, more detailed pieces, preferably the lowest level of WBS work elements, for which estimates are prepared and then aggregates them into a total quantity for the project? a. piece meal pricing b. decomposition estimating c. bottom-up estimating d. grass roots estimating

c. bottom-up estimating

An example of a nonrecurring cost is __________. a. cost of writing code b. cost of laying bricks c. developing a design that, once approved, guides the team d. cost of running an assembly line in a factory

c. developing a design that, once approved, guides the team

Project kickoff meetings are conducted for many reasons. All of these are reasons for conducting a project kickoff meeting EXCEPT to: a. allow all project stakeholders to express their legitimate needs and desires. b. enable the project manager to use their influence to get everyone excited about the project. c. document the lessons learned for the project. d. allow all key stakeholders to see how all the pieces of the project fit together.

c. document the lessons learned for the project.

The process of developing an approximate and best guess of the monetary value of resources needed to complete all project activities is known as: a. determine budget. b. estimate resources. c. estimate cost. d. estimate activities.

c. estimate cost.

Projects often include indirect costs that are necessary to keep the organization running, but are not associated with one specific project. Which of the following items are most typically considered to be indirect costs? a. costs associated with material and purchased parts b. the cost of labor provided by project team members, consultants and subcontractors c. executive salaries, utilities, insurance and clerical assistance d. travel cost for the project team

c. executive salaries, utilities, insurance and clerical assistance

With respect to creating a contingency plan for risks, __________. a. risks do not require a contingency plan b. all risks require a contingency plan c. only high-scoring risks require a contingency plan d. only positive risks or opportunities require a contingency plan

c. only high-scoring risks require a contingency plan

Control quality is the activities used to verify that deliverables are of acceptable quality and that they are complete and correct. All of these are quality control activities EXCEPT: a. inspection. b. deliverable peer reviews. c. quality audits. d. testing process.

c. quality audits.

A fixed cost is described as a cost that __________. a. is necessary to keep the organization running, but is not associated with one specific project b. only occurs because of the project and is often classified as direct labor or other direct costs c. remains the same regardless of the size or volume of work d. varies with the volume of use

c. remains the same regardless of the size or volume of work

The cost management plan includes forecasting and refining cost estimates of all the project activities throughout the duration of the project, and it is integral to the cost management planning process. This plan contains descriptions, procedures, and responsibilities for all of these EXCEPT: a. cost estimating. b. budget determination. c. resource roles and responsibilities. d. cost control.

c. resource roles and responsibilities.

A project risk is anything that may impact the project team's ability to achieve the general project success measures and the specific project stakeholder's priorities. A negative impact is known as a(n) __________, while a positive impact is known as a(n) __________. a. issue, benefit b. issue, opportunity c. threat, opportunity d. threat, benefit

c. threat, opportunity

A Fortune 100 company is about to undertake a $50 million construction project to build a new office building. As a condition of hiring a general contractor for the construction, they require the contractor to secure a performance bond to guarantee their work and performance under this contract. This is an example of __________ project risk. a. avoiding b. mitigating c. transferring d. accepting

c. transferring

Which of these is NOT a reason for listing assumptions in the cost estimate? a. Two people from different backgrounds may view a situation differently. b. Assumptions that are not true often cause more work or manifest as risks. c. As more details are available, a project manager may review assumptions to uncover those that have now proven to be false. d. Because assumptions reflect problems that will definitely happen during the course of the project.

d. Because assumptions reflect problems that will definitely happen during the course of the project.

Relative to the project life cycle, when is the cost per risk discovered typically highest? a. Initiating b. Planning c. Executing d. Closing

d. Closing

A __________ variation is the result of the product design and the method of making it, and is exhibited by a random pattern within predictable limits. a. Six Sigma variation b. Special cause variation c. Root cause variation d. Common cause variation

d. Common cause variation

Who should be involved in identifying potential risks for a project? a. Sponsor b. Project manager c. Team d. Everyone

d. Everyone

A manufacturing company will be purchasing two sophisticated pieces of equipment for the factory floor. The project manager for this procurement has distributed the detailed specifications to a number of vendors and is waiting for the bid responses. When analyzing the vendor's bids, the PM can do a number of things to determine if the vendor's bid prices appear to be reasonable. Which of these actions would NOT be appropriate for the vendor bid analysis? a. Compare the bids and assume that the lowest responsible offer is fair. b. Review business publications and industry websites to determine if the prices are in line with industry standards. c. Select one of the lower-priced vendors with a good reputation and negotiate with them for the best price. d. Implement activity-based costing (ABC)

d. Implement activity-based costing (ABC).

The primary output of risk identification is the risk register. All of these information is typically contained in the risk register EXCEPT: a. risk response strategy. b. risk owner. c. probability of occurrence. d. date risk identified.

d. date risk identified.

Project managers can identify risks by learning and understanding the cause-and-effect relationships of risk events. All of the following approaches can be used to learn about the cause-and-effect relationships of risk events EXCEPT: a. develop a flow chart that shows how people, money, data or flow from one person or location to another b. conduct a root cause analysis c. understand a trigger condition or a situation identified in advance that prompts us to invoke a risk strategy or risk action d. perform a Monte Carlo analysis

d. perform a Monte Carlo analysis

The term __________ is defined as "the characteristics of a product or service that bear on its ability to satisfy stated or implied needs." a. value b. Six Sigma c. customer satisfaction d. project quality

d. project quality

Costs that repeat as project work continues such as the cost of writing code or laying bricks are appropriately classified as: a. fixed costs. b. indirect costs. c. nonrecurring costs. d. recurring cost

d. recurring costs