Project management test 3

The documentation of a project cost estimate generally requires substantial supporting detail to include all of these EXCEPT: a. management reserve needs b. the estimating methods and a range of possible outcomes. c. a description of scope. d. assumptions and constraints.

a. management reserves needs

All of the following items are generally considered when selecting the right type of contract EXCEPT: a. project organization's accounting system b. extent of price competition c. urgency of requirements d. overall degree of cost and schedule risk

a. project organization's accounting system

Which quality tool provides a crisp definition of what and how to measure specific performance? a. quality metrics b. voice of the customer c. benchmarking d. root cause analysis

a. quality metrics

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

a. recurring costs

Project teams can often identify risks by conducting any of several types of reviews. Which of the following illustrates a valuable type of risk review? a. review the communication plan to determine where poor communications could cause a problem b. review previous projects to verify that each current assumption is correct c. review sunk costs to determine project continuance d. review the project schedule to determine if certain people are overloaded

a. review the communication plan to determine where poor communications could cause a problem

Project partnerships offer which of the following advantages to both clients and vendors? a. shared motivation b. potential of lower cost for client c. potential of greater profit for vendor d. opportunity for vendor to prove oneself.

a. shared motivation

Fact-based management includes four key ideas. Which of the following is among the key ideas associated with fact-based management? a. the need to understand variation b. use of analogous estimating c. routine use of interrogations d. reliance on historical research

a. the need to understand variation

Which party to a contract absorbs the preponderance of cost risk when a Firm-Fixed-Price (FFP) contract is used? a. the seller b. the insurer c. the buyer d. the cost risk is equally shared.

a. the seller

Which of the following statements is consistent with the ideas that W. Edwards Deming promoted regarding quality management? a. Understanding variation is essential to improving quality. b. Statistical concepts rather than behavioral considerations should govern quality improvement efforts. c. A key to quality improvement is to ensure that each part of the system functions effectively, independent from the others. d. The burden of quality falls on those that do the work

a. understanding variation is essential to improving quality

Consider the excerpt of the Internet Project risk register presented in Figure 10-1. Which of the following risk events should receive the highest priority for the development of risk responses? a. A - project requires new technology and support structure b. C - IS resources are spread too thin c. D - The intranet site suffers a security breach d. B - web infrastructure lacks sufficient transaction capacity

b. IS resources are spread too thin

All of the following factors must be in place in order to develop an analogous estimate effectively EXCEPT: a. An organization must know how much previous projects actually cost. b. An organization must know details behind the time value of money. c. An organization must have experience in performing similar projects. d. An organization must know how the proposed project differs from the previous project.

b. an organization must know how details behind the time value of money

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

b. brainstorming techniques are used by the team and other stakeholders to identify as many project risks as possible

A source of variation that is inherent in a system and predictable is typically known as: a. special cause variation. b. common cause variation. c. systemic variation. d. life cycle variation

b. common cause variation

Which of the following is one of the PMBOK Guide's four project procurement management processes? a. Perform value engineering b. Conduct procurements c. Perform configuration management d. Conduct contract reviews

b. conduct procurements

Which of the following contract types is most appropriate when costs are NOT well known and the buyer absorbs all of the cost risk? a. Firm-Fixed-Price (FFP) b. Cost-Plus-Fixed-Fee (CPFF) c. Fixed-Price-Incentive-Firm (FPIF) d. Time and Material (T&M)

b. cost-plus-fixed-fee (CPFF)

The procurement management plan: a. describes how sellers will be audited by the procurement team. b. describes how a project team will acquire goods and services from outside the performing organization. c. describes how supply chain partners will be managed. d. describes how the procurement division will be managed.

b. describes how a project team will acquire goods and services from outside the performing organization

All of the following methods have proven to be useful techniques to help project teams identify the risks that might impact the project EXCEPT: a. reviewing project documents b. documenting lessons learned c. interviewing stakeholders d. brainstorming among team members and subject matter experts

b. documenting lessons learned

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

All of the following statements accurately describe special cause variation EXCEPT: a. It can be quite unpredictable b. It is inherent in the system and is predictable c. It is not inherent in the system d. It comes from external sources

b. it is inherent in the system and is predictable

All of the following items describe an aspect of life cycle costing EXCEPT: a. Many project selection decisions are made based upon life cycle cost. b. Life cycle cost only includes the project cost from initiating through closing c. Project managers may need to consider product disposition costs to calculate total life cycle cost. d. Life cycle cost includes the cost of creating the project and using the result.

b. life cycle cost only includes the project cost from initiating through closing

Which of the following documents describes how the project team will implement the performing organization's quality policy? a. quality benchmarking plan b. quality management plan c. quality control plan d. quality audit plan

b. quality management plan

DMAIC is a disciplined process that includes five phases: Define, Measure, Analyze, Improve and Control. DMAIC is most typically associated with which of the following quality improvement approaches? a. Total Quality Management (TQM) b. Six Sigma c. Malcolm Baldrige d. ISO 9001:2008

b. six sigma

All of the following activities are appropriate upon completion of risk response planning EXCEPT: a. The project plan should be updated to reflect any changes to the project schedule, budget or resource assignments. b. The risk register should be baselined after planning is completed, and should not be updated once the project is in flight. c. A single person should be assigned as the owner of each risk. d. The risk register should be updated to reflect the risk response strategies.

b. the risk register should be baselined after planning is completed, and should not be updated once the project is in flight

Which of the following serves as a pre-condition that must be met in order for a project kick-off meeting to be successful? a. Project performance results should be calculated and made available to team members. b. The meeting location should always be off-site c. An atmosphere of trust and relationship building should be set by all. d. Compensation packages and benefits plans should be shared with all team members.

c. an atmosphere of trust and relationship building should be set by all

The approved time-phased project budget, excluding any management reserves, which can be changed only through formal change control procedures and is used as a basis of comparing actual results, is called a ____: a. control account b. cost benchmark c. cost baseline. d. measurement baseline.

c. cost baseline

Activity based costing allocates indirect costs to fixed costs based on different types of cost drivers. Which of the following is one of the cost drivers that serve as a basis of cost allocation? a. direct equipment costs b. number of labor hours c. number of units produced d. quantity of materials used

c. number of units produced

Which estimating technique uses an algorithm to calculate cost or duration based on historical data and other project parameters? a. grass roots estimating b. empirical estimating c. parametric estimating d. analogous estimating

c. parametric estimating

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

c. team members assess the probability of occurence and severity of impact for identified risks.

All of the following accurately describe the features and characteristics of a contract EXCEPT: a. A contract obligates the buyer to pay for a specified product or service. b. A contract binds both the seller and the buyer. c. The project organization is always a buyer in a contract arrangement d. A contract obligates the seller to provide a specified product or service.

c. the project organization is always a buyer in a contract arrangement

Which estimating technique uses historical data from a similar project as a starting point for creating a time or cost estimate? a. Monte Carlo estimating b. bottom-up estimating c. parametric estimating d. analogous estimating

d. analogous estimating

Which of the following types of contracts involves payment to the seller for the seller's actual costs plus a fee typically representing the seller's profit? a. direct cost contract b. equitable adjustment contract c. fixed-price contract d. cost-reimbursable contract

d. cost-reimbursable contract

The process of developing an approximation of the cost of the monetary resources needed to complete project activities is known as: a. activity resourcing. b. estimate resources. c. capital budgeting. d. estimate cost.

d. estimate cost

After completing detailed planning for a project, it is often helpful for the project manager and team to apply a sanity test to the project plan. Which of the following accurately describes the application of a sanity test? a. It focuses on whether the project charter should be changed b. It is based largely on the expectations of supervisors and sponsors. c. It is primarily focused on the team members. d. It should include questions to ensure budgets, schedules and resource plans are reasonable and achievable.

d. it should include questions to ensure budgets, schedules and resource plans are reasonable and achievable

Which of the following terms describes a method for transforming contractual arrangements into a cohesive, collaborative project team with a single set of goals and established dispute resolution procedures? a. a contract unification plan b. arbitration c. conflict resolution d. partnering

d. partnering

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

d. responses should be created for every identified project risk

All of these describe contemporary methods of risk prioritization in project management EXCEPT: a. Risk prioritization is generally based on the probability of occurrence and severity of impact of each identified risk. b. Some organizations place a higher priority on risks that are likely to happen soon. c. Some organizations call attention to the risks that are difficult to detect. d. Results of quantitative risk analysis are used for clarification purposes and are typically not documented in the risk register.

d. results of quantitative risk analysis are used for clarification purposes and are typically not documented in the risk register

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

d. sensitivity analysis

Often a project team will start the selection process by establishing a list of potential suppliers. All of the following information sources are frequently used to identify these potential suppliers EXCEPT: a. trade shows b. sales personnel c. supplier catalogs or websites d. stakeholder register

d. stakeholder register

Which of the following activities are typically included in a project kick-off meeting? a. The project team collects lessons learned for use on future projects. b. The project sponsor brings in a facilitator to conduct a brainstorming exercise c. The project manager evaluates team member performance. d. The project manager outlines the project goals.

d. the project manager outlines the project goals

All of the following criteria can be used to categorize project risks EXCEPT: a. the project objective that may be impacted by the risk b. whether the risk is internal or external to the performing organization c. the project life cycle phase d. whether the risk is a known known

d. whether the risk is a known known