PMP Practice Kit With Key

Project Management
Practice Questions
eBodhisathva Solutions, Bangalore
e-Bodhisathva Solutions
2 Project Management Practice Questions

Project Management
Practice Questions
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Project Management Practice Questions 3


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Certified professionals prepare Project Management Practice Questions with experience

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development. The value addition from this book is expected to be not limited to being a
tool of verifying the knowledge. Instead we strongly believe that the explanations to each
answer provide a lot of insight of the concept and works as an advanced study material.
For each question, you will see the answer followed by the explanation. Most of the
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are not suitable answers.
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Project Management Practice Questions
Question Answer
As the project manager of internet web shop, I started speaking
to the project team members, customers and end users of the
shopping web site . In this process I am getting the following
advantages
Information gathering and distribution
Risk analysis
Inputs from external people who may not have
relation to project not influenced by result of the
project.
Value addition from stakeholder skills and
knowledge
A factor which can influence the alternatives of project such as
customer requirement date is
Risk
Constraint
Assumption
Hassle
Under what knowledge area is the primary process area for
carrying out the work of the project?
Scope
Integration
Schedule
Framework
Coordinating a schedule, organizational policies, staffing plans
and historical information about the risks are activities of

Question Answer
Overall change control
Risk management
Human resource Management
Project plan development
The conditions which are considered to be true real and certain
while making the project plan are
Constraints
Risks
Assumptions
Planning levers
I was promoted as project manager and was assigned to a new
project. I started going through the documentations such as
project template and other archives from the previous projects,
These tools will help in the area of
Project plan coordination
Project plan verification
Project planning methodology
Project plan execution
Which of the following is not true about Project Plan
Development?
Prepare the plan once the payment is made
It is used to document project planning
assumptions
It is an iterative process
It involves making trade offs between
competing objectives and alternatives
The state of being totally answerable for the satisfactory
completion of a specific assignment is called

Question Answer
Authority
Accountability
Responsibility
Fiduciary
Quality costs include:
The total of all costs incurred to assure the
production and delivery of acceptable products
and services.
Only costs classified as prevention, detection
and corrective action.
Only the cost of scrap, rework due to defects,
customer returns and warranty costs.
All customer returns only
Refer to Table2.
What is the standard deviation for activity V?
0.5
0.7
0.8
0.75
Please refer to the table 1.
If the net present value for each of the cash flow is calculated at
15% interest rate, then the net present value cash flow at the end
of 3 years will be
Greater than the total cash flow calculated
without accounting for interest rate.
Less than the total cash flow calculated without
accounting for interest rate.
Depending on the interest rate, can be greater or

Question Answer
less than the total cash flow calculated without
accounting
Less than the value calculated with interest rate
of 20%.
The concept of including the acquisition, operating and disposal
costs when evaluating various alternatives is called
Life-Cycle Costing
Target Costing
Risk Management
Project Planning
A Project Manager is most likely to have the strongest influence
in an organization that is:
Balanced Matrix
Functional
Projectized
Strong Matrix
The major process groups of project management are:
Initiation, Planning, Execution, Control and
Closing
Concept, Realization, Testing, Implementation
and retiring
Conceptual, demonstration, validation,
development, production
Feasibility, planning, design, production, close
out
During execution of a project, the most common source of
conflict within the project team is likely to be:
Schedules

Question Answer
Priorities
Technical opinions
Cost
ABC corporation has 5 dedicated project managers. Each of the
five project managers work on the assigned project to fulfill
around 20-25% of the organization’s activities, with some people
temporarily deployed from the functional groups.
Functional
Strong matrix
Projectized
Balanced matrix
As a Project Manager john Harrison involved in motivating the
team members through regular appreciation and awarding the
best performers from the project budget. These are the skills
essential for Project management and come under:
General Management skills
Project Human Resource Management skills
Project Execution skills
Specialized Skills
XYZ Corporation is described as a weak organization. In such
organization it is more likely that the functional managers may
not be responsible for:
Monitoring personnel performance
Responsible for his / her team member’s
deliverables in the project.
Training and education of team members
Deploying the team member to a project

Question Answer
The Project Manager needs to have a good Negotiating Skills in
project activities such as Scoping, Change Control and Contract
terms and conditions. Such skills are
General Management Skills
Business Skills
Project Management Skills
Technical Skills
ABC Organization works as a Matrix Organization. The project
manager in the organization will have all of the following
responsibilities except,
Complete task definitions
Resource requirement definitions
WBS
Personnel performance measurements
It is more likely to find the conflicts of interest in the following,
in the early phases of Project.
Schedules and dead lines
Priorities among share holders.
Technical opinions from experts
Budget issues
The S shaped curve of the project life cycle implies that
Project life cycles have lot of fluctuations
The maximum spend of the project budget is
expected to be in the execution phase
expected to be in the Control phase because any
change at this phase is more expensive.

Question Answer
expected to be in the closeout because lot of
expenses are identified at this point.
ABC Organization wanted to implement ERP Software. The
implementation needs the involvement of functional experts from
all departments of the organization such as Purchase, Production,
Design and Planning for a long term of around 9-12 months.
Functional heads with out affecting the regular business must
deploy some of their departmental staff in the implementation
project. This kind of project best fits in
Functional
Cross-functional
Matrix
Balanced
The document that declares officially the existence and
authorization to project manager to process on the project is
called
Project Charter
Project Plan
Project report
Any Project Communication
A complex project will fit best in what type of organization?
Functional
Cross-functional
Matrix
Balanced
Product Management of a Business Solution made a business

case to introduce new features that support a new technology. At

Question Answer
the time of initiating the project, product management also
mentioned that to maintain the competitive strength, the new
features must be released by 3rd quarter of the next year.
Is it in line with the normal sequencing of Project Management
Processes?
No. The completion date is always determined

as planning process.
It is acceptable as a market driven decision,
even though usually the target completion dates
are determined in the project planning process
No. Because without knowing the resource
details you can never decide the target
completion date.
Yes. But you need to go through change
management process
The "To Complete Performance Index" (TCPI) is calculated by:
Subtracting the actual costs to date from the
estimate at completion
Dividing the budgeted cost of the remaining
work by the difference between the
Estimate at completion and actual costs to date
Multiplying the estimate at completion by the
cumulative cost performance index
Adding the estimate at completion to the actual
costs to date and multiplying by the cumulative
cost performance index

Question Answer
Which of the following is not a technology factor that may affect
the project communications plan:
Immediacy of the need for the information
Length of the project
Expected project staffing
Logistics of how many individuals will be
involved with
The project and at what locations
Which of the following is not a type of performance reporting:
Status reporting
Progress reporting
Risk reporting
Employee attrition report
Inputs to Administrative Closure include all of the following
except:
Performance measurement documentation
Other project records
Documentation of the product
Project archives
The Communication Management Plan provides all of the
following except:
A collection and filing structure for project
information
Communication barriers
A distribution structure for project information
Project communication schedules
Which tool and technique integrates scope, cost and schedule in
measuring project performance?

Question Answer
Variance analysis
Earned value
Trend analysis
Performance report
Which equation correctly illustrates the cost variance of a
project, in currency?
BCWP-ACWP
BCWP/ACWP
EV-AC
BCWP/BCWS
Which of the following Knowledge Groups includes Project
Closure as part of it’s Processes
Project Communication Management
Project Cost Management
Project Time Management
Project HR Management
In the middle of Project execution phase, my sponsor asked me
to provide in one visual report that shows the project results over
time, from which the sponsor can make out whether project is
progressing as planned, with improvement or with decoration.
What kind of analysis will I perform give the sponsor, best
outlook at a glance.
Earned value
Trend analysis
Variance analysis
Cost distribution curve

Question Answer
ABC Corporation hired a project manager to execute a
prestigious project for the organization.
The boss of the new project manager explained the importance of
the project whose progress is expected to be closely referred by
the senior management, and trusted vendors (who were also
investing in the project) of the organization.
These directives will help the project manager in planning
Risk management plan
Communication management plan
Scope management plan
Technical specification
Project termination responsibilities include all of the following
except:
Ensure the completion of work
Notify the client of completion and ensure
delivery of the product
Ensure that documentation is complete
Ensure that the project baseline is updated to
reflect actual project performance
The most difficult and important decision on a Project is
Taking Risk of continuing with a unreliable
technology
Hiring the most skilled resources at expensive
remunerations
Terminating the project with proper justification
on the advantages of not continuing
Initiating a new idea and getting the approval
for project.

Question Answer
except:
Archive appropriate project documentation
Provide project personnel with favorable
performance appraisals to ensure their future
cooperation
Ensure the fulfillment of product support
requirements
Oversee the closing of project accounting
You are a project manager of a multi-task project with lot of
dependencies between the tasks being executed by individual
Project leads.
While evaluating the progress you noticed that a dependant task
is impacted by the delay of other task, as the team was not aware
of the delay of other task.
What is the focus point for you to improve?
Project schedule
Project tasks that caused the delay
Communication mechanism
Skills of the technical team members
Which of the following indicates the cost variance?
EV-AC
EV/AC
EV-PV
EV/PV

Question Answer
Your new product development project has resulted in a highly
successful new product.
You find that you are being promoted to lead a new business unit
to produce and
Market the product. Your project is being terminated by:
Extinction
Addition
Integration
Starvation
You are project manager of a project that is severely affected by
the lack of skilled staff. Due to heavy attrition in the project team
and lack of funds are reasons for termination of this project. This
project is said to be terminated by
Extinction
Addition
Integration
Starvation
All of the following are examples of Information retrieval

systems except,
Manual Filing systems
Database containing the Project information
Spread Sheet containing data of Resource usage
in a shared computer
Telephone Network.

Question Answer
While evaluating the project performance John Harrison
computed the following in each phase of the project:
Planning:
PV=∈20000 EV= ∈25000 AC=30000
Execution:
PV= ∈15000 EV= ∈15000 AC= ∈10000
Which of the following is correct about the overall project
performance?
Project is ahead of schedule and on Budget
Project is 12.5 % behind schedule and is on
budget
Project is 12.5 % ahead of schedule but is over
budget.
Project is behind schedule and under budget.
My project of developing a software using proprietary tools may
be impacted by the outcome of investigation by technology
group on whether to continue with standard development tools. If
the tech group decides to retied the proprietary technologies, my
project will be terminated.
My project is said to be terminated by
Extinction
Subtraction
Integration
Starvation
After 2 months of the 9-month project, the Earned value is
Rs.105000/- while the Planned Value is Rs.120000/-.
From this, your conclusion on project performance may be one
of the following:

Question Answer
Project is behind Schedule
Project is below budget
Project is ahead of schedule
Project is as per budget
Which of the following is closely linked to Organizational
planning?
Cost estimating
Communications Planning
Cost budgeting
Performance reporting
You have completed the construction project of a Dam. Now the
properties, machinery, materials and staff of the project are in the
process of returning to the functional organization.
Your project is said to be in the process of termination by
Extinction
Extinction as well as starvation
Integration
Starvation
As the project manager of a ERP development project, you
organized a weekly exchange of information meeting among the
technical leads.
This is an example of a communication that is:
Internal, formal, and horizontal
External, informal, and vertical
Oral, internal, and informal
Oral, external, and formal
Cost performance index is calculated as:
EV / AC

Question Answer
AC / EV
AC / PV
EV / PV
except:
Modify project quality standards to reflect those
actually implemented
Oversee preparation of final invoices for the
client
Redistribute personnel, materials, equipment,
and other resources
Record and archive all legal project documents
All of the following are true of Administrative Closure except:
It includes verifying and documenting project
results
It includes collection of project records
It includes analysis of project success and
effectiveness
It should be delayed until project completion
The process of determining who needs what information, when
they need it, and how it will be given to them is:
Information distribution
Communications requirements
Communications planning
Communications management
Cost estimating is closely linked with some of the following
processes
Communication, and Risk management

Question Answer
Scope and Procurement management
Time and Scope management
Risk, Time, and Integration management
In the processes of the knowledge area Project Cost Management
are performed in the following Project phases
Planning and executing
Executing and controlling
Planning and close out
Planning and Controlling
Parametric Modeling and Analogous Estimating are used in what
process:
As inputs to Cost Control Process
Tools and Techniques of Cost Estimating
Process
Inputs of Cost estimating Process
Tools and techniques of Cost Control Process
The term resource planning refers to:
People
Capital equipment
Materials
All of the above
Inputs into Resource Planning include all of the following except
Work Breakdown Structure
Resource Requirements
Scope Statement
Activity duration estimates
The cost baseline is an output of what process?
Cost planning

Question Answer
Cost estimating
Cost budgeting
Cost control
The inputs to cost budgeting include all of the following except
Cost estimates
Project Schedule
Cost Management Plan
The time phased budget that is used to measure and monitor cost
performance is:
The project budget
The cost budget
The cost baseline
The cost estimate
At the beginning of a project you are asked for an order of
magnitude budget. What type of budget estimate are you likely to
use?
Analogous
Parametric modeling
Bottom-up
Detailed
You are preparing the cost budget for a high cost project.
Based on the figures from similar projects you used some rates to
make estimates for the costs of tasks in your project. You are
following the approach of
Analogous estimating
Parametric modeling
Bottom up estimating

Question Answer
Spread sheeting
Which knowledge area does not provide input into cost
budgeting?
Time Management
Quality Management
Scope Management
Cost Management
Which of the following is not a tool or technique for cost
control?
Cost change control system
Revised cost estimates
Performance measurement
Additional planning
In the initial stages of the execution phase of a project, the
project manager identified that the government policy is
changing based on which the equipment being used in the project
need to be replaced by pollution proof equipment. The Project
results may be different from the point when new equipment is
used.
What kind of approach do you follow in project performance
evaluation?
Complete and perform the earned value analysis
to determine the cost index
Compute the actual costs so far and estimate
the remaining budget using the performance
factor
Compute the actual costs so far and prepare the
new estimate for the remaining work based on

Question Answer
the new information.
Calculate the total budget based on the new
performance factor
Which of the following is not an input to the cost control
process?
Cost baseline
Performance reports
Change requests
Which of the following is not an output of the cost control
process?
Budget updates
Workarounds
Estimate at completion
You have the following data for 4 Projects. Which of the
following is a cause of concern for you?
AC = $3,000 and EV = $2,900
PV = $3,000 and EV = $2,900
AC = $3,000 and EV = $3,200
EV = $3,000 and AC = $2,000
Which of the following is not an input to cost budgeting?
Cost estimates
Work breakdown schedule
Project schedule
Cost estimating includes all of the following except:
Identifying and considering various costing

Question Answer
alternatives
Pricing strategy
Developing an assessment of the likely
quantitative result
Resource planning
PQR Consulting initiated a new Project. The Project’s
requirements were outlined at high level and elaboration is yet to
be made. You have some data of the projects that were similar to
the project you have in hand. You may use such information to
make the estimates.
This approach is called:
Parametric modeling
Bottom-up estimating
Top-Down Estimating
The Scope Statement is used as input in one of the following
processes:
Resource Planning
Cost Estimating
Cost Control
Cost Planning
Cost Budgeting is defined as:
The estimated total cost of the project when
done
Allocating the cost estimates to the individual
work items
Estimating the cost of the resources needed to
complete project activities

Question Answer
The sum of the approved cost estimates
At 40% through your project you have a BCWS of $68,000 and a
BCWP of $62,000. Your project is
Ahead of schedule
Behind schedule
A positive cost variance
A negative cost variance
Determining what resources and quantities will be used for the
project is part of:
Cost budgeting
Cost estimating
Resource planning
Cost Management
What is true about Product life cycle?
Defines the Project Life Cycle
Has distinct phases that are the same for all
projects
Defines what work should be done in each
phase
Same as project life cycle
As part of project plan development, you noticed that your
project needed a system administrator as well as a web
developer. Currently the resource pool do not have the people
with these skills, you included the need for two more skilled
people are requirements. This is an example of you doing,
Staffing requirements
Communication planning
Project interface planning

Question Answer
Staffing management plan
Which of the following is not an input to the process Team
Development?
Project Plan
Staffing Management Plan
Performance Reports
Reward and recognition systems
Inputs to the process Staff Acquisition include all of the
following except:
Resource Histogram
Staffing pool description
Recruitment practices
Which of the following is not an example of project integration
management:
At project closure you transition the project
operations into ongoing operations.
Risk Identification and analyzing to identify the
root cause and avoid the risk.
Ensuring that the product scope and the project
scope are consistent.
A change in the project scope necessitates
changes to the schedule and the budget.
Which of the following is not a method for acquiring team
members?
Escalating issues to the project sponsor
Negotiating with functional managers
Procuring outside resources

Question Answer
Negotiating with other project teams
In the interaction by Project Manager with the Project team
members during working, the primary communication skills
applied are:
Problem solving
Negotiating
Team building
Public relations
A Project Plan may involve all of the following except,
Document project planning assumptions
Define the content of management reviews
Risk Identification during project execution
Provide a baseline for progress measurement
and project control
Which of the following is likely to be least consideration in
selecting project staff members?
Type of organization
Personal characteristics
Previous experience
Personal interests
In the interaction by Project Manager with the external vendor
who is one of the stakeholders during working, the primary
communication skills applied are
Problem solving
Negotiating
Team building
Public relations
Which of the following is not one of Alderfer's three categories

Question Answer
in to one of which People’s needs fall?
Existence needs
Identity needs
Relatedness needs
Growth needs
The Process Staffing management plan includes all of the
following except:
Determining how to bring team members onto
the project
A resource histogram
Determining how to release team members from
the project
Documentation on who has the authority to
make decisions
. In the interaction by Project Manager with the Project sponsor
during working, the primary communication skills applied are:
Problem solving
Negotiating
Team building
Public relations
The Maslow’s needs hierarchy is in the following order
Self-actualization, esteem, social, safety,
physiological
Physiological, self-actualization, social, esteem,
safety
Physiological, safety, social, esteem, self-
actualization
Self-actualization, social, physiological, safety,

Question Answer
esteem
The Processes of the knowledge area Project Integration
Management fall under all of the following phases except,
Initiation
Project Plan Development
Project Plan Execution
Change Control
In the interaction by Project Manager with the Functional
Manager during working, the primary communication skills
applied are:
Problem solving
Negotiating
Team building
Public relations
Human Resource Management is tightly linked to which other
knowledge area?
Cost Management
Risk Management
Communications Management
Time Management
Outputs from Organizational Planning include all of the
following except:
Organization Chart
Project Team Directory
Role and Responsibility Matrix
Organization theory is used as tool and technique in the
processes of following knowledge area

Question Answer
Cost Management
Risk Management
Human Resource Management
Of the following, which conflict resolution strategy is likely to
yield the most productive results?
Withdrawing
Forcing
Compromising
Collaborating
Your project plan requires personnel to wear a Radiation Monitor
counter at all times while they are within the protected area
surrounding a nuclear reactor. This requirement arises from your
concern for:
Quality assurance reporting requirements
Personnel safety needs
Stakeholder reporting requirements
Office Security needs
All of the following are input constraints to the process
Organizational planning except,
Collective bargaining agreements
Preferences of the project management team
Expected staff assignments
All of the of the following are one of the basic factors
influencing decisions on structuring the project organization,
except
Environmental forces

Question Answer
Strategic choices
Schedule constraints
Technological factors
While trying to maintain the integrity of the project, the project
manager must make sure that all approved changes to the
schedule and cost are accounted in the project plan. At the same
time, the project manager makes sure that only changes to the
project scope affect the performance measurement baselines. The
project manager is said to be applying the following measures
Scope change control
Progress reporting
Termination by Extinction
Termination by Subtraction
Termination by Integration
Termination by Starvation
The Project Manager Shilpa was analyzing the Budget for
various phases of the Student Management Software
development project. Among the following in which process,
will she likely allocate more funds?
Scope management
Production
Labor and materials
Project execution
All of the following are appropriate justifications to call for an
additional training except,
Feedback on team performance from team

Question Answer
members of other projects
Reports about performance that do not meet
project requirements
Excessive overtime requirements in order to
meet the project schedule
New technologies involved in the scope of the
project
Project files, project software, and shared folders are examples
of:
Project management information system
Communication management
Risk management tools
A management control that rarely changes, and then only in
response to defined criteria, such as change in scope is called
Project plan
Change management plan
Project baseline
A subsidiary management plan
All of the following are inputs to the process Project Plan
development except,
Organizational policies
Constraints and assumptions
Historical information
Project Planning Methodology
Outputs of Integrated change control include all of the following
except:
The project plan updates

Question Answer
Lessons Learned
Change requests
Corrective action
A collection of documents that will change over time as more
information becomes available is
Project baseline
Project plan
Project Charter
While preparing the project plan, you will consider the
organizational plan for the following reasons
Regulatory compliance
You will not refer to organization policies
because projects are above organization policy.
Budget estimation
Financial controls
Where is the most of the project budget spent?
Scope management
Production
Project Initiation
Additional Planning, Performance Measurement and
Project Management Information Systems are all:
Tools and techniques used in Integrated change
control
Tools and techniques used in performance
reporting
Inputs to Integrated Change Management

Question Answer
Inputs to Project Plan development
A work authorization system is:
The control mechanism used to track cost
packages
A variation of the work breakdown structure
A formal procedure for sanctioning project work
A policy and procedure that sets the days and
hours for the project schedule
Which of the following is not a tool or technique for project plan
execution
General management skills
Work authorization system
PERT
Product skills and knowledge
You are a project manager to execute commissioning of Boiler
Equipment. You decided to execute the commissioning of Boiler
Feed Pumps by deploying the team-A. You sanctioned a
document explaining the tasks to be performed, who to do what,
and at what time. This means you might have issued one of the
following:
Project scheduling
A work authorization system
Project planning
The Process Integrated Change Control takes the following
inputs
Project Charter, change control system,
performance reports

Question Answer
Performance reports, Project Charter, change
requests
Change requests, Quality results, project plan
Project plan, performance reports, change
requests
You are a project manager of a high tech project and have been
preparing the project plan. In the initial investigation you
suspected certain restrictions that may effect the performance of
the project. You also want to make the Project Plan on the basis
of factors that are considered to be true, real or certain. What
kind of tools and techniques you wish to apply for making the
project plan?
Project planning methodology, EVM and
project management information system
Project management skills and general
management skills
Stakeholder skills and knowledge and PERT
Work Authorization System and project
planning methodology
In your project you have some tasks that are subcontracted to
another vendor who is yet to be finalized. Even though this move
increases the costs, it is assumed that it makes it possible to meet
the dead lines of a major milestone. You will document this
information in
Project Charter
Scope Definition
Risk Management Plan
The project plan

Question Answer
All of the following are true about Project Plan Execution
except:
The majority of the budget will be expended in
performing this process
This is where the product of the project is
created
It involves managing change to the original
project plan
It requires PM skills as well as general
management skills
Meredith & Mantel describe four varieties of project termination
which include all of the following except:
All the following statements are true about Project Planning
methodology except,
It is an input into the project plan development
It is a structured approach used to guide the
project team during the development of the
project plan
It may include complex simulations to identify
schedule risks
It may include project planning templates and
forms
Which of the following is not a tool or technique for Integrated
change control?
Configuration management
Work Authorization system

Question Answer
General contents of the Project plan include,
Cost baselines, schedule baselines, assumptions,
flow charts
Project Charter, cost estimates, project schedule,
required staff, key risks
Scope management plan, work-arounds,
schedule management plan, budget
Scope statement, product description, control
charts, project charter
At what point in the project would stakeholders have the most
ability to influence the characteristics of the Project?
Implementation
Development
Concept
Close out
. At what stage in the project life cycle would costs be the
lowest?
Concept
Development
Implementation
Close out
In ABC Organization, you are appointed as Manager for running
a Daily News Magazine. Your current assignment is
Project management
Functional management
Facility management
Program management
An example of a Project Stakeholder is:

Question Answer
Supplier.
Individuals and organizations who are actively
involved in the project, or whose interests may
be positively or negatively affected as a result of
project execution or successful project
completion.
The plan sponsor, project manager, team
members, client
The customer
Phase exits, kill points and stage gates are used for what
purpose?
Planning the next stage in the project
Communicating milestones to stakeholders
Determining if the project should continue into
the next phase
Measuring earned value
The probability of Risk and uncertainty is the highest in the
following project phase:
Close out
Development
Implementation
Concept
Executing processes are concerned with:
Recognizing that a project or phase should
begin
Coordinating people and other resources to
carry out the plan

Question Answer
Devising and maintaining a workable method to
accomplish the business need that the project
was undertaken to address
Ensuring that the project objectives are met by
monitoring and measuring progress and taking
corrective action when necessary
Project Management processes are:
A series of actions bringing about a result
Concerned with describing and organizing the
work of the project
Concerned with specifying and creating the
product
Broken into core and non-core processes
Which of the following is not a Project Management knowledge
area?
Project Quality Management
Project Procurement Management
Project Configuration Management
Project Risk Management
As a Project Manager of a construction project, part of your job
is to determine if there are variances to the scope of the project,
the schedule, the budget and the technical requirements and
execute the needed adjustments. There responsibilities are
included in the process group
Executing
Controlling
Planning
Closing

Question Answer
In ABC corporation, a quality manager is required. The person
needs to regularly monitor the quality levels and strive for the
continuous improvement. The tasks of this role come under,
A Program because it is an ongoing process.
A Program because the activity is related to
quality and not on specific deliverables.
A Project because the tasks are constrained by
resources and time.
A project because they involve planning,
execution and control.
Core planning processes:
Include scope planning, cost planning, schedule
planning and performance reporting
Provide a framework for the project
Are used to track the progress of a project
are the planning processes that have clear
dependencies so they must be executed in
essentially the same order on most projects
Controlling processes are concerned with:
carry out the plan
begin
Ensuring that the project objectives are met by
monitoring and measuring progress and taking
corrective action when necessary
Devising and maintaining a workable scheme to
accomplish the business need that the project

Question Answer
was undertaken to address
For preparations to negotiate with the customer for a project in a
foreign country, which of the following should be your guide on
what business practices are allowed and discouraged?
The project charter
The project plan
Company policies and procedures
The PMP code of conduct
As a Project Manager you and your team worked hard and made
the project successful. The project is closed with all the reporting
completed. However you didn’t document the lessons you
learned during the project because you feel this is hard earned
experience which can not be shared free of cost with other
project managers in the organization. You violated the
professional responsibility of category
I. Report Violation
II. Follow right process
III. Contribute to knowledge base
I and II
II and III
II
III
In a power plant erection project, you needed a special welder to
execute an important, sensitive and expensive work. You know
that your friend is an expert in the area and appointed him in the
project. What is true about this scenario?
You violated professional code of conduct
because you included your friend in the project

Question Answer
You violated the professional code of conduct
because you have not followed the clean process
of selection by inviting a number of qualified
parties for selection on an important task.
You did not violate the Professional code of
conduct because even though the welder is your
friend he is good at work.
You did not violate the professional code of
conduct because the welder is not relative and
just a friend.
By executing the software development project ahead of
schedule by 10%, you will be getting good incentive. When you
reviewed the progress of the project that is likely to complete
ahead of schedule, you noticed that the project deliverables are
meeting the requirements described in the contract, but the
functionality built on the software will not completely satisfy the
customer requirements. What is your appropriate action?
Instruct the team members to keep silence on
this information and submit the project
Submit the project because as per contract you
finished the work
Review the situation with the customer and
reconfirm what customer wants
Change the scope without consulting the
customer and provide the needed functionality
While executing a project in a foreign country, the customer
offered you a gift which is an accepted practice in the country.
However the value of gift is more than limit allowed by your

Question Answer
company. The best action for you is
Accept the gift, as it is not illegal in the country.
Reject the gift stating the reason that the
company doesn’t allow taking gifts of higher
value from customer
Accept the gift and keep the information
confidential
Contact your company and take the advise for
correct action.
You took over an important project, which must be started as
soon as possible. The Management detailed the requirements and
asked you to start working on the project at the earliest. You are
in fact starting the project with out a formal project charter. What
is true about this situation?
Some times due to pressure situations you will
have to execute the projects in this manner
Starting a project with out project charter is not
ethical.
You can start the work but complete the project
charter at the end of project.
With out a project charter it will be more
flexible for you to adjust the direction of project
as you proceed.
While traveling for a presales activity with a potential customer,
you noticed that people next to your seat in the flight belonged to
your competitors and were discussing the strategy for winning in
the presales effort with the same customer. What is the
appropriate action for you?

Question Answer
Carefully hear the conversation and prepare for
the counter action to win the deal
Do not pay attention and continue your work.
Inform the people next to you that you belonged
to their competitor and advise them to discuss
later.
Do not inform that you are competitor and start
conversation with the people to extract more
details
Your team member is working in India with time zone difference
of 12.5 hours. Her presence in the project discussion was very
important and teleconference meeting is scheduled at a time,
which in her time zone will be 02.30 AM. What action will you
take when the team member doest attend the teleconference?
Ask her to resign because as a team member
working in global organization she must work in
any time zone.
Try to adjust timings to some other time, which
will be less inconvenient to all members.
Ask other team members to attend in the mid
night so that she can attend the teleconference in
the morning time.
Lay of the person for indiscipline.
As a project manager, while reviewing the cost estimates for the
project, you noticed that the estimate for certain element in the
WBS is 5 % more than the estimate for similar work element in a
couple of previous projects executed earlier by your
organization. You may opt for the best action on this finding as

Question Answer
follows:
Accept the estimate because you must trust your
team members
Correct the estimate and allocate additional
budget to management or contingency reserve
Fire the person who made the inflated estimates.
Check with the team member who made the
estimate, on how the estimate is arrived with
reasonable justification.
You hired an employee from your competitor’s organization. The
employee offered to provide confidential information about the
competitor and the information will help you win over the
competitor. Your response will be,
Fire the employee for violating the professional
ethics
Refuse to take such help from the employee and
advise to check with the company policies
Use the information but ensure the
confidentiality
Use the information and inform your company
on the same.
You as a project manager received a request from project
customer to inflate your cost estimates by 20 percent to get the
appropriate funds for the project because the customer’s
management grants less than what is asked. Which of the
following is the best response to this situation?
Add the additional estimate asked by customer
as a contingency reserve.

Question Answer
Add the additional estimate asked by customer,
by inflating estimates for all tasks.
Make two estimates one for customer and the
other for you to refer while execution.
Make accurate estimate and in addition create a
risk assessment on why the project budget
would be inadequate.
You noticed that one of your team members has been
consistently using the ideas from his previous employer
company. What is the best action for you from the following?
Fire the team member
Keep a check on the team member’s work and
ensure he doesn’t get sensitive information
Accept the ideas but ensure that the team
member will not tell the source of ideas
Accept the ideas without any restrictions.
Which of the following is true regarding the quality and project
scope.
The project scope will include metrics for
quality.
Quality metrics will be applied to the project
scope.
Quality is the process of completing the scope to
meet stated or implied needs.
Quality is the process of evaluating the project
scope to ensure quality exists.
A fishbone diagram is the same as
Ishikawa

Question Answer
Pareto
Flow
Control
Which of the following is not an attribute of the cost of
nonconformance?
Loss of customer goodwill
Downtime
Safety measures
Rework
What is true about Quality assurance and Quality Control?
Quality control is a typical inspection process while Quality
Assurance is a management process.
Quality and Quality Assurance are same in Project
Management
III. Quality control is management process while Quality
assurance is a typical inspection process.
I and II
II and III
III
I
The fraction rejected is:
The ratio of the number of items inspected to
the number of items rejected
The number of parts returned by the customer.
The ratio of the numbers of items rejected to the
number of items inspected
The number of items rejected to number of
items accepted

Question Answer
The Project management must also focus on the possibility of
changes while planning Risk Management and Change control.
Which of the following elements in likely to change at slower
pace?
People
Technology
Organizations
The Environment
While managing a software project, you anticipate the risk of
company being taken over and it can result in to working on a
different technology, which was not adopted, in the current
project. To manage the risk, you trained your team members on
the other technology for 3 days. You wanted to manage the risk
with the approach of
Avoidance
Acceptance
Mitigation
Transference
While working on the power plant erection, you anticipate risk in
the event of drum lifting. So you totally outsourced the event.
You actually preferred to manage the risk through
Avoidance
Acceptance
Mitigation
Transference
Which of the following describes SWOT?
Analysis of strengths, weakness, options, and
techniques

Question Answer
Analysis of strengths, weakness, opportunities,
and threats
Strengths, Weaknesses, opportunities and tests
Ratings of 1 to 100
You have an event that has a risk probability of .60 and the
impact is cost of Rs.1000K. What is the contingency fund for the
risk?
1000K
600K
400K
Information is insufficient
A table of risks, their probability, impact, and a number
representing the overall risk score is called
Risk table
Risk matrix
Quantitative matrix
Qualitative matrix
Decomposing the major deliverables in to smaller, more
manageable components to provide the better control is called
Scope management
Scope definition
Scope verification
A numbering system that is used to monitor the project costs by
category such as labor, supplies or materials, for example is
called
Work Breakdown structure
Chart of Accounts

Question Answer
Activity Based Costing
By purchasing an automation system at a price of 100K, the
project manager estimates a saving of 200K over a period of 1
year. What is the net present value of the saving if the rate of
interest applied is 10%?
100K
200K
90K
81.8K
Year Cash Flow Cash Flow outgoing (million)

incoming(million)
2001 0 5
2002 3 0.9
2003 4 1
2004 1 1.75
2005 0.5 0.35
Table 1: Cash Flow estimates made by the project manager over the
coming 5 years
Refer to table 1 :
From the available data what is the payback period for the
project?
1 year
2 years
3 years
4 years
You are the project manager executing the project with project at

Question Answer
user testing phase. The customer made a request to make some
changes to the scope of project. You will handle the requirement
with one of the following approaches
Accept the change and execute the change as
part of the project without additional cost
because customer is the ultimate deciding
authority.
Request the customer to make a formal change
request and attend the request as per the agreed
process.
Estimate the impact of changes to scope, cost,
and schedule and inform the sponsor.
Ensure that scope change complies with all
relevant contractual provisions
Work breakdown numbering system provides the following
Ability to systematically estimate costs of work
breakdown structure elements
Provides project justification
Provides the ability to identify the level at which
individual elements are found
Ability to use the data in project management
software
As a project manager while evaluating the progress you notices
that a team member has included additional functionality
without impacting the other constraints time, cost, and schedule.
What will be your immediate action?
Ask the team member how they determined the
functionality of this addition

Question Answer
Ask the finance department to assess the value
of the improvement
Ask the customer to review this and to submit a
change request
Ask the team member how they know there is
no time, cost, or schedule impact
Even though the scope has been completed and within cost and
time objectives set by the sponsor, the project sponsor, however,
says that the project is a failure, because the original schedule
was for 20 weeks and the project was completed in 23 weeks
With the project base line at 23 weeks, the project manager can
claim the project as success based on the fact that:
it only had 3 weeks of changes.
3 weeks of delay was within the tolerance limits
for delay.
there was good communication control.
it was completed within the baseline.
Activity O P M
I 1 1 1
II 2 3 3
III 10 13 12
IV 5 5 5
V 3 6 4
VI 1 1 1
VII 5 8 6
VIII 9 13 10
IX 5 5 5
Table 2: List of Project Activities with optimistic (O), pessimistic(P) and

Most likely (M) time estimates

Question Answer
Please refer to table 2: The expected duration of activity III is
11.8
12.5
14.2
13.5
You as a project manager want to use a tool that shows the
project activities with start and end times of each activity is
reflected. You may want to use the following tool
Gantt Chart
PERT
Precedence Diagram
Bill of Material
As a project manager you were asked to advance the project
completion date with least cost implications. All you try to do is
to reduce the schedule based on alternatives that are the
minimum expensive. You are actually trying to advance the
completion date by means of
Crashing
Fast tracking
Subcontracting
Hurryup defense
AS a project manager, after identifying the work hours required
versus work hours from resources available, you also need to
ensure that the resources are best utilized at their available times.
You are said to be doing,
Resource Leveling
Resource identification
Resource recruitment

Question Answer
Resource allotment
A Baseline schedule is
Original schedule plus changes with approved
changes incorporated
Project schedule that is as per stakeholders
requirements
Project performance schedule
Original schedule, which remains same and
compared with actual progress.
As a project manager, you were asked to check if it is possible to
advance the project completion date. One of the options you
opted was to identify activities scheduled in sequence that can
be parallel executed. You are actually trying to advance the
Crashing
Fast tracking
Subcontracting
Hurryup defense
Refer to table 2.
The expected time in days to complete the project is
32.3
41.5
25.5
40.1

Project Management - Answers with explanation

Question Answer with explanation
As the project manager of internet web shop, I started Value addition from
speaking to the project team members, customers and end stakeholder skills and
users of the shopping web site . In this process I am getting the knowledge
following advantages
Information gathering and distribution
Risk analysis
Inputs from external people who may not
have relation to project not influenced by
result of the project.
Value addition from stakeholder skills and
knowledge
A factor which can influence the alternatives of project such as Constraint
customer requirement date is
Risk
Constraint
Assumption
Hassle
Under what knowledge area is the primary process area for Integration
carrying out the work of the project?
Scope
Integration
Schedule
Framework
Coordinating a schedule, organizational policies, staffing plans Project Plan development
and historical information about the risks are activities of
58 Project Management - Answers with explanation


Risk management
Human resource Management
Project plan development
The conditions which are considered to be true real and certain Assumptions
while making the project plan are
Constraints
Risks
Assumptions
Planning levers
I was promoted as project manager and was assigned to a new Project Planning
project. I started going through the documentations such as methodology
project template and other archives from the previous projects,
These tools will help in the area of
Project plan coordination
Project plan verification
Project planning methodology
Which of the following is not true about Project Plan Prepare the plan once the
Development? payment is made
Prepare the plan once the payment is made
It is used to document project planning
assumptions
It is an iterative process
It involves making trade offs between
competing objectives and alternatives
The state of being totally answerable for the satisfactory Accountability.
completion of a specific assignment is called
Authority
Project Management - Answers with explanation 59


Accountability
Responsibility
Fiduciary
Quality costs include: The total of all costs
incurred to assure the
production and delivery of
acceptable products and
services.
The total of all costs incurred to assure the
production and delivery of acceptable
products and services.
Only costs classified as prevention, detection
and corrective action.
Only the cost of scrap, rework due to defects,
customer returns and warranty costs.
All customer returns only
Refer to Table2. 0.5
What is the standard deviation for activity V? Standard deviation = (O-P)
/6
0.5
0.7
0.8
0.75
Please refer to the table 1. Less than the total cash
If the net present value for each of the cash flow is calculated flow calculated without
at 15% interest rate, then the net present value cash flow at the accounting for interest rate.
end of 3 years will be The concept of Net Present


value is based on
understanding that the
money available now is
more valuable than money
that comes later. So the
adjustment of total cash
flow with the diminishing
interest rate applied will be
less than that calculated
without applying the
interest rate.
Greater than the total cash flow calculated
Less than the total cash flow calculated
Depending on the interest rate, can be greater
or less than the total cash flow calculated
without accounting
Less than the value calculated with interest
rate of 20%.
The concept of including the acquisition, operating and Life-Cycle Costing.
disposal costs when evaluating various alternatives is called As defined by the guide to
PMBOK.
Life-Cycle Costing
Target Costing
Risk Management
Project Planning
A Project Manager is most likely to have the strongest Projectized.


influence in an organization that is: Projectized organization is
the organization where
majority of tasks are
executed as a projects with
project manager being
solely responsible for the
deliverables and the team.
Balanced Matrix
Functional
Projectized
Strong Matrix
The major process groups of project management are: Initiation, Planning,
Execution, Control and
Closeout.
Concept, Realization,
Testing, Implementation
and retiring may be the
usual phases of software
development cycle for need
not be applicable to all
projects.
Initiation, Planning, Execution, Control and
Closing
Concept, Realization, Testing,
Implementation and retiring
Conceptual, demonstration, validation,
development, production
Feasibility, planning, design, production,


close out
During execution of a project, the most common source of Schedules.
conflict within the project team is likely to be: Once the Project comes to
the execution phase, the
priorities will be in place
(as scooping is more or less
in tact after prioritization).
However the major conflict
comes from the Schedules
and dead lines.
Schedules
Priorities
Technical opinions
Cost


ABC corporation has 5 dedicated project managers. Each of Balanced Matrix.
the five project managers work on the assigned project to In Functional Organization
fulfill around 20-25% of the organization’s activities, with most of the activities are
some people temporarily deployed from the functional groups. done with in the functional
group controlled by the
functional manager. Project
managers have negligible
role in such organizations.
Strong Matrix Organization
likely has considerable
amount of the project-based
work with project manager
having control on the
deliverables with the team
members from various
functional groups.
In a Projectized
organization most of the
activities are performed in
the form of projects with
project manager having
total control on the
deliverables and the team.
In a balanced Matrix
organization, there will be
considerable amount of
activities in the projects
while majority of the work
is still performed through
Functional groups. The
team members deployed in
the projects still report to

Functional
Strong matrix
Projectized
Balanced matrix
As a Project Manager john Harrison involved in motivating General Management
the team members through regular appreciation and awarding Skills.
the best performers from the project budget. These are the As explained in the Guide
skills essential for Project management and come under: to PMBOK in Chapter 2, a
Project manager needs to
have general management
skills such as managing
work relationships through
motivation, delegation and
other techniques
General Management skills
Project Human Resource Management skills
Project Execution skills
Specialized Skills
XYZ Corporation is described as a weak organization. In such Responsible for his / her
organization it is more likely that the functional managers may team member’s
not be responsible for: deliverables in the project.
In a weak matrix, the
functional manager may not
take the responsibility for
the deliverables of the team
member deployed to the
project.
The functional manager


may still appraise the team
member, acts as the
authority to deploy the
team members to project,
and takes care of training
and education of the team
members
Monitoring personnel performance
Responsible for his / her team member’s
deliverables in the project.
Training and education of team members
Deploying the team member to a project
The Project Manager needs to have a good Negotiating Skills General Management
in project activities such as Scoping, Change Control and Skills.
Contract terms and conditions. Such skills are In Chapter 2 of Guide to
PMBOK it is explained that
a Project Manager needs to
have general management
skills such as Negotiating,
Motivating, Problem
solving and influencing the
organization
General Management Skills
Business Skills
Project Management Skills
Technical Skills
ABC Organization works as a Matrix Organization. The Personnel Performance
project manager in the organization will have all of the Measurements.


following responsibilities except, In a Matrix organization,
Resource manager
performs the personnel
performance
measurements. The
resource manager may take
the feedback from the
project manager for the
involvement of his
functional group member in
the project. But the
resource manager performs
the overall performance
measurement of the
employee.
Complete task definitions
Resource requirement definitions
WBS
Personnel performance measurements
It is more likely to find the conflicts of interest in the Priorities among the
following, in the early phases of Project. stakeholders.
Schedules and dead lines
Priorities among share holders.
Technical opinions from experts
Budget issues
The S shaped curve of the project life cycle implies that The maximum spend of the
project budget is expected
to be in the execution phase


Project life cycles have lot of fluctuations
expected to be in the execution phase
expected to be in the Control phase because
any change at this phase is more expensive.
expected to be in the closeout because lot of
expenses are identified at this point.
ABC Organization wanted to implement ERP Software. The Matrix.
implementation needs the involvement of functional experts Because for the kind of
from all departments of the organization such as Purchase, implementation Project
Production, Design and Planning for a long term of around 9- explained, functional
12 months. Functional heads with out affecting the regular managers must deploy their
business must deploy some of their departmental staff in the resources to work under the
implementation project. This kind of project best fits in project manager for the
project duration. At the
same time, the team
members must report to
Project manager as well as
Resource managers. This is
best described as Matrix
organization.
Functional
Cross-functional
Matrix
Balanced
The document that declares officially the existence and Project Charter.


authorization to project manager to process on the project is This is the document
called through which the senior
authority in the
organization approves and
officially communicates the
commitment on the project.
Project Charter
Project Plan
Project report
Any Project Communication
A complex project will fit best in what type of organization? Matrix.
Functional
Cross-functional
Matrix
Balanced
It is acceptable as a market
Product Management of a Business Solution made a business driven decision, even
case to introduce new features that support a new technology. though usually the target
At the time of initiating the project, product management also completion dates are
mentioned that to maintain the competitive strength, the new determined in the project
features must be released by 3rd quarter of the next year. planning process.
Is it in line with the normal sequencing of Project Management
Processes? The processes and
interactions explained in
the guide to PMBOK are
the most usual however not
all the processes will be
needed in all projects and


not all interactions are
required in all projects.
No. The completion date is always
determined as planning process.
It is acceptable as a market driven decision,
even though usually the target completion
dates are determined in the project planning
process
No. Because without knowing the resource
details you can never decide the target
completion date.
Yes. But you need to go through change
management process
The "To Complete Performance Index" (TCPI) is calculated Dividing the budgeted cost
by: of the remaining work by
the difference between the
estimate at completion and
actual costs to date
Subtracting the actual costs to date from the
estimate at completion
Dividing the budgeted cost of the remaining
work by the difference between the
Estimate at completion and actual costs to
date
Multiplying the estimate at completion by the


Adding the estimate at completion to the
actual costs to date and multiplying by the
Which of the following is not a technology factor that may Logistics of how many
affect the project communications plan: individuals will be involved
with the project and at what
locations
Immediacy of the need for the information
Length of the project
Expected project staffing
Logistics of how many individuals will be
involved with
The project and at what locations
Which of the following is not a type of performance reporting: Employee attrition report.
The primary deliverables of
the performance reporting
in a project include Status
reports, Progress report and
Forecast and some times
include Risk and
Procurement information as
well.
However Employee
attrition report doesn’t
come under project
management purview.
Status reporting


Progress reporting
Risk reporting
Employee attrition report
Inputs to Administrative Closure include all of the following Project Archives.
except: Project Archives is one of
the outputs of the process
Administrative Closure.
Performance measurement documentation
Other project records
Documentation of the product
Project archives
The Communication Management Plan provides all of the Communication Barriers
following except:
A collection and filing structure for project
information
Communication barriers
A distribution structure for project
information
Project communication schedules
Which tool and technique integrates scope, cost and schedule Earned Value Management.
in measuring project performance? Earner Value Management
refers to Scope, Cost and
Schedules while evaluating
the project performance
Variance analysis
Earned value
Trend analysis
Performance report


Which equation correctly illustrates the cost variance of a Both BCWP-ACWP and
project, in currency? EV-AC are correct.
Cost variance is the
deviation from the Work
done in terms of cost hours
(BCWP=Budgeted Cost of
Work performed) and
actual cost spent to perform
that work (ACWP=Actual
Cost of work performed).
Latest terminology terms
BCWP as Earned Value
(EV) and ACWP as Actual
Cost (AC).
BCWP-ACWP
BCWP/ACWP
EV-AC
BCWP/BCWS
Which of the following Knowledge Groups includes Project Communications.
Closure as part of it’s Processes Project Closure is one of
the possible outputs from
the Process Administrative
Closure of the process
group Project
Communications
Management.
Project Communication Management


Project Time Management
Project HR Management
In the middle of Project execution phase, my sponsor asked Trend Analysis.
me to provide in one visual report that shows the project Trend analysis involves
results over time, from which the sponsor can make out analyzing the project to
whether project is progressing as planned, with improvement understand whether the
or with decoration. project is improving or
What kind of analysis will I perform give the sponsor, best decorating.
outlook at a glance.
Earned value
Trend analysis
Variance analysis
Cost distribution curve
ABC Corporation hired a project manager to execute a Communication Plan.
prestigious project for the organization. The Project Manager must
The boss of the new project manager explained the importance focus on the
of the project whose progress is expected to be closely referred communication channels,
by the senior management, and trusted vendors (who were also the kind of information to
investing in the project) of the organization. be sent as senior
These directives will help the project manager in planning management and some
stakeholders external to the
organization are possible
audience to the progress
report.
Communication management plan
Scope management plan
Technical specification


Project termination responsibilities include all of the following Ensure that the project
except: baseline is updated to
reflect actual project
performance
Ensure the completion of work
Notify the client of completion and ensure
delivery of the product
Ensure that documentation is complete
Ensure that the project baseline is updated to
reflect actual project performance
The most difficult and important decision on a Project is Terminating the project
with proper justification on
the advantages of not
continuing.
It is difficult to justify and
convince the management
on discontinuing the
project. A strong project
manager is the one who can
take the right termination
decisions
Taking Risk of continuing with a unreliable
technology
Hiring the most skilled resources at expensive
remunerations
Terminating the project with proper
justification on the advantages of not
continuing


Initiating a new idea and getting the approval
for project.
Project termination responsibilities include all of the following Provide project personnel
except: with favorable performance
appraisals to ensure their
future cooperation
Archive appropriate project documentation
Provide project personnel with favorable
performance appraisals to ensure their future
cooperation
Ensure the fulfillment of product support
requirements
Oversee the closing of project accounting
You are a project manager of a multi-task project with lot of Communication Channel.
dependencies between the tasks being executed by individual The Project was impacted
Project leads. mainly due to lack of
While evaluating the progress you noticed that a dependant communication from the
task is impacted by the delay of other task, as the team was not task team, which has not
aware of the delay of other task. communicated the
What is the focus point for you to improve? possibility of delay to
teams of dependent tasks.
Hence the communication
mechanism followed in the
project is likely the area
needing improvement.
Project schedule
Project tasks that caused the delay
Communication mechanism


Skills of the technical team members
Which of the following indicates the cost variance? EV-AC.
Cost variance is defined as
the Earned value minus
Actual cost performed.
EV-AC
EV/AC
EV-PV
EV/PV
Your new product development project has resulted in a highly Addition
successful new product.
You find that you are being promoted to lead a new business
unit to produce and
Market the product. Your project is being terminated by:
Extinction
Addition
Integration
Starvation
You are project manager of a project that is severely affected Starvation
by the lack of skilled staff. Due to heavy attrition in the project
team and lack of funds are reasons for termination of this
project. This project is said to be terminated by
Extinction
Addition
Integration
Starvation


Telephone network
All of the following are examples of Information retrieval Telephone network is used
systems except, to communicate the
information but is rarely an
information retrieval
system,
Manual Filing systems
Database containing the Project information
Spread Sheet containing data of Resource
usage in a shared computer
Telephone Network.
While evaluating the project performance John Harrison Project is ahead of schedule
computed the following in each phase of the project: and in on budget.
Planning: Total PV=35000, Total
PV=∈20000 EV= ∈25000 AC=30000 EV=40000, Total AC=
Execution: 40000
PV= ∈15000 EV= ∈15000 AC= ∈10000 Cost variance = EV – AC =
Which of the following is correct about the overall project 0
performance? Schedule variance = EV –
PV = 5000
Because CV is ZERO the
project is exactly on
budget.
Because SV is positive, the
project is ahead of
schedule.
Project is ahead of schedule and on Budget


Project is 12.5 % behind schedule and is on
budget
Project is 12.5 % ahead of schedule but is
over budget.
Project is behind schedule and under budget.
My project of developing a software using proprietary tools Extinction
may be impacted by the outcome of investigation by
technology group on whether to continue with standard
development tools. If the tech group decides to retied the
proprietary technologies, my project will be terminated.
My project is said to be terminated by
Extinction
Subtraction
Integration
Starvation
After 2 months of the 9-month project, the Earned value is Project is behind schedule.
Rs.105000/- while the Planned Value is Rs.120000/-. Schedule variance = EV-
From this, your conclusion on project performance may be one PV = -Rs.15000/-.
of the following: As the SV is negative, the
Project is behind schedule.
If you want to know the
project performance in
terms of cost, you need to
use the data of Actual cost
spent and Earned value.
Project is behind Schedule

Project is below budget


Project is ahead of schedule
Project is as per budget
Which of the following is closely linked to Organizational Communications Planning.
planning?
Cost estimating
Communications Planning
Cost budgeting
Performance reporting
You have completed the construction project of a Dam. Now Integration
the properties, machinery, materials and staff of the project are
in the process of returning to the functional organization.
Your project is said to be in the process of termination by
Extinction
Extinction as well as starvation
Integration
Starvation
As the project manager of a ERP development project, you Oral, Internal and Informal.
organized a weekly exchange of information meeting among
the technical leads.
This is an example of a communication that is:
Internal, formal, and horizontal
External, informal, and vertical
Oral, internal, and informal
Oral, external, and formal
Cost performance index is calculated as: EV / AC.
Cost performance index
CPI is calculated as:
Earned Value / Actual Cost.


Or
(Budgeted Cost of Work
Performed)/ (Actual Cost of
Work Performed)
EV / AC
AC / EV
AC / PV
EV / PV
Project termination responsibilities include all of the following Modify project quality
except: standards to reflect those
actually implemented
Modify project quality standards to reflect
those actually implemented
Oversee preparation of final invoices for the
client
Redistribute personnel, materials, equipment,
and other resources
Record and archive all legal project
documents
All of the following are true of Administrative Closure except: It should be delayed until
project completion.
Administrative closure
should not be delayed until
project completion, and
each phase must be closed
to ensure that the important
information is not lost
It includes verifying and documenting project


results
It includes collection of project records
It includes analysis of project success and
effectiveness
It should be delayed until project completion
The process of determining who needs what information, Communications Planning.
when they need it, and how it will be given to them is: In the guide to PMBOK,
Communication planning is
defined as the process
involving determining the
information needs of the
stakeholders: Who needs
what information, why they
will need it, how it will be
given to them.
Information distribution
Communications requirements
Communications planning
Communications management
Cost estimating is closely linked with some of the following Time and Scope
processes management
Communication, and Risk management
Scope and Procurement management
Time and Scope management
Risk, Time, and Integration management
In the processes of the knowledge area Project Cost Planning and control
Management are performed in the following Project phases
Planning and executing


Executing and controlling
Planning and close out
Planning and Controlling
Parametric Modeling and Analogous Estimating are used in Tools and Techniques of
what process: Cost estimating process
As inputs to Cost Control Process
Tools and Techniques of Cost Estimating
Process
Inputs of Cost estimating Process
Tools and techniques of Cost Control Process
The term resource planning refers to: All off the above.
People, Material and
Capital equipment come
under resources.
People
Capital equipment
Materials
All of the above
Inputs into Resource Planning include all of the following Resource Requirements.
except Resource requirements is
the output of Resource
planning.
Resource Requirements
Scope Statement
Activity duration estimates
The cost baseline is an output of what process? Cost budgeting
Cost planning


Cost estimating
Cost budgeting
Cost control
The inputs to cost budgeting include all of the following Cost Management Plan
except
Cost estimates
Project Schedule
Cost Management Plan
The time phased budget that is used to measure and monitor The Cost Baseline
cost performance is:
The project budget
The cost budget
The cost baseline
The cost estimate
At the beginning of a project you are asked for an order of Analogous
magnitude budget. What type of budget estimate are you likely
to use?
Analogous
Parametric modeling
Bottom-up
Detailed
You are preparing the cost budget for a high cost project. Analogous estimating.
Based on the figures from similar projects you used some rates
to make estimates for the costs of tasks in your project. You
are following the approach of
Parametric modeling


Bottom up estimating
Spread sheeting
Which knowledge area does not provide input into cost Quality Management
budgeting?
Time Management
Quality Management
Scope Management
Cost Management
Which of the following is not a tool or technique for cost Revised Cost Estimates
control?
Cost change control system
Additional planning
In the initial stages of the execution phase of a project, the Compute the actual costs so
project manager identified that the government policy is far and prepare the new
changing based on which the equipment being used in the estimate for the remaining
project need to be replaced by pollution proof equipment. The work based on the new
Project results may be different from the point when new information.
equipment is used. As the conditions based on
What kind of approach do you follow in project performance which the earlier estimates
evaluation? were calculated are
changed, the future work
must be estimated based on
new conditions and the cost
spent so far must be added
to this value to compute the
total estimate of the project


at completion.
Complete and perform the earned value
analysis to determine the cost index
Compute the actual costs so far and estimate
the remaining budget using the performance
factor
Compute the actual costs so far and prepare
the new estimate for the remaining work
based on the new information.
Calculate the total budget based on the new
performance factor
Which of the following is not an input to the cost control Performance Measurement
process?
Cost baseline
Performance reports
Change requests
Which of the following is not an output of the cost control Workarounds
process?
Budget updates
Workarounds
Estimate at completion
You have the following data for 4 Projects. Which of the EV = 3000 and AC = 2000.
following is a cause of concern for you? This is showing
considerably high variance,
which indicates you need to
pay more attention to check


whether the data is correct
or estimates are wrong.
AC = $3,000 and EV = $2,900
PV = $3,000 and EV = $2,900
AC = $3,000 and EV = $3,200
EV = $3,000 and AC = $2,000
Which of the following is not an input to cost budgeting? Risk Management Plan.
Cost estimates
Work breakdown schedule
Project schedule
Cost estimating includes all of the following except: Resource Planning.
Identifying and considering various costing

alternatives
Pricing strategy
Developing an assessment of the likely
quantitative result
Resource planning
PQR Consulting initiated a new Project. The Project’s Analogous estimating or
requirements were outlined at high level and elaboration is yet Top-Down estimating.
to be made. You have some data of the projects that were Analogous estimating also
similar to the project you have in hand. You may use such called as Top-Down
information to make the estimates. estimating means using the
This approach is called: actual costs of a previous
similar project as the basis
for estimating.


Parametric modeling
Bottom-up estimating
Top-Down Estimating
The Scope Statement is used as input in one of the following Resource Planning
processes: As defined in the Chapter 7
of guide to PMBOK
Resource Planning
Cost Estimating
Cost Control
Cost Planning
Cost Budgeting is defined as: Allocating the Cost
estimates to the individual
work items
The estimated total cost of the project when
done
Allocating the cost estimates to the individual
work items
Estimating the cost of the resources needed to
complete project activities
The sum of the approved cost estimates
At 40% through your project you have a BCWS of $68,000 Behind Schedule.
and a BCWP of $62,000. Your project is BCWP is less than BCWS
so the project is behind the
schedule.
Ahead of schedule
Behind schedule
A positive cost variance
A negative cost variance


Determining what resources and quantities will be used for the Resource Planning.
project is part of: As defined in the Chapter 7
of guide to PMBOK
Cost budgeting
Cost estimating
Resource planning
Cost Management
What is true about Product life cycle? Has distinct phases that are
the same for all projects
Defines the Project Life Cycle
Has distinct phases that are the same for all
projects
Defines what work should be done in each
phase
Same as project life cycle
As part of project plan development, you noticed that your Staffing Requirements
project needed a system administrator as well as a web
developer. Currently the resource pool do not have the people
with these skills, you included the need for two more skilled
people are requirements. This is an example of you doing,
Staffing requirements
Project interface planning
Staffing management plan
Which of the following is not an input to the process Team Reward and Recognition
Development? Systems
Project Plan


Performance Reports
Reward and recognition systems
Inputs to the process Staff Acquisition include all of the Resource Histogram
following except:
Resource Histogram
Staffing pool description
Which of the following is not an example of project Risk Identification and
integration management: analyzing to identify the
root cause and avoid the
risk.
At project closure you transition the project
operations into ongoing operations.
Risk Identification and analyzing to identify
the root cause and avoid the risk.
Ensuring that the product scope and the
project scope are consistent.
A change in the project scope necessitates
changes to the schedule and the budget.
Which of the following is not a method for acquiring team Escalating the issues to the
members? Project Sponsor
Escalating issues to the project sponsor
Negotiating with functional managers
Procuring outside resources
Negotiating with other project teams
In the interaction by Project Manager with the Project team Team Building
members during working, the primary communication skills


applied are:
Problem solving
Negotiating
Team building
Public relations
A Project Plan may involve all of the following except, Risk Identification during
project execution
Because Project Plan is
prepared in the initiation
phase where as the activity
(Risk Identification during
execution) mentioned was
in execution phase.
Document project planning assumptions
Define the content of management reviews
Risk Identification during project execution
Provide a baseline for progress measurement
and project control
Which of the following is likely to be least consideration in Type of Organization
selecting project staff members?
Type of organization
Personal characteristics
Previous experience
Personal interests
In the interaction by Project Manager with the external vendor Public relations
who is one of the stakeholders during working, the primary
communication skills applied are
Problem solving


Negotiating
Team building
Public relations
Which of the following is not one of Alderfer's three Identity Needs
categories in to one of which People’s needs fall?
Existence needs
Identity needs
Relatedness needs
Growth needs
The Process Staffing management plan includes all of the Documentation on who has
following except: the authority to make
decisions
Determining how to bring team members
onto the project
A resource histogram
Determining how to release team members
from the project
Documentation on who has the authority to
make decisions
. In the interaction by Project Manager with the Project Problem Solving
sponsor during working, the primary communication skills
applied are:
Problem solving
Negotiating
Team building
Public relations
The Maslow’s needs hierarchy is in the following order Physiological, safety,
social, esteem, self-


actualization
Self-actualization, esteem, social, safety,
physiological
Physiological, self-actualization, social,
esteem, safety
Physiological, safety, social, esteem, self-
actualization
Self-actualization, social, physiological,
safety, esteem
The Processes of the knowledge area Project Integration Initiation
Management fall under all of the following phases except,
Initiation
Project Plan Development
Project Plan Execution
Change Control
In the interaction by Project Manager with the Functional Negotiation
Manager during working, the primary communication skills
applied are:
Problem solving
Negotiating
Team building
Public relations
Human Resource Management is tightly linked to which other Communication
knowledge area? Management.
As explained in the Chapter
9 of guide to PMBOK
Cost Management
Risk Management


Time Management
Outputs from Organizational Planning include all of the Project Team Directory.
following except: Project Team Directory is
the output of the process
Staff acquisition
Organization Chart
Project Team Directory
Role and Responsibility Matrix
Organization theory is used as tool and technique in the Human Resource
processes of following knowledge area Management
Cost Management
Risk Management
Human Resource Management
Of the following, which conflict resolution strategy is likely to Collaborating
yield the most productive results?
Withdrawing
Forcing
Compromising
Collaborating
Your project plan requires personnel to wear a Radiation Personnel Safety Needs
Monitor counter at all times while they are within the
protected area surrounding a nuclear reactor. This requirement
arises from your concern for:
Quality assurance reporting requirements
Personnel safety needs


Stakeholder reporting requirements
Office Security needs
All of the following are input constraints to the process Recruitment Practices.
Organizational planning except, As explained in the
Chapter 9 of guide to
PMBOK
Collective bargaining agreements
Preferences of the project management team
Expected staff assignments
All of the of the following are one of the basic factors Schedule Constraints
influencing decisions on structuring the project organization,
except
Environmental forces
Strategic choices
Schedule constraints
Technological factors
While trying to maintain the integrity of the project, the Overall Change
project manager must make sure that all approved changes to Management.
the schedule and cost are accounted in the project plan. At the
same time, the project manager makes sure that only changes
to the project scope affect the performance measurement
baselines. The project manager is said to be applying the
following measures
Progress reporting


Termination by Extinction
Termination by Subtraction
Termination by Integration
Termination by Starvation
The Project Manager Shilpa was analyzing the Budget for Project Execution
various phases of the Student Management Software In ideal Project, the biggest
development project. Among the following in which process, factor of the Project is spent
will she likely allocate more funds? in Execution. If you spend
more time in Change
Management it is likely an
inefficient project
management
Scope management
Production
Labor and materials
Project execution
All of the following are appropriate justifications to call for an Excessive overtime
additional training except, requirements in order to
Excessive overtime
requirements reflects lack
of proper planning at the
beginning. This issue
cannot be resolved through
additional training. All
other options reflect the
possible reasons, which can
create the need for


additional training.
Feedback on team performance from team
members of other projects
Reports about performance that do not meet
project requirements
Excessive overtime requirements in order to
New technologies involved in the scope of the
project
Project files, project software, and shared folders are examples Project Management
of: System
Communication management
Risk management tools
A management control that rarely changes, and then only in Change Management Plan
response to defined criteria, such as change in scope is called
Project plan
Change management plan
Project baseline
A subsidiary management plan
All of the following are inputs to the process Project Plan Project Planning
development except, Methodology.
Project Planning
Methodology is one of the
tools and techniques used
for Project Plan
development, and is not an


input.
Organizational policies
Constraints and assumptions
Historical information
Project Planning Methodology
Outputs of Integrated change control include all of the Change Requests.
following except: Change Requests are one of
the inputs to Integrated
Change Control
The project plan updates
Lessons Learned
Change requests
Corrective action
A collection of documents that will change over time as more Project Plan
information becomes available is
Project baseline
Project plan
Project Charter
While preparing the project plan, you will consider the Regulatory Compliance
organizational plan for the following reasons
Regulatory compliance
You will not refer to organization policies
because projects are above organization
policy.
Budget estimation
Financial controls
Where is the most of the project budget spent? Project Plan Execution


Scope management
Production
Project Initiation
Additional Planning, Performance Measurement and Tools and techniques used
Project Management Information Systems are all: in Integrated change control
Tools and techniques used in Integrated
change control
Tools and techniques used in performance
reporting
Inputs to Integrated Change Management
Inputs to Project Plan development
A work authorization system is: A formal procedure for
sanctioning the project
work
The control mechanism used to track cost
packages
A variation of the work breakdown structure
A formal procedure for sanctioning project
work
A policy and procedure that sets the days and
hours for the project schedule
Which of the following is not a tool or technique for project PERT
plan execution
General management skills
Work authorization system
PERT
Product skills and knowledge


You are a project manager to execute commissioning of Boiler A Work Authorization
Equipment. You decided to execute the commissioning of System
Boiler Feed Pumps by deploying the team-A. You sanctioned
a document explaining the tasks to be performed, who to do
what, and at what time. This means you might have issued one
of the following:
Project scheduling
A work authorization system
Project planning
The Process Integrated Change Control takes the following Project plan, performance
inputs reports, change requests
Project Charter, change control system,
performance reports
Performance reports, Project Charter, change
requests
Change requests, Quality results, project plan
Project plan, performance reports, change
requests
You are a project manager of a high tech project and have Project planning
been preparing the project plan. In the initial investigation you methodology, EVM and
suspected certain restrictions that may effect the performance project management
of the project. You also want to make the Project Plan on the information system
basis of factors that are considered to be true, real or certain.
What kind of tools and techniques you wish to apply for
making the project plan?
Project planning methodology, EVM and
project management information system
100 Project Management - Answers with

explanation

Project management skills and general
management skills
Stakeholder skills and knowledge and PERT
Work Authorization System and project
planning methodology
In your project you have some tasks that are subcontracted to Project Plan.
another vendor who is yet to be finalized. Even though this All assumptions and
move increases the costs, it is assumed that it makes it possible constraints are recorded in
to meet the dead lines of a major milestone. You will the Project Plan. You are
document this information in assuming that the
subcontracted tasks will
accelerate the execution
even though you do not
have control at that
moment.
Project Charter
Scope Definition
Risk Management Plan
The project plan
All of the following are true about Project Plan Execution It involves managing
except: change to the original
project plan.
This statement holds good
for Project Control.
The majority of the budget will be expended
in performing this process
This is where the product of the project is

101

created
It involves managing change to the original
project plan
It requires PM skills as well as general
management skills
Meredith & Mantel describe four varieties of project Termination by Subtraction
termination which include all of the following except:
All the following statements are true about Project Planning It is an input to the Project
methodology except, Plan Development.
Project Planning
Methodology is one of the
tools and techniques used
for Project Plan
development, and is not an
input.
It is an input into the project plan
development
It is a structured approach used to guide the
project team during the development of the
project plan
It may include complex simulations to
identify schedule risks
It may include project planning templates and
forms
Which of the following is not a tool or technique for Integrated Work Authorization
change control? System

explanation

Configuration management
Work Authorization system
General contents of the Project plan include, Project Charter, cost
estimates, project schedule,
required staff, key risks
Cost baselines, schedule baselines,
assumptions, flow charts
Project Charter, cost estimates, project
schedule, required staff, key risks
Scope management plan, work-arounds,
schedule management plan, budget
Scope statement, product description, control
charts, project charter
At what point in the project would stakeholders have the most Concept.
ability to influence the characteristics of the Project? Because of the cost changes
and error correction is
minimum in the beginning
of the project.
Implementation
Development
Concept
Close out
. At what stage in the project life cycle would costs be the Concept.
lowest? By nature of the project life
cycle, the costs are lowest
in the beginning peak in the

103

middle and moderate at the
end.
Concept
Development
Implementation
Close out
In ABC Organization, you are appointed as Manager for Program management.
running a Daily News Magazine. Your current assignment is Running a newspaper
magazine is an ongoing
process that may involve
some projects such as
publishing and releases the
newspaper of certain date.
Project management
Functional management
Facility management
Program management
An example of a Project Stakeholder is: Individuals and
organizations who are
actively involved in the
project, or whose interests
may be positively or
negatively affected as a
result of project execution
or successful project
completion.
Supplier.

explanation

Individuals and organizations who are
actively involved in the project, or whose
interests may be positively or negatively
affected as a result of project execution or
successful project completion.
The plan sponsor, project manager, team
members, client
The customer
Phase exits, kill points and stage gates are used for what Determining if the project
purpose? should continue to the next
phase.
Planning the next stage in the project
Communicating milestones to stakeholders
Determining if the project should continue
into the next phase
Measuring earned value
The probability of Risk and uncertainty is the highest in the Concept.
following project phase: Because there is lack of
clarity in the beginning of
the project, it is more likely
to have high risk in the
beginning
Close out
Development
Implementation
Concept
Executing processes are concerned with: Devising and maintaining a

105

workable method to
accomplish the business
need that the project was
undertaken to address.
As defined by the Guide to
PM BOK in Chapter 3.
begin
carry out the plan
Devising and maintaining a workable method
to accomplish the business need that the
project was undertaken to address
Ensuring that the project objectives are met
by monitoring and measuring progress and
taking corrective action when necessary
Project Management processes are: Concerned with describing
and organizing the work of
the project. As defined by
the Guide to PM BOK in
Chapter 3.
A series of actions bringing about a result
Concerned with describing and organizing the
work of the project
Concerned with specifying and creating the
product
Broken into core and non-core processes
Which of the following is not a Project Management Project Configuration

explanation

knowledge area? Management
Project Management
knowledge areas are
identified as Project
Integration Management,
Project Scope Management,
Project Time Management,
Project Cost Management,
Project quality
Management, Project HR
Management, Project Risk
Management and Project
Procurement Management.
These are the knowledge
areas that are required for
any Project. Configuration
management is a
knowledge area that may be
required in software
development projects but
not an area required for any
project.
Project Quality Management
Project Procurement Management
Project Configuration Management
Project Risk Management

107

As a Project Manager of a construction project, part of your Controlling.
job is to determine if there are variances to the scope of the
project, the schedule, the budget and the technical
requirements and execute the needed adjustments. There
responsibilities are included in the process group
Executing
Controlling
Planning
Closing
In ABC corporation, a quality manager is required. The person A Program because the
needs to regularly monitor the quality levels and strive for the tasks are ongoing in nature.
continuous improvement. The tasks of this role come under, A Project must have
definite start and end dates
with specific objectives and
is temporary in nature.
A Program because it is an ongoing process.
A Program because the activity is related to
quality and not on specific deliverables.
A Project because the tasks are constrained by
resources and time.
A project because they involve planning,
execution and control.
Core planning processes: Are the planning processes
that have clear
dependencies so they must
be executed in essentially
the same order on most
projects.

explanation

As defined in the Chapter 3
of a Guide to PM BOK.
Include scope planning, cost planning,
schedule planning and performance reporting
Provide a framework for the project
Are used to track the progress of a project
are the planning processes that have clear
dependencies so they must be executed in
essentially the same order on most projects
Controlling processes are concerned with: Ensuring that the project
objectives are met by
monitoring and measuring
progress and taking
corrective action when
necessary.
As defined by the Guide to
PM BOK in Chapter 3.
carry out the plan
begin
Ensuring that the project objectives are met
by monitoring and measuring progress and
taking corrective action when necessary
Devising and maintaining a workable scheme
to accomplish the business need that the
project was undertaken to address

109

For preparations to negotiate with the customer for a project in Company Policies and
a foreign country, which of the following should be your guide Procedures.
on what business practices are allowed and discouraged? PMP Code of conduct
provides direction but
company policies and
procedures will be the
ultimate guide that must be
referred
The project charter
The project plan
Company policies and procedures
The PMP code of conduct
As a Project Manager you and your team worked hard and II and III.
made the project successful. The project is closed with all the You need to follow the
reporting completed. However you didn’t document the right processes that include
lessons you learned during the project because you feel this is documenting the lessons
hard earned experience which can not be shared free of cost learnt. You also violated
with other project managers in the organization. You violated the responsibility of sharing
the professional responsibility of category and contributing to project
I. Report Violation management
II. Follow right process knowledgebase.
III. Contribute to knowledge base
I and II
II and III
II
III
In a power plant erection project, you needed a special welder You violated the
to execute an important, sensitive and expensive work. You professional code of

explanation

know that your friend is an expert in the area and appointed conduct because you have
him in the project. What is true about this scenario? not followed the clean
process of selection by
inviting a number of
qualified parties for
selection on an important
task.
You violated professional code of conduct
because you included your friend in the
project
You violated the professional code of conduct
because you have not followed the clean
process of selection by inviting a number of
qualified parties for selection on an important
task.
You did not violate the Professional code of
conduct because even though the welder is
your friend he is good at work.
You did not violate the professional code of
conduct because the welder is not relative and
just a friend.
By executing the software development project ahead of Review the situation with
schedule by 10%, you will be getting good incentive. When the customer and reconfirm
you reviewed the progress of the project that is likely to what customer wants
complete ahead of schedule, you noticed that the project
deliverables are meeting the requirements described in the
contract, but the functionality built on the software will not

111

completely satisfy the customer requirements. What is your
appropriate action?
Instruct the team members to keep silence on
this information and submit the project
Submit the project because as per contract
you finished the work
Review the situation with the customer and
reconfirm what customer wants
Change the scope without consulting the
customer and provide the needed
functionality
While executing a project in a foreign country, the customer Contact your company and
offered you a gift which is an accepted practice in the country. take the advise for correct
However the value of gift is more than limit allowed by your action.
company. The best action for you is Accepting the gift without
notice of your company or
rejecting the gift without
checking with your
organization are not
appropriate because you
need to deal with customer
at best level without
violating the company
interest.
Accept the gift, as it is not illegal in the
country.
Reject the gift stating the reason that the
company doesn’t allow taking gifts of higher

explanation

value from customer
Accept the gift and keep the information
confidential
Contact your company and take the advise for
correct action.
You took over an important project, which must be started as Starting a project with out
soon as possible. The Management detailed the requirements project charter is not
and asked you to start working on the project at the earliest. ethical.
You are in fact starting the project with out a formal project Professional responsibility
charter. What is true about this situation? includes the responsibility
of following the right
process and starting a
project with formally
approved project charter is
important and not doing so
is unethical to the
organization because lack
of project charter leads to
lack of clarity, expenses
and delays.
Some times due to pressure situations you
will have to execute the projects in this
manner
Starting a project with out project charter is
not ethical.
You can start the work but complete the
project charter at the end of project.

113

With out a project charter it will be more
flexible for you to adjust the direction of
project as you proceed.
While traveling for a presales activity with a potential Inform the people next to
customer, you noticed that people next to your seat in the you that you belonged to
flight belonged to your competitors and were discussing the their competitor and advise
strategy for winning in the presales effort with the same them to discuss later.
customer. What is the appropriate action for you?
Carefully hear the conversation and prepare
for the counter action to win the deal
Do not pay attention and continue your work.
Inform the people next to you that you
belonged to their competitor and advise them
to discuss later.
Do not inform that you are competitor and
start conversation with the people to extract
more details
Your team member is working in India with time zone Try to adjust timings to
difference of 12.5 hours. Her presence in the project some other time, which will
discussion was very important and teleconference meeting is be less inconvenient to all
scheduled at a time, which in her time zone will be 02.30 AM. members.
What action will you take when the team member doest attend Professional responsibility
the teleconference? includes respecting the
cultural differences and
time zone factors.
Ask her to resign because as a team member
working in global organization she must work
in any time zone.

explanation

Try to adjust timings to some other time,
which will be less inconvenient to all
members.
Ask other team members to attend in the mid
night so that she can attend the teleconference
in the morning time.
Lay of the person for indiscipline.
As a project manager, while reviewing the cost estimates for Check with the team
the project, you noticed that the estimate for certain element in member who made the
the WBS is 5 % more than the estimate for similar work estimate, on how the
element in a couple of previous projects executed earlier by estimate is arrived with
your organization. You may opt for the best action on this reasonable justification.
finding as follows:
Accept the estimate because you must trust
your team members
Correct the estimate and allocate additional
budget to management or contingency reserve
Fire the person who made the inflated
estimates.
Check with the team member who made the
estimate, on how the estimate is arrived with
reasonable justification.
You hired an employee from your competitor’s organization. Refuse to take such help
The employee offered to provide confidential information from the employee and
about the competitor and the information will help you win advise to check with the
over the competitor. Your response will be, company policies.
You should never

115

encourage your team
members to disclose
confidential information
from your competitors and
must educate the person.
Firing the employee will be
based on the company
policies.
Fire the employee for violating the
professional ethics
Refuse to take such help from the employee
and advise to check with the company
policies
Use the information but ensure the
confidentiality
Use the information and inform your
company on the same.
You as a project manager received a request from project Make accurate estimate and
customer to inflate your cost estimates by 20 percent to get the in addition create a risk
appropriate funds for the project because the customer’s assessment on why the
management grants less than what is asked. Which of the project budget would be
following is the best response to this situation? inadequate.
Add the additional estimate asked by
customer as a contingency reserve.
Add the additional estimate asked by
customer, by inflating estimates for all tasks.
Make two estimates one for customer and the
other for you to refer while execution.

explanation

Make accurate estimate and in addition create
a risk assessment on why the project budget
would be inadequate.
You noticed that one of your team members has been Accept the ideas without
consistently using the ideas from his previous employer any restrictions.
company. What is the best action for you from the following? Your knowledge from other
companies can be applied
as long as you haven’t
signed any non-disclosure
agreement.
Fire the team member
Keep a check on the team member’s work
and ensure he doesn’t get sensitive
information
Accept the ideas but ensure that the team
member will not tell the source of ideas
Accept the ideas without any restrictions.
Which of the following is true regarding the quality and Quality is the process of
project scope. completing the scope to
meet stated or implied
needs.
The project scope may or
may not include the quality
metrics.
The project scope will include metrics for
quality.
Quality metrics will be applied to the project

117

scope.
Quality is the process of completing the scope
to meet stated or implied needs.
Quality is the process of evaluating the
project scope to ensure quality exists.
A fishbone diagram is the same as Ishikawa
Ishikawa
Pareto
Flow
Control
Which of the following is not an attribute of the cost of Rework
nonconformance?
Loss of customer goodwill
Downtime
Safety measures
Rework
What is true about Quality assurance and Quality Control? I.
Quality control is a typical inspection process while Quality assurance is the
Quality Assurance is a management process. responsibility of the
Quality and Quality Assurance are same in Project management while the
Management quality control is inspecting
III. Quality control is management process while Quality whether certain work is
assurance is a typical inspection process. with in the specifications.
I and II
II and III
III
I
The fraction rejected is: The ratio of the numbers of

explanation

items rejected to the
number of items inspected
The ratio of the number of items inspected to
the number of items rejected
The number of parts returned by the
customer.
The ratio of the numbers of items rejected to
the number of items inspected
The number of items rejected to number of
items accepted
The Project management must also focus on the possibility of People.
changes while planning Risk Management and Change The statistics say that
control. Which of the following elements in likely to change at people related changes are
slower pace? least in pace, among the
changing elements that can
influence the risks of
project.
People
Technology
Organizations
The Environment
While managing a software project, you anticipate the risk of Mitigation.
company being taken over and it can result in to working on a To reduce the impact of
different technology, which was not adopted, in the current migrating the project to
project. To manage the risk, you trained your team members new technology you trained
on the other technology for 3 days. You wanted to manage the the team members on the
risk with the approach of new technology. This is

119

mitigation of risk.
Avoidance
Acceptance
Mitigation
Transference
While working on the power plant erection, you anticipate risk Transference
in the event of drum lifting. So you totally outsourced the Because the risk is not
event. You actually preferred to manage the risk through eliminated but transferred
to another party, it is
considered transference.
Avoidance
Acceptance
Mitigation
Transference
Which of the following describes SWOT? Analysis of strengths,
weakness, opportunities,
and threats
Analysis of strengths, weakness, options, and
techniques
Analysis of strengths, weakness,
opportunities, and threats
Strengths, Weaknesses, opportunities and
tests
Ratings of 1 to 100
You have an event that has a risk probability of .60 and the 600K
impact is cost of Rs.1000K. What is the contingency fund for The contingency fund is
the risk? calculated as multiple of
probability and impact.

explanation

Hence the answer is 600K.
1000K
600K
400K
Information is insufficient
A table of risks, their probability, impact, and a number Risk Matrix
representing the overall risk score is called
Risk table
Risk matrix
Quantitative matrix
Qualitative matrix
Decomposing the major deliverables in to smaller, more Scope Definition.
manageable components to provide the better control is called As defined by PMBOK
Scope management
Scope definition
Scope verification
A numbering system that is used to monitor the project costs Chart of Accounts.
by category such as labor, supplies or materials, for example is As defined by PMBOK
called
Work Breakdown structure
Chart of Accounts
Activity Based Costing
By purchasing an automation system at a price of 100K, the
project manager estimates a saving of 200K over a period of 1 NPV Is calculated as
year. What is the net present value of the saving if the rate of follows:

121

interest applied is 10%?
Future value (FV) = Present
Value (PV) * (1+r)n
So the saving of 100K (FV)
will have the PV of 200 /
(1+ 0.1) = 181.8 K.
Net Present Value = -100K
+ 181.8 = 81.8K
100K
200K
90K
81.8K
Year Cash Flow Cash Flow outgoing (million)

incoming(million)
2001 0 5
2002 3 0.9
2003 4 1
2004 1 1.75
2005 0.5 0.35
Table 1: Cash Flow estimates made by the project manager over the
coming 5 years
Refer to table 1 : 3 years.

From the available data what is the payback period for the Payback period is the point
project? where the cumulative
incoming cash flow equals
the cumulative outgoing

explanation

cash flow.
In the third year, the
outgoing cash flow 6.9
millions is less than 7
millions of cumulative
incoming cash flow. So
somewhere in the third year
the payback will be
attained.
1 year
2 years
3 years
4 years
You are the project manager executing the project with project Request the customer to
at user testing phase. The customer made a request to make make a formal change
some changes to the scope of project. You will handle the request and attend the
requirement with one of the following approaches request as per the agreed
process.
Accept the change and execute the change as
part of the project without additional cost
because customer is the ultimate deciding
authority.
Request the customer to make a formal
change request and attend the request as per
the agreed process.
Estimate the impact of changes to scope, cost,
and schedule and inform the sponsor.

123

Ensure that scope change complies with all
relevant contractual provisions
Work breakdown numbering system provides the following Provides the ability to
identify the level at which
individual elements are
found.
The numbering system in
the WBS helps quickly
identify the level at which
the specific element is
existing in the WBS.
Project Charter provides
project justification.
WBS with or without
numbering system can help
estimate costs of work
breakdown structure
elements.
Ability to systematically estimate costs of
work breakdown structure elements
Provides project justification
Provides the ability to identify the level at
which individual elements are found
Ability to use the data in project management
software
As a project manager while evaluating the progress you Ask the team member how
notices that a team member has included additional they know there is no time,
functionality without impacting the other constraints time, cost, or schedule impact

explanation

cost, and schedule. What will be your immediate action?
Ask the team member how they determined
the functionality of this addition
Ask the finance department to assess the
value of the improvement
Ask the customer to review this and to submit
a change request
Ask the team member how they know there is
no time, cost, or schedule impact
Even though the scope has been completed and within cost and it was completed within the
time objectives set by the sponsor, the project sponsor, baseline.
however, says that the project is a failure, because the original
schedule was for 20 weeks and the project was completed in
23 weeks With the project base line at 23 weeks, the project
manager can claim the project as success based on the fact
that:
it only had 3 weeks of changes.
3 weeks of delay was within the tolerance
limits for delay.
there was good communication control.
it was completed within the baseline.
Activity O P M
I 1 1 1
II 2 3 3
III 10 13 12
IV 5 5 5
V 3 6 4

125

VI 1 1 1
VII 5 8 6
VIII 9 13 10
IX 5 5 5
Table 2: List of Project Activities with optimistic (O), pessimistic(P)

and Most likely (M) time estimates
Please refer to table 2: The expected duration of activity III is 11.8.

Estimated duration =
(O+4M+P) /6.
11.8
12.5
14.2
13.5
You as a project manager want to use a tool that shows the Gantt Chart.
project activities with start and end times of each activity is In a Gantt Chart, the
reflected. You may want to use the following tool activities are represented in
a horizontal time line with
start and end dates.
Gantt Chart
PERT
Precedence Diagram
Bill of Material
As a project manager you were asked to advance the project
completion date with least cost implications. All you try to do
is to reduce the schedule based on alternatives that are the
minimum expensive. You are actually trying to advance the
Crashing

explanation

Fast tracking
Subcontracting
Hurryup defense
AS a project manager, after identifying the work hours Resource Leveling.
required versus work hours from resources available, you also
need to ensure that the resources are best utilized at their
available times. You are said to be doing,
Resource Leveling
Resource identification
Resource recruitment
Resource allotment
A Baseline schedule is Original schedule plus
changes with approved
Original schedule plus changes with approved
Project schedule that is as per stakeholders
requirements
Project performance schedule
Original schedule, which remains same and
compared with actual progress.
As a project manager, you were asked to check if it is possible Fast tracking.
to advance the project completion date. One of the options you
opted was to identify activities scheduled in sequence that can
be parallel executed. You are actually trying to advance the
Crashing

127

Fast tracking
Subcontracting
Hurryup defense
Refer to table 2. 32.3
The expected time in days to complete the project is The duration of project is
calculated as follows:
(ΣO+Σ4M+ΣP) /6. (For all
activities in the critical
path).
32.3
41.5
25.5
40.1

explanation
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Project Management

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Product Management of a Business Solution made a business

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No. The completion date is always determined

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All of the following are examples of Information retrieval

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Year Cash Flow Cash Flow outgoing (million)

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Table 2: List of Project Activities with optimistic (O), pessimistic(P) and