Project Management MCQ LSC

Project Management MCQ’s
Chapter 1 Introduction: Why Project Management?

1) Which of these countries is NOT identified in the text as having a developing economy with a
substantial market?
1. A) Russia
2. B) China
3. C) India
4. D) Europe
Answer: D
Answer: B
10) A project typically has:
1. A) A defined start and end date.

2. B) A defined start date but no defined end date.
3. C) No defined start but a defined end date.
4. D) No defined start or end date.
Answer: A
11) The Project Management Body of Knowledge Guide definition of a project indicates that a project
is:
1. A) Multifunctional.
2. B) Permanent.
3. C) Designed to avoid using human resources.
4. D) Not limited by a budget.
Answer: A
12) The acronym PMBoK stands for:
1. A) The Personal Management Before or Kernel.

2. B) The Project Movement Behind our Kernel.
3. C) The Project Management Body of Knowledge.
4. D) The Performance Measurement Body of Knowledge.
Answer: C
13) Project members may be from:
1. A) Different departments.
2. B) Other organizational units.
3. C) One functional area.
4. D) All of the above.
Answer: D
14) There is no such thing as a project team:
1. A) With a deliverable.
2. B) With an ongoing, non-specific purpose.
3. C) With a goal.
4. D) With a project manager.
Answer: B
15) A project that results in "doing the wrong things well" has ignored the:
1. A) Budgetary goal.
2. B) Technical goal.
3. C) Customer satisfaction goal.
4. D) Scheduling goal.
Answer: C
16) Which of these is NOT characteristic of a project?
1. A) Projects are responsible for the newest and most improved products, services, and
organizational processes.
2. B) Projects are ad hoc endeavours with a clear life cycle.
3. C) Projects provide a philosophy and strategy for the management of change.
4. D) Traditional process management functions of planning, organizing, and controlling do not
apply to project management.
Answer: D
17) Which of the following is NOT a project constraint?
1. A) The budget
2. B) The customer requirements
3. C) The schedule
4. D) The technical specifications
Answer: B
18) A product is introduced into a market, gains the acceptance of a fickle public, and finally is
supplanted by a new and improved offering. This phenomenon is known as the:
1. A) Product life cycle.

2. B) Rule of 80.
3. C) Mendoza line.
4. D) Beta.
Answer: A
19) The period of time that is ideal to achieve the success of a new product is the:
1. A) Moment.
2. B) Launch window.
3. C) Window of opportunity.
4. D) Momentito.
Answer: B
20) A typical project stays within functional and organizational boundaries.
Answer: FALSE
21) A project exists outside of the standard line organization.
Answer: TRUE
22) Product life cycles are longer now than twenty years ago.
Answer: FALSE
24) Studies of IT projects reveal that:
1. A) Initial cost estimates are overrun by an average of 15%.

2. B) Over 66% of IT projects were delivered to customers but not used.
3. C) About 25% of all IT projects become runaways by overshooting budgets and timetables.
4. D) Up to 75% of software projects are cancelled.
Answer: D
25) A business reality that makes effective project management critical is the fact that:
1. A) Products are becoming increasingly simple.

2. B) Inflation is rampant.
3. C) Product life cycles are compressing.
4. D) Product launch windows are widening.
Answer: C
26) One of the things that the technical side of project management emphasizes is:
1. A) Team building.
2. B) Conflict management.
3. C) Negotiation.
4. D) Budgeting.
Answer: D
27) The behavioral side of project management emphasizes:
1. A) Scheduling.
2. B) Leadership.
3. C) Planning.
4. D) Project selection.
Answer: B
28) One unique feature of projects is that they blend both:
1. A) Financial and behavioral challenges.

2. B) Technical and temporal challenges.
3. C) Technical and behavioral challenges.
4. D) Financial and temporal challenges.
Answer: C
29) Project management is a useful training ground for:
1. A) Interns.
2. B) Recent graduates
3. C) Employees of recently acquired companies.
4. D) Senior executives.
Answer: D
32) Which of the following types of activities is more closely associated with projects rather than
processes?
1. A) An activity that is ongoing

2. B) An activity that is day-to-day
3. C) An activity that uses existing systems
4. D) An activity that establishes its own work rules
Answer: D
33) Which of the following is accomplished through project management?
1. A) A cellular phone company activates a new customer's service.

2. B) An automotive manufacturer produces a day's quota of vehicles.
3. C) A software developer creates a new crash-proof operating system.
4. D) A retailer restocks the shelves after a day of brisk sales.
Answer: C
34) Projects differ from classic organizational processes because projects are:
1. A) Discrete activities.
2. B) Part of line organization.
3. C) Well established systems in place to integrate efforts.
4. D) Multi-objective.
Answer: A
35) Process management features ________ with respect to project management.
1. A) greater team member heterogeneity

2. B) greater certainty of performance
3. C) fewer numbers of goals and objectives
4. D) lower adherence to established practices
Answer: C
36) Projects are typically ongoing, day-to-day activities that have goods and services as outputs.
Answer: FALSE
37) The special nature of projects relieves project managers from their routine of planning,
organizing, motivating, directing, and controlling.
Answer: FALSE
39) The use of benchmarking allows companies that are relatively immature at project management to
achieve quantum leaps of improvement.
Answer: FALSE
40) Most effective project maturity models chart both a set of standards that are currently accepted as
state-of-the-art as well as a process for achieving significant movement towards these benchmarks.
Answer: TRUE
41) Acme uses no recognizable project management processes and has entertaining project meetings
because each member has a unique way of reporting progress or lack thereof. Acme is most likely at
the moderate level in the generic project management maturity model.
Answer: FALSE
42) Any organization, no matter how initially unskilled in project management, can begin to chart a
course toward the type of project organization they wish to become.
Answer: TRUE
43) A company's culture has little impact on whether projects are successfully implemented.
Answer: FALSE
45) Geoffco's project manager names three individuals and requests a project budget of $3,000,000
for the new 8-Pod, a backpack-sized personal music player for 8-track tapes capable of holding up to
100 songs from the '60s and '70s. This important step takes place during ________ of the project life
cycle.
1. A) planning
2. B) conceptualization
3. C) execution
4. D) termination
Answer: B
46) The man-hours requirement is typically at a peak during the ________ phase of the project life
cycle.
1. A) planning
3. C) execution
4. D) termination
Answer: C
47) Individual activities and their durations are developed during the ________ phase of the project
life cycle.
1. A) planning
3. C) execution
4. D) termination
Answer: A
48) The general contractor handed Antoni Gaudi the keys to his dream home during the ________
phase of the project life cycle.
1. A) planning
3. C) execution
4. D) termination
Answer: D
49) Keith Monroe nails hundreds of pieces of culled lumber in the blazing July sun to form a parquet
deck for his barn roof. He and his assistant are clearly in:
1. A) The termination stage of the project life cycle.

2. B) The planning stage of the project life cycle.
3. C) The execution stage of the project life cycle.
4. D) Way over their heads.
Answer: C
50) The MBA redesign committee presents the results of their five-year project to their bemused
Dean. They hope it is not just wishful thinking that they are in the:
1. A) Planning phase.
2. B) Conceptualization phase.
3. C) Execution phase.
4. D) Termination phase.
Answer: D
51) Client interest is typically at its lowest during the:
1. A) Conceptualization phase.
2. B) Planning phase.
Answer: C
52) The degree of innovation and creativity is typically at its highest during the:
Answer: C
53) Which of these factors are essentially complete opposites from an intensity perspective across the
project life cycle?
1. A) Client Interest and Creativity

2. B) Creativity and Resources
3. C) Resources and Project Stake
4. D) Project Stake and Client Interest
Answer: A
54) Which of these factors are essentially complete opposites from an intensity perspective across the
project life cycle?
1. A) Client Interest and Uncertainty

3. C) Uncertainty and Project Stake
4. D) Project Stake and Client Interest
Answer: C
55) Which of these factors are highly similar from an intensity perspective across the project life
cycle?
1. A) Client Interest and Creativity

3. C) Resources and Project Stake
4. D) Project Stake and Uncertainty
Answer: B
56) The amount of corporate investment is typically at its lowest in the:
Answer: A
57) The amount of corporate investment is typically at its highest in the:
Answer: D
58) The degree of risk associated with the project is typically at its highest during the:
Answer: A
59) The technical challenges that the project has to face are typically at their lowest during the:
Answer: D
60) The commitment of financial, human, and technical resources is highest during the:
Answer: C
61) The only component that does NOT exhibit a wave throughout the project life cycle is the:
1. A) Client interest.
2. B) Resources.
3. C) Creativity.
4. D) Uncertainty.
Answer: D
62) Which of these effects exhibits an intensity level that is a nearly perfect sinusoid?
1. A) Client interest
2. B) Uncertainty
3. C) Creativity
4. D) Resources
Answer: A
63) The initial goal and technical specifications of the project are developed during the planning
stage.
Answer: FALSE
64) Client interest in a project is highest during the termination and conceptual phases.
Answer: TRUE
68) The most recent addition to the four criteria of project success is:
1. A) Time.
2. B) Cost.
3. C) Performance.
4. D) Client acceptance.
Answer: D
69) The project success criteria that functions as a quality check is:
1. A) Time.
2. B) Cost.
3. C) Performance.
4. D) Client acceptance.
Answer: C
70) Which of the following statements about project success criteria is BEST?
1. A) Project cost is an external performance measure.

2. B) Completion time is an internal performance measure.
3. C) Client acceptance is an internal performance measure.
4. D) Client acceptance is often referred to as conducting a "quality" check.
Answer: B
71) A project has achieved success. Which of the following statements is another way of expressing
the same outcome?
1. A) The project achieved the dual constraint plus the two external conditions.
2. B) The project achieved the triple constraint plus the one internal condition.
3. C) The project achieved the triple constraint plus the one external condition.
4. D) The project achieved the dual constraint plus the two internal conditions.
Answer: C
72) A design project is completed on time, under budget, to the customer's satisfaction, and in
adherence to the technical specifications agreed. The new product takes the market by storm and
everyone associated with the project receives a coveted gold star. Under the four dimensions of
project success model, the project still needs to show:
1. A) Future potential.
2. B) Business success.
3. C) Impact on the customer.
4. D) Efficiency.
Answer: A
73) Some argue that the quadruple constraint is insufficient for determining the success of a project.
Instead, the quadruple constraint must be considered along with:
1. A) The project's potential for generating future opportunities.

2. B) The project's ability to harm competitors.
3. C) The project's risk in relation to its reward.
4. D) The project's efficiency as it approaches 100%.
Answer: A
74) The dimension of project success that is realized first (chronologically) is:
4. D) Efficiency.
Answer: D
75) The dimension of project success that is realized last (chronologically) is:
4. D) Efficiency.
Answer: A
76) The dimension of project success that is measured by both an internal and external criterion is:
4. D) Efficiency.
Answer: C
77) In the Atkinson model of project success, a project's impact to the surrounding community would
be classified as:
1. A) An element of the iron triangle.

2. B) A stakeholder benefit.
3. C) An organizational benefit.
4. D) A strategic goal.
Answer: B
78) In the Atkinson model of project success, stakeholder benefits NOT accrued by the organization
might include:
1. A) Improved effectiveness.
2. B) Improved efficiency.
3. C) Social and environmental impact.
4. D) Increased profits.
Answer: C
79) The Atkinson model considers which of these benefits is being accrued by the organization if a
project is successful?
1. A) Information quality
2. B) Validity
3. C) Satisfied users
4. D) Increased profits
Answer: D
80) All groups that are affected by a project are known by this name:
1. A) Ombudsmen.
2. B) Team members.
3. C) Minions.
4. D) Stakeholders.
Answer: D
81) An information system project might be assessed by which of the following criteria?
1. A) Maintainability
2. B) Reduced waste
3. C) Time
4. D) Personal development
Answer: A
82) The classic triple constraint standard for project performance is composed of time, cost, and client
acceptance.
Answer: FALSE
83) The business success dimension of project success determines whether the project achieved
significant commercial success.
Answer: TRUE
84) The Atkinson model for assessing project success gathers input from all of the project's
stakeholders.
Answer: TRUE
89) ABC company compares the way they manage projects with the way rival NBC company
manages projects. ABC Company is engaged in:
1. A) Corporate espionage
2. B) Ring level 0.
3. C) Competitive benchmarking.
4. D) Cutting edge practices.
Answer: C
90) Project management maturity models are NOT used to:
1. A) Compare practices against an industry standard.

2. B) Define a systematic route for improving project management practices.
3. C) Evaluate current project management practices.
4. D) Ascertain all stakeholders relevant to a project in the conceptualization phase.
Answer: D
91) A spider-web diagram is useful for:
1. A) Showing company performance on a number of criteria simultaneously.

2. B) Collecting data on how a competitor manages projects.
3. C) Identifying industry standards for project management maturity.
4. D) Coaching, evaluating, and auditing projects.
Answer: A
92) Maynard and Zed construct a spider-web diagram for their latest initiative at the pawn shop. The
rings of their spider web diagram show:
1. A) The dimensions or success factors that are most important to the pawn shop.
2. B) The scores achieved on each of the dimensions.
3. C) The competitive comparison among other pawn shop projects.
4. D) The relative importance of each of the dimensions or critical success factors.
Answer: B
93) The project maturity model developed by the Center for Business Practices would have ________
rings if a spider-web diagram were used.
1. A) Three
2. B) Four
3. C) Five
4. D) Six
Answer: C
94) The most basic level in Kerzner's project management maturity model is:
1. A) Common language.
2. B) Common processes.
3. C) Initial process.
4. D) Ad hoc.
Answer: A
95) Carnegie Mellon's SEI model, ESI International's project framework, and the Center for Business
Practices all call their highest level of maturity:
1. A) Continuous improvement.
2. B) Optimizing.
3. C) Ganbei.
4. D) Comprehensive.
Answer: B
96) The author's synthesis of all well-known maturity models states that moderate project
management maturity is characterized by:
1. A) Ad hoc processes.
2. B) Little support from upper management.
3. C) Project management training programs.
4. D) Active exploration of ways to improve project management.
Answer: C
97) The maturity models presented in this chapter all demonstrate that:
1. A) Project management maturity must have at least three levels.

2. B) Project management maturity tends to stagnate and then improve in a sudden burst to the next
level.
3. C) Project management maturity can be measured only imprecisely.
4. D) Project management maturity is an ongoing process based on continuous improvement.
Answer: D
98) Among the maturity models presented in this chapter, the one term that could be used to
characterize the lowest level of each is:
1. A) Ad hoc.
2. B) Ad nauseam.
3. C) Integrated.
4. D) Derivative.
Answer: A
99) Which statement regarding the Project Management Institute's Project Management Body of
Knowledge (PMBoK) is BEST?
1. A) The PMBoK consists of seven knowledge areas of project management skills and activities.
2. B) Each element of the iron triangle is represented by its own area.
3. C) Project risk management is part of the integration section.
4. D) The institute's position that a properly planned project will not require any changes precludes
the need for change control in the model.
Answer: B
Chapter 2: The Organizational Context: Strategy, Structure, and Culture

1) Which of the following is NOT an element of strategic management?
1. A) Formulating cross-functional decisions

2. B) Implementing cross-functional decisions
3. C) Evaluating cross-functional decisions
4. D) Eliminating cross-functional decisions
Answer: D
2) Which of the following is descriptive of a vision statement?
1. A) Inspirational
2. B) Functional
3. C) Supportive
4. D) Critical
Answer: A
3) One purpose of a mission statement is to:
1. A) Establish a sense of what the organization hopes to accomplish.

2. B) Explain the company's reason for existence.
3. C) Support the tactical plans of the organization.
4. D) Explicitly enumerate the projects in the company's portfolio.
Answer: B
4) A strategic perspective on project management might ask which of the following questions prior to
undertaking a project?
1. A) What is our corporate culture?

2. B) Does this project support the company vision?
3. C) Do we have the necessary budget for this project?
4. D) Can we define the problem?
Answer: D
5) The highest priority among strategic choice elements is:
1. A) Objective.
2. B) Strategy.
3. C) Mission.
4. D) Goal.
Answer: C
6) Which of these strategic elements exists at a higher level than the others?
1. A) Programs
2. B) Objectives
3. C) Goals
4. D) Strategies
Answer: B
7) A strategic element consisting of statements such as "a 5% increase in freshman to sophomore
retention" and "a 10% increase in the six-year graduation rate" is BEST described as a:
1. A) Goal.
2. B) Program.
3. C) Strategy.
4. D) Mission.
Answer: A
8) A strategic element that contains formally titled initiatives such as the Customer Survey Project,
the Small Business Alliance Project, and the Employee Relations Project is most likely a:
1. A) Mission.
2. B) Strategy.
3. C) Goal.
4. D) Program.
Answer: D
9) The same project managed in the same fashion may succeed in one organization but fail in another.
Answer: TRUE
10) Most companies are well suited to allow for successful completion of projects in conjunction with
other ongoing corporate activities.
Answer: FALSE
11) Developing vision and mission statements is an important tactical step in project management.
Answer: FALSE
12) One element of strategic management is cross-functional decision making.
Answer: FALSE
13) Strategy, goals, and programs support the organizational mission.
Answer: TRUE
19) The management department at the university decides to add a new program in restaurant, hotel,
and institutional management. As part of the development process they hold focus groups consisting
of area business leaders, current and former students, and restaurant and hotel owners. These groups
can be described as:
1. A) Project leaders.
2. B) Project workers.
3. C) Stakeholders.
4. D) Clients.
Answer: C
20) Which statement about stakeholders is BEST?
1. A) Stakeholders wield considerable power.

2. B) Stakeholders can potentially impact project development.
3. C) Stakeholders are external to a company.
4. D) By definition, clients are not stakeholders, they are customers.
Answer: B
21) External stakeholders that are external to a project but possess the power to effectively disrupt the
project's development are:
1. A) Intervenor groups.
2. B) Environmental groups.
3. C) Stressor groups.
4. D) Special-interest groups.
Answer: A
22) Which of the following statements about clients is BEST?
1. A) Client refers to the entire customer organization.

2. B) Clients tend to be concerned with receiving the project as quickly as they can possibly get it.
3. C) Client groups tend to have similar agendas.
4. D) A single presentation is best when dealing with all client groups in an organization so that
everyone hears exactly the same message.
Answer: B
23) Which of the following is an internal project stakeholder group?
1. A) Clients
2. B) Suppliers
3. C) Functional managers
4. D) Competitors
Answer: C
24) Which of the following is an external stakeholder group?
1. A) Project team members

2. B) Top management
3. C) Internal accountants
4. D) Environmental groups
Answer: D
25) The group that provides raw materials or resources that the project team needs to complete the
project is:
1. A) Suppliers.
2. B) Intervenor groups.
3. C) Top management.
4. D) Functional managers.
Answer: A
26) The first step in Block's framework of the political process as applied to stakeholder management
is to:
1. A) Assess your own capabilities.

2. B) Assess the environment.
3. C) Identify the goals of the principal actors.
4. D) Define the problem.
Answer: B
27) Creating action plans to address the needs of various stakeholder groups is part of the ________
step of Block's framework for stakeholder management.
1. A) define the problem

2. B) test and refine the solutions
3. C) develop solutions
4. D) identify the goals of the principal actors
Answer: C
28) Cleland's project stakeholder management cycle:
1. A) Requires all stakeholders to be identified and locked in as a first step.

2. B) Is used to identify only internal stakeholders.
3. C) Is used to identify only external stakeholders.
4. D) Is a recurring cycle that allows new stakeholders to be considered at any time.
Answer: D
29) Stakeholder analysis looks at a project's customers and determines whether their needs are being
met.
Answer: FALSE
30) Suppliers and competitors are possible intervenor groups in a project.
Answer: TRUE
31) An important step in stakeholder management is the assessment of your own capabilities.
Answer: TRUE
37) Which of the following is NOT an element of organizational structure?
1. A) Well-articulated mission, vision, and value statements

2. B) Formal reporting relationships
3. C) Grouping together of individuals into departments
4. D) Systems designed to ensure effective communication
Answer: A
38) The assistant to the manager did not report to the assistant manager, only to the manager. This
reporting relationship was clearly delineated in the:
1. A) Company culture.
2. B) Organizational structure.
3. C) Stakeholder analysis.
4. D) Company mission statement.
Answer: B
39) Organizational structure identifies the grouping of individuals into:
1. A) Organizations.
2. B) Companies.
3. C) Silos.
4. D) Departments.
Answer: D
40) Individuals are commonly organized into departments for all of the following reasons EXCEPT:
1. A) Seniority.
2. B) Function.
3. C) Product.
4. D) Geography.
Answer: D
41) Span of control refers to:
1. A) The number of departments involved in a project.

2. B) The number of days that the project manager is allowed to complete the project.
3. C) The number of employees one person supervises.
4. D) The number of levels from top to bottom in an organization.
Answer: C
42) The University of Puhonicks hires several professors that specialize in accounting, management,
and economics and clusters each into one of three departments. The dean has obviously decided to
group employees by:
1. A) Function.
2. B) Geography.
3. C) Project.
4. D) Product.
Answer: D
43) One thing that organizational structure must include is:
1. A) The design of systems for effective communication.

2. B) The standards of performance for all employees.
3. C) The expected outcomes for all projects in the company portfolio.
4. D) The mission and vision statements.
Answer: A
44) Which statement about organization for project management is BEST?
1. A) The overall structure of the organization specifies how project team members should
communicate with the project manager.
2. B) The internal project team structure specifies the arrangement of all units or interest groups
participating in the development of the project.
3. C) Two distinct organizational structures operate simultaneously within the project management
context: the organizational structure and the project team structure.
4. D) All of these statements are correct.
Answer: B
45) Probably the most common type of organizational structure today is:
1. A) Project.
2. B) Functional.
3. C) Matrix.
4. D) Organic.
Answer: B
46) Companies that are structured by grouping people performing similar activities into departments
are:
1. A) Project organizations.
2. B) Functional organizations.
3. C) Matrix organizations.
4. D) Departmental organizations.
Answer: B
47) A major player in the software industry stumbles from one new edition of its operating system
and office automation package to another. As soon as one package is released, the programmers and
developers have two weeks to latch onto a different team that is updating a different package. Failure
to find another team to work for means an end to their employment. This organizational structure is
BEST classified as a:
1. A) Functional organization.
2. B) Matrix organization
3. C) Project organization.
4. D) Flexible organization.
Answer: C
48) John Drone toils endlessly at Hurts Corporation on his routine assignment and also on a number
of project teams. His annual evaluation features input from his line manager and each of the project
managers, all of whom have equal say in how his 12-hour work day is partitioned. John Drone is
employed by a:
1. A) Functional organization.
2. B) Project organization.
3. C) Cross-functional organization.
4. D) Matrix organization.
Answer: D
49) A functional organization structure is a weakness for project management because:
1. A) In-depth knowledge and intellectual capital development are enabled.

2. B) No disruption or changes to a firm's design are necessitated by projects developed within this
structure.
3. C) Priorities among functional departments may be different and competing.
4. D) Standard career paths are enabled so team members only perform their duties as needed.
Answer: C
50) The tendency of employees in a functionally organized company to become fixated on their own
concerns and work assignments to the exclusion of the needs of other departments is known as:
1. A) Layering.
2. B) Myopia.
3. C) Nepotism.
4. D) Siloing.
Answer: D
51) The functional structure is well-suited when:
1. A) There are low levels of external uncertainty.

2. B) There is high instability in the environment.
3. C) Project coordination is assigned to the lowest levels in an organization.
4. D) There must be rapid response to external opportunities and threats.
Answer: A
52) In general, the poorest organizational structure when it comes to managing projects is probably
the:
1. A) Matrix structure.
2. B) Functional structure.
3. C) Project structure.
4. D) Process structure.
Answer: B
53) All major decisions and authority are under the control of the project manager in a:
1. A) Matrix structure.
2. B) Functional structure.
3. C) Project structure.
4. D) Process structure.
Answer: C
54) A project structure for an organization is a peach when you consider how well it:
1. A) Creates legions of project management experts.

2. B) Maintains a pooled supply of intellectual capital.
3. C) Assuages the fear of unemployment by project team members once the project has ended.
4. D) Fosters loyalty to the overall organization by project team members.
Answer: A
55) Staffing fluctuations associated with project completion and initiation are most likely to occur in
organizations that are:
1. A) Functionally structured.
2. B) Project structured.
3. C) Matrix structured.
4. D) Process structured.
Answer: B
56) A dual hierarchy is the salient feature of a:
1. A) Project structure.
2. B) Matrix structure.
3. C) Functional structure.
4. D) Bi-modal structure.
Answer: B
57) The project manager controls most of the project activities and functions, including the
assignment and control of project resources in the:
1. A) Strong matrix.
2. B) Weak matrix.
3. C) Dual matrix.
4. D) Primal matrix.
Answer: A
58) The manager of the Super Burrito Project is in the midst of an important project team meeting but
Fred Fromage, the representative from the Cheese department, is nowhere to be found. After a brief
investigation it is determined that Fred's manager in the Cheese department has other plans for Fred's
time and efforts over the next several days and he simply won't be available for Super Burrito Project
work. The organizational structure being used here is unquestionably a:
1. A) Strong matrix.
2. B) Weak matrix.
3. C) Project organization.
4. D) Chevre organization.
Answer: B
59) A major weakness of a matrix organizational structure for project management occurs when:
1. A) The environment is dynamic.

2. B) Resources are scarce and shared between functional responsibilities and the competing
project.
3. C) The number of human resource coordination meetings is considered.
4. D) One considers the dual importance of project management and functional efficiency.
Answer: C
60) A matrix organization for project management has a distinct advantage because:
1. A) Dual hierarchies mean two bosses.

2. B) A significant amount of time is spent negotiating the sharing of critical resources.
3. C) Workers must reconcile competing project and functional demands.
4. D) Project importance is enhanced by setting authority equal to that of functional departments.
Answer: D
61) Policies and procedures are examples of an organization's external environment.
Answer: FALSE
62) A project organization does not have functional departments.
Answer: FALSE
67) The belief that organizations can sometimes gain tremendous benefit from creating a fully
dedicated project organization is captured by the term:
1. A) Heavyweight project organization.

2. B) Matrix organization.
3. C) Benevolent society.
4. D) Leveraged benefits.
Answer: A
68) The Larson and Gobeli study that compared projects that had been managed in a variety of
structural types revealed that new product development projects tended to be most effectively
executed when the organizational structure was a:
1. A) Project matrix.
3. C) Balanced matrix.
4. D) Functional matrix.
Answer: B
structural types revealed that construction projects tended to be most effectively executed when the
organizational structure was a:
1. A) Project organization.
2. B) Balanced matrix.
3. C) Project matrix.
4. D) Functional matrix.
Answer: C
structural types revealed that both new product development and construction projects tended to be
least effectively executed when the organizational structure was a:
1. A) Project matrix.
3. C) Balanced matrix.
4. D) Functional organization.
Answer: D
71) A project management office is designed to oversee or improve the management of projects
without stripping responsibility from the project manager.
Answer: TRUE
72) The weather station model of the project management office (PMO) uses the PMO as only a
tracking and monitoring device.
Answer: TRUE
73) The resource pool model of the project management office (PMO) provides skilled labour to an
organization's projects.
Answer: TRUE
74) The resource pool model of the project management office (PMO) works best when the PMO is
generally viewed as a Level 1 support structure.
Answer: FALSE
76) Centralized units within an organization or department that oversee or improve the management
of projects are called:
1. A) Project management offices.

2. B) PERT units.
3. C) Tiger teams.
4. D) Central clearinghouses.
Answer: A
77) A PMO is NOT used:
1. A) As a resource center.
2. B) To act as a central repository for project documentation.
3. C) To replace the project manager as being responsible for the project.
4. D) As the place where project management improvements are identified and then disseminated to
the rest of the organization.
Answer: C
78) A typical PMO could supply a company's project manager with assistance in:
1. A) Composing a project culture document.
2. B) Establishing organizational structure.
3. C) Crafting a mission statement.
4. D) Resource allocation.
Answer: D
79) A typical PMO could supply a company's project manager with assistance in:
1. A) Activity scheduling.
2. B) Establishing organizational structure.
3. C) Crafting a mission statement.
4. D) Day-to-day process improvement.
Answer: A
80) The PMO is used as a tracking and monitoring device under the:
1. A) Control tower model.

2. B) Resource pool model.
3. C) Weather station model.
4. D) Radar model.
Answer: C
81) The PMO is used to protect and support the skill of project management under the:
1. A) Resource pool model.

2. B) Weather station model.
3. C) Control tower model.
4. D) Project model.
82) The PMO is used to maintain and provide a cadre of skilled and trained project professionals as
needed under the:
1. A) Control tower model.

2. B) Cadre model.
3. C) Weather station model.
4. D) Resource pool model.
Answer: D
83) The weather station model performs the invaluable function of:
1. A) Keeping an eye on project status without influencing the project.

2. B) Establishing standards for managing projects.
3. C) Enforcing the adherence to accepted protocols for project management.
4. D) Improving the current state of project management procedures.
Answer: A
84) The greatest advantage of a PMO is that:
1. A) It is essentially another layer of oversight within the organization.

2. B) It helps an organization develop project management skills.
3. C) It serves as a bottleneck for communication across the organization.
4. D) All project management skills are located at one point in an organization.
Answer: B
Chapter 3 Project Selection and Portfolio Management
1) Souder's project screening criterion that indicates an effective model must reflect organization
objectives, including a firm's strategic goals and mission is called:
1. A) Realism.
2. B) Capability.
3. C) Comparability.
4. D) Ease of use.
Answer: A
2) Souder's project screening criterion of realism addresses the question:
1. A) How many workers will the project need?

2. B) Will the project work as intended?
3. C) Who are the stakeholders?
4. D) How often should the project team meet?
Answer: B
3) A selection model that is broad enough to be applied to multiple projects has the benefit of:
1. A) Ease of use.
2. B) Comparability.
3. C) Capability.
4. D) Flexibility.
Answer: B
4) A project screening criterion that allows the company to compare long-term versus short-term
projects, projects with different technologies, and projects with different commercial objectives is:
1. A) Flexibility.
2. B) Ease of use.
3. C) Capability.
4. D) Realistic.
Answer: C
5) If a model can be applied successfully by people in all areas and levels of an organization, it is said
to possess the trait of:
1. A) Capability.
2. B) Ease of use.
3. C) Flexibility.
4. D) Realism.
Answer: B
6) An MBA redesign committee plans to spend a decade traveling the world to benchmark graduate
programs at other universities. Regardless of the screening model being used, it will suffer from poor
performance in the area of:
1. A) flexibility.
2. B) Capability.
3. C) Comparability.
4. D) Cost.
Answer: D
7) Souder's model selection criterion that encourages ease of adaptation to changes in tax laws,
building codes, among others, is called:
1. A) Ease of use.
2. B) Cost.
3. C) Capability.
4. D) Flexibility.
Answer: D
8) A writer estimates it will take three months to generate spiffy documents to accompany a seminal
work in operations management. He grossly underestimates the time required and misses his deadline
by two months. This estimate was:
1. A) Objective and accurate.

2. B) Subjective and accurate.
3. C) Objective and inaccurate.
4. D) Subjective and inaccurate.
Answer: D
9) A wedding planner allows $10,000 for flowers and three weeks to receive all RSVPs back from the
list of 700 guests. Both estimates are correct within a fraction of a percent. We could describe this
factoid as:
1. A) Numeric and subjective.

2. B) Numeric and objective.
3. C) Non-numeric and subjective.
4. D) Non-numeric and objective.
Answer: A
10) An internal operating issue in project screening and selection is:
1. A) Expected return on investment.

2. B) Change in physical environment.
3. C) Patent protection.
4. D) The chance that the firm's goodwill will suffer due to the quality of the finished project.
Answer: B
11) Quality risk refers to the chance that:
1. A) The project relies on developing new or untested technologies.

2. B) The firm's reputation may suffer when the product becomes available.
3. C) The well-being of the users or developers may decline dramatically.
4. D) The firm may face a lawsuit.
Answer: B
12) One facet of risk in project screening is:
1. A) The change in manufacturing operations resulting from the project.

2. B) The initial cash outlay.
3. C) The potential for lawsuits or legal obligation.
4. D) The strategic fit of the project with the company.
Answer: C
13) One project factor that directly impacts a firm's internal operations is the:
1. A) Expected return on investment.

2. B) Financial risk.
3. C) Need to develop employees.
4. D) Impact on company's image.
Answer: C
14) A commercial factor in project selection and screening might be:
1. A) A need to develop employees.

2. B) The likelihood that users of the project are injured.
3. C) The long-term market dominance.
4. D) The impact on the company's image.
Answer: C
15) Which statement regarding project selection is BEST?
1. A) Organizational reality can be perfectly captured by most decision-making models.

2. B) Before selecting any project, the team should identify all the relevant issues that play a role
in project selection.
3. C) Decision models must contain either objective or subjective factors.
4. D) Every decision model has both objective and subjective factors.
Answer: D
16) Which statement regarding project selection and screening criteria is BEST?
1. A) The most complete model in the world is still only a partial reflection of organization
reality.
2. B) It is possible, given enough time and effort, to identify all relevant issues that play a role in
project selection.
3. C) Decision models are either objective or subjective.
4. D) For many projects, more than 80% of the decision criteria are vital.
Answer: A
17) An effective project selection model must reflect organizational objectives, including a firm's
strategic goals and mission.
Answer: TRUE
18) An expert's opinion on an issue may be subjective but very accurate.
Answer: TRUE
19) Numeric project selection models, by their very nature, employ objective values.
Answer: FALSE
20) Every decision model contains both objective and subjective factors.
Answer: TRUE
24) A checklist-screening model does NOT consider:
1. A) Whether one criterion is more important than another.

2. B) Governmental or stakeholder interference.
3. C) Product durability and future market potential of the product line.
4. D) The riskiness of the new venture.
Answer: A
25) A simple scoring model for project evaluation requires:
1. A) Importance weights from 1 to 10 assigned to each criterion.

2. B) Score values assigned to each criterion in terms of its rating.
3. C) A division of weights by scores to arrive at a standardized score for each criterion.
4. D) A summation for each criterion to achieve an overall criterion score.
Answer: B
26) The simple scoring model has this advantage over a checklist model for screening projects.
1. A) Scaling from 1 to 5 is extremely accurate.

2. B) Scaling models ensure a reasonable link between the selected and weighted criteria and the
business objectives that motivated their selection.
3. C) Scaling models allow decision makers to treat one criterion as more important than
another.
4. D) Scaling models have been proven to make correct decisions better than 95% of the time
while checklists only achieve 80% accuracy.
Answer: C
29) A simple scoring model is used to decide among three projects that we will call A, B, and C. The
total score for project A is 30, for project B is 20, and for project, C is 10. Which of the following
statements is BEST?
1. A) If project A is successfully completed, it will yield three times the benefits that project C
would have provided.
2. B) If project C is chosen, the company would benefit only half as much as if they had chosen
project B.
3. C) Project C is better than project B for this company at this point in time.
4. D) Project A is better than project B for this company at this point in time.
Answer: D
30) The pairwise comparison approach:
1. A) Is a method to split the weights assigned to sub criteria.

2. B) Is a method to compare pairs of hierarchies prior to any further analysis.
3. C) Is a means of achieving all project objectives within the allocated time frame.
4. D) May be used instead of AHP if time is limited.
Answer: A
38) The first step in the Analytical Hierarchy Process:
1. A) Requires supporting requirements to be combined into Level II challenges.

2. B) Is analysing the process you intend to improve before undertaking any improvement
project.
3. C) Requires Ratification of the team members.
4. D) Consists of constructing a hierarchy of criteria and sub-criteria.
Answer: D
39) Which statement about the Analytical Hierarchy Process is FALSE?
1. A) AHP scores are significant.

2. B) AHP can be used to capture choice options that do not yield positive outcomes.
3. C) AHP can improve the process of developing project proposals.
4. D) AHP groups sub-criteria that share the weight of a common higher-level criterion.
Answer: B
40) The Analytic Hierarchy Process is being employed in a project selection decision. One major
criteria, cost, receives a weighting value of 40%, which is split into short term (50%), intermediate
term (30%), and long term (20%). Which of these statements is BEST?
1. A) Short term, intermediate term, and long term must receive overall weightings that total
100%.
2. B) There must be at least one other major criteria that has 40% weighting.
3. C) Intermediate-term cost receives a weighting of 12%.
4. D) Long-term cost receives an overall weighting of 80%.
Answer: C
41) The Analytical Hierarchy Process is used to decide among three projects that we'll call A, B, and
C. The total score for project A is .650, for project B is .514, and for project, C is .321. Which of the
following statements is BEST?
1. A) Project A is twice as good as project C.

2. B) The analysis must be incorrect because the total scores should sum to 1.00.
3. C) The analysis must be incorrect because there are two total scores that exceed 0.50.
4. D) The analysis must be incorrect because project C's total score is odd.
Answer: A
42) The profile model plots a graph on a(n):
1. A) Perception-reality pair of axes.
2. B) Risk-return pair of axes.
3. C) Efficiency-effectiveness pair of axes.
4. D) Saxon-Norman pair of axes.
Answer: B
45) The efficient frontier in project management is the set of portfolio options that offer:
1. A) A minimum return for a minimum risk.

2. B) A minimum return for a maximum risk.
3. C) A maximum return for a minimum risk.
4. D) A maximum return for a maximum risk.
Answer: C
46) Which statement about the use of the profile model is BEST?
1. A) The profile model requires careful calculation of the percentage risk for each possible
project.
2. B) The scale used for the profile model can be any two numerical variables that a company
deems important.
3. C) The efficient frontier in the profile model is where return is 100% (or greater) and risk is
0%.
4. D) For a given level of risk, a positive move on the return axes would indicate a superior
project.
Answer: D
47) Between projects A and B, project A will be considered a superior financial undertaking if it has:
1. A) A shorter payback period than project B.

2. B) A lower average rate of return than project B.
3. C) A lower net present value than project B.
4. D) A longer payback period than project B.
Answer: A
48) The efficient frontier in a profile model is the set of options that offers a maximum return for a
given level of risk or a minimum risk for every level of return.
Answer: TRUE
49) The present value of money is lower the further out in the future I expect to spend it.
Answer: FALSE
50) The reciprocal of the payback period is used to calculate the average rate of return for a project.
Answer: TRUE
51) Internal rate of return is preferable to net present value because IRR employs a weighted average
cost of capital discount rate that reflects potential reinvestment.
Answer: FALSE
53) Net present value is being used to break the tie among four otherwise equal projects. If the interest
rate is 4%, which of these anticipated four-year flows would yield the greatest net present value?
1. A) $10,000 in year 1; $11,000 in year 2; $12,000 in year 3; and $13,000 in year 4

2. B) $13,000 in year 1; $12,000 in year 2; $11,000 in year 3; and $10,000 in year 4
3. C) $10,000 in year 1; $10,000 in year 2; $13,000 in year 3; and $13,000 in year 4
4. D) $11,000 in year 1; $11,000 in year 2; $12,000 in year 3; and $12,000 in year 4
Answer: B
54) A company facing an interest rate of 8% must choose among projects offering the following four-
year cash flows. If the company is employing the net present value criterion, which project should
they choose?
1. A) $25,000 in year 1; $15,000 in year 2; $10,000 in year 3; and $5,000 in year 4

2. B) $5,000 in year 1; $5,000 in year 2; $20,000 in year 3; and $30,000 in year 4
3. C) $15,000 in year 1; $15,000 in year 2; $15,000 in year 3; and $15,000 in year 4
4. D) $5,000 in year 1; $5,000 in year 2; $25,000 in year 3; and $25,000 in year 4
Answer: C
55) Which of these statements about internal rate of return analysis is BEST?
1. A) If the IRR is less than the company's required rate of return, the project is worth funding.
2. B) Projects having lower IRR are generally superior to those having higher IRR.
3. C) IRR and NPV calculations always make the same investment recommendations.
4. D) If net outflows follow a period of net inflows, IRR may give conflicting results.
Answer: D
56) Which of these statements about valuation models is NOT correct?
1. A) NPV employs a weighted average cost of capital discount rate that reflects potential
reinvestment.
2. B) IRR and NPV calculations typically make the same investment recommendations only
when the projects are independent of each other.
3. C) If cash flows are not normal, IRR may arrive at multiple solutions.
4. D) IRR is a more robust determinant of project viability than NPV.
Answer: D
59) A project manager is using the net present value method to make the final decision on which
project to undertake. The company has a 12% required rate of return and expects a 3% rate of
inflation for the following four years. What is the NPV of a project that has cash flows as shown in
the table?

Year Cash Flow
0 -$250,000
1 $50,000
2 $60,000
3 $70,000
4 $80,000
1. A) -$9,762
2. B) -$56,859
3. C) -$69,387
4. D) -$98,780
Answer: C
60) A project manager is using the payback method to make the final decision on which project to
undertake. The company has a 10% required rate of return and expects a 4% rate of inflation for the
following four years. What is the non-discounted payback of a project that has cash flows as shown in
the table?

Year Cash Flow
0 -$250,000
1 $50,000
2 $60,000
3 $70,000
4 $80,000
3. A) 3.875 years
4. B) 3.625 years
5. C) 3.750 years
6. D) 3.500 years
Answer: A
following five years. What is the discounted payback of a project that has cash flows as shown in the
table?

Year Cash Flow
0 -$100,000
1 $20,000
2 $50,000
3 $50,000
4 $25,000
5 $500,000
3. A) 3.4 years
4. B) 2.6 years
5. C) 5.0 years
6. D) 4.2 years
Answer: C
62) A project manager is using the net present value method to make the final decision on which
project to undertake. The company has a 15% required rate of return and expects a 5% rate of
inflation for the following four years. What is the NPV of a project that has cash flows as shown in
the table?

Year Cash Flow
0 -$350,000
1 $50,000
2 $80,000
3 $100,000
4 $150,000
4. A) $4.955
5. B) $42,586
6. C) -$23,667
7. D) -$122,569
Answer: D
following five years. What is the non-discounted payback of a project that has cash flows as shown in
the table?

Year Cash Flow
0 -$500,000
1 $50,000
2 $75,000
3 $150,000
4 $150,000
5 $750,000
3. A) 3.7 years
4. B) 4.1 years
5. C) 5.0 years
6. D) 4.8 years
Answer: B
following five years. What is the discounted payback of a project that has cash flows as shown in the
table?

Yea Cash Flow
0 $500,000
1 $50,000
2 $75,000
3 $150,000
4 $150,000
5 $750,000
3. A) 3.9 years
4. B) 4.3 years
5. C) 4.6 years
6. D) 4.1 years
Answer: B
65) Options models are used to assist in project selection decisions:
1. A) When IRR calculations are favorable but NPV calculations are unfavorable.
2. B) When a company may not recover the money it invests in a project.
3. C) When NPV calculations are favorable but IRR calculations are unfavorable.
4. D) When a company is guaranteed to recover the money it invests in a project.
Answer: B
66) Regardless of which selection method a firm uses, it should always:
1. A) Be able to predict how much revenue will be returned to the firm each year.
2. B) Know which project will ultimately succeed and which ones will fail.
3. C) Be objective in their selection method.
4. D) Use a weighted scoring technique.
Answer: C
67) An options model could be used when financial criteria would change significantly over time.
Answer: TRUE
68) The most important thing to remember when using project selection models is to be consistent and
objective.
Answer: TRUE
72) Inatech is contemplating two different projects and decides to perform a financial analysis to
determine which is more financially lucrative. Project A and B have the cash flows as shown and
Inatech uses a required rate of return of 10% and an inflation rate of 4%. Compute the payback in
years and the net present value for both projects and offer advice as to the best course of action.
Year A B
0 -$250,000 -$400,000
1 $75,000 $125,000
2 $155,000 $230,000
3 $200,000 $288,000
4 $175,000 $265,000
5 $160,000 $225,000
Answer:
Year A Cumulative A Discount NPV A B Cumulative B NPV B
0 -$250,000 -$250,000 1.000 -$250,000 -$400,000 -$400,000 -$400,000
1 $75,000 -$175,000 0.877 $65,789 $125,000 -$275,000 $109,649
2 $155,000 -$20,000 0.769 $119,267 $230,000 -$45,000 $176,978
3 $200,000 $180,000 0.675 $134,994 $288,000 $243,000 $194,392
4 $175,000 $355,000 0.592 $103,614 $265,000 $508,000 $156,901
5 $160,000 $515,000 0.519 $83,099 $225,000 $733,000 $116,858

The NPV for project A is $256,764 and the NPV for project B is higher at $354,778. Project A has a
longer discounted payback, 3.3 years, compared to project B's payback of 3.2 years. The best course
of action based solely on financial considerations is to opt for project B if only one can be
implemented.

73) Inatech is contemplating two different projects and decides to perform a financial analysis to
determine which is more financially lucrative. Project A and B have the cash flows as shown and
Inatech uses a required rate of return of 8%. Compute the internal rate of return for both projects to
determine which is worth of funding.

Year A B
0 -$500,000 -$400,000
1 $260,000 $200,000
2 $170,000 $100,000
3 $125,000 $100,000
4 $75,000 $50,000
5 $25,000 $25,000
Answer: Project A has an IRR of 1.85%. The net present value table based on this percentage is as
follows:

Year A Discount NPV
0 -$500,000 1 -$500,000
1 $260,000 0.893 $232,143
2 $170,000 0.797 $135,523
3 $125,000 0.712 $89,973
4 $75,000 0.636 $47,664
5 $25,000 0.567 $14,186

Project B has an IRR of 1.91%. The net present value table based on this percentage is:

Year B Discount NPV
0 -$400,000 1 -$400,000
1 $200,000 0.893 $178,571
2 $100,000 0.797 $119,579
3 $100,000 0.712 $71,178
4 $50,000 0.636 $31,776
5 $25,000 0.567 $14,186

Both projects fall short of the hurdle rate of 8%, so Inatech should avoid both. The NPV for project A
is $18,488 and for project B is $15,290.
76) The systematic process of selecting, supporting, and managing a firm's collection of projects is
called:
1. A) Heavyweight project management.

2. B) Matrix project organization.
3. C) Profile management.
4. D) Project portfolio management.
77) The concept of project portfolio management holds that firms should:
1. A) Regard all projects as unified assets.

2. B) Manage projects as independent entities.
3. C) Focus on short-term strategic goals.
4. D) Focus on long-term constraints.
Answer: A
78) A project with the chance for a big payout may be funded if an important criterion is:
1. A) Cost.
2. B) Opportunity.
3. C) Top management pressure.
4. D) Risk.
Answer: B
79) A project that is exceptionally risky might still be undertaken by a firm if they have several other
projects underway that are considered more of a sure thing. This approach to project selection is
BEST described by the criterion called:
1. A) Strategic "fit."
2. B) Risk.
3. C) Desire for portfolio balance.
4. D) Top management pressure.
Answer: C
80) Evaluating projects in terms of their strategic fit with existing project lines or their ability to
augment the current product family is known as:
1. A) Balance.
2. B) An open criterion.
3. C) Weighted criterion.
4. D) Complementarity.
Answer: D
81) Realignment describes:
1. A) The change in a project portfolio with an addition of a new project.

2. B) The shifting of project resources from one to another.
3. C) The change in strategy for a firm.
4. D) The annual recasting of all project managers.
Answer: A
82) A proactive project portfolio:
1. A) Is as simple as moving from one project opportunity to another project opportunity.

2. B) Is an integrated family of projects with a common strategic goal.
3. C) Is a collection of projects under the umbrella of single project manager carrying the title of
portfolio manager.
4. D) Is developed with respect to short-term operational concerns.
Answer: B
83) If an organization that currently is managing a vast and well-balanced portfolio of projects decides
on a new strategic direction, it will initially face the problem of:
1. A) Scarce resources.
2. B) A conservative technical community.
3. C) Out-of-sync projects and portfolios.
4. D) Unpromising projects.
Answer: C
84) A principal cause of portfolio underperformance is:
1. A) Conservative technical communities.

2. B) Government intervention.
3. C) Out-of-sync projects.
4. D) Scarce resources.
Answer: D
85) Project portfolio management is typically NOT used to balance:
1. A) Human and technical resources.

2. B) Risk and return.
3. C) Efficiently run projects and nonperformers.
4. D) Various families of projects.
Answer: A
86) Because projects managed under a project portfolio management scheme may be independent of
each other, it is not necessary to consider resource use when deciding to pursue any single project.
Answer: FALSE
87) A balanced project portfolio may be interpreted to mean that a single portfolio contains both high
and low risk, low growth and high growth, and risky and safe projects.
Answer: FALSE
88) Successful project management firms rely on home runs and narrowly concentrated efforts since
specialization creates name recognition and market share.
Answer: FALSE
89) Personnel costs comprise one of the highest sources of project expense.
Answer: TRUE
90) If strategy and portfolio are not in sync, the firm is poised on the cusp of success.
Answer: FALSE
94) Which of these is NOT a factor in successful project portfolio management?
1. A) Flexible structure and freedom of communication
2. B) Low-cost environmental setting
3. C) Emphasis on quality
4. D) Time-paced transition
Answer: C
95) Multiple project environments thrive on:
1. A) Multi-layered bureaucracy.
2. B) Rigid development processes.
3. C) Narrow communication channels.
4. D) Improvisation by project teams.
Answer: D
96) A firm is BEST served if its project portfolio:
1. A) Has a number of low-cost experimental prototypes.

2. B) Devotes significant resources to hit product "home runs."
3. C) Aims to take the marketplace by storm regardless of future trends.
4. D) Represents narrowly concentrated efforts.
Answer: A
97) Successful firms use project portfolio planning routinely to:
1. A) Make quantum jumps from one product to another.

2. B) Develop products with long lead times and plan ahead.
3. C) Move as quickly as possible into new territory.
4. D) Move at glacial pace always within the same product line.
Answer: B
Chapter 4 Leadership and the Project Manager

1) For the project manager, leadership is:
1. A) The process by which she influences the project team.

2. B) The process of assembling a group of individuals.
3. C) The process of building skills among all team members.
4. D) The process of maintaining control of the budget.
Answer: A
2) The idea that all members of a project team have the ability to offer a contrary position in order to
achieve true partnership between the project manager and the team is called:
1. A) Exchange of purpose.
2. B) A right to say no.
3. C) Joint accountability.
4. D) Absolute honesty.
Answer: B
3) In a partnership, each member of the project team is responsible for the project's outcomes and the
current situation, whether it is positive or shows evidence of project problems. The term that BEST
describes this responsibility is:
Answer: C
4) The authentic atmosphere of straightforwardness that is vital for project manager and team to
function in can be described as:
Answer: D
6) The facet of partnership that describes the requirement that every worker be responsible for
defining the project's vision and goals is called:
Answer: A
7) Which statement regarding the duties of leaders and managers is BEST?
1. A) Leaders embrace the status quo while managers support change.

2. B) A manager's title is bestowed by the organization.
3. C) Leaders aim for efficiency.
4. D) Managers aim for effectiveness.
Answer: B
8) Which statement regarding the duties of leaders and managers is BEST?
1. A) Leaders embrace change while managers support the status quo.

2. B) Management is more about interpersonal relationships than leadership is.
3. C) Leaders aim for efficiency.
4. D) Managers aim for effectiveness.
Answer: A
9) Which of these lists of duties is more reflective of managerial tasks?
1. A) Creating vision and strategies

2. B) Problem solving
3. C) Long-term risk taking
4. D) Communication by word and deed
Answer: B
10) Which of these duties is more reflective of a leader's tasks?
1. A) Efficiency of operations
2. B) Delegation and maintaining
3. C) Motivation and inspiration
4. D) Marshalling resources
Answer: C
11) Which of these is more characteristic of a manager?
1. A) Develop new processes

2. B) Originate
3. C) State their position
4. D) Focus on people
Answer: C
12) Which of these is more characteristic of a leader?
1. A) Strive for control

2. B) Do things right
3. C) Demand respect
4. D) Inspire trust
Answer: D
13) A more apt title for a project manager is:
1. A) Controller.
2. B) Comptroller.
3. C) Project director.
4. D) Project leader.
Answer: D
14) Projects are often underfunded in the concept stage because:
1. A) The project requirements were deliberately understated.

2. B) There is complete trust in project managers by top management so more resources can be
asked for at any time.
3. C) The project's goals are too clearly defined.
4. D) The project's top management sponsor is too influential.
Answer: A
15) A common tactic project managers use when they realize their project is underfunded is to rely
on:
1. A) Intimidation.
2. B) Political tactics.
3. C) Asking for forgiveness rather than permission.
4. D) The kindness of strangers.
Answer: B
16) Project team motivation comes primarily from:
1. A) The project manager.

2. B) The project champion.
3. C) Within each team member.
4. D) The project client's acceptance.
Answer: C
17) It is most important that a project manager:
1. A) Focuses on meeting daily challenges head on.

2. B) Focuses on meetings.
3. C) Remembers the overall picture, or goals, that define the project.
4. D) Operates on the boundary between strategy and tactics.
Answer: D
18) The project management pearl of wisdom that declares, "If they know nothing of what you are
doing, they assume you are doing nothing," means that:
1. A) Stakeholders must be communicated with on a continual basis throughout the project's

development.
2. B) The duration of most projects is sufficiently long as to contain many days when no actual
progress is being made.
3. C) The more complex a project is, the more likely that the client who will ultimately receive the
project has no idea how it is being executed.
4. D) A project manager that holds lengthy progress meetings with his team will generally complete
projects more successfully.
Answer: A
19) Task-oriented leadership behavior is characterized by:
1. A) Showing trust in project team members.

2. B) Acting friendly and supportive towards project team members.
3. C) Contributing to the completion of project assignments.
4. D) Recognizing the accomplishments of team members.
Answer: C
20) Which of these behaviors is task-oriented?
1. A) Every Friday is ice-cream day at the job site; everyone gets a double dip of their favorite
flavor.
2. B) The employee of the month plaque is updated monthly and placed in a prominent position
near the checkout stand.
3. C) The dean reached into his pocket, extracted his money clip and peeled off $3,000, saying,
"Why don't you pick out some window treatments for the office? Something nice."
4. D) When my computer broke, the project manager had it replaced immediately.
Answer: D
21) Group maintenance behavior would be exhibited by a project manager who:
1. A) Provides the necessary support and technical assistance.

2. B) Plans and schedules activities and resources appropriately.
3. C) Contributes to the completion of project assignments.
4. D) Works with subordinates to understand their problems.
Answer: D
22) The group maintenance behavior of gatekeeping helps to:
1. A) Increase and equalize participation.

2. B) Reduce tension and hostility.
3. C) Regulate behavior.
4. D) Increase comprehension.
Answer: A
23) The task-oriented behavior of summarizing accomplishes which specific outcome?
1. A) Check on understanding and assess progress.

2. B) Guide and sequence discussion.
3. C) Check on agreement.
4. D) Increase comprehension.
Answer: A
24) Which of these behaviors is indicative of group maintenance?
1. A) Stimulating communication
2. B) Clarifying communication
3. C) Process analyzing
4. D) Process structuring
Answer: C
25) Based on a study of successful American project managers as perceived by project team members,
the most important characteristic of a project manager is:
1. A) Visionary.
2. B) Good communicator.
3. C) Good motivator.
4. D) Leadership by example.
Answer: D
26) Project management is first and foremost:
1. A) A people management challenge.

2. B) A customer service challenge.
3. C) A perception management challenge.
4. D) A budget management challenge.
Answer: A
27) Leadership may be part of a manager's job but other managerial roles are not necessarily part of a
leader's job.
Answer: TRUE
28) Leadership is an innate characteristic that some people have and some don't.
Answer: FALSE
29) One way to distinguish the two roles is to realize that leaders aim for efficiency while managers
aim for effectiveness.
Answer: FALSE
30) One reason projects are initially underfunded is because their requirements are sometimes
deliberately understated.
Answer: TRUE
31) Summarizing and consensus testing are two group maintenance behaviors that a project manager
uses to show support for project team members.
Answer: FALSE
32) The number one flaw that makes a project manager a poor leader is setting a bad example.
Answer: TRUE
33) The organizational factor that is most vital in preventing a project manager from being recognized
as a leader is lack of resources.
Answer: FALSE
43) Which of these is the more meaningful measure of leadership effectiveness?
1. A) Subject matter knowledge

2. B) Emotional intelligence
3. C) Technical skill
4. D) Analytical ability
Answer: B
44) The emotional intelligence element that implies having a deep understanding of one's own
strengths and weaknesses, ego needs, drives, and motives is called:
1. A) Motivation.
2. B) Self-regulation.
3. C) Self-awareness.
4. D) Social skill.
Answer: C
45) Friendliness with a purpose describes:
1. A) Empathy.
2. B) Self-regulation.
3. C) Obsequiousness.
4. D) Social skill.
Answer: D
46) Emotional intelligence is a more important measure of leadership effectiveness than technical
skill, analytical ability, and intelligence.
Answer: TRUE
48) A large sample survey was used to ask a total of 2,615 managers within U.S. corporations what
they considered to be the most important characteristic of effective leaders. The item that ranked #1
was:
1. A) Inspiring.
2. B) Honest.
3. C) Imaginative.
4. D) Dependable.
Answer: B
49) Among the essential abilities for effective project managers identified by a survey of 58 firms on
their project management practices and skills was:
1. A) Obfuscation.
2. B) Humor.
3. C) Speed.
4. D) Experience.
Answer: D
50) Pettersen's study of project managers found that most do not have the capacity to exercise power
that derives from formal positional authority and therefore they must develop:
1. A) Project champions.
2. B) Cadres of trained professionals.
3. C) Effective influencing skills.
4. D) Efficient communications networks.
Answer: C
51) If all the project management studies discussed in the text are synthesized, it quickly becomes
apparent that the key to understanding leadership behavior is to focus on:
1. A) Where in the organizational hierarchy the project leaders are located.

2. B) Where in the organizational hierarchy the project team members are located.
3. C) Who the leaders are.
4. D) What the leaders do.
Answer: D
52) The most important characteristic of a project leader is ability to inspire.
Answer: FALSE
53) In a survey of thousands of managers within U.S. corporations, a significant majority felt that the
most important characteristic of superior leaders is honesty.
Answer: TRUE
54) A project manager must be able to shift temporal orientation from past, to present, to future.
Answer: TRUE
55) Someone with a polychronic preference functions in two different temporal orientations, such as
past and present.
Answer: FALSE
56) Project leader duties include present-oriented and future-oriented tasks, but do not include past-
oriented tasks.
Answer: FALSE
60) A project champion is:
1. A) A project manager that always completes projects within the allotted time frame.
2. B) A sponsor in top management that is keenly interested in the project's success.
3. C) A project manager that always completes projects within the allotted budget.
4. D) A project manager that always completes projects within the allotted time frame and under
budget.
Answer: B
62) A champion that is an engineer, scientist, or similar person who is the driving force behind an idea
is termed a(n):
1. A) Creative originator.
2. B) Entrepreneur.
3. C) Godfather.
4. D) Sponsor.
Answer: A
65) Which of the following is a traditional duty of a project champion?
1. A) Cheerleader
2. B) Visionary
3. C) Politician
4. D) Technical understanding
Answer: D
66) Which of the following is a non-traditional role of a project champion?
1. A) Cheerleader
2. B) Leadership
3. C) Administrative
4. D) Control
Answer: A
67) A project manager puts on his "nontraditional hat" and smoothly works the room, networking
among functional managers and attempting to secure their cooperation with the project. This
nontraditional role is BEST described as that of a(n):
1. A) Ambassador.
2. B) Politician.
3. C) Cheerleader.
4. D) Visionary.
Answer: B
68) There is a significant chance that the project can be executed successfully but if it can't, the
project manager and team may be updating their resumes. This champion can BEST be described as
a(n):
1. A) Administrator.
2. B) Ambassador.
3. C) Risk taker.
4. D) Visionary.
Answer: C
69) A(n) ________ maintains a clear sense of purpose and a firm idea of what is involved in creating
the project.
1. A) politician
2. B) ambassador
3. C) cheerleader
4. D) visionary
Answer: D
70) The administrative duty is BEST described by:
1. A) Managing and controlling the activities of the team.

2. B) Gaining access to the necessary resources to ensure a smooth development process.
3. C) The ability to provide leadership for the project team.
4. D) Handling the important executive side of the project.
Answer: D
71) The traditional project champion duties of coordination and control are on display when the
project champion:
1. A) Manages and runs the activities of the team.

2. B) Handles the important administrative side of the project.
3. C) Maintains a clear sense of purpose and a firm idea of what is involved in creating the project.
4. D) Provides the needed motivation for the team.
Answer: A
72) Which project champion role is least likely to be emphasized in the next project management
article you read?
1. A) Leadership
2. B) Ambassador
3. C) Administrative
4. D) Technical
Answer: B
73) Risk taking can be encouraged in an organization by:
1. A) Seeking out projects that stand little chance of success.

2. B) Avoiding the inclination to punish failure.
3. C) Promotion of workers that are ill-equipped to lead projects.
4. D) Demoting project managers that are too conservative.
Answer: B
74) Champions bring a great deal of energy and emotional commitment to their project ideas, but:
1. A) Most organizations have an oversupply of this.

2. B) Cannot effectively be the manager of a project.
3. C) Often refuse to give up on a project that has completely failed.
4. D) Must spend an equal amount of time and effort discouraging other projects that compete for
the same resources.
Answer: C
75) Classic project champions are often more comfortable:
1. A) Performing traditional project activities.

2. B) Avoiding their projects during the early stages.
3. C) Avoiding their projects through the final stages.
4. D) Performing nontraditional project activities.
Answer: D
76) A project manager may also be the project champion.
Answer: TRUE
77) An entrepreneur type of project champion is the source of the idea and also the main sponsor.
Answer: FALSE
78) Providing the needed motivation for the project team is a nontraditional duty of a project
champion.
Answer: TRUE
79) The majority of a champion's time is spent performing the traditional project management duties
of leadership, administration, obtaining resources, and coordination and control.
Answer: FALSE
83) Recent research in organizational leadership declares that the new project leader should be adept
at:
1. A) Analytics regarding project team performance.

2. B) Recognizing and rewarding talent.
3. C) Managing the progressive discipline process.
4. D) Analytics regarding the project's performance.
Answer: B
84) Recent research in organizational leadership declares that the new project leader generates and
sustains:
1. A) Trust.
2. B) Revolution.
3. C) Innovation.
4. D) Joy.
Answer: A
85) The Bennis article on competencies that determine a project leader's success indicates that it is
crucial to continually remind the team:
1. A) What the deadline is.

2. B) What is important.
3. C) Who their leader is.
4. D) Who the customer is.
Answer: B
86) The new leader and the led are:
1. A) Separate but equal.

2. B) Strange bedfellows.
3. C) Intimate allies.
4. D) Separated by a common language.
Answer: C
87) Which of these behaviors is BEST for managing an intercultural project team?
1. A) Standardize communications based on the preference of the project manager.

2. B) Classify members of the project team in accordance with popular stereotypes.
3. C) Minimalize cultural differences.
4. D) Achieve a detailed understanding of a culture's history.
Answer: D
88) Which of these behaviors is BEST for managing an intercultural project team?
1. A) Learn alternative means of exchanging information.

2. B) Classify members of the project team in accordance with popular stereotypes.
3. C) Foster an atmosphere of inclusivity by ignoring cultural differences.
4. D) Enter the situation with no knowledge of the local culture and customs to avoid any
appearance of bias.
Answer: A
89) The new leader must make a conscious effort to distance himself from the people being led.
Answer: FALSE
90) One of the most important contributions of a project manager is to continually remind the team
what is most important.
Answer: TRUE
92) In the new project management professionalism model:
1. A) Personnel should be in a state of flux with regard to job assignment.

2. B) Process skills will not be important.
3. C) Traditional project champion activities will supplant the currently emphasized nontraditional
skills.
4. D) Project management should be a dedicated career path.
Answer: A
93) Which personality trait is a poor match for project work?
1. A) Introverted
2. B) Outgoing
3. C) Gregarious
4. D) People-oriented
Answer: A
94) A good starting point for matching employees to project work would be:
1. A) Finding out who has the most spare time.

2. B) Conducting basic personality assessment.
3. C) Making sure that every department in the organization has at least one representative on the
project team.
4. D) Observing what clusters of employees develop during informal situations.
Answer: B
95) One practical step that should be taken in order for an organization to begin developing a core of
project management professionals is to:
1. A) Fire the unprofessional project managers.

2. B) Hire professional project managers.
3. C) Formalize the organization's commitment with training programs.
4. D) Review instances where projects were poorly managed.
Answer: C
96) A reward system for project management should be:
1. A) Greater than rewards for process management.

2. B) Based on the money saved managing the project.
3. C) Based on the money generated by the project.
4. D) Differentiated from normal functional rewards.
Answer: D
97) A recent development in many companies is to:
1. A) Reassign functional managers to functions outside their area of expertise in order to build
well-rounded employees.
2. B) Reassign project managers back to functional duties as soon as a project ends; then assign
them to the next project within their functional area.
3. C) Keep skilled project managers in project work; when one project ends they are immediately
assigned to another project.
4. D) Hire talent from outside the organization, effectively outsourcing project management talent
to professional project management organizations.
Answer: C
98) One way an organization can develop a core of project management professionals is to administer
personality tests and match people attuned to project work to projects.
Answer: FALSE
99) Outgoing, people-oriented individuals have a better likelihood of performing well on project work
than quieter, more introverted people.
Answer: TRUE
Chapter 5 Scope Management

1) Which statement about scope management is BEST?
1. A) Scope management must take place during the conceptual development, full definition,
execution, and termination phases.
2. B) Project goals don't matter in scope management as long as the budget is not exceeded.
3. C) Scope management is accomplished in a single step by any one project team member.
4. D) Scope management can begin once a project hits operational level.
Answer: A
2) The Scope Management chapter begins and ends with the quote, "It's a dream until you write it
down. Then it's:
1. A) Etched in stone."
2. B) A scope statement."
3. C) A documented dream."
4. D) A goal."
Answer: D
3) Which of these is NOT an element of project scope management?
1. A) Project champion
2. B) Scope statement
3. C) Project closeout
4. D) Control systems
Answer: A
4) Scope management for a project begins with:
1. A) A work package.
2. B) An organization breakdown structure.
3. C) A statement of goals.
4. D) A configuration statement.
Answer: C
5) Restrictions that affect project development are:
1. A) Problems.
2. B) Constraints.
3. C) Stop-limits.
4. D) Limitations.
Answer: B
6) The cat-skinning project management team considers the many ways to accomplish their objective
before settling on one technique as part of their:
1. A) Information gathering step.

2. B) Need statement step.
3. C) Project objectives step.
4. D) Alternative analysis step.
Answer: D
8) Conceptual development for a project concludes with:
1. A) Project objectives.
2. B) Alternative analysis.
3. C) Project delivery.
4. D) Team dissolution.
Answer: A
9) One consequence of conceptual development that proceeds with a problem that is poorly
understood is:
1. A) Problem restatement.
2. B) Cost overruns.
3. C) Problem clarification.
4. D) Task confusion.
Answer: B
10) Which statement about conceptual development is BEST?
1. A) A project goal of "significantly increase computer performance" is better than "improve

processing speed 20%" because the team may exceed 20%.
2. B) It is vital that a best approach to solving a problem be locked in as soon as possible to save
analysis time downstream.
3. C) Conceptual development begins with the process of reducing the project's overall complexity
to a more basic level.
4. D) Project goals should be optimistic to the point of excess.
Answer: C
11) The statement of work should contain:
1. A) Information on the key objectives for the project.

2. B) A brief and general description of the work to be performed.
3. C) Expected project outcomes.
4. D) All of these are elements of a statement of work.
Answer: D
12) A statement of work identifies:
1. A) A need.
2. B) A project organization.
3. C) Members of the project team.
4. D) Alternatives.
Answer: A
13) The description and scope section of a statement of work would contain statements regarding:
1. A) Environmental risks.
2. B) Termination of project information.
3. C) Expected benefits.
4. D) Major milestones.
Answer: C
14) Expected commitments from other departments in support of the project would most likely be
detailed in the:
1. A) Approach section of the SOW.

2. B) Risks and concerns section of the SOW.
3. C) Acceptance criteria section of the SOW.
4. D) Resource requirements section of the SOW.
Answer: D
15) A testing plan would be outlined in which section of a statement of work?
1. A) Acceptance criteria
2. B) Risks and concerns
3. C) Description and scope
4. D) Approach
Answer: A
16) The step that reflects the formal "go ahead" given to the project to commence once the scope
definition, planning documents, and other contractual documents have been prepared and approved is
the:
1. A) Go ahead.
2. B) Send off.
3. C) Work authorization.
4. D) Work release.
Answer: C
17) In the case of projects developed for external clients, work authorization typically addresses:
1. A) Budget linkage.
2. B) Audit trail establishment.
3. C) Resource requirements.
4. D) Contractual obligations.
Answer: D
18) All projects are promised in terms of the specific functionality or performance criteria they will
meet. The key feature of the contractual documentation that specifies this functionality or criteria is
the:
1. A) Contractual requirements.
2. B) Valid consideration.
3. C) Contracted terms.
4. D) Contractual performance.
Answer: A
19) The exchange that is specified by the contractual documentation documents is:
1. A) The terms.
2. B) Valid consideration.
3. C) Reciprocity.
4. D) Fair and unencumbered.
Answer: B
20) The section of the contractual documentation that identifies what are the excusable delays,
allowable costs, and criteria for inspection is called the:
1. A) Bylaws.
2. B) Amendments.
3. C) Contracted terms.
4. D) Dissolution factors.
Answer: C
21) A project management firm that promises to do everything for a major project and hand over a
fully functional, ready-to-use deliverable is performing under a(n):
1. A) Umbrella contract.
2. B) All-inclusive contract.
3. C) Cost-plus contract.
4. D) Turnkey contract.
Answer: D
22) Which pair of statements is BEST?
1. A) Cost-plus contracts are prone to budget overruns while turnkey contracts are typically
underbid by the contractor.
2. B) Cost-plus contracts are prone to a budget surplus while turnkey contracts are typically
underbid by the contractor.
3. C) Cost-plus contracts are prone to a budget surplus while turnkey contracts are typically overbid
by the contractor.
4. D) Cost-plus contracts are prone to budget overruns while turnkey contracts are typically overbid
by the contractor.
Answer: D
24) The reporting frequency, report recipients, and content required during project execution is laid
out by:
1. A) The organizational breakdown structure.

2. B) Scope reporting.
3. C) The information system architecture.
4. D) A need-to-know basis.
Answer: B
25) Updates on how the project is performing against milestones can be accomplished by issuing a
report containing:
1. A) S-curves.
2. B) Schedule status.
3. C) Earned value.
4. D) Technical performance.
Answer: B
26) A graphical display of costs against project schedule is called a(n):
1. A) S-curves.
2. B) Gantt chart.
3. C) Radar chart.
4. D) Budget plot.
Answer: A
27) An earned value report shows:
1. A) How much money has actually been spent so far on the project.
2. B) Slippages in performance measures for the work product.
3. C) The budgeted value of work performed.
4. D) Slippages in time against planned measures.
Answer: C
28) Scope management is the function controlling a project in terms of its goals and objectives during
the execution phase.
Answer: FALSE
29) The statement of work is a detailed narrative description of the work required for a project.
Answer: TRUE
30) A comprehensive statement of work includes an estimate of time and costs, resource
requirements, and the scope of the work to be performed.
Answer: TRUE
31) Work authorization functions as the formal "It's OK to begin work," on the project.
Answer: TRUE
32) The terms lump-sum contract and turnkey contract are interchangeable.
Answer: TRUE
33) A lump-sum contract requires the customer to pay for the full delivered price of the project before
any work is done.
Answer: FALSE
34) Scope reporting not only identifies the type of information that will be reported, but also to whom
it will be reported and with what frequency.
Answer: TRUE
44) Any measurable, tangible, verifiable outcome, result, or item that must be produced to complete a
project or part of a project is a:
1. A) Product.
2. B) Deliverable.
3. C) Tangible.
4. D) Work product.
Answer: B
45) The organizational structure for the project team, including policies and procedures, is the:
1. A) Work breakdown structure.

2. B) Rules statement.
3. C) Scope statement.
4. D) Management plan.
Answer: D
46) Which of these scope statement steps creates the all-important bureaucracy for a project?
1. A) The management plan

2. B) The work breakdown structure
3. C) The scope baseline
4. D) The project goal criteria
Answer: A
47) The mountaineers all agreed that their quest to build a bridge between the two peaks of Mount
Kilimanjaro was a noble one, but they had no idea how long it would take to complete until they
finished their:
1. A) Project goal criteria.

2. B) Work breakdown structure.
3. C) Scope baseline.
4. D) Management plan.
Answer: B
49) Budget and schedule information for each activity in a project is contained in the:
1. A) Project goal criteria.

2. B) Management plan.
3. C) Work breakdown structure.
4. D) Scope baseline.
Answer: D
50) The final step in the process of systematically laying out all pre-work information is the creation
of the:
1. A) Scope baseline.
3. C) Management plan.
4. D) Project goal criteria.
Answer: A
51) The PMBoK definition stating, "a process that sets a project's scope by breaking down its overall
mission into a cohesive set of synchronous, increasingly specific tasks," is for the:
1. A) Project plan.
3. C) Deliverable statement.
4. D) Scope expansion.
Answer: B
52) What are work breakdown structure elements that must be completed to conclude the project
deliverables?
1. A) Activities
2. B) Tasks
3. C) Work packages
4. D) Milestones
Answer: C
53) The lowest level in work breakdown structure contains the:
1. A) Atoms.
2. B) Activities.
3. C) Finite elements.
4. D) Work packages.
Answer: D
54) The highest level of work breakdown structure is the:
1. A) Project.
2. B) Deliverable.
3. C) Sub deliverable.
4. D) Work package.
Answer: A
55) The second level in work breakdown structure contains the:
1. A) Projects.
2. B) Deliverables.
3. C) Sub deliverables.
4. D) Work packages.
Answer: B
56) Which of these statements about sub deliverables is BEST?
1. A) Sub deliverables have durations of their own.

2. B) Sub deliverables consume resources.
3. C) Sub deliverables have direct assignable costs.
4. D) Sub deliverables summarize the outcomes of work packages.
Answer: D
57) The costs attached to sub deliverables:
1. A) Are the summary of the work packages that support it.

2. B) Are called phantom costs.
3. C) Should be subtracted directly from deliverable costs.
4. D) Are not recoverable unless explicitly stated in the work breakdown structure.
Answer: A
58) When a supporting document functions as a project control device throughout the project's
development, it is NOT prepared in advance:
1. A) Due to time constraints.

2. B) As it is a dynamic document.
3. C) Since micromanaging can occur.
4. D) Because control devices are left to project completion.
Answer: B
59) When work is organized into cost control accounts:
1. A) The work no longer needs to be tracked by the project manager.

2. B) The sub deliverables become cost centers instead of profit centers for the project.
3. C) These are assigned to the units performing project activities.
4. D) These budgets can then be assigned back to the project manager's department.
Answer: C
60) Project team members can identify who should be notified of task completion status by checking
the:
1. A) Control account.
2. B) Linear responsibility chart.
3. C) Statement of work.
4. D) Monthly joint review report.
Answer: B
68) In order to allocate costs more precisely, a company will assign:
1. A) Bar codes to each activity.

2. B) Activity codes to each subdeliverable.
3. C) WBS codes to each activity.
4. D) Level 4 codes to each package element.
Answer: C
69) Organizational breakdown structure (OBS) allows companies to:
1. A) Assign the duties of tracking costs to the customer's accounting function.

2. B) Circumvent the onerous task of work breakdown structure.
3. C) Issue a preliminary TPS report.
4. D) Define the work to be accomplished.
Answer: D
73) A project manager can identify personnel who will be directly responsible for each task in the
project's development by using a(n):
1. A) Responsibility assignment matrix.

2. B) Milestone designation chart.
3. C) Merrill report.
4. D) Work package report.
Answer: A
76) Procedures that monitor emerging project scope against the original baseline scope are called:
1. A) Configuration control.
2. B) Design control.
3. C) Trend monitoring.
4. D) Document control.
Answer: A
78) Systems for monitoring the project's scope, schedule, and costs during the design stage fall under
the heading of:
2. B) Acquisition control.
3. C) Design control.
4. D) Specification control.
Answer: C
80) The framing crew would never know when it was time to order more $400 hammers without their
fancy new:
1. A) Acquisition control system.

2. B) Specification control system.
3. C) Configuration control system.
4. D) Design control system.
Answer: A
82) The BEST time to establish reasonable controls is:
1. A) After a project is over.

2. B) At the end of a project.
3. C) At the start of a project.
4. D) When they are first needed during the project.
Answer: C
83) The project's scope fixed at a specific point in time is the:
1. A) Scope.
2. B) Design.
3. C) Historical standard.
4. D) Baseline.
Answer: D
84) All pieces of a project must be developed and assembled to produce the final product
functionality. Designing, making, and assembling these components is the role of:
1. A) Configuration management.
2. B) Baseline scope control.
3. C) Systematic management.
4. D) Baseline configuration.
Answer: A
85) The stage of configuration management where the breakdown of the project to the necessary level
of definition is identified as:
1. A) Configuration review.
2. B) Configuration identification.
3. C) Status accounting.
4. D) Configuration control.
Answer: B
86) The management of project changes is most effectively accomplished:
1. A) When project change needs arise.

2. B) When plans and project scope are first articulated.
3. C) Once closeout is complete.
4. D) During the configuration identification phase.
Answer: B
87) The primary action during a configuration review is to:
1. A) Develop a breakdown of the project to the necessary level of definition.

2. B) Identify the specifications of the components of the breakdown and of the total project.
3. C) Meet with all the project stakeholders to agree to the current project definition.
4. D) Change the specifications last obtained by a process change control to match what people
think it should be.
Answer: C
88) The status accounting step of configuration management functions primarily as:
1. A) A hierarchy.
2. B) Binding arbitration.
3. C) Cost control.
4. D) Memory.
Answer: D
89) If viewed from a flow standpoint, the stage of configuration management that has provision for
variable routing to the next step, depending on outcome at this stage, is:
2. B) Configuration review.
3. C) Status accounting.
4. D) Configuration identification.
Answer: A
90) Project closeout documentation that can be used to predict trends, analyze feasibility, and
highlight problem areas for similar future projects is:
1. A) Post project analysis.

2. B) Historical records.
3. C) Financial closeout.
4. D) Post-mortem.
Answer: B
92) Closeout documentation that follows a formal reporting structure, including analysis and
documentation of the project's performance in terms of cost, schedule adherence, and technical
specification performance, is:
1. A) Historical records.
2. B) Financial closeout.
3. C) Hierarchy reporting.
4. D) Post-project analysis.
Answer: D
94) Which step in project management requires project managers to consider the types of records and
reports they and their clients will require at the completion of the project?
1. A) Project closeout
2. B) Completion phase
3. C) Reporting
4. D) Planning
Answer: A
95) A priori consideration of information needs is performed:
1. A) Several years after a project is completed.

2. B) Before a project begins.
3. C) At the start of a project.
4. D) During the project.
Answer: B
96) Controls can be established at any point during a project but should follow the maxim "more
control is better."
Answer: FALSE
97) A baseline is the project's scope fixed at a specific point in time.
Answer: TRUE
98) The project closeout step requires project managers to consider the types of records and reports
they and their clients will require at the completion of a project.
Answer: TRUE
Chapter 6 Project Team Building, Conflict, and Negotiation

1) Project management people skills include:
1. A) Team building.
2. B) Scheduling.
3. C) Budgeting.
4. D) Project evaluation.
Answer: A
2) The first step in assembling a project team is to:
1. A) Talk to potential team members.

2. B) Identify the required skills.
3. C) Negotiate with the functional supervisor.
4. D) Notify top management.
Answer: B
3) Which two steps of project team building are out of sequence?
1. A) You always identify skills before you identify people.

2. B) You always negotiate with the functional supervisor before you negotiate with top
management.
3. C) You always negotiate with the functional supervisor before you talk to potential team
members.
4. D) You always identify personnel before you talk to potential team members.
Answer: C
4) A project manager can identify the skills needed for the project from the:
1. A) Departmental personnel listings.

2. B) Project budget.
3. C) Stakeholder meeting.
4. D) Work breakdown structure.
Answer: D
5) Most project resources are negotiated with:
1. A) Project managers.
2. B) Potential team members.
3. C) Top management.
4. D) External stakeholders.
Answer: A
7) If a functional manager will NOT release the resources you need as project manager, your best
course of action is to:
1. A) Complete the project as best you can and inform management and the client that you
predicted this outcome.
2. B) Use social media to voice your concerns.
3. C) Notify top management of the consequences.
4. D) Update your resume.
Answer: C
8) With a failure to secure personnel releases from functional managers, a project manager should:
1. A) Proceed as originally planned.

2. B) Abandon the project.
3. C) Adjust schedules and scope documents.
4. D) Relinquish project leader status.
Answer: C
9) Team building and conflict management skills are two of the most important people skills that
project managers can cultivate.
Answer: TRUE
10) The first step in assembling a project team is to talk to potential team members.
Answer: FALSE
11) If preferred project team members are not available, the project manager should notify top
management of the consequences.
Answer: TRUE
14) A key determinant of project success is a:
1. A) Rapidly assembled team.

2. B) Slowly assembled team.
3. C) Project leader voted on by the team.
4. D) Clear project mission.
Answer: D
15) The number one predictor of project success is:
1. A) The absence of conflict among project team members.

2. B) Documentation that clearly articulates the consequences of failing to achieve the objectives.
3. C) A mission that is understood and accepted by all team members.
4. D) A well-prepared fallback position in case the project cannot be executed as imagined.
Answer: D
16) The BEST source of troubleshooting for problems is the:
1. A) Project team.
2. B) Project manager.
3. C) Project customer.
4. D) Project champion.
Answer: A
17) Productive interdependencies hinge upon:
1. A) The project manager's role as the hub of the team with all team members as spokes.
2. B) The degree of knowledge the team members have and the importance they attach to
interrelatedness of efforts.
3. C) The cohesiveness of the project team's supply chain and the degree of assistance they render
the project team.
4. D) The support the key stakeholders offer to the overall project success.
19) Trust based on a person's competence would be summarized by this team member's affectionate
statement towards another team member:
1. A) "I trust you to honor your commitments."

2. B) "Does it feel right to allow you to make this decision?"
3. C) "I trust you to be able to accomplish this task."
4. D) "I trust you to do the right thing."
Answer: C
20) The key to creating the energy and spirit that drives effective project efforts is:
1. A) Results orientation.
2. B) Trust.
3. C) Cohesiveness.
4. D) Enthusiasm.
Answer: D
22) Cletus thought they were draining the swamp, but Spike was convinced they were better off
building a bridge across it. Their project team was doomed to failure owing to their:
1. A) Poorly defined team roles.

2. B) Unclear goals.
3. C) Lack of motivation.
4. D) Poorly defined team interdependencies.
Answer: B
24) Which of the following phenomena would be most likely to occur if the project team did NOT
have clear and commonly understood project goals?
1. A) The motivation level of team members would increase.

2. B) Conflict among team members would increase.
3. C) The level of trust among team members would increase.
4. D) The interdependency among team members would increase.
Answer: B
27) The project team's office needed a revolving door to facilitate the influx and outflow of personnel.
Team members needed name tags to keep track of who was who and what their duties were. The
project was jeopardized by:
1. A) Poor leadership.
2. B) High turnover.
3. C) Lack of team motivation.
4. D) Poor communication among team members.
Answer: B
28) Disruptive acts of some project team members due to personality issues, hidden agendas, or
interpersonal problems are categorized as:
1. A) Poor communication.
2. B) Lack of motivation.
3. C) Dysfunctional behavior.
4. D) Poor leadership.
Answer: C
29) Project managers are best able to promote a sense of enthusiasm within the project team when
they create an environment that is challenging, supportive, and personally rewarding.
Answer: TRUE
30) High turnover among project team members is a key element of success since new team members
will bring fresh perspectives and ideas to the group.
Answer: FALSE
37) Team members get to know each other in the:
1. A) Adjourning stage of group development.

2. B) Storming stage of group development.
3. C) Performing stage of group development.
4. D) Forming stage of group development.
Answer: D
38) Conflict begins as team members begin to resist authority and demonstrate hidden agendas and
prejudices in the:
1. A) Storming stage of group development.

2. B) Performing stage of group development.
3. C) Forming stage of group development.
4. D) Norming stage of group development.
Answer: A
39) Everyone in the Tagi tribe agreed to vote out Gervasse at the next tribal council. Their 39-day
project to make it to the final four together was two steps away from completion. This project group is
in the:
1. A) Storming stage of group development.

2. B) Performing stage of group development.
3. C) Forming stage of group development.
4. D) Norming stage of group development.
Answer: B
42) The role of the team leader is to create structure and set the tone for future cooperation and
positive team attitudes in the:
1. A) Forming stage of group development.

2. B) Norming stage of group development.
3. C) Performing stage of group development.
4. D) Adjourning stage of group development.
Answer: A
43) Gersick's model for team development rejects the standard model in favor of something called:
1. A) Forming-storming-norming-performing-adjourning.
2. B) Directed chaos.
3. C) The golden rule.
4. D) Punctuated equilibrium.
Answer: D
44) The punctuated equilibrium model of team development says that:
1. A) Cataclysmic events promote growth after long periods of no change.

2. B) Change occurs as the team leader insists upon it.
3. C) There can be no equilibrium until suffering has occurred.
4. D) If team members are punctual, the project can achieve equilibrium.
Answer: A
51) The two sets of factors that contribute to cross-functional cooperation influence:
1. A) Criticality and accessibility.

2. B) Functionality and outcomes.
3. C) Cooperation and outcomes.
4. D) Cooperation and criticality.
Answer: C
52) What are psychosocial outcomes as contained in the cross-functional cooperation model?
1. A) The emotional and psychological effects that strong performance will have on the project
team
2. B) The psychopathic behaviors exhibited by members of the project team in a social setting
3. C) The psychomotor skills needed to complete many of the tasks by members of the project team
4. D) The psychological profile of introversion/extroversion and intuitive/sensing that determine
how team members interact with each other
Answer: A
53) An overall goal or purpose that is important to all functional groups involved, but whose
attainment requires the resources and efforts of more than one group, is a(n):
1. A) Superordinate goal.
2. B) Means goal.
3. C) End goal.
4. D) Field goal.
Answer: A
54) Cross-functional cooperation directly affects both:
1. A) Superordinate goals and psychosocial outcomes.

2. B) Psychosocial outcomes and task outcomes.
3. C) Task outcomes and self-actualization.
4. D) Self-actualization and superordinate goals.
Answer: B
55) "Loose Cannon" Buchanan said and did whatever he wanted, which was usually at odds with the
behavior of the rest of the business faculty. An appropriate mechanism for bringing him into
alignment with the rest of the team is:
1. A) Issuing superordinate goals.

2. B) Creating a formalized set of rules.
3. C) Making sure he was in close proximity to the rest of the faculty.
4. D) Have the team adopt his aberrant behavioral patterns.
Answer: C
58) Which of these terms is most likely associated with task outcomes?
1. A) Satisfying endeavor
2. B) Worthwhile experience
3. C) Project schedule
4. D) Productive use of time
Answer: C
59) Cross-functional cooperation directly influences both the actual implementation of the project and
the team members' assessment that the project experience was worthwhile.
Answer: TRUE
60) In general, a superordinate goal is a replacement goal for the goals of all functional groups
involved in the project.
Answer: FALSE
61) Accessibility is the perception of the project team members that they are physically located in
such a way that it is easy for them to interact.
Answer: FALSE
64) Virtual teams are often slowed down by difficulty with:
1. A) Superordinate goals.
2. B) Task reliance.
3. C) Punctuated equilibrium.
4. D) Communication.
Answer: D
65) Virtual teams are often slowed down by difficulty establishing:
1. A) Superordinate goals.
2. B) Task outcomes.
3. C) Trust.
4. D) Psychosocial outcomes.
Answer: C
66) A splendid way to improve the efficiency and effectiveness of virtual teams is to:
1. A) Have them meet face-to-face occasionally.

2. B) Restrict team members to audio communication only.
3. C) Mandate audio and video in all electronic communication.
4. D) Use e-mail most of the time since the printed word is rarely misinterpreted.
Answer: A
67) Regular meetings and ad hoc get-togethers prevent a virtual team member from:
1. A) Accomplishing too much.

2. B) Disappearing.
3. C) Forgetting deadlines.
4. D) Missing meetings.
Answer: B
68) Everyone on the virtual project team agreed to respond to e-mail within 24 hours of receipt, and
this:
1. A) Conflict resolution process assured the project team of success.

2. B) Augmented communication assured the project team of success.
3. C) Code of conduct assured the project team of success.
4. D) Heuristic assured the project team of success.
Answer: C
69) During the two hours before their 7:30 p.m. appointments on Wednesday evenings, the operations
team had a weekly gripe session during which everyone gleefully unloaded on the powers that
controlled their miserable lives. This session was valuable since it:
1. A) Allowed them to feel like real men, if only for a little while.
2. B) Rewarded good behavior.
3. C) Established a sense of security and consistency.
4. D) Created a clear process for addressing conflict and group norms.
Answer: D
70) The two main challenges that virtual project teams face are building trust and establishing the best
modes of communication.
Answer: TRUE
72) Conflict is not a state, but a:
1. A) Way of life.
2. B) Condition.
3. C) Process.
4. D) Certainty.
Answer: C
73) Because conflict is perceptual in nature:
1. A) It is a state.
2. B) It is essentially static.
3. C) It often cannot be solved by any conventional means but must be refereed.
4. D) It doesn't really matter if one party has truly wronged another party.
Answer: D
74) Conflict associated with disagreement in project scope, priorities, or objectives is:
1. A) Goal-oriented.
2. B) Administrative.
3. C) Interpersonal.
4. D) Traditional.
Answer: A
75) Your first project team meeting got off to a bad start when the functional manager for your team's
physician refused to allow her to attend the meeting. This:
1. A) Goal-oriented conflict threatened the project's success.
2. B) Administrative conflict posed a serious threat to the project's success.
3. C) Interpersonal conflict was devastating to the project's chance for success.
4. D) Interactionist conflict meant there would be no project completion party in your future.
Answer: B
77) The husband in the marriage project meekly apologized and hid in the garage while the other
project team member rampaged through the house. The husband holds the:
1. A) Behavioral view of conflict.

2. B) Interactionist view of conflict.
3. C) Traditional view of conflict.
4. D) Attributional view of conflict.
Answer: C
81) The misconception of the reason behind another person's behavior is:
1. A) Faulty communication.
2. B) A personal grudge.
3. C) Faulty attribution.
4. D) Prejudice.
Answer: C
83) Two research studies conducted over a decade apart discovered that the major sources of conflict
within project teams are:
1. A) Schedules and project priorities.

2. B) Personalities and cost.
3. C) Human resources and technical opinions.
4. D) Administrative procedures and budget.
Answer: A
84) A manager engaged in conflict mediation may choose to:
1. A) Evade.
2. B) Defuse.
3. C) Excuse.
4. D) Peruse.
Answer: B
85) When a project manager imposes a judgment on warring parties, he is involved in:
1. A) Mediation.
2. B) Elimination.
3. C) Arbitration.
4. D) Acceptance.
Answer: C
90) Principled negotiation is the art of:
1. A) Getting agreement with the other party while maintaining a win-win attitude.
2. B) Refusing to compromise your principles for the sake of a business deal.
3. C) Creating conflict to test for an adversary's weakness and reducing conflict once the weakness
has been exposed.
4. D) Dividing your resources in the face of superior numbers.
Answer: A
91) Which of these questions is important to consider as you enter a negotiation?
1. A) What if I lose?
2. B) How much power do I have?
3. C) How much money do I have?
4. D) Am I smarter than my opponent?
Answer: B
92) An excellent starting point in negotiations is to:
1. A) Deduce their intentions from your fears.

2. B) Identify the person that is the source of the problem.
3. C) Deduce their fears from your intentions.
4. D) Put yourself in their shoes.
Answer: D
93) When negotiating, it is important to:
1. A) Focus on interests, not positions.

2. B) Focus on positions, not interests.
3. C) Focus on positions and interests.
4. D) Focus on neither interests nor positions.
Answer: A
94) Managers involved in negotiation should:
1. A) Search for the absolute best answer.

2. B) Verify whether there is only a fixed set of alternatives.
3. C) Realize that solving the other party's problem is actually the other party's problem.
4. D) Exercise premature judgment.
Answer: B
95) Once a negotiation process begins, during its earliest phase we should include the other party in a
problem-solving session to identify alternative outcomes. This technique is called:
1. A) Broadening options.
2. B) Identifying shared interests.
3. C) Inclusive brainstorming.
4. D) Objective criteria.
Answer: C
96) One of the BEST methods for ensuring that a negotiation proceeds along substantive lines is to
frame the discussion around:
1. A) Subjective criteria.
2. B) Broadening options.
3. C) Negative brainstorming.
4. D) Objective criteria.
Answer: D
97) When negotiating, it is important to remember that for every position, there are usually several
alternatives that can satisfy it.
Answer: FALSE
98) One of the best methods for ensuring that a negotiation proceeds along substantive lines is to
frame the discussion around objective criteria.
Answer: TRUE
Chapter 7 Risk Management

1) The difference between projects that fail and those that are ultimately successful has to do with:
1. A) The plans that have been made to deal with problems as they arise.
2. B) The fact that a successful project doesn't encounter problems.
3. C) Whether the project is for an internal or external customer.
4. D) Whether the problem is time- or budget-related.
Answer: A
2) Project risk is highest during the:
1. A) Termination stage of the project life cycle.

2. B) Concept stage of the project life cycle.
3. C) Implementation stage of the project life cycle.
4. D) Development stage of the project life cycle.
Answer: B
3) Project risk is lowest during the:
1. A) Concept stage of the project life cycle.

2. B) Implementation stage of the project life cycle.
3. C) Termination stage of the project life cycle.
4. D) Development stage of the project life cycle.
Answer: C
4) The period of highest risk impact for a project risk exists primarily in the:
1. A) Development stage of the project life cycle.

2. B) Concept stage of the project life cycle.
3. C) Implementation stage of the project life cycle.
4. D) Termination stage of the project life cycle.
Answer: D
5) The greatest project risk occurs when:
1. A) The probability of the event is high and the consequences of the event are high.
2. B) The probability of the event is high and the consequences of the event are low.
3. C) The probability of the event is low and the consequences of the event are high.
4. D) The probability of the event is low and the consequences of the event are low.
Answer: A
6) The greatest project opportunity occurs when:
1. A) The project is in the concept phase.

2. B) The project is in the development phase.
3. C) The project is in the implementation phase.
4. D) The project is in the termination phase.
Answer: A
7) The amount a company has at stake in a project rises above the dollar value of opportunity in the:
1. A) Implementation phase.
2. B) Development phase.
3. C) Concept phase.
Answer: D
8) Risk and opportunity:
1. A) Both increase throughout the project life cycle.

2. B) Vary inversely throughout the project life cycle.
3. C) Both decrease throughout the project life cycle.
4. D) Do not vary throughout the project life cycle.
Answer: C
11) While thrilling, there is a chance that you would have an accident if you elected to drive on the
wrong side of a divided highway in Woodward, an outcome that could be described as:
1. A) High in consequence and high in probability.

2. B) Low in consequence and low in probability.
3. C) Low in probability and high in consequence.
4. D) High in probability and low in consequence.
Answer: A
12) The risk is highest in the earliest phase of the project life cycle.
Answer: TRUE
13) Opportunity emerges from favourable project circumstances and risk from unfavourable events.
Answer: TRUE
14) As risk decreases in the project life cycle, opportunity increases.
Answer: FALSE
15) Risks can be quantified by multiplying the likelihood a failure will occur by the severity of the
failure.
Answer: TRUE
18) Risk management is a:
1. A) Three-stage process.
2. B) Four-stage process.
3. C) Five-stage process.
4. D) Six-stage process.
Answer: B
19) The construction foreman posted a large sign requiring all work site visitors to don a hard hat and
safety glasses. He also purchased copious quantities of both items and made them readily available at
the entrance. The foreman is engaged in:
1. A) Risk identification.
2. B) Risk mitigation.
3. C) Analysis of probability and consequences.
4. D) Control and documentation.
Answer: B
22) The house had almost been framed when an F-5 tornado ripped across the plains and turned the
house back into a lumber pile, albeit not stacked as neatly as it was originally. The homeowner's fears
of:
1. A) Technical risks had come true.

2. B) Operating risks had come true.
3. C) Acts of God had come true.
4. D) Environmental risks had come true.
Answer: C
23) A serious risk factor probably has:
1. A) A high consequence and a medium likelihood.

2. B) A high consequence and a low likelihood.
3. C) A medium consequence and a low likelihood.
4. D) A low consequence and a medium likelihood.
Answer: A
26) A method for conducting risk factor identification that consolidates the judgments of isolated
anonymous respondents is:
1. A) A brainstorming meeting.
2. B) The Delphi method.
3. C) Past history.
4. D) Multiple assessments.
Answer: B
27) A method for conducting risk factor identification that generates ideas but doesn't focus on
decision making is:
3. C) Past history.
Answer: A
28) One source of information on future risks and the leading indicators that accompany risks is:
3. C) Past history.
Answer: C
30) The probability that project revenues will NOT be sufficient to repay the debts is:
1. A) Financial risk
2. B) Cost estimate risk.
3. C) Market risk.
4. D) Promotion risk.
Answer: A
31) The probability that funds allocated to the project will be insufficient to complete it is:
1. A) Technical risk.
2. B) Cost estimate risk.
3. C) Financing risk.
4. D) Operating risk.
Answer: B
32) The probability that investments made to fund the front-end activities will be lost due to project
abandonment is:
1. A) Promotion risk.
2. B) Political risk.
3. C) Organizational risk.
4. D) Financial risk.
Answer: A
33) There is always a chance that the music loving public cannot be convinced of the need to return to
the 8-track format for new releases. The probability that we don't sell one million units before the
holiday season is:
1. A) Promotion risk.
2. B) Market risk.
4. D) Financial risk.
Answer: B
35) The probability that legal and managerial structures put together to develop and operate the
project will NOT perform well is:
1. A) Operating risk.
2. B) Political risk.
4. D) Integration risk.
Answer: C
36) The probability that a project to establish infrastructure in a third-world country teetering on the
brink of civil war is fraught with:
1. A) Political risk.
2. B) Operating risk.
4. D) Integration risk.
Answer: A
37) The probability that a project will overrun its allocated duration is:
1. A) Volume market risk.

2. B) Price market risk.
3. C) Integration risk.
4. D) Schedule risk.
Answer: D
38) A project team assesses their primary risk factor's probability of failure with a maturity risk of 0.3,
a complexity risk of 0.7, and a dependency risk of 0.8. The probability of failure is:
1. A) Less than or equal to 0.3.

2. B) Greater than 0.3 but less than or equal to 0.55.
3. C) Greater than 0.56 but less than or equal to 0.89.
4. D) Greater than or equal to 0.9.
Answer: C
39) With a maturity risk of 0.3, a complexity risk of 0.4, and a dependency risk of 0.5, the probability
of failure is:
1. A) About 0.3.
2. B) About 0.4.
3. C) About 0.5.
4. D) About 0.6.
Answer: B
40) A project team assigns probabilities of 0.1, 0.2, and 0.4 respectively to the maturity, complexity,
and dependency categories. The probability of failure can be calculated as:
1. A) 0.23.
2. B) 0.33.
3. C) 0.65.
4. D) 0.70.
Answer: A
41) The consequences of failure categories of cost, schedule, reliability, and performance were
believed to be 0.25, 0.35, 0.45, and 0.55. What is the overall consequence of failure?
1. A) 0.2
2. B) 0.3
3. C) 0.4
4. D) 0.5
Answer: C
42) With a cost factor of 0.8, a schedule rating of 0.6, a reliability rating of 0.5, and a performance
rating of 0.6, the overall consequence of failure was:
1. A) 0.565 for the squid-proofing project.

2. B) 0.500 for the squid-proofing project.
3. C) 0.750 for the squid-proofing project.
4. D) 0.625 for the squid-proofing project.
Answer: D
43) The overall consequence of failure was 0.4 and curiously enough, the consequence of
performance is twice that of reliability; the consequence of reliability is twice that of schedule; and
the consequence of schedule is twice that of cost. What is the consequence of failure cost?
1. A) 0.091
2. B) 0.107
3. C) 0.123
4. D) 0.136
Answer: B
49) Technical risk is the probability that the project will not perform to the required standards or
produce substandard products or have excessive operating cost consumption.
Answer: TRUE
50) The probability that the investments made to fund the front-end activities will be lost due to
project abandonment is financing risk.
Answer: FALSE
Since the probabilities must range between 0 and 1, the only possible answer is 0.2928.
59) If the risk of a negative outcome is slight, the BEST course of action might be to:
1. A) Minimize it.
2. B) Share it.
3. C) Transfer it.
4. D) Accept it.
Answer: D
60) The professor wore both a belt and suspenders during lecture each day because he chose to:
1. A) Accept risk.
2. B) Minimize risk.
3. C) Share risk.
4. D) Transfer risk.
Answer: B
61) Fred Knievel took out a substantial life insurance policy before he began his trek across North
America in his Volvo. Doing so enabled him to:
1. A) Accept risk.
2. B) Minimize risk.
3. C) Transfer risk.
4. D) Share risk.
Answer: C
63) Project penalty clauses that initiate at mutually agreed-on points in the project's development and
implementation are:
1. A) Liquidated damages.
2. B) Milestone adjustments.
3. C) Contingency clauses.
4. D) Penalty points.
Answer: A
64) The firm set aside a little extra money just in case an unforeseen element of cost pushed the
project beyond what they had budgeted. This extra money is called:
1. A) A rainy day fund.

2. B) A contingency reserve.
3. C) An escalation clause.
4. D) A sinking fund.
Answer: B
66) The expected cost of an item that is estimated at $5,000 with a task contingency multiplier of 1.2
is:
167. A) $4,167.
168. B) $5,000.
169. C) $5,200.
170. D) $6,000.
Answer: D
67) Twenty-thousand dollars was budgeted for the office renovation that had a task contingency
multiplier of 1.3. The estimated cost of the task must be:
400. A) About $15,400.

401. B) About $26,000.
402. C) About $22,800.
403. D) About $18,600.
Answer: A
68) What is the relationship between a project's progress and the level of budget reserves?
1. A) As the project nears completion, the budgeted reserves tend to increase.

2. B) As the project nears completion, the budgeted reserves tend to decrease.
3. C) As the budgeted reserves increase, the project tends to near completion.
4. D) As the budgeted reserves decrease, the project tends to near completion.
Answer: B
69) The budget safety measures that address higher risks than task contingency are known as:
1. A) CYA factors.
2. B) Buffer stocks.
3. C) Managerial contingency.
4. D) Task offsets.
Answer: C
70) A common use of managerial contingency funds would be for:
1. A) Office supplies.
2. B) Management consulting fees.
3. C) A sudden increase in the price of unleaded gasoline.
4. D) An "act of God."
Answer: D
71) The act of pairing a junior project team member with a senior manager in order to help the junior
team member to learn best practices is known as:
1. A) Mentoring.
2. B) Cross-training.
3. C) Supervising.
4. D) Interning.
Answer: A
72) Each project team member had a backup that could fill in at a moment's notice should another
team member fall by the wayside. The project was able to mitigate risks in this fashion thanks to an
aggressive:
1. A) Mentoring program.
2. B) Cross-training program.
3. C) Duplication program.
4. D) Featherbedding program.
Answer: B
73) One approach to risk mitigation is simply to accept it.
Answer: TRUE
74) Risk cannot be transferred because ultimately your own project will suffer the consequences if the
event occurs.
Answer: FALSE
75) Contingency reserves require a construction company to hold back some funds in an account just
in case something happens that increases the overall project cost.
Answer: TRUE
76) The highest dollar value of reserves is typically task contingency.
Answer: FALSE
80) The European Association for Project Management has developed an integrated program of risk
management based on efforts to extend risk management to cover a project's entire life cycle. This
program is known as:
1. A) EAPM-RM.
2. B) RMEAPM.
3. C) ERM.
4. D) PRAM.
Answer: D
81) Which of these statements about the project risk analysis and management program is BEST?
1. A) Risk management is integrated throughout the project's life cycle.

2. B) The risk management strategy should be unwavering throughout the entire project life
cycle.
3. C) The project manager should choose a small subset of all risk management tools.
4. D) Risk management is best handled using an ad hoc approach.
Answer: A
1. A) Risk management follows a life cycle much as a project follows a life cycle.
2. B) The risk management strategy should be unwavering throughout the entire project life
cycle.
3. C) If a choice between accepting and transferring risk presents itself, risk should be
transferred.
Answer: A
1. A) If a choice between accepting and transferring risk presents itself, risk should be
transferred.
2. B) Different risk management strategies should be deployed at various points in the project
life cycle.
Answer: B
1. A) Risk management is best handled using an ad hoc approach.

2. B) If a choice between accepting and transferring risk presents itself, risk should be
transferred.
4. D) Multiple approaches to risk management should be integrated into a coherent, synthesized
approach.
Answer: C
85) At each phase, the project risk analysis and management program should produce:
1. A) Alternatives.
2. B) A budget.
3. C) Deliverables.
4. D) Meetings.
Answer: C
86) One phase of the project risk analysis and management program is concerned more with the
project than the management of risk. The latter is facilitated by successful completion of this step, but
not the focal point. This phase in the project risk analysis and management program is:
1. A) Estimate.
2. B) Define.
3. C) Focus.
4. D) Manage.
Answer: B
87) The first phase of a comprehensive project risk assessment should be:
1. A) To assess the specific sources of risk at the outset of the project, including the need to
fashion appropriate responses.
2. B) To make sure the project is well defined, including all deliverables, statement of work, and
project scope.
3. C) To develop reasonable estimates of the impacts on the project of both the identified risks
and the proposed solutions.
4. D) To produce a project risk management plan that proactively offers risk mitigation
strategies for the project as needed.
Answer: B
88) The PRAM methodology contains an embedded feedback loop after which step?
1. A) Focus
2. B) Plan
3. C) Evaluate
4. D) Identify
Answer: C
89) The PRAM step that occurs while the project work is being carried out is:
1. A) Ownership.
2. B) Identify.
3. C) Focus.
4. D) Manage.
Answer: D
90) The tasks of reviewing and refining the manner in which we have classified risks for the project,
determining if there are commonalities across the various risks we have uncovered are performed in
the ________ of the project risk analysis and management model.
1. A) structure step
2. B) ownership step
3. C) define step
4. D) plan step
Answer: A
91) The deliverable from the focus step of the project risk analysis and management model is:
1. A) A clear, unambiguous, shared understanding of all key aspects of the project documented,
verified, and reported.
2. B) A clear, unambiguous, shared understanding of all relevant key aspects of the RMP
documented, verified, and reported.
3. C) A clear understanding of the implications of any important simplifying assumptions about
relationships between risks, responses and base plan activities.
4. D) Clear ownership and management allocations, effectively and efficiently defined, legally
enforceable in practice where appropriate.
Answer: B
Chapter 8 Cost Estimation and Budgeting

1) Which of the following is a direct cost?
1. A) Labour
2. B) Rent
3. C) Depreciation on equipment
4. D) Health benefits
2) Which worker's wages would constitute a direct cost for a construction project?
1. A) The project's cost accountant

2. B) The brick mason
3. C) The architect's assistant
4. D) The foreman
Answer: B
3) Direct costs are those clearly assigned to the aspect of the project that generated the cost.
Answer: TRUE
6) Three workers complete a full 8-hour day finishing concrete for a terrace. All three workers are
paid $12 an hour and the job bills to the customer for $450. What are the total direct labor costs?
1. A) $450
2. B) $12
3. C) $288
4. D) $96
Answer: C
7) Which of these indirect costs is typically classified as an overhead cost?
1. A) Advertising
2. B) Shipping
3. C) Sales commissions
4. D) Taxes
Answer: D
8) Which of these indirect costs is typically classified as a selling or administrative cost?
1. A) Secretarial support
2. B) Utilities
3. C) Insurance
4. D) Depreciation
Answer: A
9) A systems analyst is paid at the rate of $50/hour and will be needed for 40 hours. Her employer
uses an overhead multiplier of 60% and does not factor in personal time. Her total direct labor cost
should be billed at:
1. A) $2,000.
2. B) $3,200.
3. C) $1,250.
4. D) $4,500.
Answer: B
10) Workers paid $15.00 per hour with an overhead charge of 1.45 and a personal time allowance of
1.15, have what total direct labor cost for an 8-hour work day?
151. A) $151.30
152. B) $174.00
153. C) $200.10
154. D) $236.80
Answer: C
11) Which of these is typically a recurring cost?
1. A) Preliminary market analysis

2. B) Personnel training
3. C) Outplacement services
4. D) Logistics
Answer: D
12) Which of these is typically a nonrecurring cost?
1. A) Site study
2. B) Labor
3. C) Material
4. D) Sales
Answer: A
13) The charge that is most likely a fixed cost is for:
1. A) Materials.
2. B) Equipment rental.
3. C) Direct labor.
4. D) Utilities.
Answer: B
14) You are probably looking at a bill for a variable cost when you are paying for:
1. A) Leased capital equipment.

2. B) Salaries.
3. C) Materials.
4. D) Health insurance.
15) A normal cost is incurred when:
1. A) Overtime is used more than originally planned.

2. B) Shipments are expedited.
3. C) Additional temporary workers are brought on site.
4. D) The aggressive baseline plan is adhered to.
Answer: D
16) Unplanned costs incurred when steps are taken to speed up a project's completion are called:
1. A) Expedited costs.
2. B) Accelerated costs.
3. C) Pass-through costs.
4. D) Normal costs.
Answer: A
22) A key for developing project cost estimates is to:
1. A) Cost the project while considering the total package.

2. B) Cost the project on a work package and task basis.
3. C) Cost the project on a major module basis.
4. D) Cost the project and add 33% for contingency.
Answer: B
23) The order of magnitude cost estimate is used when:
1. A) Ballpark estimates are not considered accurate enough.

2. B) Historical data are readily available.
3. C) Information or time is scarce.
4. D) Parametric estimation has already been performed.
Answer: C
24) When asked to provide an estimate of an irrigation system, Pete looked from one end of the field
to the other, licked a finger and held it in the air, squinted into the sun and said $25,000, give or take
30%. The technique employed for cost estimation is:
1. A) Parametric.
2. B) Comparative.
3. C) Definitive.
4. D) Ballpark.
Answer: D
25) Estimates based on the assumption that historical data can be used as a frame of reference for
current estimates are:
1. A) Comparative estimates.
2. B) Ballpark estimates.
3. C) Definitive estimates.
4. D) Feasibility estimates.
Answer: A
26) An order of magnitude estimate is usually more accurate than a ballpark estimate.
Answer: FALSE
27) Comparative estimates are more accurate than definitive estimates when applied to the same
project.
Answer: TRUE
30) Effective comparative estimates rely most heavily on:
1. A) An accurate inflation factor.

2. B) The correct number of years elapsed between the old project and the current one.
3. C) True comparability between the current project and previous project work.
4. D) The correct number of employees on the new project compared with the previous one.
Answer: C
31) Cost estimates that are based as a guideline on real numbers, or figures derived after the
completion of preliminary design work, are:
1. A) Definitive estimates.
2. B) Order of magnitude estimates.
3. C) Parametric estimates.
4. D) Feasibility estimates.
Answer: D
32) Once most of the design work is complete, at a point when the scope and capabilities of the
project are quite well understood, a ________ may be developed.
1. A) definitive estimate
2. B) comparative estimate
3. C) parametric estimate
4. D) non-parametric estimate
Answer: A
33) Which of these estimates should be the most accurate?
1. A) Parametric
2. B) Definitive
3. C) Comparative
4. D) Order of magnitude
Answer: B
34) An activity with a learning rate of 0.85 takes 25 hours for the first iteration. How long will it take
to complete this task for the 15th time?
12. A) 12.55 hours

13. B) 12.85 hours
14. C) 13.15 hours
15. D) 13.25 hours
Answer: D
35) If it takes 40 hours to complete the first unit and the company knows from experience that the
learning rate should be 0.80, how fast can they be expected to finish all twelve units?
1. A) 18 hours
2. B) 289 hours
3. C) 264 hours
4. D) 316 hours
Answer: B
36) It took 44 hours of analysis to complete the first phase, but the second phase was done in 42
hours. If this learning rate continues, then the 8th analysis should take a mere:
1. A) 36 hours and 26 minutes, give or take.

2. B) 37 hours and 36 minutes, give or take.
3. C) 38 hours and 16 minutes, give or take.
4. D) 39 hours and 6 minutes, give or take.
Answer: C
37) What learning rate is being demonstrated if the first unit takes 25 hours and the third unit takes 24
hours to complete?
1. A) Greater than or equal to 97 percent

2. B) Less than 97 percent but greater than or equal to 95 percent
3. C) Less than 95 percent but greater than or equal to 93 percent
4. D) Less than 93 percent
Answer: A
38) An activity with a learning rate of 0.8 takes 30 hours for the first six units. How long will it take
to complete this task for the 12th time?
2. A) 2.985 hours
3. B) 3.055 hours
4. C) 3.135 hours
5. D) 3.325 hours
Answer: C
39) If it takes 40 hours to complete the first unit and the company knows from experience that the
learning rate should be 0.75, how fast can they be expected to finish all ten units?
208. A) 208.48 hours

209. B) 213.52 hours
210. C) 218.46 hours
211. D) 223.54 hours
Answer: C
40) It took 66 hours of analysis to complete the first phase, but the second phase was done in 61
hours. If this learning rate continues, then the 8th analysis should take a mere:
1. A) 52 hours and 11 minutes, give or take.

2. B) 53 hours and 22 minutes, give or take.
3. C) 54 hours and 33 minutes, give or take.
4. D) 55 hours and 44 minutes, give or take.
Answer: C
41) What learning rate is being demonstrated if the first unit takes 25 hours and the seventh unit takes
22 hours to complete?
1. A) Greater than or equal to 97 percent

2. B) Less than 97 percent but greater than or equal to 96 percent
3. C) Less than 96 percent but greater than or equal to 95 percent
4. D) Less than 95 percent
Answer: C
42) Which statement about the use of learning curves is BEST?
1. A) Learning curve effects stay constant across projects.

2. B) A job that is substantially re-engineered will have no disruption of its learning curve.
3. C) It may be more likely to see learning curve effects in construction than in research and
development.
4. D) Every worker performing an identical task will exhibit the same learning effect.
Answer: B
53) Whether it is the Boeing V-22 Osprey or a simple storm door installation for a do-it-yourself,
nothing is ever completed as quickly or as cheaply as initial estimates due to:
1. A) Lack of definition.
2. B) Low initial estimates.
3. C) Specification changes.
4. D) Unexpected technical difficulties.
Answer: D
54) Poor initial scope development and work breakdown structure often creates cost overruns that are
attributable to:
1. A) Lack of definition.
2. B) Deliberate low initial estimates.
3. C) Unexpected technical difficulties.
4. D) External factors.
Answer: A
57) A common reason for cost overruns in a project is a low initial estimate of project cost.
Answer: TRUE
60) A plan that identifies the allocated resources, the project's goals, and the schedule that allows an
organization to achieve those goals is:
1. A) The work breakdown structure.

2. B) The risk management plan.
3. C) The statement of work.
4. D) The project budget.
Answer: D
61) The project plan is supported by:
1. A) The work breakdown structure, the budget, and the schedule.

2. B) The work breakdown structure, the budget, and the work packages.
3. C) The work breakdown structure, the work packages, and the schedule.
4. D) The work breakdown structure, the schedule, and the contingency plan.
Answer: A
62) Input is received from an organization's management to create a project budget in:
1. A) Zero-based budgeting.
2. B) Top-down budgeting.
3. C) Bottom-up budgeting.
4. D) Activity-based budgeting.
Answer: B
63) An advantage of top-down budgeting is:
1. A) That top management estimates of project costs are often quite accurate, at least in aggregate.
2. B) An elimination of the friction between top and lower levels in the competition for budget
money.
3. C) That projects are no longer a zero-sum game among lower level managers.
4. D) That top management budgets, by definition, cannot experience overruns.
Answer: A
64) A budget that is created by starting with the work breakdown structure, determining costs for each
work package, and then adding these costs together is:
1. A) Zero-based budgeting.
2. B) Top-down budgeting.
3. C) Bottom-up budgeting.
4. D) Activity-based budgeting.
Answer: C
65) When properly performed, bottom-up budgeting has the disadvantage of:
1. A) A lack of detail needed in project plans.

2. B) A lack of coordination among project managers and functional department heads.
3. C) Being a hindrance to top managers when prioritizing projects that are competing for the same
scarce resources.
4. D) A reduction of top management's control of the budget process to one of oversight.
Answer: D
66) A budgeting method that assigns costs first to activities and then to projects based on each
project's use of resources is:
1. A) Activity-based budgeting.
2. B) Zero-based budgeting.
3. C) Top-down budgeting.
4. D) Bottom-up budgeting.
Answer: A
67) Activity-based costing and bottom-up budgeting share the step of:
1. A) Identifying cost drivers associated with each activity.

2. B) Identifying activities that consumer resources and assigning costs to them.
3. C) Assigning costs to projects by multiplying the cost driver rate times the volume of units.
4. D) Tending to overestimate project costs due to the lack of involvement by top management.
Answer: B
68) There is a tendency for different departments or functions to compete for scarce resources in a
zero-sum game when bottom-up budgeting is used to develop a project budget.
Answer: FALSE
69) Top-down budgeting, where input is gathered directly from the organization's top management, is
often quite accurate.
Answer: TRUE
.
72) The new bridge would require 14 piers to support it and it was known that each time a pier is sunk
into the harbor it would take 30 man-hours of labour at $50 per hour. An activity-based costing of the
entire pier system results in a total labour cost of:
500. A) $19,500.
501. B) $21,000.
502. C) $22,500.
503. D) $24,000.
Answer: B
73) The new artisanal greenhouse would require 700 empty wine bottles be embedded in a frame
made of clay and straw. The builder, a man with too much time on his hands, had determined that
each time a bottle was added to the structure it would take 30 minutes of labor at $7.50 per hour in the
blazing sun. An activity-based costing of the entire artisanal greenhouse revealed that the total labor
cost would be:
525. A) $2,525.
526. B) $2,850.
527. C) $2,625.
528. D) $2,450.
Answer: C
74) A budget containing disaggregated figures across the schedule when work is planned is a:
1. A) Time-phased budget.
2. B) Chronic budget.
3. C) Temporal budget.
4. D) Calendar budget.
Answer: A
75) Which of the following is NOT contained in a typical time-phased budget?
1. A) Total expenses for each activity

2. B) Total expenses for each time unit
3. C) Cumulative expenses for each time unit
4. D) Cumulative time for each expense
Answer: D
76) What is the cumulative cost in February in this time-phased budget? (75 - 79)

Activity January February March April
Survey 8,000
Design 5,250 4,500
Dirt 6,700
Foundation 12,550
Framing 37,250
Plumb 7,800
Wire 5,500
1. A) $23,750
2. B) $37,000
3. C) $45,050
4. D) $50,550
Answer: B
77) What is the total amount budgeted for design costs in this time-phased budget?
1. A) $5,250
2. B) $4,500
3. C) $9,750
4. D) $12,550
Answer: C
78) What is the total amount budgeted for March in this time-phased budget?
1. A) $37,250
2. B) $82,050
3. C) $41,000
4. D) $45,050
79) What is the total project budget in this time-phased budget?
1. A) $85,450
2. B) $87,550
3. C) $82,050
4. D) $86,550
Answer: B
80) What is the total project budget in this time-phased budget? (80 - 83)

Activity July August September October November
RFP 34,721
Analysis 11,049 33,655 34,388
Design 33,718 34,474 26,759 36,328

Coding 7,713 34,905 40,244
Testing 40,916 896
Training 20,958 9,327
Roll-Out 8,186
1. A) $251,382
2. B) $389,828
3. C) $408,237
4. D) $478,300
Answer: C
81) What is the cumulative project budget for September in this time-phased budget?
1. A) $96,052
2. B) $155,330
3. C) $152,927
4. D) $251,382
Answer: D
82) What is the total project budget for design in this time-phased budget?
1. A) $131,279
2. B) $155,330
3. C) $124,688
4. D) $146,983
Answer: A
83) What is the project budget for November in this time-phased budget?
1. A) $8,186
2. B) $18,409
3. C) $389,828
4. D) $408,237
Answer: B
89) An allocation of extra funds to cover uncertainties and improve chances that the project can be
completed within the timeframe originally specified is a:
1. A) Setback.
2. B) Budget contingency.
3. C) Reallocation budget.
4. D) Reserve line budget.
Answer: B
90) Contingency money is:
1. A) The money that must be received before any project work can begin.
2. B) Money that is spent first to lock-in all contract guarantees.
3. C) Not usually a part of the activity-based costing process.
4. D) Valued at a higher rate than non-contingency money when determining project costs.
Answer: C
91) Contingency money is:
1. A) Not formally in the project budget, but held in a separate company account for all projects.
2. B) Added to the project's budget following the identification of all project costs.
3. C) The first line item in any project budget at an amount dictated by company policy.
4. D) Not in the project's budget, but calculated and set aside once the project budget is completed.
Answer: B
94) "If anything can go wrong it often will" is an articulation of:
1. A) Taylor's Theorem.
2. B) Pinto's Postulate.
3. C) Murphy's Law.
4. D) The Pareto Principle.
Answer: C
95) Project cost estimates usually anticipate that resources will be available, that the weather will not
be extreme, and that funding will materialize, creating what are called:
1. A) Hyperactivity.
2. B) Standard operating procedures.
3. C) Standard duress.
4. D) Normal conditions.
Answer: D
97) A disadvantage of contingency funds is:
1. A) A recognition that the future contains both knowns and unknowns and the problems that
might arise will impact the budget.
2. B) It is difficult to ascertain across what project activities contingency funds should be applied.
3. C) That application to the contingency fund gives an early warning signal of a potential
overdrawn budget.
4. D) That provision is made in the company plans for an increase in project cost.
Answer: B
98) A contingency rate of 10% on a building project budgeted at $20 million means the project
organization is hoping to bring the project in for around:
1. A) $22 million.
2. B) $2 million.
3. C) $18 million.
4. D) $200 million.
Answer: C
99) An early warning signal for the potential of an overdrawn budget is created when:
1. A) Activity-based costing cannot identify drivers.

2. B) A bottom-up budget never makes it up the chain of command.
3. C) Contingency funds are applied for.
4. D) A top-down process moves too quickly down to the functional managers.
Answer: C
Chapter 9 Project Scheduling: Networks, Duration Estimation, and Critical Path

1) The term ordered activity means:
1. A) Tasks must either precede or follow other tasks in project planning and management.
2. B) Tasks cannot be performed unless the project manager issues a specific command to perform
the work.
3. C) Prior project planning removes the need for any rush so that tasks can be performed in a
methodical fashion.
4. D) Tasks are not performed unless the customer issues a specific request to perform the work.
Answer: A
2) A sequence of activities defined by the project network logic is a(n):
1. A) Event.
2. B) Path.
3. C) Node.
4. D) Route.
Answer: B
3) One of the defining points of a network, a junction point joined to some or all of the others by
dependency lines, is called a(n):
1. A) Event.
2. B) Path.
3. C) Node.
4. D) Burst.
Answer: C
4) These can be located by doing a backward pass through a network.
1. A) Critical paths
2. B) Merge activities
3. C) Successors
4. D) Burst activities
Answer: D
5) An activity has an expected duration and an expected cost. Another name for an activity is a(n):
1. A) Work package.
2. B) Node.
3. C) Critical path.
4. D) Event.
Answer: A
6) Serial activities are those that:
1. A) Flow from one to the next in sequence.

2. B) Have sequential numbers.
3. C) Have the same numbers.
4. D) Should be performed simultaneously.
Answer: A
7) Concurrent activities are:
1. A) Activities that must be done one after the other.

2. B) Activities that can be performed at the same time.
3. C) Activities that use labor from the same group of workers.
4. D) Activities that use resources from the same resource pool.
Answer: B
8) Which of these statements about this network is BEST?
1. A) Activities A and B are serial activities.

2. B) Activities B and C are serial activities.
3. C) Activities A and C are serial activities.
4. D) Activity D is a merge activity.
Answer: D
9) A backward pass is performed when it is necessary to undo some work that has been performed in
order to complete it properly.
Answer: FALSE
12) Network logic suggests that:
1. A) Activity D can start any time.

2. B) Activity A must be complete before Activity B can be done.
3. C) Activities A, B and C must be complete before Activity D can be done.
4. D) Activity C must begin before Activity B begins.
Answer: C
13) Based on the activity network pictured, what is the BEST statement?
1. A) Before starting Activity C, Activity A and Activity B must be completed.

2. B) Before starting Activity D, Activity A and Activity B need to be completed.
3. C) Before starting Activity E, Activity A and Activity B need to be completed.
4. D) Before starting Activity C, Activity A and Activity D must be completed.
Answer: A
14) Based on the activity network pictured, what is the BEST statement?
1. A) Activity C is a burst activity.
2. B) Activity E has one predecessor, Activity B.
3. C) Activity A and Activity C are merge activities.
4. D) There are no serial activities in this network.
Answer: B
16) The overall effect of laddering activities is to:
1. A) Streamline the linkage and sequencing between activities and keep project resources fully
employed.
2. B) Summarize some subsets of the activities identified in the overall project network.
3. C) Allow the project team to disaggregate the overall project network into logical summaries.
4. D) Allow the project manager to more fully deploy resources and complete the project with zero
slack.
Answer: A
17) Summaries for some subsets of the activities identified in the overall project network are called:
1. A) Ladder activities.
2. B) Hammock activities.
3. C) Negative float activities.
4. D) Compressed activities.
Answer: B
18) Hammock activities allow:
1. A) Project managers to streamline the linkage and sequencing between activities.

2. B) Project workers to effectively skip nonessential activities without compromising project
quality.
3. C) The project team to better disaggregate the overall project network into subsets.
4. D) The project manager to identify float more quickly and leverage it more successfully for the
overall success of the project.
Answer: C
19) Activities C, D, and E in the project represented by the network are to be ham mocked. What is
the activity length of the hammock activity?
1. A) 20
2. B) 16
3. C) 13
4. D) 11
Answer: A
20) Activities C, D, and E in the project represented by the network are to be hammocked. What are
the early start and late finish times of the hammock activity?
1. A) 6, 20
2. B) 6, 26
3. C) 9, 20
4. D) 9, 26
Answer: B
21) Preceding activities are those that must occur before others can be done.
Answer: TRUE
22) A merge activity has two or more immediate predecessors.
Answer: TRUE
23) Burst activities are those with two or more successor activities.
Answer: FALSE
24) At a merge point in a forward pass, the largest preceding early finish becomes the early start for
that node.
Answer: TRUE
25) At a burst point in a backward pass, the largest succeeding late start becomes the late finish for
that node.
Answer: FALSE
29) Prior to creating a network, it is important to:
1. A) Identify all loops through activities.

2. B) Identify the party responsible for each activity.
3. C) Calculate the float for each activity.
4. D) Understand the activity precedence.
Answer: D
30) The length of time expected to complete an activity assuming that its development proceeds
normally is called the:
1. A) Optimistic duration.
2. B) Pessimistic duration.
3. C) Most likely duration.
4. D) Normal duration.
Answer: C
31) Ray's shipment of materials hit every red light and traffic jam on the way to the site. Upon arrival,
half of the material was judged defective, necessitating a trip back to the supplier, and then the same
arduous journey back to the site once the new materials were loaded. Traffic was a little better on the
second round but the flat tire and subsequent repair caused as much if not more delay than the first
trip. In the final analysis:
1. A) The project activity of Material Delivery was pretty close to the optimistic estimate.
2. B) The project activity of Material Delivery was pretty close to the most likely estimate.
3. C) The project activity of Material Delivery had a much higher variance than anticipated.
4. D) The project activity of Material Delivery was pretty close to the pessimistic estimate.
Answer: D
32) The variance of an activity is given by:
2. A) [1/6(b-a)] 2.
3. B) 1/6[b-a].
4. C) [1/36(b-a)] 2.
5. D) 1/36[b-a].
Answer: A
33) An activity has an optimistic time estimate of 25 days, a most likely estimate of 29 days, and a
pessimistic estimate of 34 days. What is the expected duration of the activity?
1. A) Less than 31 days but greater than or equal to 29 days

2. B) Less than 29 days but greater than or equal to 27 days
3. C) Less than 27 days but greater than or equal to 25 days
4. D) Less than 25 days
Answer: A
pessimistic estimate of 37 days. What is the variance of the activity?
3. A) 3.33
4. B) 6.66
5. C) 9.99
6. D) 11.11
Answer: D
pessimistic estimate of 32 days. What is the expected duration of the activity?
22. A) 22.83 days

23. B) 23.67 days
24. C) 24.33 days
25. D) 25.17 days
Answer: A
pessimistic estimate of 22 days. What is the expected standard deviation of the activity?
1. A) Between 1 and 2 days

2. B) Between 2 and 3 days
3. C) Between 3 and 4 days
4. D) Between 4 and 5 days
Answer: A
37) An activity has a pessimistic time that is four times as long as its most likely time and six times as
long as its optimistic time. If the activity variance is 12, what is the expected time?
1. A) About 8 days
2. B) About 9 days
3. C) About 10 days
4. D) About 11 days
Answer: A
38) Activity Z has estimates a = 5, b = 12, m = 7; activity X has estimates a = 5, b = 11, m = 6; and
activity Y has estimates a = 3, b = 11, m = 8. Which of the following statements is BEST?
1. A) Activity X is longer than Activity Y.

2. B) Activity X has a higher standard deviation than Activity Z.
3. C) Activity Z is shorter than Activity Y.
4. D) Activity Y has a smaller variance than Activity Z.
Answer: C
39) Project Test Bank is composed of activities we will refer to as A, B, C, and D for convenience
(and lack of creativity). Durations and precedence requirements are shown in the table. Each of these
activities can be conveniently laddered into two sub-activities of equal duration. The first half of each
activity serves as the predecessor to its second half and the first half of the original following activity.
What is the expected completion time of the laddered project? (39 - 40)

Activity Length Predecessor
A 10 --
B 18 A
C 14 A
D 20 B, C
1. A) 34
2. B) 38
3. C) 42
4. D) 48
Answer: A
activities can be conveniently laddered into two sub-activities of equal duration. The first half of each
What is the expected completion time of the laddered project?

1. A) 34
2. B) 38
3. C) 42
4. D) 48
Answer: B
41) A gentleman farmer maniacally works on academic projects to raise funds for his true passion,
farming. He has identified seven tasks and developed three time estimates (all in days) of the next big
project on the farm, replacing the fence at the comedy pasture. Tasks, precedence requirements, and
time estimates are shown in the table. What is the expected completion time of the project? (41- 42)

Activity Optimistic time Most LikelyPessimistic time Predecessor

time
Corner Posts 4 5 6 --
String Line 7 8 9 --
Dig Holes 10 12 14 Corner Posts
Plant Posts 11 14 17 String Line
Weld Top Bar 8 11 14 String Line
Paint 9 11 13 Dig Holes, Plant Posts
Tack Wire 9 12 16 Weld Top Bar
1. A) 32 days
2. B) 33 days
3. C) 34 days
4. D) 35 days
Answer: B
time estimates are shown in the table. What is the standard deviation of the project's critical path?
1. A) 1.33 days
2. B) 1.56 days
3. C) 1.25 days
4. D) 1.75 days
Answer: B
49) Use the values in the table to calculate activity durations and variances for the project. Which path
is critical? How closely should the other path be watched and why?

Activity Predecessor Optimistic Likely Pessimistic
A -- 4 6 10
B A 2 5 8
C A 6 7 9
D B 3 9 20
E C 7 9 11
F D,E 7 11 19
Answer: The critical path is ACEF at 34.17 days and path ABDF has duration of 32.83 days. The
path variances are ACEF=5.69 and ABDF=14.02, resulting in standard deviations of 2.39 and 3.75
days, respectively. The higher variability associated with the non-critical path is cause for concern; it
will take a movement of only one standard deviation above the mean for the non-critical path to
become critical.
50) Use the values in the table to calculate activity durations and variances for the project. Which path
is critical? How closely should the other path be watched and why?

A -- 5 7 10
B A 4 6 9
C A 10 13 18
D B 8 11 15
E C, D 2 3 5
Answer: The estimated activity lengths and variances appear in the table below.

Optimistic time Most LikelyPessimistic time Activity time Standard Variance

time Deviation
A 5 7 10 7.17 0.83 0.69
B 4 6 9 6.17 0.83 0.69
C 10 13 18 13.33 1.33 1.78
D 8 11 15 11.17 1.17 1.36
E 2 3 5 3.17 0.5 0.25

The critical path is ABDE at 27.67 days and path ACE has duration of 23.67 days. The path variances
are ABDE=3 and ACE=2.72, resulting in standard deviations of 1.732 and 1.65 days, respectively.
The critical path is more highly variable and the only activity that is non-critical, activity C, has a
pessimistic time that if achieved, would make its path just slightly longer than the critical path if all of
its activities hit their expected time.
52) What is the earliest that Activity D can begin if Activity A takes 3 days, Activity B takes 5 days,
and Activity C takes 7 days?
1. A) Day 15
2. B) Day 7
3. C) Day 5
4. D) Day 3
Answer: B
53) What is the early start time for Activity D given the activity times and precedence requirements
shown in the table? (53 - 54)

Activity Time Predecessor
A 5 --
B 6 A
C 4 A
D 5 B, C
1. A) 7
2. B) 9
3. C) 11
4. D) 13
Answer: C
54) What is the late start time for Activity B given the activity times and precedence requirements
shown in the table?

1. A) 11
2. B) 9
3. C) 7
4. D) 5
Answer: D
55) What is the late start time for Activity E given the activity times and precedence requirements
shown in the table? (55 - 58 )

A 5 --
B 7 --
C 8 A
D 7 A
E 4 B
F 8 C, D
G 9 E, F
H 7 G
1. A) 14
2. B) 15
3. C) 16
4. D) 17
Answer: D
56) What is the late finish time for Activity D given the activity times and precedence requirements
shown in the table?
1. A) 14
2. B) 13
3. C) 12
4. D) 11
Answer: B
57) What is the early start time for Activity G given the activity times and precedence requirements
shown in the table?
1. A) 22
2. B) 21
3. C) 20
4. D) 19
Answer: B
58) What is the early finish time for Activity F given the activity times and precedence requirements
shown in the table?
1. A) 15
2. B) 17
3. C) 19
4. D) 21
Answer: D
59) Use the information in the table to determine the late start time for Activity E. (59 - 67)

Task Predecessor Duration Early Start Early Finish Late Start Late Finish
A -- 8
B A 14
C A 23 8
D C, B 6 23 26
E C 32
F D, E 32 38
1. A) Day 23
2. B) Day 26
3. C) Day 32
4. D) Day 17
Answer: A
60) Use the information in the table to determine the early start time for Activity B.
1. A) Day 10
2. B) Day 8
3. C) Day 9
4. D) Day 11
Answer: B
61) Use the information in the table to determine the early finish time for Activity D.
1. A) Day 23
2. B) Day 26
3. C) Day 29
4. D) Day 32
Answer: C
62) Use the information in the table to determine the late finish time for Activity B.

1. A) Day 17
2. B) Day 20
3. C) Day 23
4. D) Day 26
Answer: D
63) Use the network diagram and activity lengths in the nodes to determine the early start time for
activity D.
1. A) 8
2. B) 13
3. C) 14
4. D) 21
Answer: C
64) Use the network diagram and activity lengths in the nodes to determine the late start time for
activity F.
1. A) 21
2. B) 24
3. C) 26
4. D) 23
Answer: D
65) Use the network diagram and activity lengths in the nodes to determine the early finish time for
activity G.
1. A) 26
2. B) 25
3. C) 24
4. D) 23
Answer: A
66) Use the network diagram and activity lengths in the nodes to determine the late finish time for
activity C.
1. A) 12
2. B) 13
3. C) 14
4. D) 15
Answer: C
67) Use the network diagram and activity lengths in the nodes to determine the early start time for
activity D.
1. A) 8
2. B) 13
3. C) 14
4. D) 21
Answer: C
activities can be conveniently laddered into two sub-activities of equal duration, so activity C in the
original project becomes two activities, C1 and C2, each of which lasts 7 days. The first half of each
What is the difference in the late start time for activity C in the original project and activity C1 in the
laddered project?

Activity Length Predecessor
A 10 --
B 18 A
C 14 A
D 20 B, C
1. A) 3
2. B) 5
3. C) 7
4. D) 9
Answer: C
time estimates are shown in the table. What is the late finish for the Plant Posts activity?


time
13. A) 13.3 days

14. B) 8 days
15. C) 20.83 days
16. D) 22 days
Answer: D
70) A project has the precedence requirements and activity durations shown in the table. After he
draws the network, the project manager decides that activities B, C, and D can be represented by a
hammock activity. What are the early start and late finish times associated with this hammock
activity? (70 - 71)

Time Predecessor
A 7
B 8 A
C 13 B
D 8 C
E 7 A
F 6 E
G 6 A
H 11 G
I 12 H
J 14 D, F, I
1. A) 11, 30
2. B) 7, 24
3. C) 11, 24
4. D) 7, 36
Answer: D
draws the network, the project manager decides that activities H and I can be represented by a
hammock activity. What are the early start and late finish times associated with this hammock
activity?
1. A) 13, 36
2. B) 13, 24
3. C) 24, 36
4. D) 7, 36
Answer: A
72) Construct a network using the information in the table and identify the critical path.

A 4
B 6 A
C 9 A
D 11 B
E 16 B, C
F 4 D
G 8 E, F
H 7 G
Answer: The network appears below; critical path is ACEGH. Early and late start and finish times are
in the table below the network.

Task Early Start Early Finish Late Start Late Finish
A 0 4 0 4
B 4 10 7 13
C 4 13 4 13
D 10 21 14 25
E 13 29 13 29
F 21 25 25 29
G 29 37 29 37
H 37 44 37 44
73) Compute early and late start and finish times for the network shown.

Answer: Early and late start and finish times are given in the table.

A 0 6 0 6
B 6 11 16 21
C 18 27 21 30
D 6 10 14 18
E 18 30 18 30
F 6 18 6 18
G 30 38 30 38
74) Use the information in the table to sketch the network and compute early and late start times.

A 8
B 4 A
C 5 B, F
D 12 A
E 8 D
F 4 D
G 9 E, F
H 12 G
I 6 C, G
J 5 I
K 9 H
L 12 J, K
Answer: The early and late start times are shown in the table and the network is below:

A 0 8 0 8
B 8 12 38 42
C 24 29 42 47
D 8 20 8 20
E 20 28 20 28
F 20 24 24 28
G 28 37 28 37
H 37 49 37 49
I 37 43 47 53
J 43 48 53 58
K 49 58 49 58
L 58 70 58 70
75) Use the information in the table to sketch the network and compute early and late start times.

A 8
B 4 A
C 5 B, F
D 12 A
E 8 D
F 4 D
G 9 E, F
Answer: The early and late start times are shown in the table and the network is below:

Activity Activity time Early Start Early Finish Late Start Late Finish Slack
A 5 0 5 0 5 0
B 7 5 12 21 28 16
C 8 5 13 5 13 0
D 4 12 16 28 32 16
E 11 13 24 13 24 0
F 8 24 32 24 32 0
G 14 32 46 32 46 0

76) Phoebe B. Beebee is constructing a canal for the annual canoe races and has identified eleven
activities that are required to complete this important project. She calculated early and late start times
and early and late finish times but spilled coffee all over her printout. Use the remaining information
to reconstruct the table for Phoebe B. Beebee and her new canoe canal.

Activity Predecessor Length Early Start Late Start Early Finish Late Finish
A -- 12
B A 20
C A
D B, E 42
E C 28 42
F E 42 50
G D 53 53
H G 70
I G 72
J F 4
K H, I, J 81 91
Answer: The completed table appears below:

Task Predecessor Length Early Start Late Start Early Finish Late Finish
A -- 12 0 0 12 12
B A 20 12 22 32 42
C A 16 12 12 28 28
D B, E 11 42 42 53 53
E C 14 28 28 42 42
F E 8 42 69 50 77
G D 17 53 53 70 70
H G 11 70 72 81 81
I G 9 70 72 79 81
J F 4 50 77 54 81
K H, I, J 10 81 81 91 91
77) The amount of time an activity may be delayed from its early start without delaying the finish of
the project is the:
1. A) Delay.
2. B) Float.
3. C) Late start.
4. D) Late finish.
Answer: B
78) The least amount of float is found:
1. A) In a resource-limited schedule.
2. B) After a burst activity.
3. C) On the critical path.
4. D) After a merge activity.
Answer: C
79) What is the slack time for Activity B given the activity times and precedence requirements shown
in the table? (79 - 80)

A 5 --
B 7 --
C 8 A
D 7 A
E 4 B
F 8 C, D
G 9 E, F
H 7 G
1. A) 10
2. B) 9
3. C) 8
4. D) 7
Answer: A
80) What is the slack time for Activity D given the activity times and precedence requirements shown
in the table?
1. A) 2
2. B) 1
3. C) 0
4. D) 3
Answer: B

A 5 --
B 7 A
C 5 A
D 7 B, C
1. A) 1
2. B) 2
3. C) 3
4. D) 4
Answer: B
82) Use the information in the table to determine the slack time for Activity B. (82 -83)

A -- 8
B A 14
C A 23 8
D C, B 6 23 26
E C 32
F D, E 32 38
1. A) 6 days
2. B) 4 days
3. C) 2 days
4. D) 0 days
Answer: A
83) What is the slack time for activity E?
1. A) 0 days
2. B) 1 day
3. C) 2 days
4. D) 4 days
Answer: A
84) Use the network diagram and activity lengths in the nodes to determine the slack time for activity
D.
1. A) 3
2. B) 2
3. C) 1
4. D) 0
Answer: D
85) Float is always measured in exactly the same way as slack.
Answer: TRUE
86) Negative float exists when a project's critical path has been completed more quickly than
anticipated.
Answer: TRUE
87) Activity float is the difference between the late finish and early finish for the activity in question.
Answer: TRUE
88) An MBA student laboriously calculated the early and late start times and early and late finish
times for all of the activities contained in this simple six activity project. Unfortunately, some of the
information was washed away by lachrymal fluid. Kindly restore the table to its former glory by
filling in the missing information.

A -- 8
B A 14
C A 23 8
D C, B 6 23 26
E C 32
F D, E 32 38

Answer:
A -- 8 0 8 0 8
B A 12 8 20 14 26
C A 15 8 23 8 23
D C, B 6 23 29 26 32
E C 9 23 32 23 32
F D, E 6 32 38 32 38
time estimates are shown in the table. What is the probability that the project is completed in 31 days?
(89 - 90)

time
1. A) 0.055
2. B) 0.092
3. C) 0.125
4. D) 0.187
Answer: A
time estimates are shown in the table. What is the probability that the project takes more than 34
days?
1. A) 0.788
2. B) 0.212
3. C) 0.945
4. D) 0.055
Answer: B
91) The PERT technique assumes that durations are more deterministic.
Answer: FALSE
92) Use the values in the table to calculate activity durations and variances for the project. What is the
likelihood of finishing this project within 47 days?

A -- 5 8 11
B A 15 20 25
C A 7 9 12
D A 12 16 20
E B, D 8 11 15
F C 13 17 22
G CE, F 8 9 10
Answer: The estimated activity lengths and variances appear in the table below.

Activity Activity Early Early Finish Late Start Late Finish Slack Standard
time Start Deviation
A 8 0 8 0 8 0 1
B 20 8 28 8 28 0 1.67
C 9.17 8 17.17 12.83 22 4.83 0.83
D 16 8 24 12 28 4 1.33
E 11.17 28 39.17 28 39.17 0 1.17
F 17.17 17.17 34.33 22 39.17 4.83 1.5
G 9 39.17 48.17 39.17 48.17 0 0.33
Project 48.17 2.29

Using only the critical path values of 48.17 for the mean and 2.29 for the standard deviation, the
likelihood of finishing with 47 days is 0.304.
likelihood that the project takes between 60 and 55 days to complete? (93 - 94)

Activity Activity time Standard deviation Predecessor
A 12 3
B 8 2 A
C 9 1 A
D 5 1 B
E 12 0 B
F 10 0 C
G 7 2 C
H 9 3 E, G
I 15 2 D, G
J 8 2 H
K 11 3 I
L 7 2 J, K
Answer: The critical path is ACGIKL and has an expected duration of 61 days with a standard
deviation of 5.57 days. The likelihood of finishing within 55 days is 0.1406 and the likelihood of
finishing within 60 days is 0.4287. The difference between the two is 0.2881.
project deadline such that there is a 75% chance it is completed on time?
Answer: The critical path is ACGIKL and has an expected duration of 61 days with a standard
deviation of 5.57 days. A 75% likelihood of completion is achieved at 0.67448975 standard deviations
above the mean. Multiplying this value times the standard deviation of 5.57 days results in a value
3.75 days above the mean, which would be a goal of 64.7549 days.
95) Activities C, D, and E in the project represented by the network are to be ham mocked. What are
the late start and early finish times of the hammock activity?
1. A) 6, 24
2. B) 6, 26
3. C) 8, 24
4. D) 8, 26
Answer: C
draws the network, the project manager decides to represent a few activities by a hammock activity.
Which is a legitimate hammock activity for this project?

Time Predecessor
A 7
B 8 A
C 13 A
D 8 A
E 7 B
F 6 C
G 6 D
H 11 E
I 12 G
J 14 H, F, I
1. A) Combine activities A, B, C
2. B) Combine activities B, E, H
3. C) Combine activities E, F
4. D) Combine activities G, H, I
Answer: B
draws the network, the project manager decides that activities E and F can be represented by a
hammock activity. What are the duration and the early start time associated with this hammock
activity?

Time Predecessor
A 7
B 8 A
C 13 B
D 8 C
E 7 A
F 6 E
G 6 A
H 11 G
I 12 H
J 14 D, F, I
1. A) 13, 36
2. B) 7, 0
3. C) 13, 7
4. D) 7, 14
Answer: C
98) One approach to reducing project length would be to:
1. A) Convert parallel paths to be serial.

2. B) Convert merge activities to burst activities.
3. C) Use hammock activities in place of multiple activities.
4. D) Eliminate tasks on the critical path.
Answer: D
99) A project's duration can be reduced by:
1. A) Shortening the duration of critical path tasks.

2. B) Adding tasks to the critical path.
3. C) Adding shorter routes around the critical path.
4. D) Completing the backward pass first.
Answer: A
100) The BEST candidate activities for shortening the overall project are:
1. A) The shortest tasks.

2. B) The longest tasks.
3. C) The merge tasks.
4. D) The burst tasks.
Answer: B
101) Which technique would accelerate the completion of a project?
1. A) Hammocking
2. B) Bursting
3. C) Laddering
4. D) Passing
Answer: C
102) In order to reduce the length of a project, it would be wise to shorten:
1. A) The project activity that costs the least to speed up.

2. B) The project activity that can be speeded up by the greatest amount.
3. C) The critical path activity that can be speeded up by the greatest amount.
4. D) The critical path activity that costs the least to speed up.
Answer: D
103) In general, the better candidates for shortening are:
1. A) Early tasks opposed to later tasks.

2. B) Later tasks opposed to early tasks.
3. C) Merge tasks opposed to burst tasks.
4. D) Burst tasks opposed to merge tasks.
Answer: A
Chapter 10 Project Scheduling: Lagging, Crashing, and Activity Networks

1) The most common type of logical sequencing between tasks is referred to as the:
1. A) Finish to start relationship.
2. B) Finish to finish relationship.
3. C) Start to start relationship.
4. D) Start to finish relationship.
Answer: A
2) A finish to start lag delay is usually shown:
1. A) As an added value in the predecessor's activity time.

2. B) On the line adjoining the two activity nodes.
3. C) As an added value in the predecessors early start time.
4. D) As a subtracted value in the follower's early finish time.
Answer: B
3) Activities A and B have a finish to finish relationship and early start and finish times as shown.
What is the result of incorporating a 4-day lag between activities C and B?
31. A) The early finish for A increases to 31.

32. B) The early start time for A increases to 24.
33. C) The early finish time for B increases to 31.
34. D) The early start time for D falls to 23.
Answer: C
4) What is the early start time for activity C if it has the start to start relationship shown?
1. A) Day 20
2. B) Day 25
3. C) Day 27
4. D) Day 29
Answer: D
5) Activity X has the start to finish relationship shown with activity Y and both have early start and
finish times as shown. Which statement is BEST?
1. A) a < d
2. B) a < c
3. C) b < c
4. D) d < a
Answer: A
9) Which statement about this Gantt chart is BEST?
10. A) Activity a has a duration that could be as short as 1 day and as long as 10.
11. B) Activity b probably has activity a as a predecessor.
12. C) No progress has been made on activity c.
13. D) Activity d is the longest activity.
Answer: B
10) Consider the Gantt chart shown below where the time scale is in minutes and all activities are
performed on an early start basis. How much slack is available in The Great Hair Washing project?
(10 - 14)
1. A) 10 minutes
2. B) 15 minutes
3. C) 0 minutes
4. D) 5 minutes
Answer: C
11) Use the Gantt chart and the activity list to determine when resource 5 is free.
1. A) Between 0 and 15
2. B) Between 15 and 30
3. C) Between 30 and 45
4. D) Between 45 and 60
Answer: D
12) Use the Gantt chart and the activity list to determine when resource 2 is free.
Answer: A
13) Use the Gantt chart and the activity list to determine which resource is used the least.
1. A) Resource 1
2. B) Resource 3
3. C) Resource 4
4. D) Resource 2
Answer: B
14) Use the Gantt chart and the activity list to determine which resource is used the most.
1. A) Resource 4
2. B) Resource 3
3. C) Resource 1
4. D) Resource 2
Answer: C
15) Use the Gantt chart and the activity list to determine which resource is free for use in another
project before the others. (15 - 16)

Activity Resources Activity Resources
A 1 F 2
B 3 G 3
C 4 H 4
D 2 J 5
E 2 K 1
1. A) Resource 4
2. B) Resource 3
3. C) Resource 1
4. D) Resource 2
Answer: D
16) Use the Gantt chart and the activity list to determine which resource is needed earliest in this
project.
1. A) Resource 2
2. B) Resource 3
3. C) Resource 1
4. D) Resource 4
Answer: A
17) Use the Gantt chart and activity list to determine when resource 3 is free. (17 - 21)

R 3 M 1
H 1 K 5
G 4 J 3
F 2 P 1
B 2 S 2
T 4 W 3
Answer: B
18) Use the Gantt chart and activity list to determine which resource has the greatest continual use.
1. A) Resource 3
2. B) Resource 1
3. C) Resource 2
4. D) Resource 4
Answer: C
19) Use the Gantt chart and activity list to determine which resource has the greatest continual use.
1. A) Resource 4
2. B) Resource 2
3. C) Resource 3
4. D) Resource 5
Answer: D
20) Use the Gantt chart and activity list to determine which resource is used the least.
1. A) Resource 1
2. B) Resource 2
3. C) Resource 4
4. D) Resource 5
Answer: A
21) Use the Gantt chart and activity list to determine which resource is used the most.
1. A) Resource 1
2. B) Resource 2
3. C) Resource 4
4. D) Resource 5
Answer: B
22) Use the Gantt chart and activity list to determine which resource is used the most. (22 - 24)
R 3, 5 M 1, 2
H 1 K 4
G 2,5 J 3
F 4, 1 P 1
B 2 S 3, 4
T 4 W 3
1. A) Resource 4
2. B) Resource 2
3. C) Resource 1
4. D) Resource 5
Answer: C
23) Use the Gantt chart and activity list to determine which resource is used the least.
1. A) Resource 4
2. B) Resource 2
3. C) Resource 1
4. D) Resource 3
Answer: D
24) Use the Gantt chart and activity list to determine which resource is released from this project for
use in another project the earliest.
1. A) Resource 2
2. B) Resource 4
3. C) Resource 1
4. D) Resource 3
Answer: A
25) A basic Gantt chart:
1. A) Clearly displays early and late start and finish times for all activities.
2. B) Cannot be used to track the project's progress.
3. C) Permits scheduling resources well before they are needed.
4. D) Shows dummy activities to preserve network logic.
Answer: C
26) Gantt charts cannot depict float.
Answer: FALSE
27) Gantt charts can display early start or late start logic.
Answer: TRUE
29) Use the information in the table to create a baseline Gantt chart for the project where activity
lengths are given in days.
Activity Duration Predecessor
A 6 --
B 3 A
C 7 A
D 5 B
E 10 C
F 8 D, E
G 6 F
H 4 G
J 10 G
K 5 H, J
Answer:
31) The process of accelerating a project is referred to as:
1. A) Streamlining.
2. B) Expediting.
3. C) Rushing.
4. D) Crashing.
Answer: D
32) One reason for crashing a project is:
1. A) The project has slipped behind schedule.

2. B) That the initial schedule may be too pessimistic.
3. C) Market needs change and the project is not in demand any more.
4. D) There are no repercussions for delivering the project late.
Answer: A
33) Which of these approaches will NOT accelerate the completion of a project?
1. A) Improve the productivity of existing project resources.

2. B) Increase the bureaucratic oversight.
3. C) Improve the working method.
4. D) Increase the quantity of personnel and equipment.
Answer: B
38) If an activity's cost is plotted against its duration on axes with zeros at the origin:
1. A) The slope of the line is positive because it costs more to finish an activity more quickly.
2. B) The slope of the line is negative because a shorter activity costs less than a longer one.
3. C) The slope of the line is negative because it costs more to finish an activity more quickly.
4. D) The slope of the line is positive because a longer activity costs more than a shorter one.
Answer: C
39) The most common method for shortening activity durations involves the decision to:
1. A) Eliminate bureaucracy.
2. B) Alter the technology used in the activity.
3. C) Assign more senior personnel to the activity.
4. D) Increase project resources.
Answer: D
40) An activity performed by a subcontractor is scheduled for 20 weeks at an anticipated cost of
$100,000. Due to slippage on the critical path you need to reduce this activity by three weeks. If the
subcontractor informs you that the activity can be completed in 16 weeks for $200,000, what is the
slope for the activity?
1. A) $5,000 per week

2. B) $33,333 per week
3. C) $25,000 per week
4. D) $12,500 per week
Answer: C
41) Given the cost information in the table, what is the cheapest activity to crash on a per week basis?

Activity Normal Time Normal Cost Crash Time Crash Cost
A 8 $1,000 5 $6,000
B 6 2,000 4 6,000
C 9 2,500 6 8,000
D 12 4,000 8 10,000
1. A) Activity A
2. B) Activity B
3. C) Activity C
4. D) Activity D
Answer: A
42) Use the information in the table (all times are in days) to determine the lowest cost minimum
completion time if the base cost for each activity finished in normal time is $1,000. (42 - 45)

Activity Normal Time Minimum Time Crash Cost ($/day) Predecessor
A 10 6 $70 --
B 6 3 $40 --
C 2 2 -- B
D 4 2 $60 C
E 6 4 $80 A
F 8 5 $90 D, E
1. A) $7,120
2. B) $6,910
3. C) $6,790
4. D) $6,830
Answer: C
43) Use the information in the table (all times are in days) to determine the lowest total cost for a 20-
day project if the base cost for each activity finished in normal time is $1,000.
1. A) $6,280
2. B) $6,390
3. C) $6,530
4. D) $6,740
Answer: A
44) Use the information in the table (all times are in days) to determine the lowest extra cost for an
18-day project if the base cost for each activity finished in normal time is $1,000.
1. A) $400
2. B) $420
3. C) $440
4. D) $460
Answer: D
45) It costs $75 per day for each day that a construction crew is on site. The project manager
determines that most activities can be crashed and has listed the crashing costs next to the minimum
time for each activity. Use this information to determine the lowest cost for this project. All times
given are in days.
1. A) $1,720
2. B) $1,750
3. C) $1,780
4. D) $1,810
Answer: C
46) A project has the activity duration and cost information indicated in the table where all times are
in weeks. What is the total cost for completing this project in 40 days? (46 - 50)

Activity Predecessor Normal Time Normal Cost Crash Time Crash Cost
A -- 8 $12,000 5 $22,000
B A 12 $18,000 9 $32,000
C A 15 $22,000 9 $62,000
D B 3 $9,000 2 $18,000
E C 9 $15,000 5 $35,000
F E 7 $5,000 5 $8,000
G D 8 $13,000 6 $23,000
H A 12 $20,000 8 $32,000
J H 6 $45,000 4 $56,000
1. A) $172,000
2. B) $218,000
3. C) $192,000
4. D) $159,000
Answer: A
in weeks. What is the lowest total cost for completing this project in 35 days?
1. A) $211,500
2. B) $197,500
3. C) $203,500
4. D) $194,500
Answer: B
in weeks. There is a penalty of $4,000 per week for every week the project exceeds 37 weeks. What is
the lowest total cost for completing this project?
1. A) $172,000
2. B) $184,000
3. C) $187,000
4. D) $192,500
Answer: B
in weeks. There is a penalty of $6,000 per week for every week the project extends beyond 25 weeks.
What is the lowest total cost duration for completing this project?
1. A) 34 weeks
2. B) 36 weeks
3. C) 40 weeks
4. D) 43 weeks
Answer: A
in weeks. What is the total cost for completing this project as quickly as possible?
1. A) $244,000
2. B) $255,60
3. C) $258,333
4. D) $262,000
Answer: D
in weeks. There is a penalty of $250 per week for every week the project extends beyond 32 weeks.
What is the duration of the least expensive project possible? (51 – 54)

Activity Normal time Crash time Normal Cost Crash Cost Predecessor
A 8 5 $1,000 2,000
B 6 4 1,500 2,000 A
C 8 5 1,800 2,300 A
D 12 9 1,000 1,800 B
E 14 11 950 1,450 B
F 9 7 1,500 1,900 C, D
G 7 5 2,300 2,800 E, F
1. A) 38 weeks
2. B) 37 weeks
3. C) 36 weeks
4. D) 35 weeks
Answer: B
in weeks. There is a penalty of $250 per week for every week the project extends beyond 32 weeks.
What is the cost of the least expensive project possible?
1. A) $11,450
2. B) $12,450
3. C) $13,450.
4. D) $14,450
Answer: B
in weeks. What is the lowest total cost for completing this project in 33 weeks?
1. A) $11,250
2. B) $11,500
3. C) $12,250
4. D) $12,500
Answer: C
in weeks. For every week longer than 30 weeks, there is a penalty of $300. What is the highest total
cost for completing this project?
1. A) $14,250
2. B) $13,950
3. C) $13,550
4. D) $13,150
59) What is the cost to finish this project (all activity durations are in weeks and costs in US dollars)
as quickly as possible?

Activity Predecessor Normal Time Minimum Time Normal Cost Crash Cost
A 12 10 1000 1500
B A 5 3 1200 1950
C A 9 7 1500 2100
D B, C 14 10 1800 2100
E B 4 3 1400 1875
F D 9 8 1000 1450
G E 7 5 700 1200
H F, G 11 8 2000 3000
I H 8 6 1100 1700
Answer: The initial project duration is 63 weeks thanks to the valuable contributions of path
ACDFHI. Path ABEGHI is 47 weeks and path ABDFHI is 59 weeks long. The base project cost is
$11,700.
Purchases from least expensive to most expensive are as follows:
Activity D reduced 4 days for $300
Activity A reduced 2 days for $500
Activity C reduced 2 days for $600
Activity I reduced 2 days for $600
Activity H reduced 3 days for $1,000
Activity F reduced 1 day for $450
The new project length is 49 days with path lengths of ACDFHI=49; ABEGHI=40; and ABDFHI=45.
The total project cost is now $15,150.
in weeks. What is the lowest total cost for completing this project in 33 weeks?

A 8 5 $1,000 2,000
B 6 4 1,500 2,000 A
C 8 5 1,800 2,300 A
D 12 9 1,000 1,800 B
E 14 11 950 1,450 B
F 9 7 1,500 1,900 C, D
G 7 5 2,300 2,800 E, F
Answer: $12,250 is the least expensive 33 week project. The uncrushed duration is 42 weeks at a cost
of $10,050 for activities. The least expensive activities on a per week basis are F ($200), B ($250), G
($250), and D ($266.67). It is possible to reduce the project by 2 weeks each by crashing F, B, and G,
which would make a 36 week project. Activity D can be reduced by three weeks at the
aforementioned cost. Take the Crash cost prices for activities FBGD and the normal cost prices for
ACE for a total of $12,250.
63) What is the minimum cost completion time for this project if the activities have normal and crash
costs as indicated and there is a $1,000 fixed cost for each day on site plus a $500 penalty for each
activity that is crashed? The crash costs represent the cost of a fully expedited activity. For example,
reducing activity Y from 13 days to 12 days costs an extra $100 on top of the $500 expediting cost for
a total cost of $2,600. Reducing Y from 13 days to 10 days costs an extra $300 on top of the $500
expediting cost, for a total activity cost of $2,800.

Activity Predecessor Normal Time Normal Cost Crash Time Crash Cost
Z 2 $2,000 2 $2,000
Y 13 $2,000 10 $2,300
X 19 $2,000 15 $3,000
W Z 18 $2,000 15 $3,000
V X 10 $2,000 9 $3,000
U Y 13 $2,000 11 $3,000
T W 18 $2,000 14 $4,000
S V 4 $2,000 3 $3,000
R U 6 $2,000 5 $3,000
Q R, S 15 $2,000 13 $3,000
P T 13 $2,000 12 $3,000
N P, Q 4 $2,000 4 $2,000
Answer: The project before any expediting takes 55 days thanks to path ZWTPN. Path XVSQN has a
52-day duration and path YURQN has a 51-day duration. The initial cost of the project is $24,000 for
the uncrashed activities plus $55,000 for the fixed cost for a total cost of $79,000.
Crashing should take place in this sequence:
1st: Reduce activity W by 3 days. This costs $1,000 plus the $500 expediting charge but trims three
days off the fixed cost saving $3,000 for a net savings of $1,500.
The project is now 52 days thanks to path ZWTPN and XVSQN at a cost of $77,500. Any further
action may reduce the project length but will increase the project's cost. Crashing activity T by one
day and activity X by one day adds $1,750 to the cost column and saves only $1,000 for a net cost of
$750.
64) The heir to the throne was due 56 days from now and the first-time father had a serious
construction project on his hands converting his man cave into a nursery. The seven activities, their
normal and expedited times (in days) and costs appear in the table. What is the minimum cost to
ensure that this project is completed in 56 days? Which activities should be reduced and by how many
days? (64 -65)

A 5 3 500 1100
B 18 15 900 2300 A
C 12 9 2500 3000 A
D 9 7 500 650 B
E 15 12 3000 5000 B
F 12 10 4000 5000 C, D
G 20 15 3600 4800 E, F
Answer: The project before any expediting takes 64 days. The activities that should be expedited are
D, for 2 days at $75/day; G for 5 days at $240/days; and A for 1 day at $300/day. The total cost to
expedite is $1,650 in addition to the normal cost of $15,000.
65) The heir to the throne was due 60 days from now and the first-time father had a serious
construction project on his hands converting his man cave into a nursery. The seven activities, their
normal and expedited times (in days) and costs appear in the table. Just to be on the safe side, he
decided to bring the project in at 53 days in case the delivery was a week early. Tell him what the
least expensive 53-day project is; which activities should be reduced in duration, by how many days,
and at the total cost, so he can roll up the sleeves on his "World's Greatest Dad" sweatshirt, and get to
work.
Answer: The project before any expediting takes 64 days. The activities that should be expedited are
D, for 2 days at $75/day; G for 5 days at $240/days; and A for 2 days at $300/day, and B for 2 days at
$466.67/day. The total cost to expedite is $2,883.33 in addition to the normal cost of $15,000, for a
total tab of $17,883.33 plus a lifetime of disappointment and shame.
66) An activity on an arrow network:
1. A) Cannot have more arrows than nodes.

2. B) Cannot have more nodes than arrows.
3. C) Has one more node than arrows.
4. D) Has one more arrow than nodes.
Answer: A
67) The AOA network described by this table needs:

Activity Predecessor
A --
B --
C A, B
D B
E C, D
1. A) Zero dummy activities.

2. B) One dummy activity.
3. C) Two dummy activities.
4. D) Three dummy activities.
Answer: B
68) The AOA network described by this table needs:

A --
B --
C A
D A, B
E C
F C, D
1. A) Zero dummy activities.

2. B) One dummy activity.
3. C) Two dummy activities.
4. D) Three dummy activities.
Answer: C
69) What information is NOT included in the nodes for an AOA network?
1. A) Label
2. B) Early start time
3. C) Late finish time
4. D) Early finish time
Answer: D
70) Dummy activities have a duration equal to the:
1. A) Slack on the critical path.

2. B) Length of the predecessor.
3. C) Length of the successor.
4. D) Lag needed to preserve network logic.
Answer: A
71) The critical path of this network is:
14. A) 14.
15. B) 15.
16. C) 12.
17. D) 13.
Answer: B
72) The fastest completion time for this project is:
14. A) 14.
15. B) 15.
16. C) 16.
17. D) 17.
Answer: C
73) What is the late finish for activity D in the network shown in the diagram?
1. A) 15
2. B) 16
3. C) 17
4. D) 18
Answer: D
74) Which of the activities in the diagram have slack?
1. A) C and D
2. B) B and D
3. C) C and E
4. D) B and E
Answer: B
75) What is the duration of the project shown in the network?
1. A) 36
2. B) 37
3. C) 38
4. D) 39
Answer: C
76) An AOA network:
1. A) Cannot show a merge activity.

2. B) Cannot show a burst activity.
3. C) Cannot have consecutive merge and burst activities.
4. D) Can have all of the features described in A-C above.
Answer: D
77) AOA networks have an advantage over AON networks:
1. A) If the project is complex.

2. B) Because they are easier to read for novices.
3. C) When it comes to software packages for project management.
4. D) When the task of network labeling is considered.
Answer: A
78) AON networks have an advantage over AOA networks:
1. A) If the project under study is complex.

2. B) Because they don't need dummy activities.
3. C) In the construction industry because they are the norm.
4. D) When it is critical to highlight milestones.
Answer: B
82) Sketch the network described in the table in AOA format. (82 - 85)

A --
B A
C A
D B
E B, C
F D
G D
H F, G
K G
L H, K
Answer:

Activity Activity time Early Start Early Finish Late Start Late Finish
A 6 0 6 0 6
B 8 0 8 1 9
C 5 6 11 24 29
D 9 8 17 9 18
E 12 6 18 6 18
F 11 18 29 18 29
G 6 29 35 29 35
H 3 35 38 35 38
83) Determine early start and early finish times for all activities in this network. Activity duration in
days appears under each arrow.
Answer: Early start and early finish times for all activities appear in the table.
84) Mick has a project consisting of eight activities (listed in the table with durations and precedence
requirements) to complete. He assigned his intern Guinness to sketch a network diagram in AOA and
Guinness produced the sketch shown below. Discuss any issues with the apprentice's diagram.
Answer: There is a need for only one dummy activity, in order to distinguish between tasks requiring
A and the only task requiring both A and B.
85) Mick has a project consisting of eight activities as listed in the table (with durations in days). He
assigned his intern Guinness to sketch a network diagram in AOA and Guinness produced the sketch
shown below. Determine the early and late start and finish times for all of these activities. (refer to the
table above ).
86) The BEST approach to network representation of a large and hugely complex project is to:
1. A) Represent all activities and relationships.

2. B) Simplify network logic and reduce it to the most meaningful relationships.
3. C) Use AOA.
4. D) Use AON.
Answer: B
87) A complex project that is managed using a top-down, bottom-up approach to network diagrams
means that:
1. A) Management's top-down portion of the network contains the greatest detail.

2. B) Top management does not have a basis for understanding the actual development of the
project.
3. C) The top tier summary network does not give top management the basis for understanding the
actual development of the project.
4. D) The bottom level information cannot be understood by those performing the actual work.
Answer: C
88) Networks would NOT be well suited for:
1. A) Planning a construction project.

2. B) Planning a wedding.
3. C) Planning a software upgrade.
4. D) Planning monthly production.
Answer: D
89) When involved in a project involving many subcontractors:
1. A) It is imperative that the network is a mutually accessible document.

2. B) One subcontractor's network diagram should never be shown to another for ethical reasons.
3. C) PERT/CPM should not be used.
4. D) It is illegal to reveal one subcontractor's plan to another.
Answer: A
90) Research has shown that, in general:
1. A) There is a tendency to underestimate activity lengths.

2. B) There is a tendency to overestimate activity lengths.
3. C) The activity lengths are estimated correctly.
4. D) The activity lengths are estimated correctly but the networks are drawn incorrectly.
Answer: B
Chapter 13 Project Evaluation and Control

1) The first step in the control cycle is:
1. A) Setting a goal.
2. B) Measuring progress.
3. C) Comparing actual with planned performance.
4. D) Taking action.
Answer: A
2) Project goal setting includes setting a baseline plan, which is predicated on:
1. A) The progress measurement.

2. B) An accurate work breakdown structure.
3. C) The type of gap analysis the project team plans to use.
4. D) The budget and schedule limitations.
Answer: B
3) Measurement mechanisms should include a clear definition of:
1. A) The project baseline.

2. B) The reporting relationships among members of the project team.
3. C) What to measure.
4. D) Trigger points.
Answer: C
4) A measurement process that determines the project goals and then the degree to which the actual
performance lives up to these goals is:
1. A) A metric system.
2. B) Goal-performance linkage.
3. C) Five degrees of separation.
4. D) Gap analysis.
Answer: D
5) If significant deviations from the project plan are detected, corrective action is taken and then:
1. A) The monitoring and control cycle begins anew.

2. B) Project goals are adjusted to reflect current reality.
3. C) The project stakeholders are informed of the budget or time difficulties.
4. D) The critical chain is reviewed for task dependency.
Answer: A
12) The classic project S-curve is a plot of:
1. A) Labour hours versus money expended.

2. B) Money expended versus elapsed time.
3. C) Elapsed time versus labour hours.
4. D) Number of personnel versus days behind schedule.
Answer: A
13) Use the S-curve to choose the BEST statement about the project it describes. The horizontal axis
is in weeks.
1. A) The total project costs in week 10 are less than budgeted.

2. B) The total project costs in week 10 exceed the budgeted cost.
3. C) The project cost more from weeks 25 through 30 than it did in weeks 10 through 15.
4. D) The total amount spent on the project at the end of the 20th week is approximately $30,000.
Answer: C
14) Use the S-curve to choose the BEST statement about the project it describes. The horizontal axis
is in weeks.
25. A) More time passes from weeks 5 to 10 than from weeks 20 to 25.
26. B) More time passes from $50,000 to $60,000 than from $5,000 to $10,000.
27. C) More money is spent from weeks 0 to 10 than from weeks 30 to 40.
28. D) The total amount spent on the project at the end of the 40th week is approximately $110,000.
Answer: D
15) Use the S-curve where the solid line is actual cost and the dashed line is budgeted cost to choose
the BEST statement.
12. A) The project is further ahead of budget from weeks 36 through 40 than from weeks 8 through
12.
13. B) The project never experiences negative variance.
14. C) The project is further behind budget from weeks 0 through 16 than from 24 through 40.
15. D) The project is in a constant state of positive variance.
Answer: A
16) Use the S-curve where the solid line is actual cost and the dashed line is budgeted cost to choose
the BEST statement.
1. A) The project never experiences negative variance.

2. B) With regards to budget, the project starts badly but finishes well
3. C) With regards to budget, the project starts well but finishes badly.
4. D) The project is in a constant state of positive variance.
Answer: B
17) A project manager that uses milestones as a project control device is using a:
1. A) Proactive control system.

2. B) Predictive control system.
3. C) Feedback control system.
4. D) Reactive control system.
Answer: D
18) An excellent way to coordinate schedules with vendors and suppliers is through the use of:
1. A) Milestones.
2. B) S-curves that plot expenditures against time.
3. C) S-curves that plot planned expenditures against time.
4. D) A tracking Gantt chart.
Answer: A
19) Milestones are generally considered to be:
1. A) Demotivators for the project team.

2. B) Key project review gates.
3. C) The end of the project for all team members except the project manager.
4. D) Points where two or more activities merge.
Answer: B
20) A tracking Gantt chart:
1. A) Monitors costs and budget expenditures.

2. B) Identifies key points in the project's progress.
3. C) Identifies the stage of completion for each task.
4. D) Identifies the performance to budget for the overall project by a certain date.
Answer: C
22) It is possible to measure:
1. A) Only positive deviations from the schedule baseline with a tracking Gantt chart.
2. B) Only negative deviations from the schedule baseline with a tracking Gantt chart.
3. C) Both positive and negative deviations from the schedule baseline with the tracking Gantt
chart.
4. D) Both positive and negative deviations from the budget with the tracking Gantt chart.
Answer: A
32) Earned value management is also known as:
1. A) The golden triangle method (GTM).

2. B) The achieved value method (AVM).
3. C) The program evaluation and review method (PERM).
4. D) Earned value analysis (EVA).
Answer: A
33) Earned value management jointly considers the impact of:
1. A) Time, cost, and planned cost.

2. B) Project performance, planned performance, and cost.
3. C) Performance, cost, and time.
4. D) Planned cost, planned performance, and time.
Answer: C
34) Which of these tools allows a project team to make future projections of project status based on its
current state?
1. A) Tracking Gantt chart

2. B) Milestone chart
3. C) S-curve
4. D) Earned value management
Answer: C
35) Take the factors considered by earned value analysis and subtract those considered by project S-
curves. The factor(s) you have remaining are:
1. A) Performance and cost.

2. B) Cost and schedule.
3. C) Time.
4. D) Performance.
Answer: D
36) Take the factors considered by earned value analysis and subtract those considered by tracking
Gantt charts. The factor(s) you have remaining are:
1. A) Cost.
2. B) Cost and schedule.
3. C) Schedule and performance.
4. D) Performance.
Answer: A
37) Planned value is:
1. A) The total budget for the project.

2. B) A cost estimate of the budgeted resources across the project's life cycle.
3. C) The real budgeted value of the work that has actually been performed to date.
4. D) The cumulative total costs incurred in accomplishing the various project work packages.
Answer: B
38) Earned value is:
1. A) The total budget for the project.

2. B) A cost estimate of the budgeted resources across the project's life cycle.
3. C) The real budgeted value of the work that has actually been performed to date.
4. D) The cumulative total costs incurred in accomplishing the various project work packages.
Answer: C
39) The earned value to date divided by the planned value of work scheduled to be performed is the:
1. A) Cost performance index.

2. B) Budgeted cost at completion index.
3. C) Budget efficiency index.
4. D) Schedule performance index.
Answer: D
40) The earned value divided by the actual, cumulative cost of the work to date is the:

2. B) Budgeted cost at completion index.
3. C) Budget efficiency index.
Answer: A
41) A project manager can calculate the projected schedule of the project to completion by using the:

2. B) Schedule performance index.
3. C) Budgeted cost at completion index.
4. D) Budget efficiency index.
Answer: B
42) A project manager can calculate the projected budget to completion by using the:
1. A) Budgeted cost at completion index.

2. B) Budget efficiency index.
3. C) Cost performance index.
Answer: C
43) The project baseline is established by combining data from the:
1. A) Work breakdown structure and the project budget.

2. B) Time-phased project budget and the PERT chart.
3. C) S-curve and the project budget.
4. D) Time-phased project budget and the work breakdown structure.
Answer: D
44) Use the data to calculate the earned value for the project. All amounts are in thousands of dollars.
1. A) $38,500
2. B) $43,250
3. C) $54,750
4. D) $100,000
Answer: A
1. A) $38,500
2. B) $46,550
3. C) $56,750
4. D) $61,125
Answer: B
1. A) $65,500
2. B) $69,550
3. C) $71,100
4. D) $76,125
Answer: C
47) At the end of week 20, this project has cost $79,000 and has an earned value as indicated in the
table. Use the data to calculate the cost performance index for the project. All amounts are in
thousands of dollars.
1. A) 1.11
2. B) 0.82
3. C) 0.94
4. D) 0.90
Answer: D
48) At the end of week 10, this project has cost $9,000 and has an earned value as indicated in the
table. Use the data to calculate the cost performance index for the project. All amounts are in
thousands of dollars.
2. A) 2.5
3. B) 2.1
4. C) 1.8
5. D) 1.5
Answer: A
49) Use the data to calculate the schedule performance index for the project for the end of week 20.
All amounts are in thousands of dollars.
1. A) 1.14
2. B) 0.88
3. C) 0.94
4. D) 0.81
Answer: B
50) Use the data to calculate the schedule performance index for the project for the end of week 10.
All amounts are in thousands of dollars.
1. A) 1.24
2. B) 0.93
3. C) 0.81
4. D) 0.76
Answer: C
51) The first step in earned value management is to:
1. A) Create the activity and resource usage schedules.

2. B) Develop a time-phased budget that shows expenditures across the project's life.
3. C) Total the actual costs of doing each task to arrive at the actual cost of work performed.
4. D) Clearly define each activity that will be performed including its resource needs and budget.
Answer: D
52) In earned value management analysis, the cumulative amount of the budget becomes the:
1. A) Planned value.
2. B) Scheduled value.
3. C) Cost basis.
4. D) Cost driver.
Answer: A
53) In earned value management, schedule variance is defined as:
1. A) The difference between the earned value and the actual cost.
2. B) The difference between the earned value and the planned value.
3. C) The difference between the actual cost and the planned value.
4. D) The difference between the cost and schedule performance indices multiplied by the budgeted
cost at completion.
Answer: B
54) The budget variance is calculated as:
1. A) Earned value minus planned value.

2. B) Planned value minus actual cost.
3. C) Earned value minus actual cost.
4. D) Cost minus planned value.
Answer: C
55) Use the earned value table (all amounts indicated are dollars) to determine the earned value to the
nearest hundred dollars given the indicated state of the project. (55- 59)

Activity 5 10 15 20 25 30 35 Plan % Complete
A 850 350 1,200 100%

B 400 125 525 100%
C 1,275 650 1,925 100%
D 2800 4,500 350 7,650 95%
E 680 400 1,080 75%
F 125 875 1,000 80%
G 300 1200 1,500 45%
Monthly Plan 850 750 1,400 3,450 5,180 1,175 2,075 14,880
Monthly Act 900 650 1,350 3,875 4,780 850 2,000
1. A) $16,900
2. B) $14,900
3. C) $14,400
4. D) $13,200
Answer: D
56) Use the earned value table to determine the schedule performance index given the indicated state
of the project.
1. A) 0.89
2. B) 0.92
3. C) 1.09
4. D) 1.13
Answer: A
57) Use the earned value table to determine the cost performance index given the indicated state of the
project.
1. A) 0.89
2. B) 0.92
3. C) 1.09
4. D) 1.13
Answer: B
58) Use the earned value table to determine the estimated time to completion given the indicated state
of the project.
1. A) 35 days
2. B) 37 days
3. C) 39 weeks
4. D) 41 weeks
Answer: C
59) Use the earned value table to determine the estimated cost to completion given the indicated state
of the project.
1. A) $15,966
2. B) $16,235
3. C) $18,164
4. D) $17,441
Answer: B
60) Use the earned value table for Project Make-ready to determine the earned value at week 49.
(60 - 64)
Activity 7 14 21 28 35 42 49 Plan % Complete
Install fixtures 325 250 575 100%
Refinish floors 550 85 635 100%
Replace doors 350 275 625 100%
Complete tiling 1,200 565 1,765 80%
Install back door 875 225 1,100 70%
Landscaping 200 350 550 25%
Monthly Plan 325 800 435 1,475 1,440 425 350 5,250
Monthly Act 550 550 550 1,100 1,650 550 1,100
1. A) $4,950
2. B) $6,050
3. C) $4,155
4. D) $5,250
Answer: C
61) What is the cost variance of Project Make-ready based on the data in the earned value table shown
below?
1. A) -$1,896
2. B) -$1,096
3. C) -$800
4. D) -$406
62) Use the earned value table for Project Make-ready to determine the schedule variance.
1. A) -$1,896
2. B) -$1,096
3. C) -$800
4. D) -$206
Answer: B
63) Use the earned value table for Project Make-ready to calculate their schedule performance index.
1. A) 1.46
2. B) 0.68
3. C) 0.79
4. D) 1.26
Answer: C
64) Use the earned value table for Project Make-ready to calculate the estimated cost to completion.
1. A) $4,285
2. B) $5,250
3. C) $6,050
4. D) $7,645
Answer: D
65) If an activity's progress is defined as 0% until the activity is complete, the project manager is
using:
1. A) The 50/50 rule.

2. B) The all or nothing rule.
3. C) The 0/100 rule.
4. D) The Do Not Pass Go rule.
Answer: C
66) Once an activity is begun, it is assumed to be half done under the:
1. A) "Once begun, half done" rule.

2. B) Minimal effort rule.
3. C) Midway rule.
4. D) 50/50 rule.
Answer: D
67) Each activity contained a series of milestones that represented a previously agreed-upon amount
of work. Once the low graffiti was erased, 35% of the activity had been completed and once the mid-
level graffiti was erased, 70% of the activity had been completed. This project manager was clearly in
the:
1. A) Percentage complete camp.

2. B) Micromanagement camp.
3. C) 35/70 camp.
4. D) 3K specifications camp.
Answer: A
68) Very short work packages would be better managed by:
1. A) The percentage complete rule.

2. B) The 0/100 rule.
3. C) The caveat emptor rule.
4. D) The prior knowledge rule.
Answer: B
69) Earned value directly links all three primary project success metrics (cost, schedule, and customer
satisfaction).
70) The one factor that earned value management considers that an S-curve does not include is
performance.
Answer: TRUE
71) The earned value of a project is the cumulative total costs incurred in accomplishing the various
work packages.
Answer: FALSE
72) A project manager needs the work breakdown structure and a time-phased project budget to
establish the project baseline.
Answer: TRUE
73) Five weeks in the semester you have completed 0% of your project management class under the
0/100 rule.
Answer: TRUE
74) Your organization is in the midst of a project in uncharted waters; nothing you have attempted
before comes close to many of the activities that are necessary to bring this project to completion.
Your earned value management should probably be tracked closely with a percentage complete rule in
increments of 5 to 10 percent.
Answer: FALSE
78) Geoff coolly surveyed his earned value table at the conclusion of month 24. It was hard to believe
that two short years ago, with his membership at Match.com about to expire, he had managed to craft
an ad that was both urbane and manly enough as to catch the eye of the divine Miss Smylie. (The
male model photo he substituted for his own certainly didn't hurt either.) Now he was almost done
managing this critical project. Some might think him crass for taking such an approach, but he
practiced what he preached at the small commuter school where he taught. Calculate all of the
schedule and cost variances (costs in the table are in dollars) for this project and comment on Geoff's
skills as a project manager.

Activity 4 8 12 16 20 24 28 Total % Complete
Courtship 1000 2000 3000 3000 3000 1000 13000 90%
Proposal 500 5000 0 0 5000 10500 100%
Negotiations 500 0 1000 1500 100%
Invitations 800 800 100%
Showers 400 800 800 2000 100%
Musicians 400 1000 1400 20%
Caterer 200 2000 5000 7200 30%
Rehearsal 400 4000 4400 10%

Party 1000 2000 3000 20%
Ceremony 500 500 500 500 3500 5500 20%
Reception 1000 1000 6000 8000 30%
Honeymoon 2000 4000 6000 40%
Total 1000 3000 10700 5900 9700 7500 25500 63300
Cumulative 1000 4000 14700 20600 30300 37800 63300
Actual 2500 5100 12700 6400 10600 9000 0
Cumulative 2500 7600 20300 26700 37300 46300

Actual
Answer: The schedule variances for this earned value management table are as follows:
Planned value (PV) is $37,800 from the table.
Earned value (EV) is the sum of the products of the activity total costs times their percentage
complete.

EV = × 1000
EV = $35,880

Schedule Performance Index: EV/PV = 35,880/37,800 = 0.949
Estimated Time to Completion: (1/SPI) Planned Time = (1/.949)28 = 29.498 months

The cost variances for the EVM table are:
Actual cost of work performed (AC): $46,300 (from table)
Earned value (EV): $35,880 (calculated above)
Cost performance index (CPI): EV/AC=35,880/46,300 = 0.775
Estimated cost to completion: (1/CPI) Plan Budget = (1/0.775) ∗ 63,300 = $81,683
Geoff's skills as a project manager are a cause for concern; instead of bringing the project in for
$63,300 and in 28 months, he stands to spend an extra $18,383 and not complete the project by the
28th month, extending past this deadline an extra 6 weeks. EVM isn't everything though; what's an
extra $18 grand and 6 weeks when you've found your soul mate?
79) Inspired by his trip to Greece, the gentleman farmer decided he needed a Mykonos-style windmill
pumping a pond for his sheep and orchard. His earned value table for the project appears below. At
the end of June, what was the estimated time to completion and the estimated cumulative cost to
completion?

Activity Jan Feb Mar Apr May Jun Jul Plan % Complete Earned
Value
Grading 500 150 650 100% 650
Footings 200 150 350 100% 350
Foundation 800 300 1,100 80% 880
Masonry 300 300 200 800 70% 560
Interior 700 2,000 2,700 50% 1,350
Pump Install 3,000 3,000 40% 1,200
Painting 350 400 750 25% 188
Monthly Plan 500 350 950 600 1,000 2,550 3,400 9,350 5,178
Cumulative 500 850 1,800 2,400 3,400 5,950 9,350
Monthly 600 400 900 800 800 2,800 0

Actual
Cumulative 600 1,000 1,900 2,700 3,500 6,300

Actual
Answer: At the end of June, the PV=5950; EV=5,178; and AC=6,300. The SPI=0.87 and the
estimated time to completion is 8.04 months. The cost performance is 0.82, so the estimated cost to
completion is $11,377. The project is slightly over budget and slightly behind, but not dramatically
so.
82) Earned value management at the portfolio level requires:
1. A) A single project manager with a single metric system.

2. B) Aggregation of all earned value measures across the firm's entire project portfolio.
3. C) Only positive variances for both budget and schedule.
4. D) Only negative variances for both budget and schedule.
Answer: B
84) A recurring problem with establishing accurate or meaningful EVM results has to do with:
1. A) The 0/100 rule.

2. B) Over-reliance on the S-curve.
3. C) The need to recognize the human factor.
4. D) The need to satisfy stakeholders within budget and time parameters.
Answer: C
85) In the formation stage, failed projects are more likely to have:
1. A) Technical limitations.
2. B) Personal ambition.
3. C) Clear objectives.
4. D) Team motivation.
Answer: A
86) In the build-up stage of a successful project, it is important that:
1. A) An adequate budget exists.

2. B) Top management support exists.
3. C) The project personnel are in a state of flux.
4. D) There is a clear sense of earned value management.
Answer: B
87) An unmotivated team is a key success inhibitor in every project stage with the EXCEPTION of
the:
1. A) Main phase.
2. B) Formation phase.
3. C) Close-out phase.
4. D) Build-up phase.
Answer: C
88) Funding problems are a key success inhibitor in the:
1. A) Build-up phase.
2. B) Close-out phase.
3. C) Main phase.
4. D) Formation phase.
Answer: D
89) The critical success factor that relates to the underlying purpose for the project is the:
1. A) Project mission.
2. B) Technical acceptance.
3. C) Technical tasks.
4. D) Client consultation.
Answer: A
90) The project control process is captured in the critical success factor of:
1. A) Communication.
2. B) Monitoring and feedback.
3. C) Troubleshooting.
4. D) Client consultation.
Answer: B
91) Knowing the correct steps to take once problems develop is a function of a team's:
1. A) Communication ability.
2. B) Technical task ability.
3. C) Troubleshooting ability.
4. D) Client acceptance ability.
Answer: B
92) The Project Implementation Profile includes this critical success factor.
1. A) Task interdependence
2. B) Continuous quality improvement
3. C) Self-actualization
4. D) Technical tasks
Answer: C
93) Project control should be:
1. A) Maintained by the project organization using the most complete measurement system, earned
value management.
2. B) Maintained by the project organization using the simplest measurement, an S-curve.
3. C) Maintained by both the project organization and the customer using the most complete
measurement system, earned value management.
4. D) Tailored to the needs and culture for which an organization intends it.
Answer: D
96) Use this earned schedule table to determine the schedule variance ($) for this project at the end of
Month 6. (96 - 103)

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7
PV ($) $125 $275 $500 $875 $1,485 $2,325 $2,670
EV ($) $50 $120 $255 $420 $715 $865 $0
1. A) -$1,460
2. B) -$865
3. C) $865
4. D) $2325
Answer: A
97) Use this earned schedule table to determine the schedule variance (t) for this project at the end of
Month 6.
2. A) -2.74
3. B) -3.74
4. C) -2.26
5. D) -1.26
Answer: B
98) Use this earned schedule table to determine the schedule performance index (t) for this project at
the end of Month 6.
1. A) 0.71
2. B) 0.54
3. C) 0.38
4. D) 0.21
Answer: C
99) Use this earned schedule table to determine the earned schedule for this project at the end of
Month 6.

PV ($) $125 $275 $500 $875 $1,485 $2,325 $2,670
EV ($) $50 $120 $255 $420 $715 $865 $0
2. A) 2.93
3. B) 2.74
4. C) 2.38
5. D) 2.26
Answer: D
100) The closer to completion a project gets, the less precise and useful is the information that EVM
provides.
Answer: TRUE
101) The closer to completion a project gets, the less precise and useful is the information that EVM
provides.
Answer: TRUE
103) Use the information in the table regarding this seven-month project to calculate the SPI in terms
of dollars and compare it with the SPI calculated in terms of time. Perform both calculations for
months 1 through 6. Then use the SPI (t) to provide the Estimate at Completion for Time EAC (t).
Answer:
PV ($) $125 $275 $500 $875 $1,485 $2,325 $2,670
EV ($) $150 $320 $510 $850 $1425 $2280 $0
SV ($) $25 $45 $10 -$25 -$60 -$45
SPI ($) 1.20 1.16 1.02 0.97 0.96 0.98

C 1 2 3 3 4 5
ES 1.2 3.3 4.04 3.93 4.90 5.95
SV(t) 0.20 1.3 1.04 -0.67 -0.09 -0.05
SPI(t) 1.20 1.65 1.35 0.98 0.98 0.99

The Estimate at Completion for Time is:

EAC (t) = 7.063 months
104) Use the information in the table regarding this seven-month project to create two plots. The first
plot should be the S-curve for Earned Value. Indicate on this plot whether the project is ahead or
behind schedule and by how much. The second plot should be the Earned Schedule and the Estimate
at Completion for Time. Comment on the symmetry of this graph and whether you would expect a
similar plot from any other project to exhibit similar characteristics.

PV ($) $125 $275 $500 $875 $1,485 $2,325 $2,670
EV ($) $140 $280 $480 $800 $1,280 $1,975 $2,950

Answer: The Earned Schedule table appears below.

PV ($) $125 $275 $500 $875 $1,485 $2,325 $2,670
EV ($) $140 $280 $480 $800 $1,280 $1,975 $2,950
SV ($) $15 $5 -$20 -$75 -$205 -$350 $280
SPI ($) 1.12 1.02 0.96 0.91 0.86 0.85 1.10

C 1 2 2 3 4 5 7
ES 1.12 3.03 2.91 3.80 4.66 5.58 8.81
SV(t) 0.12 1.03 -0.09 -0.2 -0.34 -0.42 1.81
SPI(t) 1.12 1.52 0.97 0.95 0.93 0.93 1.26

The Earned Value plot appears below. The earned value (dashed red line) falls below the planned
value line (solid blue line). Thus, the project is behind schedule by an amount corresponding to the
gap between the two lines.
The Earned Schedule and Estimate at Completion Time lines show a symmetry about the average of
the two, converging at the completion date of the project. The two lines are inversely related, as the
project falls behind schedule, the earned schedule should fall while the estimate at completion should
rise.

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Project Management MCQ’s

Chapter 1 Introduction: Why Project Management?

1. A) A defined start and end date.

1. A) The Personal Management Before or Kernel.

1. A) Product life cycle.

1. A) Initial cost estimates are overrun by an average of 15%.

1. A) Products are becoming increasingly simple.

1. A) Financial and behavioral challenges.

1. A) An activity that is ongoing

1. A) A cellular phone company activates a new customer's service.

1. A) greater team member heterogeneity

1. A) The termination stage of the project life cycle.

1. A) Client Interest and Creativity

1. A) Client Interest and Uncertainty

1. A) Client Interest and Creativity

1. A) Project cost is an external performance measure.

1. A) The project's potential for generating future opportunities.

1. A) An element of the iron triangle.

1. A) Compare practices against an industry standard.

1. A) Showing company performance on a number of criteria simultaneously.

1. A) Project management maturity must have at least three levels.

Chapter 2: The Organizational Context: Strategy, Structure, and Culture

1. A) Formulating cross-functional decisions

1. A) Establish a sense of what the organization hopes to accomplish.

1. A) What is our corporate culture?

1. A) Stakeholders wield considerable power.

1. A) Client refers to the entire customer organization.

1. A) Project team members

1. A) Assess your own capabilities.

1. A) define the problem

1. A) Requires all stakeholders to be identified and locked in as a first step.

1. A) Well-articulated mission, vision, and value statements

1. A) The number of departments involved in a project.

1. A) The design of systems for effective communication.

1. A) In-depth knowledge and intellectual capital development are enabled.

1. A) There are low levels of external uncertainty.

1. A) Creates legions of project management experts.

1. A) The environment is dynamic.

1. A) Dual hierarchies mean two bosses.

1. A) Heavyweight project organization.

1. A) Project management offices.

1. A) Control tower model.

1. A) Resource pool model.

1. A) Control tower model.

1. A) Keeping an eye on project status without influencing the project.

1. A) It is essentially another layer of oversight within the organization.

1. A) How many workers will the project need?

1. A) Objective and accurate.

1. A) Numeric and subjective.

1. A) Expected return on investment.

1. A) The project relies on developing new or untested technologies.

1. A) The change in manufacturing operations resulting from the project.

1. A) Expected return on investment.

1. A) A need to develop employees.

1. A) Organizational reality can be perfectly captured by most decision-making models.

1. A) Whether one criterion is more important than another.

1. A) Importance weights from 1 to 10 assigned to each criterion.

1. A) Scaling from 1 to 5 is extremely accurate.

1. A) Is a method to split the weights assigned to sub criteria.

1. A) Requires supporting requirements to be combined into Level II challenges.

1. A) AHP scores are significant.

1. A) Project A is twice as good as project C.