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The LOB technique is best suited as a


performance reporting technique to
A. Display a future job to facilitate analysis of the
work involved
B. Show the customer how various activities relate
to one another in the production or development
process
Answer: D
C. Determine which work sequences will take the
longest to complete the project
D. Assure the customer that the articles it is buying
will be available when needed
E. Determine which sequences of the effort have
been positive and which have been negative to
focus attention on areas for improvement

In person-to-person communication, messages are


sent on verbal levels and nonverbal levels
simultaneously. If nonverbal cues and the spoken
message are incongruous, the flow of
communication is hindered. Nonverbal
communication can involve the use of Answer: E
A. Physical attributes
B. Esthetic attributes
C. Signs
D. Symbols
E. All of the above

536. Which of the following tools or techniques are


used in the information distribution process?
A. Communication management plan, project plan,
and information distribution system
B. Information distribution system, information
retrieval system, and performance reports
Answer: C
C. Communication skills, information retrieval
system, and information distribution system`
D. Communication skills, work results, and status
reports
E. Performance reviews, performance reports, and
project plan

In dealing with the customer, the project manager


should
A. Disclose information only at regular intervals to
maintain consistency
B. Strive to develop a friendly, honest, and open
relationship
Answer: B
C. Be honest to the extent that the project
organization is protected from litigation
D. Try to maximize profits by encouraging scope
creep
E. Do whatever it takes to satisfy the customer and
win additional business

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When communicating with a people-oriented


person, a project manager should
A. Stress the uniqueness of the idea or topic at
hand
B. Stress the relationships between his/her
proposals and the people concerned Answer: B
C. Be precise about the value of the ideas to
overall organizational goals
D. Focus on personnel performance issues first
E. Describe the ideas using anecdotal evidence to
support recommendations

The communication process consists of the


following components
A. Communicator
B. Message Answer: C
C. Function
D. Recipient
E. Medium

The process of conferring with others to come to


terms or reach an agreement is called
A. Win-win
B. Getting to yes Answer: C
C. Negotiation
D. Arbitration
E. Confrontation

The project manager has changed the scope


without communicating the change to the rest of
the project team. The project is now over budget.
What action would prevent this from happening in
the future? Answer: C
A. Adjust the resource allocation
B. Improve budget estimating
C. Follow the communication plan
D. Hold more meetings

The project manager has changed the scope


without communicating the change to the rest of
the project team. The project is now over budget.
What should the project manager do now?
A. Call the customer immediately
Answer: C
B. Analyze the impact and request more budget
C. Analyze impact to cost and schedule, review
and implement contingency plans
D. Call a team meeting, apologize and get a quick
agreement on a solution

Lessons learned are most often based upon a


projects historical records.
Lessons learned can be used to:
a. See what mistakes have been made previously. Answer: D
b. See how problems have been solved previously (Kerzner 896-900)
c. Predict trends, highlight problems and identify
alternatives.
d. All of the above.

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Project Closeout must ensure that the terms of the


contract have been met.
Documentation enables the project team to:
a. Reflect revised or as-built conditions Answer: A
b. Verify that the budget has been met. Kerzner 608-609
c. Verify that no cost accounts have been
exceeded.
d. All of the above.

Work packages are used to :


a. Represent units of work at a level where work is
performed.
b. distinguish one package from all others assigned
Answer: d
to a single functional group.
c. Limit work to be performed to relatively short
periods of time.
d. All of the above.

Scope baseline once established and approved is


used:
a. As the basis for making future decisions..
Answer: d
b. To accomplish verification measures.
c. To evaluate potential changes.
d. All of the above.

In preparing a good project definition, experienced


project manager will:
a. Concentrate mainly on the end product, rather
than on costs are benefits.
b. Realize that only the tip of the iceberg may be
showing. As Proj. managers, they must get Answer: d.
beneath it.
c. Understand that a project definition / plan is a
dynamic rather than a static tool, and thus subject
to change.
d. All of the above.

The contractual Statement of work (CSOW):


_______________
a. Must be the same as the proposal statement of
work.
Answer: c
b. Does not identify reporting requirements (ie data
Kerzner 583-84
items)
c. Can be at a different level of detail than the
proposal's SOW
d. All of the above.

Graphical displays of accumulated costs and labor


hours, plotted as a function of time, are called:
a. Variance report Answer: b
b. S Curve (Kerzner 822)
c. Trend Analysis
d. Earned value report

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Mgmt plans include all of the following except:


a. Organization of the project
Answer: d
b. Job description
(Kerzner 570-72)
c. Policies & Procedures
d. Scope baseline

A comprehensive definition of Scope management


would be:
a. Approval of Scope baseline
b. Approval of detailed project charter Answer: d
c. Configuration control
d. Managing a project in terms of its objectives thru
all life cycle phases and processes.

he degree to which a company accepts and utilizes


project mgmt is most often dependent upon the
___________ and ___________ of its projects.
a. Competion, dollar value Answer: d
b. Type of industry, manpower requirements.
c. Risk, quality management
d. size, nature

The rolling wave or moving window advocates the


use of WBS decomposition, and is used most
frequently in the ________process.
a. Initiation Answer: b
b. Scope definition
c. Scope planning
d. Scope reporting

The project charter and scope statement are


documents designed to tell __________ exactly
what the project entails.
Answer: d
a. The project manager
(Kerzner 626)
b. Project Office
c. Project team
d. Anyone associated with the project

Using the WBS shown in 1_A034.bmp, a typical


work package would be:
a. Software development
Answer: d
b. Systems design
c. Coding
d. None of the above

Problems can occur in properly defining a project


because:
a. Plan was too loose, allowing changing of
priorities
Answer: b
b. Project goals may not be agreeable to all
parties.
c. High turnover of the project personal
d. Project objectives were quantified

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15. Project Mgmt / Project planning can address:


a. Long range / strategic planning (5yrs or more)
Answer: d
b. Intermediate range planning ( 1 to 5 yrs)
(Kerzner 9/97)
c. Short range/ tactical planning (1 yr or less)
d. b and c

A project Manager believes that modifying the


scope of the project may provide added value for
the customer. The project manager should:
Answer: d
a. Change the scope baseline
(Kerzner 633-34)
b. Prepare a variance report
c. Change project objectives
d. Convene change control board

Researching, organizing, and recording pertinent


project information is called:
a. alternative analysis
Answer: c
b. configuration control
c. Information gathering
d. All of the above

Feasibility studies evaluate alternatives in terms of:


a. Cost effectiveness
Answer: d
b. Risk
(Kerzner 578)
c. Safety
d. All or part of A thru C

The most common non-behavioural reason for


projects being completed behind schedule and
over budget is:
Answer: c
a. Wrong choice of a Proj Manager
(Kerzner 583-5)
b. Accepting high risk
c. Ill-defined requirements
d. Wrong choice of a Proj Sponsor

Ensuring that all work is both authorized and


funded by contractual documentation is the
responsibility of:
a. The Project Manager Answer: a
b. Functional Manager
c. Sponsor
d. All of the above

Preparation of the Scope baseline involves the:


a. Project Manager and sponsor
b. Functional team Answer: d
c. Project Manager and project office
d. All of the above

The major disadvantages of a bar chart is that it: Answer: c


a. Lacks time phasing
b. Cannot be related to calendar dates
c. Does not show activity interrelationships
d. Cannot be related to manpower planning
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A Project element which lies between two events is


called:
a. An activity
Answer: a
b. Critical path node
c. A slack milestone
d. A timing slot

3. Mgmt. has decided to "crash" a project in order


to avoid penalty payments for late deliveries.
Additional costs are expected. To crash the project,
either overtime or additional resources should be
assigned to:
Answer: b
a. All activities
b. Those activities on the critical path beginning
with the longest time duration activities.
c. Only for activities with the longest time durations.
d. None of the above.

Time Mgmt is the allocation of time to a project's


processes of:
a. Planning
Answer: d
b. Estimating
c. Scheduling
d. All of the above.

ADM is an Activity-on-Arrow method. In this


method, a dummy activity:
a. Denotes critical path relationship.
Answer: c
b. shows slack.
c. Denotes any dependency relationship.
d. Identifies customer team meeting dates.

Using the following figure, the critical path is ____


weeks.<br>
<img src="Balaji-time-6.gif">
a. 21
Answer: d
b. 22
c. 23
d. 24
e. 25

The major difference between PERT and CPM


networks is:
a. They are one and the same, but they are called
different names in USA and European Union.
b. PERT is used for IT projects, whereas CPM is
used for R&D.
Answer: e
c. PERT addresses only time whereas CPM talks
about costs and resource availability.
d. PERT uses computer solutions, whereas CPM is
a manual technique.
e. PERT requires three time estimates, whereas
CPM requires one time estimate.

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Once a logic of a network is laid out, the project


manager will conduct a forward pass and then a
backward pass thru the network. Doing this will
provide information on the ___________ and
identification of the _________.
Answer: a
a. Slack for each activity, critical path.
b. Slack for each activity, high risk activities.
c. Manpower shortages, high risk activities.
d. High risk activities, non-critical paths.
e. Manpower availability, contingency plans.

Smoothing out resource requirements from period


to period is called resource ______________.
a. Allocation
b. Partitioning Answer: c
c. Leveling
d. a and b
e. None of the above

Assigning resources is an attempt to find the


shortest project schedule consistent with fixed
resource limits is called __________________.
a. Resource Quantification.
Answer: d
b. Resource partitioning.
c. Resource leveling.
d. Resource-constrained scheduling.
e. None of the above.

In the Arrow Diagramming Method (ADM),


________ do not consume time or resources.
a. Events
b. Activities. Answer: a
c. Slack Elements.
d. All of the above.
e. b and c

Increasing resources on the critical path activities


may not always shorten the length of the project
because:
a. Certain activities are time-dependent rather than
resource-dependent.
b. Safety, OSHA and EPA may have placed
restriction on the number of people used on certain Answer: e
activities or in the physical location of the project.
c. The skill level of the added resources might not
be appropriate for the activities to be performed.
d. Adding more resources may create additional
work and produce inefficiencies
e. All of the above.

Among the common types of schedules are Gantt


charts, milestone charts, line of balance, and :
a. Networks
b. Time-phased events. Answer: a
c. Calendar-integrated activities.
d. a and c
e. b and c

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Bar charts are most appropriate for:


a. Comparing actual to planned performance for
each activity
b. Showing slack time.
Answer: a
c. Showing critical path dependencies
d. Showing which activities can be rearranged in
parallel
e. All of the above

Using the following figure, activity D has the latest


start time of ________weeks and latest finish time
of _______ weeks.<br>
<img src="Balaji-time-15.gif">
a. 4,12 Answer: b
b. 2,10
c. 6,14
d. 7,15
e. 9,17

Normally distributed data, by definition, is


distributed evenly around the ____________.
a. Normal Value
Answer: b
b. Mean value
c. Six sigma value
d. Standard Deviation

Which of the following is not a principle of modern


quality assurance?
a. Increased expenditure on inspection
Answer: a
b. Total quality control
c. The cost of quality
d. Continuous improvement

Which of the following is / are typical tools of


statistical process control?
a. Pareto Analysis
Answer: d
b. Cause-& Effect Analysis
c. Process control Charts
d. All of the above

The specification for a particular part is 10" 0.015".


The associated process produces parts with the
mean of 10" and a standard deviation of 0.002".
The process capability index is:
Answer: c
a. 0.0002
b. 1.0
c. 2.5
d. Cannot be calculated with above data.

Costs of prevention include:


a. Training
b. Supplier certification Answer: d
c. scrap
d. a & b

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Good quality objectives should:


a. Be attainable and state specific deadlines for
completion / implementation.
Answer: d
b. Define specific goals
c. Be understandable
d. All of the above.

When a process is set up optimally, the upper and


lower specification limits typically are:
a. Set outside the upper and lower control limits
Answer: d
b. Set equal to the upper and lower control limits.
c. Set at an equal distance from the mean value
d. a and c

Which of the following is true of modern quality


management?
a. Quality has become a competitive weapon
b. Quality is linked with profitability on both the Answer: d
market & cost sides.
c. Quality is defined by the customer.
d. All of the above are true.

Which of the following is not a part of the generally


accepted view of quality today?
a. Quality is customer focused
b. Quality can be improved thru thorough
Answer: b
inspection.
c. Improved quality saves money and increases
business.
d. All above are correct.

The cost of internal failure include:


a. Scrap
b. Rework Answer: c
c. a & b
d. None of the above

Attributes quality data:


a. Are expressed as pass / fail or accept / reject
b. Are quality data for which the product or service
is designed and built. Answer: d
c. Indicates management's understanding of the
concept of variability
d. a & b

Which of the following is / are part of the criteria by


which a company is evaluated for the Malcolm
Baldrige award?
a. Business Results Answer: d
b. Information analysis
c. Leadership and strategic planning.
d. All of the above.

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A well-written policy statement on quality will:


a. Be a statement of how, not why.
b. Promotes consistency throughout the
organization and across projects. Answer: b
c. Provides an explanation of how customers view
quality in their organizations.
d. None of the above

Which of the quality gurus believed "Zero Defects "


is achievable.
a. Crosby
Answer: a
b. Taguchi
c. Juran
d. All of the above

Which of the following is / are true about quality


costs when quality management principles are
applied?
a. Prevention costs may actually rise over time
b. Prevention costs and failure costs (internal and Answer: d
external) are directly related.
c. Prevention costs and failure costs (internal and
external) are inversely related.
d. a & c

A process characteristic has a true (population)


mean of 150 and a true (population) standard
deviation of 20. A sample of 25 items is taken from
this process. The standard deviation of the sample
is : Answer: a
a. 4.0
b. 0.2
c. 0.8
d. 7.5

Quality audits:
a. Are not necessary if you do it right the first time.
b. Must be performed daily for each process.
Answer: d
c. Are important only for technology-oriented
products
d. Are none of the above.

Which of the following is considered a cost of


prevention?
a. Rework costs
Answer: c
b. Mass inspection
c. Creating quality control charts
d. All of the above.

Which of the following is not one of crosby's four


absolutes of quality?
a. Quality is measured by the cost of conformance.
b. Quality comes from prevention. Answer: a
c. Quality is measured by the cost of non-
conformance.
d. Quality means conformance to requirements.

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Which of the following is not one of crosby's four


absolutes of quality?
a. Quality is measured by the cost of conformance.
b. Quality comes from prevention. Answer: a
c. Quality is measured by the cost of non-
conformance.
d. Quality means conformance to requirements.

Assignable cause or special cause variation is


indicated when a:
a. Point falls outside the control limits.
b. Points falls outside the specification limits. Answer: d
c. Run of seven or more points fall above the
centre line of a standard control chart.
d. a & c

Which is closest to the Juran's definition of Quality?


a. Conformance to requirements
b. Fitness for use.
Answer: b
c. customer focus
d. continuous improvement of products and
services.

Quality assurance includes:


a. Planning for collection of data.
b. Completing tic charts. Answer: a
c. Inspection analysis
d. All of the above

If a project manager requires the use of a piece of


equipment, how many days must he rent the
equipment before the cost is equal to the total cost
of leasing the equipment for one year?
<table>
<tr><th>Cost <th> Renting <th> Leasing
<tr><td>Annual Maint <td> $0.00 <td> $3000
Answer: b
<tr><td>Daily Operation <td> $0.00 <td> $70
<tr><td>Daily Rental <td> $100 <td> $0.00
</table>
a. 300 days
b. 100 days
c. 700 days
d. 30 days

Which of the following is an element of


procurement management?
a. Inspection
Answer: d
b. Purchasing & Expediting
c. Estimating
d. a & b

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Which one of the following factors should be


considered in the make or buy analysis?
a. Direct & Indirect costs
b. Possible use by other projects and /or Answer: c
operations of the asset under consideration
c. a & b
d. None of the above

A customer asks a contractor to develop a new


product for the customer. The customer knows that
the contractor will then "transfer" this knowledge to
other product lines, which may generate
substantial future revenue for the contractor. The
customer would most likely negotiate which type of Answer: b
contract?
a. FFP
b. Cost Sharing
c. Time and material
d. Cost

Which type/s of contract/s has / have no profit


margins included.
a. Cost
Answer: d
b. Cost sharing
c. Time and material
d. a & b

Which of the following contract has the highest


technical risk to the owner?
a. Time & Material
Answer: a
b. Firm Fixed price
c. Cost plus fixed fee
d. None of the above

The formal invitation to submit a price for specified


goods / services is usually referred to as:
a. Request for Proposal (RFP)
Answer: b
b. Request for Quotation (RFQ)
c. Bid invitation
d. a & b

A proposal kickoff meeting usually covers:


a. Project Scope
b. Staffing & assignments Answer: c
c. Proposal schedule
d. All of the above

Which type/s of incentive contract/s has/have a


total price ceiling?
a. Cost plus incentive fee
Answer: b
b. Fixed price incentive fee
c. firm fixed price
d. a & c

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Standardization of purchased material:


a. Reduces risk of obsolescence
b. Reduces cost of purchasing & simplifies
Answer: b
inventory control
c. Increases cost of storage.
d. a & c

Which of the following is / are associated with a


buyer's request for material to meet a particular
need?
a. Implied warranty of fitness for a particular
Answer: a
purpose.
b. Material guarantee
c. Material warranty
d. Implied warranty of salability.

Which of the following is not usually included in the


evaluation criteria of proposals from vendors or
contractors:
a. Contract price
Answer: d
b. Life cycle cost & technical merit
c. Project management approach
d. Evaluation criteria may include any or all of the
above items.

Which of the following type of specifications gives


measurable capabilities of a product?
a. Functional specification
Answer: c
b. Conformance specification
c. Performance specification
d. Process capability specification

The comprehensive review of the procurement


process from planning thru contract administration
is referred to as:
a. Post project evaluation Answer: b
b. Procurement audit
c. Procurement performance evaluation
d. None of the above.

Which of the following is not a part of the contract


administration?
a. Performance control
Answer: c
b. Financial control
c. Contract award
d. All above is part of contract administration.

The procurement document used to solicit


responses from potential contractors / sellers,
primarily concerning price, is usually referred to as
the:
Answer: d
a. Request for Proposal
b. Request for quotation
c. Invitation for bid
d. b or c

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Which of the following is / are an appropriate


reason / s to use financial incentives in a contract?
a. To increase overall schedule.
b. To reduce overall cost of the project Answer: b
c. To attain the minimum performance required by
the contract.
d. All of the above

What type of contract has a "ceiling" and "floor" (i.e


max and min values) on the allowable profit?
a. CPIF
Answer: a
b. FPIF
c. T & M
d. None of the above

In which of the following type of specifications does


a buyer carry most of the performance risk:
a. Functional specification
Answer: d
b. Performance specifications
c. Conformance specifications
d. Design specifications.

Which of the following is not part of the acquisition


process?
a. Invitation to bid
Answer: c
b. Contract award
c. Notice to proceed
d. Source selection

Which of the following should be considered in the


negotiation and selection of a contract type?
a. The degree of clarity, which the end product is
defined. Answer: c
b. Acts of god or acts of nature.
c. Price competition
d. All above except b.

The relationship between the budgeted actual cost,


actual work completed and work planned will
determine the
A. Schedule estimate at completion
Answer: A
B. Cost estimate at completion
C. Cost Performance Index
D. Schedule Performance Index
E. both a and b

All work packages are complete


A. at EAC time
B. when BAC is equal to EAC
Answer: B
C. when BCWP intersects BCWS
D. when schedule variance is zero
E. c and d

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Earned value is
A. the base line plan
B. completed work value
Answer: B
C. cost/cost variance
D. percent over or under budget
E. a and b

You could tell Diane was worried about her project.


Her folks had been working on the project since
Independence Day. Here it was already Halloween
and they were just finishing up work that was
supposed to have been completed by Labor Day.
"Oh dear", she confided to her friend, "Instead of
completing by Christmas, at this rate I expect we Answer: E
won't be done until
A. New Year's Day
B. St. Patrick's Day
C. Easter
D. Mother's Day
E. the 4th of July

Diane was so concerned about her project that she


woke up dreaming about it. She thought to herself,
"Well, our BCWP is 2, our ACWP is 4 and our
BCWS is 6, so that means
A. our productivity was less than planned Answer: E
B. our cost estimate at completion is 6
C. our CPI and SPI are both positive
D. our cost variance is negative
E. a, c and d

The measurement which best shows the difference


between actual work and actual costs is
A. Cost variance
B. Percent over or under Answer: A
C. Schedule variance
D. CPI
E. this is not a valid measurement

Rework costs ____ times budgeted costs.


A. +75, -25
B. +25, -10
Answer: E
C. 85
D. 10 to 15
E. 25 to 50

If part of a project's costs will be paid in future


years, the best way to determine the value of those
costs in today's dollars is
A. estimated project payout
Answer: D
B. return on investment
C. net present value
D. discounted cash flow
E. internal rate of return

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If the ACWP exceeds the BCWP, the cost estimate


at completion will
A. increase
B. decrease Answer: A
C. depend on the BCWS
D. exceed the schedule estimate at completion
E. a and d

If the BCWS = $1,000,000, the BAC = $2,000,000,


the ACWP = $1,500,000, the BCWP = $500,000
and you're halfway through the project after two
years, what is the cost estimate at completion?
A. $2,000,000 Answer: C
B. $4,000,000
C. $6,000,000
D. $8,000,000
E. Cannot be determined without the EAC

Cost management requires a critical look at future


expenditures and the controls exercised over those
expenditures. The three types of cost estimates
through which project expenditures are made are
________.
A. rough order of magnitude, guestimate, and Answer: C
actual
B. traditional, classical, and contemporary
C. order of magnitude, budget, and definitive
D. concept, budget, and design
E. engineering, quoted, and definitive

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