Assignment - C

Marks: 10
1. Risks will be identified during which risk management process(es)?

a)
b)
c)
d)
e)

Quantitative risk analysis and risk identification

Risk identification and risk monitoring and control
Qualitative risk analysis and risk monitoring and control
Risk identification
None of the above.

2. Who is ultimately responsible for quality management on the project?

a)
b)
c)
d)

Project engineer
Project manager
Quality manager
Team member

3. A project manager has just been assigned to a new project and has been given the preliminary
project scope statement and the project charter. The first thing the project manager must do
is:
a)
b)
c)
d)

Create a project scope statement.

Confirm that all the stakeholders have had input into the scope.
Analyze project risk.
Begin work on a project management plan.

4. You are taking over a project during the planning process group and discover that six
individuals have signed the project charter. Which of the following should most concern you?
a)
b)
c)
d)

Who will be a member of the change control board

Spending more time on configuration management
Getting a single project sponsor
Determining the reporting structure

e) Both (a) and (b)

5. A project manager is employed by a construction company and is responsible for the
furnishing of the completed building. One of the first things that the project manager for this
project should do is to write a:
a)
b)
c)
d)
6.

Work breakdown structure.

Budget baseline.
Project charter.
Project plan.
All of the following are characteristics of a project EXCEPT:

a) Temporary
b) Definite beginning and end
c) Interrelated activities
d) Repeats itself every month
7. The equivalent of cost reimbursable contracts is frequently termed:
a) Back charge contracts.
b) Fixed price contracts.
c) Progress payment contracts.
d) Cost plus contracts.
8. A buyer extends a formal invitation that contains a scope of work that seeks a response that
will describe the methodology and results that will be provided to the buyer. This is called:
a) Invitation to bid.

b) Request for information.

c) Request for proposal.
d) Request for bid.
9. A project manager must have some work done by an outside contractor. This work has a great
deal of risk associated with it, and it has become very difficult to find a contractor willing to
take on the job. Which of the following types of contract would offer the greatest incentive to
the contractor?
a) Cost plus percentage of cost as an award fee
b) Cost plus fixed fee
c) Cost plus incentive fee
d) Firm fixed price.
10. The project management process groups are:
a) Initiating, planning, expediting, and control.
b) Plan, organize, develop, and control.
c) Plan, do, observe, commit.
d) Initiating, planning, executing, controlling, and closeout.
11. In which project management process group is the detailed project budget created?
a) Initiating
b) Before the project management process
c) Planning
d) Executing
12. Contract closure is different from administrative closure in that contract closure:
a)
b)
c)
d)

Occurs before administrative closure.

Is the only one to involve the customer?
Includes the return of property.
May be done more than once for each contract.

13. During the full life cycle of the project, a plot of the projects expected expenditures will usually
follow a characteristic..S.. shape. This indicates that:
a)
b)
c)
d)

There is a cyclic nature to all projects.

Problems will always occur in the execution phase.
There are high expenditures during closeout.
The bulk of the project budget will be spent in the execution phase.

14. What conflict resolution technique is a project manager using when he says, "I cannot deal
with this issue now!"
a) Problem solving
b) Forcing
c) Withdrawal
d) Compromising
15.A group of related projects that are managed in a coordinated way that usually include an
element of ongoing activity is called a:
a) Major project.
b) Project office.

c) Program.
d) Group of projects.
16.To control the schedule, a project manager is reanalyzing the project to predict project
duration. She does this by analyzing the sequence of activities with the least amount of
scheduling flexibility. What technique is she using?
a)
b)
c)
d)

Critical path method

Flowchart
Precedence diagramming
Work breakdown structure

e) Both (a) and (b).

17. A project manager has just been assigned to a project. The document that recognizes the
existence of the project is called:
a) The statement of work.
b) The project assignment.
c) The project charter.
d) The product description.
18. A manager that manages a group of related projects is called a:
a) Project manager.
b) Project expediter.
c) Program coordinator.
d) Program manager.
19. If project A has a net present value (NPV) of Rs 30,000 and project B has an NPV of Rs
50,000, what is the opportunity cost if project B is selected?
a) Rs 23,000
b) Rs 30,000
c) Rs 20,000
d) Rs 50,000
20. A project manager is using weighted average duration estimates to perform schedule
network analysis. Which type of mathematical analysis is being used?
a) Critical path method
b) PERT
c) Monte Carlo
d) Resource leveling
21.An activity has an early start (ES) of day 3, a late start (LS) of day 13, an early finish (EF) of
day g, and a late finish (LF) of day ig. The activity:
a) Is on the critical path.
b) Has a lag.
c) Is progressing well.
d) Is not on the critical path.
22.Which phase of the project is likely to have the greatest amount of its funding spent?
a) Initiating
b) Executing
c) Planning

d) Closeout 23. Which of the following represents the estimated value of the work actually
accomplished?
a) Earned value (EV)
b) Planned value (PV)
c) Actual cost (AC)
d) Cost variance (CV)
24. A project manager is managing a project. The original scope baseline of the project was
budgeted at Rs 100,000. Since works on the project started there have been seventeen
authorized and approved changes to the project. The changes have a value of Rs 17,000 and
the cost of investigating them prior to their approval was Rs 2,500. What is the current budget
(in Rs) for the project?
a)
b)
c)
d)

100,000
114,500
117,000
119,500

e) None of the above

25. You are managing a project in a just in time environment. This will require more attention,
because the amount of inventory in such an environment is generally:
a) 45 percent.
b) 10 percent.
c) 12 percent.
d) 0 percent.
26. A task was scheduled to use two persons, full time, and take two weeks to complete. Instead,
the project manager was only able to assign one person to this task. At the end of two weeks,
the person assigned to the task was 75% complete. What is the cost performance index?
a) 0.75
b) 1.50
c) 0.25
d) 1.15
27.Which of the following is considered to be a simulation technique?
a) PERT analysis
b) GERT analysis
c) Monte Carlo analysis
d) Critical path method
28. Project A has an internal rate of return (IRR) of 21 percent. Project B has an IRR of 7 percent.
Project C has an IRR of 31 percent. Project D has an IRR of ig percent. Which of these would be
the BEST project?
a)
b)
c)
d)

Project A
Project B
Project C
Project D

29. The program evaluation and review technique (PERT) method of scheduling differs from the
critical path method (CPM) because the PERT method:

a)
b)
c)
d)

Uses weighted averages of activity durations to calculate project duration.

Uses dummy activities to represent logic ties.
Uses free float instead of total float in the schedule calculations.
Uses bar charts instead of logic diagrams to portray the schedule.

30. In attempting to complete the project faster, the project manager looks at the cost associated
with crashing each activity. The best approach to crashing would also include looking at the:
a) Risk impact of crashing each activity.
b) Customer's opinion of which activities to crash.
c) Boss's opinion of which activities to crash and in which order.
d) Project life cycle phase in which the activity is due to occur.
31. The project is not completed until:
a) The project scope is completed, administrative closure is completed and payment is
received.
b) Formal acceptance is received, and any other requirements for project closure as stated in
the contract are met.
c) The customer is satisfied and final payment is received.
d) Lessons learned are completed.

32. During project executing, a team member comes to the project manager because he is not
sure of what work he needs to accomplish on the project. Which of the following documents
contain detailed descriptions of work packages?
a) Work breakdown structure (WBS) dictionary
b) Activity list
c) Preliminary project scope statement
d) Project scope management plan
33.You are asked to prepare a budget for completing a project that was started last year and then
shelved for six months. All the following would be included in the budget except?
a) Fixed costs
b) Sunk costs
c) Direct costs
d) Variable costs
34. During the project life cycle, in which part of the life cycle will risk be the lowest?
a) Initiation
b) Planning
c) Execution
d) Closeout
35. A project manager managing any project should perform risk analysis at what stage of the
project:
a)
b)
c)
d)

Just before any major meeting with the client.

On a regular basis throughout the project.
Only when justified by the awareness of new risks becoming a possibility.
When preparing the project plan.

e) None of the above

36. You are the project manager for a high visibility project. The margin on this project is low, and
it is extremely important that the cost estimates for the work on the project be accurate. While
reviewing the cost estimates for this project you notice that one of the cost estimates for an
element in the WBS is 10% higher than two previous projects for very similar work. What
should you do?
a) Accept the estimate because you trust all of the people on your project team, and they are
responsible for estimates.
b) Reduce the estimate and add the additional budget to the management reserve.
c) Ask the person responsible for the estimate to explain the difference and bring supporting
information to you.
d) Reduce the estimate and add the additional budget to the contingency reserve.
37. The project life cycle differs from the product life cycle in that the project life cycle:
a)
b)
c)
d)

Does not incorporate a methodology.

Is different for each industry.
Can spawn many projects.
Describes project management activities.

38. A manager and the head of engineering discuss a change to a major work package. After the
meeting, the manager contacts you and tells you to complete the paperwork to make the
change. This is an example of:
a) Management attention to scope management.
b) Management planning.
c) A project expediter position.
d) A change control system.
39.All of the following are parts of direct and manage project execution except?
a)
b)
c)
d)

Identifying changes
Using a work breakdown structure
Implementing corrective actions
Setting up a project control system

40. A project manager does not have much time to spend planning before the mandatory start
date arrives. He therefore wants to move through planning as effectively as possible. Which of
the following would you recommend?
a) Make sure you have a completed preliminary project scope statement and then start the
WBS.
b) Create an activity list before creating a network diagram.
c) Document all the known risks before you document the high-level assumptions.
d) Finalize the quality management plan before you determine quality metrics.