PMP & ITIL Study Guide

The _________ is a time-phased budget that will be used to measure and monitor cost performance in the project.

1. work breakdown structure
   
2. project schedule
   
3. cost baseline
   
4. cost budget
   

Answer: C

To transfer most of the cost risk to the contractor, the client may use a ___________ contract.

1. cost plus award fee
   
2. cost plus incentive fee
   
3. cost plus fixed fee
   
4. fixed price
   

Answer: D

An appropriate sequence for risk management activities is:

1. risk identification, risk quantification, and risk response development and control.
   
2. risk identification, risk assessment, and risk planning.
   
3. risk identification, risk mitigation, and risk management.
   
4. risk identification, risk elimination, and risk mitigation.
   

Answer: A

Theory X holds that:

1. quality improvements lie in the hands of quality circles.
   
2. profits are tied to meeting schedule deadlines.
   
3. absenteeism is tied to poor working conditions.
   
4. workers are inherently unmotivated and need strong guidance.
   

Answer: D

All of the following are characteristics of parametric estimating except:

1. historical information.
   
2. quantifiable.
   
3. scalable.
   
4. activity lists.
   

Answer: D

Inputs to cost budgeting include all of the following except:

1. cost baseline
   
2. cost estimate
   
3. work breakdown structure
   
4. project schedule
   

Answer: A

Inputs used during scope planning include all of the following except:

1. constraints.
   
2. project charter.
   
3. budget/cost analysis.
   
4. product description.
   

Answer: C

Cost control outputs include all of the following except:

1. estimate at completion.
   
2. budget updates.
   
3. revised cost estimates.
   
4. cost baseline.
   

Answer: D

Risk identification outputs include the following except:

1. decision trees.
   
2. inputs to other processes.
   
3. risk symptoms.
   
4. potential risk events.
   

Answer: A

Inputs into overall change control include all of the following except:

1. project plan.
   
2. change requests.
   
3. change control system.
   
4. performance reports
   

Answer: C

At XYZ InC., the hourly wage for semi-skilled workers is $14.00. The annual audit shows that fringe benefits cost 30% of basic wages, and that overhead costs are 60% of wages plus fringe benefits. What is the "loaded" hourly wage for a semi-skilled worker at XYZ Inc.?

1. $27.14.
   
2. $28.96.
   
3. $30.03.
   
4. $29.12.
   

Answer: D

Of the following estimates, which most accurately reflect the actual cost of the project?

1. conceptual estimates.
   
2. order of magnitude estimates.
   
3. preliminary estimates.
   
4. bottom-up estimates.
   

Answer: D

The most crucial time for project risk assessment is:

1. when a problem surfaces.
   
2. during the planning phase.
   
3. during the close-out phase.
   
4. after the project schedule has been published.
   

Answer: B

When there is uncertainty associated with one or more aspects of the project, one of the first steps to take is to:

1. revise project plan.
   
2. conduct a risk-benefit analysis.
   
3. conduct a needs analysis.
   
4. increase the estimated cost of the project.
   

Answer: B

Including a contingency reserve in the project budget is intended to:

1. reduce the probability of scope changes.
   
2. increase the probability of scope changes.
   
3. reduce the probability of a cost overrun.
   
4. increase the probability of a cost overrun.
   

Answer: C

Given the information in the following table, what is the expected value from this risk event? Probability Result
.4 -10,000
.3 -7,500
.2 -5,000
.1 +2,500

1. -10,000.
   
2. - 7,500.
   
3. + 2,500.
   
4. -7,000.
   

Answer: D

A contractor is working on a fixed price contract that calls for a single, lump sum payment upon satisfactory completion of the contract. About halfway through the contract, the contractor's project manager informs their contract administrator that financial problems are making it difficult for them to pay their employees and subcontractors. The contractor asks for a partial payment for work accomplished.

Which of the following actions by the buyer is most likely to cause problems for the project?

1. starting partial payments for work accomplished.
   
2. making no payments because it would violate the conditions of the contract.
   
3. paying for work accomplished to date.
   
4. negotiating a change to the payment conditions in the contract.
   

Answer: B

A precise description of a physical item, procedure, or service for implementation of an item or service is called a:

1. work package.
   
2. baseline.
   
3. product description
   
4. work breakdown structure (WBS) element.
   

Answer: C

A project should be terminated for all of the following reasons except:

1. lack of team synergy.
   
2. the project no longer meets the company's objectives.
   
3. the resources are not available to complete project activities.
   
4. project funding has been significantly reduced.
   

Answer: A

One common way to compute estimated at completion (EAC) is to take the project budgeted-at-completion and:

1. divide it by the schedule performance index.
   
2. multiply it by the schedule performance index.
   
3. multiply it by the cost performance.
   
4. divide it by the cost performance index.
   

Answer: D