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Project Management 1

Which of the following is a difference between projects and operations?

a. Projects are undertaken to sustain an organization’s business whereas operations are not.
c. Projects are temporary endeavors whereas an organization’s operations are ongoing in nature.
b. Operations are undertaken to create unique products, services, or results whereas projects are not.
d. Operations have well-defined objectives whereas projects do not need to have a unique purpose.

Projects are temporary endeavors whereas an organization’s operations are ongoing in nature.
Which of the following is true of projects?

a. They have an indefinite beginning and end.
c. They are developed using regressive elaboration.
b. They have a unique purpose.
d. They are permanent in nature.

They have a unique purpose.
The role of a _____ is to provide direction and funding for a project.

a. project sponsor
c. support staff member
b. project manager
d. project team

project sponsor
Galaxy, a construction company, buys a particular brand of tiles manufactured by Tiles and Floors, an eco-friendly tile manufacturing company. However, Tiles and Floors has declared bankruptcy and closed down. At present, Galaxy is facing a crisis because there are no other manufacturers in the market that supplies eco-friendly tiles. Which of the following constraints is Galaxy currently facing?

a. Resources
c. Scope
b. Time
d. Cost

Resources
Steve, an engineer in a construction company, is at present working on a home construction project. The home is being built for the Robinson family, the owners of the home. Steve is working with his project team and support staff to ensure the project is completed on time. In such a scenario, the project sponsor is _____.

a. Steve
c. the project team
b. the support staff
d. the Robinson family

the Robinson family
Project _____ management involves defining and managing all the work required to complete the project successfully.

a. human resource
c. time
b. scope
d. cost

scope
Project _____ management ensures that the project will satisfy the stated or implied needs for which it was undertaken.

a. cost
c. risk
b. time
d. quality

quality
Which of the following project management knowledge areas primarily involve generating, collecting, disseminating, and storing project information?

a. Project cost management
c. Project time management
b. Project procurement management
d. Project communications management

project communications management
Project procurement management mainly involves:

a. making effective use of the people involved with the project.
c. generating, collecting, disseminating, and storing project information.
b. buying goods and services for a project from outside the performing organization.
d. identifying and analyzing stakeholder needs while managing and controlling their engagement.

buying goods and services for a project from outside the performing organization.
Which of the following project management knowledge areas is an overarching function that affects and is affected by the different knowledge areas?

a. Project cost management
c. Project integration management
b. Project stakeholder management
d. Project communications management

project integration management
An important tool for project scope management is _____.

a. fast tracking
c. a Gantt chart
b. crashing
d. a work breakdown structure

a work breakdown structure
Which of the following tools are most likely to be used in project time management?
a. Payback analysis
c. Gantt charts
b. Impact matrices
d. Fishbone diagrams
Gantt charts
Fast tracking is an example of a tool used in _____ management.

a. time
c. communication
b. quality
d. risk

time
In which of the following areas of management is payback analysis most likely to be used?
a. Human resource
c. Cost
b. Communication
d. Quality
cost
A _____ is a tool used in quality management.

a. probability matrice
c. request for proposal
b. checklist
d. critical path analysis

checklist
Team building exercises and motivation techniques are tools used in _____ management.
a. procurement
c. human resource
b. scope
d. cost
human resource
Which of the following tools can best help in efficient communication management?

a. Kick-off meetings
c. Requests for quotes
b. Impact matrices
d. Fast tracking

kick-off meetings
A _____ is a tool used in risk management.

a. work breakdown structure
c. critical path analysis
b. project organizational chart
d. probability matrice

probability matrice
Which of the following statements is true of project management?

a. It is a simple discipline with a limited scope.
c. It does not guarantee successes for all projects.
b. It has specific tools which work universally across all kinds of projects.
d. Its framework consists solely of project management knowledge areas.

It does not guarantee successes for all projects.
Which of the following is true of program managers?

a. They report to project managers who represent the next level in the hierarchy.
c. They provide leadership and direction for project managers heading the projects within a program.
b. They recognize that managing a program is simpler than managing a project.
d. They are responsible solely for the delivery of project results.

They provide leadership and direction for project managers heading the projects within a program.
Which of the following is a difference between project management and portfolio
management?

a. Project management involves making wise investment decisions whereas portfolio management does not.
c. Portfolio management asks questions like, “Are we carrying out projects efficiently?” whereas project management asks questions such as “Are we investing in the right areas?”
b. Portfolio management is an easy task whereas project management is a more difficult task. d. Project management addresses specific, short-term goals whereas portfolio management focuses on long-term goals.

Project management addresses specific, short-term goals whereas portfolio management focuses on long-term goals.
A difference between strategic and tactical goals is that:

a. strategic goals are more specific than tactical goals.
c. tactical goals are more important for a project than strategic goals.
b. tactical goals encompass broader dimensions than strategic goals.
d. strategic goals are long-term in nature whereas tactical goals are short-term.

strategic goals are long-term in nature whereas tactical goals are short-term
23. Which of the following questions reflect the strategic goals of project portfolio management?

a. Are we carrying out projects well?
c. Are we investing in the right areas?
b. Are projects on time and on budget?
d. Do stakeholders know what they should be doing?

Are we investing in the right areas?
Martha works as a project manager at a bank. Due to certain changes in external factors, Martha needs to make a few alterations in the tactical goals of her project. In such a scenario, which of the following will best help Martha cope with the change?

a. Negotiation
b. Project environment knowledge
c. Motivation
d. Soft skills

Project environment knowledge
Joe is a project manager in an IT company and has over the years, gained substantial knowledge in his area of work. However, while managing his team, he often loses his temper. In addition, he fails to be an active listener when his team members approach him with work related challenges. In which of the following areas does Joe need to develop his skills in?

a. Application area knowledge
b. Project environment knowledge
c. Standards and regulations
d. Human relations skills

Human relation skills
Which of the following best defines the role of leaders?

a. They focus on short-term objectives.
c. They work solely toward day-to-day details of meeting specific tasks.
b. They work on achieving primarily tactical goals.
d. They inspire people to reach goals.

They inspire people to reach goals
A Gantt chart is a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a ____ format.

a. calendar
c. bar graph
b. line graph
d. pie chart

calendar
A critical path:

a. is the shortest path through a network diagram.
c. determines the earliest completion date of a project.
b. represents schedule information in calendar form.
d. is a quality management tool to ensure a project meets the minimum quality standards.

determines the earliest completion date of a project.
A _____ is an organizational group responsible for coordinating the project management function throughout an organization.

a. Project Management Office
c. Project Management Center
b. Project Management Professional
d. Portfolio Group

Project Management Office
Which of the following provides certification as a Project Management Professional?

a. PMS
c. PMI
b. PMC
d. PMP

PMI
Which of the following refers to a set of principles that guides decision making based on personal values of what is considered right and wrong?

a. Ethics
c. Laws
b. Civics
d. Politics

Ethics
Which of the following is true of low-end tools of the project management software?

a. They are designed for especially large projects with multiple users.
c. They provide basic project management features.
b. Their main advantage is that they have unlimited functionality.
d. They are referred to as an enterprise project management software.

They provide basic project management features.
Which of the following types of tools is usually recommended for small projects and single users?

a. Low-end
c. High-end
b. Midrange
d. Upper range

Low-end
Enterprise project management softwares are also known as _____ tools of project management software.

a. baseline
c. low-end
b. midrange
d. high-end

high-end
Which of the following is a difference between low-end and midrange tools of the project management software?

a. Low-end tools are designed to handle primarily multiple users whereas midrange tools are created to handle single users.
c. Midrange tools provide basic project management features whereas low-end tools offer enterprise and portfolio management functions.
b. Low-end tools provide robust capabilities to handle dispersed workgroups whereas midrange tools do not.
d. Midrange tools are designed to handle larger projects than low-end tools.

Midrange tools are designed to handle larger projects than low-end tools.
Projects must operate in a broad organizational environment, and project managers need to consider projects within the greater organizational context. _____ describes this holistic view of carrying out projects within the context of the organization.

a. Linear analysis
c. Reductionism
b. Systems thinking
d. The silo approach

Systems thinking
_____ refers to a problem-solving approach that requires defining the scope of a system, dividing it into its components, and then identifying and evaluating its problems, opportunities, constraints, and needs.

a. Linear programming
c. Principal component analysis
b. Independent component analysis
d. Systems analysis

Systems analysis
The symbolic perspective of an organization:

a. focuses on different groups’ roles and
responsibilities to meet the goals and policies set by top management.
c. focuses on providing harmony between the needs of the organization and the needs of people.
b. views the organization as coalitions composed of varied individuals and interest groups.
d. focuses on the meanings of the culture, language, traditions, and image of the organization.

focuses on the meanings of the culture, language, traditions, and image of the organization.
The _____ perspective of an organization focuses on different groups’ roles and responsibilities in order to meet the goals and policies set by top management.

a. structural frame
c. political frame
b. human resources frame
d. symbolic frame

structural frame
The _____ frame of an organization focuses on providing harmony between the needs of the organization and the needs of people.

a. structural
c. political
b. human resources
d. symbolic

human resources
The _____ perspective on organizations assumes that organizations are coalitions composed of varied individuals and interest groups.

a. political frame
c. structural frame
b. symbolic frame
d. human resources frame

political frame
Grey’s Infotech sells customized hardware and software solutions for businesses. The salespeople for Grey’s have a strict dress code when meeting clients. They are required to wear dark business suits, in order to convey the company’s dedication to quality. The meaning conveyed to the clients’ through the salespeople’s clothing is part of the _____ frame of the organization.

a. political
c. structural
b. symbolic
d. human resources

symbolic
In Rizzati Corp, vice presidents in departments such as engineering, manufacturing, IT, and human resources report directly to the chief executive officer and undertake their tasks independently of each other. The staffs of these departments have specialized skills in their respective disciplines.Rizatti Corp can be said to have a _____ organizational structure.

a. project
c. matrix
b. symbolic
d. functional

functional
In a _____organizational structure, program managers, rather than functional managers or vice presidents, report to the CEO. Their staffs have a variety of skills needed to complete all required tasks within their programs.

a. project
c. matrix
b. symbolic
d. functional

project
In a _____ organizational structure, personnel often report to both a functional manager and one or more project managers.

a. project
c. matrix
b. symbolic
d. functional

matrix
Project managers have the most authority in a pure _____ organizational structure.

a. functional
c. matrix
b. project
d. circular

project
Project managers have the least amount of authority in a pure _____ organizational structure.

a. functional
c. matrix
b. project
d. circular

functional
Which of the following is true of a matrix organizational structure?

a. In a matrix organizational structure, employees are organized into departments according to their skills, and there is little interaction between employees from different departments.
c. In a strong matrix organizational structure, the project manager controls the project budget and has moderate to high authority.
b. Project managers in matrix organizations have staff from only a single functional area working
on their projects.
d. A matrix organizational structure is hierarchical, but instead of functional
managers reporting to the CEO, program managers report to the CEO.

In a strong matrix organizational structure, the project manager controls the project budget and has moderate to high authority.
_____ refers to a set of shared assumptions, values, and behaviors that characterize the functioning of an organization.

a. Chain of command
c. Organizational culture
b. Line of control
d. Organizational structure

Organizational culture
The _____ characteristic of organizational culture describes the degree to which management’s decisions take into account the effect of outcomes on people within the organization.

a. member identity
c. people focus
b. group emphasis
d. unit integration

people focus
_____ refers to the degree to employees identify with the organization as a whole, rather than with their types of job or profession.

a. Member identity
c. Group emphasis
b. People focus
d. Unit integration

member identity
_____refers to the degree to which departments within an organization are encouraged to coordinate with each other.

a. Member identity
c. Group emphasis
b. People focus
d. Unit integration

unit integration
In organizational culture, people focus refers to _____.

a. the degree to which the organization monitors and responds to changes in the external environment
c. the degree to which management ‘s decisions take into account the effect of outcomes on employees within the organization
b. the degree to which rules, policies, and direct supervision are used to oversee and control employee behavior
d. the degree to which employees are encouraged to be aggressive, innovative, and risk seeking

the degree to which management ‘s decisions take into account the effect of outcomes on employees within the organization
In organizational culture, means-end orientation refers to _____.

a. the degree to which the organization monitors and responds to changes in the external environment
c. the degree to which management focuses on outcomes rather than on techniques and processes used to achieve results
b. the degree to which rules, policies, and direct supervision are used to oversee and control employee behavior
d. the degree to which employees are encouraged to be aggressive, innovative, and risk seeking

the degree to which management focuses on outcomes rather than on techniques and processes used to achieve results
_____ refers to the degree to which the organization monitors and responds to changes in the external environment.

a. Means-ends orientation
c. Conflict tolerance
b. Open-systems focus
d. Risk tolerance

open-systems focus
In organizational culture, control refers to _____.

a. the degree to which the organization monitors and responds to changes in the external environment
c. the degree to which management focuses on outcomes rather than on techniques and processes used to achieve results
b. the degree to which rules, policies, and direct supervision are used to oversee employee behavior d. the degree to which employees are encouraged to be aggressive, innovative, and risk seeking

the degree to which rules, policies, and direct supervision are used to oversee employee behavior
_____ are an example of external stakeholders for an organization.

a. Top managers
c. Employees
b. Functional managers
d. Competitors

Competitors
A(n) _____ refers to a product or service, such as a technical report, a training session, a piece of hardware, or a segment of software code, produced or provided as part of a project.

a. deliverable
c. system
b. input
d. resource

deliverable
Which of the following is true of the project life cycle?

a. In the early phases of a project life cycle, resource needs are usually lowest.
c. It is much more expensive to make major changes to a project during the earlier phases than the latter phases.
b. In the later phases of the project life cycle, the level of uncertainty is usually the highest.
d. More resources are usually needed during the initial phases of a project
than during the middle or final phases.

In the early phases of a project life cycle, resource needs are usually lowest.
The first two traditional project phases (concept and development) focus on planning, and are often referred to as _____.

a. project feasibility
c. project implementation
b. project acquisition
d. project close-out

project feasibility
A preliminary or rough cost estimate is developed in the _____ phase of the project life cycle, and an overview of the work involved is created.

a. implementation
c. concept
b. acquisition
d. close-out

concept
In the development phase of the project life cycle:

a. the project team creates more detailed project plans, a more accurate cost estimate, and a more thorough WBS.
c. managers develop a business case, which describes the need for the project and basic underlying concepts.
b. the project team delivers the required
work, and provides performance reports to stakeholders.
d. managers prepare a preliminary or rough cost estimate for the required work.

the project team creates more detailed project plans, a more accurate cost estimate, and a more thorough WBS.
In the _____ phase, the project team creates a definitive or very accurate cost estimate, delivers the required work, and provides performance reports to stakeholders.

a. development
c. concept
b. implementation
d. close-out

implementation
The _____ model of a systems development life cycle assumes that requirements will remain stable after they are defined.

a. spiral life cycle
c. incremental build life cycle
b. waterfall life cycle
d. RAD life cycle

waterfall life cycle
The _____ model of a systems development life cycle provides for progressive development of operational software, with each release providing added capabilities.

a. spiral life cycle
c. waterfall life cycle
b. RAD life cycle
d. incremental build life cycle

incremental life cycle
In the _____ model, developers use a model to generate functional requirements and physical design specifications simultaneously.

a. RAD life cycle
c. spiral life cycle
b. prototyping life cycle
d. incremental build life cycle

prototyping life cycle
The _____ model uses an approach in which developers work with an evolving prototype, using tools such as computer-aided software engineering, joint requirements planning, and joint application design to facilitate rapid prototyping and code generation.

a. incremental build life cycle
c. RAD life cycle
b. waterfall life cycle
d. spiral life cycle

RAD life cycle
Which of the following best describes a kill point in the project life cycle?

a. The period of time given to managers during the feasibility phases to decide on the cost, quality, and time constraints for the project
c. The point of time in the project lifecycle after which it is impossible to terminate a running project
b. A review of the status of a project at each phase of development to determine if it should be continued, redirected, or terminated
d. The final submission of the project deliverables after which the project is terminated

A review of the status of a project at each phase of development to determine if it should be continued, redirected, or terminated
Which of the following is a disadvantage of virtual teams as compared to traditional teams?

a. Increased costs for office space and support
c. Limited flexibility in team working hours
b. Reduced opportunities for informal transfer of information
d. Reduced dependence on technology and processes for accomplishing work

Reduced opportunities for informal transfer of information
Which of the following best describes outsourcing?

a. An organization selling its products in a market outside its domestic market
c. An organization setting up manufacturing and retailing facilities in a new country
b. An organization’s acquisition of goods and services from an outside source
d. An organization’s use of virtual teams with employees located in different countries

An organization’s acquisition of goods and services from an outside source
Which of the following is true of virtual teams?

a. It is easier for a virtual team to build relationships and trust.
c. It is important to select team members carefully.
b. Negative incentives do not impact virtual team members.
d. As they never meet, virtual teams do not have conflicts.

It is important to select team members carefully.
Which of the following is true of the agile approach to software development?

a. In the agile method, requirements and
solutions evolve through collaboration.
c. Agile is a predictive model of software development.
b. An agile approach sets scope goals, but leaves time and cost goals flexible.
d. In the agile approach, requirements must be clearly expressed early in the life cycle.

In the agile method, requirements and
solutions evolve through collaboration.
_____ processes include defining and authorizing a project or project phase.

a. Initiating
c. Executing
b. Planning
d. Monitoring and controlling

Initiating
_____ processes include devising and maintaining a workable scheme to ensure that the project addresses the organization’s needs.

a. Initiating
c. Executing
b. Planning
d. Monitoring and controlling

Planning
Examples of _____ processes include acquiring and developing the project team, performing quality assurance, distributing information, managing stakeholder expectations, and conducting procurements.

a. monitoring and controlling
c. planning
b. executing
d. initiating

executing
A common _____ process is reporting performance, where project stakeholders can identify any necessary changes that may be required to keep the project on track.

a. executing
c. monitoring and controlling
b. closing
d. planning

monitoring and controlling
Administrative activities, such as archiving project files, closing out contracts, documenting lessons learned, and receiving formal acceptance of the delivered work as part of the phase or project, are often involved in _____ processes.

a. monitoring and controlling
c. initiating
b. executing
d. closing

closing
During _____ processes for a new project, the organization recognizes that a new project exists, and completes a project charter as part of this recognition.

a. initiating
c. opening
b. planning
d. controlling

initiating
The project integration management knowledge area maps to the _____ process group through the activities of developing project charters.

a. initiating
c. executing
b. planning
d. monitoring and controlling

initiating
The project scope management knowledge area maps to the _____ process group through the activities of scope validation and scope control.

a. initiating
c. executing
b. planning
d. monitoring and controlling

monitoring and controlling
The project time management knowledge area maps to the _____ process group through the activity of schedule control.

a. initiating
c. executing
b. planning
d. monitoring and controlling

monitoring and controlling
Developing a _____ is a planning process that occurs in the Project Integration Management knowledge area.

a. schedule management plan
c. WBS
b. project management plan
d. quality management

project management plan
_____ is a planning process that is within the Project Scope Management knowledge area.

a. Schedule development c. Creation of a WBS
b. Developing a project management plan
d. Quality planning

Creation of a WBS
The project cost management knowledge area maps to the _____ process group through the activities of estimating costs and budget determination.

a. initiating
c. executing
b. planning
d. monitoring and controlling

planning
The project stakeholder management knowledge area maps to the _____ process group by identifying stakeholders.

a. initiating
c. executing
b. planning
d. monitoring and controlling

initiating
_____ is an iterative software development process that focuses on team productivity and delivers software best practices to all team members.

a. Agile Unified Process c. Rational Unified Process
b. Dynamic Systems Development Method
d. Six Sigma

Rational Unified Process
Which of the following is a pre-initiation task?

a. Drawing up a work breakdown structure
c. Drafting the project charter
b. Developing a business case for a project
d. Identifying stakeholders

Developing a business case for a project
One of the main outputs of the initiation process is _____.

a. creating the work breakdown structure
c. developing the project charter
b. selecting the project manager
d. identifying the project sponsor

developing the project charter
The project management plan is the output of the planning process of project _____.

a. integration management
c. scope management
b. quality management d. procurement management

integration management
Which of the following is a planning process associated with project scope management?

a. Collecting requirements c. Planning schedule management
b. Performing qualitative risk analysis
d. Estimating costs

collecting requirements
The _____ provides a basis for creating the project schedule and performing earned value management for measuring and forecasting project performance.

a. scope statement
c. work breakdown structure
b. cost management plan d. project charter

work breakdown structure
_____ are an output of the executing process of project integration management.

a. Deliverables
c. Resource calendars
b. Issue logs
d. Enterprise environmental factor updates

Deliverables
Enterprise environmental factors are an output of the executing process of _____.

a. project integration management
c. project human resource management
b. project quality management
d. project procurement management

project human resource management
The _____ process involves gaining stakeholder and customer acceptance of the final products and services and bringing the project, or project phase, to an orderly end.

a. executing
c. planning
b. closing
d. monitoring

closing
Organizational process assets update is the output of the closing process of _____.

a. project integration management
c. project procurement management
b. project quality management
d. project time management

project integration management
Which of the following is true about the agile method?

a. It is often used when a project team can express the scope early in the product life cycle.
c. It uses several iterations or deliveries of software instead of waiting until the end of the project to provide a product.
b. It is used when a project team wants to provide a potentially shippable product earlier rather than later.
d. It is used when project teams want to use the predicative approach to a project.

It uses several iterations or deliveries of software instead of waiting until the end of the project to provide a product.
Which of the following project parameters would be compatible with the use of the agile approach?

a. Projects with inexperienced and dispersed teams
c. Projects with clear-up front requirements
b. Projects that have a fairly rigid completion date d. Projects that have more flexible scheduling

projects that have more flexible scheduling
Which of the following activities is a part of the planning process of the Scrum?

a. Determining how many sprints will compose each release
c. Completing tasks each day during sprints
b. Demonstrating the product during a sprint review meeting
d. Creating sprint backlog

Creating sprint backlog
The improvement of the product and process in the Scrum method is discussed at the _____.

a. sprint reflection meeting
c. kick-off meeting
b. sprint review meeting d. daily Scrum meeting

sprint reflection meeting
A _____ is usually not necessary to the Scrum method.

a. team contract
c. Gantt chart
b. velocity estimate
d. product backlog

team contract
A _____ is an important Scrum artifact used to graphically display progress on each sprint during the monitoring and controlling process.

a. WBS
c. burndown chart
b. sprint backlog
d. product backlog

burndown chart
_____ involves working with stakeholders to create the document that formally authorizes a project.

a. Developing the project charter
b. Developing the preliminary project scope statement
c. Developing the project management plan
d. Performing integrated change control

developing the project charter
_____ involves coordinating all planning efforts to create a consistent, coherent document.

a. Developing the project charter
b. Developing the preliminary project scope statement
c. Developing the project management plan
d. Developing the organizational process assets updates

developing the project management plan
The outputs of the _____ process include change request status updates, project management plan updates, and project document updates.

a. initiating
b. planning
c. executing
d. monitoring and controlling

monitoring and controlling
The first step in the planning process is _____.

a. to tie the information technology strategic plan to the organization’s overall strategic plan c. to start defining potential IT projects in terms of their scope, benefits, and constraints
b. to perform a business area analysis
d. to choose which projects to do and assigning resources to work on them

to tie the information technology strategic plan to the organization’s overall strategic plan
The _____ stage of information technology planning outlines business processes that are central to achieving strategic goals and helps determine which ones could most benefit from information technology.

a. project planning
b. business area analysis
c. resource allocation
d. information technology strategy planning

business area analysis
In the _____ stage of selecting information technology projects, organizations define project scope, benefits, and constraints.

a. project planning
b. business area analysis
c. resource allocation
d. information technology strategy planning

project planning
In the _____ stage of selecting information technology projects, organizations select information technology projects.

a. project planning
b. business area analysis
c. resource allocation
d. information technology strategy planning

resource allocation
_____ are new requirements imposed by management, government, or some external influence.

a. Opportunities
c. Problems
b. Charters
d. Directives

Directives
_____ analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time.

a. Cost of capital
c. Cash flow
b. Net present value
d. Payback

Net present value
Benefits minus costs is known as the _____.

a. cost of capital
c. discount factor
b. cash flow
d. opportunity cost of capital

cash flow
The first step in determining the NPV is to _____.

a. determine the estimated costs and benefits for the life of the project and the products it produces
b. determine the discount rate
c. calculate the net present value
d. determine the cash flow

determine the estimated costs and benefits for the life of the project and the products it produces
Which of the following is true of return on investment or ROI?

a. It is always a percentage.
c. It is the result of adding the project costs to the profits.
b. It is always a positive number. d. The lower it is, the better.

It is always a percentage
The _____ is the minimum acceptable rate of return on an investment.

a. capitalization rate
c. discount rate
b. internal rate of return
d. required rate of return

required rate of return
Payback occurs when:

a. the net cumulative benefits minus costs equal one.
c. the net costs are lower than the cumulative benefits.
b. the net cumulative benefits equal the net cumulative costs.
d. the cumulative benefits are double the cumulative costs.

the net cumulative benefits equal the net cumulative costs.
A project’s internal rate of return can be determined by finding what discount rate results in an NPV of _____ for the project.

a. zero
c. a hundred percent
b. one
d. fifty percent

zero
In a weighted scoring model, the sum of the weights of all the criteria must total _____ percent.

a. 10
c. 100
b. 50
d. 150

100
A _____ is a document that recognizes the existence of a project and provides direction on the project’s objectives and management.

a. stakeholder register
c. directive
b. risk register
d. project charter

project charter
The business case includes information on _____.

a. the business need for the project
c. the project objective, high-level requirements, and time and cost goals
b. relevant government or industry standards
d. policies, procedures, guidelines, and systems that influence a project’s success

the project objective, high-level requirements, and time and cost goals
Which of the following are organizational process assets?

a. Management systems c. Government standards
b. The organization’s infrastructure
d. Marketplace conditions

management systems
A _____ is a document used to coordinate all project planning documents and help guide a project’s execution and control.

a. project management plan
c. scope statement
b. statement of work
d. business case

project management plan
The _____ section of the project plan should describe the major project functions and activities and identify those individuals who are in charge of them.

a. organizational charts
b. other organizational or process-related information
c. project responsibilities
d. management objectives

project responsibilities
The _____ section of the project management plan describes how to monitor project progress and handle changes.

a. management objectives c. risk management
b. project controls
d. technical processes

project controls
The project schedule information section of the project management plan includes ____.

a. a detailed budget
c. an elaborate timetable
b. a list of key deliverables d. a directory of staff involved in the project

an elaborate timetable
The _____ section of the project management plan describes specific methodologies a project might use and explains how to document information.

a. management objectives c. risk management
b. project controls
d. technical processes

technical processes
The majority of time on a project is usually spent on _____, as is most of the project’s budget.

a. execution
c. closing
b. planning
d. monitoring and controlling

execution
_____ should result in improvements in project performance.

a. Corrective actions
c. Preventive actions
b. Defect repairs
d. Product acceptance plans

corrective actions
Which of the following is a proactive process undertaken to reduce the probability of negative consequences associated with project risks?

a. Performance reports c. Defect repairs
b. Preventive actions
d. Corrective actions

preventive actions
An IT company revises its process parameters in response to complaints from vendors that products were not ready on time. This would be an example of _____.

a. cost forecasting
c. defect repairs
b. a preventive action
d. a corrective action

a corrective action
A(n) _____ is a formal, documented process that describes when and how official project documents may be modified, the people authorized to make modifications, and the paperwork required for these changes.

a. WBS
c. performance report
b. project charter
d. change control system

change control system
_____ involves identifying and controlling the functional and physical design characteristics of products and their support documentation, and ensures that the descriptions of the project’s products are correct and complete.

a. NPV analysis
c. Configuration management
b. Project management information systems
d. Project time management

configuration management
The term ______ describes a product produced as part of a project.

a. variance
c. deliverable
b. scope
d. work package

deliverable
Scope refers to:

a. each level of work that is outlined in a work breakdown structure.
c. tasks that are decomposed into smaller tasks in a work breakdown structure.
b. the end product created as part of a project that is delivered to the client.
d. the work involved in creating the products and the processes used to create them.

the work involved in creating the products and the processes used to create them.
_____ involves defining and documenting the features and functions of the products produced during the project as well as the processes used for creating them.

a. Collecting requirements c. Controlling scope
b. Defining scope
d. Validating scope

collecting requirements
_____ involves reviewing the project charter, requirements documents, and organizational process assets to create a scope statement, adding more information as requirements are developed and change requests are approved.
a. Creating scope c. Controlling scope
b. Defining scope d. Validating scope
defining scope
_____ involves formalizing acceptance of the project deliverables and during this phase the key project stakeholders, such as the customer and sponsor for the project, inspect and then formally accept the
deliverables.

a. Creating scope
c. Controlling scope
b. Defining scope
d. Validating scope

validating scope
Creating the WBS is a subprocess associated with the _____ process in project scope management.

a. planning
c. closing
b. monitoring and controlling
d. executing

planning
The ______ documents how project needs will be analyzed, documented, and managed.

a. requirements traceability matrix
c. WBS
b. requirements management plan
d. project scope statement

requirements management plan
Generating ideas by comparing specific project practices or product characteristics to those of other projects or products inside or outside the performing organization is known as _____.

a. variance
c. prototyping
b. benchmarking
d. decomposition

benchmarking
A(n) _____ is a table that lists requirements, their various attributes, and the status of the requirements to ensure that all are addressed.

a. requirements traceability matrix
c. state transition table
b. Gantt chart
d. entity-attribute-value model

requirements traceability matrix
A(n) _____ is a deliverable-oriented grouping of the work involved in a project that defines the total scope of the project.

a. project charter
c. project scope statement
b. business case
d. work breakdown structure

work breakdown structure
The main technique used in creating a WBS is _____, which involves subdividing project deliverables into smaller pieces.

a. conglomeration
c. decomposition
b. accumulation
d. catalyzation

decomposition
A(n) ____ is a task at the lowest level of the WBS.

a. variance
c. deliverable
b. objective
d. work package

work package
The _____ should list and describe all of the deliverables required for the project.

a. project charter
c. WBS
b. scope statement
d. Gantt chart

scope statement
In the _____approach for constructing a WBS, you use a similar project’s WBS as a starting point.

a. top-down
c. mind-mapping
b. bottom-up
d. analogy

analogy
The _____ approach for constructing a WBS involves refining the work into greater and greater levels of detail.

a. analogy
c. top-down
b. bottom-up
d. mind mapping

top-down
The _____ approach for constructing a WBS starts with the largest items of the project and breaks them into subordinate items.

a. analogy
c. top-down
b. bottom-up
d. mind mapping

top-down
In the _____ approach, team members first identify as many specific tasks related to the project as possible and then aggregate the specific tasks and organize them into summary activities, or higher levels in the WBS.

a. analogy
c. top-down
b. bottom-up
d. mind mapping

bottom-up
The _____ technique for creating a WBS uses branches radiating from a core idea to structure thoughts and ideas instead of writing down tasks in a list or immediately trying to create a structure for tasks.

a. analogy
c. top-down
b. bottom-up
d. mind mapping

mind mapping
Which of the following is recommended for the creation of a good WBS?

a. Any WBS item should be the responsibility of all the people working on it.
c. Each WBS item should be created assuming that the requirements are inflexible.
b. A unit of work should appear at only one place in the WBS.
d. The work content of a WBS item is independent of the WBS items below it.

A unit of work should appear at only one place in the WBS.
Scope creep refers to:

a. the tendency for project scope to keep getting bigger and bigger.
c. the approved project scope statement and its associated WBS.
b. subdividing project deliverables into smaller pieces.
d. a task at the lowest level of the WBS.

the tendency for project scope to keep getting bigger and bigger.
_____ involves formal acceptance of the completed project scope by the stakeholders.

a. Scope validation
c. Scope control
b. Scope planning
d. Scope baseline

Scope validation
_____ refers to the difference between planned and actual performance.

a. Decomposition
c. Scope validation
b. Variance
d. Scope creep

Variance
_____ refers to the process of developing a working replica of the system or some aspect of the system.

a. Prototyping
c. Decomposition
b. Variance
d. Use case modeling

prototyping
_____ is a process for identifying and modeling business events, who initiated them, and how the system should respond to them.

a. Prototyping
c. RAD
b. JAD
d. Use case modeling

use case modeling
_____ uses highly organized and intensive workshops to bring together project stakeholders—the sponsor, users, business analysts, programmers, and so on—to jointly define and design information systems.

a. Prototyping
c. RAD
b. JAD
d. Use case modeling

JAD
The first process involved in project time management is _____ .

a. defining activities
c. planning schedule management
b. estimating activity durations
d. sequencing activities

planning schedule management
Which of the following processes in project time management involves identifying the specific tasks that the project team members and stakeholders must perform to produce the project deliverables?

a. Defining activities
c. Developing the schedule
b. Sequencing activities d. Estimating activity durations

defining activities
In project time management, which of the following processes generate the main outputs of an activity list, activity attributes, and a milestone list?

a. Sequencing activities c. Resource estimating activities
b. Defining activities
d. Estimating activity durations

defining activities
In project time management, which of the following processes primarily involve identifying and documenting the relationships between project activities?

a. Defining activities
c. Planning schedule management
b. Sequencing activities d. Estimating activity durations

sequencing activities
In project time management, which of the following processes involve calculating the number of work periods that are needed to complete individual activities?

a. Defining activities
c. Planning schedule management
b. Sequencing activities d. Estimating activity durations

estimating activity durations
In project time management, which of the following processes involve analyzing activity sequences, activity resource estimates, and activity duration estimates to create the project schedule?

a. Planning schedule management
c. Controlling the schedule
b. Developing the schedule d. Defining activities

developing schedule
In project time management, the process of_____ primarily involves checking and managing changes to the project schedule.

a. estimating activity durations
c. controlling the schedule
b. developing the schedule d. estimating activity resources

controlling the schedule
In project time management, a(n) _____ is an output of controlling the schedule

a. activity duration estimate c. activity attribute
b. project management plan update
d. milestones list

project management plan update
Which of the following documents is most likely to include planned project start and end dates which serve as the starting points for a detailed schedule?

a. Resource breakdown structure
c. Organizational process assets update
b. Milestones list
d. Project charter

project charter
Which of the following is a difference between an activity list and an activity attribute?

a. As opposed to an activity attribute, an activity list provides resource requirements and constraints related to activities.
c. An activity attribute is a tabulation of activities to be included on a project schedule whereas an activity list is not.
b. An activity list provides a more concrete list of milestones for a project than an activity attribute.
d. An activity attribute provides more schedule-related information about each activity than an activity list.

An activity attribute provides more schedule-related information about each activity than an activity list.
A(n) _____ on a project is a significant event that normally has no duration.

a. milestone
c. activity sequence
b. activity attribute
d. schedule baseline

milestone
In project time management, the main goal of _____ is to ensure that the project team has complete understanding of all the work they must do as part of the project scope so they can start scheduling the work.

a. defining activities
c. estimating activity resources
b. estimating activity durations
d. controlling the schedule

defining activities
In project time management, the next step after defining project activities is:

a. planning schedule management.
c. controlling the schedule.
b. determining their dependencies.
d. estimating activity duration.

determining their dependencies
Which of the following types of dependencies are inherent in the nature of work being performed on a project?

a. Mandatory
c. External
b. Discretionary
d. Random

mandatory
_____ dependencies are sometimes referred to as soft logic and should be used with care because they may limit later scheduling options.

a. Mandatory
c. External
b. Discretionary
d. Inherent

discretionary
Which of the following dependencies involve relationships between project and non-project activities?

a. Mandatory
c. External
b. Discretionary
d. Inherent

external
In an AOA network diagram, _____ occur when two or more activities follow a single node.

a. combinations
c. mergers
b. buffers
d. bursts

bursts
A network diagramming technique in which boxes represent activities is known as a(n) _____.

a. PDM
c. ADM
b. CPM
d. PERT

PDM
AOA network diagrams use only _____ dependencies.

a. start-to-start
c. finish-to-finish
b. finish-to-start
d. start-to-finish

finish-to-start
Which of the following is a relationship in which the “from” activity cannot start until the “to” activity is started?

a. Start-to-start
c. Finish-to-start
b. Finish-to-finish
d. Start-to-finish

start-to-start
Which of the following is true of a finsih-to-finish dependency?

a. It is a dependency in which the “from” activity cannot start until the “to” activity or successor is started.
c. It is a dependency in which the “from” activity must be finished before the “to” activity can be finished.
b. It is a dependency in which in which the “from” activity must finish before the “to” activity or successor can start.
d. It is a dependency in which the “from” activity must start before the “to” activity can be finished.

It is a dependency in which the “from” activity must be finished before the “to” activity can be finished.
Which of the following is true of dummy activities?

a. They have long durations.
c. They have a large range of resources.
b. They show logical relationships between activities.
d. They have limited time periods.

They show logical relationships between activities.
Which of the following is one of the main outputs of estimating activity resources process?

a. Project documents update
c. Work breakdown structure
b. Milestone list
d. Activity duration estimate

Project documents update
After working with key stakeholders to define activities and calculate their resources, the next process in project time management is to:

a. develop the schedule. c. determine their dependencies.
b. control the schedule. d. estimate the duration of activities.

estimate the duration of activities
In project time management, the ultimate goal of _____ is to provide a basis for monitoring
project progress for the time dimension of the project.

a. defining activities
c. developing a schedule
b. sequencing activities d. estimating activity resources

developing a schedule
_____ provide(s) a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a calendar format.

a. Gantt charts
c. Arrow diagramming method
b. Critical path analysis d. PERT analysis

Gantt charts
Which of the following is a network diagramming technique used primarily to predict total project duration?

a. Gantt chart
c. Resource breakdown structure
b. Critical path analysis d. Arrow diagramming method

Critical path analysis
The critical path is the _____ path through a network diagram, and it represents the _____ amount of slack or float.

a. longest; longest
c. shortest; longest
b. longest; shortest
d. shortest; shortest

longest, shortest
The amount of time an activity can be delayed without delaying the early start date of any immediately following activities is known as a _____.

a. forward pass
c. fast tracking
b. backward pass
d. free slack

free slack
_____ is the amount of time an activity can be delayed from its early start without delaying the planned project finish date.

a. Total slack
c. Backward pass
b. Free float
d. Forward pass

total slack
The _____ for an activity is the latest possible time an activity might begin without delaying the project finish date.

a. early finish date
c. late start date
b. late finish date
d. early start date

late start date
The technique for making cost and schedule trade-offs to obtain the greatest amount of schedule compression for the least incremental cost is known as _____.

a. dependency
c. critical chain scheduling
b. crashing
d. feeding buffers

crashing
Which of the following techniques involve doing activities in parallel that one would normally do in sequence?

a. Critical chain scheduling c. Fast tracking
b. Crashing
d. PERT analysis

fast tracking
A similarity between the crashing technique and the fast tracking technique is that:

a. both spread out tasks over a long period of time to ensure the quality of work is maintained.
c. both can shorten the time needed to finish a project.
b. both invariably result in increases in total project costs.
d. both are network diagramming techniques used primarily to predict total project duration.

both can shorten the time needed to finish a project.
Critical chain scheduling protects tasks on the critical chain from being delayed by using _____, which consist of additional time added before tasks on the critical chain that are preceded by non-critical-path tasks.

a. critical paths
c. dummy activities
b. feeding buffers
d. fast tracking

feeding buffers
_____ states that work expands to fill the time allowed.

a. Murphy’s Law
c. Parkinson’s Law
b. Miller’s Law
d. Einstein’s Law

Parkinson’s Law
A difference between the Program Evaluation and Review Technique (PERT) and critical path method (CPM) is that:

a. CPM addresses the risk associated with duration estimates whereas PERT does not.
c. CPM involves more work than PERT because it requires several duration estimates.
b. unlike CPM, PERT estimates only when there is no risk of uncertainty.
d. PERT uses different duration estimates whereas CPM uses one specific duration estimate.

PERT uses different duration estimates whereas CPM uses one specific duration estimate.
Which of the following is a silimarity between scope control and schedule control?

a. Both are initial processes of project time management. c. Both are portions of the integrated change control process under project integration management.
b. Both of their primary goals is to define project goals and miestones.
d. Both of these processes should occur before estimating activity durations.

Both are portions of the integrated change control process under project integration management.
Which of the following is an output of schedule control?

a. Lessons-learned reports c. Resource requirements
b. Activity attributes
d. Milestones list

lesson-learned reports
A draft schedule for a project is most likely to be found in a _____.

a. project buffer
c. resource breakdown structure
b. project charter
d. project’s dummy activities list

project charter
_____ includes the processes required to ensure that a project team completes a project within an approved budget.

a. Project scope management
c. Project time management
b. Project quality management
d. Project cost management

project cost management
Which of the following involves developing an approximation of the costs of resources needed to complete a project?

a. Determining the budget c. Controlling costs
b. Finalising the cost baseline
d. Estimating costs

estimating costs
_____ involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance.

a. Determining the budget c. Controlling costs
b. Finalising policies for project costs
d. Estimating costs

determining the budget
One of the main outputs of the _____ process is a cost baseline.

a. cost controlling
c. cost budgeting
b. cost estimating
d. cost planning

cost budgeting
The process of controlling costs primarily involves:

a. determining the policies for project costs.
c. finalising the procedures for project costs.
b. managing changes to the project budget.
d. determining a basis for estimates.

managing changes to the project budget
Work performance information and cost forecasts are main outputs of the _____ process.

a. cost budgeting
c. cost control
b. cost estimating
d. cost pricing

cost control
Profits may be defined as:

a. expenses plus net income.
c. revenues plus expenses.
b. costs plus revenues. d. revenues minus expenditures.

revenues minus expenditures
_____ helps develop an accurate projection of a project’s financial expenses and benefits.

a. Critical path analysis c. Life cycle costing
b. Fast tracking
d. Crashing

life cycle costing
_____ is a method for determining the estimated annual costs and benefits for a project.

a. Critical path analysis c. Present value analysis
b. Cash flow analysis
d. Requirements analysis

cash flow analysis
Which of the following is true of tangible costs?

a. They cannot be calculated in monetary terms. c. They are difficult to quantify.
b. They can be easily measured.
d. Their examples include goodwill and prestige.

they can be easily measured
_____ are those costs that are difficult to measure in monetary terms.

a. Intangible costs
c. Tangible costs
b. Direct costs
d. Fixed costs

intangible costs
Newtech Inc. hires John for the position of a software programmer to work on their new project. Salary paid to John by Newtech Inc. would be an example of _____ costs.

a. direct
c. sunk
b. indirect
d. intangible

direct
Indirect costs are:

a. directly related to performing the project.
c. those that can be easily controlled by managers.
b. those that cannot be allocated to projects.
d. not directly related to the products or services of a project.

not directly related to the products or services of a project.
Soles is a footwear company which has recently set up its store in Ambrosia. To manufacture its products, Soles incurs a range of different costs. Which of the following would be an example of an indirect cost?

a. Cost of machines to produce shoes
c. Electricity used to run its factories
b. Salary paid to factory workers
d. Cost of leather used to manufacture shoes

Electricity used to run its factories
Good Earth, a company manufacturing packaged food products, sets up its stores in Baltonia. However, a year later, the company closes the store down due to high operating costs. In such a scenario, the money spent in paying for the rent of the store in Baltonia would be an example of _____ costs.

a. recurring
c. sunk
b. direct
d. intangible

sunk
Which of the following is true of contingency reserves?

a. They allow for future situations that can be partially planned for.
c. They are not included in a cost baseline.
b. They are also known as unknown unknowns.
d. They allow for dollar amounts to be used to cover existing, fixed costs.

They allow for future situations that can be partially planned for.
Which of the following reserves allows for future situations that are unpredictable?

a. Contingency reserves c. Known unknowns
b. Management reserves d. Cost baseline reserves

management reserves
The first step in project cost management is:

a. to allocate project cost estimates to individual material resources.
c. to control project costs and monitor cost performance.
b. to plan how costs will be managed.
d. to develop several estimates of costs for different types of resources.

to plan how costs will be managed.
Which of the following is true of a rough order of
magnitude estimate?

a. It is used to allocate money into an organization’s budget.
c. Its timeframe is always less than a year prior to project completion.
b. It provides an estimate of what a project will cost.
d. It is a type of estimate that is done in the final stages of a project.

It provides an estimate of what a project will cost.
A rough order of magnitude estimate can be referred to as a _____ estimate.

a. definitive
c. final
b. budgetary
d. ballpark

ballpark
A cost estimation tool which is used to allocate money into an organization’s budget is known as a _____ estimate.

a. budgetary
c. rough order of magnitude
b. definitive
d. ballpark

budgetary
A _____ estimate is used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs.

a. budgetary
c. rough order of magnitude
b. definitive
d. final

definitive
Which of the following types of estimate use the actual cost of a previous, similar project as the basis for estimating the cost of the current project?

a. Definitive estimates
c. Bottom-up estimates
b. Parametric estimates d. Analogous estimates

analogous estimates
Analogous estimates are also known as _____ estimates.

a. bottom-up
c. parametric
b. top-down
d. budgetary

top-down
Which of the following is true of analogous estimates?

a. Their main disadvantage is that they cost more than other techniques.
c. They are most reliable when previous projects are similar in fact with current projects.
b. They are the only technique which do not require expert judgement. d. They use project characteristics in a mathematical model to estimate project costs.

They are most reliable when previous projects are similar in fact with current projects.
A cost estimation tool which involves estimating individual work items or activities and summing them to get a project total is known as a(n) _____ estimate.

a. budgetary
c. bottom-up
b. parametric
d. analogous

bottom-up
Which of the following is true of bottom-up estimates?

a. They are based on the actual cost of a previous, similar project.
c. They are most accurate when they involve large, extensive work items.
b. They are also known as parametric estimating.
d. They are time-intensive and expensive to develop.

They are time-intensive and expensive to develop.
_____ uses project characteristics in a mathematical model to estimate project costs.

a. Rough order of magnitude estimating
c. Bottom-up estimating
b. Parametric estimating d. Analogous estimating

parametric estimating
Which of the following is most likely to be a reason for inaccuracies in information technology cost estimates?

a. Estimates take a long time to be worked out.
c. Human beings are biased toward overestimation.
b. People lack estimating experience.
d. Only software development provides the scope for estimates to be accurate.

people lack estimating experience
If the cost estimate for a project is a basis for contract awards and performance reporting, it should be a(n) _____ estimate and as accurate as possible.

a. budgetary
c. rough order of magnitude
b. definitive
d. analogous

definitive
The main goal of the _____ process is to produce a cost baseline for measuring project performance and project funding requirements.

a. cost budgeting
c. cost controlling
b. cost planning
d. cost estimating

cost budgeting
Which of the following is an output of the process of controlling costs?

a. Cost forecasts
c. Basis of estimates
b. Project funding requirements
d. Scope baselines

cost forecasts
Which of the following is an input of the process of controlling costs?

a. Cost forecasts
c. Change requests
b. Work performance data d. Scope baseline

work performance data
The budget is one of the three values of earned value management and is also known as _____.

a. earned value
c. indirect cost
b. actual cost
d. planned value

planned value
Which of the following is true of earned value?

a. It is the actual cost plus the planned cost.
c. It is an estimate of the value of the physical work actually completed.
b. It is based solely on the total cost estimate to be spent on an activity.
d. It is also known as the planned value.

It is an estimate of the value of the physical work actually completed.
Variances are calculated by subtracting the actual cost from _____.

a. earned value
c. planned value
b. schedule variance
d. rate of performance

earned value
Cost variance is:

a. the planned value plus actual costs.
c. the rate of performance minus earned value.
b. the earned value minus the actual cost.
d. the planned value minus the rate of performance.

the earned value minus the actual cost
Schedule variance is:

a. the earned value minus the planned value.
c. the planned value plus the earned value.
b. the earned value minus the actual cost.
d. the planned value plus the rate of performance.

the earned value minus the planned value
The cost performance index (CPI):

a. indicates that a project is under budget if CPI is less than one.
c. indicates that the planned and actual costs are equal if CPI is more than one.
b. can be used to estimate the projected cost of completing the project.
d. is the ratio of earned value to planned value.

can be used to estimate the projected cost of completing the project.
Which of the following is true of the schedule performance index (SPI)?

a. It can be used to estimate the projected time to complete the project.
c. It means that a project is ahead of schedule if SPI is lesser than one or hundred percent.
b. It means that a project is behind schedule if an SPI is greater than one.
d. It is the ratio of planned value to actual costs.

It can be used to estimate the projected time to complete the project.

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