PMP Exams - Quick Guide

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PMP Certification Exams Overview

Project Management Professional (PMP) is certification administered by Project Management Institute (PMI), USA. The PMP designation following your name tells your current and potential employers that you have a solid foundation of Project Management Knowledge.

The PMI's salary survey has found that, in the United States and other countries, PMP certified Project Managers are being offered at least 10% more than those without this certification.

Pre−Requisite Qualification

Here is the pre−requisite qualification and experience to appear for the PMI−PMP examination−

• A four−year degree (bachelor's degree or the global equivalent)

• A minimum of 4500 hours of project management experience in last three years.

OR

• A secondary degree (high school diploma, associate's degree, or the global equivalent).

• A minimum of 7500 hours of project management experience in last five years.

AND

• 35 hours of project management education from a registered education provider (REP).

Required supporting documents

• Education Background certificates

• Experience verification Forms(s) that can be a proof of the management experience.

• Certificate of completion of 35 hours training towards Project Management Education meeting above criteria.

Candidates can satisfy the requirement related to 35 Contact Hours of Education - Professional Development Units (PDUs), by successfully attending a training, course or workshop sessions through PMI's Global Registered Education Provider. 1 Hour of training is equivalent to 1 PDU.

For more details, read PMP handbook on the PMI official website

PMBOK® Guide 4th Edition

PMP Certification Expenses

Here is the structure of the expenses you might incur to obtain this prestigious certification.

• Fees to earn 35 PDUs vary from country to country and for various Education Providers. It may vary from $300 to $5000.

• Computer−based Testing (CBT) Fees −

  • If you are a member of PMI then this fees will be $405.00

  • If you are not a member of PMI then it will cost you $555.00

• Re−Examination Fees −

  • If you are a member of PMI then this fees will be $275.00

  • If you are not a member of PMI then it will cost you $375.00

If you are not able to qualify the examination in the first attempt then you can give further attempts by paying re−examination fees, as mentioned above.

PMP Exams Structure

PMI has released a new version of Project Management Body of Knowledge (PMBOK)® and now certification exams will be conducted based on the new version.

This PMP question bank is based on new version of PMBOK, 5th Edition. All the required changes have been incorporated in this tutorial which was earlier based on PMBOK Fourth Edition.

To become a PMP, you would require passing a rigorous multiple−choice examination. This exam is designed to objectively assess and measure your ability to apply project management knowledge in the following five domains −

This computer−based examination is administered globally with translation aids in 13 languages. You will have 4 hours' time to answer 200 questions related to the above five domains.

Out of 200 questions, there will be 25 pretest questions and they would not affect your score. These questions will be placed randomly in question paper and you would not be able to differentiate these questions from other live questions.

Passing Score

As such PMI does not disclose total passing score for any candidate but to pass the exams, according to an assessment by experienced trainers, you must correctly answer at least 61% of 175 live questions. There are no negative marks for wrong answers, so don't leave any question unanswered.

One more important note is that 60% questions will be based on real-life scenarios. Books and tutorials definitely help but real project management experience is a must to pass this examination.

Project Management Fundamentals

What is a Project?

Project is a temporary endeavor undertaken to create a unique product or service.

• Projects are unique.

• Projects are temporary in nature and have a definite beginning and end date.

• Projects are completed when the project goals are achieved or it is determined the project is no longer viable.

• A successful project is one that meets or exceeds the expectations of your stakeholders.

How Unique?

• Product characteristics are progressively elaborated.

• The product or service is different in some way from other product or services.

How Temporary?

• It has a definite beginning and end. effort.

• It is not an ongoing effort such as in operations.

• It ceases when objective has been attained.

• The team is disbanded upon project completion.

Example

Building a road is an example of a project. The process of building a road takes a finite amount of time, and produces a unique product.

Operations, on the other hand, are repetitive. Generating bills every month, and broadcasting news everyday are examples of operations.

Subprojects are components of a project that often contracted out.

What is Project Management?

Project Management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements.

Project management is accomplished through the use of the processes such as −

• Initiating

• Planning

• Executng

• Monitor and Controlling

• Closing

Project managers or the organization can divide projects into above phases to provide better management control with appropriate links to the ongoing operations of the performing organization. Collectively, these phases are known as the project life cycle.

Project managers deliver projects while balancing the following constraints −

• Scope

• Schedule

• Quality

• Resources

• Customer Satisfaction

• Risk

These all are so intertwined that a change in one will most often cause a change in at least one of the others

For example −

• If time is extended, the cost of the project will increase.

• If time extended with the same cost then quality of the product will reduce.

• If scope is extended then cost and time will also extend.

Changes to any of these legs sets off a series of activities that are needed to integrate the change across the project.

What is Program Management?

A program consists of a group of related projects and Program management is the process of managing multiple on going projects. An example would be that of designing, manufacturing and providing support infrastructure for an automobile make.

Program management involves centrally managing and coordinating groups of related projects to meet the objectives of the program.

In some cases Project Management is a subset of Program Management. The project manager may report to the program manager in such cases. A portfolio consists of multiple programs.

What is Portfolio Management?

A portfolio is a collection of projects, programs subportfolios, and operations that are grouped together to facilitate effective management of that work to meet strategic business objectives. Organizations manage their portfolios based on specific goals.

Senior managers or senior management teams typically take on the responsibility of portfolio management for an organization.

Portfolio management encompasses managing the collections of programs and projects in the portfolio. This includes weighing the value of each project, or potential project, against the portfolio's strategic objectives.

Portfolio management also concerns monitoring active projects for adherence to objectives, balancing the portfolio among the other investments of the organization, and assuring the efficient use of resources.

Why do we need Project Management?

We need project management to manage projects effectively and drive them to success. Project Management starts with the decision to start a project upon weighing its need and viability. Once a project starts, it is crucial to watch the project progress at every step so as to ensure it delivers what all is required, in the stipulated time, within the allocated budget. Other drivers influencing the need of project management are −

• Exponential expansion of human knowledge

• Global demand for goods and services

• Global competition

• Team is required to meet the demand with quality and standard.

• Improved control over the project

• Improved performance

• Improved budget and quality

Project Management Skills

Many of the tools and techniques for managing projects are specific to project management. However, effective project management requires that the project management team acquire the following three dimensions of project management competencies −

• Project Management Knowledge Competency − This refers to what the project management team knows about project management.

• Project Management Performance Competency − This refers to what the project management team is able to do or accomplish while applying their project management knowledge.

• Personal Competency − This refers to how the project management team behaves when performing the project or activity.

Interpersonal Skills Management

The management of interpersonal relationships includes −

• Effective communication − The exchange of information

• Influencing the organization − The ability to "get things done"

• Leadership − Developing a vision and strategy, and motivating people to achieve that vision and strategy

• Motivation − Energizing people to achieve high levels of performance and to overcome barriers to change

• Negotiation and conflict management − Conferring with others to come to terms with them or to reach an agreement

• Decision Making − Ability to take decision independently.

• Political and cultural awareness − Important to handle various personal and professional issues.

• Team Building − Ability to create a productive team.

What is PMBOK Guide?

PMBOK Guide is the bible for Project Management. PMBOK stands for Project Management Body of Knowledge. There are ten knowledge areas defined in PMBOK Guide, which are as follows −

• Project Integration Management

• Project Scope Management

• Project Cost Management

• Project Time Management

• Project Risk Management

• Project Quality Management

• Project HR Management

• Project Communication Management

• Project Procurement Management

• Project Stakeholder Management

Each Knowledge area has certain processes. There are a total of 47 processes in PMBOK 5. Each process has following three important parts.

• Inputs

• Tools & Techniques

• Outputs

The PMBOK covers each of the 10 knowledge areas and 47 processes with their inputs, outputs, and tools & techniques.

Further the discipline of Project Management has five process groups.

These are −

• Initiating

• Planning

• Executing

• Monitoring and Controlling

• Closing

Each process is part of one of these five project phases. It is important to know the process group for each of the 47 processes.

Project Integration Management

Here is a list of sample questions which would help you to understand the pattern of questions on Project Integration Management being asked in PMP Certification Exams.

(1) A planning method, which provides details of the work to accomplish, but also provide some preliminary description of the work to be done in later phases is called −

• Expert Judgment

• Rolling wave

• Strategic

• Operational

Answer − B

Hint − In Rolling wave, high level plan is made and detailed plans are made for activities just a little before they have to be executed.

(2) What is the term used for the area that entails processes and activities that define, combine, unify and coordinate the processes and project activities carried out within the various Project Management Process Groups?

• Project Integration Management

• Strategic Management

• Operations Management

• Project Process Management

Answer − A

Hint − See Project Integration Management definition, Page 63, PMBOK 5

(3) When Integration is used under Project Management, it includes all of the following activities except for.

• Unification

• Consolidation

• Communication

• Review

Answer − D

Hint − Refer First para, Page 63, PMBOK 5

(4) One of the initial project documents, issued by senior management, which outlines the authority of the project manager, is called Project charter. As a seller, what other document can be used in this place −

• Work breakdown structure

• Project scope

• Contract

• Internal memo

Answer − C

Hint − A Contract authorizes work for a seller

(5) During the planning development process, at times it is necessary to make certain assumptions to enhance the project plan when the data is not available. In regard to making those assumptions, which one of the following is most true for project planning purposes?

• The assumptions will be considered as true, real, or certain.

• By making the assumption, it tends to reduce the project risk.

• Project assumptions are based upon historical data used for the project.

• Senior management predefines the budget constraints.

Answer − A

Hint − Project scope statement− Assumptions, Page 124, PMBOK 5

(6) A project planning methodology is any structured approach used to guide the project team during development of the project plan. What is an example of this methodology?

• Standard forms or templates.

• Upper management involvement

• Functional work authorizations

• Stakeholders skills

Answer − A

Hint − Use of predefined templates helps achieve standardization in processes

(7) Ahmar, a project manager in a construction company has been authorized to apply the organizational resources to project activities. The authorization comes in the form of.

• Project Management Plan

• Project Charter

• Justifications

• Memos

Answer − B

Hint − Project Charter authorized the manager to obtain access to resources

(8) The process of defining, preparing and organizing all subsidiary plans along with integrating them into the comprehensive project plan is known as.

• Develop Project Charter

• Develop Project Management Plan

• Project Process Groups

• Strategic Management

Answer − B

Hint − Refer Sec 4.2, Page 72, PMBOK 5

(9) The project closing process is essential to overall project planning. What is considered one of the most important steps in closing the project?

• Insuring that plans are produced to implement the project by phases.

• Issuing work orders so that financial data can be collected.

• Transition the lease of equipment to the owner

• Satisfying the contractual obligations

Answer− D

Hint − All the requirements must be fulfilled before the closing process

(10) Each project phase is marked by completion of one or more−

• Tasks.

• Milestones

• Deliverables

• Life cycles

Answer − C

Hint − Some deliverables are produced as outputs from processes performed to complete project work.

(11) Abdullah, a project engineer is working on an IT project that requires him to direct the project activities and initiate the approved changes in the project work. He is executing which activity of the Project Integration Management Process.

• Monitor and Control Project Work

• Perform Integrated Change Control

• Direct and Manage Project Work

• Develop Project Management Plan

Answer − C

Hint − Direct and Manage Project Work, Page 79, PMBOK 5

(12) A project manager in a construction company identified the project activities that were not giving output as per the performance goals outlined in the project management plan. The finding is the result of −

• Monitor and Control Project Work

• Direct and Manage Project Work

• Develop Project Charter

• Devising of Project Management Plan.

Answer − A

Hint − Monitor and Control Project Work, Page 86, PMBOK 5

(13) Murli, a project manager in a Telecom Company got all the project related information listed and improvised in the Organizational Process Assets (OPA) along with its communication across the organization. The process undertaken by him is known as −

• Monitoring and Controlling Project Work

• Closing Project or Phase

• Perform Integrated Change Control

• Directing and Managing Project Work

Answer − C

Hint − Refer to Perform Integrated Change Control, Page 94, PMBOK 5

(14) Rahim, a project manager on a Distribution and Logistic Project is devising a cost estimate for a contingency plan. He will resort to integration of the following except for −

• Cost Management Plan

• Project Schedule

• Risk Register

• Stakeholder Register

Answer − D

Hint − Cost estimate doesn't require a stakeholder register

(15) A project management team working on a manufacturing and materials project complete it on time by undertaking the following activities under the project management plan except for −

• Cost Management

• Time Management

• Performance of Corporate Social Responsibility

• Scope Management

Answer − C

Hint − Corporate Social Responsibility isn't related with project management

(16) For the developing a project charter of an IT project, the project manager utilized various inputs for it that exclude?

• Project statement of work

• Organizational Process Assets

• Enterprise Environmental Factors

• Schedule forecasts

Answer − D

Hint − Schedule comes into picture quite later

(17) Rahim, a project manager in a manufacturing company has devised the project management plan for a project on construction of company premises. The project management plan that will guide project execution and control has been developed on the basis of the following inputs but.

• Project Charter

• Work Performance Information

• Outputs from other processes

• Enterprise Environmental Factors

Answer − B

Hint − Work Performance Information comes as a result of validate scope process

(18) A project manager is directing and managing a project. While doing that, he is utilizing some tools and techniques. The tools and techniques guiding him do not include.

• Change Control Tools

• Expert Judgement

• Project Management Information system

• Meetings

Answer − A

Hint − Change Control Tools are used in Perform Integrated Change Control process

(19) While directing and managing a project, the activities undertaken by the project manager got the following output that excludes.

• Work Performance Data

• Change Log

• Change Requests

• Deliverables

Answer − B

Hint − Change log is an output of Perform Integrated Change Control process

(20) Monitor and Control Project Work is a process that utilizes various inputs for detecting and correcting the shortcomings in any of the areas to ensure achievement of the goals of the project. Which of the following inputs is used for the process?

• Agreements

• Approved Change Requests

• Validated Changes

• Accepted Deliverables

Answer − C

Hint − See Monitor and Control Project Work inputs, Page 65, PMBOK 5

Project Scope Management

Here is a list of sample questions which would help you to understand the pattern of questions on Project Scope Management being asked in PMP Certification Exams.

(1) The process of determining, documenting and managing stakeholder needs and requirements to meet project objectives is known as

• Plan Scope Management

• Collect Requirements

• Control Scope

• Validate Scope

Answer − B

Hint − See Collect Requirement process definition, Page 105, PMBOK 5

(2) The Scope Management Plan is included in which of the following documents?

• Project Management Plan

• The Work Breakdown Structure

• The Scope Statement

• Project Specifications

Answer − A

Hint − Scope Management Plan is a part of Project Management Plan

(3) Project Scope −

• is of concern only at the start of the project

• is mainly a problem to be handled by the change control procedures during the project execution phase.

• Should be managed and controlled from the project concept through closing

• is usually not a problem after the contract or other document authorizing the project has been approved.

Answer − C

Hint − Scope Management is done from the start till the closing phase

(4) The Project charter is created by −

• The project manager

• The sponsor

• The Vice President over a functional management group

• The customer

Answer − B

Hint − It is created by project sponsor(s)

(5) The project scope statement furnishes the basis for −

• clearly defined acceptance criteria

• Provides links to the clients functional management groups

• Allowing the project to move to the next phase

• A way to provide updated information to the accounting department

Answer − A

Hint − See Sec 5.3.3.1, Page 123−24, PMBOK 5

(6) The Scope Baseline is −

• the original description of the project's end results

• a summary description of the project's original content and end product, including basic budgetary and time constraint data

• the original project budget and schedule

• a and c

Answer − B

Hint − See, Sec 5.4.3.1, Page 131, PMBOK 5

(7) The Requirements that describe features, functions and characteristics of the product, service, or result that will meet the business and stakeholders requirements is known as −

• Solution Requirements

• Project Requirements

• Transition Requirements

• Quality Requirements

Answer − A

Hint − See Sec 5.2, Page 112, PMBOK 5

(8) The PM distributed a document to the stakeholders, which described the software to be developed, the functionality, the users it would serve and the installation timeline. The document was an example of −

• Product scope

• Project scope

• A combination of project and product scope

• It was not complete enough to be either a product or a project scope document

Answer − D

Hint − Refer Page 105, PMBOK 5

(9) Each item of the Work Breakdown Structure is assigned a unique identifier. What is the name of this identifier?

• Product ID number

• Code of account identifier

• Quality inspection identifier

• Project activity code

Answer − B

Hint − See code of accounts definition, Page 531, PMBOK 5

(10) What is the term for the technique that utilizes a decision matrix to provide a systematic analytical approach for establishing criteria, such as risk levels, uncertainty, and valuation to evaluate and rank many ideas?

• Idea/mind mapping

• Multicriteria Decision Analysis

• Affinity Diagram

• Both B& C

Answer − B

Hint − See Multi−Criteria Decision Analysis definition, Page 531, PMBOK 5

(11) What is the term used for the processes required to ensure that the project include all the work required, and only the work required, to complete the work successfully.

• Project Scope Management

• Bill of Materials

• Work Breakdown Structure

• None of the above

Answer − A

Hint − See Project Scope Management definition, Page 555, PMBOK 5

(12) Project Scope Management has following processes −

a. Collect Requirements

b. Plan Scope management

c. Define Scope

d. Create WBS

Arrange them in the correct sequence.

• a−b−c−d

• c−d−b−a

• b−a−c−d

• a−c−b−d

Answer − C

Hint − See Page 106, PMBOK 5

(13) In the context of a project, the term scope refer to

• Product Scope

• Project Scope

• Both A & B

• None of the above

Answer − C

Hint − See Page 105, PMBOK 5

(14) 14. A project manager working on the Project Scope Management processes is operating at the Plan Scope Management process, where he is using all of the following inputs excluding

• Project Charter

• Project Management Plan

• EEF

• Requirements Documentation

Answer − D

Hint − See Plan Scope Management inputs, Page 106, PMBOK 5

(15) Which of the following inputs used in the process of Collect Requirements is not the output of the preceding process of Plan Scope Management?

• Scope Management Plan

• Requirement Management Plan

• Stakeholder Register

• None of the above

Answer − C

Hint − Stakeholder Register is an output of Identify Stakeholders process

(16) The various tools and techniques used during the process of Collect Requirements include all but

• Prototypes

• Variance Analysis

• Benchmarking

• Document Analysis

Answer − B

Hint − Variance analysis in not applicable to scope management

(17) Which of the following is not used as an input for the Validate Scope process?

• Scope Baseline

• Verified Deliverables

• Project Management Plan

• Work Performance Data

Answer − A

Hint − See Validate Scope process, Page 106, PMBOK 5

(18) Decomposition is an important tool used to

• Control Scope

• Define Scope

• Validate Scope

• Create WBS

Answer − D

Hint − See Create WBS process, Page 106, PMBOK 5

(19) The focused sessions that bring key stakeholders together to define product requirements is known as

• Interviews

• Focus Groups

• Facilitated Workshops

• None of the above

Answer − C

Hint − See Facilitated Workshops definition, Page 114, PMBOK 5

(20) A grid that links product requirements from their origin to the deliverables that satisfy them is known as

• Context Diagrams

• Affinity Diagram

• Requirements Traceability Matrix

• None of the above

Answer − C

Hint − Read about Requirements Traceability Matrix, Page 118−19, PMBOK 5

Project Time Management

Here is a list of sample questions which would help you to understand the pattern of questions on Project Time Management being asked in PMP Certification Exams.

(1) Milestones established by the customer must be adhered to by −

• Project manager

• Functional managers

• The customer

• Both a and b

Answer − D

Hint − Both Project Manager and Functional Manager are responsible for project team and working towards achieving project milestones.

(2) The decision to request an increase the resources for a project is the responsibility of the −

• Functional manager

• Project manager

• Director of project management

• Customer

Answer − B

Hint − It is Project Manager's responsibility.

(3) In which of the following project phases is the project schedule developed?

• Conceptual

• Planning

• Implementation

• Design

Answer − B

Hint − Refer Process and Knowledge area mapping on Page 61, PMBOK 5

(4) To crash a schedule you should −

• Increase the time allowed on those tasks that have float.

• Try to invest more time on tasks that are behind schedule.

• Replace the team members that are not performing well.

• Put extra resources on those tasks that are on the critical path.

Answer − D

Hint − See Crashing definition on Page 181, PMBOK 5

(5) The process of establishing the policies, procedures and documentation for planning, developing, managing, executing and controlling the project schedule is known as

• Plan Schedule Management

• Control Schedule

• Develop Schedule

• Sequence Activities

Answer −A

Hint − See Plan Schedule Management definition on Page 141, PMBOK 5

(6) Which of the following is NOT one of the primary needs for good project scheduling?

• Clear scope of work

• Decreasing the time required for decision making

• Eliminating idle time

• Developing better trouble shooting procedures

Answer − D

Hint − Effectiveness of trouble shooting procedures doesn't play a role in project scheduling

(7) The inputs used in the Define Activities process includes all but

• Scope baseline

• EEF

• OPA

• Milestone list

Answer − D

Hint − See Figure 6-1, Page 143, PMBOK 5

(8) The successful project managers spend most of their time −

• Planning with their personnel

• Planning with the top management

• Communication with the project team

• Studying project results.

Answer − C

Hint − Communication takes nearly 90 percent of project manager's time.

(9) Resource leveling attempts to −

• Balance the demand and supply of resources considering the availability constraints.

• Ensure that the budget abnormalities are overcome.

• Reduce the amount of resources so that they can be shared with on other endeavors.

• Increase the amount of the project manager's authority so that budget dollars can be appropriated.

Answer − A

Hint − Read about Resource leveling on Page 179, PMBOK 5

(10) The tools and techniques used in Estimate Activity Durations exclude which of the following

• Analogous Estimating

• Group Decision−Making Techniques

• Reserve Analysis

• Leads and Lags

Answer − D

Hint − See Figure 6−1, Page 143, PMBOK 5

(11) The Project Time Management Process consists of following seven processes−

a. Define Activities

b. Develop Schedule

c. Plan Schedule Activities

d. Sequence Activities

e. Estimate Activity Durations

f. Estimate Activity Resources

g. Control Schedule

The correct sequence is −

• a−b−c−d−e−f−g

• c−a−d−f−e−b−g

• b−a−c−d−e−f−g

• b−c−a−d−f−e−g

Answer − B

Hint − See Figure 6−1, Page 143, PMBOK 5

(12) The hierarchical representation of resources by category and type, which is useful for organizing and reporting project schedule data with resources utilization information is known as

• WBS

• Activity Resource requirements

• Resource breakdown Structure

• None of the above

Answer − C

Hint − Read about Resource Breakdown Structure on Page 165, PMBOK 5

(13) The representation of the plan for executing the project's activities including durations, dependencies, and other planning information, used to produce project schedules along with other scheduling artifacts is known as

• Schedule Compression

• Schedule Model

• Schedule Data

• None of the above

Answer − B

Hint − See Schedule Model definition, Page 561, PMBOK 5

(14) A subsidiary plan that identifies a scheduling method and scheduling tool, and sets the format and establishes criteria for developing and controlling the project schedule is known as

• Schedule Management Plan

• Develop Project Management Plan

• Project Schedule Presentation

• Both A & C

Answer − A

Hint − See Schedule Management Plan definition, Page 561, PMBOK 5

(15) Which of the following is the output of the Plan Schedule Management process?

• Activity List

• Schedule Management Plan

• Activity List

• Project Schedule Network Diagram

Answer − B

Hint − See Figure 6−1, Page 143, PMBOK 5

(16) The following inputs are used in both Sequence Activities and Estimate Activity Resources process, excluding

• Schedule Management Plan

• Activity List

• Risk Register

• Activity Attributes

Answer − C

Hint − See Figure 6−1, Page 143, PMBOK 5

(17) What is the term for an iterative planning technique in which the work to be accomplished in the near term is planned in detail, while the work in the future is planned at a higher level

• Decomposition

• Rolling Wave Planning

• Alternative Analysis

• Reserve Analysis

Answer − B

Hint − Refer to Rolling Wave planning on Page 152, PMBOK 5

(18) Abdullah, a project manager is identifying and documenting relationships among the project activities of an IT project. He is undertaking which of the following process?

• Sequence Activities

• Define Activities

• Develop Schedule

• Estimate Activity Durations

Answer − A

Hint − See Sequence Activities on Page 141, PMBOK 5

(19) The logical relationships under Precedence Diagramming Method (PDM) include−

• Finish−to−start

• Start−to−finish

• Predecessor−Follower

• Only A and B

• A, B, and C

Answer − D

Hint − See Precedence Diagramming Method on Page 156, PMBOK 5

(20) The method of estimating project duration or cost by aggregating the estimates of the lower−level components of the WBS is known as−

• Alternative Analysis

• Bottom−up Estimating

• Parametric Estimating

• Three−point estimating

Answer − B

Hint − Read about Bottom−up Estimating on Page 164, PMBOK 5

Project Cost Management

Here is a list of sample questions which would help you to understand the pattern of questions on Project Cost Management being asked in PMP Certification Exams.

(1) Which type of project cost estimate is the most accurate?

• Preliminary

• Definitive

• Order of magnitude

• Conceptual

Answer−B

Hint− Definitive estimates are in range -5% to 10% in accuracy. Page 201, PMBOK 5

(2) Which of the following type of contracts is most preferable to the contractor doing the project work?

• Cost plus fixed fee

• Fixed price

• Fixed price plus incentive free

• B and C

Answer− A

Hint− Cost plus fixed fee covers the actual cost

(3) ) To assist in budget control, it is suggested that an estimate be created at the _____ ____ ______ level of the WBS

• Highest

• Lowest

• Major work effort

• Third

Answer− B

Hint− Work package is the lowest unit of work to estimate cost and duration.

(4) Cost Variance (CV) is which of the following equations?

• CV = EV − PV

• CV = EV − AC

• CV = EV / AC

• A and C

Answer−B

Hint− Cost variance, Page 218, PMBOK 5

(5) Determining budget can be best described by which of the following?

• The process of developing the future trends along with the assessment of probabilities, uncertainties, and inflation that could occur during the project

• The process of accumulating costs of individual activities to establish a cost baseline.

• The process of establishing budgets, standards, and a monitoring system by which the investment cost of the project can be measured and managed

• The process of gathering, accumulating, analyzing, reporting, and managing the costs on an on-going basis

Answer−B

Hint− Page 193, PMBOK 5

(6) Which of the following is a direct project cost?

• Lighting and heating for the corporate office

• Workers Compensation insurance

• Piping for an irrigation project

• A and B

Answer− C

Hint− cost of resources used in a project. See Page 202, PMBOK 5

(7) Control Costs can be best described by which of the following?

• The process of developing the future trends along with the assessment of probabilities, uncertainties, and inflation that could occur during the project

• The process of assembling and predicting costs of a project over its life cycle

• The process of assembling and predicting costs of a project over its life cycle

• The process of monitoring the status of the project to update project costs and managing changes to the cost baseline.

Answer − D

Hint − Control Costs, Page 193, PMBOK 5

(8) The PV = $250, the AC = $350, and the EV = $200. Calculate the Cost Variance.

• −$150

• $150

• −$50

• $50

Answer − A

Hint − CV=EV−AC

(9) One of the types of cost estimation is Rough Order of Magnitude. This estimate −

• is performed when detailed information is available

• is performed after the scope is clearly defined

• is a near perfect estimate

• Usually made before the project is designed, and must therefore rely on the cost data of similar projects built in the past.

Answer − D

Hint − Page 201, PMBOK 5

(10) The sum of all budgets established for the work to be performed is known as −

• Planned Value

• Aggregated Planned Value

• Budget at Completion

• Estimate at Completion

Answer − C

Hint − Refer Table 7-1, Page 224, PMBOK 5

(11) The processes involving planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget fall under

• Project Cost Management

• Project Management Process

• Project Scope Management

• Project Integration Management

Answer − A

Hint − Read First para, Page 193, PMBOK 5

(12) The process that establishes the policies, procedures and documentation for planning, managing, expending, and controlling project costs is known as

• Control Costs

• Estimate Costs

• Plan Cost Management

• Determine Budget

Answer − C

Hint − Page 193, PMBOK 5

(13) The process of monitoring the status of the project to update the project costs and managing changes to the cost baseline is called

• Determine Budget

• Control Costs

• Estimate Costs

• Plan Cost Management

Answer − B

Hint − Page 193, PMBOK 5

(14) The Project Cost Management Process comprises the following activities−

a. Determine Budget

b. Plan Cost Management

c. Estimate Costs

d. Control Costs

What is the correct sequence?

• a−b−c−d

• c−a−b−d

• b−c−a−d

• a−c−b−d

Answer − C

Hint − See Figure 7−1, Page 194, PMBOK 5

(15) The process of developing an approximation of the monetary resources needed to complete project activities is known as

• Estimate Costs

• Determine Budget

• Both A & B

• None of the above

Answer − A

Hint − Page 193, PMBOK 5

(16) Which one of the following is not an input used in the process of Estimate Costs?

• Scope Baseline

• Human Resource Management plan

• Cost Management Plan

• Project Funding Requirements

Answer − D

Hint − See Figure 7−1, Page 194, PMBOK 5

(17) The tools and techniques used in the process of Determine Budget includes all but

• Cost Aggregation

• Cost of Quality

• Expert Judgement

• Historical Relationships

Answer − B

Hint − See Figure 7−1, Page 194, PMBOK 5

(18) Which of the following output of Determine Budget process is not used as an input in the Control Costs Process?

• Project Funding Requirements

• Cost Baseline

• Both A & B

• None of the above

Answer − B

Hint − See Figure 7-1, Page 194, PMBOK 5

(19) Which of the following is not an output of the Control Costs process?

• Cost Forecasts

• Change Requests

• Activity Cost Estimates

• Work Performance Information

Answer − C

Hint − See Figure 7−1, Page 194, PMBOK 5

(20) The tools and techniques used in Control costs includes all but

• To−Complete Performance Index (TCPI)

• Earned Value Management (EVM)

• Reserve Analysis

• Cost Aggregation

Answer − D

Hint − See Figure 7−1, Page 194, PMBOK 5

Project Quality Management

Here is a list of sample questions which would help you to understand the pattern of questions on Project Quality Management being asked in PMP Certification Exams.

(1) A project manager's main responsibility in a project meant to create a product is −

• Ensuring it is high grade

• To pack exciting features in the product

• Ensuring it is high quality

• Creating a product within allocated cost and schedule

Answer − C

Hint − A project manager is responsible to ensure high quality in a way that the final product meets the specifications and quality benchmarks.

(2) The process control charts are used−

• to determine whether a process is or not

• to detect the problem

• to reject the problem

• to determine the acceptability of the work product

Answer − A

Hint − PMBOK 5 page 238 Control charts

(3) The process of identifying quality requirements and/or standards for the project and its deliverables and documenting how the project will demonstrate compliance with quality requirements and/or standards is called−−

• Plan Quality Management

• Control Quality

• Perform Quality Assurance

• Both A & B

Answer − A

Hint − PMBOK 5, Page 231 Sec 8.1 Plan Quality Management

(4) Which of the following doesn't qualify to be a synonym for inspection?

• Audit

• Peer Review

• Process Analysis

• Walkthrough

Answer − C

Hint − Process Analysis is done to identify the root causes of a problem and suggest preventive actions.

(5) The primary components of the quality management function are −

• Plan Quality Management

• Quality Assurance

• quantitative measurement

• quantitative assessment of the project

• a and b

Answer − E

Hint − PMBOK 5 page 230 Figure 8.1 Quality Management Overview

(6) The term for the process and activities of the performing organization that determine quality policies, objectives and responsibilities so that the project will satisfy the needs for which it was undertaken is −

• Project Communications Management

• Project Scope Management

• Project Quality Management

• Project Procurement Management

Answer − C

Hint − PMBOK 5, Page 227

(7) Which of the following has the greatest effect on product's reliability and maintenance characteristic?

• quality

• product design

• pricing

• a and b

Answer − D

Hint − Pricing doesn't impact reliability

(8) On a project the project manager should strive for a "Quality Level" that −

• is the highest level possible

• is as close to the project objectives as possible

• represents the least cost to the project.

• Exceeds the specified requirements of the project.

Answer − B

Hint − PMBOK 5 page 233, Sec 8.1.1 Plan Quality Management− Inputs (Project scope statement)

(9) Quality control in the final analysis is −

• using the process of monitoring project results to decide if the outputs meet the requirements

• a production system

• an inspection system

• fitness for purpose

Answer − A

Hint − PMBOK 5 page 248 Sec 8.3 Control Quality

(10) Cost of Quality includes −

• all costs incurred to assure the production and delivery of acceptable products and services.

• Only costs classified as prevention, detection and corrective action.

• Only the cost of scrap, rework due to defects, customer returns and warranty costs.

• The expense of upper management

Answer − A

Hint − PMBOK 5 page 235 Sec 8.1.2.2 Cost of Quality

(11) The common tools and techniques used in both Plan Quality Management and Control Quality is −

• Cost−Benefit Analysis

• Benchmarking

• Seven Basic Quality Tools

• Inspection

Answer − C

Hint − PMBOK 5, Page 230, Fig 8-1 Project Quality Management Overview

(12) Which of the following outputs of the Plan Quality Management is not used as an input in the Perform Quality Assurance process?

• Quality Management Plan

• Process Improvement Plan

• Quality Metrics

• Quality Checklists

Answer − D

Hint − PMBOK 5, Page 230, Fig 8-1 Project Quality Management Overview

(13) The tools and techniques used in the process of Perform Quality Assurance includes all except −

• Quality Management and Control Tools

• Quality Audits

• Inspection

• Process Analysis

Answer − C

Hint − PMBOK 5, Page 230, Fig-8-1, 8.2

(14) All of the following are the outputs of the Control Quality Process excluding −

• Change Requests

• Quality Metrics

• Quality Control Measurements

• Work Performance Information

Answer − B

Hint − PMBOK 5, Page 230, Fig-8-1

(15) Which of the following are used to identify the vital few sources that are responsible for causing most of a problem's effects?

• Pareto Diagrams

• Check sheets

• Scatter Diagrams

• Control Charts

Answer − A

Hint − PMBOK 5, Page 237 Pareto Diagrams

(16) Also known as correlation charts, the tool used to explain a change in the dependent variable, Y, in a relationship to a change observed in a corresponding independent variable, X is called

• Scatter Diagrams

• Histograms

• Cause-and-effect diagrams

• Pareto Diagrams

Answer − A

Hint − PMBOK 5, Page 238 Scatter diagrams

(17) The statistical method for identifying the factors that may influence specific variables of a product or process under development or in production is called

• Statistical Sampling

• Design of Experiments (DOE)

• Benchmarking

• Cost-Benefit Analysis

Answer − B

Hint − PMBOK 5, Page 239, Sec 8.1.2.5 Design of Experiments

(18) The technique used as an additional quality planning tool and allow ideas to be brainstormed in small groups and then reviewed by a larger group is known as

• Brainstorming

• Nominal Group Technique

• Force − Field Analysis

• Quality Management and Control Tools

Answer − B

Hint − PMBOK 5, Page 240, 8.1.2.7 Brainstorming

(19) Which of the following specifically describes a project or product attribute and how the control quality process will measure it?

• Quality Checklists

• Process Improvement Plan

• Quality Management Plan

• Quality Metrics

Answer − D

Hint − PMBOK 5, Page 242, 8.1.3.4 Quality Checklists

(20) The name for the tool used in Perform Quality Assurance to represent decomposition hierarchies such as the WBS (work breakdown structure), RBS (risk breakdown structure), and OBS (organizational breakdown structure) is −

• Tree Diagrams

• Process decision program charts (PDPC)

• Affinity Diagrams

• Matrix Diagrams

Answer − A

Hint − PMBOK 5, Page 245, 8.2.2.1 Tree diagrams

Project Human Resource Management

Here is a list of sample questions which would help you to understand the pattern of questions on Project Human Resource Management being asked in PMP Certification Exams.

(1) From HR perspective, the project manager's responsibility in the planning role includes −

• Hiring the team

• Preparing org charts

• Developing Staffing management plan

• Feedback sessions

• Both b and c

Answer − E

Hint − PMBOK 5, Page 264 Sec 9.1.3 Plan Human Resource Management: Outputs

(2) Expert power is the power that comes from the amount of knowledge a person has obtained in a specific area. This type of power is −

• Critical to a project manager because the PM has to have as much or more knowledge than any of the team members to make sure the project is completed successfully

• Used by the PM to influence upper management and the critical stakeholders

• Important if the project manager wants to maintain the respect of the project team

• Used sparingly if at all by the PM because the PM is not required to be an expert apart from managing the project

Answer − D

Hint − PMBOK 5, Page 16, Sec 1.7 Role of the Project Manager

(3) To successfully motivate a team in today's high tech - high demand environment, which motivational theories should the PM use to maintain a happy, productive team?

• Expectancy and Theory X

• Theory Y and Maslow's Hierarchy

• Herzberg's Hygiene Factors and Expectancy

• Theory Y, Expectancy and Herzberg's Hygiene Factors

Answer − D

Hint − These theories are finding widespread acceptance in today's business environment.

(4) To successfully manage a project, the project manager must play both a manager and leadership role. In a manager's role, the project manager will do all but which of the following −

• Define Roles and Responsibilities

• Extend favors to some important team members

• Provide feedback to team members

• Resolving interpersonal conflicts

• Both b and d

Answer − B

Hint − PMBOK 5, Page 257, Fig 9-4

(5) To be successful in a functional organization, the PM must rely on:

• Referent power

• Formal authority

• Informal power structure

• Broad span of control

Answer − A

Hint − Referent power is based on the authority extended by a more powerful person. A project manager can exercise the power given by project sponsor to take decisions in the project interest.

(6) Which form of power is the LEAST effective from the project manager's viewpoint in terms of influencing functional managers?

• Formal power

• Expert power

• Penalty power

• Referent power

Answer − C

Hint − Penalty is the least effective forms of influencing and should not be used at all, if possible.

(7) The Project manager should be able to fulfill the role of:

• an integrator

• a functional manager

• a line manager

• a sponsor

Answer − A

Hint − A project manager is responsible for collective project success. Refer PMBOK 5, Page 16, Sec 1.7 Role of the Project Manager

(8) The most successful project manager usually:

• Work their way up from assistants in the project office to full−fledged project managers, supplementing that experience with formal education.

• Comes right from Harvard's MBA program into managing very large projects.

• Are the technical experts.

• Have considerable experience as a functional manager before moving into the project management arena.

Answer − A

Hint − A project manager must have experience in working on projects in various roles including the role of a project manager.

(9) Which of the following is an important action that must be taken by top management when implementing project management in an organization?

• Completely selling the project management concept to the entire organization.

• Choice of the type of project manager.

• Choice of the type of project organization to be utilized.

• All of the above.

Answer − D

Hint − It is important for project success that all stakeholders agree on the importance of project management concepts and theories.

(10) The project manager has the most authority in the __________________ type of organization.

• Project expediter

• Matrix

• Projectized organization

• Functional

Answer − C

Hint − Refer PMBOK 5, Page 22 Table 2-1 Influence of Organizational Structures on Projects; Page 556, Projectized organizatio

(11) The process that organize, manage, and lead the project team for the completion of a project is called

• Project Integration Management

• Project Scope Management

• Project Human Resource Management

• Project Communications Management

Answer − C

Hint − PMBOK 5, Page 255, 1st Paragraph

(12) For the following Project Human Resource Management Processes

• Plan Human Resource Management

• Develop Project Team

• Acquire Project Team

• Manage Project Team

The correct sequence is −

• 1−2−3−4

• 3−2−1−4

• 2−1−3−4

• 1−3−2−4

Answer − D

Hint − PMBOK 5, Page 255, Fig−9−1

(13) Which of the following techniques is not used in the process of Plan Human Resource Management?

• Networking

• Pre−assignment

• Organizational theory

• Meetings

Answer − B

Hint − PMBOK 5, Page 257, Fig 9-1, Sec 9.1

(14) The various inputs used while executing the process of Develop Project Team includes all but

• Personal Assessment Tools

• Recognition and awards

• Project Performance Appraisals

• Training

Answer − C

Hint − PMBOK 5, Page 257, Sec 9.3

(15) The process of Manage project team uses which of the following inputs in its execution?

• Issue Log

• Resource Calendars

• Activity Resource Requirements

• Human Resource Management Plan

Answer − A

Hint − PMBOK 5, Page 257, Sec 9.4

(16) The process of identifying and documenting project roles, responsibilities, required skills, reporting relationships, and creating a staffing management plan is known as

• Develop Project Team

• Manage Project Team

• Plan Human Resource Management

• Acquire Project Team

Answer − C

Hint − PMBOK 5, Page 257, Sec 9.1

(17) The information used for the development of the human resource management plan includes all except

• The project life cycle

• A change management plan

• A configuration management plan

• Organizational Standard Processes

Answer − D

Hint − PMBOK 5, Page 259, Sec 9.1.1

(18) The concept that provides information regarding the way in which people, teams, and organizational units behave is known as

• Networking

• Organizational Theory

• Expert Judgment

• None of the above

Answer − B

Hint − PMBOK 5, Page 263, Sec 9.1.2.3

(19) The phase of team building where the team begins to address the project work, technical decisions, and the project management approach is known as

• Performing

• Storming

• Forming

• Norming

Answer − B

Hint − PMBOK 5, Page 276, Sec 9.3.2.3

(20) The Conflict Management approach that is used for emphasizing upon the areas of agreement rather than areas of differences conceding one's position to the needs of others to maintain harmony and relationships is called

• Collaborate/Problem Solve

• Compromise/Reconcile

• Smooth/ Accommodate

• Withdraw/Avoid

Answer − C

Hint − PMBOK 5, Page 283

Project Communication Management

Here is a list of sample questions which would help you to understand the pattern of questions on Project Communication Management being asked in PMP Certification Exams.

(1) Which of the following can cause a conflict?

• Insufficient action on the part of the project manager

• Competition for facilities, equipment, material, manpower and other resources

• Personality conflicts between managers and/ or other personnel

• All of the above

Answer − D

Hint − PMBOK 5, Page 282, Sec 9.4.2.3 Conflict Management

(2) Most of the project manager's external communication comprises −

• Written documents

• Oral communication

• Tactile contact

• Informal contact

Answer − A

Hint − Written communication is the best form to maintain documented evidence of what was communicated.

(3) The critical element in a project's communication system is the −

• Progress report

• Project directive

• Project manager

• Customer

Answer − C

Hint − Project manager is responsible for executing and facilitating all the project −related communication.

(4) Communication management −

• Is Is important only in projects involving telephone, television, radio, or newspaper production facilities and operations

• Is not a big problem for people with normal speech, sight and hearing

• Involves the sender, the message, the medium and the receiver

• Preparing an agenda

Answer − C

Hint − PMBOK 5, Page 294, Figure 10−4. Basic Communication Model

(5) Truly effective communication −

• Depends on using multiple channels

• Depends on selecting the right method for each message and avoiding duplication, since everyone is overloaded with information

• Cannot depend solely on non−verbal signals which might be misunderstood

• Can only be achieved by communication professional

• a, b and c

Answer−E

Hint − Project communication doesn't need a communication professional or expert. It is every member's responsibility to communicate with the project manager who facilitates all the communication.

(6) Methods of transmitting information include −

• Oral and written

• Non−verbal/ visual

• Telepathy

• only A and B

• A, B and C

Answer − D

Hint − Telepathy is not an advisable method of transmitting information in Project Management

(7) A project management information system consists of −

• A project management software package operating on appropriate computer facilities

• Software, documents, and procedures

• Automated tools and manual methods for gathering, recording, filtering, and dissemination of pertinent information for members of a project team

• All of the above

Answer − D

Hint − PMBOK 5, Page 92, Sec 4.4.2.3 Project Management Information System

(8) The process of communication contains four major parts. Which part is the vehicle or method used to convey the message?

• Communicator

• Message

• Medium

• Recipient

Answer − C

Hint − PMBOK 5, Page 293 Sec 10.1.2.3 Communication Models

(9) The contemporary view of conflict is that −

• Conflict is bad

• Conflict is caused by trouble makers

• Conflict should be avoided

• Conflict is often beneficial

Answer − D

Hint − Conflicts can help arrive at better solutions. : PMBOK 5, Page 518 X3.10 Conflict Management

(10) Approximately what percentage of the project manager's time is spent in some form of communication, such as: conferences, meetings, writing memos, reading and preparing reports, and talking with project team members, upper management, and all other stalk holders?

• 10−20%

• 50−70%

• 75−90%

• 21−45%

Answer − C

Hint − Nearly 90 percent of a manager's time is spent in communication

(11) What is the term used for processes that are required to ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval, management , control monitoring, and the ultimate disposition of project information?

• Project Communications Management

• Project Scope Management

• Project Procurement Management

• Project Integration Management

Answer − A

Hint − PMBOK 5, Page 287

(12) Which of the following processes of Project Communications Management involves developing an appropriate approach and plan for project communications based on stakeholder's information needs and requirements, and available organizational assets?

• Manage Communications Management

• Plan Communications Management

• Control Communications Management

• None of the above

Answer − B

Hint − PMBOK 5, Page 287, Section 10.1

(13) The inputs used in the process of Plan Communications Management includes all except

• Project Management Plan

• Stakeholder Register

• OPA

• Communications Management Plan

Answer − D

Hint − PMBOK 5, Page 288, Section 10.1

(14) The tools and techniques used in the process of Manage Communications excludes

• Information Management System

• Communication Technology

• Communication Models

• Communication Requirements Analysis

Answer − D

Hint − PMBOK 5, Page 288, Section 10.2

(15) The output of the Control Communications Process includes all except

• Change Requests

• Work Performance Information

• Project Communications

• OPA Updates

Answer − C

Hint − PMBOK 5, Page 288, Section 10.3

(16) The results of the Plan Communications Management Process should be reviewed regularly throughout the project and revised as needed to ensure continued applicability. The statement is

• True

• False

• Incorrect as the plan cannot change without approval

• Not completely true as it is not possible to review the plan frequently

Answer − A

Hint: PMBOK 5, Page 290

(17) The choice of communication technology is not affected by

• Project Environment

• Skills of the project team

• Sensitivity and confidentiality of the information

• Ease of use

Answer − B

Hint − PMBOK 5, Page 292, Section 10.1.2.2

(18) The type of Communication Methods tool that uses very large volume of information ,or for very large audience, and requires the recipients to access the communication content at their own discretion is called

• Interactive Communication

• Pull Communication

• Push Communication

• None of the above

Answer − B

Hint − PMBOK 5, Page 295.

(19) The process of creating, collecting, distributing, storing, retrieving, and the ultimate disposition of project information in accordance to the communications management plan is called

• Manage Communications

• Plan Communications Management

• Control Communications

• Both A & C

Answer − A

Hint − PMBOK 5, Page 297, Section 10.2

(20) An arrangement that provides a set of standard tools for the project manager to capture, store and distribute information to stakeholders about the project's costs, schedule progress, and performance is known as

• Performance Reporting

• Information Management System

• Expert Judgment

• None of the above

Answer − B

Hint − PMBOK 5, Page 306, Section 10.3.2.1

Project Risk Management

Here is a list of sample questions which would help you to understand the pattern of questions on Project Risk Management being asked in PMP Certification Exams.

(1) The process under Process Risk Management that prioritizes risks for further analysis or action by assessing and combining their probability of occurrence and impact is called

• Perform Qualitative Risks Analysis

• Perform Quantitative Risk Analysis

• Plan Risk Management

• Plan Risk Responses

Answer −A

Hint − PMBOK 5, Page 309, Sec 11.3

(2) The inputs used in the process of Perform Qualitative Risk Analysis includes all except

• Scope Baseline

• Risk Register

• Quality Management Plan

• Risk Management Plan

Answer − C

Hint − PMBOK 5, Page 312, Sec 11.3

(3) A risk is defined as ____________ event or condition that, if it occurs, has a positive or negative effect on one or more project______________.

• indefinite, probabilities

• uncertain, objectives

• sure, goals

• definite, uncertainties

Answer − B

Hint − PMBOK 5, Page 559 Definition of Risk

(4) When is the risk and uncertainty in a project's life cycle at the highest?

• start

• design

• closing

• implementation

Answer − A

Hint − PMBOK 5, Page 40, Figure 2 −9

(5) A new project that was initiated, involved new technology and had never been done before. What type of contract would the owner want to issue to reduce or eliminate as much risk as possible?

• fixed price

• Cost plus fix fee

• Cost plus incentive fee

• Time and Material

Answer − A

Hint − A fixed bid project has lesser risk for the firm that gives high-risk work on contract

(6) The process of Control Risks does not have one of the following as an output. Which one is it?

• Work Performance Information

• Change Requests

• OPA updates

• Risk Register

Answer − D

Hint − PMBOK 5, Section 11.6 Control Risks

(7) Which of the following fit the category of external risks?

• Project delays, budget under-runs, movement of city utilities

• Regulatory, currency changes, taxation

• Natural disasters, regulatory, design

• Inflation, design, social impact

• Political unrest, budget overruns, size and complexity of the project

Answer − B

Hint − PMBOK 5, Page 317, Risk categories

(8) Decision trees are best used for −

• Determining the interaction of the amount at stake and the expected value

• Association of the probabilities with the risk events

• Calculating the average outcome when the future includes scenarios that may or may not happen

• A flow chart which determines the standard deviation of the risk event

Answer − C

Hint − PMBOK 5, Page 339 Decision tree analysis

(9) The total amount of risk that is calculated for a project is found by

• Multiplying the sum of each the risk times the amount at stake

• Calculating the cumulative sum of the probability for each risk and multiplying this value times the consequence of occurrence of the risk events

• Cannot be calculated since all risks are not known

• The amount of project reserves available

Answer − B

Hint − PMBOK 5, Page 339 Decision tree analysis

(10) The strategy used under Strategies for Positive Risks or Opportunities that is used to increase the probability and/or the positive impacts of an opportunity is called.

• Share

• Accept

• Enhance

• Exploit

Answer − C

Hint − PMBOK 5, Page 346

(11) For the following processes of Project Risk Management−

1. Plan Risk Management

2. Perform Qualitative Risk Analysis

3. Identify Risks

4. Perform Quantitative Risk Analysis

5. Plan Risk Responses

6. Control Risks

The correct sequence is −

• A.1−2−3−4−5−6

• B.1−3−2−4−5−6

• C.1−3−4−2−5−6

• D.3−1−2−4−5−6

Answer −B

Hint − PMBOK 5, Page 309

(12) The process of implementing risk responses plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project is called?

• Plan Risk Responses

• Control Risks

• Identify Risks

• Perform Qualitative Risk Analysis

Answer − B

Hint − PMBOK 5, Page 309

(13) The measure along the level of uncertainty or the level of impact at which a stakeholder may have a specific interest. Below that, the organization will accept the risk, and above this measure the organization will not accept the risk. It is known as

• Risk Threshold

• Risk Appetite

• Risk Tolerance

• None of the above

Answer − A

Hint − PMBOK 5, Page 311

(14)

Which of the following tools and techniques is not used in the process of Identify Risks

• SWOT Analysis

• Diagramming Techniques

• Checklist Analysis

• Risk Categorization

Answer − D

Hint − PMBOK 5, Page 312, Sec 11.2

(15) The tools and techniques used in the process of Plan Risk Responses includes all except

• Contingent Response Strategies

• Risk and Impact Matrix

• Strategies for positive risks or opportunities

• Expert Judgment

Answer − B

Hint − PMBOK 5, Page 312, Sec 11.5

(16) A stakeholder risk profile analysis may be performed to grade and qualify the project stakeholder risk appetite and tolerance. The activity is an example of which technique used in the process of Plan Risk Management

• Meetings

• Expert Judgment

• Analytical Techniques

• Both B& C

Answer − C

Hint − PMBOK 5, Page 315, Sec 11.1.2.1

(17) The Risk Management Plan, which is the outcome of the process Plan Risk Management includes all except

• Methodology

• Roles and Responsibilities

• Budgeting

• Tracking

Answer − D

Hint − PMBOK 5, Page 316, 11.1.3.1

(18) The technique used under the Quantitative Risk Analysis which is a statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen is known as

• Sensitivity Analysis

• Expected Monetary value Analysis

• Modeling and Simulation

• Expert Judgment

Answer − B

Hint − PMBOK 5, Page 339

(19)

The technique used under the Quantitative Risk Analysis that translates the specified detailed uncertainties of the project into their potential impact on project activities is called

• Expected Monetary value Analysis

• Modeling and Simulation

• Expert Judgment

• Sensitivity Analysis

Answer − B

Hint − PMBOK 5, Page 340

(20) A risk response strategy used under tool of Strategies for negative Risks or Threats through which the project team decides to acknowledge the risk and not take any action unless the risk occurs is called

• Mitigate

• Transfer

• Accept

• Avoid

Answer − C

Hint − PMBOK 5, Page 345

Project Procurement Management

Here is a list of sample questions which would help you to understand the pattern of questions on Project Procurement Management being asked in PMP Certification Exams.

(1) The fixed price contract is advantageous to the buyer because it −

• requires extremely well defined specifications

• requires formal procedures for scope changes

• seller assumes financial and technical risk

• has a known cost

Answer − C

Hint − Read about Fixed-price contracts under Sec 12.1.1.9, Page 362 PMBOK 5

(2) The contract administration function includes −

• funding management

• managing relationships and interfaces

• performance control

• all of the above

Answer − D

Hint − PMBOK 5, Page 379, Sec 12.3

(3) The major type(s) of standard warranty used in the business environment is(are) −

• express

• implied

• negotiated

• A and B

• A, B, and C

Answer − D

Hint − Warranty types include express and implied. Negotiated is not a warranty type.

(4) A Unit Price (UP) contract provides−

• a reimbursement of allowable costs plus a fixed fee which is paid proportionately as the contract progresses

• a reimbursement of allowable cost of services performed plus an agreed upon percentage of the estimated cost as profit

• the supplier with a fixed price for delivered performance plus a predetermined fee for superior performance

• a fixed price where the supplier agrees to furnish goods and services at unit rates and the final price is dependent on the quantities needed to carry out the work.

Answer − D

Hint − Time and Materials Contract, Page 364, PMBOK 5

(5) The process of managing procurement relationships, monitoring contract performance, and making changes as appropriate is called

• Plan Procurement Management

• Control Procurements

• Close Procurements

• Conduct Procurements

Answer − B

Hint − PMBOK 5, Page 355, Section 12.3

(6) From a contract management perspective, the project manager must consider the−

• acquisition process

• contract administration

• ecological environment

• offer, acceptance, and consideration

• a and b

Answer − E

Hint − Options C and D are not related to contracts

(7) The tools and techniques used in the process of Plan Procurement Management includes all but

• Make−or−buy analysis

• Market Research

• Bidder Conferences

• Expert Judgment

Answer − C

Hint − PMBOK 5, Page 356, Sec. 12.1

(8) Which contract type places the most risk on the seller?

• Cost plus percentage fee

• Cost plus incentive fee

• Cost plus fixed fee

• Fixed price plus incentive fee

• Firm fixed price

Answer − E

Hint − Read about types of contracts under Sec 12.1.1.9, Page 362 PMBOK 5

(9) Decisions made in developing the procurement management plan can also influence the project schedule and are integrated with Develop Schedule, Estimate Activity Resources, and make-or-buy analysis.� The statement is

• True

• False

• Not sure

• Incomplete Information

Answer − A

Hint − PMBOK 5, Page 360, 2nd Para.

(10) What is the last item a project manager must do to finalize the project closing?

• Reassign the team

• Contract completion

• Archive the project records

• Complete lessons learned

Answer − B

Hint − Contract completion is most important

(11) The process that includes the contract management and change control processes required to develop and administer contracts or purchase orders issued by authorized project team members is known as −

• Project Procurement Management

• Project Time management

• Project Cost Management

• Project Risk Management

Answer − A

Hint − PMBOK 5, Page 355

(12) For the processes in the Project Procurement Management,

1. Plan Procurement Management

2. Control Procurements

3. Conduct Procurements

4. Close Procurements

The correct sequence is−

• A. 1−2−3−4

• B. 1−3−2−4

• C. 1−4−3−2

• D. 3−1−2−4

Answer − B

Hint − PMBOK 5, Page 355, Fig. 12−1

(13) The inputs used in the process of Conduct Procurements includes all except

• Seller Proposals

• Procurement statement of work

• Source Selection Criteria

• Agreements

Answer − D

Hint − Agreements are the output on conduct procurements process

(14) The contractual agreement under Fixed Price Contracts ,which influences the Plan Procurement project and is the favored by buyers because the price for goods is set at the outset and doesn�t change until scope of work changes, is known as

• Firm Fixed Price Contracts (FFP)

• Fixed Price Incentive Fee Contracts (FPIF)

• Fixed Price with Economic Price Adjustment Contracts ( FP- EPA)

• None of the above

Answer − A

Hint − PMBOK 5, Page 363

(15) The contractual agreement under Fixed Price Contracts ,which influences the Plan Procurement project and gives the buyer and seller some flexibility in that it allows for deviation from performance, with financial incentives tied to achieving agreed upon metrics is called

• Fixed Price Incentive Fee Contracts (FPIF)

• Fixed Price with Economic Price Adjustment Contracts (FP − EPA)

• Firm Fixed Price Contracts (FFP)

• Fixed Assets Price (FAP)

Answer − A

Hint − PMBOK 5, Page 363

(16) The contractual agreement under Cost-reimbursable Contracts, which influences the Plan Procurement project and where if the final costs are less or greater than the original estimated costs, then both the buyer and seller share costs from the departures based upon a pre-negotiated cost sharing formula ,is called

• Cost Plus Fixed Fee Contracts ( CPFF)

• Cost Plus Award Fee Contracts (CPAF)

• Cost Plus Incentive Fee Contracts ( CPIF)

• Cost Plus Percentage Completion (CPPC)

Answer − C

Hint − PMBOK 5, Page 364

(17) The contractual agreement under Cost-reimbursable Contracts, which influences the Plan Procurement project and where the seller is reimbursed for all the legitimate costs , but the majority of the fee is earned only based in the satisfaction of certain broad subjective performance criteria defined and incorporated into the contract is called

• Cost Plus Fixed Fee Contracts ( CPFF)

• Cost Plus Award Fee Contracts (CPAF)

• Cost Plus Incentive Fee Contracts ( CPIF)

• Cost Plus Firm Fixed Fee Contracts ( CPFFF)

Answer − B

Hint − PMBOK 5, Page 364

(18) The component of the project management plan that describes how a project team will acquire goods and services from outside the performing organization is called

• Procurement Management Plan

• Procurement Statement of Work

• Procurement Documents

• None of the above

Answer − A

Hint − PMBOK 5, Page 366, Sec. 12.1.3.1

(19) A general management technique used to determine whether particular work can best be accomplished by the project team or should be purchased from outside sources is called

• Market Research

• Make−or−buy Analysis

• Expert Judgment

• None of the above

Answer− B

Hint− PMBOK 5, Page 365, Sec. 12.1.2.1

(20) The type of hybrid contracts which influences the Plan Procurement project is called

• Time and Material Contracts (T&M)

• Cost −reimbursable Contracts

• Fixed Price Contracts

• Both B & C

Answer − A

Hint − PMBOK 5, Page 364

Project Stakeholder Management

Here is a list of sample questions which would help you to understand the pattern of questions on Project Stakeholder Management being asked in PMP Certification Exams.

(1) Which of the following knowledge area deals with identifying people, groups or organizations that could impact or be impacted by a project that required building a 3−mile long bridge connecting two island cities of a country?

• Project Communications Management

• Project Stakeholder Management

• Project Integration Management

• Communication Plan

Answer − B

Hint − First para, Page 391, PMBOK 5

(2) Which of the following process would apply if you had to communicate with the project team members to understand their expectations from the outcome of their project?

• Manage Communications

• Plan Stakeholder Management

• Manage Stakeholder Engagement

• Control Stakeholder Engagement

Answer − C

Hint − Manage Stakeholder Engagement, Page 391, PMBOK 5

(3) Which of the following is/are required for identifying stakeholders−

• Stakeholder register

• Procurement documents

• Project management plan

• all of the above

• A and C

Answer − B

Hint − See Identify Stakeholders inputs, Page 392, PMBOK 5

(4) Which of the following is/are not required for manage stakeholder engagement process?

• Change management plan

• Communications management plan

• Stakeholder management plan

• Change log

Answer − A

Hint − Manage Stakeholder Engagement, Page 391, PMBOK 5

(5) Which of the following is not a stakeholder?

• Supplier

• Customer

• PMO

• Competitor

Answer − D

Hint − A competitor has no stake in a project

(6) Stakeholder analysis can be performed using some classification models such as−

• Managerial grid

• Johari window

• Performance grid

• Salience model

Answer − D

Hint − Stakeholder analysis, Page 396, PMBOK 5

(7) Which one of the following is the best way to manage stakeholders?

• Ensuring they don't get to meet outside of work

• Meeting all of them when a milestone is ready

• Keeping them informed throughout the project

• Sending them gifts

Answer − C

Hint − All stakeholders must be kept informed about the project progress

(8) The stakeholder engagement level where the stakeholder is actively engaged in ensuring the project success is known as −

• Leading

• Supportive

• Active

• Neutral

Answer − A

Hint − See Analytical Techniques, Page 402 , PMBOK 5

(9) Stakeholders engagement assessment matrix is used to map

• Current engagement level

• Desired engagement level

• Assured engagement level

• Only A and B

• A, B and C

Answer − D

Hint − The matrix helps map the difference between Desired and Actual engagement level.

(10) When is the stakeholders ability to influence a project very high?

• In the early stages

• Half−way through

• Depends on their role and position

• Just before final delivery

Answer − A

Hint − It becomes increasingly difficult to alter the course of action as the project nears completion.

(11) During stakeholder analysis, Lisa − the project manager finds that there are three new stakeholders that need to be added to the stakeholder register. She code-named them as A, B, and C. Upon further analysis, she found that A has already voiced concerns about the project feasibility, B is unaware of the project while C has been taking keen interest in the project and took an initiative to solve an impediment. What should Lisa be doing on a priority?

• Meet A to understand concerns and update issue log

• Meet B to inform about the project and know the feedback

• A, B

• Thank C for the support

Answer − C

Hint − A and B could affect a project because of their concerns or being uninformed. They should be met immediately.

(12) Stakeholder communication requirements are captured in −

• Stakeholder Management Plan

• Communications Management Plan

• Procurement Documents

• A and B

Answer − D

Hint − Both the plans capture the communication requirements

(13) Work Performance Information is an output of −

• Plan Stakeholder Engagement

• Manage Stakeholder Engagement

• Control Stakeholder Engagement

• Stakeholder Management Plan

Answer − C

Hint − See Control Stakeholder Engagement, Page 392, PMBOK 5

(14) Which of the following is/are not a technique used to manage stakeholder engagement?

• Delphi Technique

• Management Skills

• Interpersonal Skills

• Communication Methods

Answer − A

Hint − Delphi Technique is not used to manage stakeholders

(15) Which of the following must be included in a stakeholder register?

• Stakeholders family history

• Stakeholders hobbies

• Expectations from the project

• Communication skills

Answer − C

Hint − It is important for the PM to know each stakeholder's expectation from the project

(16) Stakeholder classification should never be based on the following category/group −

• Internal/External

• Aware/Unaware

• Optimistic/Pessimistic

• Supportive/Resistant

Answer − C

Hint − There is no such classification of stakeholders.

(17) What is the correct classification of engagement levels according to the Stakeholders engagement assessment matrix?

• Neutral, Resistant, Unaware, Supportive, Leading

• Unaware, Neutral, Resistant, Supportive, Leading

• Unaware, Resistant, Neutral, Supportive, Leading

• Leading, Supportive, Neutral, Resistant, Unaware

Answer − C

Hint − See Analytical Techniques, Page 402, PMBOK 5

(18) In an analytical process, what could be a sign that indicates the need of some actions or communications directed to manage a stakeholder's engagement level?

• The stakeholder talks less

• The stakeholder's current engagement level varies from the desired level

• The stakeholder is remotely located

• The stakeholder is external

Answer − B

Hint − Unmatched Desired and Actual engagement level is an indicator of the need to assess the expectations and concerns of s stakeholder.

(19) Stakeholder Management Plan includes all except one of the following−

• Scope and impact of change to stakeholders

• Engagement levels of stakeholders

• Stakeholders influence on project

• Stakeholders Compensation and Remunerations

Answer − D

Hint − Stakeholder Management Plan doesn't talk about compensation or remuneration

(20) Identify stakeholders is a part of −

• Project Communications Management

• Project Stakeholder Management

• Project Human Resource Management

• Project Integration Management

Answer − B

Hint − Refer to Process and Knowledge area mapping, Page 61 , PMBOK 5

PMP Mock Exams

Based on PMBOK 5th Edition

Here are 200 objective type sample questions and their answers are given just below to them. This exam is just to give you an idea of type of questions which may be asked in PMP Certification Exams. Even we have taken full care to give correct answers for all the questions but it is recommended to verify these answers.

In examination you will get each question one by one on computer screen

(1) A business case, which helps to determine whether a project is worth the investment, is created on the basis of the following except for

• Market Demand

• Ecological Impacts

• Social Need

• Availability of Funds
  

Answer − D

Hint − Availability of funds is not a criterion for a business case.

(2) You are in charge of developing a new product for an organization. Your quality metrics are based on the 80th percentile of each of the last three products developed. This is an example of −

• Statistical sampling

• Metrics

• Benchmarking

• Operational definitions

Answer − C

Hint − PMBOK 5, Page 116, Benchmarking (definition)

(3) The two closing procedures are called −

• Contract closure and scope verification

• Close Procurements and Close Project

• Project closure and product verification

• Project closure and lessons learned

Answer − B

Hint − PMBOK 5, Page 61, Table 3−1 Closing Process Group

(4) During the develop schedule process, the Project Manager may have to go through several iterations of the schedule before establishing the schedule baseline. All of the following are tools and techniques that may be used during this process:

• Critical Path Method, GERT, Resource Requirements

• Resource Leveling Heuristics, Mathematical Analysis, Calendars

• Schedule compression, Resource optimization techniques, Critical chain method

• GERT, PERT, Leads and Lags

Answer − C

Hint − PMBOK 5, Page 61, Table 3-1 Develop Schedule: Tools & Techniques

(5) Which of the following models of conflict resolution allows a cooling off period, but seldom resolves the issue in the long term?

• Problem solving

• Withdrawal

• Forcing

• Smoothing

Answer − B

Hint − Withdrawal is a temporary solution that evades problem-solving as much as possible.

(6) In communication, the receiver decodes the messages based on all but the following −

• Culture

• Semantics

• Language

• Distance

• Knowledge

Answer − D

Hint − Distance isn't among the criteria for interpreting a message received

(7) How much time does the typical project manager spend communicating both formally and informally?

• 40−60%

• 50−70%

• 60−80%

• 75−90%

Answer − D

Hint − with and among all the stakeholders including sponsor, customers, vendors, project team, PMO and upper management.

(8) Group brainstorming encourages all of the following except:

• Team building A project manager facilitates communication

• Analysis of alternatives

• Convergent thinking

• Uninhibited verbalization

Answer − C

Hint − The objective of Brainstorming is to generate diverse ideas.

(9) The critical element in a project's communication system is the:

• Progress report

• Project directive

• Project manager

• Customer

Answer − C

Hint − A project manager facilitates all project−related communication

(10) System integration consists of −

• Assuring that the pieces of a project come together at the right time

• Planning for contingencies that may occur throughout the life cycle of the project

• The pieces of the project function as an integration unit

• a and c

Answer − D

Hint − Integration means bringing together of the components.

(11) Performance reviews are held to:

• Correct the project manager's mistakes.

• Provide for answers for upper levels of management

• To assess project status or progress

• To apprise the project costs and cost trends of the project

Answer − C

Hint − Definition of Performance reviews, Page 549, PMBOK 5

(12) A complex project will fit best in what type of organization?

• Functional

• Cross−functional

• Matrix

• Balanced

Answer − C

Hint − A matrix organization is best for complex projects because of the mix of functional expertise and project management focus.

(13) Which of the following could be an appropriate WBS code for a work package at the fourth level in a WBS where the top level code is 1.0?

• 1.4

• 1.1.1.1

• 1.2.3.4

• a and c

• b and c

Answer − E

Hint − Both B and C follow the correct format

(14) Which of the following Project Scope Management processes involves subdividing the major project deliverables into smaller, more manageable components?

• Plan Scope Management

• Define Scope

• Validate Scope

• Control Scope

• Create WBS

Answer − E

Hint − Project deliverables are broken into work packages un Create WBS process

(15) The review of key deliverables and project performance at the conclusion of a project phase is called −

• phase exit

• kill point

• stage gate

• a and c

• a, b and c

Answer − E

Hint − PMBOK 5, Page 41, Sec 2.4.2 Project Phases

(16) Project scope is −

• All the work that must be done in order to deliver a product according to the specified features and functions, only.

• The features and functions that are to be included in a product or service.

• A narrative description of work to be performed under contract.

• a and b

• all of the above

Answer − A

Hint − Project scope means all the work and only the work required to complete the project successfully

(17)The unique identifiers assigned to each item of a WBS are often known collectively as −

• The work package codes

• The project identifiers

• The code of accounts

• The element accounts

Answer − C

Hint: PMBOK 5, Page 132, WBS

(18) The sender of a message is responsible for −

• Confirming the message is understood

• Ensuring the receiver agrees with the message

• Scheduling communication exchange

• Presenting the message in the most agreeable manner

Answer − A

Hint − The objective of communication is to ensure that the message is conveyed.

(19) What are the best uses of PERT:

• Used in the planning phase to do " what if for the project.

• Assist in the controlling of changes to the project.

• Is used in the process of preparing a WBS for the project.

• To measure future consequences of activities.

• a and d.

Answer − E

Hint − PMBOK 5, Page 553, See PERT definition

(20) Change requests can occur due to:

• An external event such as a change in government regulation.

• An error or omission in defining the scope of the product.

• An error or omission in defining the scope of the project.

• a and c

• all of the above

Answer − E

Hint − Change requests are made to ensure that the planned outcome of the project is achieved

(21) A project management plan is −

• A A formal, approved document used to guide project execution, monitoring, and control.

• A document issued by senior management that provides the project manager with the authority to apply organizational resources to project activities.

• A narrative description of products or services to be supplied.

• A document describing the organizational breakdown structure of the company.

Answer − A

Hint − PMBOK 5, Page 553, See Project Management Plan definition

(22) Which of the following is NOT an example of a type of schedule report?

• Gantt chart

• Milestone chart

• Fishbone diagram

• Network diagram

Answer − C

Hint − A fishbone diagram is meant for cause and effect analysis.

(23) The most important criteria in deciding to initiate a project selection method is −

• Stakeholder's vision

• Low cost opportunity

• Environmental consideration

• Capability

Answer − C

Hint − PMBOK 5, Page 10, Projects and Strategic Planning

(24) Which of the following is correct order for stages in Tuckman ladder?

• Foaming, Steaming, Norming, Perfuming, Dispersing

• Forming, Storming, Protecting, Norming, Adjourning

• Forming, Storming, Norming, Performing, Adjourning

• Framing, Storming, Norming, Protecting, Adjourning

Answer − C

Hint − PMBOK 5, Page 276

(25) Three major processes in Project Human Resource Management are:

• Staff recruitment, project staff planning and team building

• Plan HRM, Acquire Project Team and Develop Project Team

• Rewarding, salary reviews and penalties

• Staff acquisition, staff training, staff deployment

Answer − B

Hint − PMBOK 5, Page 257, Figure 9−1

(26) A project is defined as −

• A process of considerable scope that implements a plan.

• An endeavor, which is planned, executed, and controlled; performed by people; and constrained by limited resources.

• A temporary endeavor undertaken to create a unique product or service.

• An objective based effort of temporary nature.

Answer − C

Hint − A project is always temporary and every project gives a unique product or service.

(27) Which of the following is not a General management technique?

• Make−or−buy analysis

• Analysis of alternatives

• Applying PMBOK concepts

• Lateral thinking

Answer − A

Hint − Application of PMBOK is project management

(28) According to PMBOK, project management processes are organized into following order of process groups −

• Initiating, planning, executing, monitoring, and closing

• Designing, developing, testing, and implementing

• Initiating, designing, planning, executing, controlling, and closing

• Initiating, planning, executing, monitoring and controlling, and closing

Answer − D

Hint − PMBOK 5, Project Management Process Groups

(29) ___________ must be measured regularly to identify variances from the plan.

• Stakeholder requirements

• Project performance

• Schedule progress

• Cost

Answer − B

Hint − Project performance must be measured at regular intervals.

(30) A project kick off meeting is usually conducted to:

• Setup project team and announce the PM assignment

• To draft project charter

• Build up team spirit

• Define project scope and develop WBS

Answer − A

Hint − A kick−off meeting gets the project team onboard and announces the manager

(31) Which of the following is not an external-unpredictable risk?

• Changes in government regulations

• Natural hazards

• Unexpected environmental side effects

• Inflation

Answer − D

Hint − Inflation rate is known and predictablen

(32) Maslow ranked Human needs from the highest to lowest −

• Self actualization; self promotion; social; security and physiological needs

• Self esteem; self actualization; social; security and physiological

• Self actualization; self esteem; social; security and physiological

• Self fulfillment; self esteem; social; security and physiological

Answer − C

Hint − Refer Abraham Maslow's hierarchy of needs.

(33) Which of the following statements concerning contract type is correct?

• A fixed price contract contains the most risk for the buyer.

• Cost reimbursable contracts offer sellers the highest profit potential.

• Time and materials contracts are hybrid of cost reimbursable and fixed-price contracts..

• Unit price contracts are illegal in many jurisdictions.

Answer − C

Hint − PMBOK 5, Page 364 Time and Material Contracts

(34) Herzberg identified factors, which, if present, will lead to increased motivation. A typical factor would be −

• Good supervision

• Job security

• Regular promotions

• Good salary

• A dental plan

Answer − C

Hint − Refer to Herzberg's Two Factor Theory

(35) Your customer ask for a small change in the project, which was not budgeted in the project. It is a small effort as compared to the total project and you need the goodwill for a multimillion dollar on the pipeline. You will

• Refuse to do the work

• Agree to do the work at no charge

• Do the work and bill him later

• Assess the cost and schedule impact and tell them you will formalize the change request

Answer − D

Hint − Impact of every change must be assessed and should go through change control

(36) You are responsible for ensuring that your seller's performance meets contractual requirements. For effective contract administration, you should −

• Hold a bidders conference

• Establish the appropriate contract type

• Implement the contract change control system

• Develop a statement of work

Answer − C

Hint − PMBOK 5, Page 383, Sec 12.3.2.1 Contract Change Control System

(37) The three major causes of change on a project are:

• Replacement of the project manager or key project team members; changes in priorities by senior management; and contractual difficulties..

• Changes in the relative importance of time, resources, or cost ; new knowledge about the deliverable; and technological uncertainty

• Errors in the initial assessment of how to achieve the goal of the project; new information about the project deliverable; and a new mandate

• Unavailability of resources promised by the functional managers; cost overruns; and changes in customer requirements

Answer − C

Hint − Scope change and estimation errors are the main causes

(38) The purpose of the review of deliverables and project performance at the conclusion of a project phase is to:

• Determine how many resources are required to complete the project according to the project baseline

• Adjust the schedule and cost baselines based on past performance

• Obtain customer acceptance of project deliverables

• Determine whether the project should continue to the next phase

Answer − D

Hint − Closure of a project phase is a point to reassess the ongoing project progress and change or terminate the project if necessary. PMBOK 5, Page 41, Sec 2.4.2

(39) Your project is in the final test stage, the user acceptance test. It meets all the product specs and is under planned costs. In term of schedule, this project is ahead. Your customer met you and requested that he will not accept the product unless you make several changes. What you should do is −

• Get the list of the changes and estimate all of them. If the total cost is still within the baseline, you will do it

• Estimate the costs and send this to your customer requesting contract modification

• Ask the customer to file a change request

• Sit with the customer to review the product specs and tell him/her that you have completed the project.

Answer − C

Hint − All the change requests must be made formal

(40) The delphi Method is best suited for −

• Decision−making

• Cost Control

• Overhead rate estimating

• Team discussions

Answer − A

Hint − It can be used to vote for a decision.

(41) Which of the following methods is least likely to be used for explaining project planning guidelines to the team?

• Project Office Memo

• Project office directive

• Project team meeting

• Formal project report

Answer − D

Hint − A report gives information about what happened and doesn't talk about planning or give guidelines or directives.

(42) Projects are initiated in response of −

• Stakeholder's pressure

• Business needs

• Technological obsolescence

• All of the above

Answer − D

Hint − All those factors contribute towards project initiation.

(43) The party that needs the change resulting from the project, and who will be its custodian on completion is the −

• Owner

• Sponsor

• Customer

• Client

Answer − A

Hint − Project owner is the custodian

(44) A document or tool which describes when and how human resources will be brought onto and taken off the project team is called a −

• Staffing Management Plan

• Responsibility Assignment Matrix (RAM ).

• Organizational Breakdown Structure (OBS).

• Resource Assignment Chart

Answer − A

Hint − PMBOK 5, Page 265, Staffing Management Plan

(45) In which type of organization is team building likely to be most difficult?

• Functional

• Projectized

• Matrix

• Project expediter

• Project coordinator

Answer − C

Hint − The team members report to multiple managers in matrix organizations.

(46) A tool which links the project roles and responsibilities to the project scope definition is called:

• Scope Definition Matrix

• Responsibility Assignment Matrix

• Roles Assignment Matrix

• Project Scope and Roles Matrix

Answer − B

Hint − PMBOK 5, Page 262 Responsibility Assignment Matrix

(47) Which of the following are outputs from the Plan Communications Management process?

• Project records

• Communications management plan

• Performance reports

• Formal acceptance

• b and c

Answer − B

Hint − PMBOK 5, Page 288, Figure 10−1

(48) Which of the following statement is correct?

• Process Groups are same as Project Phases

• Each Process Group has a mapped Project Phase

• Process Groups are not Project Phases

• Monitoring and Control Process Group applies only in monitoring and control phase

Answer − c

Hint − PMBOK 5, Page 420, A1.3 Project Management Process Groups

(49) The sending or conveying of information from one place to another is the process of −

• Networking

• Transmitting

• Encrypting

• Promoting

Answer − B

Hint − PMBOK 5, Page 293, Sec 10.1.2.3 Communication Models

(50) The three major types of communication are −

• Written and oral, and verbal and nonverbal.

• Verbal, formal documentation, informal documentation.

• Verbal, written, and graphic.

• Verbal, written, and electronic.

Answer − A

Hint − PMBOK 5, Page 287

PMP Sample Questions

Based on PMBOK 5th Edition

Here are 200 more objective type sample questions and their answers are given just below to them. This exam is just to give you an idea of type of questions which may be asked in PMP Certification Exams. Even we have taken full care to give correct answers for all the questions but it is recommended to verify these answers.

In examination, you will get each question one by one on computer screen.

(1) Which of the following is an advantage of centralized contracting?

• Makes it easier to find vendors

• Increases company expertise in contracting

• Gives more loyalty to the project

• Allows a contracts person to work on a single project

Answer − B

Hint − A centralized department is created to bring in processes and uniformity, which leads to development of expertise.

(2) Risks will be identified during which risk management process (es)?

• Perform Quantitative Risk Analysis and Identify Risks

• Identify Risks and Control Risks

• Perform Qualitative Risk Analysis and Control Risks

• Identify Risks

Answer − B

Hint − PMBOK 5 Page 312, Figure 11.1

(3) The highest point of Maslow's hierarchy of needs is−

• Physiological satisfaction

• Attainment of survival

• Esteem

• Self − actualization

Answer − D

Hint − Read Maslow's theory on hierarchy of needs. Self-actualization is on top of the pyramid.

(4) Who is ultimately responsible for quality management on the project?

• Project engineer

• Project manager

• Quality manager

• Team member

Answer − B

Hint − PMBOK 5 Page 16, Sec 1.7 Role of the Project Manager

(5) In the context of estimation, a heuristic is best described as a −

• control tool.

• scheduling method.

• planning tool.

• rule of thumb.

Answer− D

Hint − PMBOK 5 Page 204, Sec 7.2.2 Estimate Costs − Tools & Techniques

(6) If earned value (EV) = 350, actual cost (AC) = 400, planned value (PV) = 325, what is cost variance (CV)?

• 350

• −75

• 400

• −50

Answer − D

Hint − CV = EV − AC

(7) 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 −

• create a project scope statement.

• confirm that all the stakeholders have contributed to the scope.

• analyze project risk.

• begin work on a project management plan.

Answer − B

Hint − PMBOK 5 Page 66 Sec 4.1 Develop Project Charter

(8) 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?

• 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

Answer − D

Hint − PMBOK 5 Page 66 Sec 4.1 Develop Project Charter

(9) The project manager is making sure that the product of the project has been completed according to the project management plan. What part of the project management process is he in?

• Planning

• Executing

• Monitoring and controlling

• Closing

Answer − D

Hint − PMBOK 5 Page 57 Sec 3.7 Closing Process Group

(10) The WBS and WBS dictionary are completed. The project team has begun working on identifying risks. The sponsor contacts the project manager, requesting that the responsibility assignment matrix be issued. The project has a budget of U.S. $loo,ooo and is taking place in three countries using 14 human resources. There is little risk expected for the project and the project manager has managed many projects similar to this one. What is the next thing to do?

• Understand the experience of the sponsor on similar projects.

• Create an activity list.

• Make sure the project scope is defined.

• Complete risk management and issue the responsibility assignment matrix.

Answer − B

Hint − PMBOK 5 Page 149 Sec 6.2 Define Activities

(11) Risk tolerances are determined in order to help −

• the team rank the project risks.

• the project manager estimate the project.

• the team schedule the project.

• management know how other managers will act on the project.

Answer − A

Hint − PMBOK 5 Page 311 Risk tolerance

(12) 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−

• Work breakdown structure.

• Budget baseline.

• Project charter.

• Project plan.

Answer − C

Hint − PMBOK 5 Page 66 Sec 4.1 Develop Project Charter; Page 16, Sec 1.7 Role of the Project Manager

(13) Your company has an emergency and needs contracted work done as soon as possible. Under these circumstances, which of the following would be the helpful to add to the contract?

• A clear contract statement of work

• Requirements as to which subcontractors can be used

• Incentives

• A force majeure clause

Answer − C

Hint − Read about Type of Vendor Contracts such as Cost Plus Incentive Fee (CPIF)

(14) The "halo effect" refers to the tendency to −

• promote from within.

• hire the best.

• move people into project management because they are good in their technical fields.

• move people into project management because they have had project management training.

Answer − C

Hint − Flaw in Expert Judgment when people good in certain areas are deemed as good in all areas.

(15) A project manager is trying to complete a software development project, but cannot get enough attention for the project. Resources are focused on completing process-related work and the project manager has little authority to properly assign resources. What form of organization must the project manager be working in?

• Functional

• Matrix

• Expediter

• Coordinator

Answer − A

Hint − PMBOK 5 Page 21, Sec 2.1.3 Organizational Structures

(16) All of the following are characteristics of a project EXCEPT−

• Temporary

• Definite beginning and end

• Interrelated activities

• Repeats itself every month

Answer − D

Hint− PMBOK 5 Page 3, Sec 1.2 What is a Project?

(17) A team is using a fishbone diagram to help determine what quality standards will be used on the project. What part of the quality management process are they in?

• Perform quality control

• Perform quality assurance

• Plan Quality Management

• Variable analysis

Answer − C

Hint − PMBOK 5 Page 235, Sec 8.1.2 Plan Quality Management

(18) The equivalent of cost reimbursable contracts is frequently termed−

• Back charge contracts.

• Fixed price contracts.

• Progress payment contracts.

• Cost plus contracts.

Answer − D

Hint − Read about Type of Vendor Contracts such as Cost Plus Incentive Fee (CPIF)

(19) A buyer extends a formal invitation containing a scope of work. The invitation seeks a response describing the methodology and results that will be provided to the buyer. This is called −

• Invitation to bid.

• Request for information.

• Request for proposal.

• Request for bid.

Answer − C

Hint − PMBOK 5 Page 558 Request for proposal definition

(20) 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?

• Cost plus percentage of cost as an award fee

• Cost plus fixed fee

• Cost plus incentive fee

• Firm fixed price

Answer − A

Hint − Option A is most lucrative incentive while option C also offers incentives. Read about Type of Vendor Contracts such as Cost Plus Incentive Fee (CPIF)

(21) Purchasing insurance is considered an example of risk−

• mitigation.

• transfer.

• acceptance.

• avoidance.

Answer B

Hint − PMBOK 5 Page 344 Sec 11.5.2.1 Strategies for Negative Risks

(22) A cost performance index (CPI) of 0.89 means −

• at this time, we expect the total project to cost 89 percent more than planned.

• when the project is completed we will have spent 89 percent more than planned.

• the project is only progressing at 89 percent of that planned.

• the project is only getting 89 cents out of every dollar invested.

Answer − D

Hint − PMBOK 5 Page 219 - Cost performance index

(23) In a matrix organization, which of the following is true??

• The project manager is responsible for employee skills improvement.

• The functional manager is responsible for employee skills improvement.

• The project manager is responsible for the employee.s annual appraisal.

• The employee is responsible for his or her own skills improvement.

Answer − B

Hint − PMBOK 5 Page 21, Sec 2.1.3 Organizational Structures

(24) Your program manager has come to you, the project manager, for help with a bid for her newest project. You want to protect your company from financial risk. You have limited scope definition. What is the BEST type of contract to choose?

• Fixed price (FP)

• Cost plus percent of cost (CPPC)

• Time and material (T&M)

• Cost plus fixed fee (CPFF)

Answer − D

Hint − CPFF is the best contract type from buyer perspective as the seller is aware that cost overruns may have to be borne by him.

(25) The project management process groups are −

• Initiating, planning, expediting, and control.

• Plan, organize, develop, and control.

• Plan, do, observe, commit.

• Initiating, planning, executing, monitoring &controlling, and closing.

Answer − D

Hint − PMBOK 5 Page 49 Definitions of Process Groups

(26) In which project management process group is the detailed project budget created?

• Initiating

• Before the project management process

• Planning

• Executing

Answer − C

Hint − PMBOK 5 Page 61 Table 3-1 Project Management Process Group and Knowledge Area Mapping

(27) Which of the following conflict resolution techniques will generate the MOST lasting solution?

• Forcing

• Smoothing

• Compromise

• Problem solving

Answer − D

Hint − Except Problem Solving, all other approaches are temporary solutions resulting in recurring conflicts.

(28) Breaking the major deliverables into smaller, more manageable components to provide better control is called −

• Scope planning.

• Decomposition.

• Scope base lining.

• Bill of Materials (BOM).

Answer − B

Hint − PMBOK 5, Page 128, Sec 5.4.2.1 Decomposition

(29) Which of the following is NOT an input to the initiating process group?

• Company processes

• The company culture

• Historical WBSs

• Project scope statement

Answer − D

Hint − PMBOK 5, Page(s) 61, 106. Scope statement is output of Define Scope process under Planning.

(30) Workarounds are determined during which risk management process?

• Identify Risks

• Perform Quantitative Risk Analysis

• Plan Risk Responses

• Control Risks

Answer − D

Hint − PMBOK 5, Page 353, Sec 11.6.3.2

(31) A person who is involved in or may be affected by the activities or anyone who has something to gain or lose by the activity of the project is called a−

• Team member.

• Customer.

• Stakeholder.

• Supporter.

Answer − C

Hint − PMBOK 5, Page 563, Definition of Stakeholder

(32) Quality is −

• meeting and exceeding the customer's expectations.

• adding extras to make the customer happy.

• the degree to which the inherent characteristics fulfill requirements.

• conformance to management's objectives.

Answer − C

Hint − PMBOK 5, Page 556, Definition of Quality

(33) A schedule performance index (SPI) of 0.76 means−

• you are over budget.

• you are ahead of schedule.

• you are only progressing at 76 percent of the rate originally planned.

• you are only progressing at 24 percent of the rate originally planned.

Answer − C

Hint − PMBOK 5, Page 224, Table7-1 SPI definition, usage and interpretation

(34) Contract closure is different from administrative closure in that contract closure −

• occurs before administrative closure.

• is the only one to involve the customer.

• includes the return ofproperty.

• may be done more than once for each contract.

Answer − A

Hint − PMBOK 5, Page 100, Sec 4.6 Close Project or Phase

(35) During the full life cycle of the project, a plot of the project.s expected expenditures will usually follow a characteristic ..S.. shape. This indicates that −

• 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.

Answer −D

Hint − PMBOK 5, Page 214, Figure 7-9 Cost Baseline, Expenditures, and Funding Requirements

(36) An output of administrative closure is the creation of−

• project archives.

• a project charter.

• a project management plan.

• a risk analysis plan.

Answer − A

Hint − PMBOK 5, Page 100, Sec 4.6 Close Project or Phase

(37) A temporary endeavor undertaken to create a new product or service is called a −

• New product development.

• Project.

• Program.

• Enterprise.

Answer − B

Hint − PMBOK 5, Page 553, Definition of Project

(38) An example of scope validation is−

• Reviewing the performance of an installed software module.

• Managing changes to the project schedule.

• Decomposing the WBS to a work package level.

• Performing a benefit-cost analysis to determine if we should proceed.

Answer − A

Hint − PMBOK 5, Page 133-134 Sec 5.5 Validate Scope

(39) What conflict resolution technique is a project manager using when he says, "I cannot deal with this issue now!"

• Problem solving

• Forcing

• Withdrawal

• Compromising

Answer − C

Hint − Avoidance or procrastination to deal with an issue comes under Withdrawal.

(40) Approved Change Requests are an input to−

• Control Scope and Validate Scope.

• Direct and Manage Project Work.

• develop project management plan and develop project charter.

• Develop Project Management Plan and Develop Schedule.

Answer − B

Hint − PMBOK 5, Page 82, Sec 4.3.1.2 Approved Change Requests

(41) A group of related projects that are managed in a coordinated way that usually include an element of ongoing activity is called a−

• Major project.

• Project office.

• Program.

• Group of projects.

Answer − C

Hint − PMBOK 5, Page 553, Definition of Program

(42) 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?

• Critical path method

• Flowchart

• Precedence diagramming

• Work breakdown structure

Answer − A

Hint − PMBOK 5, Page 536, Definition of Critical Path Method (CPM)

(43) A project manager has assembled the project team, identified 56 risks on the project, determined what would trigger the risks, rated them on a risk rating matrix, tested their assumptions and assessed the quality of the data used. The team is continuing to move through the risk management process. What has the project manager forgotten to do?

• Simulation

• Risk mitigation

• Overall risk ranking for the project

• Involving of other stakeholders

Answer − D

Hint − PMBOK 5, Page 319-321 Sec 11.2 Identify Risks

(44) Configuration management plan is−

• Used to ensure that the description of the project product is correct and complete.

• The creation of the work breakdown structure.

• The set of procedures developed to control changes.

• A mechanism to track budget and schedule variances.

Answer − C

Hint − PMBOK 5, Page 138, Sec 5.6.1.1 - Configuration management plan

(45) A rough order of magnitude estimate is made during which project management process group?

• Project planning

• Project closing

• Project executing

• Project initiating

Answer − D

Hint − PMBOK 5, Page 201, Sec 7.2 Estimate Costs

(46)The work defined at the lowest level of the breakdown structure to estimate as well as manage time and cost is called the−

• Activity.

• Task.

• Work package.

• Cost account.

Answer − C

Hint − PMBOK 5, Page 567, Definition of Work Package

(47) All of the following are examples of the cost of nonconformance EXCEPT?

• Rework

• Quality training

• Scrap

• Warranty costs

Answer − B

Hint − PMBOK 5, Page 235

(48) What type of contract do you not want to use if you do not have enough labor to audit invoices?

• Cost plus fixed fee (CPFF)

• Time & material (T&M)

• Fixed price (FP)

• Fixed price incentive fee (FPIF)

Answer − A

Hint − CPFF would involve auditing invoices presented by the vendor to account for the costs incurred.

(49) A project manager has just been assigned to a project. The document that recognizes the existence of the project is called −

• The statement of work.

• The project assignment.

• The project charter.

• The product description.

Answer − C

Hint− PMBOK 5 Page 66 Sec 4.1 Develop Project Charter

(50) The WBS for the project represents −

• All the tangible items that must be delivered to the client.

• All the work that must be completed for the project.

• The work that must be performed by the project team.

• All the activities of the project.

Answer − B

Hint − PMBOK 5, Page 567, Definition of Work Breakdown Structure (WBS)