PMP Questions 181-200
181. The project team has put together a project plan for a project, and the plan has been approved by the stakeholders. The customer asks the project manager if the project can be delivered seven weeks sooner. The customer offers sufficient monetary incentive for the project manager. The project manager decides to fast track the project. This decision
will:
a. Increase risk
b. Decrease risk
c. Not affect risk
d. Risk change cannot be determined
182. A project team evaluates risk in the project. As an outcome there are some positive and negative risks that are identified and evaluated. To evaluate the worst case for the project the project team should evaluate and summarize:
a. All of the risks affecting the project
b. Only the negative risks
c. The negative risks minus the positive risks
d. The positive risks minus the negative risks
183. The Project Management Institute decided to hold its annual meeting in New Orleans, Louisiana. The conference represents a substantial amount of PMI’s operating budget for the year. PMI identified a risk of hurricanes during the month of September, when the
conference was to be held. PMI decided to purchase convention insurance to offset the loss of convention revenue if a hurricane caused cancellation of the conference. This is a risk management strategy called:
a. Avoidance
b. Deflection or transference
c. Acceptance
d. Mitigation
184. During the project lifecycle, in which part of the lifecycle will risk be the lowest?
a. Initiation
b. Planning
c. Execution
d. Closeout
185. The Monte Carlo technique can be used to:
a. Determine the amount of contingency budget needed for the project
b. Determine the amount of the management reserve
c. Determine the critically index for an activity in the schedule
d. Determine the risk index for a risk in the project
186. A project manager must make a narrative description of the project. This narrative description covers the items that will be supplied under the contract with the client. It is called:
a. The project plan
b. The statement of work
c. The exception report
d. The progress report
187. A project manager discovers that there is a part of the project that contains some risk. His or her strategy with this risk is to subcontract the work to an outside supplier by using a firm fixed-price contract. Which of the following is true?
a. The supplier will include an allowance for the risk in the contracted price
b. The supplier will lose money on the contract
c. The project manager will have to compensate the supplier if the risk occurs
d. The project manager will assist the supplier with the project team if the risk occurs
188. A project manager discovers that there is a part of the project that contains some risk. His or her strategy with this risk is to subcontract the work to an outside supplier by using a firm fixed-price contract. The project manager should:
a. Make certain that the project team does not reveal the risk to the supplier until the contract is signed
b. Make every effort to make sure that the supplier is made aware of the risk after the contract is signed
c. Make sure that the supplier understands the risk before the contract is signed
d. Assign a member of the project team to monitor the activity of the supplier to make sure that the supplier deals with the risk properly is it occurs
189. The project manager is considering contracting some of the work of the project to a service bureau. The service bureau has been used in the past by this project manager. The manager has several choices of contracts that can be used to subcontract this work. Which of the following is not a type of contract that the project manager might choose?
a. Firm fixed price
b. Make or buy
c. Cost plus incentive fee
d. Unit price
190. A project manager is employed by a construction company and is responsible for the furnishing of the completed building. One of the first things that the project manager for this project should do is to write a:
a. Work breakdown structure
b. Budget baseline
c. Project charter
d. Project plan
191. A contractor is working on a fixed price contract that calls for a single, lump sum payment upon satisfactory completion of the contract. About halfway through the contract, the contractor’s project manager informs the contract administrator that financial problems are making it difficult for the contractor to pay employees and subcontractors. The contractor asks for partial payment for work accomplished. Which of
the following actions by the buyer is most likely to cause problems for the projects?
a. Starting to make partial payments to the contractor
b. Making no payments to the contractor
c. Paying for work accomplished to date
d. Negotiating a change to the contract
192. Under a blanket order arrangement, which of the following is correct?
a. The cost of carrying the inventory is borne by the buyer
b. The seller delivers all of the material ordered at one time
c. Payments for all of the material are made at one time
d. At the end of the blanket order, prices are adjusted for the actual amount of material delivered
193. Forward buying will:
a. Decrease storage cost
b. Decrease capital investment
c. Decrease transportation costs
d. Decrease inventory
194. Which of the following would not be a part of the procurement management process?
a. Purchasing
b. Contract negotiations
c. Inspection
d. Marketing
195. The equivalent of cost-reimbursable contracts is frequently termed:
a. Back-charge contracts
b. Fixed-price contracts
c. Progress payment contracts
d. Cost-plus contracts
196. The project team has delivered a deliverable to the customer. The deliverable contains defects that are easily correctable. There is a good relationship with the customer and the customer agrees to make the repairs and correct the defects on the item and invoice supplier for the work that was done. This is considered to be a:
a. Bid cost reduction
b. Payment authorization
c. Back charge
d. Release payment
197. A project manager decides to go out for bids on some of the project work that must be done as part of the contract to do a project for another customer. The bids are received and evaluated, and the seller with the lowest bid is selected. The cost of the contract to the project can further be reduced by what action?
a. Illegal methods
b. Procurement leverage
c. Selecting another seller
d. Contract negotiation
198. A buyer extends a formal invitation that contains a scope of work that seeks a response that will describe the methodology and results that will be provided to the buyer. This is called:
a. Invitation to bid
b. Request for information
c. Request for proposal
d. Request for bid
199. A project manager wants to subcontract part of the project. This part of the project is quite complicated, and there are many ways that the work can be done. What method of request for seller responses should be used by the project team?
a. Request for bid
b. Request for quotation
c. Request for proposal
d. Request for information
200. The project team is considering whether to purchase a service or do it themselves. One of the items that should not be considered in their analysis is:
a. The seller’s price
b. The cost and availability of floor space at the team’s facility
c. The seller’s technical staff
d. A competitor’s method of outsourcing
will:
a. Increase risk
b. Decrease risk
c. Not affect risk
d. Risk change cannot be determined
182. A project team evaluates risk in the project. As an outcome there are some positive and negative risks that are identified and evaluated. To evaluate the worst case for the project the project team should evaluate and summarize:
a. All of the risks affecting the project
b. Only the negative risks
c. The negative risks minus the positive risks
d. The positive risks minus the negative risks
183. The Project Management Institute decided to hold its annual meeting in New Orleans, Louisiana. The conference represents a substantial amount of PMI’s operating budget for the year. PMI identified a risk of hurricanes during the month of September, when the
conference was to be held. PMI decided to purchase convention insurance to offset the loss of convention revenue if a hurricane caused cancellation of the conference. This is a risk management strategy called:
a. Avoidance
b. Deflection or transference
c. Acceptance
d. Mitigation
184. During the project lifecycle, in which part of the lifecycle will risk be the lowest?
a. Initiation
b. Planning
c. Execution
d. Closeout
185. The Monte Carlo technique can be used to:
a. Determine the amount of contingency budget needed for the project
b. Determine the amount of the management reserve
c. Determine the critically index for an activity in the schedule
d. Determine the risk index for a risk in the project
186. A project manager must make a narrative description of the project. This narrative description covers the items that will be supplied under the contract with the client. It is called:
a. The project plan
b. The statement of work
c. The exception report
d. The progress report
187. A project manager discovers that there is a part of the project that contains some risk. His or her strategy with this risk is to subcontract the work to an outside supplier by using a firm fixed-price contract. Which of the following is true?
a. The supplier will include an allowance for the risk in the contracted price
b. The supplier will lose money on the contract
c. The project manager will have to compensate the supplier if the risk occurs
d. The project manager will assist the supplier with the project team if the risk occurs
188. A project manager discovers that there is a part of the project that contains some risk. His or her strategy with this risk is to subcontract the work to an outside supplier by using a firm fixed-price contract. The project manager should:
a. Make certain that the project team does not reveal the risk to the supplier until the contract is signed
b. Make every effort to make sure that the supplier is made aware of the risk after the contract is signed
c. Make sure that the supplier understands the risk before the contract is signed
d. Assign a member of the project team to monitor the activity of the supplier to make sure that the supplier deals with the risk properly is it occurs
189. The project manager is considering contracting some of the work of the project to a service bureau. The service bureau has been used in the past by this project manager. The manager has several choices of contracts that can be used to subcontract this work. Which of the following is not a type of contract that the project manager might choose?
a. Firm fixed price
b. Make or buy
c. Cost plus incentive fee
d. Unit price
190. A project manager is employed by a construction company and is responsible for the furnishing of the completed building. One of the first things that the project manager for this project should do is to write a:
a. Work breakdown structure
b. Budget baseline
c. Project charter
d. Project plan
191. A contractor is working on a fixed price contract that calls for a single, lump sum payment upon satisfactory completion of the contract. About halfway through the contract, the contractor’s project manager informs the contract administrator that financial problems are making it difficult for the contractor to pay employees and subcontractors. The contractor asks for partial payment for work accomplished. Which of
the following actions by the buyer is most likely to cause problems for the projects?
a. Starting to make partial payments to the contractor
b. Making no payments to the contractor
c. Paying for work accomplished to date
d. Negotiating a change to the contract
192. Under a blanket order arrangement, which of the following is correct?
a. The cost of carrying the inventory is borne by the buyer
b. The seller delivers all of the material ordered at one time
c. Payments for all of the material are made at one time
d. At the end of the blanket order, prices are adjusted for the actual amount of material delivered
193. Forward buying will:
a. Decrease storage cost
b. Decrease capital investment
c. Decrease transportation costs
d. Decrease inventory
194. Which of the following would not be a part of the procurement management process?
a. Purchasing
b. Contract negotiations
c. Inspection
d. Marketing
195. The equivalent of cost-reimbursable contracts is frequently termed:
a. Back-charge contracts
b. Fixed-price contracts
c. Progress payment contracts
d. Cost-plus contracts
196. The project team has delivered a deliverable to the customer. The deliverable contains defects that are easily correctable. There is a good relationship with the customer and the customer agrees to make the repairs and correct the defects on the item and invoice supplier for the work that was done. This is considered to be a:
a. Bid cost reduction
b. Payment authorization
c. Back charge
d. Release payment
197. A project manager decides to go out for bids on some of the project work that must be done as part of the contract to do a project for another customer. The bids are received and evaluated, and the seller with the lowest bid is selected. The cost of the contract to the project can further be reduced by what action?
a. Illegal methods
b. Procurement leverage
c. Selecting another seller
d. Contract negotiation
198. A buyer extends a formal invitation that contains a scope of work that seeks a response that will describe the methodology and results that will be provided to the buyer. This is called:
a. Invitation to bid
b. Request for information
c. Request for proposal
d. Request for bid
199. A project manager wants to subcontract part of the project. This part of the project is quite complicated, and there are many ways that the work can be done. What method of request for seller responses should be used by the project team?
a. Request for bid
b. Request for quotation
c. Request for proposal
d. Request for information
200. The project team is considering whether to purchase a service or do it themselves. One of the items that should not be considered in their analysis is:
a. The seller’s price
b. The cost and availability of floor space at the team’s facility
c. The seller’s technical staff
d. A competitor’s method of outsourcing
Answers
181. A
Increase risk
182. B
Only the negative risks
183. B
Deflection
184. D
Closeout
185. C
Determine the critically index for an activity in the schedule
186. B
The statement of work
187. A
The supplier will include an allowance for the risk in the contracted price
188. C
Make sure that the supplier understands the risk before the contract is signed
189. B
Make or buy
190. C
Project charter
191. D
Negotiating a change to the contract
192. D
At the end of the blanket order, prices are adjusted for the actual amount of material delivered
193. C
Decrease transportation costs
194.D
Marketing
195. D
Cost-plus contracts
196. C
Back charge
197. D
Contract negotiation
198.C
Request for proposal
199.C
Request for proposal
200.D
A competitor’s method of outsourcing
Increase risk
182. B
Only the negative risks
183. B
Deflection
184. D
Closeout
185. C
Determine the critically index for an activity in the schedule
186. B
The statement of work
187. A
The supplier will include an allowance for the risk in the contracted price
188. C
Make sure that the supplier understands the risk before the contract is signed
189. B
Make or buy
190. C
Project charter
191. D
Negotiating a change to the contract
192. D
At the end of the blanket order, prices are adjusted for the actual amount of material delivered
193. C
Decrease transportation costs
194.D
Marketing
195. D
Cost-plus contracts
196. C
Back charge
197. D
Contract negotiation
198.C
Request for proposal
199.C
Request for proposal
200.D
A competitor’s method of outsourcing
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