Obj Sit 15 Exam Guidance

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 :
A. Expert Judgment
B. Rolling wave
C. Strategic
D. 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?
A. Project Integration Management
B. Strategic Management
C. Operations Management
D. 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.
A. Unification
B. Consolidation
C. Communication
D. 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:
A. Work breakdown structure
B. Project scope
C. Contract
D. 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?
A. The assumptions will be considered as true, real, or certain.
B. By making the assumption, it tends to reduce the project risk.

C. Project assumptions are based upon historical data used for the project.
D. 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?
A. Standard forms or templates.
B. Upper management involvement
C. Functional work authorizations
D. 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.
A. Project Management Plan
B. Project Charter
C. Justifications
D. 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.
A. Develop Project Charter
B. Develop Project Management Plan
C. Project Process Groups
D. 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?
A. Insuring that plans are produced to implement the project by phases.
B. Issuing work orders so that financial data can be collected.
C. Transition the lease of equipment to the owner
D. 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:
A. Tasks.
B. Milestones
C. Deliverables
D. 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.
A. Monitor and Control Project Work
B. Perform Integrated Change Control
C. Direct and Manage Project Work
D. 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:
A. Monitor and Control Project Work
B. Direct and Manage Project Work
C. Develop Project Charter
D. 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:
A. Monitoring and Controlling Project Work
B. Closing Project or Phase
C. Perform Integrated Change Control
D. 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:
A. Cost Management Plan
B. Project Schedule
C. Risk Register
D. 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:
A. Cost Management
B. Time Management
C. Performance of Corporate Social Responsibility

D. 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?
A. Project statement of work
B. Organizational Process Assets
C. Enterprise Environmental Factors
D. 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.
A. Project Charter
B. Work Performance Information
C. Outputs from other processes
D. 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.
A. Change Control Tools
B. Expert Judgement
C. Project Management Information system
D. 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.
A. Work Performance Data
B. Change Log
C. Change Requests
D. 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?
A. Agreements
B. Approved Change Requests

C. Validated Changes
D. Accepted Deliverables
Answer: C
Hint: See Monitor and Control Project Work inputs, Page 65, PMBOK 5
Project Scope Management

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
A. Plan Scope Management
B. Collect Requirements
C. Control Scope
D. 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?
B. The Work Breakdown Structure
C. The Scope Statement
D. Project Specifications
Answer: A
Hint: Scope Management Plan is a part of Project Management Plan
(3) Project Scope:
A. is of concern only at the start of the project
B. is mainly a problem to be handled by the change control procedures during the

project execution phase.
C. Should be managed and controlled from the project concept through closing
D. 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:
A. The project manager
B. The sponsor
C. The Vice President over a functional management group
D. The customer
Answer:B
Hint: It is created by project sponsor(s)
(5) The project scope statement furnishes the basis for:
A. clearly defined acceptance criteria
B. Provides links to the clients functional management groups

C. Allowing the project to move to the next phase
D. 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:
A. the original description of the project's end results
B. a summary description of the project's original content and end product,

including basic budgetary and time constraint data
C. the original project budget and schedule
D. 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:
A. Solution Requirements
B. Project Requirements
C. Transition Requirements
D. 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:
A. Product scope
B. Project scope
C. A combination of project and product scope
D. 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?
A. Product ID number
B. Code of account identifier
C. Quality inspection identifier
D. 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?
A. Idea/mind mapping
B. Multicriteria Decision Analysis
C. Affinity Diagram
D. 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.
A. Project Scope Management
B. Bill of Materials
C. Work Breakdown Structure
D. 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. a-b-c-d
B. c-d-b-a
C. b-a-c-d
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
A. Product Scope
B. Project Scope
C. Both A & B
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
A. Project Charter
B. Project Management Plan
C. EEF
D. 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?
A. Scope Management Plan

B. Requirement Management Plan
C. Stakeholder Register
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
A. Prototypes
B. Variance Analysis
C. Benchmarking
D. 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?
A. Scope Baseline
B. Verified Deliverables
C. Project Management Plan
D. Work Performance Data
Answer: A
Hint: See Validate Scope process, Page 106, PMBOK 5

(18) Decomposition is an important tool used to
A. Control Scope
B. Define Scope
C. Validate Scope
D. 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
A. Interviews
B. Focus Groups
C. Facilitated Workshops
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
A. Context Diagrams
B. Affinity Diagram
C. Requirements Traceability Matrix

Answer: C
Hint: Read about Requirements Traceability Matrix, Page 118-19, PMBOK 5
Project Time Management

pattern of questions on Project Time Management being asked in PMP
(1) Milestones established by the customer must be adhered to by:
A. Project manager
B. Functional managers
C. The customer
D. 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:
A. Functional manager
B. Project manager
C. Director of project management
D. Customer
Answer: B
Hint: It is Project Manager's responsibility.

(3) In which of the following project phases is the project schedule
developed?
A. Conceptual
B. Planning
C. Implementation
D. Design
Answer: B
Hint: Refer Process and Knowledge area mapping on Page 61, PMBOK 5
(4) To crash a schedule you should:
A. Increase the time allowed on those tasks that have float.
B. Try to invest more time on tasks that are behind schedule.
C. Replace the team members that are not performing well.
D. 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
A. Plan Schedule Management
B. Control Schedule
C. Develop Schedule
D. 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?
A. Clear scope of work
B. Decreasing the time required for decision making
C. Eliminating idle time
D. 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
A. Scope baseline
B. EEF
C. OPA
D. Milestone list
Answer: D
Hint: See Figure 6-1, Page 143, PMBOK 5
(8) The successful project managers spend most of their time:
A. Planning with their personnel
B. Planning with the top management

C. Communication with the project team
D. Studying project results.
Answer: C
Hint: Communication takes nearly 90 percent of project manager's time.
(9) Resource leveling attempts to :
A. Balance the demand and supply of resources considering the availability

constraints.
B. Ensure that the budget abnormalities are overcome.
C. Reduce the amount of resources so that they can be shared with on other
endeavors.
D. 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
A. Analogous Estimating
B. Group Decision-Making Techniques
C. Reserve Analysis
D. Leads and Lags
Answer: D

(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. a-b-c-d-e-f-g
B. c-a-d-f-e-b-g
C. b-a-c-d-e-f-g
D. b-c-a-d-f-e-g
Answer: B
(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
A. WBS
B. Activity Resource requirements
C. Resource breakdown Structure

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
A. Schedule Compression
B. Schedule Model
C. Schedule Data
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
A. Schedule Management Plan
B. Develop Project Management Plan
C. Project Schedule Presentation
D. 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?
A. Activity List
B. Schedule Management Plan
C. Activity List
D. Project Schedule Network Diagram
Answer: B
(16) The following inputs are used in both Sequence Activities and Estimate
Activity Resources process, excluding
A. Schedule Management Plan
B. Activity List
C. Risk Register
D. Activity Attributes
Answer: C
(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
A. Decomposition
B. Rolling Wave Planning
C. Alternative Analysis
D. 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?
A. Sequence Activities
B. Define Activities
C. Develop Schedule
D. Estimate Activity Durations
Answer: A
Hint: See Sequence Activities on Page 141, PMBOK 5
(19) The logical relationships under Precedence Diagramming Method

(PDM) include:
A. Finish-to-start
B. Start-to-finish
C. Predecessor-Follower
D. Only A and B
E. 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:
A. Alternative Analysis
B. Bottom-up Estimating
C. Parametric Estimating
D. Three-point estimating
Answer: B
Hint: Read about Bottom-up Estimating on Page 164, PMBOK 5
Project Cost Management

pattern of questions on Project Cost Management being asked in PMP
(1) Which type of project cost estimate is the most accurate?
A. Preliminary
B. Definitive
C. Order of magnitude
D. 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?
A. Cost plus fixed fee
B. Fixed price
C. Fixed price plus incentive free

D. 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
A. Highest
B. Lowest
C. Major work effort
D. 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?
A. CV = EV - PV
B. CV = EV - AC
C. CV = EV / AC
D. A and c
Answer:B
Hint: Cost variance, Page 218, PMBOK 5
(5) Determining budget can be best described by which of the following?
A. The process of developing the future trends along with the assessment of
probabilities, uncertainties, and inflation that could occur during the project
B. The process of accumulating costs of individual activities to establish a cost
baseline.
C. The process of establishing budgets, standards, and a monitoring system by

which the investment cost of the project can be measured and managed
D. 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?
A. Lighting and heating for the corporate office
B. Workers Compensation insurance
C. Piping for an irrigation project
D. 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?
A. The process of developing the future trends along with the assessment of
probabilities, uncertainties, and inflation that could occur during the project
B. The process of assembling and predicting costs of a project over its life cycle
C. The process of assembling and predicting costs of a project over its life cycle
D. 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.
A. -$150
B. $150
C. -$50
D. $50
Answer: A
Hint: CV=EV-AC
(9) One of the types of cost estimation is Rough Order of Magnitude. This
estimate:
A. is performed when detailed information is available
B. is performed after the scope is clearly defined
C. is a near perfect estimate
D. Usually made before the project is designed, and must therefore rely on the cost
data of similar projects built in the past.
Answer: D
(10) The sum of all budgets established for the work to be performed is
known as:
A. Planned Value
B. Aggregated Planned Value

C. Budget at Completion
D. 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
A. Project Cost Management
B. Project Management Process
C. Project Scope Management
D. 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
A. Control Costs
B. Estimate Costs
C. Plan Cost Management
D. Determine Budget
Answer: C

(13) The process of monitoring the status of the project to update the
project costs and managing changes to the cost baseline is called
A. Determine Budget
B. Control Costs
C. Estimate Costs
D. Plan Cost Management
Answer: B
(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. a-b-c-d
B. c-a-b-d
C. b-c-a-d
D. a-c-b-d
Answer: C

(15) The process of developing an approximation of the monetary
resources needed to complete project activities is known as
A. Estimate Costs
B. Determine Budget
C. Both A & B
Answer: A
(16) Which one of the following is not an input used in the process of
Estimate Costs?
A. Scope Baseline
B. Human Resource Management plan
C. Cost Management Plan
D. Project Funding Requirements
Answer: D
(17) The tools and techniques used in the process of Determine Budget
includes all but
A. Cost Aggregation
B. Cost of Quality
C. Expert Judgement
D. Historical Relationships
Answer: B
(18) Which of the following output of Determine Budget process is not used
as an input in the Control Costs Process?
A. Project Funding Requirements
B. Cost Baseline
C. Both A & B
Answer: B
(19) Which of the following is not an output of the Control Costs process?
A. Cost Forecasts
B. Change Requests
C. Activity Cost Estimates
D. Work Performance Information
Answer: C
Hint:Hint: See Figure 7-1, Page 194, PMBOK 5
(20) The tools and techniques used in Control costs includes all but
A. To-Complete Performance Index (TCPI)
B. Earned Value Management (EVM)
C. Reserve Analysis
D. Cost Aggregation
Answer: D
Project Quality Management

pattern of questions on Project Quality Management being asked in PMP
(1) A project manager's main responsibility in a project meant to create a

product is: :
A. Ensuring it is high grade
B. To pack exciting features in the product
C. Ensuring it is high quality
D. 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:
A. to determine whether a process is or not
B. to detect the problem
C. to reject the problem
D. 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::
A. Plan Quality Management
B. Control Quality
C. Perform Quality Assurance
D. 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?
A. Audit
B. Peer Review
C. Process Analysis
D. 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 :
A. Plan Quality Management
B. Quality Assurance
C. quantitative measurement
D. quantitative assessment of the project
E. 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 :
A. Project Communications Management
B. Project Scope Management
C. Project Quality Management
D. 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?
A. quality
B. product design
C. pricing
D. 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 :
A. is the highest level possible
B. is as close to the project objectives as possible
C. represents the least cost to the project.
D. 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 :
A. using the process of monitoring project results to decide if the outputs meet the
requirements
B. a production system
C. an inspection system
D. fitness for purpose
Answer: A
Hint: PMBOK 5 page 248 Sec 8.3 Control Quality
(10) Cost of Quality includes:
A. all costs incurred to assure the production and delivery of acceptable products
and services.
B. Only costs classified as prevention, detection and corrective action.
C. Only the cost of scrap, rework due to defects, customer returns and warranty
costs.
D. 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:
A. Cost-Benefit Analysis
B. Benchmarking
C. Seven Basic Quality Tools
D. 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?
A. Quality Management Plan
B. Process Improvement Plan
C. Quality Metrics
D. 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:
A. Quality Management and Control Tools

B. Quality Audits
C. Inspection
D. 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:
A. Change Requests
B. Quality Metrics
C. Quality Control Measurements
D. 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?
A. Pareto Diagrams
B. Check sheets
C. Scatter Diagrams
D. 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
A. Scatter Diagrams
B. Histograms
C. Cause-and-effect diagrams
D. 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
A. Statistical Sampling
B. Design of Experiments (DOE)
C. Benchmarking
D. 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
A. Brainstorming
B. Nominal Group Technique

C. Force-Field Analysis
D. 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?
A. Quality Checklists
B. Process Improvement Plan
C. Quality Management Plan
D. 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:
A. Tree Diagrams
B. Process decision program charts (PDPC)
C. Affinity Diagrams
D. Matrix Diagrams
Answer: A
Hint: PMBOK 5, Page 245, 8.2.2.1 Tree diagrams

Project Human Resource Management
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:
A. Hiring the team
B. Preparing org charts
C. Developing Staffing management plan
D. Feedback sessions
E. 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:
A. 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
B. Used by the PM to influence upper management and the critical stakeholders
C. Important if the project manager wants to maintain the respect of the project
team
D. 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?
A. Expectancy and Theory X
B. Theory Y and Maslow's Hierarchy
C. Herzberg's Hygiene Factors and Expectancy
D. 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:
A. Define Roles and Responsibilities
B. Extend favors to some important team members
C. Provide feedback to team members
D. Resolving interpersonal conflicts
E. 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:
A. Referent power
B. Formal authority
C. Informal power structure
D. 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?
A. Formal power
B. Expert power
C. Penalty power
D. 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:
A. an integrator
B. a functional manager
C. a line manager
D. 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:
A. Work their way up from assistants in the project office to full-fledged project
managers, supplementing that experience with formal education.
B. Comes right from Harvard's MBA program into managing very large projects.
C. Are the technical experts.
D. 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?
A. Completely selling the project management concept to the entire organization.
B. Choice of the type of project manager.
C. Choice of the type of project organization to be utilized.
D. 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.
A. Project expediter
B. Matrix
C. Projectized organization
D. 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
A. Project Integration Management
C. Project Human Resource Management
D. Project Communications Management
Answer:C
Hint: PMBOK 5, Page 255, 1st Paragraph
(12) For the following Project Human Resource Management Processes
1. Plan Human Resource Management
2. Develop Project Team
3. Acquire Project Team
4. Manage Project Team
A. 1-2-3-4
B. 3-2-1-4
C. 2-1-3-4
D. 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?
A. Networking
B. Pre-assignment
C. Organizational theory
D. 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
A. Personal Assessment Tools
B. Recognition and awards
C. Project Performance Appraisals
D. 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?
A. Issue Log
B. Resource Calendars
C. Activity Resource Requirements
D. Human Resource Management Plan
Answer:A
(16) The process of identifying and documenting project roles,

responsibilities, required skills, reporting relationships, and creating a
staffing management plan is known as
A. Develop Project Team
B. Manage Project Team
C. Plan Human Resource Management
D. Acquire Project Team
Answer:C
(17) The information used for the development of the human resource
management plan includes all except
A. The project life cycle
B. A change management plan
C. A configuration management plan

D. 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
A. Networking
B. Organizational Theory
C. Expert Judgment
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
A. Performing
B. Storming
C. Forming
D. Norming
Answer:B
(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
A. Collaborate/Problem Solve
B. Compromise/Reconcile
C. Smooth/ Accommodate
D. Withdraw/Avoid
Answer:C
Project Communication Management

pattern of questions on Project Communication Management being
asked in PMP Certification Exams.
(1) Which of the following can cause a conflict?
A. Insufficient action on the part of the project manager
B. Competition for facilities, equipment, material, manpower and other resources
C. Personality conflicts between managers and/ or other personnel
D. 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:
A. Written documents
B. Oral communication
C. Tactile contact
D. 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:
A. Progress report
B. Project directive
C. Project manager
D. Customer
Answer: C
Hint: Project manager is responsible for executing and facilitating all the
project-related communication.
(4) Communication management:
A. Is Is important only in projects involving telephone, television, radio, or

newspaper production facilities and operations
B. Is not a big problem for people with normal speech, sight and hearing
C. Involves the sender, the message, the medium and the receiver
D. Preparing an agenda
Answer:C
Hint: PMBOK 5, Page 294, Figure 10-4. Basic Communication Model
(5) Truly effective communication:

A. Depends on using multiple channels
B. Depends on selecting the right method for each message and avoiding
duplication, since everyone is overloaded with information
C. Cannot depend solely on non-verbal signals which might be misunderstood
D. Can only be achieved by communication professional
E. 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:
A. Oral and written
B. Non-verbal/ visual
C. Telepathy
D. only A and B
E. 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. A project management software package operating on appropriate computer

facilities
B. Software, documents, and procedures

C. Automated tools and manual methods for gathering, recording, filtering, and
dissemination of pertinent information for members of a project team
D. 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?
A. Communicator
B. Message
C. Medium
D. Recipient
Answer: C
Hint: PMBOK 5, Page 293 Sec 10.1.2.3 Communication Models
(9) The contemporary view of conflict is that:
A. Conflict is bad
B. Conflict is caused by trouble makers
C. Conflict should be avoided
D. 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?
A. 10-20%
B. 50-70%
C. 75-90%
D. 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?
C. Project Procurement Management
Answer: A
(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?
A. Manage Communications Management
B. Plan Communications Management
C. Control Communications Management
Answer: B
Hint: PMBOK 5, Page 287, Section 10.1
(13) The inputs used in the process of Plan Communications Management

includes all except
B. Stakeholder Register
C. OPA
D. Communications Management Plan
Answer: D
(14) The tools and techniques used in the process of Manage

Communications excludes
A. Information Management System
B. Communication Technology
C. Communication Models
D. Communication Requirements Analysis
Answer: D
(15) The output of the Control Communications Process includes all except
A. Change Requests
B. Work Performance Information
C. Project Communications
D. OPA Updates
Answer: C
(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
A. True
B. False
C. Incorrect as the plan cannot change without approval
D. Not completely true as it is not possible to review the plan frequently
Answer: A
(17) The choice of communication technology is not affected by
A. Project Environment
B. Skills of the project team
C. Sensitivity and confidentiality of the information

D. 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
A. Interactive Communication
B. Pull Communication
C. Push Communication
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
A. Manage Communications
B. Plan Communications Management
C. Control Communications
D. Both A & C
Answer: A

(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
A. Performance Reporting
B. Information Management System
C. Expert Judgment
Answer: B
Hint: PMBOK 5, Page 306, Section 10.3.2.1
Project Risk Management

pattern of questions on Project Risk Management being asked in PMP
(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
A. Perform Qualitative Risks Analysis
B. Perform Quantitative Risk Analysis
C. Plan Risk Management
D. Plan Risk Responses
Answer:A
(2) The inputs used in the process of Perform Qualitative Risk Analysis
includes all except
A. Scope Baseline
B. Risk Register
C. Quality Management Plan
D. Risk Management Plan
Answer: C
(3) A risk is defined as ____________ event or condition that, if it occurs,

has a positive or negative effect on one or more project______________.
A. indefinite, probabilities
B. uncertain, objectives
C. sure, goals
D. 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?
A. start
B. design
C. closing
D. 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?
A. fixed price
B. Cost plus fix fee
C. Cost plus incentive fee
D. 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?
A. Work Performance Information
B. Change Requests
C. OPA updates
D. Risk Register
Answer: D
Hint: PMBOK 5, Section 11.6 Control Risks
(7) Which of the following fit the category of external risks?
A. Project delays, budget under-runs, movement of city utilities
B. Regulatory, currency changes, taxation
C. Natural disasters, regulatory, design

D. Inflation, design, social impact
E. 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 :
A. Determining the interaction of the amount at stake and the expected value
B. Association of the probabilities with the risk events
C. Calculating the average outcome when the future includes scenarios that may or
may not happen
D. 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
A. Multiplying the sum of each the risk times the amount at stake
B. Calculating the cumulative sum of the probability for each risk and multiplying
this value times the consequence of occurrence of the risk events
C. Cannot be calculated since all risks are not known
D. 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.
A. Share
B. Accept
C. Enhance
D. Exploit
Answer: C
(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
A. A.1-2-3-4-5-6
B. B.1-3-2-4-5-6
C. C.1-3-4-2-5-6
D. D.3-1-2-4-5-6
Answer:B
(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?
A. Plan Risk Responses
B. Control Risks
C. Identify Risks
D. Perform Qualitative Risk Analysis
Answer:B
(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
A. Risk Threshold
B. Risk Appetite
C. Risk Tolerance
Answer:A
(14)
Which of the following tools and techniques is not used in the process of Identify Risks
A. SWOT Analysis
B. Diagramming Techniques
C. Checklist Analysis
D. Risk Categorization
Answer:D
(15) The tools and techniques used in the process of Plan Risk Responses
includes all except
A. Contingent Response Strategies
B. Risk and Impact Matrix
C. Strategies for positive risks or opportunities
D. Expert Judgment
Answer:B
(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
A. Meetings
B. Expert Judgment
C. Analytical Techniques
D. Both B& C
Answer:C

(17) The Risk Management Plan, which is the outcome of the process Plan
Risk Management includes all except
A. Methodology
B. Roles and Responsibilities
C. Budgeting
D. 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
A. Sensitivity Analysis
B. Expected Monetary value Analysis
C. Modeling and Simulation
D. Expert Judgment
Answer:B
(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
A. Expected Monetary value Analysis
B. Modeling and Simulation

C. Expert Judgment
D. Sensitivity Analysis
Answer:B
(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
A. Mitigate
B. Transfer
C. Accept
D. Avoid
Answer:C
Project Procurement Management

ere 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:
A. requires extremely well defined specifications
B. requires formal procedures for scope changes
C. seller assumes financial and technical risk
D. 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:
A. funding management
B. managing relationships and interfaces
C. performance control
D. all of the above
Answer: D
(3) The major type(s) of standard warranty used in the business

environment is(are):
A. express
B. implied
C. negotiated
D. A and B
E. 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. a reimbursement of allowable costs plus a fixed fee which is paid proportionately
as the contract progresses
B. a reimbursement of allowable cost of services performed plus an agreed upon

percentage of the estimated cost as profit
C. the supplier with a fixed price for delivered performance plus a predetermined
fee for superior performance
D. 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
A. Plan Procurement Management
B. Control Procurements
C. Close Procurements
D. Conduct Procurements
Answer:B
(6) From a contract management perspective, the project manager must

consider the:
A. acquisition process
B. contract administration
C. ecological environment
D. offer, acceptance, and consideration
E. 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
A. Make-or-buy analysis
B. Market Research
C. Bidder Conferences
D. Expert Judgment
Answer: C
Hint: PMBOK 5, Page 356, Sec. 12.1
(8) Which contract type places the most risk on the seller?
A. Cost plus percentage fee
B. Cost plus incentive fee
C. Cost plus fixed fee
D. Fixed price plus incentive fee
E. 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
A. True
B. False
C. Not sure
D. 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?
A. Reassign the team
B. Contract completion
C. Archive the project records
D. 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:
A. Project Procurement Management
B. Project Time management

C. Project Cost Management
D. Project Risk Management
Answer: A
(12) For the processes in the Project Procurement Management,
1. Plan Procurement Management
2. Control Procurements
3. Conduct Procurements
4. Close Procurements
A. A. 1-2-3-4
B. B. 1-3-2-4
C. C. 1-4-3-2
D. 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
A. Seller Proposals
B. Procurement statement of work
C. Source Selection Criteria

D. 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
A. Firm Fixed Price Contracts (FFP)
B. Fixed Price Incentive Fee Contracts (FPIF)
C. Fixed Price with Economic Price Adjustment Contracts ( FP- EPA)
Answer: A
(15) 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
A. Fixed Price Incentive Fee Contracts (FPIF)
B. Fixed Price with Economic Price Adjustment Contracts (FP- EPA)
C. Firm Fixed Price Contracts (FFP)
D. Fixed Assets Price (FAP)
Answer: A

(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
A. Cost Plus Fixed Fee Contracts ( CPFF)
B. Cost Plus Award Fee Contracts (CPAF)
C. Cost Plus Incentive Fee Contracts ( CPIF)
D. Cost Plus Percentage Completion (CPPC)
Answer: C
(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
A. Cost Plus Fixed Fee Contracts ( CPFF)
B. Cost Plus Award Fee Contracts (CPAF)
C. Cost Plus Incentive Fee Contracts ( CPIF)
D. Cost Plus Firm Fixed Fee Contracts ( CPFFF)
Answer: B
(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
A. Procurement Management Plan
B. Procurement Statement of Work
C. Procurement Documents
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
A. Market Research
B. Make-or-buy Analysis
C. Expert Judgment
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
A. Time and Material Contracts (T&M)
B. Cost-reimbursable Contracts
C. Fixed Price Contracts
D. Both B & C
Answer: A
Project Stakeholder Management

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?
B. Project Stakeholder Management
C. Project Integration Management
D. 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?
A. Manage Communications
B. Plan Stakeholder Management
C. Manage Stakeholder Engagement
D. Control Stakeholder Engagement
Answer: C
Hint: Manage Stakeholder Engagement, Page 391, PMBOK 5

(3) Which of the following is/are required for identifying stakeholders:
A. Stakeholder register
B. Procurement documents
C. Project management plan
D. all of the above
E. 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?
A. Change management plan
B. Communications management plan
C. Stakeholder management plan
D. Change log
Answer:A
Hint: Manage Stakeholder Engagement, Page 391, PMBOK 5
(5) Which of the following is not a stakeholder?
A. Supplier
B. Customer
C. PMO
D. Competitor
Answer:D
Hint: A competitor has no stake in a project
(6) Stakeholder analysis can be performed using some classification models

such as:
A. Managerial grid
B. Johari window
C. Performance grid
D. Salience model
Answer: D
Hint: Stakeholder analysis, Page 396, PMBOK 5
(7) Which one of the following is the best way to manage stakeholders?
A. Ensuring they don't get to meet outside of work
B. Meeting all of them when a milestone is ready
C. Keeping them informed throughout the project
D. 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:
A. Leading
B. Supportive
C. Active
D. Neutral
Answer: A
Hint: See Analytical Techniques, Page 402 , PMBOK 5
(9) Stakeholders engagement assessment matrix is used to map
A. Current engagement level
B. Desired engagement level
C. Assured engagement level
D. Only A and B
E. 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?
A. In the early stages
B. Half-way through
C. Depends on their role and position
D. 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?
A. Meet A to understand concerns and update issue log
B. Meet B to inform about the project and know the feedback
C. A, B
D. 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:
A. Stakeholder Management Plan
B. Communications Management Plan
C. Procurement Documents
D. A and B
Answer: D
Hint: Both the plans capture the communication requirements
(13) Work Performance Information is an output of:
A. Plan Stakeholder Engagement
B. Manage Stakeholder Engagement

C. Control Stakeholder Engagement
D. 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?
A. Delphi Technique
B. Management Skills
C. Interpersonal Skills
D. 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?
A. Stakeholders family history
B. Stakeholders hobbies
C. Expectations from the project
D. 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:
A. Internal/External
B. Aware/Unaware
C. Optimistic/Pessimistic
D. 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?
A. Neutral, Resistant, Unaware, Supportive, Leading
B. Unaware, Neutral, Resistant, Supportive, Leading
C. Unaware, Resistant, Neutral, Supportive, Leading
D. 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?
A. The stakeholder talks less
B. The stakeholder's current engagement level varies from the desired level
C. The stakeholder is remotely located
D. 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:
A. Scope and impact of change to stakeholders
B. Engagement levels of stakeholders
C. Stakeholders influence on project
D. Stakeholders Compensation and Remunerations
Answer: D
Hint: Stakeholder Management Plan doesn't talk about compensation or

remuneration
(20) Identify stakeholders is a part of:
B. Project Stakeholder Management
C. Project Human Resource Management
Answer: B
Hint: Refer to Process and Knowledge area mapping, Page 61 , PMBOK 5

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What is a Project?

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

Projects are unique.

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

It is not an ongoing effort such as in operations.

It ceases when objective has been attained.

The team is disbanded upon project completion.

Operations, on the other hand, are repetitive. Generating bills every

Subprojects are components of a project that often contracted out.

Project management is accomplished through the use of the processes such

Monitor and Controlling

Project managers deliver projects while balancing the following constraints:

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

What is Program Management?

Program management involves centrally managing and coordinating groups

In some cases Project Management is a subset of Program Management.

What is Portfolio Management?

Senior managers or senior management teams typically take on the

Portfolio management encompasses managing the collections of programs

Portfolio management also concerns monitoring active projects for

Exponential expansion of human knowledge

Global demand for goods and services

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

Improved control over the project

Improved budget and quality

Project Management Skills:

Project Management Knowledge Competency: This refers to what the

Project Management Performance Competency: This refers to what the

Personal Competency: This refers to how the project management team

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

Motivation: Energizing people to achieve high levels of performance and to

Negotiation and conflict management: Conferring with others to come to

Decision Making: Ability to take decision independently.

Political and cultural awareness: Important to handle various personal and

Team Building: Ability to create a productive team.

What is PMBOK Guide?

Project Integration Management

Project Scope Management

Project Cost Management

Project Time Management

Project Risk Management

Project Communication Management

Project Procurement Management

Project Stakeholder Management

Each Knowledge area has certain processes. There are a total of 47

Tools & Techniques

Further the discipline of Project Management has five process groups.

Monitoring and Controlling

Each process is part of one of these five project phases. It is important to

(1) A planning method, which provides details of the work to accomplish,

A. Project Integration Management

D. Project Process Management

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

Hint: Refer First para, Page 63, PMBOK 5

(4) One of the initial project documents, issued by senior management,

A. Work breakdown structure

Hint: A Contract authorizes work for a seller

(5) During the planning development process, at times it is necessary to

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

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

D. Senior management predefines the budget constraints.

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