Project Management Multiple Choice Questions
Which of the following are projects? 1. Staging an open air concert 2. Getting married 3. Staying married
1 only
2 only
1 and 2 only
1, 2 and 3
Which of the following is correct? 1. Projects are about managing change 2. Projects are about teamwork 3. Projects are about uncertainty
1 only
2 only
1 and 2 only
1, 2 and 3
Which of the following is correct?
Projects are temporary and repetitive
Projects are unique and ongoing
Projects are ongoing and repetitive
Projects are temporary and unique
Approval to go ahead with a project should not be given unless it satisfies which three criteria?
Technical, feasibility, business
Technical, business, functional
Business, feasibility, functional
Business, functional, team
Which of the following is correct when managing a project? 1. All decisions must be directed towards achieving the project objectives 2. Only the remaining work can be managed 3. All decisions must have the sponsor’s approval
1 only
2 only
1 and 2 only
1, 2 and 3
What is the benefit of classifying projects?
To help with network optimisation
To demonstrate the link between strategy and projects
To help understand how to manage projects
All of the above
Which of the following are correct? The four phases in a project life cycle are:
Initiation and definition; management; execution; control
Initiation and definition; management and control; closure; operations and maintenance
Starting a management consultancy
Initiation and definition; planning and development; execution and control; closure
Which of the following is correct? The principles of project management:
Apply to any discipline
Are best suited to engineering and construction disciplines
Are best suited to event management
Apply to any discipline except operations management
Which of the following is correct? Fast tracking is a method of reducing
The cost of a project
The duration of a project
The complexity of a project
The number of stakeholders in a project
Which of the following people benefit the most from feed-forward information?
The project manager and his senior colleagues
The sponsor and users
Participants involved in early project phases
Participants involved in later project phases
Which of the following statements are true? 1. A project is an investment 2. Project selection is rarely related to an organisation's long-term strategy and business plan
1 only
2 only
1 and 2
Neither 1 or 2
Which of the following is correct? The principal purpose of a business case is to:
Approve the project charter
Obtain the funding for a project
Obtain management commitment and approval for investment
To educate the end user about the project
Which of the following is correct? Prioritisation techniques should reflect: 1. The degree of business risk involved 2. The organisation's internal and external environment 3. Cost of prioritisation activities compared to expected project returns
1 and 2 only
1 and 3 only
2 and 3 only
1, 2 and 3
Which of the following is correct? The purpose of a feasibility study is to:
Assess the factors which might affect the project
Determine if a business opportunity is possible
Improve confidence in the project idea
All of the above
Which of the following is correct? The cost of capital is:
The annual capital budget of an organisation
The opportunity cost of an investment
The expected return on an investment
The capital expenditure required on a project
Project communication with the customer is crucial to a project's success. This communication takes place between the executives, project managers, and employees of both the customer and the contractor. The key to success is that the formal communication should go through which of the following people?
The project manager
The project sponsor
An executive
Functional managers
Project stakeholders are individuals and organisations who are actively involved in the project, or whose interests may be positively or negatively affected by the project. Based on this definition, which of the following individuals or groups are project stakeholders? 1. The customer 2. The performing organisation 3. The community where the project takes place
1 and 2 only
2 and 3 only
1 and 3 only
1, 2, 3
Which of the following is correct? The swiftest and most effective communications take place among people with:
Common points of view
Dissimilar interests
The ability to reduce perception barriers
Good encoding skills
A programme can be best described as:
A grouping of related activities, which last two years or more
The first major subdivision of a project
A grouping of projects, similar in nature, which support a product, product line or strategic plan
Another name for a project
On which projects is integration most complicated?
Large, labour-intensive
Large, capital
Small, capital
Small, labour-intensive
Which of the following is (are) the wrong reason(s) for selecting someone to act as a project manager? 1. Selecting someone simply because of availability 2. Selecting someone who has a command of technology 3. Selecting someone who knows the customer personally
1 and 2
2 and 3
1 and 3
1, 2 and 3
Which of the following statements illustrates a major difference between project managers and project champions?
Project managers prefer to work individually whereas project champions prefer to work in groups
Project managers seek perfection whereas project champions seek what is possible
Project managers manage things whereas project champions manage people
Project managers will seek to meet objectives whereas project champions will seek to exceed objectives
Project managers spend a considerable amount of time communicating and interacting with project stakeholders. Which of the following is (are) useful reminders for project managers? 1. Analyse the work regularly to determine what can be eliminated 2. Keep the priorities clear 3. If possible, schedule the most interesting activities first
1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3
Setting project selection criteria and establishing project priorities is the responsibility of which people on a project?
The project manager
Line manager
Senior management and sponsors
Customers
The role of the executive sponsor is to help the project manager. This help can include which of the following? 1. Priority setting 2. Assistance in conflict resolution 3. Developing the master project plan 4. Setting proper project objectives
1 only
1 and 2
1, 2 and 3
1, 2, 3 and 4
Individuals or organisations with active involvement or active interest in a project are called:
Team members
Parent organisation
Client organisations
Stakeholders
Which of the following statements are true when managing a project? 1. All decisions must be directed towards achieving the project objectives 2. Only the remaining work can be managed 3. All decisions must have the sponsor's approval
1 only
2 only
1 and 2 only
1, 2 and 3
Who normally has the responsibility for determining "who" will do the work, "where" the work will be done, and "how" the work will be done in a project?
Project manager
Line manager
Senior levels of management
Customer interface
Perception barriers can occur because individuals:
View the same message in different ways
Have different experiences
Use words that do not have precise meanings
All of the above
Which of the following statements are true in a cost plus contract? 1. The only firm figure is the fee 2. The total man-hours cannot be estimated 3. The equipment rate is not firm
1 only
2 only
1 and 2 only
1, 2 and 3
The make or buy decision is usually made at which stage of the contracting cycle?
Requirement
Solicitation
Award
Contract management
When is a FFP contract typically sought by the customer's project manager?
When the risk and consequences associated with the contracted project are large
When the customer is proficient at dealing with the contracted project activities
When neither the contractor nor the project manager understand the scope of the task
When the project manager's company has excess production capacity
Which of the following is not a function of contract administration?
Contract change management
Specification interpretation
Determination of breach of contract
Selection of the project manager
Which of the following does not affect a contractor's ability to perform the contracted activities after the contract is signed?
A poor definition of contract deliverables
The extent of project sub-contracting
The complexity of the contracted effort
The contract type
Using the data shown below, if the cost of the work is £13,000, then what will be the final price paid by the customer? Target Cost: £12,000 Target Fee: £1,000 Sharing Ratio: 80% / 20% Price Ceiling: £14,000
£12,000
£12,800
£13,000
£13,800
Assume the same project and contract as in the previous question, I.e.: Target Cost: £12,000 Target Fee: £1,000 Sharing Ratio: 80% / 20% Price Ceiling: £14,000 What will the contractor's fee be at the point of total assumption?
£300
£500
£750
£800
In which of the following types of contract is it most important for the contractor to maintain tight control of cost, schedule and scope changes?
Unit price
Cost Plus Incentive Fee
Cost Plus Fixed Fee
Firm Fixed Price
Which of the following should be considered in the negotiation and selection of a contract type? 1. The degree of clarity with which the end product is defined 2. Price competition 3. Period of performance
1 only
2 only
1 and 2 only
1, 2 and 3
In which of the following contract types is it easiest to change the scope of the contract?
Firm Fixed Price
Fixed Price Plus Incentive Fee
Cost Plus Incentive Fee
Letter contract
The impact of a risk event is calculated by multiplying which of the following?
The likelihood of the event by the consequence of its occurrence
The likelihood of the event by the number of risk events
The number of risk events by the consequences of their occurrence
None of the above
When trying to manage and reduce the risks associated with a project, how should the risk events be grouped?
By the effect that the risk event will have on the project
By the impact of the risk event should it occur
By the source of the risk event
By the project manager's tolerance for the risk event
When changing the scope of a project to lower the associated risk, a project manager should consider the impact on which of the following?
Schedule
Cost
Quality
All of the above
In what type of projects should the principles of risk management be applied?
Only when the project is large
Only when the project is large and there is substantial uncertainty
All projects
When no project sponsor has been assigned
A project manager states "I will share this risk with others or totally shift it to them." He/she is exercising which method of risk reduction?
Transfer
Avoidance
Mitigation
Acceptance
What is the ultimate goal of applying the principles of risk management to a project?
To eliminate all project risks
To reduce project risks significantly
To reduce the cost of completing the project
To reduce the time required to complete the project
Which of the following is considered a cost of prevention? 1. Creating quality control charts 2. Rework costs 3. Collecting data for use in process improvement efforts
1 only
2 only
1 and 2
1 and 3
Using the data in the figure below, which supplier would you eliminate if you could eliminate only one vendor (assume that correcting each defect has the same cost per defect in all categories)?
|
|
Supplier |
|
||
|
Defect |
A |
B |
C |
Total |
|
Incorrect Invoice |
IIII |
I |
II |
7 |
|
Incorrect Inventory |
IIII |
II |
I |
8 |
|
Damaged Material |
III |
|
III |
6 |
|
Incorrect Test Doc |
I |
III |
II |
6 |
|
Total |
13 |
6 |
8 |
27 |
Supplier A
Supplier B
Supplier C
Cannot determine the correct answer from the available data.
Any measurable, tangible, verifiable item that must be produced to complete the project is called which of the following?
A deliverable
A task
A project phase
All of the above
Which of the following is correct?
1. A project charter is a document prepared by the project manager that provides the project manager with the authority to apply organisational resources
2. A project charter is a document prepared by the senior management/project sponsor that provides the project manager with the authority to apply organisational resources
3. A project charter is a document prepared by the customer that provides the project manager with the authority to apply organisational resources
1. A project charter is a document prepared by the project manager that provides the project manager with the authority to apply organisational resources
2. A project charter is a document prepared by the senior management/project sponsor that provides the project manager with the authority to apply organisational resources
3. A project charter is a document prepared by the customer that provides the project manager with the authority to apply organisational resources
1 only
2 only
1 and 2 only
3 only
What is the totality of all of the products and services to be provided as a project called?
The scope of the project
The deliverables of the project
The project charter
The management plan
Which of the following is correct? A deliverable-oriented grouping of project elements is a:
Detailed plan
Responsibility chart
Work breakdown structure
Cost account coding system
Which of the following is correct? The "control points" in the work breakdown structure used for assignments to resource units are referred to as:
Work packages
Subtask
Activities
Integration points
Which of the following is correct? In preparing a good project definition, experienced project managers will:
1. Concentrate mainly on the end product, rather than on costs or benefits
2. Understand that a project definition/plan is a dynamic rather than static tool, and thus subject to change
3. Try to express objectives in quantifiable terms
1. Concentrate mainly on the end product, rather than on costs or benefits
2. Understand that a project definition/plan is a dynamic rather than static tool, and thus subject to change
3. Try to express objectives in quantifiable terms
1 only
2 only
3 only
1, 2 and 3
A project manager believes that modifying the scope of the project may provide added value for the customer. What should the project manager do?
Change the scope baseline
Prepare a variance report
Call a meeting of the change control board
Change the projects objectives
Which of the following statements are true.
1. Project meetings can be used to facilitate teambuilding.
2. Project meetings should last about one hour.
1. Project meetings can be used to facilitate teambuilding.
2. Project meetings should last about one hour.
1 only
2 only
1 and 2 only
Neither 1 or 2
Which of the following statements are true.
1. Consensus is not required for all decisions relating to the project.
2. A good rule of thumb is to keep the client well away from team Meetings.
1. Consensus is not required for all decisions relating to the project.
2. A good rule of thumb is to keep the client well away from team Meetings.
1 only
2 only
1 and 2
Neither 1 or 2
You have received tenders from eight contractors for the design and construction of a laboratory for testing new products. Three of the tenders seem to meet all the specifications required and provide the necessary flexibility during implementation. The prices of the three short-listed tenders are: £6.8m, £5.4m, and £3.2m. Which of the following is correct?
All three tenders meet the requirements, therefore, award the contract to the lowest bidder as this would minimise the cost of the project to the firm and to the shareholders .
The pricing of the third tender is unrealistically low compared to the others and may be based on a misunderstanding or misrepresentation of the costs involved.
The second tender should be selected as it represents a good compromise, avoiding the risks of the lowest bid and making savings against the highest priced bid.
None of the tenders can be trusted, it would be better to conduct a feasibility study and then go out to tender a second time.
The key terminology for project scheduling includes which of the following?
Activities, milestones, manpower, skill levels, and float
Activities, documentation, manpower, and skill levels
Float, activities, milestones, and time estimates
Time estimates, float, sponsorship involvement, and activities
Guidelines for estimating time durations include which of the following?
1. Assuming a normal level of manpower and other resources
2. Using consistent time units
3. Using historical records as guides to durations
1. Assuming a normal level of manpower and other resources
2. Using consistent time units
3. Using historical records as guides to durations
1 only
2 only
1, 2 and 3
None of the above
A line manager provides you with three estimates for his activity in your network diagram. His estimates are 2 weeks optimistically, 4 weeks most likely, and 12 weeks pessimistically. What is the expected time which should appear on the chart?
4 weeks
5 weeks
6 weeks
None of the above
Which method(s) shown below could be acceptable for shortening the schedule?
1. Crashing
2. Changing the scope
3. Performing activities in parallel rather than in series
1. Crashing
2. Changing the scope
3. Performing activities in parallel rather than in series
1 only
2 only
1 and 3 only
1, 2 and 3
Increasing resources on the critical path activities may not always shorten the length of the project because:
1. Certain activities are time-dependent rather than resource dependent (e.g. You can't use three ovens rather than one to bake a cake);
2. The skill level of the added resources might not be appropriate for the activities to be performed;
3. Adding more resources may create additional work and produce inefficiencies (e.g. Additional people may need training and supervision).
1. Certain activities are time-dependent rather than resource dependent (e.g. You can't use three ovens rather than one to bake a cake);
2. The skill level of the added resources might not be appropriate for the activities to be performed;
3. Adding more resources may create additional work and produce inefficiencies (e.g. Additional people may need training and supervision).
1 only
2 only
1 and 3 only
1, 2 and 3
Activities J, K, and L are each the immediate predecessors for activity N. If the earliest finish times for J, K, and L are 5, 7, and 9, weeks respectively, what is the earliest start time for activity N?
5 weeks
7 weeks
9 weeks
21 weeks
The critical path in a project is determined by which of the following?
A forward pass
A forward pass and then a backward pass
Backward pass
Trial and error solutions
Which of the following sources provide data on duration and estimating?
1. Project team knowledge
2. Project files (existing or historical)
3. Published data on standard practice techniques
1. Project team knowledge
2. Project files (existing or historical)
3. Published data on standard practice techniques
1 only
2 only
1 and 3 only
1, 2 and 3
Which of the following is correct? Project budgets are used to:
1. Control costs and cash flow
2. Prepare budget baselines
3. Control project progress
1. Control costs and cash flow
2. Prepare budget baselines
3. Control project progress
1 only
2 only
1 and 2
1, 2 and 3
Project budgeting includes which of the following major processes?
Resource planning, cost estimating, cost budgeting, cost control
Scope definition, cost estimating, cost budgeting, cost control
Scope definition, cost estimating, cost budgeting, change control
Resource planning, environmental analysis, cost budgets, cost control
Which of the following is correct? Schedule and budget baselines are:
Fixed and therefore can never change
Never fixed, except on small value projects
Fixed towards the end of a project when risk levels have reduced
Fixed, but subject to intermittent change
Baseline cost projections can be aggregated to high levels of the WBS for reporting purposes, and used to generate which of the following?
Milestones
Activity time-cost curves
S-curves
Parametric estimates
Which of the following is correct? The three approaches to project budgeting are:
Parametric, bottom-up, serial
Bottom-up, top-down, serial
Bottom-up, top-down, parametric
Top-down, bottom-up, iterative
What is a cost breakdown structure?
An alternative form of WBS used to control projects with cost as the main priority
A method of cost budgeting using an integrated WBS and OBS
A method of cost budgeting that replaces the need for a WBS and OBS (except for very large projects)
A structured list showing the cost of every item used in the project
Which of the following would increase the accuracy of estimating the project cost?
1. Pricing out the work at lower levels in the WBS
2. Using historical data
3. Talking to people who have worked on similar projects
1. Pricing out the work at lower levels in the WBS
2. Using historical data
3. Talking to people who have worked on similar projects
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