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PRACTICE
QUESTIONS


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SCOPE MANAGEMENT

1. Decomposing the major deliverables into smaller, more manageable
components to provide better control is called:
a.
b.
c.
d.

Scope planning.
Scope definition.
Scope base lining.
Scope verification.

2. Any numbering system that is used to monitor project costs by category
such as labor, supplies, or materials, for example, is called:
a.
b.
c.
d.

Chart of accounts.
Work breakdown structure.
Universal accounting standard.

Standard accounting practices.

3. A person who is involved in or may be affected by the activities or
anyone who has something to gain or lose by the activity of the project
is called a:
a.
b.
c.
d.

Team member.
Customer.
Stakeholder.
Supporter.

The following should be used for questions 4 through 6.
A project manager is assigned to a project early in the project life cycle. One
of the things that must be done is to do a justification for the project. Since
very little information is known about the project, the estimates are considered to be rough estimates. The following table is the project manager’s
estimate of the cash flows that will take place over the next five years.
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End of Year

Cash Flow In

Cash Flow Out

1
2
3
4
5

0
300,000
400,000
100,000
50,000

500,000
90,000
100,000
175,000
35,000

4. What is the payback period for this project?
a.
b.
c.
d.

One year
Two years
Three years

Four years

5. What is the net cash flow at the end of five years?
a.
b.
c.
d.

50,000
‫מ‬50,000
850,000
100,000

6. If the net present value for each of the cash flows were calculated at a
10% interest rate, the net present value cash flow at the end of five years
would be:
a. Greater than the total cash flow without the net present value applied.
b. Less than the total cash flow without the net present value applied.
c. The same as the total cash flow without the net present value applied.
d. Cannot be calculated with the information supplied.
7. A group of related projects that are managed in a coordinated way that
usually include an element of ongoing activity is called a:
a.
b.
c.
d.

Major project.
Project office.
Program.

Group of projects.


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237

8. During the full life cycle of the project, a plot of the project’s expected
expenditures will usually follow a characteristic ‘‘S’’ shape. This indicates that:
a.
b.
c.
d.

There is a cyclic nature to all projects.
Problems will always occur in the execution phase.
There are high expenditures during closeout.
The bulk of the project budget will be spent in the execution phase.

9. A temporary endeavor undertaken to create a new product or service is
called a:
a.
b.
c.
d.

New product development.
Project.
Program.
Enterprise.

10. A project manager makes a narrative description of the work that must
be done for her project. This is called a:
a.
b.
c.
d.

Project plan.
Control chart.
Statement of work.
Project objective.

11. An example of scope verification is:
a.
b.
c.
d.

Reviewing the performance of an installed software module.
Managing changes to the project schedule.
Decomposing the WBS to a work package level.
Performing a benefit-cost analysis to determine if we should proceed.

12. The process of establishing clear and achievable objectives, measuring
their achievement, and adjusting performance in accordance with the
results of the measurement is called:
a.
b.
c.

d.

Strategic planning.
Contingency planning.
Detailed planning.
Management by objectives.


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13. Configuration management is:
a. Used to ensure that the description of the project product is correct
and complete.
b. The creation of the work breakdown structure.
c. The set of procedures developed to ensure that project design criteria
are met.
d. A mechanism to track budget and schedule variances.
14. A project manager is employed by a construction company and is responsible for the furnishing of the completed building. One of the first
things that the project manager for this project should do is to write a:
a.
b.
c.
d.

Work breakdown structure.
Budget baseline.
Project charter.
Project plan.

15. A project manager is creating a work breakdown structure for her project. In the breakdown structure the lowest level of the breakdown for
the project manager is called the:
a.
b.
c.
d.

Activity.
Task.
Work package.
Cost account.

16. A project manager is reviewing the scope of the project and the scope
baseline of the project. This includes which of the following?
a.
b.
c.
d.

The original project schedule, budget, and scope
The original project description and the project charter
The original scope of the project plus or minus any scope changes
The current budget of the project

17. A project manager has just become the manager of a project. The document that recognizes the existence of the project is called:
a.
b.
c.
d.

The statement of work.
The project assignment.
The project charter.
The product description.


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18. A project manager is reviewing the work breakdown structure for her
project. The WBS for the project represents:
a.
b.
c.
d.

All the tangible items that must be delivered to the client.
All the work that must be completed for the project.
The work that must be performed by the project team.
All the activities of the project.

19. A manager that manages a group of related projects is called a:
a.
b.
c.
d.

Project manager.

Project expediter.
Program coordinator.
Program manager.

20. A new project has begun. The project charter has been written and the
project manager has been assigned. The project manager is preparing
the work breakdown structure for the project. The WBS is typically
used for:
a.
b.
c.
d.

Explaining the scope of the project relevant to the client.
The basis for organizing and defining the total scope of the project.
Showing the resource conflicts that exist in the project.
The logical relationship between tasks in the project.

21. During the life of a project, the project will go through several phases—
initiating, planning, execution, and closeout. Which phase of the project is likely to have the greatest amount of its funding spent?
a.
b.
c.
d.

Initiating
Executing
Planning
Closeout

22. During the course of the project it is important that the stakeholders be
informed of the progress of the project. One of the reports that is frequently used is a progress report. Which of the following is true about
progress reports?
a. They allow stakeholders to judge the performance of the project
according to its plan.


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b. They are generally considered to be overkill on very small projects.
c. They require the use of earned value reports.
d. They must be produced by the project manager.
23. The coordinated undertaking of interrelated activities directed toward a
specific goal that has a finite period of performance is a:
a.
b.
c.
d.

Project charter.
Project.
Set of project objectives.
Program.

24. The document that is proof of upper management’s commitment to
the project and gives the authority to manage the project to the project
manager is called:
a.

b.
c.
d.

The project plan.
The project goals and objectives.
The project charter.
The project definition.

25. A project manager works in a company favoring the weakest authority
for the project manager. The type of organization that holds the project
manager to be the weakest is:
a.
b.
c.
d.

Projectized organization.
Strong matrix organization.
Weak matrix organization.
Balanced matrix.

26. A project manager has been asked by the client to meet the promise
date of the project. The project manager analyzes the schedule before
promising a date to the customer. The project manager uses the program evaluation and review technique to evaluate the project schedule.
She decides that based on the results of the PERT calculations she can
promise a delivery date of June 30. The expected value of the project
completion date is May 30. If the project manager is willing to accept a
5% probability that the project will be delivered later than June 30,
what is the standard deviation of the durations of the activities on the

critical path? Assume a five day work week.


Scope Management

a.
b.
c.
d.

241

Ten days
Fifteen days
One-half month
One month

27. A project is proposed to a customer. Price and schedule for delivery are
agreed upon. The work breakdown structure is agreed to as well. The
customer requests that one of the milestones of the project be completed
by a certain date. The project schedule is reviewed, and it is found that
the expected completion date for this milestone is considerably earlier
than the date requested by the customer. The date for this milestone is
which of the following?
a.
b.
c.
d.

Consideration

Summary activity
Constraint
Suggestion

28. A project manager is managing a project. The original scope baseline of
the project was budgeted at $100,000. Since work on the project started
there have been seventeen authorized and approved changes to the project. The changes have a value of $17,000 and the cost of investigating
them prior to their approval was $2,500. What is the current budget
for the project?
a.
b.
c.
d.

$100,000
$114,500
$117,000
$119,500

29. In a very large project having a budget of $5 million and a project team
of over one hundred persons, the project manager constructs a work
breakdown structure. The project manager will do the WBS to the
detail level of which of the following?
a.
b.
c.
d.

Task
Activity

WBS element
Work package


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30. A project manager is managing a project that has reached the end of the
planning phase. The work scope has been agreed to and definitive cost
estimates have been completed for the project. The total estimated cost
of the project is $100,000. It is reasonable to expect that the project
will not cost over which of the following values?
a.
b.
c.
d.

$100,000
$110,000
$125,000
$175,000

31. The change management plan should be included in which of the following?
a.
b.
c.
d.

Scope management plan

Communications management plan
Configuration management plan
Quality management plan

32. A project team has made up the work breakdown structure for a project.
Senior management for the company and all of the stakeholders including the client have approved the WBS. The client later requests that a
change be made in the project, which will cost a considerable amount
of money. The client says that the company’s salesman promised this
feature prior to sign off on the WBS. Who should pay for the change?
a.
b.
c.
d.

The client should pay.
The company managing the project should pay.
Both the company and the client should pay part of the cost.
The change should not be implemented.

33. A project manager is managing a software development project for a
hospital. There is a new computer available that will speed up the development process considerably. The new computer costs $50,000 including shipping, installation, and startup. The computer will cause a gross
savings of $100,000. What is the net present value of the savings if they
occur one year after the expenditure for the computer? Assume a 10%
interest rate.
a. $90,000
b. $40,909


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c. $45,555
d. $91,110
34. A project manager is managing a project during the planning phase.
She chooses to use a precedence network diagram as a graphic planning
tool to assist in making the project schedule. The most important reason
for using the network diagram as a graphic planning tool is that it makes
it easier to see which aspect of the project plan better than the other
tools available?
a.
b.
c.
d.

The probability that the tasks will be completed on time
The logical relationships between activities in the schedule
The start and finish dates of the activities
The float between activities


TIME MANAGEMENT

The following information and questions 1 through 10 refer to figure 1.
A schedule was developed for a project to install windows in an apartment
building. The project is a rush job, and the contractor has agreed to schedule
the work on a single shift basis but will work seven days per week until the
job is done. The project is to begin on May 1.
Figure 1. Scheduling Practice Exercise.

B

D

3

2

FS-2

F
4

A

E

H

1

7

5

C

G

3

4

Act #
DURATION

1. What day in May will activity D have for its early finish date?
a.
b.
c.
d.

May 13
May 6
May 7
May 5
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Time Management

2. What is the free float for activity F?
a.
b.
c.
d.

6
7
0

8

3. What is the free float for activity D?
a.
b.
c.
d.

6
7
8
0

4. What is the critical path of the project?
a.
b.
c.
d.

ABEGH
ABDFH
ACGH
ABEDFH

5. What is the late start for activity F?
a.
b.
c.
d.

May 10
May 11
May 12
May 14

6. How long is the project in days?
a.
b.
c.
d.

Nineteen
Twenty
Twenty-one
Eighteen

7. What is the early start for activity F?
a.
b.
c.
d.

May 7
May 6
May 5
May 4

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8. If there is a delay in activity F of six days, what is the effect on the
project completion date?
a.
b.
c.
d.

Increases one day
No change to project completion date
Increases two days
Increases three days

9. What is the early finish date of activity A?
a.
b.
c.
d.

May 1
May 2
May 3
May 4

10. The above diagram is called:
a.
b.

c.
d.

Activity on arrow network diagram.
Network diagram.
Precedence diagram.
Gantt chart.

11. If a project manager were to make Thanksgiving dinner, two of the
activities that might be of concern would be roasting the turkey and
baking the sweet potatoes. In order to ensure that these two items will
be finished cooking and will come out of the oven at the same time,
what type of relationship should he or she use in the schedule between
these two activities?
a.
b.
c.
d.

Finish-finish
Start-start
Finish-start
Start-finish

Questions 12 through 15 refer to the diagram in figure 2 and the table that
follows.
In a project to install concrete sewer lines there is a lot of uncertainty as to
how long the durations should be for the tasks involved. The project manager has determined that the team will use the PERT technique to evaluate
the project’s completion date. The diagram shows nine activities and the

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247

table shows the optimistic, pessimistic, and most likely estimates that the
team has already made.
Figure 2. PERT Diagram.

B

D

F

G

A

I

C

H

E

Act #

Activity

Optimistic

Pessimistic

Most
Likely

A
B
C
D
E
F
G
H
I

1
2
10
5
3
1
5
9
5

1
3

13
5
6
1
8
13
5

1
3
12
5
4
1
6
10
5

12. What is the expected value of the number of days to complete the
project?
a. 47.3
b. 22.0


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c. 32.3
d. 48

13. It is desirable to make an estimate that has a greater than 95% chance
of being correct. Which of the following ranges of time for the completion of the project best describes this probability of being correct?
a.
b.
c.
d.

33.31 to 31.36
34.28 to 30.39
14.39 to 33.48
35.25 to 29.42

14. What is the expected value of the duration for activity B?
a.
b.
c.
d.

5.6
2.8
3.0
2.6

15. What is the standard deviation for the duration of activity B?
a.
b.
c.
d.

1.000

.133
.166
1.413

16. The project manager decided to improve the predicted completion date
for the project by doing in parallel several of the activities that were
scheduled to be done in sequence. This is called:
a.
b.
c.
d.

Crashing.
Increasing priorities.
Hurry up defense.
Fast tracking.

17. Crashing the schedule means:
a.
b.
c.
d.

Making the project shorter by any economic means.
Running the project team on overtime.
Doing activities that were in sequence in parallel.
Getting out of town before the project is in trouble.


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18. The original schedule (for a project, a work package, or an activity),
plus or minus approved changes, is called:
a.
b.
c.
d.

The working schedule.
The target schedule.
The performance schedule.
The baseline schedule.

19. Schedules are used in many ways. In a project to build a bridge the
project manager wants to use a tool that will show the scheduled activities in such a way that it is easy to see when each activity starts and
finishes and which activities are taking place at the same time. Which
tool should be used?
a.
b.
c.
d.

PERT chart
Gantt chart
Precedence diagram
GERT chart

20. Which of the following is true?

a. The critical path is the path through the network that has the highest total duration.
b. The critical path is the path with the least amount of free float.
c. The critical path is the list of activities that have zero float.
d. The critical path is the list of activities that have critical risks associated with them.
21. Resource leveling will generally:
a.
b.
c.
d.

Reduce the time needed to do the project.
Increase the total time necessary to do all the tasks.
Reduce the overutilization of resources.
Reduce resources to the lowest skill that is possible.

22. A task was scheduled to use two persons, full time, and take two weeks
to complete. Instead, the project manager was only able to assign one
person to this task. At the end of two weeks, the person assigned to the
task was 75% complete. What is the cost performance index?
a. .75
b. 1.5


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c. 1.33
d. .5
23. Five tasks are scheduled to be completed in sequence. Each task has a

finish-start relationship with the next task. Each has one day of total
float. As of today, task one and two have been completed on schedule.
How many days of float remain in the schedule for these tasks?
a.
b.
c.
d.

Two
One
Zero
Four

24. Which of the following is considered to be a simulation technique?
a.
b.
c.
d.

PERT analysis
GERT analysis
Monte Carlo analysis
Critical path method

25. The main difference between the two types (ADM, arrow diagramming
method, and PDM, precedence diagramming method) of the critical
path method (CPM) of scheduling is:
a. Placement of the activity on the logic diagram line.
b. Arrow diagramming method (ADM) is a deterministic method,
whereas the precedence diagramming method (PDM) is a probabilistic method.

c. Precedence diagramming method (PDM) is a deterministic method,
whereas the arrow diagramming method (ADM) is a probabilistic
method.
d. Precedence diagramming method (PDM) is a more accurate
method.
26. The project schedule is not used to determine:
a.
b.
c.
d.

The start and finish dates of the activities.
Occasional changes to the activity listing.
The total float of the activities.
The project’s budget.


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251

27. The overall duration of the project schedule is not influenced by:
a. Using mandatory dependencies as constraints.
b. Using discretionary dependencies as constraints.
c. The availability of the resources that are assigned to perform the
work.
d. Using the arrow diagramming method instead of the precedence
diagramming method (PDM) of scheduling.
28. The program evaluation and review technique (PERT) method of
scheduling differs from the critical path method (CPM) because the

PERT method:
a. Uses weighted averages of activity durations to calculate project duration.
b. Uses ‘‘dummy’’ activities to represent logic ties.
c. Uses ‘‘free float’’ instead of ‘‘total float’’ in the schedule calculations.
d. Uses bar charts instead of logic diagrams to portray the schedule.
29. A project manager is managing a project and is considering the reschedule of an activity because one of the project engineers must work on
this activity and another activity at the same time. Each of the activities
is scheduled to have a duration of two weeks. One of the activities is on
the critical path and the other activity has eighteen days of free float.
The project manager should:
a.
b.
c.
d.

Reschedule the activity that has no float.
Reschedule the activity with float.
Ask the engineer to work overtime.
Reschedule both activities to take advantage of the float on each.

30. A project manager looks at her schedule and sees that there has been a
delay in completing a task. It seems practical to move a person from
another task that is an expert on the work that is behind. There is a
choice of using two different persons that are working on two different
tasks. One person is working on a task that has five days of free float
and the other is working on a task that has eight days of total float and
no free float. Which person should be used to help out?
a. The person working on the task with free float of five days.
b. The person working on the task with total float of eight days.

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c. Either person can be used.
d. A person should be brought in from outside the project.
31. In the first attempt in resource leveling the project schedule, what would
you expect to occur?
a. The number of required resources will increase during certain time
periods of the project.
b. The number of required resources will decrease during certain time
periods of the project.
c. The overall project duration will increase.
d. The overall project duration will decrease.
32. According to the Guide to the PMBOK, work packages can be divided
into:
a.
b.
c.
d.

Smaller work packages.
Tasks.
Activities.
Subprojects.

33. A project is nearly 33% complete according to the earned value reporting method. An identified risk has occurred, and the project manager
has chosen to draw funds from the contingency fund and add the activities necessary to deal with the problems associated with the risk. What
should he do next?

a. The schedule should not be changed. Original plans should have
allowed for this delay.
b. The budget money set aside for the risk should be released, but there
is not a need for a schedule change.
c. The schedule and budget baselines should be changed, to show the
new work.
d. The budget baseline should be changed, but the work should be
done within the schedule as it is.
34. The key inputs to activity definition are:
a. Work breakdown structure, the project schedule, and the network
diagram.
b. Project schedule, progress reports, and change requests.


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c. The project network diagram, constraints, and durations.
d. The work breakdown structure, the scope statement, and historical
information that supports the applicable activity.
35. A project manager is approached by the major stakeholder in the project
and is asked to reduce the time for the scheduled completion of the
project. The project manager reviews the project plans and the progress
that has been made on the project. He or she decides that the best
approach to solving this problem is to fast track the project until the
new project completion date can be achieved. Which of the following
will be done by the project manager?
a. Reduce the project schedule by any means that are possible
b. Reduce the project schedule by applying any practical means necessary

c. Reschedule activities that would be done in sequence to activities
that can be done in parallel
d. Inform the stakeholder that this will change the project schedule
and will require additional funds to comply with the request
36. A project manager would like to manage his project in such a way that
he will be able to identify specific tasks that should be watched and
managed more closely than others. The project manager should use
which method?
a.
b.
c.
d.

The PERT method
The critical path method
The GERT method
The PCDM method

37. A project manager would like to manage his project in such a way that
he will be able to predict more accurately the duration of the project
even though the estimates for the duration of the activities have a lot
of variability. The project manager should use which method to more
accurately predict the project completion date?
a.
b.
c.
d.

CPM
GERT

PERT
Activity sampling


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38. The project manager for a project is going to use the PERT method of
scheduling for the project that she is working on. Using the PERT
calculation the variance for the project is found to be 25 days and the
duration of the project is found to be 169 days. What is the range of
values for the project duration such that there will be at least a 95%
probability that the actual project completion will fall between the high
and low value of the range of values?
a.
b.
c.
d.

164–173 days
144–194 days
119–219 days
159–179 days

39. In distinguishing PERT from CPM one could say that:
a. PERT is probabilistic and CPM is deterministic.
b. CPM is probabilistic and PERT is deterministic.
c. Either one is deterministic or probabilistic depending on how they
are used.

d. Neither one is deterministic or probabilistic.
40. According to the Guide to the PMBOK the lowest level of the work
breakdown structure is:
a.
b.
c.
d.

The task.
The activity.
The work package.
The element.


COST MANAGEMENT

1. A project manager wants to make a trip to California by car. The project
manager knows how many miles it will be to drive to California, the
current price of gasoline, and how many miles the car will go on a
gallon of gasoline. From this information he or she can calculate the
estimated cost of the gasoline for the trip. This is a form of what kind
of estimating technique?
a.
b.
c.
d.

Definitive
Analogous
Parametric

Quantitative

2. A project manager wants to make a trip to California by car. The project
manager knows someone who has made this trip before. This person
has a similar car to the one that the project manager has, and the person
has kept good records on the money spent for fuel on the trip. The
distance that the project manager will travel is 10% further than the
other person’s trip. By multiplying the cost of fuel reported by the other
person by 1.1, the project manager is performing what kind of estimate?
a.
b.
c.
d.

Definitive
Analogous
Parametric
Quantitative

3. To distinguish top down estimates form bottom up estimates, it would
be correct to say that the bottom up estimate would be:
a.
b.
c.
d.

Less accurate.
Both have about the same accuracy.
More accurate.
No different to perform that the top down estimate.

4. A project manager and the project team identify several specific risks in
a project. The expected value of these risks is estimated at $10,000. The
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impact on the project brought about by these risks is estimated at
$40,000. What value should be entered into the management reserve
for these risks?
a.
b.
c.
d.

$10,000
$40,000
$0
$25,000

5. A project manager and the project team identify several specific risks in
a project. The expected value of these risks is estimated at $10,000. The
impact on the project brought about by these risks is estimated at
$40,000. What value should be entered into the contingency reserve for
these risks?
a.
b.

c.
d.

$10,000
$40,000
$0
$25,000

6. What characteristic best describes the cost baseline?
a.
b.
c.
d.

Total budget for the project
Time phased budget for the project
Total budget for the project including the contingency budget
Total budget for the project including the contingency budget and
the management reserve

7. A project is formed to produce a product that will be used for transporting people. Costs that are associated with the project that occur after
the delivery of the product to the customer are considered to be what
kind of cost?
a.
b.
c.
d.

Prorated costs
Expenses

Life cycle cost
Expected value

8. A project team receives an approved change request from the customer.
The team has previously estimated that the cost to implement this
change is $10,000. The customer has agreed to pay this amount for the


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additional work. The customer realizes that there is a 50 percent chance
that this change will not work and will later be removed. What change,
if any, should be made in the budget?
a.
b.
c.
d.

The project budget should not be increased.
The project budget should be increased by $15,000.
The project budget should be increased by $10,000.
The project budget should be increased by $5,000.

9. The act of doing anything that will help to bring future project performance into line with the project plan is called:
a.
b.
c.
d.

Budget update.
Revised cost estimate.
Corrective action.
Contingency planning.

10. Which of the following choices would be an acceptable cause for ‘‘rebaselining’’ a $10 million project?
a. The monthly consumer price index on some of the commodities
used on the project have been identified as having gone up by 1.6%,
an increase of 46% over the 1.1% which had been budgeted.
b. The client has authorized a $10,000 addition to the scope of the
project.
c. The contractor’s company has instituted a quality program on which
they have pledged to spend $1 million during the next year.
d. The productivity in the drafting department has shown to be lower
than anticipated, which has resulted in 1,000 additional hours, a
78% increase over what was budgeted.
11. In terms of earned value reporting, a project is considered complete
when the:
a.
b.
c.
d.

BAC is equal to the PV.
The EV is equal to the AC.
The PV is equal to the AC.
The BAC is equal to the EV.

12. The time phased cost of the project that reflects the expenditures rather

than the consumption of a resource that will be used to measure and
monitor cost performance on a project is the: