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- Question
Sometimes project managers forget all of the expenses that they can incur on a project, such as capital resources and assets. This can have an impact upon their budgets and the economic return on the project. A cost that has been incurred and cannot be reversed is known as a
Options- A. Fixed Cost
- B. Direct Cost
- C. Variable Cost
- D. Sunk Cost
- Correct Answer
- Sunk Cost
ExplanationAnswer D is correct because a sunk cost is a project expense that will eventualy need to be paid. Answer A is incorrect because a fixed cost remains constant, regardless of any change in a company's activity. Answer B is incorrect because direct cost can be directly linked to producing specific goods or services. Answer C is incorrect because a variable cost changes in proportion to a change in the company's activity or business.
- 1. The payback period can become an important issue when a large scope project is developed over several years. Maureen has been assigned the responsibility of calculating the payback period for her project that is to be completede in 3 years. The internal rate of return(IRR) is 7% and the annual savings will be $800,000 per year. The total cost is $4,000,000 and the rate of return during this time period is 3%. What is the payback period of Maureen's project?
Options- A. 3 years
- B. 4 years
- C. 5 years
- D. 13.3 years Discuss
- 2. One of the goals of management by objectives (MBO) is to ensure that objectives of one level within an organization are supportive of and aligned with the objectives of another level of the organization. This methodology has been popular within some organizations as they define their culture. Which of the following is not true about MBO?
Options- A. It has a top-down orientation
- B. Corrective actions are not part of the process
- C. You need to establish clear and achievable objectives
- D. MBO is a natural fit for Project Management Discuss
- 3. You have started your own company based upon PMI methodologies and have been contracted by the government to develope a new interface for one of its computer applications. You develope a solution and win the bid for the contract but encounter problems at the end of the project when the customer says that you did not fullfill their needs. You are throughly shocked. What is your conclusion of the situation?
Options- A. There are always more customers available
- B. If the customer is not satisfied, the project is not successful
- C. Change control management was not effective
- D. The customer did not communicate very well Discuss
- 4. The software development life cycle begins with a proof of concept and progress into the build, test, and acceptance phases as the project develops. Some times, differences between stakeholders can develop into conflict, which impacts the customer. As a trained, professional project manager, how do you handle this situation and resolve the customer's concerns?
Options- A. Let the customer vent and take notes
- B. Schedule a meeting
- C. Develope a change request for the customer
- D. Resolve the matter in favour of the customer Discuss
- 5. The project life cycle can be broken into five phases that tend to overlap with each other frm one phase to another;however ,the control phase does not overlap with a specific phase. why?
Options- A. Change control management is seperate from the other phases
- B. Change control management has a plan that can be usede throughout the initiation, planning, execution, and closeout of the project
- C. Because the project sponsor is responsible for change control management , the project manager is not involved with that phase of the project
- D. Change control extends throughout the entire project from initiation to closeout Discuss
- 6. A project charter is one of the key deliverables to come from the initiation process. The project charter should by issued by
Options- A. one or more functional managers
- B. The head of the performing organization
- C. A manager external to the project
- D. The CFO Discuss
- 7. You are a project manager for the redevelopment of the Hoover Dam. Your team has been provided with the scope statement, but it lacks many description details. Your team is concerned because the project is in the initiation phase and it wants to postpone it until it has more information. As the project manager, you recommend that
Options- A. The team should go forward, but be caution about the lack of details and the impact upon the timeline for the project
- B. The project should not go forward until the stakeholders agree about the scope and purpose of the project
- C. The team should verify the scope and realize that more details will be available as more project characteristics are progressively elaborated.
- D. The team should review the project selection criteria for the Hoover Dam project Discuss
- 8. A Good CFO will tell you that it is important to look at your bottom line and determine how to increase profits for the organization. Veronica, the new CFO at a local university, is taking that approach and applying it to new projects. Therefore,she wants to include costs from each phase of the project on a total expenditure is known as
Options- A. An opportunity cost
- B. A sunk cost
- C. NPV
- D. A life cycle Discuss
- 9. You are working on a new project to develop a new wireless product with ease - of - use features recommended by customers. It is as yet undetermined which features and the extent to which each feature will be incorporated into the product.You have a focus group that will continue to evaluate the features as the project goes forward.The focus group is authorized to suggest changes, as are your engineers and the quality department.As a project manager, what will help you most to minimize the effect of these changes?
Options- A. A change management plan
- B. A scope management plan
- C. Do not continue with the project until all of the features are clearly defined in the scope statement and scope definition.
- D. This is an expected part of every project. A good project manager will have a communications plan in place to be sure everyone knows what is happening on the project. Discuss
- 10. On a systems development project, Richard needs two programmers. He knows John and Smith were able to create a program in 40 days similar to the one he wants to create on his project. He decides to use 40 days as his estimate. This is an example of what type of estimating?
Options- A. Parametric modeling
- B. Analogous
- C. Rule of thumb
- D. Fixed Rate Discuss
PMP Certification problems
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Correct Answer: 5 years
Explanation:
The payback period is how long it takes to recoup your investment. In this example, the cost was $4,000,000 and the savings was $800,000 per year. $4,000,000/$800,000 = 5. Therefore, Answer A, B and D are incorrect.
Correct Answer: Corrective actions are not part of the process
Explanation:
Corrective actions are part of the process after establishing objectives and checking on the objectives. The next step is to take corrective actions. Answers A, C, D are true statements and therfore are incorrect for this question.
Correct Answer: If the customer is not satisfied, the project is not successful
Explanation:
Answer A is incorrect because without satisfied customers, we do not have potential for new projects. Answer C is incorrect because the change control management process would have likely resolved this problem. Answer D is incorrect because it is the project manager's responsibility to seek communication with the customer to set realistic expectations.
Correct Answer: Resolve the matter in favour of the customer
Correct Answer: Change control extends throughout the entire project from initiation to closeout
Explanation:
Change control management is utilized from the begining to the end of the project in order to keep it focused with an emphasis on the time and budget. Answer A is incorrect because change control management is not seperate from the other phases. Answer B is incorrect because the control plan must be throughout the other phases of a project. Its usage is not optional, and consistent utilization is imperative to managing scope creep and other scope expansions. Answer C is incorrect because the project sponsors is generally not responsible for the change control documentation, although it should be involved in the buy-in and approval process.
Correct Answer: A manager external to the project
Explanation:
The other answers could be accurate in specific situations, but their role alone does not meet the keyb criterion of being "external" to the project team. Answers A, B, and D are incorrect because these individuals are not external to the project.
Correct Answer: The team should verify the scope and realize that more details will be available as more project characteristics are progressively elaborated.
Explanation:
The project details and description will usually have less detail at the beginning of the project and will increase as the characteristics are progressively elaborated. Answer A is incorrect because the team should confirm that they understand the esence of the scope of the project, even if the details might be ambiguous at the beginning of the project. Answer B is incorrect because the project should go forward; however, the team should request further clarification of what the project scope entails. Answer D is incorrect because the project selection criteria should be established before the project begins.
Correct Answer: A life cycle
Explanation:
Life Cycle costing includes the costs from each phase of the project life cycle when the total investment costs are calculated. Answer A is incorrect because an opportunity cost is the difference between a chosen investment and the one that is passed up. Answer B is incorrect because sunk costs are costs that have been incurred and cannot be reversed. Answer C is incorrect because net present value (NPV) is the present value of cash inflows(benifits) minus the present value of cash outflows (costs).
Correct Answer: A scope management plan
Explanation:
Answer A is tempting because the problem focuses on changes. However, because we are talking about the elaboration of the product's characteristics, we are talking about scope changes, and therefore Answer B is the best answer. Answer C is also tempting because it is difficult to more forward on a project until the scope is clearly defined (especially in systems development projects), but with products and certain types of web development, scope changes can be frequent, and a formal scope management plan is needed. Answer D is true from a project perspective, but does not addres the scope issues.
Correct Answer: Analogous
Explanation:
Richard is using an estimate based on a project very similar to to his own with staff he will be using. Answer A is incorrect because perametric modeling involves using a mathematical model to predict costs, such as dollars per line of code. Answer C is incorrect, although close; if the development project is a common item, such as putting down new flooring, a rule -of-thumb measurement can be used, although it is less accurate. Answer D is incorrect because it is not a form of estimating, but a type of pricing.
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