PM Test Center

You are the project manager for a utility company. While determining the type of contract with one of your suppliers, you realize that the scope has not been defined yet. Which of the following contract types is your best choice?

A. Firm Fixed Price (FFP)
B. Time and Material (T&M)
C. Cost Plus Fixed Fee (CPFF)
D. Cost Plus Award Fee (CPAF)

Answer: B. Time and Material (T&M)
This type of contract is used when the scope is not well defined. If a fixed price contract were used, change orders would ensue, which would typically lead to a cost overrun. This pay-as-you-go method allows the buyer and seller to work together to progressively elaborate on the project scope.

__________ is an activity sequencing technique that uses nodes to represent activities.

A. Project management software
B. Activity-on-Arrow (AOA)
C. Precedence Diagramming Method (PDM)
D. Critical chain method

Answer: C. Precedence Diagramming Method (PDM)
In a PDM, also known as AON, activities are nodes and arrows are used to show relationships.

You are the project manager for a utility company. While determining the type of contract with one of your suppliers, you want to pay a simple fee but recognize that the project will take nearly a decade to complete. Which of the following contract types is your best choice?

A. Cost Plus Fixed Fee (CPFF)
B. Time and Material (T&M)
C. Firm Fixed Price (FFP)
D. Fixed Price with Economic Price Adjustment (FP-EPA)

Answer: D. Fixed Price with Economic Price Adjustment (FP-EPA)
This type of contract is used when a project is estimated to take many years to complete. It is basically a fixed price contract with pre-defined adjustments due to financial conditions. It is used on long-term relationships and provides good protection for both parties.

You are the project manager for a utility company. While determining the type of contract with one of your suppliers, you determine that you want to reimburse costs and pay a fee based on achieving performance objectives. Which of the following contract types is your best choice?

A. Cost Plus Fixed Fee (CPFF)
B. Cost Plus Incentive Fee (CPIF)
C. Firm Fixed Price (FFP)
D. Fixed Price Incentive Fee (FPIF)

Answer: B. Cost Plus Incentive Fee (CPIF)
This type of contract pays a supplier a certain amount based on meeting metrics. All allowable costs are reimbursed.

Danielle is the project manager for a public water organization. During the testing phase, she learns that there are contaminants in the water left from her construction project. Danielle consults her environmental experts and they claim that there is very little risk of any sickness. What is the best thing for Danielle to do?

A. Inform the public that the water is safe but they should boil the water before drinking.
B. Inform the public and perform a more detailed examination to locate the root of the problem.
C. Inform the public of the water treatment process and your organization’s safety record.
D. Do nothing because there is low risk for sickness.

Answer: B. Inform the public and perform a more detailed examination to locate the root of the problem.
Managing expectations, even for the public, is key to any project or organization. In this case, the problem also requires remediation to ensure that the problem can be solved to prevent continued issues with the water.

As a PMP, you are responsible for all of the following except:

A. Ensuring that the PMBOK® Guide is strictly enforced
B. Meeting the scope of the project
C. Providing accurate estimates to superiors
D. Keeping confidential information from leaking

Answer: A. Ensuring that the PMBOK® Guide is strictly enforced
The PMBOK® Guide is simply a recommended standard and not meant for project managers to follow strictly.

One advantage of a functional organizations is:

A. Being part of a functional team provides team members with peer support.
B. The project manager has full control over the budget.
C. The functional manager reports to the project manager.
D. Team members have two bosses.

Answer: A. Being part of a functional team provides team members with peer support.
Since team members usually work side-by-side with their respective peers, they have valuable resources readily available to them. In functional organizations, team members have one functional boss and the project manager usually has no control over the budget.

One advantage of a projectized organization is:

A. The project manager reports to the functional manager.
B. Team members have two bosses.
C. Team members are usually responsible with only one project at a time.
D. The project manager has no control over the budget.

Answer: C. Team members are usually responsible with only one project at a time.
Since team members are assigned to a project, they can typically focus on work within that particular project. In projectized organizations, team members have one project boss and the project manager usually has full control over the budget.

During the Manage Project Team process, a common tool used to provide constructive feedback is:

A. Project performance appraisal
B. Ground rules
C. Training
D. Team-building activities

Answer: A. Project performance appraisal
Project performance appraisals can be used to during the project to provide a communication medium. They can be formal or informal and can be used to improve team performance, one individual at a time. All other choices are tools and techniques for the Develop Project Team process.

You were assigned a twelve-person team on your project so you decide to bring a RAM to your kick-off meeting. When asked by an intern how the RAM would help, you explain that it:

A. Provides a diagram that decomposes all work.
B. Reduces overall project costs by eliminating all outsourcing.
C. Minimizes delays to the schedule by overlapping tasks.
D. Ensures that there is only one person who is ultimately responsible for a task.

Answer: D. Ensures that there is only one person who is ultimately responsible for a task.
A Responsibility Assignment Matrix (RAM) is used to show team members and their roles/responsibilities on the project. Used early in the life cycle, this table can reduce confusion on activities throughout the project.