PM Test Center

You are halfway through your project and your sponsor would like to know how much the project is expected to cost when it is completed. What earned value metric should you use?

A. CV
B. AC
C. EAC
D. ETC

Answer: C. EAC
EAC (Estimate at Completion) tells you that the project is expected to cost x dollars. This is derived from how much you thought it would cost from the beginning (BAC) and what the rate of spending is (CPI).

Sally, made a testing error that cost the project several thousand dollars and a week delay. However, when the project sponsor learned of the mistake, he tells everyone that it must have been caused by something else because Sally is always careful. This is an example of:

A. Halo effect
B. Theory X
C. Theory Y
D. Motivation agent

Answer: A. Halo effect
The halo effect is the inclination of rating an individual highly on all aspects of his/her work.

While interviewing for a new job, the hiring manager tells you that there are perquisites tied to the position. Based on what you know about these benefits, these could include any of the following except:

A. Company car
B. Health plan
C. Office with windows
D. Use of executive cafeteria

Answer: B. Health plan
A perquisite (or perk) is a special reward. Not every employee is eligible to receive them.

Which of the following is an example of Herzberg’s Theory’s hygiene factors?

A. Career path within the company
B. Increased salary
C. Increased responsibility
D. Getting along with executives

Answer: B. Increased salary
According to Herzberg, hygiene factors can ruin motivation but does not improve motivation. Things like salary, status, benefits all help keep employees at their positions but will not improve their work.

While building a new community park, you hired a contractor to complete a small visitor center that includes restrooms, a snack shop, and bulletin boards. You agreed to a fixed price contract payable upon completion of their deliverable. Midway through the project, they contractor informs you that the economy has affected their bottom line and they could use some funds upfront to pay their subcontractors. Which is the following is the best thing for you to do?

A. Insist that you agreed to pay upon completion and are not willing to violate the contract.
B. Negotiate a change to the payment conditions.
C. Pay the contractor for the work accomplished to date.
D. Start the search for another contractor.

Answer: B. Negotiate a change to the payment conditions.
Although paying the contractor for the work accomplished to date seems fair, you would want that detailed in a new contract or addendum. Therefore, the best approach is the negotiate the change first so the new payment conditions, whatever they may be, are documented and approved by both parties.

A change request should be initiated when any of the following occur except when there is:

A. A different resource is assigned to a task.
B. An error in defining the scope of the product.
C. An error in defining the scope of the project.
D. An new government regulation.

Answer: A. A different resource is assigned to a task.
Changing resources is very common during the course of a project and typically would not create a need to submit a change request.

Processes in the Initiating process group are:

A. Develop Project Charter, Identify Stakeholders
B. Develop Project Charter, Develop Preliminary Scope Statement
C. Develop Project Management Plan, Identify Stakeholders
D. Develop Project Management Plan, Plan Communications, Identify Stakeholders

Answer: A. Develop Project Charter, Identify Stakeholders
Develop Project Charter from the Integration knowledge area and Identify Stakeholders from the Communications knowledge area are the only two processes in the Initiation process group.

When hiring a supplier with a time and material contract, one concern to be aware of is:

A. Supplier is not motivated to reduce cost
B. You must have clear scope
C. There is usually an increase in change orders
D. Work can be incomplete or sloppy if they fall behind

Answer: A. Supplier is not motivated to reduce cost
For a time and material contract, there is little to no incentive for the vendor to reduce cost. In fact, the more work there is and the longer the project takes, the more the vendor could earn. The other choices are disadvantages for fixed price contracts.

When hiring a supplier with a fixed price contract, one concern to be aware of is:

A. Supplier is not motivated to reduce cost
B. Work can be incomplete or sloppy if they fall behind
C. It is only appropriate for small projects
D. Total project cost is unknown

Answer: B. Work can be incomplete or sloppy if they fall behind
When a vendor is working with a fixed price contract, they do their best to keep their cost down. The more they save themselves, the more they profit. Therefore, in the event the vendor falls behind, in efforts to keep their profit margins high, they could reduce the quality of their work.

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

A. Critical chain method
B. Activity-on-Arrow (AOA)
C. Activity-on-Node (AON)
D. Precedence Diagramming Method (PDM)

Answer: B. Activity-on-Arrow (AOA)
In an AOA, activities are arrows and nodes are used to connect them.