PM Test Center

You have just been hired as a project manager for a telecommunications company. You are tasked with managing a project that will create smaller cellular phones. The business case for this is based on:

A. Organizational need
B. Strategic offering
C. Social need
D. Technological advance

Answer: D. Technological advance
The business case, which helps determine whether a project is worth the investment, is an input to the Develop Project Charter process. Strategic offering is noise so of the three real choices (market demand, ecological impact and customer request are the other three possible business cases), technological advance is the most accurate.

There are two projects being evaluated but only one can be undertaken. Your finance department decides to use Benefit Cost Ratio (BCR) to help make the decision. Before they even perform the BCR, they inform you that a possible outcome is that neither is a good fit for the organization and you may have to find another solution. After completing their analysis they determine that Project A has a BCR of 0.8 and Project B has a BCR of 0.6. Based on their BCR scores, you should:

A. Choose Project A
B. Choose Project B
C. Choose neither and seek alternative projects
D. Ask for more information to make a decision

Answer: C. Choose neither and seek alternative projects
A Benefit Cost Ratio (BCR) weighs benefits against costs. A BCR of 1.0 means that benefits equal costs. Anything over 1.0 represents that benefits outweigh the costs. For instance, a BCR of 3.5 means that benefits are 3.5 times the costs. Conversely, a BCR of under 1.0 shows that the costs outweigh the benefits. Unless the project must be completed, such as meeting a regulatory requirement, a BCR under one should not be started. In this example, both projects have a BCR of under 1.0.

While developing a charter, you are asked to consider enterprise environmental factors. These may include all of the following except:

A. Historical information
B. Marketplace conditions
C. Government standards
D. Industry standards

Answer: A. Historical information
Enterprise environmental factors can include government standards, industry standards, organization infrastructure, and marketplace conditions. Historical information is an organizational process asset.

You are a project manager for a new client. To help you get acclimated more quickly, she directs you to their organizational process assets in the company archives. You know that when you locate that directory, you will likely find:

A. Industry standards
B. Historical information
C. Financial data
D. Market conditions

Answer: B. Historical information
Organizational process assets typically include processes, policies, templates, and historical information. They are essential inputs and outputs for many processes.

What is the name of the document that formally authorizes a project?

A. Project management plan
B. Requirements documentation
C. Project charter
D. Project scope statement

Answer: C. Project charter
According to the PMBOK®, Develop Project Charter is the process of developing a document that formally authorizes a project or a phase and documenting initial requirements that satisfy stakeholder needs and expectations.

During the project selection stage, you learn that the value of Project A is $100,000 and the value of Project B is $75,000. Ultimately, Project A was chosen. As a result, the opportunity cost of that decision is:

A. $100,000
B. $75,000
C. $25,000
D. $175,000

Answer: B. $75,000
The opportunity cost is simply the value of the project not chosen. There is no math involved.

The main output of the Identify Stakeholders process is:

A. Performance report
B. Stakeholder register
C. Project charter
D. Communications management plan

Answer: B. Stakeholder register
The stakeholder register contains all the details regarding project stakeholders. It is used as an input for other communication processes.

Which tool and technique is used throughout the entire Integration process group?

A. Project charter
B. Expert judgment
C. Project management plan
D. Organizational process assets

Answer: B. Expert judgment
Expert judgment is the only tool and technique that spans across every process in Integration. All other choices listed are inputs and/or outputs.

Types of stakeholder analysis models include all of following except:

A. Influence/satisfaction grid
B. Influence/impact grid
C. Power/interest grid
D. Power/influence grid

Answer: A. Influence/satisfaction grid
Common stakeholder analysis models are power/interest grid, power/influence grid, influence/impact grid, and salience mode.

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.