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221. The main player in project communication is the
A. sponsor
B. project manager
C. functional manager
D. functional team
E. All of the above.
ANS: B
222. The type of contract (payment mechanism) chosen for a project is often a reflection of the degree of risk associated with completing that
project. For a firm fixed price contract, payment for risk _____ .
A. Is accomplished by paying the actual costs to the contractor.
B. Is accomplished by paying the contractor for his costs plus a fixed fee (profit).
C. Is an undisclosed contingency in the contractor's bid.
D. Is accomplished by paying for the budgeted costs of dealing with risks, as predicted in the project risk assessment.
E. B and C
ANS: C
223. Which is not an element of procurement management?
A. Purchasing
B. Expenditure
C. Marketing
D. Inspection
E. B and D
ANS: C
224. Which percent of the total project labor hours are typically expended by the end of the second phase of the project life cycle?
A. 0.05
B. 0.1
C. 0.15
D. 0.25
E. 0.5
ANS: D
225. Bar charts are most appropriate for:
A. Comparing actual to planned performance to each activity.
B. Showing slack time.
C. Showing critical path dependencies.
D. Showing which activities can be rearranged in parallel.
E. All of the above.
ANS: A
226. Formal authority is often referred to as legitimate power. Which two other forms of power are also considered to be legitimate power?
A. Reward and penalty
B. Reward and referent
C. Referent and expert
D. Expert and reward
E. Penalty and referent
ANS: A
227. Power games, withholding information, and hidden agendas are examples of-.
A. noise
B. communication barriers
C. indirect communication
D. mixed messages
E. All of the above
ANS: B
228. Scope management is:
A. a project control function.
B. employs change control.
C. a work authorization process.
D. considers Cost, Quality and Schedule.
E. All of the above.
ANS: E
229. The most common method for pricing out non-burdened labor hours for a three year project would be to:
A. Price out the hours at the actual salary of the people to be assigned.
B. Price out the work using a company-wide average labor rate.
C. Price out the work using a functional group average labor rate.
D. All of the above.
E. A and B only.
ANS: C
230. The principles of risk management should be followed only for:
A. complex projects
B. simple projects
C. large projects
D. A and C
E. All of the above.
ANS: E
231. Utility Theory:
A. considers the risk propensity of the decision makers.
B. is based on proven statistical methods.
C. deals with the usefulness of the end product.
D. is a key element of ISO 9000
E. B and C
ANS: A
232. Which is not part of the purchasing cycle?
A. Defined need
B. Transmit need
C. Inspection
D. Prepare and issue purchase order
E. A and D
ANS: C
233. A network has been developed with resources from six different departments. One of the six departments has just informed you that they can
increase the number of employees from 5 to 8. This will result in:
A. A shortening of the critical path.
B. A shortening of the noncritical path.
C. A decrease in the total cost of the project.
D. An increase in the cost of the project.
E. A through D are possible based upon where the resources are deployed.
ANS: E
234. Conflict management requires problem-solving. Which of the following is often referred to as a problem-solving technique and used
extensively in conflict resolution?
A. Confrontation
B. Compromise
C. Smoothing
D. Forcing
E. Withdrawal
ANS: A
235. Cost Reimbursable contracts are equivalent to:
A. Cost plus contracts
B. Fixed plus contracts
C. Progress payment contracts
D. Back charge contracts
E. None of the above.
ANS: A
236. In project-driven companies, costs are usually billed againest the project based upon:
A. The burdened labor rate of the actual employees who performed the work.
B. The burdened labor rate of the line organization average salary.
C. The burdened labor rate of the company average salary.
D. The burdened labor rate of the average salary of the project team members.
E. None of the above.
ANS: A
237. Project Risk Management is based on which of the following premises:
A. the future is unknown.
B. unknowns can result in risks or opportunities.
C. we cannot control risk events.
D. project risk impact can be measured and controlled
E. All of the above.
ANS: E
238. The project manager that allows and supports group discussions and decision making is called a(n) _____ manager.
A. autocratic
B. consultant autocratic
C. consensus
D. shareholder
E. None of the above.
ANS: C
239. What is the purpose of the Project Plan?
A. To document the Preliminary estimates.
B. To document the Definitive estimates.
C. To document the Budgetary estimates.
D. To document Parametric estimates.
E. To document Order of Magnitude estimates.
ANS: C
240. Management has decided to "crash" a project in order to avoid penalty payments for late deliveries. To crash the project, either overtime or
additional resources should be assigned to:
A. All activities.
B. Only those activities with the longest time durations.
C. Those activities on the critical path begining with the longest time duration activities.
D. Those activities with the greatest degree of risk.
E. None of the above.
ANS: C
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