CAPM Exam 1|100 Questions with Verified Answers
You are a project manager for your company and are helping management choose a project. You've been
... [Show More] presented with the following information: Project 1 has a net present value of $25,000 and will take five years to complete. Project 2 has a net present value of $45,000 and will take two years to complete. Project 3 has a net present value of $33,500 and will take six years to complete. Which project should your company choose to complete? - CORRECT ANSWER Project 2 - High NPV, low time
You are the project manager for your organization and you're working with management to determine the best project for your company. Beth, a manager, has suggested using linear programming to help determine the best project. Linear programming is an example of which project selection method? - CORRECT ANSWER Constrained optimization
You are the project manager for your organization and you're working with your project team to help coach them on the processes within project management. During this coaching you explain the difference between constraints and assumptions and how this affects project initiation. You also explain how long-term projects and short-term projects may be measured differently during project ignition. In light of this conversion, customer demands, changes to the marketplace, and opportunity are all examples of which one of the following? - CORRECT ANSWER Reasons for project initiation
Management must choose a project that will be the most profitable. This approach to project selection is based on which one of the following? - CORRECT ANSWER The Economic Model
You are the project manager of the NHJ Project. This project is to create a new software package for a client. You're working with the client, business analysts, software developers, business developers, and the sales team to create the vision and requirements of the newly initiated project. Of the following, which one determines the scope of the project? - CORRECT ANSWER The Customer
June is managing a project which was slated to last one year. The project is now entering its third year. Of the following, which statement is most applicable to this situation? - CORRECT ANSWER The project scope has not been properly identified.
You are an IT project manager for your company and are currently defining the scope for a new project. The CIO defines project success as "implementation of standard technical components." The project sponsor, on the other hand, defines project success as "achieving excellence in technology," while the project customer defines project success as "the presence of sales-promoting features." What should you do as the project manager? - CORRECT ANSWER Talk with stakeholders to define the project objectives in measurable metrics
Yolanda is the project manager of the newly initiated P4 Project for her company. She's working with the project team and the key stakeholders to review the project requirements and prep for the project scope creation. All of the following documents are needed to define the project scope except for which one? - CORRECT ANSWER The Quality Management Plan
You are the project manager of the PHG project. You and your project team need to verify a project assumption. Which one of the following can most help with this process? - CORRECT ANSWER Historical Information
You are the project manager for your organization. You have just been assigned a new project with a predetermined budget of $250,000. This is an example of which one of the following? - CORRECT ANSWER Constraint
You have just taken over a failing project. In your initial review of the project schedule, you realize the previous project manager has made no exceptions for travel delays. This is an example of which one of the following? - CORRECT ANSWER Assumption
You are the project manager for your organization. The ART project, which you have been working on for the last two months, has a very strict cost constraint, high requirements for quality, and must be completed within the next eight months. If the project exceeds its budget by more than 1 percent, management will deem the project a failure. Changes to your project have caused the project costs to increase slightly, thereby expanding the project schedule by two weeks. Of the following, which control mechanism is the most important in this project? - CORRECT ANSWER Cost Control
A new project is forming to create a new warehouse. The warehouse plans call for completion within one year if the expected resources are available. Management requires the in-house development team on this project. The project manager and the project sponsor, however, feel the available resources are committed to too many other projects and won't have adequate availability to the new project. Because of all this, additional time will be needed in developing which one of the following? - CORRECT ANSWER A resource-limited schedule
You are the project manager of the NHQA Project for your company and you're working with the functional managers to define all of the needed resources on your construction project. All of the following are resources except for which one? - CORRECT ANSWER Time
Henry is the project manager of the GHY Project for his company. He's working with the project team to develop a robust project plan for the project. Bethanne, one of the project team members, doesn't understand why so much time is needed for the project plan and wants to get to work on the project more quickly. Harold should explain that the project plan is used for all except one of the following. Which one isn't it used for? - CORRECT ANSWER Creating methods to assign project resources to stakeholders
There are many things you'll need to plan for in project management, but you'll always need to address the Triple Constraints of Project Management. What are the Triple Constraints of Project Management? - CORRECT ANSWER Time, Cost, and Scope
You must have an engineer on your project for the entire second phase. If you do not have an engineer available, the project will fail. The demand for the engineer can best be described as what? - CORRECT ANSWER A Constraint
You and your project team are executing a plan to install a new piece of software for every computer within your organization. Your project team has discovered that not all of the computers within the organization can run the new software the way they had hoped. This is an example of which one of the following? - CORRECT ANSWER Assumption
Your project is to build a bridge in your city. The project must be completed by December 1 or your company will have to pay $10,000 a day in fines. This is an example of which one of the following? - CORRECT ANSWER A Schedule Constraint
You are the project manager of the AAA project, which requires different skills by different team members at various times throughout the project. Which of the following should detail how team members are brought onto, and released from, the project? - CORRECT ANSWER The staffing management plan
Resource planning is an important component of every project. You'll need to know when resources are needed, when they'll be released from the project, and what the schedule of each resource is. One tool, a resource histogram, can help with project planning. What is the purpose of a resource histogram? - CORRECT ANSWER It allows the project manager to determine how many resources are used in a given month on the project
You are the project manager of the BNH project. You have the following project team members: Thomas, who's very excited about the project work and will work overtime if needed; Emily, who always works overtime; Henry, who's well-liked by the customer and can work overtime if needed; and Samantha, who always completes the project requirements. Who is the best project team member for this project? - CORRECT ANSWER Samantha
Projects rely on the project manager to lead and direct the project work and the project team to execute the project work. Which one of the following will help a project manager determine which project team members complete activities in a project? - CORRECT ANSWER The responsibility assignment matrix
Your organization is launching a new project that is similar to an older project. Which one of the following can streamline the project planning process? - CORRECT ANSWER Using the WBS of the previous project as a template for this project's WBS
What is the process of subdividing project deliverables into smaller, more manageable components called? (Choose the best answer.) - CORRECT ANSWER Decomposition
You and the project team have just created a WBS for your project. Each item within the work package is recognized by a unique identifier. Your boss wants to know where the numbering scheme came from. Which of the following would be the best explanation to give him? - CORRECT ANSWER A code of accounts
You are the project manager of the NHQ Project for your company. This project is to create a new condo building in your city and is scheduled to last for just ten months. Your project team has just decomposed all of the project deliverables for their construction project. What is the document that the decomposition creates? - CORRECT ANSWER A work breakdown structure
You and your project team are working on the creation of the project's WBS. Some of the elements cannot be decomposed until late in the project. What approach can the project team take in this scenario? - CORRECT ANSWER Utilize Rolling Wave Planning
You, a project manager, must know all of the components of a project plan and be able to explain the importance, significance, and depth of each project management planning component. One document you'll use often in project planning is the WBS. What is the smallest item in the WBS called? (Choose the best answer.) - CORRECT ANSWER A Work Package
All except one of the following activities are usually involved in the creation of the WBS. Which one is the exception? - CORRECT ANSWER Evaluating the project risk components
Joan is the project manager of the NQQ Project for her company and she's working with the project team to create the work breakdown structure (WBS). What is the purpose of the WBS? (Choose the best answer.) - CORRECT ANSWER It organizes and defines the project scope
You are creating a plan to control how changes to the project scope will be permitted. Which one of the following would be the name of this plan? - CORRECT ANSWER The Scope Management plan
Your project is not costing as much as you predicted. If you do not use your entire budget allotment for the first phase of the project, you will receive a budget reduction for the second phase of your project. You elect to order slightly better materials that will provide a higher product for the customer, but that will also allow you to meet the predicted budget for this phase of the project. This condition is best described as which one of the following? - CORRECT ANSWER Gold Plating
A change has been approved for your project. This change will cause the project to increase in costs by $25,000. What needs to be updated as a result of this change? (Choose the best answer.) - CORRECT ANSWER The cost baseline
A change has been demanded by the customer for your project scope. Which one of the following does not need to be examined because of the change? - CORRECT ANSWER The project charter
You are the project manager of the HGF Project. The project scope has been approved by all stakeholders and management. The project is now moving forward. A week later, however, two of the key stakeholders, John and Tina, come to you demanding to change some aspects of the scope statement. What should the project manager do? - CORRECT ANSWER Refuse to make any changes, but have the stakeholders complete a change request form
Julianne is the project manager of the JGB Project. A change request has been approved that will add a considerable amount of time and cost to the project. What must be updated to reflect these changes? - CORRECT ANSWER The scope baseline
You are the project manager for your organization. Your latest project is to create a web interface that allows customers to purchase items from an online catalog. If you create the product in-house, it will cost $150,000 to create and nearly $4,500 each month in administration and fees. A vendor has supplied a quote to create the software for $160,000 and to handle the administration for five cents per transaction. There are expected to be 65,000 transactions each month. Which one of the following will help you determine which decision has the best value? - CORRECT ANSWER A decision tree
A project manager wants to assign resources to activities that must happen during off-hours. The labor union, however, wants to discuss this issue with the project manager before approving the schedule. The relationship between the labor union and management is represented by which one of the following? - CORRECT ANSWER A collective bargaining agreement
You are the project manager for your organization and you're working with management and the project team to create the project management plan. Which plan controls how team members are brought onto and released from the project? - CORRECT ANSWER The staffing management plan
Fred is the project manager of the HUT Project and he's in a conflict with Sarah about requiring the project team to work overtime. Fred insists that overworking the project team may result in all but one of the following. Which one won't result? - CORRECT ANSWER An increase in quality inspections
A project manager is completing a project for another organization and is currently completing risk planning in order to determine which risks demand actions in the project. Which one of the following must be considered when planning to take actions regarding the project risks? - CORRECT ANSWER The Utility method
Sarah is the project manager of a project to create an online help manual for customers of a product her company sells. Samuel, a writer for the project, is taking considerably longer than what was planned to create the documentation. While Samuel's work is excellent, if he continues to be late with the needed documentation, the project will be late. Which of the following is NOT an appropriate corrective action for this problem? - CORRECT ANSWER Remove Samuel from the project team
You are the project manager of the generator upgrade and replacement project, which is expected to last 36 months. The project work is extremely dangerous so the project team will undergo intense safety training to ensure the safety of the workers and to make certain the project is not delayed due to faulty work. The cost of the safety training is known as which one of the following? - CORRECT ANSWER The cost of conformance to quality
The communications management plan will detail the schedule for expected communications among other activities. One of the regularly scheduled meetings is used to record the status of project work. Which one of the following is used to record the status of project work? - CORRECT ANSWER A status meeting
Team development is an important part of project management. Team development fosters relationships and good communication among the project team members. Which one of the following can improve project teamwork? - CORRECT ANSWER Offsite activities
John is the project manager for his company. John believes that the project team should just know and do their assignments. Team development, John believes, is wasted time away from doing the project work. Why should the project manager work to develop the project team? - CORRECT ANSWER To improve the skills of team members in order to increase their ability to complete project activities.
You are the project manager of the JKG Project. You have determined that the project team needs additional training to complete the project work. The additional training is which type of cost? - CORRECT ANSWER Direct Costs
You are the project manager of a large network upgrade project. The project scope has been approved and now you're ready to create the WBS. Who actually creates the WBS? - CORRECT ANSWER The Project team
Which human resource theory believes that the project team can be self-led and productive if challenged? - CORRECT ANSWER Ouchi's Theory Z
Which one of the following is the best tool for tracking project scope? - CORRECT ANSWER The Work Breakdown Structure
You need to know when project team members are available to work on the project. Which calendar will take into account project team members' vacations? - CORRECT ANSWER The Resource Calendar
You are a project manager for your organization. Your project has a BAC of $400,000 and is expected to last one year. The project work is scheduled to be completed in equal amounts each month. Currently, the project is in month three but is only 20 percent complete. You have spent $35,000 to complete the work. What is the earned value for this project? - CORRECT ANSWER $80,000
You are a project manager for your organization. Your project has a BAC of $400,000 and is expected to last one year. The project work is scheduled to be completed in equal amounts each month. Currently, the project is in month three, but is only 20 percent complete. You have spent $35,000 to complete the work. Given this, what is the planned value for this project? - CORRECT ANSWER $100,000
You are a project manager for your organization. Your project has a BAC of $250,000 and is expected to last ten months. Currently, the project is in month six and is 40 percent complete, but the project was expected to be 60 percent complete by this time. You have spent $125,000 to complete the work. What is the cost performance index of the project? - CORRECT ANSWER 0.8
You are a project manager for your organization. Your project has a BAC of $250,000 and is expected to last ten months. Currently, the project is in month six and is 40 percent complete, but the project was expected to be 60 percent complete by this time. You have spent $125,000 to complete the work. What is the schedule performance index of the project? - CORRECT ANSWER 0.67
Lenny is the project manager of the GHA Project for his company. A recent earned value management calculation shows that Lenny has a CPI of .98 on this project. A project that has a CPI of .98 means what? - CORRECT ANSWER The project has to spend one dollar for every 98 cents of work it receives
Management in your company is tracking the status of all projects using earned value management. Which of the following values can alert management to a problem on the project? - CORRECT ANSWER A CPI of .90
You are the project manager for your organization. Your latest project has a BAC of $250,000. You have calculated your CPI to be .91 and your AC to $175,000. What is your project's EAC? - CORRECT ANSWER $275,000
You have just taken over a project that is several months late and is in very bad shape. The previous project manager had not kept accurate records on the project work, project expenses, or the overall performance of the project. The customer is still very interested in having the project completed and is not holding you responsible for the project work up to this point. Of the following, which one is the best solution to move forward and to create accurate records of your progress? - CORRECT ANSWER Rebaseline the project
A project has a budget of $7,500,000 and is expected to last five years. The project is now in year three and is 40 percent complete. What is the earned value of this project if the project manager has spent $4,225,000 of the project budget so far? - CORRECT ANSWER $3,000,000
The project manager of a large software implementation project just finished a project status meeting. In the meeting, he learned that a crucial piece of the software his team was creating is faulty. The news will cause the project to be late by at least one month and will likely cost additional fees for the developers' time. What is the next step the project manager should take? - CORRECT ANSWER Present the news to management and the customer with a solution to resolve the problem
Virginia is a project manager overseeing the construction of a new retail shopping center. The project is scheduled to last one year and is currently in month five. She is working with several subcontractors on the project to complete the paving, road connections, and parking lot lighting. It has come to her attention from the paving contractor that the city has raised the fees to connect the parking lot to the city drive. Which of the following communications is most appropriate for this change? - CORRECT ANSWER A cost variance report
Protecting the project scope is paramount in all projects, but sometimes changes will happen. In which of the following is the project scope change control system documented? - CORRECT ANSWER The project scope management plan
You are the project manager for the BNH Project. A stakeholder is demanding that your project team make some immediate changes to the product your project is creating. You inform the customer that the changes cannot happen immediately because of the project processes that are established by your organization. In which of the following are these processes documented? - CORRECT ANSWER The scope change control system
A value-added change has been approved for your project. The change will require the project to take two months longer and will cost $25,000. What must the project manager do once these changes have been approved? - CORRECT ANSWER Update the time, cost, and scope baselines to reflect the new changes
You are a project manager for your organization. Your project utilizes a vendor to complete all of the electrical work within your project. Your stakeholder has requested a change in the scope of the project which will cause additional work for the vendor. Which of the following documents will dictate how the change will proceed in regard to the vendor? - CORRECT ANSWER The contract
Change control is essential to project success. Part of change control is the coordination of all changes across the entire project. When does integrated change control happen? - CORRECT ANSWER From project inception through completion
Mary is the project manager of a software development project. The stakeholders of the project have requested a major change to the project scope. The change control board has reviewed and approved the change even though it will require six additional weeks of the development team's time. What must Mary do next? - CORRECT ANSWER Work with the project team to update the project scope, WBS, and WBS dictionary
Your organization completes projects for other organizations. You are the project manager of the BGV Project. It is almost complete but the stakeholders have requested a change to the project scope. The customer is willing to pay any additional fees for this change. This additional change will cause the project to run three weeks longer than was planned. The problem, you realize, is that you have already scheduled your current project team to start a three-year project for a different customer that will overlap with the new work the customer has just added to the scope. You need to complete the current project, keep your current customer happy, and start the next project on time. What should you do? - CORRECT ANSWER Hire additional project team members to complete the project on time
Dian is the project manager of the HQN Project. This project is moving into its closing processes and Dian needs to finalize the project records for archives. Which of the following is NOT needed when archiving a project? - CORRECT ANSWER Commercial databases
You are the project manager for a company that completes projects for other organizations. Your company has no formal archiving process for project records. Your project has just completed and the customer has formally accepted the project work. The customer is very pleased with the project and is considering hiring your organization for another project. What should you do with your current documentation? - CORRECT ANSWER Archive the information yourself
You are the project manager of the LKJ Project. Your project is nearly complete and you are beginning to organize your project records for archiving. All of the following should be included in your project archives except for which one? - CORRECT ANSWER Drafts of the project charter
You are the project manager of a project to create and assemble 10,000 information and direction signs for a hospital campus. The signs are to be installed by another project team by doors, elevators, and offices. The customer agrees that your project scope is completed and signs off on the project deliverables. The project manager of the installation team accepts the signs from you and wants to know when you and your project team will be arriving to help install the signs throughout the hospital campus. Which one of the following is the appropriate response? - CORRECT ANSWER Do nothing. Your project scope has been completed
A project manager has reported that a project is completed. The customer, however, brings to the project manager's attention that the project quality is not to the level defined in the project plan. What must the project manager do next? - CORRECT ANSWER Correct the problem to be in alignment with the project plan
You are the project manager of the MHG Project in a projectized environment. Your project is complete and the customer is very happy with the deliverables. Which action must happen next? - CORRECT ANSWER The project manager releases the project team to other assignments
Ethan is the project manager of the NHA Project for his company and he's working with two stakeholders who have conflicting objectives. One of the stakeholders, Nancy, is demanding a different grade of tile for the floors, while the opposing stakeholder, Mike, insists the new tile will cost too much for the project and he doesn't really like the tile anyway. You get the two stakeholders to agree that if Nancy pays for the difference in tile costs from her budget, Mike will agree to the change in tile. What type of conflict resolution is this? - CORRECT ANSWER Compromising
Your company has a policy against accepting gifts worth more than $50 from vendors. Is it acceptable to accept a gift card for $100 as part of a public ceremony for your work done on the project from your project customer? - CORRECT ANSWER Yes, this is a gift from a customer, not a vendor.
You are the project manager for your organization and are building the project team. One of the candidates you're interviewing assures you that he'd be a great fit for the project team. In addition, the candidate informs you that he'd be happy to surrender half of his project bonus directly to you if you'd hire him. What is the best course of action in this instance? - CORRECT ANSWER Do not hire the candidate
You are a project manager for a company that completes work for other organizations. Your company has a policy of not accepting gifts from vendors or customers over $100 in value. Your project work has saved the customer nearly $100,000 per quarter and they are thrilled with your work. The customer knows about the policy your company has, but really wants to show you their appreciation. They present you with a plaque and a $500 gift card for an electronics store in your hometown. Your organization will never know about the gift card if you don't report it. What should you do? - CORRECT ANSWER Politely decline the reward because of your company's policy
You are a project manager of a project that has a very high priority within your organization. This project will include all areas of the organization, and its success will be linked to the profitability of the organization for years to come. Within this project there are some high risks that must be managed and monitored. You feel that your biggest weakness within project management is risk management. Which of the following is the best method to strengthen your risk management practices? - CORRECT ANSWER Attend a risk management seminar
Bob is a project manager for his company. To better manage a project, he has taken several classes in the technology the project deals with. This is an example of which one of the following? - CORRECT ANSWER Enhancing individual competence
You are the project manager for your organization. One of your project team members is struggling with the project management approach and planning of the project work. Your manager has asked you to mentor Todd in your project management methodologies. For Todd, your mentoring is an example of which one of the following? - CORRECT ANSWER Enhancing individual competence
You are the project manager for your company. Your current project is to implement a new client-server-based ordering system sales department. Tom is the sales manager and has a specific application in mind for the solution. Robert, the CEO, wants the latest technology from a specific vendor or nothing at all. Tom disagrees with Robert and demands the technology he has selected be installed as part of your project since it is a sales solution and he is the sales manager. What should you do? - CORRECT ANSWER Confront the problem by finding the best solution for the business need
Which one of the following is an example of smoothing? - CORRECT ANSWER The project manager downplays the problem
You are the project manager of the NHA Project for your company. Your company has defined the expected levels of quality each project must adhere to. Kenneth, a stakeholder, is arguing with one of your project team members because he wants the quality outcomes to be even higher than what the policy requires. What should you do? - CORRECT ANSWER Discuss with Kenneth that the policy determines the expected level of quality, but you may be able to change some components of the project for an additional cost.
You are a project manager for a company that completes projects for others. You are currently working on a project for a company to create a new remote-controlled device for digital cameras. Another company has approached you about completing a project for them. This new project, however, is for your current customer's competition. In addition, this competing company is creating a very similar device. What should you do? - CORRECT ANSWER Accept the assignment because both companies have nondisclosure agreements with you and there is no noncompete clause in your contracts
You are a project manager of a project to install new web software for your organization. The software project has been halted, however, due to a pending law that may change how the public can interact and use the information the software will provide. Until the legal situation is resolved, this project cannot move forward. The legal issue in this scenario is what? - CORRECT ANSWER A project constraint
You are the project manager for your organization and are currently determining which resource is the best fit for each of the project activities. Thus, you are completing which one of the following? - CORRECT ANSWER Project human resource management
John is the project sponsor for your project and you've been working with him regarding some quality and risk issues. Which of the following statements is true about the project sponsor's activities? - CORRECT ANSWER The project sponsor ensures the project manager has the necessary resources to complete the project
You and another project manager are in competition for Juan. Both of you need him for activities on your projects full-time, but your projects overlap in schedule. This is an example of which one of the following? - CORRECT ANSWER Resource constraint
Management has asked you to create an Ishikawa diagram for your new project. An Ishikawa diagram aims to do which one of the following? - CORRECT ANSWER Offer a complete cause-and-effect analysis
A project manager has a project team member whose work is consistently not in alignment with the quality metrics as required by the customer. This discrepancy results in rework and wasted time. What should the project manager do? - CORRECT ANSWER Implement corrective actions
Complete this statement: Low _______________ may not be a problem; low _______________ always is. - CORRECT ANSWER Grade, quality
You are the project manager of a project to solve customer service problems in your company's call center. You would like to create a chart showing the frequency of problems your project team has identified. What is the name of the chart you would like to create? - CORRECT ANSWER A Pareto chart
You are the project manager of a project to manufacture a new product. The project is almost complete. The initial product is being tested and the quality engineers discover a part is seven millimeters off target. Because of the errors, the product is rejected. What is the likely outcome of this scenario? - CORRECT ANSWER The project team must rework the part to correct the problem
You are the project manager for your organization and you're currently mentoring Marcy in the principles of project management. She does not understand the difference between quality and grade. Which of the following statements would best explain to Marcy what grade is? - CORRECT ANSWER Grade is the category or rank given to a component with the same functionality but different technical characteristics
You are a project manager responsible for the implementation of a software program. Your project team will travel to several hundred remote locations to install the software onsite. Project team members are reporting that the stakeholders in the locations are asking them to do extra configuration work as part of the install. If the changes are routed through the change control system, it may be several days before the changes can happen, and the project team members are only onsite for two days at each location. What should you do? - CORRECT ANSWER Evaluate the changes that have been requested so far in the project and determine if the changes are valid. If so, approve the changes as part of the installation process for all sites.
In the early stages of a project, this event is easy to accept. Later in the project, it is difficult to accept. What is the event? - CORRECT ANSWER Change
A stakeholder has proposed some changes that will enhance the deliverable of the project. Where is the scope change control system documented? - CORRECT ANSWER The project scope management plan [Show Less]