CAPM Practice Test 26 — 15 Questions

Question 1

Which THREE of the following are components typically included in a business case?

Accepted Answer

Cost-Benefit Analysis. A business case typically includes an Executive Summary (E), which concisely presents the problem, proposed solution, and recommendation to decision-makers at the top of the document. It also includes a Cost-Benefit Analysis (B), which quantifies expected costs against projected benefits (e.g., ROI, NPV, payback period) to justify the investment. A Risk Assessment (D) is also standard, identifying potential risks, their likelihood and impact, and mitigation strategies that could affect the initiative's viability. By contrast, a Stakeholder Register (A) is a project stakeholder management artifact produced during project initiation, not a core business case component, and a Work Breakdown Structure (C) is a scope decomposition tool created during project planning, so neither belongs in the business case itself.

Answer

Stakeholder Register

Answer

Work Breakdown Structure

Question 2

Which TWO are benefits of self-organizing teams?

Accepted Answer

Faster decision making.. Option A (Faster decision making) is correct because self-organizing teams push decision authority down to the people closest to the work, eliminating the need to escalate to a manager or wait for approval, so decisions are made quickly and locally. Option E (Reduced overhead of management) is correct because when the team plans, coordinates, and assigns its own work, the need for day-to-day managerial direction and supervision shrinks, lowering management overhead. Option B (Higher creativity) is not marked correct because creativity is not a guaranteed benefit of self-organization and depends on other factors such as diversity and psychological safety. Option C (More consistent processes) is not marked correct because self-organizing teams often adapt their processes continuously, which can reduce rather than increase consistency. Option D (Better adherence to a fixed plan) is not marked correct because self-organizing teams thrive on emergent, adaptive planning rather than rigid adherence to a fixed plan.

Answer

Higher creativity.

Answer

More consistent processes.

Answer

Better adherence to a fixed plan.

Question 3

Which THREE of the following are typical components of a business case?

Accepted Answer

Alternative Analysis. A business case typically includes an Alternative Analysis (C), which compares viable options (e.g., build vs. buy vs. do nothing) against criteria such as cost, benefit, and feasibility to justify the recommended solution. It also includes a Financial Analysis (D), covering metrics like ROI, NPV, payback period, and cost-benefit analysis that quantify the investment's value. A Risk Assessment (E) is likewise a standard component, identifying potential risks, their probability and impact, and mitigation strategies that affect the decision. By contrast, the Project Charter (A) is a separate authorization document created after the business case is approved, and the Work Breakdown Structure (B) is a project-planning deliverable that decomposes scope into work packages, not a business case element.

Answer

Project Charter

Answer

Work Breakdown Structure

Question 4

A project manager is performing risk identification. Which two inputs are essential for this process? (Choose two)

Accepted Answer

Stakeholder register. The Stakeholder register (A) is a correct input because it identifies the people and organizations who may be affected by or can influence project risks, providing their roles, interests, and communication needs that feed directly into risk identification. The Risk management plan (D) is also correct because it defines the risk methodology, roles and responsibilities, budget and schedule for risk activities, risk categories, and stakeholder risk appetite, all of which guide how risk identification is performed. Work performance reports (B) are not an input to Identify Risks; they are outputs of Monitor and Control Project Work used in other processes such as Monitor Risks. The Change log (C) is not an input to Identify Risks; it is used in processes like Control Quality and Monitor Risks. The Risk register (E) is an output of Identify Risks, not an input, though it becomes an input to later risk processes.

Answer

Work performance reports

Answer

Change log

Answer

Risk register

Question 5

A BA is conducting a needs assessment for a new system. Which activity is performed first?

Accepted Answer

Define business needs. Defining business needs is the first activity in a needs assessment because it establishes the problem or opportunity the project must address. Only after the need is defined can stakeholders be identified, a business case built, and requirements gathered. This sequence ensures all subsequent work is anchored to a validated business need.

Answer

Identify stakeholders

Answer

Create business case

Answer

Gather requirements

Question 6

A startup is adopting Scrum for the first time. During the Sprint Review, stakeholders request many changes to the product increment. What is the best way for the Scrum Master to handle this?

Accepted Answer

Ask the Product Owner to add the changes to the Product Backlog for prioritization in future Sprints.. In Scrum, the Sprint Review is a time for stakeholders to inspect the increment and provide feedback, but changes cannot be made to the current Sprint as the Sprint Goal and scope are fixed. The Product Owner is responsible for managing the Product Backlog, so the best action is to capture these change requests and have the Product Owner add them to the Product Backlog for future prioritization. This ensures the Development Team remains focused on the current Sprint Goal and that changes are evaluated against business value and priority in upcoming Sprints.

Answer

Let the Development Team decide which changes to implement immediately.

Answer

Add the changes to the current Sprint Backlog immediately.

Answer

Ignore the feedback since the Sprint is complete.

Question 7

In a requirements gathering workshop, two stakeholders have differing opinions on the system interface design. The business analyst decides to use a technique that involves listing pros and cons of each option. Which technique is being used?

Accepted Answer

Decision Analysis. Decision Analysis is a technique used to evaluate and compare multiple options by systematically listing the advantages (pros) and disadvantages (cons) of each. In this scenario, the business analyst is facilitating a structured comparison of two interface design alternatives, which is the core of Decision Analysis. This technique helps stakeholders make informed choices by weighing the trade-offs objectively.

Answer

Prototyping

Answer

Interface Analysis

Answer

Brainstorming

Question 8

The sponsor is concerned about the accuracy of cost estimates prepared using analogous estimating. Which estimating technique should the project manager recommend to improve accuracy?

Accepted Answer

Bottom-up estimating. Bottom-up estimating involves estimating individual work packages or activities in detail and then aggregating them to obtain a total project cost. It is the most accurate estimating technique because it relies on detailed, granular data. Analogous estimating, by contrast, uses historical data from similar projects and is less accurate. Therefore, bottom-up estimating is the best recommendation to improve accuracy.

Answer

Reserve analysis

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Parametric estimating

Answer

Three-point estimating

Question 9

A business analyst is facilitating a requirements workshop for a new payment system. The workshop includes representatives from sales, finance, IT, and customer support. During the session, the sales team insists on supporting multiple currencies, while finance emphasizes strict audit trails. IT wants a microservices architecture, but customer support demands a simple user interface. The conversation becomes heated, and no decisions are made. The project sponsor wants a single recommendation that balances these needs. As the business analyst, what is the best approach to move forward?

Accepted Answer

Use a prioritization matrix based on business goals, such as revenue impact and compliance, to rank requirements.. Using a prioritization matrix based on business goals (e.g., revenue impact, compliance) provides an objective framework to resolve conflicting stakeholder requirements. This approach aligns with business analysis best practices for managing trade-offs and ensuring decisions support overall business objectives. Option A delays resolution and may miss cross-departmental dependencies. Option C abdicates the BA's responsibility to facilitate decisions and may lead to arbitrary choices. Option D risks alienating other stakeholders and does not address the core conflict.

Answer

Schedule a follow-up meeting with each department separately to gather more details.

Answer

Create a requirements document that includes all demands and let the project manager decide.

Answer

Propose a solution that addresses the most vocal stakeholder's needs first to build goodwill.

Question 10

A project team using a Kanban board wants to predict when all remaining backlog items will be completed. Which metric is most useful for this prediction?

Accepted Answer

Cycle time. Cycle time measures the time from when work starts on an item until it is completed, providing a reliable basis for forecasting completion of items in a flow-based system like Kanban. Option C is correct. Velocity (A) is used in Scrum and is not directly applicable to Kanban's flow-based approach. Cumulative flow diagram (B) visualizes WIP and cycle time but does not directly predict completion as effectively as cycle time itself. Lead time (D) includes waiting time before work starts, making it less precise for predicting completion once work is in progress.

Answer

Velocity

Answer

Cumulative flow diagram

Answer

Lead time

Question 11

A team is new to Agile and wants to implement a framework that emphasizes iterative development, time-boxed iterations, and a prioritized backlog. Which framework should they adopt?

Accepted Answer

Scrum. Scrum is the correct framework because it explicitly prescribes time-boxed iterations (sprints), a prioritized backlog (Product Backlog), and iterative development through defined events like Sprint Planning, Daily Scrum, Sprint Review, and Sprint Retrospective. This aligns directly with the team's requirements for a structured Agile framework that enforces these core practices.

Answer

Kanban

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Lean

Answer

Extreme Programming (XP)

Question 12

A project manager notices that the team is frequently redoing work because requirements were unclear. Which process group interaction would help address this issue?

Accepted Answer

Iterative interactions between Planning and Executing. Iterative interactions between the Planning and Executing process groups allow for continuous feedback and refinement of requirements, reducing the need for rework. Option A is incorrect because a direct progression from Initiating to Closing skips the iterative cycles needed for requirement clarity. Option B is incorrect because sequential handoffs from Executing to Closing do not address issues that arise during planning. Option C is incorrect because continuous monitoring between Initiating and Planning does not cover the execution phase where rework occurs.

Answer

Direct progression from Initiating to Closing

Answer

Sequential handoffs from Executing to Closing

Answer

Continuous monitoring between Initiating and Planning

Question 13

Which TWO of the following are outputs of the Plan Stakeholder Engagement process?

Accepted Answer

Stakeholder engagement plan. The Plan Stakeholder Engagement process produces the stakeholder engagement plan (C), which documents the strategies, approaches, and actions needed to promote productive involvement of stakeholders throughout the project life cycle. It also generates project management plan updates (E), because the stakeholder engagement plan is a subsidiary component of the project management plan and its creation or revision requires updating that parent document. The stakeholder register (A) is an input to this process, created earlier in Identify Stakeholders, not an output. Stakeholder analysis (B) is a data analysis technique used within the process, not a deliverable. The issue log (D) is an output of Manage Stakeholder Engagement (or Direct and Manage Project Work), not Plan Stakeholder Engagement.

Answer

Stakeholder register

Answer

Stakeholder analysis

Answer

Issue log

Question 14

Which THREE roles are defined in the Scrum Guide? (Select THREE)

Accepted Answer

Scrum Master. The Scrum Guide defines exactly three roles (accountabilities): the Scrum Master (B), who ensures Scrum is understood and enacted and serves the team and organization; the Product Owner (C), who maximizes product value and manages the Product Backlog; and the Development Team (D), the self-organizing, cross-functional group that delivers the potentially releasable Increment each Sprint. Options A and E are not Scrum roles: 'Customer' is a generic stakeholder term not defined in the Scrum Guide, and 'Project Manager' is a traditional project-management role that Scrum deliberately omits, distributing its responsibilities among the three defined accountabilities.

Answer

Customer

Answer

Project Manager

Question 15

A project has a cost baseline of $100,000. At the end of month 2, the planned value is $30,000, and the actual cost is $40,000. If the earned value is $25,000, what is the cost variance?

Accepted Answer

-$15,000. Cost Variance (CV) is calculated as Earned Value (EV) minus Actual Cost (AC). Here EV = $25,000 and AC = $40,000, so CV = 25,000 − 40,000 = −$15,000. A negative CV indicates the project is over budget at this point in time.

Answer

$15,000

Answer

-$10,000

Answer

$10,000