CAPM Project Management Fundamentals and Core Concepts — 10 Questions

Question 1

Which of the following is a key output of the Plan Risk Management process?

Accepted Answer

Risk management plan.. The risk management plan is the primary output of the Plan Risk Management process. Option A (risk breakdown structure) is an output of the Identify Risks process. Option B (risk register) is an output of the Identify Risks process, not Plan Risk Management. Option C (risk response plan) is an output of the Plan Risk Responses process, not Plan Risk Management.

Answer

Risk breakdown structure.

Answer

Risk register.

Answer

Risk response plan.

Question 2

Which TWO of the following are benefits of using a project management plan? (Choose two)

Accepted Answer

It defines how the project will be executed, monitored, and controlled. Options B and D are correct. The project management plan defines how the project will be executed, monitored, and controlled, and provides a baseline for measuring performance. Option A is false because stakeholder communication remains essential and is not replaced by the plan. Option C is false because no plan can guarantee project success. Option E is false because risks cannot be eliminated; the plan helps manage but not eliminate risks.

Answer

It replaces the need for stakeholder communication

Answer

It guarantees project success

Answer

It eliminates all project risks

Question 3

Which TWO are benefits of creating a Work Breakdown Structure (WBS)?

Accepted Answer

Defines the total scope. The WBS defines the total scope (B) and provides a foundation for cost estimation (C). Option A (identifies risks) is a benefit of risk management activities. Option D (assigns resources) is done during activity resource estimation. Option E (shows dependencies) is achieved through a network diagram.

Answer

Identifies project risks

Answer

Assigns resources to activities

Answer

Shows dependencies between activities

Question 4

A project manager is reviewing the project charter and notices that the business case includes a cost-benefit analysis with a Net Present Value (NPV) of $50,000 and an Internal Rate of Return (IRR) of 12%. The company's required rate of return is 10%. What should the project manager conclude about this project?

Accepted Answer

The project is financially viable.. The project is financially viable because the NPV is positive ($50,000), indicating that the present value of expected cash inflows exceeds the present value of cash outflows. Additionally, the IRR of 12% exceeds the company's required rate of return (10%), meaning the project's expected return is greater than the cost of capital. Both metrics independently confirm financial feasibility.

Answer

The project's payback period is acceptable.

Answer

The project is expected to break even.

Answer

The project is not financially viable.

Question 5

During project execution, a key stakeholder requests a significant change that will increase project scope. The project manager performs an impact analysis and determines that the change will delay the project by two weeks and increase costs by 10%. However, the change is critical for regulatory compliance. What should the project manager do first?

Accepted Answer

Submit the change request to the change control board (CCB).. The correct first step is to submit the change request to the change control board (CCB) because, in formal project management, any change that impacts scope, schedule, or cost must go through the integrated change control process. Even though the change is critical for regulatory compliance, the project manager cannot unilaterally approve or reject it; the CCB has the authority to evaluate the impact analysis and make the final decision.

Answer

Approve the change because it is critical for compliance.

Answer

Reject the change because it will delay the project and increase costs.

Answer

Implement the change and request approval after.

Question 6

A project manager is estimating the duration of an activity. The optimistic estimate is 4 days, the pessimistic is 12 days, and the most likely is 6 days. Using the PERT three-point estimate, what is the expected duration?

Accepted Answer

6.67 days. The PERT three-point estimate formula is (Optimistic + 4×Most Likely + Pessimistic) / 6. Plugging in the values: (4 + 4×6 + 12) / 6 = (4 + 24 + 12) / 6 = 40 / 6 = 6.67 days. This weighted average gives more influence to the most likely estimate, providing a realistic expected duration.

Answer

12 days

Answer

7.33 days

Answer

6 days

Question 7

A project team is working on a software development project. The project manager notices that the team is spending too much time on unplanned work, resulting in delays to the critical path. What technique should the project manager use to reduce unplanned work and improve focus?

Accepted Answer

Implement critical chain project management.. Critical chain project management (CCPM) is specifically designed to protect the critical path from disruptions like unplanned work by inserting buffers (e.g., feeding buffers, project buffer) and enforcing a 'relay race' work ethic. This technique reduces multitasking and focuses the team on completing tasks in priority order, directly addressing the root cause of delays from unplanned work.

Answer

Apply crashing to the critical path activities.

Answer

Perform resource leveling to smooth resource usage.

Answer

Use fast tracking to overlap activities.

Question 8

A project manager is assigned to a project that is in the planning phase. The sponsor asks the project manager to include a 10% contingency reserve in the budget. The project manager knows that the project has a high degree of uncertainty. What should the project manager do?

Accepted Answer

Perform a quantitative risk analysis to determine appropriate contingency reserves.. The project manager should perform a quantitative risk analysis to determine the appropriate contingency reserve based on the project's specific risk exposure, rather than relying on an arbitrary 10% figure. This aligns with the PMBOK Guide's guidance that contingency reserves should be derived from risk analysis, not sponsor preference, especially given the high degree of uncertainty.

Answer

Explain that contingency reserves are not allowed in the project budget.

Answer

Refuse the request because it is unethical.

Answer

Add the 10% contingency reserve as requested.

Question 9

Which TWO of the following are outputs of the Identify Stakeholders process?

Accepted Answer

Stakeholder register. Among the listed options, only the Stakeholder Register is an output of the Identify Stakeholders process. Stakeholder analysis is a tool and technique, not an output. Stakeholder Management Plan, Issue Log, and Stakeholder Engagement Plan are outputs of other processes, not Identify Stakeholders.

Answer

Stakeholder analysis

Answer

Stakeholder management plan

Answer

Issue log

Answer

Stakeholder engagement plan

Question 10

Which THREE of the following are types of dependencies that can exist between project activities?

Accepted Answer

Mandatory dependencies. Mandatory dependencies are legally or contractually required or inherent in the nature of the work. For example, in a construction project, you must complete the foundation before erecting the walls. These are often referred to as 'hard logic' and cannot be changed without altering the project scope or approach.

Answer

Resource dependencies

Answer

Internal dependencies