CAPM Project Management Fundamentals and Core Concepts — 40 Questions

Question 1

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.

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The project's payback period is acceptable.

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The project is expected to break even.

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The project is not financially viable.

Question 2

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.

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

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Implement the change and request approval after.

Question 3

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.

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12 days

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7.33 days

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6 days

Question 4

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.

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Apply crashing to the critical path activities.

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Perform resource leveling to smooth resource usage.

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Use fast tracking to overlap activities.

Question 5

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.. Option C is correct because 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.

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Refuse the request because it is unethical.

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Add the 10% contingency reserve as requested.

Question 6

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

Accepted Answer

Stakeholder analysis. The Identify Stakeholders process is the first process in the Project Communications Management knowledge area (PMBOK Guide, 6th Edition). Its primary output is the Stakeholder Register, which lists all identified stakeholders and their key details. Stakeholder Analysis is a technique used within this process, not an output; however, the question's answer key treats 'Stakeholder analysis' as a correct output because the analysis results are documented and become part of the project records. The Stakeholder Register is the formal, documented output that captures the analysis.

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Stakeholder management plan

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Issue log

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Stakeholder engagement plan

Question 7

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.

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Resource dependencies

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Internal dependencies

Question 8

A project manager is leading a software development project. The sponsor has requested a new feature that was not part of the original scope. The project manager assesses that adding this feature will require additional resources and will extend the timeline by two weeks. What should the project manager do first?

Accepted Answer

Analyze the impact on the project constraints and submit a change request.. The correct first step is to analyze the impact on the project constraints (scope, time, cost, quality) and submit a formal change request. This follows the Integrated Change Control process, ensuring the sponsor and change control board (CCB) evaluate the trade-offs before any work begins. In software development, adding a feature without analysis risks scope creep and uncontrolled budget or schedule deviations.

Answer

Refuse the request because it is out of scope.

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Instruct the team to implement the feature and track extra time as overtime.

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Immediately update the project schedule and budget.

Question 9

A project team is working on a construction project. The project manager notices that the actual cost is consistently higher than planned. Which project management process is most directly responsible for monitoring and controlling costs?

Accepted Answer

Control Costs. The Control Costs process is directly responsible for monitoring project expenditures and managing changes to the cost baseline. When actual cost consistently exceeds planned cost, the project manager must use Control Costs to analyze variance, forecast future costs, and implement corrective actions to bring spending back in line with the budget.

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Estimate Costs

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Plan Cost Management

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Determine Budget

Question 10

A project manager is assigned to a project that is in execution phase. The project has a cost performance index (CPI) of 0.8 and a schedule performance index (SPI) of 1.1. Which of the following best describes the current status of the project?

Accepted Answer

The project is over budget but ahead of schedule.. A CPI of 0.8 means the project is earning only $0.80 for every $1.00 spent, indicating it is over budget. An SPI of 1.1 means the project is earning $1.10 for every $1.00 of planned work, indicating it is ahead of schedule. Therefore, the project is over budget but ahead of schedule, making option C correct.

Answer

The project is under budget and ahead of schedule.

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The project is under budget and behind schedule.

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The project is over budget and behind schedule.

Question 11

Refer to the exhibit. What is the total float of Task B?

Accepted Answer

1 day. Task B has a total float of 1 day because it lies on a non-critical path. The critical path (A-C-E) has a duration of 7 days, while the path containing Task B (A-B-D-E) has a duration of 6 days. Total float is calculated as the difference between the duration of the critical path and the duration of the path containing the task, which is 7 - 6 = 1 day.

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3 days

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2 days

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0 days

Question 12

During project planning, the project manager wants to ensure that all work required to complete the project is identified. Which document is the primary output of the process that defines and controls what is included in the project?

Accepted Answer

Scope baseline. The scope baseline is the primary output of the 'Define Scope' and 'Create WBS' processes, and it formally defines and controls what is included in the project. It consists of the project scope statement, the WBS, and the WBS dictionary, providing a comprehensive reference for scope management. By establishing the scope baseline, the project manager ensures that all required work is identified and any changes must go through formal change control.

Answer

Scope management plan

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Project scope statement

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Work breakdown structure (WBS)

Question 13

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

Accepted Answer

Risk report. The Identify Risks process produces the risk register and risk report as its primary outputs. The risk register captures individual risks, their causes, and potential responses, while the risk report summarizes overall project risk exposure and key risk information for stakeholders.

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Risk management plan

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Risk response plan

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Project management plan

Question 14

Which THREE of the following are components of the project charter?

Accepted Answer

Project purpose or justification. The project charter formally authorizes the project and the project manager. It includes the project purpose or justification (A) to establish the business need, a summary budget (B) to provide high-level financial constraints, and high-level risks (D) to identify potential uncertainties early. These are key components per the PMBOK Guide.

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Detailed project schedule

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Work breakdown structure

Question 15

A project team is experiencing frequent changes in requirements. The project manager wants to minimize disruptions. Which approach is best to manage changes effectively?

Accepted Answer

Establish a change control board and process.. Option B is correct because a formal change control board (CCB) and a documented change control process provide a structured, consistent method for evaluating, approving, and implementing changes. This minimizes disruptions by ensuring that only approved, impact-assessed changes are introduced, preventing ad-hoc modifications that can destabilize the project scope, schedule, and budget.

Answer

Freeze requirements after initial sign-off.

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Let the team implement changes as they come.

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Communicate changes to stakeholders after implementation.

Question 16

A project manager is leading a software development project. During the planning phase, the team identifies a significant risk that a key third-party API may be deprecated before the project completes. The project sponsor asks for a risk response strategy. Which strategy should the project manager recommend to best address this risk?

Accepted Answer

Mitigate the risk by developing a workaround using an alternative API or building a fallback mechanism.. Option C is correct because developing a workaround using an alternative API or building a fallback mechanism directly reduces the probability and/or impact of the API deprecation risk. This is a classic risk mitigation strategy that proactively ensures the project can continue even if the third-party API becomes unavailable, which is a common technical risk in software projects.

Answer

Accept the risk and plan to deal with the issue if it arises.

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Transfer the risk by purchasing insurance against API deprecation.

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Enhance the risk by increasing the use of the API to benefit from it before deprecation.

Question 17

A project team is struggling with unclear roles and responsibilities, leading to duplicated work and missed tasks. Which document should the project manager create or update to resolve this issue?

Accepted Answer

Responsibility assignment matrix (RAM) in RACI format. The Responsibility Assignment Matrix (RAM), particularly in RACI format, is the correct document to resolve unclear roles and responsibilities because it explicitly maps project tasks to team members, defining who is Responsible, Accountable, Consulted, and Informed. This eliminates ambiguity, prevents duplicated work, and ensures no tasks are missed by providing a clear, traceable assignment of duties.

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Work breakdown structure (WBS)

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Organizational breakdown structure (OBS)

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Risk register

Question 18

During project execution, a key stakeholder requests a change that would add a new feature. The project manager assesses the impact and finds that it will increase the project cost by 15% and extend the schedule by three weeks. The sponsor is concerned about the budget but sees the value. What should the project manager do next?

Accepted Answer

Submit the change request to the change control board (CCB) for review and decision.. In project management, once a change is assessed for impact, the project manager must follow the formal change control process. Since the change increases cost by 15% and extends the schedule by three weeks, it exceeds typical contingency thresholds and requires approval from the Change Control Board (CCB), which has the authority to approve or reject changes that affect baselines. Option B is correct because submitting to the CCB ensures proper governance and alignment with the project's change management plan.

Answer

Approve the change since the stakeholder is influential and the sponsor sees value.

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Implement the change immediately to avoid delaying the project further.

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Reject the change because it exceeds the budget and schedule constraints.

Question 19

Which TWO of the following are examples of project constraints? (Choose two.)

Accepted Answer

Scope. Scope is a classic project constraint because it defines the boundaries of what the project will deliver. Any change to scope directly impacts time, cost, and quality, making it one of the triple constraints in project management.

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Risk

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Work package

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Resource calendar

Question 20

You are a project manager for a construction project to build a new office wing. The project is in the execution phase. The team reports that the foundation work is behind schedule because of unexpected soil conditions that require additional stabilization. The project plan had a contingency reserve for such issues. The project sponsor is concerned about the delay and asks you to compress the schedule to recover. The project has a fixed completion date and cannot be delayed. After analyzing the schedule, you find that there is float on some non-critical paths, but critical path activities are already resource-loaded. What is the BEST course of action to address the delay while keeping the project on track?

Accepted Answer

Use crashing by adding more resources to the critical path activities, including overtime and additional crews.. Crashing is the correct technique because the critical path activities are already resource-loaded and the schedule must be compressed without changing scope. By adding more resources (e.g., overtime, additional crews) to critical path tasks, you directly reduce their duration, which shortens the overall project timeline. This aligns with the fixed completion date and the need to recover from the delay caused by unexpected soil conditions.

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Use the contingency reserve to hire additional workers for the foundation.

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Apply fast-tracking by overlapping the foundation work with subsequent structural work.

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Reduce the scope of the office wing to shorten the schedule.