CAPM Project Management Fundamentals and Core Concepts Practice Test 7 — 15 Questions

Question 1

A project manager is assigned to a project in a matrix organization. Who typically has authority over resource assignment and prioritization?

Accepted Answer

Functional manager. In a matrix organization, functional managers have authority over resource assignment and prioritization, as they control the personnel and their availability. The project manager coordinates the project but does not directly manage resources. Option A is correct. Option B (project sponsor) provides funding and support but not direct resource authority. Option C (project manager) may request resources but does not have authority over them. Option D (customer) defines requirements but not resource allocation.

Answer

Project sponsor

Answer

Project manager

Answer

Customer

Question 2

A project is behind schedule. Which schedule compression technique involves adding additional resources to critical path activities?

Accepted Answer

Crashing. Crashing is a schedule compression technique that involves adding additional resources to critical path activities to reduce project duration. Option D is correct. Resource leveling (A) adjusts start and finish dates based on resource constraints. Monte Carlo simulation (B) is a risk analysis technique. Rolling wave planning (C) is a progressive elaboration technique.

Answer

Resource leveling

Answer

Monte Carlo simulation

Answer

Rolling wave planning

Question 3

During project planning, the team identifies that a key component must be custom-built by a vendor with a long lead time. The project manager wants to avoid the risk of the vendor failing to deliver. Which risk response strategy is most appropriate?

Accepted Answer

Transfer. Transfer is the most appropriate risk response strategy because it shifts the risk of vendor non-delivery to a third party (the vendor) through contracts, warranties, or insurance. Option B (Transfer) correctly addresses the risk by involving the vendor contractually. Option A (Accept) would involve acknowledging the risk without proactive action, which is not ideal when a specific vendor is critical. Option C (Avoid) would mean changing the project plan to eliminate the risk entirely, such as using a different component or building in-house, but that may not be feasible. Option D (Mitigate) would involve reducing the probability or impact of the risk, but transferring the risk through a contract is more direct and effective in this scenario.

Answer

Accept

Answer

Avoid

Answer

Mitigate

Question 4

Which THREE are techniques used for estimating activity durations?

Accepted Answer

Three-point estimating. The correct techniques for estimating activity durations are three-point estimating (A), parametric estimating (B), and analogous estimating (E). Three-point estimating uses optimistic, pessimistic, and most likely estimates. Parametric estimating uses a statistical relationship between historical data and other variables. Analogous estimating uses values from previous similar projects. Reserve analysis (C) is used for contingency reserves, not for estimating durations. Monte Carlo simulation (D) is a risk analysis technique.

Answer

Reserve analysis

Answer

Monte Carlo simulation

Question 5

Which THREE are components of the project management plan?

Accepted Answer

Cost baseline. The cost baseline (B), scope baseline (D), and schedule baseline (E) are components of the project management plan. The risk register (A) and stakeholder register (C) are project documents, not part of the plan.

Answer

Risk register

Answer

Stakeholder register

Question 6

Refer to the exhibit. A project administrator applies an organizational policy that requires a project charter signed by the sponsor and the functional manager before project work can commence. A project manager has not yet obtained these signatures. What is the effect on the project team's ability to start work?

Accepted Answer

The team cannot start work until both signatures are obtained.. The project charter is the document that formally authorizes the project and provides the project manager with authority. According to the policy, a signed charter with both approvals is required before work can commence. Without these signatures, the team cannot start work. Option C correctly describes this effect.

Answer

The team can start work as long as the sponsor has verbally approved.

Answer

The team can start work because the functional manager's approval is optional.

Answer

The team cannot start work regardless of dual approval; other conditions must also be met.

Question 7

A project manager is assigned a project that has a very low tolerance for scope changes. Which development approach is most appropriate?

Accepted Answer

Predictive. A predictive (waterfall) approach is best when scope changes are minimal and requirements are well-understood. Option B is correct. Incremental (A) delivers portions of the product, which may allow for changes. Adaptive (C) methods embrace change. Iterative (D) approaches also allow for changes through feedback.

Answer

Incremental

Answer

Adaptive

Answer

Iterative

Question 8

In project procurement management, what is the primary purpose of the procurement statement of work (SOW)?

Accepted Answer

To describe the work to be performed by the seller. The procurement statement of work (SOW) describes the work to be performed by the seller in sufficient detail. Option C is correct. Option A (manage vendor relationship) occurs after contract award and is part of contract administration. Option B (evaluate vendor proposals) uses the SOW as an input, but the SOW itself is not for evaluation. Option D (define contract terms and conditions) is the purpose of the contract, not the SOW.

Answer

To manage the vendor relationship after contract award

Answer

To evaluate vendor proposals

Answer

To define the contract terms and conditions

Question 9

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 10

A project sponsor asks the project manager to report on budget performance. Which metric best indicates whether the project is under or over budget?

Accepted Answer

Cost Performance Index (CPI). Cost Performance Index (CPI) is a measure of cost efficiency relative to the work performed; CPI > 1 indicates under budget, CPI < 1 indicates over budget. It is a relative metric that allows comparison across projects or time periods, making it the best indicator for budget performance. Cost Variance (CV) is an absolute dollar amount and can be misleading when comparing projects of different sizes. Schedule Performance Index (SPI) and Schedule Variance (SV) relate to schedule, not cost.

Answer

Cost Variance (CV)

Answer

Schedule Variance (SV)

Answer

Schedule Performance Index (SPI)

Question 11

A medium-sized software company is developing a new mobile application. The project manager, Alex, has a team of 10 developers and 2 testers. The organization uses a hybrid approach combining waterfall planning for the overall phases and agile for individual iterations. In the first iteration, the team committed to completing 20 user stories. During the sprint, two developers left the company, and the remaining team members had to pick up their tasks. The product owner is concerned about the delivery date. Alex needs to communicate the impact to stakeholders. What should Alex do first?

Accepted Answer

Re-estimate the remaining user stories using the new team capacity to determine the impact on the schedule.. Before communicating delays or taking corrective actions, Alex must first understand the impact of the reduced capacity on the iteration and overall project. Re-estimating the remaining stories based on the new team capacity provides a data-driven basis for revising the schedule and communicating realistic expectations. Option A is correct. Option B (immediately informing of delay) is premature without analysis. Options C and D are reactive and may not be feasible or effective.

Answer

Immediately inform the project sponsor that the release date will be delayed.

Answer

Ask the remaining team members to work overtime to make up for the lost capacity.

Answer

Add more developers from another project to the team.

Question 12

A construction project manager, Maria, is overseeing the building of a bridge. The project has a fixed budget and schedule. During the execution phase, the quality audit reveals that the concrete used does not meet the specified strength requirements. The concrete supplier insists that the concrete meets industry standards. However, the project specifications require a higher strength grade. Maria must decide on corrective action. What should she do?

Accepted Answer

Stop work and request the supplier to provide concrete that meets the project specifications.. The project specifications are the authoritative requirements. Non-conforming material must be rejected to ensure safety and quality. Maria should stop work and require the supplier to provide concrete that meets the project specifications. Option D is correct. Option A (document and proceed) ignores the issue. Option B (revise specifications) is inappropriate as the specifications were established based on design requirements. Option C (accepting the concrete) violates specifications.

Answer

Document the situation in the issue log and proceed with construction.

Answer

Revise the project specifications to match the delivered concrete's strength.

Answer

Accept the concrete as is because it meets industry standards.

Question 13

In which project management process group is the project charter developed?

Accepted Answer

Initiating. The project charter is developed in the Initiating process group, which authorizes the project or phase. Option D (Initiating) is correct. Option A (Monitoring and Controlling) involves tracking progress. Option B (Planning) involves defining scope and plans. Option C (Executing) involves performing the work.

Answer

Monitoring and Controlling

Answer

Planning

Answer

Executing

Question 14

A project team is using a colocation (war room) technique. What is the primary benefit?

Accepted Answer

Improved communication and collaboration among team members. Colocation, also known as a war room, physically brings team members together to enhance communication and collaboration. This is the primary benefit as it reduces misunderstandings and fosters teamwork. Option C is correct. Option A (lower project costs) is not a direct benefit; colocation often increases costs due to travel or facility expenses. Option B (reduced project risk) is not the primary benefit; while improved communication may help identify risks earlier, it is secondary. Option D (faster decision making) is a positive outcome of improved communication but not the primary benefit.

Answer

Lower project costs

Answer

Reduced project risk

Answer

Faster decision making

Question 15

A project manager is evaluating two project proposals. Proposal A has a benefit-cost ratio (BCR) of 1.2 and a payback period of 3 years. Proposal B has a BCR of 1.5 and a payback period of 4 years. The organization has limited funds and wants to maximize return on investment. Which proposal should the project manager recommend?

Accepted Answer

Proposal B, because it has a higher benefit-cost ratio. Proposal B has a higher benefit-cost ratio (1.5 vs. 1.2), indicating a greater return per unit cost. The organization wants to maximize ROI, and BCR is a direct measure of profitability relative to cost. Payback period is secondary; a shorter payback does not necessarily mean higher ROI. Option A is incorrect because Proposal A has a lower BCR. Option B is incorrect because a shorter payback period does not ensure maximum ROI. Option C is incorrect because the proposals are not equal; Proposal B has a higher BCR and thus a better financial return.

Answer

Neither proposal; the organization should wait for better options

Answer

Proposal A, because it has a shorter payback period

Answer

Both proposals are equal; select based on non-financial criteria