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

Question 1

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

Question 2

A project manager wants to ensure that all project documents are properly managed and approved. Which process group focuses on controlling changes to project documents?

Accepted Answer

Monitoring and Controlling. The Monitoring and Controlling process group includes Perform Integrated Change Control, which is responsible for reviewing, approving, and managing changes to project documents, deliverables, and the project management plan. This is where document version control and approval workflows are governed. Since the question asks about controlling changes to documents, Monitoring and Controlling is the correct process group.

Answer

Initiating

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Planning

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Executing

Question 3

A project is being executed in a highly regulated industry. The quality management plan requires extensive documentation. During a quality audit, the auditor finds that some test results are missing. What is the MOST appropriate action for the project manager?

Accepted Answer

Log the issue in the issue log and develop a corrective action. The missing test results represent a nonconformance with the quality management plan, which is a project issue that must be documented and addressed through the Manage Quality process. The correct action is to log the issue in the issue log and develop a corrective action to bring performance back in line with the plan. This follows the PMBOK® Guide's recommended flow: identify the problem, document it, and then determine the appropriate response. Simply repeating tests or updating the plan without addressing the root cause would not properly resolve the nonconformance.

Answer

Issue a change request to update the quality management plan

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Request that the team repeat the tests immediately

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Update the lessons learned register

Question 4

Which TWO of the following are generally true about projects versus operations? (Choose two)

Accepted Answer

Operations produce the same product or service repeatedly. Option B is correct because operations are ongoing, repetitive activities that continuously produce the same product or service, such as manufacturing or IT service delivery, which is a defining characteristic distinguishing them from projects. Option E is correct because projects are temporary endeavors with a defined start and end date, undertaken to create a unique product, service, or result, which is the core distinction from operations. Option A is incorrect because it describes operations, not projects—projects are temporary and unique, not ongoing and repetitive. Option C is incorrect because sustaining the business is the role of operations, whereas projects drive change and create unique deliverables. Option D is incorrect because it reverses the definitions: operations are ongoing and repetitive, while projects are temporary and unique.

Answer

Projects are ongoing and repetitive

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Projects are focused on sustaining the business

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Operations are temporary and unique

Question 5

Which THREE of the following are recognized process groups in the PMBOK Guide? (Choose three)

Accepted Answer

Executing. The PMBOK Guide defines exactly five Process Groups that organize the project management processes: Initiating, Planning, Executing, Monitoring and Controlling, and Closing. Option E (Initiating) is correct because it is the Process Group that authorizes the project or phase and defines its high-level scope and stakeholders. Option D (Planning) is correct because it establishes the project scope, objectives, and the course of action required to attain them. Option C (Executing) is correct because it is the Process Group where the work defined in the project management plan is carried out to satisfy project specifications. Options A (Reviewing) and B (Analyzing) are not recognized PMBOK Process Groups; reviewing and analyzing are activities that occur within Monitoring and Controlling and other processes, but they are not standalone Process Groups.

Answer

Reviewing

Answer

Analyzing

Question 6

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

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It guarantees project success

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It eliminates all project risks

Question 7

During project execution, a key stakeholder requests a new feature that was not included in the approved scope. What should the project manager do first?

Accepted Answer

Perform a change impact analysis. When a stakeholder requests a change to approved scope, the project manager should first perform a change impact analysis to assess the effect on scope, schedule, cost, quality, and risk. This analysis informs the change control process and provides the Change Control Board (CCB) or sponsor with the necessary information to make a decision. It is the first step before escalation or approval.

Answer

Escalate to the project sponsor for decision

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Inform the stakeholder that the scope is frozen

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Add the feature to the next iteration

Question 8

A project manager is assigned to a cross-functional initiative in a matrix organization. The team members report to both the project manager and their functional managers. What is the primary challenge the project manager would face?

Accepted Answer

Balancing resource allocation between project and functional work. In a matrix organization, team members have dual reporting lines, leading to competing priorities. Option A is wrong because budget authority varies. Option B is wrong because communication is not necessarily slower. Option D is wrong because resource availability depends on functional managers.

Answer

Difficulty in obtaining project sponsor approval

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Slow communication with stakeholders

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Lack of budget control

Question 9

A software development project is facing high uncertainty in requirements. The team is experienced and prefers frequent feedback. Which project life cycle approach is most appropriate?

Accepted Answer

Adaptive (agile) life cycle. An adaptive (agile) life cycle is designed for environments with high uncertainty and evolving requirements, delivering value through short iterations with frequent stakeholder feedback. Because the team is experienced and prefers frequent feedback, agile approaches like Scrum or Kanban fit best — requirements are refined continuously rather than baselined upfront. This aligns with PMBOK's guidance that adaptive life cycles are chosen when change is expected and rapid delivery of value is prioritized.

Answer

Incremental life cycle

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Iterative life cycle

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Predictive life cycle

Question 10

Which document formally authorizes the project and provides the project manager with authority to apply organizational resources?

Accepted Answer

Project charter. The project charter is the document that formally authorizes the existence of a project and gives the project manager the authority to apply organizational resources to project activities. It is typically issued by the project sponsor or initiator and serves as the foundation for the project management plan. Without a charter, the project manager lacks the formal power to assign resources and execute the project.

Answer

Business case

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Project management plan

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Stakeholder register

Question 11

A project is behind schedule and over budget. The sponsor asks the project manager to reduce costs without affecting the end date. Which constraint should the project manager consider adjusting?

Accepted Answer

Scope. The triple constraint (scope, time, cost) means you cannot change one without affecting the others. Since the sponsor explicitly wants to reduce costs without moving the end date, time is fixed and cost must decrease — the only remaining lever is scope. Reducing scope (descoping features or deliverables) lowers the work required, which in turn lowers cost while preserving the schedule.

Answer

Quality

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Time

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Resources

Question 12

Which of the following best describes a project versus ongoing operations?

Accepted Answer

Projects are temporary; operations are ongoing. Projects are temporary endeavors with a defined start and end, undertaken to create a unique product, service, or result. Operations are ongoing and repetitive, sustaining the business. This distinction is fundamental in project management and is exactly what option D states.

Answer

Projects have ongoing outputs; operations have defined deliverables

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Projects are repetitive; operations are unique

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Projects focus on profit; operations focus on value

Question 13

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

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Sequential handoffs from Executing to Closing

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Continuous monitoring between Initiating and Planning

Question 14

Which TWO are outputs of the Initiating process group?

Accepted Answer

Stakeholder register. The Initiating process group produces the project charter (D) via the Develop Project Charter process, which formally authorizes the project and names the project manager; it is the key output that launches the project. It also produces the stakeholder register (C) via the Identify Stakeholders process, which records stakeholder identification, assessment, and classification information. The project scope statement (A) is an output of the Planning process group (Define Scope), not Initiating. The work breakdown structure (B) is created in Planning (Create WBS). The risk register (E) is also a Planning output (Identify Risks).

Answer

Project scope statement

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Work breakdown structure

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Risk register

Question 15

Which THREE are common project constraints that must be balanced?

Accepted Answer

Time. The three common project constraints are time (option C), cost (option D), and scope (option E), collectively known as the triple constraint. Risk (option A) is an uncertainty factor, not a constraint, and quality (option B) is often considered an outcome or a constraint that is balanced within the triple constraint, but it is not one of the three primary constraints.

Answer

Risk

Answer

Quality