PK0-005 Project Management Concepts Practice Test 2 — 15 Questions

Question 1

A company is undertaking a one-time initiative to develop a new mobile application with a defined budget, schedule, and scope. Which term best describes this initiative?

Accepted Answer

Project. A project is a temporary endeavor with a defined beginning and end, specific scope, budget, and schedule. A program is a group of related projects, and a portfolio is a collection of projects or programs aligned to strategic objectives.

Answer

Operation

Answer

Portfolio

Answer

Program

Question 2

A project manager is leading a team in an organization where team members are assigned to multiple projects and report to both a functional manager and the project manager. The project manager has moderate authority over the team. Which organizational structure does this describe?

Accepted Answer

Balanced matrix. In a matrix structure, resources are shared between functional managers and project managers. A balanced matrix gives the project manager moderate authority, while weak matrix gives more authority to the functional manager, and strong matrix gives more to the project manager.

Answer

Functional

Answer

Strong matrix

Answer

Projectized

Question 3

During project execution, a key stakeholder requests additional features that were not originally approved. The project manager is concerned about scope creep. Which type of project constraint is most directly impacted by scope creep?

Accepted Answer

Scope. Scope creep refers to uncontrolled changes or continuous growth in a project's scope. This directly impacts the scope constraint, and typically affects cost and schedule as well. However, scope is the primary constraint impacted.

Answer

Quality

Answer

Schedule

Answer

Cost

Question 4

A project has been completed, and the project manager is conducting a lessons learned session and archiving project documents. Which project life cycle phase is being performed?

Accepted Answer

Closing. The closing phase involves formal acceptance of deliverables, lessons learned, releasing resources, and archiving documents.

Answer

Initiating

Answer

Planning

Answer

Executing

Question 5

A software development team uses short, time-boxed iterations, daily stand-up meetings, and a prioritized backlog. Requirements are expected to evolve throughout the project. Which project management methodology is being used?

Accepted Answer

Agile. Agile methodology uses iterative development, time-boxed sprints, daily stand-ups, and adaptive planning. Scrum is a common agile framework with these characteristics.

Answer

Predictive

Answer

Hybrid

Answer

Waterfall

Question 6

A project manager is evaluating two project proposals. Proposal A has an NPV of $50,000 and a payback period of 2 years. Proposal B has an NPV of $30,000 and a payback period of 1.5 years. Which proposal is more financially beneficial based on NPV?

Accepted Answer

Proposal A because it has a higher NPV. Net Present Value (NPV) is the sum of present values of future cash flows. A higher NPV indicates greater profitability. Payback period is secondary.

Answer

Proposal B because it has a shorter payback period

Answer

Cannot be determined from the information given

Answer

Both are equally beneficial

Question 7

A project sponsor is responsible for providing resources and championing the project. Which of the following is also a primary responsibility of the project sponsor?

Accepted Answer

Resolving conflicts that are escalated beyond the project manager's authority. The project sponsor provides executive support, secures funding, removes obstacles, and is ultimately accountable for project success. They often help resolve issues escalated by the project manager.

Answer

Performing quality control inspections

Answer

Attending daily stand-up meetings

Answer

Creating the project schedule

Question 8

An organization has multiple projects that are not directly related but are all aimed at achieving the company's strategic goal of expanding into new markets. Which term best describes this collection?

Accepted Answer

Portfolio. A portfolio is a collection of projects, programs, and operational work managed as a group to achieve strategic objectives. It may contain unrelated initiatives.

Answer

Operation

Answer

Project

Answer

Program

Question 9

A project team is adding extra features to a deliverable that were not requested by the customer, in an effort to improve the product. This practice is known as:

Accepted Answer

Gold plating. Gold plating is when the project team adds extra features beyond the agreed requirements, often without approval. It can lead to increased cost and schedule overruns.

Answer

Benchmarking

Answer

Value engineering

Answer

Scope creep

Question 10

A company is considering a project with an initial investment of $100,000 and expected annual cash inflows of $30,000 for 5 years. The discount rate is 10%. What is the approximate Net Present Value (NPV)? (Present value of annuity factor for 5 years at 10% is 3.791)

Accepted Answer

$13,730. NPV = Present value of inflows - Initial investment. PV of inflows = $30,000 * 3.791 = $113,730. NPV = $113,730 - $100,000 = $13,730.

Answer

$50,000

Answer

-$13,730

Answer

$150,000

Question 11

In which type of organizational structure does the project manager have the least authority?

Accepted Answer

Functional. In a functional structure, team members report to functional managers who control resources. Project managers have limited or no authority.

Answer

Projectized

Answer

Balanced matrix

Answer

Strong matrix

Question 12

A project to build a website is expected to take 6 months with a fixed budget. During planning, the team determines that the requirements are well-understood and unlikely to change. Which methodology is most appropriate?

Accepted Answer

Predictive. Predictive (waterfall) methodology works best when requirements are clear and stable. It uses sequential phases and fixed scope.

Answer

Kanban

Answer

Agile

Answer

Scrum

Question 13

Which TWO of the following are primary responsibilities of the project manager? (Select two.)

Accepted Answer

Communicating project status to stakeholders. The project manager is responsible for planning, executing, monitoring, controlling, and closing projects. Communicating project status and managing the project team are core duties.

Answer

Providing project funding

Answer

Defining the company's strategic goals

Answer

Resolving escalated issues above the PM's authority

Question 14

A project is falling behind schedule. The project manager considers crashing or fast-tracking. Which THREE statements about these techniques are correct? (Select three.)

Accepted Answer

Both techniques are used to compress the schedule.. Crashing adds resources to critical path activities, which increases cost. Fast-tracking performs activities in parallel, which increases risk. Both are schedule compression techniques.

Answer

Crashing focuses on non-critical path activities.

Answer

Fast-tracking reduces risk.

Question 15

Which TWO of the following are examples of gold plating? (Select two.)

Accepted Answer

Including an additional reporting module that was not specified. Gold plating is adding extra features beyond requirements. It can be well-intentioned but adds unnecessary scope.

Answer

Adding a feature the customer requested after scope approval

Answer

Removing a feature to reduce cost

Answer

Correcting a defect found during testing