PK0-005 Project Management Concepts Practice Test 7 — 15 Questions

Question 1

Which of the following BEST defines a project?

Accepted Answer

A temporary endeavor with a defined scope, schedule, cost, and quality objectives.. A project is a temporary endeavor with a defined beginning and end, undertaken to create a unique product, service, or result. It is not ongoing operations (option B) or a program (option C), and while it has constraints, the definition is temporary and unique.

Answer

A set of ongoing, repetitive operations to sustain the business.

Answer

A collection of projects and programs aligned to strategic objectives.

Answer

A group of related projects managed in a coordinated way.

Question 2

A project manager is assigned to a new software development project. The requirements are well understood and unlikely to change. The project team is collocated and has experience with similar projects. Which life cycle approach is MOST appropriate for this project?

Accepted Answer

Predictive (waterfall). Predictive (waterfall) is best when requirements are stable, the team is experienced, and the work is well understood. Agile is for evolving requirements; hybrid would be overkill; iterative is not as structured as predictive for stable requirements.

Answer

Agile

Answer

Hybrid

Answer

Iterative

Question 3

In a matrix organization, a project manager is struggling to get resources assigned to project tasks because the functional managers prioritize operational work. Which type of matrix organization is MOST likely in place?

Accepted Answer

Weak matrix. In a weak matrix, the project manager has limited authority and resources are controlled by functional managers. Strong matrix gives PM more authority; balanced is in between; functional is not a matrix.

Answer

Strong matrix

Answer

Balanced matrix

Answer

Functional

Question 4

A project sponsor is reviewing a proposal for a new project. The expected cash flows are: Year 0: -$100,000; Year 1: $30,000; Year 2: $40,000; Year 3: $50,000. The discount rate is 10%. Which of the following is the Net Present Value (NPV) of the project?

Accepted Answer

-$2,103. NPV = -100,000 + 30,000/(1.10)^1 + 40,000/(1.10)^2 + 50,000/(1.10)^3 = -100,000 + 27,273 + 33,058 + 37,566 = -2,103. Negative NPV means the project is not profitable at 10% discount rate.

Answer

-$20,000

Answer

$20,000

Answer

$2,103

Question 5

During project execution, the project manager notices that the development team has been adding extra features that were not requested by the customer. Which of the following describes this behavior?

Accepted Answer

Gold plating. Gold plating is when the team adds extra features beyond requirements without approval. Scope creep is uncontrolled changes to scope; change control is the process to manage changes; value engineering improves value without extra cost.

Answer

Value engineering

Answer

Scope creep

Answer

Change control

Question 6

Which of the following is a key responsibility of the project sponsor?

Accepted Answer

Providing resources and removing obstacles. The project sponsor provides resources, champions the project, and resolves escalations. The PM plans and executes; the team does tasks; the steering committee provides governance.

Answer

Performing quality assurance

Answer

Developing the project schedule

Answer

Executing project tasks

Question 7

A project to build a new office is in the planning phase. The project manager wants to use a methodology that allows for flexibility in design while still having a clear upfront plan for the overall construction. Which approach is BEST?

Accepted Answer

Hybrid. Hybrid combines predictive for overall plan and agile for flexible parts. Predictive would be too rigid; agile lacks upfront plan; iterative may not suit construction.

Answer

Agile

Answer

Scrum

Answer

Predictive (waterfall)

Question 8

A project manager is evaluating two projects. Project A has an initial investment of $50,000 and expected annual returns of $15,000 for 5 years. Project B has an initial investment of $80,000 and expected annual returns of $22,000 for 5 years. Based on payback period, which project should be selected, and what is the payback period for that project?

Accepted Answer

Project A, 3.33 years. Project A payback = 50,000/15,000 = 3.33 years. Project B payback = 80,000/22,000 = 3.64 years. Shorter payback is better, so Project A with 3.33 years.

Answer

Project A, 3.00 years

Answer

Project B, 3.64 years

Answer

Project B, 3.00 years

Question 9

Which project life cycle phase involves formally accepting the project deliverables and releasing resources?

Accepted Answer

Closing. Closing phase includes final acceptance, handover, and release of resources. Initiating starts the project; planning plans; executing does the work.

Answer

Planning

Answer

Executing

Answer

Initiating

Question 10

A project manager is working in an organization where the project team members report to both a functional manager and the project manager. The project manager has moderate authority and shares resource management with functional managers. This is an example of which organizational structure?

Accepted Answer

Balanced matrix. In a balanced matrix, authority is shared between PM and functional managers. Weak matrix gives PM less authority; strong matrix gives PM more; functional has no PM authority.

Answer

Functional

Answer

Projectized

Answer

Weak matrix

Question 11

A project has a cost performance index (CPI) of 1.2 and a schedule performance index (SPI) of 0.9. Which of the following statements is TRUE?

Accepted Answer

The project is under budget and behind schedule.. CPI > 1 means under budget; SPI < 1 means behind schedule. Over budget would be CPI < 1; ahead of schedule would be SPI > 1.

Answer

The project is over budget and ahead of schedule.

Answer

The project is over budget and behind schedule.

Answer

The project is under budget and ahead of schedule.

Question 12

A company is implementing a new HR system. The project manager wants to ensure that all requirements are gathered up front and the scope is fixed. Which project management methodology is MOST appropriate?

Accepted Answer

Predictive (waterfall). Predictive/waterfall works well when requirements are clear and scope is fixed from the start. Agile is for changing requirements; hybrid is a mix; Kanban is for flow.

Answer

Hybrid

Answer

Kanban

Answer

Agile

Question 13

A project manager is planning a marketing campaign for a new product launch. The campaign has a tight budget and strict deadline. During execution, the marketing team proposes adding a social media component that was not in the original scope. The project manager is concerned about scope creep. Which TWO actions should the project manager take to manage this situation?

Accepted Answer

Submit a change request to the change control board.. The correct actions are to assess the impact on cost and schedule and submit a change request. Ignoring or rejecting without analysis is not appropriate; adding it anyway is scope creep.

Answer

Add the social media component immediately to improve the campaign.

Answer

Refuse the request without any analysis.

Answer

Tell the team to proceed and report it later.

Question 14

A senior manager is comparing two projects for selection. The manager wants to use a method that considers the time value of money. Which TWO project selection methods incorporate the time value of money?

Accepted Answer

Internal rate of return (IRR). NPV and IRR both consider the time value of money. Payback period does not; ROI and cost-benefit analysis typically do not discount future cash flows.

Answer

Payback period

Answer

Return on investment (ROI)

Answer

Cost-benefit analysis

Question 15

A project to develop a mobile app is in the executing phase. The project manager uses a Kanban board to track tasks. The team is self-organizing and works in short iterations. The customer is actively involved and provides feedback frequently. Which THREE statements are true about this project?

Accepted Answer

The project uses an agile methodology.. Agile approach typically has self-organizing teams, frequent customer feedback, and iterative delivery. Detailed upfront planning is predictive; fixed scope is predictive; PM as servant leader is agile.

Answer

Detailed requirements were defined upfront.

Answer

The project manager has a command-and-control style.