CCNA Pkp Pm Concepts Questions — Page 2 of 2

Multi-Selectmedium

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

Select 2 answers

A.Adding a feature the customer requested after scope approval

B.Including an additional reporting module that was not specified

C.Removing a feature to reduce cost

D.Using higher quality materials than specified to improve durability

E.Correcting a defect found during testing

AnswersB, D

Correct. Adding unspecified functionality is gold plating.

Why this answer

Gold plating is adding extra features beyond requirements. It can be well-intentioned but adds unnecessary scope.

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MCQhard

A project has a cost performance index (CPI) of 0.8 and a schedule performance index (SPI) of 1.1. What does this indicate about the project's performance?

A.Over budget and ahead of schedule

B.Over budget and behind schedule

C.Under budget and ahead of schedule

D.Under budget and behind schedule

AnswerA

CPI <1 over budget, SPI>1 ahead of schedule.

Why this answer

CPI < 1 means over budget; SPI > 1 means ahead of schedule.

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MCQmedium

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?

A.Predictive (waterfall)

B.Agile

C.Hybrid

D.Iterative

AnswerA

Correct. Predictive life cycle is suitable for stable requirements and well-understood work.

Why this answer

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.

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MCQmedium

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?

A.Predictive (waterfall)

B.Hybrid

C.Kanban

D.Agile

AnswerA

Correct. Predictive is best for fixed scope and stable requirements.

Why this answer

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.

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MCQmedium

A project is in the planning phase and the team is determining the sequence of activities. Which project life cycle phase follows planning?

A.Closing

B.Executing

C.Initiating

D.Monitoring and controlling

AnswerB

Executing comes after planning.

Why this answer

The typical project life cycle phases are initiating, planning, executing, monitoring and controlling, and closing. Executing follows planning.

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MCQmedium

A project has a Net Present Value (NPV) of -$5,000. What does this indicate?

A.The project is not financially viable

B.The project will generate a profit of $5,000

C.The project should be accepted because NPV is positive

D.The payback period is less than 5 years

AnswerA

A negative NPV suggests the project may not be worthwhile.

Why this answer

A negative NPV means the project's costs exceed its benefits, indicating it is not financially viable.

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MCQmedium

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?

A.Strong matrix

B.Balanced matrix

C.Functional

D.Weak matrix

AnswerD

Correct. In a weak matrix, the PM has limited authority and functional managers control resources.

Why this answer

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.

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MCQhard

A project manager is assigned to a project in a matrix organization where the functional managers have significant control over team members. The PM has limited authority. This describes which type of matrix?

A.Balanced matrix

B.Weak matrix

C.Strong matrix

D.Projectized

AnswerB

Functional manager has more authority.

Why this answer

In a weak matrix, the functional manager has more authority than the project manager.

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MCQmedium

During project execution, the project team completes a deliverable that exceeds the specified requirements by adding extra features without authorization. This is an example of which concept?

A.Gold plating

B.Scope creep

C.Value analysis

D.Progressive elaboration

AnswerA

Adding extra features beyond requirements is gold plating.

Why this answer

Gold plating is when the team adds extra features beyond what was required, which can increase cost and risk without customer approval.

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MCQmedium

Which project life cycle phase involves obtaining formal acceptance of the project deliverables and releasing project resources?

A.Executing

B.Closing

C.Planning

D.Monitoring and controlling

AnswerB

Closing includes final acceptance and release of resources.

Why this answer

Closing is the phase where deliverables are accepted, resources released, and project formally closed. Planning defines scope. Executing produces deliverables.

Monitoring and controlling tracks progress.

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MCQhard

A company is evaluating two projects. Project A has an NPV of $50,000 and a payback period of 3 years. Project B has an NPV of $40,000 and a payback period of 2 years. Which project should be selected based on NPV?

A.Neither project should be selected

B.Project B because it has a shorter payback period

C.Both projects are equally good

D.Project A because it has a higher NPV

AnswerD

A higher NPV indicates greater value.

Why this answer

NPV is a primary indicator of profitability. Higher NPV is better, regardless of payback period.

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MCQmedium

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?

A.Value engineering

B.Scope creep

C.Change control

D.Gold plating

AnswerD

Correct. Gold plating is adding extra features beyond the agreed requirements.

Why this answer

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.

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MCQmedium

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?

A.Balanced matrix

B.Functional

C.Projectized

D.Weak matrix

AnswerA

Correct. Balanced matrix shares authority equally.

Why this answer

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.

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MCQmedium

A project manager works in an organization where team members report to both a functional manager and a project manager. The project manager has moderate authority and shares resource control with the functional manager. Which type of organizational structure does this describe?

A.Functional

B.Projectized

C.Weak Matrix

D.Balanced Matrix

AnswerD

Correct. Balanced matrix gives the project manager moderate authority and shared resource control.

Why this answer

In a balanced matrix structure, the project manager has moderate authority and shares resources with functional managers.

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MCQhard

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?

A.-$20,000

B.$20,000

C.$2,103

D.-$2,103

AnswerD

Correct calculation gives approximately -$2,103.

Why this answer

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.

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MCQhard

A project sponsor is reviewing a project that has a Net Present Value (NPV) of -$15,000. What should the sponsor recommend?

A.Proceed with the project because NPV is negative

B.Reject the project because NPV is negative

C.Proceed if the IRR is positive

D.Reject only if the payback period is too long

AnswerB

Negative NPV means the project is not financially viable.

Why this answer

A negative NPV indicates the project is not expected to be profitable; it should be rejected. Positive NPV is profitable. IRR and payback period are different metrics.

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Multi-Selectmedium

A project manager is evaluating the financial viability of several proposed projects. The steering committee wants to select projects that maximize return over time. Which TWO financial metrics should the project manager use to compare long-term profitability? (Select TWO).

Select 2 answers

A.Net Present Value (NPV)

B.Payback Period

C.Return on Investment (ROI)

D.Internal Rate of Return (IRR)

E.Cost-Benefit Analysis

AnswersA, D

NPV calculates the present value of future cash flows; positive NPV indicates profitability.

Why this answer

Net Present Value (NPV) and Internal Rate of Return (IRR) are discounted cash flow methods that account for the time value of money and are used for long-term profitability comparisons.

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MCQeasy

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

A.Functional

B.Balanced matrix

C.Projectized

D.Strong matrix

AnswerA

In a functional structure, the PM has little to no authority.

Why this answer

In a functional organization, resources report to functional managers, and the project manager has limited authority.

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MCQhard

During project initiation, the project sponsor provides the project manager with a document that authorizes the project and assigns the project manager. This document also outlines high-level scope, budget, and timeline. Which document is this?

A.Project charter

B.Project management plan

C.Scope statement

D.Business case

AnswerA

The charter authorizes the project and the PM.

Why this answer

The project charter is the formal authorization document that gives the PM authority and outlines high-level constraints.

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MCQeasy

A project manager is managing a construction project. The scope is well-defined, but the customer is open to minor changes during execution. Which methodology is most suitable?

A.Hybrid

B.Predictive

C.Kanban

D.Agile

AnswerA

Hybrid combines predictive for planning and agile for flexibility.

Why this answer

Hybrid allows for some flexibility while maintaining a planned approach. Predictive would be too rigid, agile too flexible, and Kanban is an agile framework.

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Multi-Selecthard

A project is being planned in a matrix organization. The project manager needs to identify key roles and their responsibilities. Which THREE of the following are typical project roles? (Choose three.)

Select 3 answers

A.Project sponsor

B.Functional manager

C.Project team

D.Project manager

E.Stakeholder

AnswersA, C, D

The sponsor provides resources and support.

Why this answer

The project sponsor, project manager, and project team are key roles. Functional manager is a role in matrix organizations but not a project role per se; it's an organizational role. Stakeholder is anyone with interest, but not a specific role on the project team.

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MCQeasy

In which organizational structure does the project manager have the least authority over project resources?

A.Projectized

B.Functional

C.Balanced matrix

D.Strong matrix

AnswerB

PM has limited authority; resources are controlled by functional managers.

Why this answer

In a functional structure, resources belong to functional managers, and the PM has limited authority. In projectized, the PM has full authority. Matrix structures are in between.

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MCQmedium

During project execution, a key stakeholder requests a new feature that was not in the original scope. The project manager is concerned about the impact on the schedule and budget. This is an example of:

A.Scope creep

B.Risk management

C.Gold plating

D.Change control

AnswerA

An unauthorized addition to scope is scope creep.

Why this answer

Scope creep refers to uncontrolled changes to project scope. Gold plating is adding features without request. Risk is an uncertain event.

Change control is the process to manage changes.

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Multi-Selecthard

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

Select 3 answers

A.Both techniques are used to compress the schedule.

B.Crashing typically increases project cost.

C.Fast-tracking is performed without adding resources.

D.Crashing focuses on non-critical path activities.

E.Fast-tracking reduces risk.

AnswersA, B, C

Correct. Both are schedule compression methods.

Why this answer

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

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100

Multi-Selectmedium

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

Select 2 answers

A.Schedule

B.Stakeholder satisfaction

C.Team morale

D.Risk

E.Scope

AnswersA, E

Time is a constraint.

Why this answer

Scope, cost, and schedule are classic triple constraints. Quality is often added. Risk is not a constraint but an uncertainty.

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101

MCQhard

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?

A.Project A, 3.00 years

B.Project B, 3.64 years

C.Project B, 3.00 years

D.Project A, 3.33 years

AnswerD

Correct. Shorter payback period is preferred.

Why this answer

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.

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102

Multi-Selecteasy

A project manager is defining the roles and responsibilities for a project. Which TWO of the following are typical responsibilities of the project sponsor? (Select TWO).

Select 2 answers

A.Act as a champion for the project

B.Perform quality control inspections

C.Assign tasks to team members

D.Develop the project schedule

E.Provide financial resources and budget approval

AnswersA, E

Sponsor champions the project at executive level.

Why this answer

The sponsor provides resources and champions the project; the PM does planning and execution.

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103

MCQeasy

Which of the following best describes a program?

A.A process to select projects based on business value

B.A temporary endeavor with a defined start and end

C.A group of related projects managed in a coordinated way

D.A collection of projects and programs aligned to strategic objectives

AnswerC

This is the definition of a program.

Why this answer

A program is a group of related projects managed together to achieve benefits. A project is a single initiative. A portfolio is a collection of projects and programs aligned to strategy.

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104

MCQmedium

During a project, the team adds extra features to a deliverable because they believe it will increase customer satisfaction, even though the features were not specified in the requirements. This is an example of:

A.Gold plating

B.Scope creep

C.Risk response

D.Value engineering

AnswerA

Adding features beyond requirements is gold plating.

Why this answer

Gold plating is adding extra features beyond specified requirements. Scope creep is uncontrolled changes to scope, but gold plating is specifically adding extras without approval.

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105

MCQmedium

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?

A.Proposal B because it has a shorter payback period

B.Cannot be determined from the information given

C.Both are equally beneficial

D.Proposal A because it has a higher NPV

AnswerD

Correct. Higher NPV means more profitability.

Why this answer

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

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106

MCQeasy

A project manager is assigned to a new software development project with clearly defined requirements and minimal expected changes. Which project management methodology is most appropriate for this scenario?

A.Kanban

B.Agile

C.Hybrid

D.Predictive (Waterfall)

AnswerD

Correct. Predictive methodology works well with stable, well-defined requirements.

Why this answer

Predictive (waterfall) methodology is suitable when requirements are stable and well-defined, as it follows sequential phases with fixed scope.

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107

Multi-Selectmedium

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?

Select 2 answers

A.Submit a change request to the change control board.

B.Add the social media component immediately to improve the campaign.

C.Refuse the request without any analysis.

D.Assess the impact on the project cost and schedule before deciding.

E.Tell the team to proceed and report it later.

AnswersA, D

Correct. Formal change control process should be followed.

Why this answer

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.

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108

MCQmedium

A project team is developing a new software product. The product owner frequently changes priorities based on customer feedback. The team needs to adapt quickly and deliver value incrementally. Which project management methodology is most suitable?

A.Waterfall

B.Critical path method

C.Agile

D.Scrum

AnswerC

Agile embraces change and iterative delivery.

Why this answer

Agile methodologies are designed for evolving requirements and iterative delivery.

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109

MCQeasy

Which of the following best defines a project?

A.An ongoing operation to produce the same product repeatedly

B.A collection of related projects managed together to achieve strategic objectives

C.A temporary endeavor with a defined scope, schedule, cost, and quality objectives

D.A set of projects and programs aligned to business goals

AnswerC

This matches the standard definition of a project.

Why this answer

A project is a temporary endeavor with a defined beginning and end, undertaken to create a unique product, service, or result.

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110

MCQeasy

A collection of projects and programs managed together to achieve strategic objectives is known as a:

A.Operation

B.Project

C.Program

D.Portfolio

AnswerD

A portfolio aligns with strategic objectives.

Why this answer

A portfolio is a collection of projects, programs, and operations managed as a group to achieve strategic objectives.

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111

MCQeasy

In which organizational structure does a project manager have the highest level of authority?

A.Projectized

B.Balanced matrix

C.Weak matrix

D.Functional

AnswerA

PM has full authority.

Why this answer

In a projectized structure, the project manager has full authority over the project and dedicated team members.

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112

MCQhard

A project manager is evaluating two potential projects. Project A has an NPV of $50,000, while Project B has an NPV of -$10,000. Which project should the organization select based solely on NPV?

A.Both projects

B.Project B

C.Project A

D.Neither project

AnswerC

Positive NPV is favorable.

Why this answer

A positive NPV indicates the project is expected to generate profit, while a negative NPV suggests a loss. Therefore, Project A should be selected.

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113

MCQmedium

A project manager is reviewing project selection methods. Which method calculates the present value of future cash flows minus the initial investment?

A.Internal Rate of Return (IRR)

B.Payback period

C.Return on Investment (ROI)

D.Net Present Value (NPV)

AnswerD

NPV calculates the present value of cash flows minus investment.

Why this answer

Net Present Value (NPV) is the sum of present values of incoming and outgoing cash flows over a period of time.

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114

Multi-Selecthard

A project manager is assigned to a program that includes multiple projects aimed at digital transformation. Which TWO statements correctly describe the relationship between projects, programs, and portfolios? (Select TWO).

Select 2 answers

A.A project is a temporary endeavor with a defined beginning and end

B.A program manager focuses only on project execution, not strategic benefits

C.A portfolio is a collection of projects and programs aligned with strategic goals

D.A program consists of multiple unrelated projects

E.Projects within a program are independent and do not share resources

AnswersA, C

Projects are temporary with specific objectives.

Why this answer

A program is a group of related projects managed together for benefits, and a portfolio is a collection of projects and programs aligned with strategic objectives.

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115

MCQhard

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?

A.The project is over budget and ahead of schedule.

B.The project is under budget and behind schedule.

C.The project is over budget and behind schedule.

D.The project is under budget and ahead of schedule.

AnswerB

Correct. CPI > 1 = under budget, SPI < 1 = behind schedule.

Why this answer

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

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