and Answers (2026/2027) | Updated
Review | A+ Verified
• A firm begins its strategic business initiative of developing a new business model to
enhance its competitiveness. What can be identified as a strategic business initiative for
this firm? CORRECT ANSWER: Improvement in product design
• A firm begins a strategic business initiative of developing a new business model that
will allow the firm to deliver an efficient, tailored service to its customers. CORRECT
ANSWER: Project sponsor
• Which group is included in the five process groups? CORRECT ANSWER: Closing
process group
• What does PRINCE2 stand for? CORRECT ANSWER: PRojects IN a Controlled
Environment
• Which PMBOK process group is described as the delivery part of project management
where the main activity happens? CORRECT ANSWER: Executing
• Which advantage does the functional (departmentalized) organizational structure
provide for a firm with multiple projects? CORRECT ANSWER: Lines of authority are
clear.
• Which two organizations are examples of organizations with the functional
organizational structure? CORRECT ANSWER: (1) The U.S. Department of State and
(2) The U.S Department of Energy
• An organization expects to use a project management office (PMO) to support multiple
projects that will be implemented within a projectized organizational structure. Which
implied effect is a benefit to this organization? CORRECT ANSWER: Project team
members gain access to historical data from other projects.
• Regardless of the organizational structure used to manage a project, an organization
elects to use a project management office (PMO). Which benefit will this organization
gain? CORRECT ANSWER: Projects will coordinate resource usage by monitoring the
status of shared resources.
• During a certain project phase, specific blueprints are drawn and approved, materials
and labor costs are estimated, prototypes are created, and work activities and tasks are
identified. Also, quality expectations, measurements, and costs are defined. During
which project phase do these activities occur? CORRECT ANSWER: Planning
,• Place the project activities in order of occurrence from first (1) to last (5). CORRECT
ANSWER: (1) Collecting customer requirements (2) Developing the work breakdown
structure (3) Working to produce project deliverables (4) Customers evaluating the
project outcomes (5) Capturing lessons learned
• During which life cycle phase is the vast majority of the actual work to produce the
project's deliverables completed? CORRECT ANSWER: Executing
• What is the correct term for an intermediate outcome of project work, such as a signed
contract or obtaining a construction permit? CORRECT ANSWER: Deliverable
• Which deliverable from a work breakdown structure (WBS) is not specific enough to
measure its completion at project closure? CORRECT ANSWER: User training
• The following table shows the Level 1 work breakdown structure (WBS) for Project A.
WBS ID Description
0.0 Project A
1.0 Project started
2.0 Feasiblity
3.0 Design
4.0 Development
5.0 Manufacturing
6.0 Distribution
7.0 Project completed
Which approach did the project manager use to structure the WBS? CORRECT
ANSWER: Sequence of project phases
• For the following collapsed work breakdown structure (WBS) for Project O, the project
manager must complete the scope baseline. In addition to the WBS, the scope baseline
will contain two additional documents.
WBS ID Description
0.0 Project O
1.0 Project started
2.0 Feasibility
3.0 Design
4.0 Development
5.0 Manufacturing
6.0 Distribution
7.0 Project completed
What are the other two documents that belong in the scope baseline? CORRECT
ANSWER: WBS dictionary and project scope statement
• For the following collapsed work breakdown structure (WBS) for Project O, the
project's steering committee held a phase gate review of the Feasibility results. That
,review determined that the project's proposed design would be obsolete before it would
reach the marketplace.
WBS ID Description
0.0 Project O
1.0 Project started
2.0 Feasibility
3.0 Design
4.0 Development
5.0 Manufacturing
6.0 Distribution
7.0 Project completed
Which action should the project manager initiate? CORRECT ANSWER: Terminating
the project as soon as possible and releasing the project's resources
• A project is an operational necessity to repair a design flaw in the date field that
constrains the year number to two digits, instead of permitting the year to be indicated
with four digits. If the project is not completed before December 31, 1999, many legacy
programs are expected to fail or produce unpredictable outcomes. The marketing
department wants to upgrade its existing computer equipment and have the costs
included in the budget for this project. The project team implemented the marketing
department's request without completing the formal change control procedures.
What has happened to the scope baseline in this scenario? CORRECT ANSWER:
Scope creep has caused a scope variance.
• A general contractor is managing a highway construction project that will repair a
flood-damaged road. The project was documented in a cost-plus-incentive fee contract
that specified a completion date of June 30. The Department of Transportation has
offered an incentive for early completion of the repairs.
Which triple-constraint baseline remains unchanged by the effects of the incentive?
CORRECT ANSWER: Scope
• In Project A, the contract specifies that time is very important. All of the scope must be
completed, or the project will fail. The project's objective requires the project team to
work as quickly as possible.
Which triple constraint can be adjusted to permit the project team to work as quickly as
possible? CORRECT ANSWER: Cost
• In Project B, all of the scope must be completed, or the project will fail. The work is
important but not urgent.
Which triple constraint can be adjusted if the project's objective requires the project
team to work at the lowest possible cost? CORRECT ANSWER: Time
, • A project manager is discussing the latest financial reports of a project to construct a
grocery store and is approximately 90% into the planning phase. The project manager
has been told by a project team member that other grocery stores in the area have an
automated teller machine (ATM) for visitors. An ATM has not been discussed or
incorporated into the planning of this project nor have any been incorporated into prior
grocery store services. The leader calls for the immediate addition of an ATM into all
prior grocery stores.
Which non-numeric model is this leader using? CORRECT ANSWER: Competitive
necessity
• An organization has a surplus of project dollars in the operating budget. The senior
leader's decision is to fund one more project with the remaining funds. Of the three
projects proposed, one of the projects was selected without evaluation of feasibility or
viability.
Which non-numeric model is this leader using? CORRECT ANSWER: Sacred cow
• Each project team member generated a series of questions to evaluate three projects.
The checklist was compiled into one list based on frequency of question content, such
as personnel, materials, experience, and time. The more frequent the question content,
the more likely the questions would be asked first.
Which two benefits result from this checklist approach? CORRECT ANSWER: (1)
Operational impact has been built in (2) Strategic impact has been integrated.
• Each project team member generated a series of questions to evaluate three projects.
A checklist was then compiled into one list based on the frequency of question content,
such as personnel, materials, experience, and time.
What is a disadvantage of using this checklist approach? CORRECT ANSWER: Biases
have not been eliminated.
• To calculate money's worth today compared to in the future CORRECT ANSWER:
Time value of money
• To calculate future cash flows using time and interest rate CORRECT ANSWER:
Internal rate of return
• To calculate whether revenue tomorrow is greater than costs today CORRECT
ANSWER: Net present value
• To calculate the alternative use of money CORRECT ANSWER: Opportunity cost