CAPM Exam 1|100 Questions with Verified Answers,100% CORRECT, Exams of Business Economics

Download CAPM Exam 1|100 Questions with Verified Answers,100% CORRECT and more Exams Business Economics in PDF only on Docsity! CAPM Exam 1|100 Questions with Verified Answers You are a project manager for your company and are helping management choose a project. You've been presented with the following information: Project 1 has a net present value of $25,000 and will take five years to complete. Project 2 has a net present value of $45,000 and will take two years to complete. Project 3 has a net present value of $33,500 and will take six years to complete. Which project should your company choose to complete? - CORRECT ANSWER Project 2 - High NPV, low time You are the project manager for your organization and you're working with management to determine the best project for your company. Beth, a manager, has suggested using linear programming to help determine the best project. Linear programming is an example of which project selection method? - CORRECT ANSWER Constrained optimization You are the project manager for your organization and you're working with your project team to help coach them on the processes within project management. During this coaching you explain the difference between constraints and assumptions and how this affects project initiation. You also explain how long- term projects and short-term projects may be measured differently during project ignition. In light of this conversion, customer demands, changes to the marketplace, and opportunity are all examples of which one of the following? - CORRECT ANSWER Reasons for project initiation Management must choose a project that will be the most profitable. This approach to project selection is based on which one of the following? - CORRECT ANSWER The Economic Model You are the project manager of the NHJ Project. This project is to create a new software package for a client. You're working with the client, business analysts, software developers, business developers, and the sales team to create the vision and requirements of the newly initiated project. Of the following, which one determines the scope of the project? - CORRECT ANSWER The Customer June is managing a project which was slated to last one year. The project is now entering its third year. Of the following, which statement is most applicable to this situation? - CORRECT ANSWER The project scope has not been properly identified. You are an IT project manager for your company and are currently defining the scope for a new project. The CIO defines project success as "implementation of standard technical components." The project sponsor, on the other hand, defines project success as "achieving excellence in technology," while the project customer defines project success as "the presence of sales-promoting features." What should you do as the project manager? - CORRECT ANSWER Talk with stakeholders to define the project objectives in measurable metrics Yolanda is the project manager of the newly initiated P4 Project for her company. She's working with the project team and the key stakeholders to review the project requirements and prep for the project scope creation. All of the following documents are needed to define the project scope except for which one? - CORRECT ANSWER The Quality Management Plan You are the project manager of the PHG project. You and your project team need to verify a project assumption. Which one of the following can most help with this process? - CORRECT ANSWER Historical Information You are the project manager for your organization. You have just been assigned a new project with a predetermined budget of $250,000. This is an example of which one of the following? - CORRECT ANSWER Constraint You have just taken over a failing project. In your initial review of the project schedule, you realize the previous project manager has made no exceptions for travel delays. This is an example of which one of the following? - CORRECT ANSWER Assumption You are the project manager for your organization. The ART project, which you have been working on for the last two months, has a very strict cost constraint, high requirements for quality, and must be completed within the next eight months. If the project exceeds its budget by more than 1 percent, management will deem the project a failure. Changes to your project have caused the project What is the process of subdividing project deliverables into smaller, more manageable components called? (Choose the best answer.) - CORRECT ANSWER Decomposition You and the project team have just created a WBS for your project. Each item within the work package is recognized by a unique identifier. Your boss wants to know where the numbering scheme came from. Which of the following would be the best explanation to give him? - CORRECT ANSWER A code of accounts You are the project manager of the NHQ Project for your company. This project is to create a new condo building in your city and is scheduled to last for just ten months. Your project team has just decomposed all of the project deliverables for their construction project. What is the document that the decomposition creates? - CORRECT ANSWER A work breakdown structure You and your project team are working on the creation of the project's WBS. Some of the elements cannot be decomposed until late in the project. What approach can the project team take in this scenario? - CORRECT ANSWER Utilize Rolling Wave Planning You, a project manager, must know all of the components of a project plan and be able to explain the importance, significance, and depth of each project management planning component. One document you'll use often in project planning is the WBS. What is the smallest item in the WBS called? (Choose the best answer.) - CORRECT ANSWER A Work Package All except one of the following activities are usually involved in the creation of the WBS. Which one is the exception? - CORRECT ANSWER Evaluating the project risk components Joan is the project manager of the NQQ Project for her company and she's working with the project team to create the work breakdown structure (WBS). What is the purpose of the WBS? (Choose the best answer.) - CORRECT ANSWER It organizes and defines the project scope You are creating a plan to control how changes to the project scope will be permitted. Which one of the following would be the name of this plan? - CORRECT ANSWER The Scope Management plan Your project is not costing as much as you predicted. If you do not use your entire budget allotment for the first phase of the project, you will receive a budget reduction for the second phase of your project. You elect to order slightly better materials that will provide a higher product for the customer, but that will also allow you to meet the predicted budget for this phase of the project. This condition is best described as which one of the following? - CORRECT ANSWER Gold Plating A change has been approved for your project. This change will cause the project to increase in costs by $25,000. What needs to be updated as a result of this change? (Choose the best answer.) - CORRECT ANSWER The cost baseline A change has been demanded by the customer for your project scope. Which one of the following does not need to be examined because of the change? - CORRECT ANSWER The project charter You are the project manager of the HGF Project. The project scope has been approved by all stakeholders and management. The project is now moving forward. A week later, however, two of the key stakeholders, John and Tina, come to you demanding to change some aspects of the scope statement. What should the project manager do? - CORRECT ANSWER Refuse to make any changes, but have the stakeholders complete a change request form Julianne is the project manager of the JGB Project. A change request has been approved that will add a considerable amount of time and cost to the project. What must be updated to reflect these changes? - CORRECT ANSWER The scope baseline You are the project manager for your organization. Your latest project is to create a web interface that allows customers to purchase items from an online catalog. If you create the product in-house, it will cost $150,000 to create and nearly $4,500 each month in administration and fees. A vendor has supplied a quote to create the software for $160,000 and to handle the administration for five cents per transaction. There are expected to be 65,000 transactions each month. Which one of the following will help you determine which decision has the best value? - CORRECT ANSWER A decision tree A project manager wants to assign resources to activities that must happen during off-hours. The labor union, however, wants to discuss this issue with the project manager before approving the schedule. The relationship between the labor union and management is represented by which one of the following? - CORRECT ANSWER A collective bargaining agreement You are the project manager for your organization and you're working with management and the project team to create the project management plan. Which plan controls how team members are brought onto and released from the project? - CORRECT ANSWER The staffing management plan Fred is the project manager of the HUT Project and he's in a conflict with Sarah about requiring the project team to work overtime. Fred insists that overworking the project team may result in all but one of the following. Which one won't result? - CORRECT ANSWER An increase in quality inspections A project manager is completing a project for another organization and is currently completing risk planning in order to determine which risks demand actions in the project. Which one of the following must be considered when planning to take actions regarding the project risks? - CORRECT ANSWER The Utility method Sarah is the project manager of a project to create an online help manual for customers of a product her company sells. Samuel, a writer for the project, is taking considerably longer than what was planned to create the documentation. While Samuel's work is excellent, if he continues to be late with the needed documentation, the project will be late. Which of the following is NOT an appropriate corrective action for this problem? - CORRECT ANSWER Remove Samuel from the project team You are the project manager of the generator upgrade and replacement project, which is expected to last 36 months. The project work is extremely dangerous so the project team will undergo intense safety training to ensure the safety of the You are the project manager for your organization. Your latest project has a BAC of $250,000. You have calculated your CPI to be .91 and your AC to $175,000. What is your project's EAC? - CORRECT ANSWER $275,000 You have just taken over a project that is several months late and is in very bad shape. The previous project manager had not kept accurate records on the project work, project expenses, or the overall performance of the project. The customer is still very interested in having the project completed and is not holding you responsible for the project work up to this point. Of the following, which one is the best solution to move forward and to create accurate records of your progress? - CORRECT ANSWER Rebaseline the project A project has a budget of $7,500,000 and is expected to last five years. The project is now in year three and is 40 percent complete. What is the earned value of this project if the project manager has spent $4,225,000 of the project budget so far? - CORRECT ANSWER $3,000,000 The project manager of a large software implementation project just finished a project status meeting. In the meeting, he learned that a crucial piece of the software his team was creating is faulty. The news will cause the project to be late by at least one month and will likely cost additional fees for the developers' time. What is the next step the project manager should take? - CORRECT ANSWER Present the news to management and the customer with a solution to resolve the problem Virginia is a project manager overseeing the construction of a new retail shopping center. The project is scheduled to last one year and is currently in month five. She is working with several subcontractors on the project to complete the paving, road connections, and parking lot lighting. It has come to her attention from the paving contractor that the city has raised the fees to connect the parking lot to the city drive. Which of the following communications is most appropriate for this change? - CORRECT ANSWER A cost variance report Protecting the project scope is paramount in all projects, but sometimes changes will happen. In which of the following is the project scope change control system documented? - CORRECT ANSWER The project scope management plan You are the project manager for the BNH Project. A stakeholder is demanding that your project team make some immediate changes to the product your project is creating. You inform the customer that the changes cannot happen immediately because of the project processes that are established by your organization. In which of the following are these processes documented? - CORRECT ANSWER The scope change control system A value-added change has been approved for your project. The change will require the project to take two months longer and will cost $25,000. What must the project manager do once these changes have been approved? - CORRECT ANSWER Update the time, cost, and scope baselines to reflect the new changes You are a project manager for your organization. Your project utilizes a vendor to complete all of the electrical work within your project. Your stakeholder has requested a change in the scope of the project which will cause additional work for the vendor. Which of the following documents will dictate how the change will proceed in regard to the vendor? - CORRECT ANSWER The contract Change control is essential to project success. Part of change control is the coordination of all changes across the entire project. When does integrated change control happen? - CORRECT ANSWER From project inception through completion Mary is the project manager of a software development project. The stakeholders of the project have requested a major change to the project scope. The change control board has reviewed and approved the change even though it will require six additional weeks of the development team's time. What must Mary do next? - CORRECT ANSWER Work with the project team to update the project scope, WBS, and WBS dictionary Your organization completes projects for other organizations. You are the project manager of the BGV Project. It is almost complete but the stakeholders have requested a change to the project scope. The customer is willing to pay any additional fees for this change. This additional change will cause the project to run three weeks longer than was planned. The problem, you realize, is that you have already scheduled your current project team to start a three-year project for a different customer that will overlap with the new work the customer has just added to the scope. You need to complete the current project, keep your current customer happy, and start the next project on time. What should you do? - CORRECT ANSWER Hire additional project team members to complete the project on time Dian is the project manager of the HQN Project. This project is moving into its closing processes and Dian needs to finalize the project records for archives. Which of the following is NOT needed when archiving a project? - CORRECT ANSWER Commercial databases You are the project manager for a company that completes projects for other organizations. Your company has no formal archiving process for project records. Your project has just completed and the customer has formally accepted the project work. The customer is very pleased with the project and is considering hiring your organization for another project. What should you do with your current documentation? - CORRECT ANSWER Archive the information yourself You are the project manager of the LKJ Project. Your project is nearly complete and you are beginning to organize your project records for archiving. All of the following should be included in your project archives except for which one? - CORRECT ANSWER Drafts of the project charter You are the project manager of a project to create and assemble 10,000 information and direction signs for a hospital campus. The signs are to be installed by another project team by doors, elevators, and offices. The customer agrees that your project scope is completed and signs off on the project deliverables. The project manager of the installation team accepts the signs from you and wants to know when you and your project team will be arriving to help install the signs throughout the hospital campus. Which one of the following is the appropriate response? - CORRECT ANSWER Do nothing. Your project scope has been completed A project manager has reported that a project is completed. The customer, however, brings to the project manager's attention that the project quality is not to the level defined in the project plan. What must the project manager do next? - CORRECT ANSWER Correct the problem to be in alignment with the project plan determines the expected level of quality, but you may be able to change some components of the project for an additional cost. You are a project manager for a company that completes projects for others. You are currently working on a project for a company to create a new remote- controlled device for digital cameras. Another company has approached you about completing a project for them. This new project, however, is for your current customer's competition. In addition, this competing company is creating a very similar device. What should you do? - CORRECT ANSWER Accept the assignment because both companies have nondisclosure agreements with you and there is no noncompete clause in your contracts You are a project manager of a project to install new web software for your organization. The software project has been halted, however, due to a pending law that may change how the public can interact and use the information the software will provide. Until the legal situation is resolved, this project cannot move forward. The legal issue in this scenario is what? - CORRECT ANSWER A project constraint You are the project manager for your organization and are currently determining which resource is the best fit for each of the project activities. Thus, you are completing which one of the following? - CORRECT ANSWER Project human resource management John is the project sponsor for your project and you've been working with him regarding some quality and risk issues. Which of the following statements is true about the project sponsor's activities? - CORRECT ANSWER The project sponsor ensures the project manager has the necessary resources to complete the project You and another project manager are in competition for Juan. Both of you need him for activities on your projects full-time, but your projects overlap in schedule. This is an example of which one of the following? - CORRECT ANSWER Resource constraint Management has asked you to create an Ishikawa diagram for your new project. An Ishikawa diagram aims to do which one of the following? - CORRECT ANSWER Offer a complete cause-and-effect analysis A project manager has a project team member whose work is consistently not in alignment with the quality metrics as required by the customer. This discrepancy results in rework and wasted time. What should the project manager do? - CORRECT ANSWER Implement corrective actions Complete this statement: Low _______________ may not be a problem; low _______________ always is. - CORRECT ANSWER Grade, quality You are the project manager of a project to solve customer service problems in your company's call center. You would like to create a chart showing the frequency of problems your project team has identified. What is the name of the chart you would like to create? - CORRECT ANSWER A Pareto chart You are the project manager of a project to manufacture a new product. The project is almost complete. The initial product is being tested and the quality engineers discover a part is seven millimeters off target. Because of the errors, the product is rejected. What is the likely outcome of this scenario? - CORRECT ANSWER The project team must rework the part to correct the problem You are the project manager for your organization and you're currently mentoring Marcy in the principles of project management. She does not understand the difference between quality and grade. Which of the following statements would best explain to Marcy what grade is? - CORRECT ANSWER Grade is the category or rank given to a component with the same functionality but different technical characteristics You are a project manager responsible for the implementation of a software program. Your project team will travel to several hundred remote locations to install the software onsite. Project team members are reporting that the stakeholders in the locations are asking them to do extra configuration work as part of the install. If the changes are routed through the change control system, it may be several days before the changes can happen, and the project team members are only onsite for two days at each location. What should you do? - CORRECT ANSWER Evaluate the changes that have been requested so far in the project and determine if the changes are valid. If so, approve the changes as part of the installation process for all sites. In the early stages of a project, this event is easy to accept. Later in the project, it is difficult to accept. What is the event? - CORRECT ANSWER Change A stakeholder has proposed some changes that will enhance the deliverable of the project. Where is the scope change control system documented? - CORRECT ANSWER The project scope management plan