CAPM Practice Exam 150 Questions with Verified Answers,100% CORRECT, Exams of Business Economics

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CAPM Practice Exam 150 Questions with Verified Answers

1. The process of establishing clear and achievable objectives, measuring their achievement, and adjusting performance in accordance with the results of the measurement is called: - CORRECT ANSWER Management by Objectives
2. During the full life cycle of the project, a plot of the project's expected expenditures will usually follow a characteristic S curve. This indicates that: - CORRECT ANSWER The bulk of the project budget will be spent in the execution phase
3. In which project lifecycle phase would you expect to have the greatest influence on overall project cost? - CORRECT ANSWER Concept
4. Requirement is - - CORRECT ANSWER Quantified and documented needs of stakeholders, customer, and sponsor
5. TQM is - - CORRECT ANSWER Total Quality Management: A common approach to implementing a quality improvement program
6. Which describes Management Information Systems? - CORRECT ANSWER Software that an enterprise uses to support business and administrative operations
7. The type of planning that is equated with more specific data or is detailed in nature is called: - CORRECT ANSWER Tactical
8. What are the different types of costs in Microsoft Project? - CORRECT ANSWER Fixed Cost, Cost Per Use, Standard Cost, Overtime Cost
9. What is the name of PMI's Organization maturity model for project management? - CORRECT ANSWER OPM

11. A group of related projects that are managed in a coordinated way that usually includes an element of ongoing activity is called a: - CORRECT ANSWER Program
12. Project constraint could be on - - CORRECT ANSWER Cost, resources, schedule
13. What is true about Project Management Office (PMO)? - CORRECT ANSWER Support Project Managers by coaching and mentoring PMO is a project stakeholder PMO can terminate projects if required to keep business objectives consistent
14. Projects require project management while operations require business process management or operations management. Projects can intersect with operations at various points during the product lifecycle. Which of the following is not a stage to represent this? - CORRECT ANSWER At each Executing phase
15. Enterprise environmental factors refer to both internal and external environmental factor that surround or influence a project's success. Of the following, which is NOT an enterprise environmental factor : - CORRECT ANSWER Historical data
16. A person who is involved in or may be affected by the activities or anyone who has something to gain or lose by the activity of the project is called a: - CORRECT ANSWER Stakeholder
17. Large projects may be divided into smaller, more manageable components known as, - CORRECT ANSWER subprojects
18. A manager who manages a group of related projects is called a - - CORRECT ANSWER Program manager
19. Which activity is conducted last as part of closing process group - CORRECT ANSWER Customer satisfaction survey
20. In the PMBOK, each process is broken into - - CORRECT ANSWER Inputs and Outputs Tools and techniques

21. A stakeholder has the greatest ability to influence a project during - - CORRECT ANSWER Initiation and Planning
22. A Project Manager should support making changes during Execution - - CORRECT ANSWER When they are warranted and inline with the strategic goals of the organization
23. Conducting Lessons Learned is a critical part of - - CORRECT ANSWER Closing
24. Which is not a process from the Planning Process Group? - CORRECT ANSWER Perform Quality Assurance
25. The Change Management Plan should be included in which of the following? - CORRECT ANSWER Project Management Plan
26. Who is a Project Initiator? - CORRECT ANSWER A person or organization that has the ability and authority to start the project
27. Who does the Project Integration? - CORRECT ANSWER Project Manager
28. Which of the following is true about Project Plan? - CORRECT ANSWER Project Plan needs to have the buy in of the entire project team
29. Which of the following statements is MOST True? - CORRECT ANSWER The project charter names and authorizes the project manager
30. The project is characterized by frequent changes to the project charter. Authorizing project charter changes should typically be the responsibility of __________ - CORRECT ANSWER Senior management
31. Define a Defect repair? - CORRECT ANSWER The formally documented identification of a defect in a project component with a recommendation to either repair the defect or completely replace the component
32. Facilitating a change to the project schedule involves each of the following, except, - CORRECT ANSWER replacing the original schedule baseline

When is the project charter developed? - CORRECT ANSWER initiation

36. A budget change is requested and approved during the execution/control phase of the project. What is your MOST appropriate action following approval? - CORRECT ANSWER Integrate budget changes but maintain the original cost baseline
37. Which is NOT an output from the 'Direct and Manage Project Execution' process? - CORRECT ANSWER Project management plan
38. Who performs and documents lessons learned? - CORRECT ANSWER Project manager and Team
39. Which is a tool and technique for the process 'Perform Integrated Change Control' process? - CORRECT ANSWER Change Control meetings
40. Which of the following is NOT a configuration management activity included in the integrated change control process? - CORRECT ANSWER Configuration control
41. Any numbering system that is used to monitor project costs by category such as labor, supplies, or materials, for example, is called: - CORRECT ANSWER Chart of Accounts
42. An example of 'Validate Scope' process is : - CORRECT ANSWER Reviewing the performance of an installed software module
43. A project manager is creating a work breakdown structure for her project. In the breakdown structure, the lowest level of the breakdown for the project manager is called the: - CORRECT ANSWER Work Package
44. A project manager is reviewing the scope of the project and the scope baseline of the project. Which of the following does it include? - CORRECT ANSWER The original scope of the project plus or minus any scope changes

45. A project manager is reviewing the work breakdown structure for her project. The WBS for the project represents: - CORRECT ANSWER All the work that must be completed for the project
46. When decomposing project work during WBS creation, which of the following activities is not part of the process : - CORRECT ANSWER Assigning work to a specific resource
47. In a very large project having a budget of $5 million and a project team of over one hundred persons, the project manager constructs a work breakdown structure. The project manager will do the WBS to the detail level of which of the following? - CORRECT ANSWER Work Package
48. The work that must be done in order to deliver a product with the specified features and functions is: - CORRECT ANSWER Project scope
49. Which of the following is NOT a tool and technique for the 'Define Scope' process? - CORRECT ANSWER Decomposition
50. Which of the following are the Requirement workshops that are focused sessions that bring key cross functional stakeholders together to define product requirements? - CORRECT ANSWER Facilitated workshops
51. The method of reaching a group decision where the largest block in a group decides even if a majority is not achieved is known as : - CORRECT ANSWER Plurality
52. Job Shadowing - CORRECT ANSWER an observation technique that is usually done externally by the observer viewing the user perform his or her job
53. Which of the following may NOT be included in the Project Scope Statement?

• CORRECT ANSWER Product verification criteria

54. Which of the following are not INPUT to the 'Validate Scope' process? - CORRECT ANSWER Accepted deliverables

55. What is Decomposition? - CORRECT ANSWER Breaking down a deliverable into smaller pieces so that it can be properly managed
56. Which is the tool and technique for the 'Control Scope' process? - CORRECT ANSWER Variance analysis
57. You are the project manager of a project that is in its early phase. You need to estimate the duration of implementing the project. Based on your experience with similar past projects, you estimate a 6-month implementation time. What is this type of estimation technique called? - CORRECT ANSWER Analogous Estimating
58. An activity has an Early start(ES) of day 5, a Late Start (LS) of day 15, an Early Finish (EF) of day 8 and Late Finish(LF) of day 18. This activity : - CORRECT ANSWER Is not on the critical path
59. The difference between actual time and planned time is known as, - CORRECT ANSWER Variance
60. If a project has 5 days of project float and 10 days of total float, what will happen if the early start date is delayed 3 days, how will this impact the project completion date: - CORRECT ANSWER The finish date won't change
61. The project manager decided to improve the predicted completion date for the project by doing in parallel several of the activities that were scheduled to be done in sequence. This is called: - CORRECT ANSWER Fast Tracking
62. The original schedule (for a project, a work package, or an activity), plus or minus approved changes, is called: - CORRECT ANSWER The schedule baseline
63. Resource leveling will generally: - CORRECT ANSWER Reduce the overutilization of resources
64. A task was scheduled to use two persons, full time, and take two weeks to complete. Instead, the project manager was only able to assign one person to this task. At the end of two weeks, the person assigned to the task was 75% complete. What is the cost performance index? - CORRECT ANSWER 1.

65. Which of the following is considered to be a simulation technique? - CORRECT ANSWER Monte Carlo analysis
66. In the first attempt in resource leveling the project schedule, what would you expect to occur? - CORRECT ANSWER The overall project duration will increase
67. A project manager would like to manage his project in such a way that he will be able to predict the duration of the project more accurately, even though the estimates for the duration of the activities have a lot of variability. The project manager should use which method to more accurately predict the project completion date? - CORRECT ANSWER PERT
68. The project manager will use the PERT method of scheduling for the project that she is working on. Using the PERT calculation, the variance for the project is found to be 25 days and the duration of the project is found to be 169 days. What is the range of values for the project duration such that there will be at least a 95% probability that the actual project completion will fall between the high and low value of the range of values? - CORRECT ANSWER 159 - 179 days
69. Of the following, which is NOT a tool and technique for the 'Sequence Activities' process? - CORRECT ANSWER Milestone list
70. Which of the following represents a progressive elaboration planning technique where the work to be accomplished in the near term is planned in detail and future work is planned at a higher level of the WBS? - CORRECT ANSWER Rolling Wave Planning
71. Which dependency or logical relationship of Activity-On-Node is depicted when we say - The completion of the successor activity depends upon the completion of the predecessor activity - CORRECT ANSWER Finish to Finish
72. Which is the output from the 'Estimate Activity Resources'? - CORRECT ANSWER Resource breakdown structure
73. For a project with the following data, evaluate the project's burn rate : PV = $750,000, EV = $750,000 and AC = $900,000 - CORRECT ANSWER 1.

74. Post-mortem analysis after scheduled finish date of a project shows a CPI of 0.8 and an SPI of 1.25. What is a plausible explanation for that? - CORRECT ANSWER The project was terminated early. At that time, it was over budget and ahead of schedule
75. Which of the following about Budgets is not true, - CORRECT ANSWER Budgets need not be approved
76. What does a CPI value of greater than 1 indicate? - CORRECT ANSWER Cost under run of the estimates
77. During the status review meeting with the Top management, John, the project manager presents the S-curve for his project. The Index values for Cost and Schedule are 1.2 and 0.8 respectively. Which of the following is true for John's project? - CORRECT ANSWER Project is behind schedule and under budget
78. A budgetary estimate should be accurate to what degree? - CORRECT ANSWER -10% to +25%""
79. Which of the following statements is MOST true? - CORRECT ANSWER Price and cost are not the same
80. Which of the following is the cost estimate technique that involves developing detailed estimates at the work package level of the WBS, thereafter rolling them up to derive the project's total cost? - CORRECT ANSWER Bottom - up estimating
81. Which of the following statements is MOST true regarding Cost Baselines? - CORRECT ANSWER Cost baselines are typically illustrated using graphs. Plotted cost baselines usually form an S curve appearance.
82. Tools and Techniques for 'Control Costs' process includes all of the following except - - CORRECT ANSWER 82. Tools and Techniques for 'Control Costs' process includes all of the following except -
83. A project was estimated to cost $1.5M and scheduled to last 6 months. After three months, the earned value analysis shows the following - EV = $650,000, PV

= $750,000, AC = $800,000. What is the Schedule Variance? - CORRECT ANSWER - $

84. To distinguish top down estimates from bottom up estimates, it would be correct to say that the bottom up estimate would be: - CORRECT ANSWER More accurate
85. Which of the following mechanisms or processes is adopted to validate that the work is done to the customer satisfaction/requirement even before you present it to the customer? - CORRECT ANSWER Variance analysis
86. The Upper Control Limit (UCL) and Lower control limit (LCL) on a typical control chart indicate what? - CORRECT ANSWER Acceptable range of variation in the process
87. You have discovered a problem and are trying to determine the cause. The process whereby you identify the variables that have the most influence on the project by holding all the variables constant and changing one at a time is called: - CORRECT ANSWER Design of experiment
88. The totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs is the definition for: - CORRECT ANSWER Quality
89. One of the fundamental tenets of quality management is that quality: - CORRECT ANSWER Is planned in and not inspected in
90. A category or rank given to products that have the same functional use but different technical characteristics is called the product's: - CORRECT ANSWER Grade
91. In a manufacturing process that is being controlled by control charts, there are variables occurring that will affect the process output. Variations in the process that are considered to be normal process variables are called: - CORRECT ANSWER Common causes
92. Which of the following best represents the term - Cost of Quality? - CORRECT ANSWER cost of ensuring quality objectives

95. A responsibility assignment matrix ___________________________ - CORRECT ANSWER Shows assignment and levels of authority and does not indicate time
96. Herzberg divided motivation factors into two classes: satisfiers and dissatisfiers. Examples of satisfiers are: - CORRECT ANSWER Sense of personal achievement, work satisfaction
97. The skill of listening involves more than just hearing the sounds. One of the characteristics of a good listener is that he or she: - CORRECT ANSWER Repeats some of the things said
98. Which conflict resolution technique should be used when the deadline is critical and tasks are at risk of slipping? - CORRECT ANSWER Forcing
99. You are a team member for the project to develop the resource management system that looks into Recruitment, Attendance, Leave Management, Appraisal and Employee Exit. The project has been assigned a budget of $3 Million that is not flexible. This is an example of, - CORRECT ANSWER Constraint
100. Your project manager has decided on the ideal project management team and sketched out an informal plan to begin recruiting. He has also decided that it will be best to lease temporary office space, to serve as project headquarters for the team. Establishing an office facility like this for the team to work in close proximity is an example of what? - CORRECT ANSWER Collocation
101. Which of the following is NOT a tool and technique for the 'Acquire Project Team' process? - CORRECT ANSWER Resource calendars
102. Team development will be MOST difficult to achieve under which of the following conditions? - CORRECT ANSWER When team members are accountable to both - project manager and functional manager
103. The five stages of development of teams is represented by - - CORRECT ANSWER Forming, Storming, Norming, Performing, Adjourning

104. Which of the following is NOT an input to the 'Develop Human Resource Plan'? - CORRECT ANSWER Expert Judgment
105. Which of the following is TRUE about Progress Reports, a report that informs the stakeholders about the progress of the project? - CORRECT ANSWER They allow stakeholders to judge the performance of the project according to its plan
106. The three principal interests in maintaining good document control are: - CORRECT ANSWER Effective communication, ability to reconstruct why decisions were made and historical value
107. Your project manager wants to handle communications well in his project. In order to do this he has chosen to write a communications plan. Of the items listed below, which one is not part of the communications plan? - CORRECT ANSWER Project organizational structure
108. Which of the following techniques allows for the participants to be anonymous? - CORRECT ANSWER Delphi technique
109. In the communications model, communications between the sender and the receiver often are affected by communications barriers. These include all of the following except: - CORRECT ANSWER Lack of a communications device
110. Formal written communication with the customer is required when : - CORRECT ANSWER Customer requests some additional work not covered under the contract
111. When you want to report on the actual project results vs. planned results, you use? - CORRECT ANSWER Variance report
112. The Power /interest grid groups the stakeholders based on - - CORRECT ANSWER Level of authority (power) and their level of concern (interest).
113. Which of the following is NOT an input to the 'Plan Communications' process? - CORRECT ANSWER Communications technology

114. You are attending the status meeting along with 7 other project team members and the project manager. How many communication channels are available in the status meeting? - CORRECT ANSWER 36
115. Two vendors offer to sell similar electronic components, which are integrated at the vendor's site. To avoid risk while evaluating the bids, the project manager views such items as the vendors'? - CORRECT ANSWER Price, experience, delivery means
116. Which of the following techniques is used to evaluate the degree to which the data about risks is useful for risk management? - CORRECT ANSWER Data Quality Assessment
117. Upon evaluation, a newly appointed project manager identifies that the XYZ project has many risks with high-risk impact scores, but has an overall low risk score. How is this possible? - CORRECT ANSWER The probability of each risk is low
118. You are currently in the planning process and have identified the risks associated with this project and are ready for the next step. What is the next step? - CORRECT ANSWER Assign probability and impact values using qualitative or quantitative analysis
119. Sensitivity analysis is one of the tools involved in performing quantitative risk analysis. What are the advantages of using sensitivity analysis? - CORRECT ANSWER Management understands that there is a range of possible outcomes
120. A project of $1.5 million has an adverse event that has the probability of 60% of occurrence and a potential loss of $25,000. This represents an expected negative value of: - CORRECT ANSWER 15000
121. After reviewing the detailed analysis of a risk associated with a particular project activity, your Project Manager along with the team decides to respond to the risk by purchasing insurance. This could be an example of? - CORRECT ANSWER Transference
122. The sponsor has asked the Project Manager to ensure that sufficient amount of management reserve is available for his project. What does the Project

Manager explain to the team as the primary purpose of management reserve? - CORRECT ANSWER To take care of the risks that could not be identified by the project team

124. Looking at the trend of natural disasters that have occurred in India in the past 5 years, your company is adamant to buy an insurance against earthquakes, as the other disasters do not seem prevalent in the area where the work is to be done. Which of the risk response strategies does this belong to? - CORRECT ANSWER Transference
125. Tools and Techniques for Quantitative Risk Analysis are all of the following EXCEPT, - CORRECT ANSWER Risk Register
126. The recycling project manager has determined that the risks associated with handling certain hazardous chemicals are too high. He has decided to allow an outside company that specializes in handling hazardous materials to complete this portion of the project, and so has outsourced the handling of the chemicals to an experienced contractor. Which of the following is it an example of? - CORRECT ANSWER Transference
127. As part of risk identification, you are tasked with using a technique called SWOT. Which of the following describes SWOT? - CORRECT ANSWER Analysis of strengths, weakness, opportunities, and threats
128. As part of planning, you are identifying risks and impacts of risk on your project. Chris, a project team member, is confused by what risk means. Your explanation is that a risk is a (an) ___________________ occurrence of event that can affect the project for good or bad.: - CORRECT ANSWER Uncertain
129. Which is not an example of a correctly handled Contract closure procedure? - CORRECT ANSWER Early termination of a contract because of an immaterial breach
130. A project manager makes a narrative description of the work that must be done for her project. This is called a - CORRECT ANSWER Statement of work

133. A mutually binding agreement that obligates the seller to provide the specified product, service or result and obligates the buyer to pay for it, is called as - - CORRECT ANSWER Contract
134. The Project Management Head intends to hand over an infrastructure project to Tom, the project manager. But within the senior management of the organization, there are varied views about this project; some senior management people in the organization are against taking up the project because they feel that it is better to buy the same product from an outside source while, others feel that building the product in-house is a better option. Which of the following tools will help Tom decide whether the product should be purchased or developed in- house? - CORRECT ANSWER Make-or-Buy Analysis
135. The primary advantage of a fixed price contract with the vendor is: - CORRECT ANSWER cost risk is lower
136. Which type of contract would your Project Manager NOT want to use when he does not have enough staff in the financial department to audit invoices, - CORRECT ANSWER Cost plus fixed fee
137. Your colleague, Shelly has recently been promoted as the Project Manager for an Infrastructure project. She is in the process of procurement of material for his project. Since you have been involved in procurement activities with your project manager, Shelly needs assistance in identifying the contract type where the seller's profit is limited? - CORRECT ANSWER Cost-plus-fixed-fee contract
138. Legal contractual agreements between two or more entities to form a partnership or joint venture , or some other agreement between the parties is known as, - CORRECT ANSWER Teaming Agreements
139. Which is NOT an output from the 'Plan Procurements' process? - CORRECT ANSWER Procurement decisions
140. Which of the following is a tool and technique for the 'Control Procurements'? - CORRECT ANSWER Records management system

141. Which of the following is a tool and technique used in manage stakeholder engagements process? - CORRECT ANSWER Inter-personal skills
142. An important stakeholder in a project is at an 'unaware' state at present, i.e. he does not know what is going on in a project. You reckon that his support could be very important. Which of the following is the BEST way to get him to a 'supportive' state? - CORRECT ANSWER Assign some work or review activity to him
143. Which of the following is an input to the plan stakeholder management process? - CORRECT ANSWER Stakeholder registers
144. Which of the following is a tool to assess the current and desired state of engagement of a stakeholder on the project? - CORRECT ANSWER Stakeholder engagement assessment matrix
145. What is the best way to manage stakeholders which are low on power and interest? - CORRECT ANSWER Monitor them
146. Which of the following should you be most concerned about, during stakeholder analysis? - CORRECT ANSWER Their interest in the project Their influence on the project
147. Stakeholder management involves all of the following EXCEPT: - CORRECT ANSWER Keeping all stakeholders happy
148. Which of the following may NOT be a stakeholder to a project? - CORRECT ANSWER Everybody in the customer's organization
149. During stakeholder analysis, the project manager and team may use many different models to classify stakeholders. The model that helps to analyze a stakeholder's ability to impose his or her will or power and influence the need for immediate attention from the project team along with the legitimacy of the stakeholder's involvement is the: - CORRECT ANSWER Salience model
150. An automotive oil change station was receiving complaints that their service took too long. A coffee machine and television were installed in the waiting room

and the complaints went down. This is an example of: - CORRECT ANSWER Creative problem solving