Which of the following contract types in project procurement has the highest risk for the buyer?
A. Time and material
B. Cost-plus
C. Fixed-price
D. Unit price
Show Answer
Correct Answer: B
Explanation: Cost-plus contracts place the greatest cost risk on the buyer because the buyer reimburses all allowable costs plus a fee, with limited incentive for the seller to control costs. Fixed-price and unit price shift more risk to the seller, while time and materials has some controls but typically less risk than pure cost-plus.
Question 93
Which of the following is a reason to use a SOW on a project?
A. To find out the contact information for the vendors
B. To review the list of stakeholders
C. To ensure the team stays within the scope of the contract
D. To give explicit instruction on how to execute the work
Show Answer
Correct Answer: C
Explanation: A Statement of Work (SOW) defines the project scope, deliverables, responsibilities, and boundaries within a contract, helping ensure the team performs only the agreed-upon work and avoids scope creep.
Question 94
A manufacturing company is experiencing a high number of defects in its products and wants to identify the root cause to improve its processes. Which of the following should the company use?
A. Run charts
B. Fishbone/Ishikawa diagrams
C. Scatter plot
D. Decision tree
Show Answer
Correct Answer: B
Explanation: To identify the root causes of defects, a Fishbone (Ishikawa) diagram is most appropriate because it systematically categorizes and explores potential causes (e.g., people, methods, materials, machines, environment), enabling effective root cause analysis. Other options focus on monitoring trends, relationships, or decisions rather than root cause identification.
Question 95
During the project execution, the sponsor would like to have a visual representation indicating the progress of the project. The project is being managed using agile methodologies. Which of the following tools would best help the sponsor with the request?
A. Milestone chart
B. Velocity chart
C. Task board
D. Burndown chart
Show Answer
Correct Answer: D
Explanation: In Agile projects, a burndown chart provides a clear visual representation of progress by showing remaining work versus time. It allows sponsors to quickly see how the project or sprint is progressing and whether the team is on track, making it the most appropriate tool for this request.
Question 96
A team currently has a schedule for each sprint that changes after every iteration. The team wants to set up a repeatable schedule that would create a consistent flow of tasks and deliverables after each iteration. Which of the following should be established to best meet this goal?
A. Task log
B. Cadence
C. Milestones
D. Work breakdown structure
Show Answer
Correct Answer: B
Explanation: A cadence establishes a regular, repeatable rhythm for iterations, events, and deliverables. By fixing the timing and structure of sprints and related activities, the team achieves a consistent flow of work from one iteration to the next. The other options focus on tracking or planning work, not on creating a predictable, repeating schedule.
Question 97
Which of the following demonstrates awareness of regulations and standards when conducting a project?
A. Establishing a measurement system for the team members’ performance
B. Controlling project costs to fall within the company-approved variance
C. Reviewing advertising trends in the market before launching a new product
D. Submitting architectural plans for approval before commencing construction
Show Answer
Correct Answer: D
Explanation: Regulations and standards involve complying with external laws, codes, and formal approval processes. Submitting architectural plans for approval before construction directly demonstrates adherence to required permits and building codes, unlike the other options which focus on internal management or market analysis.
Question 98
A project team participates in a brainstorming session to define the guidance, direction, and approach for monitoring established procedures for developed products. Which of the following plans is the team creating?
A. Project transition
B. Project management
C. Project communications
D. Project quality assurance
Show Answer
Correct Answer: D
Explanation: The activity described is defining guidance, direction, and an approach for monitoring whether established procedures are being followed for developed products. This aligns with project quality assurance, which focuses on planned and systematic activities to ensure processes are appropriate and adhered to, rather than managing communications, transition, or overall project management.
Question 99
A project manager and team are currently in the planning phase of a project. Which of the following should the team do during this phase?
A. Identify and assess stakeholders.
B. Hold daily status meetings.
C. Remove access and plan the project sign-off.
D. Review assumptions and constraints for input to the risk register.
Show Answer
Correct Answer: D
Explanation: During the planning phase, the team develops and refines project management plans. This includes reviewing assumptions and constraints, which are key inputs to risk identification and are documented in the risk register. The other options correspond to initiating (stakeholder identification), executing (daily status meetings), or closing (sign-off and access removal).
Question 100
A new project manager was assigned to a project during the execution phase. The project manager discovers a lot of potential areas that may prevent the project from completing deliverables. Which of the following should the project manager do first?
A. Review the project risk register.
B. Update the defect tracker.
C. Meet with stakeholders to discuss concerns.
D. Add the potential blockers to the issues list.
Show Answer
Correct Answer: A
Explanation: The project manager has identified potential future problems that could prevent delivery, which are risks rather than current issues or defects. The first step is to review the existing risk register to understand already-identified risks, their analysis, and response plans. This establishes a baseline before adding new risks, escalating concerns, or taking other actions.
Question 101
A project manager learns that a handful of resources from the project were pulled off the project to work on a higher priority project. The project manager had previously captured this information based on indicators of this potential change. Which of the following is the sequence of these events?
A. Issue, issue
B. Issue, risk
C. Risk, issue
D. Risk, risk
Show Answer
Correct Answer: C
Explanation: The potential for resources to be pulled was identified in advance, which is a risk (a possible future event). When the resources were actually reassigned, that risk materialized into an issue (a current problem). Therefore, the sequence is Risk, then Issue.
$19
Get all 377 questions with detailed answers and explanations
Instant download HTML + PDF delivered the moment payment clears.
Secure Stripe checkout we never see or store your card details.
7-day refund if files are defective see our refund policy.