PMI PMP-Project Management Professional Practice Exam Q. 1071 to 1080
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Set of 10 Questions
Correct Answer has been Highlighted in RED
Q. 1071: Increased attention to return on investment (ROI) now requires you to complete a financial analysis of the payback period on your project. Such an analysis identifies the:
A. Ratio of discounted revenues over discounted costs
B. Future value of money invested today
C. Amount of time before net cash flow becomes positive
D. Point in time where costs exceed profit
Section: Mix Questions
Justification in favor of the correct answer:
Payback period analysis determines the time required for a project to recover the investment in it and become profitable. A weakness of this approach is a lack of emphasis on the magnitude of the profitability.
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Q. 1072: A revised cost baseline may be required in cost control when:
A. CVs are severe, and a realistic measure of performance is needed
B. Updated cost estimates are prepared and distributed to stakeholders
C. Corrective action must be taken to bring expected future performance in line with the project plan
D. EAC shows that additional funds are needed to complete the project even if a scope change is not needed
Section: Mix Questions
Justification in favor of the correct answer:
After the CVs exceed certain ranges, the original project budget may be questioned and changed as a result of new information.
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Q. 1073: As a project manager, you identified a number of acceptable tolerances as part of your earned value management system. During execution, some “unacceptable” variances occurred. After each “unacceptable” variance occurred, you did which one of the following first?
A. Updated the budget
B. Prepared a revised cost estimate
C. Adjusted the project plan
D. Documented lessons learned
Section: Mix Questions
Justification in favor of the correct answer:
Lessons learned but not documented are “lessons lost.” The lessons learned knowledge database will help current project members, as well as people on future projects, make better decisions. Accordingly, the reasons for the variance, the rationale supporting the corrective action, and other related information must be documented. They require updates as part of updates to organizational process assets as an output of control costs in terms of corrective actions taken and why they were selected.
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Q. 1074: Assume that the project cost estimates have been prepared for each activity and the basis of these estimates has been determined. Now, as the project manager for your nutrition awareness program in your hospital, you are preparing your budget. Because you have estimates for more than 1,200 separate activities, you have decided to first:
A. Aggregate these estimates by work packages
B. Aggregate these estimates by control accounts to facilitate the use of earned value management
C. Use the results of previous projects to predict total costs
D. Set your cost performance baseline
Section: Mix Questions
Justification in favor of the correct answer:
The WBS provides the relationship among all the project deliverables and their components and should be reviewed before the budget is developed. As the budget is determined, the cost estimates for the activities should be aggregated by the work packages in the WBS. Then, later, they are aggregated for the control accounts and finally for the entire project.
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Q. 1075: If CV is negative and SV is positive, this indicates:
A. The project is under budget and ahead of schedule
B. The project is over budget and ahead of schedule
C. The project is under budget and behind schedule
D. Crashing should be recommended
Section: Monitoring & Controlling
Justification in favor of the correct answer:
A negative cost variance means the project is over budget; a positive schedule variance means the project is ahead of schedule. Thus answer choice B is the correct answer. Crashing should not be recommended, because crashing will increase costs in order to shorten the schedule, which in this case is not what is needed.
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Q. 1076: When should details about the product of the project be given?
A. Before anything else happens in the project
B. Before the project plan is put under version control
C. As soon as possible in the project planning
D. Whenever the sponsor requires it
Section: Planning
Justification in favor of the correct answer:
The more clarity you have about the details of the project’s product, the better you will be at writing the overall plan. Do not leave the details for a later date if you can get them early in the planning process.
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Q. 1077: Which knowledge area includes the creation of the WBS Dictionary?
A. Project Scope Management
B. Project Cost Management
C. Project Risk Management
D. Project Communications Management
Section: Planning
Justification in favor of the correct answer:
Project Scope Management, which focuses on the scope of the project, includes the development of the Work Breakdown Structure.
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Q. 1078: What are the four processes in Project Human Resource Management?
A. Forming, Storming, Norming, and Performing
B. Plan Human resource management, Acquire Project Team, Develop Project Team, and Manage Project Team
C. Managing, rewarding, salary reviews and punishments
D. Develop Human resource plan, staff acquisition, staff training, staff deployment,
Section: Planning
Justification in favor of the correct answer:
There are four processes in Human Resource Management: Plan Human Resource Management, Acquire Project Team, Develop Project Team and Manage Project Team.
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Q. 1079: Which of the following will show the number of resources used each month?
A. Bar Chart
B. Resource Histogram
C. Responsibility Matrix
D. Pareto Chart
Section: Planning
Justification in favor of the correct answer:
A Resource Histogram is a bar chart that depicts the resource usage. This would show the number of resources used each month and the amounts.
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Q. 1080: Which one of the following must exist in order to complete a definitive cost estimate?
A. Procurement audits
B. Scope baseline
C. Project team
D. Expert judgment
Section: Planning
Justification in favor of the correct answer:
The scope baseline is needed in order to create a definitive cost estimate. The scope baseline includes the Scope statement, WBS and WBS dictionary.
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