Q&A Hero

Q: The system should organize information so that it has complex commands to retrieve information by category or subject of lesson learned or by key words. a. True b. False

Q: Establishing risk categories may help to identify and evaluate risks. List some categories to help identify risks.

Q: Track and document which risks and the impact of those risks.a. were avoidedb. had the highest priorityc. may affect the critical pathd. actually occurred

Q: are a good forum for regularly reviewing, updating, and addressing risks.a. Social gatherings of the teamb. Project meetingsc. Problem solving meetingsd. Project planning meetings

Q: Regularly review and evaluate to determine if there are any changes to the likelihood of occurrence or the potential impact of any of the risks.a. all risksb. only those risks of highest priorityc. risks that have yet to be identifiedd. risks that have occurred to see if they will happen again

Q: involves regularly reviewing the risk management matrix throughout the project.a. Risk assessingb. Risk planningc. Risk monitoringd. Risk avoidance

Q: contains the steps for how to mitigate the risk if it should occur during the project.a. The action triggerb. The response planc. The mitigation pland. The degree of impact

Q: is the warning flag for when to implement the action plan for the risk.a. The action triggerb. The priority orderc. The mitigation pland. The degree of impact

Q: is a rating of low, medium, or high based on the expected level of change in completing the project's objective if the risk were to occur during the project.a. The action triggerb. The priority orderc. The mitigation pland. The degree of impact

Q: is a rating of low, medium, or high based upon the expected probability of a risk occurring during the project.a. The action triggerb. The priority orderc. The mitigation pland. The likelihood of occurrence

Q: is a list of the potential outcomes if the risk were to occur.a. The mitigation planb. The priority orderc. The impact of a riskd. The action trigger

Q: Risks may change as the project progresses and should be reflected ina. the Risk Assessment Matrix.b. the action trigger point.c. the risk response plan.d. the risk management strategy.

Q: A risk assessment matrix is a tool fora. making a person responsible for the risk.b. stating if the risk will be avoided, accepted, or mitigated.c. examining the results of the project.d. assessing and managing risks.

Q: Project prices and budgets should include to pay for additional costs associated with implementing response plans.a. a padded budgetb. a contingency or management reservec. expenses for other charges in the office to helpd. extra overhead

Q: can be to avoid the risk, mitigate the risk, or accept the risk.a. A risk response planb. A risk assessmentc. A risk management strategyd. A risk impact statement

Q: involves developing an action plan to reduce the likelihood of occurrence or potential impact of each risk, establishing a trigger point for when to implement the actions to address each risk, and assigning responsibility to specific individuals for implementing each response plan.a. Risk assessmentb. Risk management strategyc. Risk response planningd. Risk impact statement

Q: is a defined set of actions to prevent or reduce the likelihood of occurrence or the impact of a risk, or to implement if the risk event occurs.a. A risk response planb. A risk assessmentc. A risk management strategyd. A risk impact statement

Q: Risks ____ should be given higher priority because if the risk occurs, it would have a greater impact on the schedule than if it was associated with activities on a path that has a large positive value of total slack.a. that occur first in the projectb. that affect the most costly activitiesc. on the critical pathd. that affect the activities near the end of the project

Q: Risks are prioritized based ona. the likelihood of occurrence and degree of impact.b. the order they are identified.c. the gut feeling of the project team.d. the priorities set in a different project.

Q: involves determining the likelihood that the risk event will occur and the degree of impact the event will have on the project objective.a. Priority alignmentb. Responding to a riskc. Assessing each riskd. Risk planning

Q: Sometimes a sponsor identifies major risks for the project ina. the lessons learned after the project.b. the project charter when the project is authorized.c. the contract for service.d. the project evaluation meeting.

Q: A common approach to identifying the sources of risks isa. brainstorming.b. developing a contingency plan.c. elaboration.d. evaluating the probability.

Q: Establishing risk categories may help to identify and evaluate risks. Some categories to help identify risks include all the following except:a. technical and schedule.b. cost and human resources.c. previously identified risks.d. external factors, sponsor and customer.

Q: Risks can be identified by using all the following except:a. historical information.b. progressive elaboration.c. previously identified risks.d. ignoring potential problems.

Q: If the risks seem , the contractor may decide to not bid on a proposed project.a. too greatb. within reasonc. acceptabled. easily mitigated

Q: Some level of risk planning should be done during of the project life cycle to make sure that a contractor understands the risks involved with bidding on a proposed project. With knowledge of potential risks, the contractor can include contingency or management reserve amounts in the bid price.a. the planning phaseb. the performing phasec. the initiating phased. the closing phase

Q: Addressing risks will increase the chances of accomplishing the project objective.a. reactivelyb. inactivelyc. hyperactivelyd. proactively

Q: involves identifying, assessing, and responding to project risks in order to minimize the likelihood of occurrence and/or potential impact of adverse events on the accomplishment of the project objective.a. Risk responseb. Risk managementc. Risk responsibilityd. Risk acceptance and avoidance

Q: includes taking action to prevent or minimize the likelihood of occurrence or the impact of such unfavorable events.a. Managing riskb. Taking chancesc. Identifying the trigger pointd. Naming the person responsible for the risk response plan

Q: Waiting for unfavorable events to occur and then reacting to thema. is part of a well-designed response plan.b. reflects much planning and consideration of consequences.c. is a cost saving measure by not planning.d. can result in panic and costly responses.

Q: includes determining which risks may adversely affect the project objective and what the impact of each risk might be if it occurs.a. Risk modificationb. Risk avoidancec. Risk identificationd. Risk acceptance

Q: A risk is an uncertain event that, if it occurs,a. must be accepted.b. can jeopardize accomplishing the project objective.c. must be avoided.d. helps to achieve the project objective.

Q: Historical information from past projects is another source that can be helpful in identifying possible risks. a. True b. False

Q: The project team should not change the estimated impacts of previously identified risks as the project progresses. a. True b. False

Q: The project team can progressively elaborate and identify new risks as more information is known or becomes clear. a. True b. False

Q: With knowledge of potential risks, the contractor can include contingency or management reserve amounts in the bid price. a. True b. False

Q: If the risks seem too great, the contractor may decide to not bid on a proposed project. a. True b. False

Q: Some level of risk planning should be done during the initiating phase of the project life cycle to make sure that a contractor understands the risks involved with bidding on a proposed project. a. True b. False

Q: Addressing risks proactively will increase the chances of accomplishing the project objective. a. True b. False

Q: Risk management involves identifying, assessing, and responding to project risks in order to minimize the likelihood of occurrence and/or potential impact of adverse events on the accomplishment of the project objective. a. True b. False

Q: The risks should be those that are somewhat likely to occur and/or can have a significant positive impact on accomplishing the project objective. a. True b. False

Q: Managing risk includes taking action to foster the likelihood of occurrence or the impact of such unfavorable events. a. True b. False

Q: Waiting for favorable events to occur and then reacting to them can result in panic and costly responses. a. True b. False

Q: Risk identification is determining which risks may adversely affect the development of the project work breakdown structure and what the impact of each risk might be if it occurs. a. True b. False

Q: A risk is an uncertain event that, if it occurs, can jeopardize accomplishing the project objective. a. True b. False

Q: The project manager needs to set the tone for encouraging open and timely discussion of risks among the project team. a. True b. False

Q: The contractor's outflow of cash can be controlled bya. paying a bill as soon as it is received.b. delaying payment until cash is received to pay the bill.c. delaying payment until it is due.d. never paying bills.

Q: The contractor might try to negotiate payment terms that require the customer to do one or more of the following excepta. provide frequent payments, such as weekly or monthly payments rather than quarterly payments.b. make equal monthly payments based on the expected duration of the project.c. make a single payment at the end of the project.d. provide a down payment at the start of the project.

Q: Managing cash flow involves making sure that sufficient payments are received from the customer in time so thata. you have enough money to cover the costs of performing the project.b. you hold a reserve of funds instead of paying bills.c. payroll can be paid and suppliers are delayed indefinitely.d. deposits can be made in several different accounts.

Q: Which of the following is not a way to reduce the costs of activities:a. reduce the scope or requirements.b. substitute less expensive materials.c. assign a person with less expertise or less experience to perform or help with the activity.d. increase productivity through improved methods or technology.

Q: When evaluating work packages that have a negative cost variance, you should focus on taking corrective actions to reduce the costs of:a. activities that have a small cost estimate.b. activities that have a moderate cost estimate.c. activities that have a large cost estimate.d. all the activities in the project.

Q: When evaluating work packages that have a negative cost variance, you should focus on taking corrective actions to reduce the costs of:a. activities that will be performed in the near term.b. activities that will be performed in the towards the end of the project.c. activities that will be performed at the end of the project.d. all the activities in the project.

Q: involves the following: Analyzing cost performance to determine which work packages may require corrective action; Deciding what specific corrective action should be taken; and Revising the project plan, including time and cost estimates, to incorporate the planned corrective action.a. Resource analysisb. CPI monitoringc. Cost controld. Problem solving

Q: It's crucial that cost variances and inefficiencies be identified early so thata. corrective action can be taken before the situation gets worse.b. negotiations can take place for the contract.c. the project can be monitored for self-correction.d. time is not applied to the project.

Q: Calculate the forecasted cost at completion if the cumulative actual cost is $10,000 and the re-estimate of remaining work to be performed is $5,000.a. FCAC = $5,000b. FCAC = $15,000c. FCAC = 2d. FCAC = 0.5

Q: Calculate the forecasted cost at completion if the total budgeted cost is $15,000, the cumulative actual cost is$10,000, and the cumulative earned value is $12,000.a. FCAC = $7,000b. FCAC = $17,000c. FCAC = $13,000d. FCAC = $37,000

Q: Calculate the forecasted cost at completion if the total budgeted cost = $10,000, the CEV is $8,000, and the CAC is $4,000.a. FCAC = $5,000b. FCAC = $20,000c. FCAC = $6,000d. FCAC = $4,000

Q: A third method for determining the forecasted cost at completion is to re-estimate the costs for all the remaining work to be performed and then add this re-estimate to the cumulative actual cost. If the amount of cumulated actual costs is less than difference between the total budgeted cost and the re-estimate, thena. the FCAC is greater than the TBC.b. the FCAC is less than the TBC.c. the FCAC cannot be calculated with the values given.d. additional information is needed to predict the FCAC.

Q: A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or work package has experienced in the past, the work to be performed on the remaining portion of the project or work package will be done according to budget. If the cumulative actual cost is greater than the cumulative earned value, thena. the FCAC is greater than the TBC.b. the FCAC is less than the TBC.c. the FCAC cannot be calculated with the values given.d. additional information is needed to predict the FCAC.

Q: A method for calculating the forecasted cost at completion assumes that the work to be performed on the remaining portion of the project or work package will be done at the same rate of efficiency as the work performed so far. If the cost performance index is greater than 1.0, thena. the FCAC is greater than the TBC.b. the FCAC is less than the TBC.c. the FCAC cannot be calculated with CPI.d. additional information is needed to predict the FCAC.

Q: Calculate the cost variance if the cumulative earned value is $10 and the cumulative actual costs are $20. a. $10b. -$10c. 0.5d. 2.0

Q: Another indicator of cost performance is cost variance (CV). If the cumulative earned value is greater than the cumulative actual costs, thena. the CV is positive.b. the CV is equal to the TBC.c. CV cannot be determined with CEV and CAC.d. the CV is negative.

Q: If the cumulative earned value is $10 and the cumulative actual costs are $20, then the CPI isa. $10.b. -$10.c. 0.5.d. 2.0.

Q: The cost performance index (CPI) is a measure of the cost efficiency with which the project is being performed. If the cumulative earned value is greater than the cumulative actual costs, thena. the CPI is greater than 1.0.b. the CPI is less than 1.0.c. CPI cannot be determined with CEV and CAC.d. the CPI is negative.

Q: Plot curves on the same graph to reveal any trends toward improving or deteriorating cost performance.a. AC, TBC, EVb. actual cost and budgeted costc. CBC, CAC, and CEVd. CBC, PV, and BCWS

Q: The is the product of the percent complete and the sum of the estimated costs of all the specific activities that make up a work package or the project.a. total budgeted cost (TBC)b. cumulative budgeted cost (CBC)c. cumulative actual cost (CAC)d. cumulative earned value (CEV)

Q: The is the amount that was actually spent to accomplish the work that was scheduled to be performed up to that point in time.a. total budgeted cost (TBC)b. cumulative budgeted cost (CBC)c. cumulative actual cost (CAC)d. cumulative earned value (CEV)

Q: The is the amount that was budgeted to accomplish the work that was schedule to be performed up to that point in time.a. total budgeted cost (TBC)b. cumulative budgeted cost (CBC)c. cumulative actual cost (CAC)d. cumulative earned value (CEV)

Q: The is the sum of the estimated costs of all the specific activities that make up a work package or the project.a. total budgeted cost (TBC)b. cumulative budgeted cost (CBC)c. cumulative actual cost (CAC)d. cumulative earned value (CEV)

Q: Consider a project that involves painting five similar houses over ten weeks (one house every two weeks) for a total budgeted cost of $20,000. The budget is $4,000 per house. At of the end of week 5, you determine that $10,000 has actually been spent and three houses have been painted completely. What is the earned value of the project?a. $10,000b. $12,000c. $4,000d. $20,000

Q: It's important that the person estimating the percent complete not only assess how much work has been performed but also considera. what work should have been done.b. what work remains to be done.c. what work others have to do on other projects.d. the cost of the work.

Q: Determining the earned value involves collecting data on the percent complete for each work package and then converting this percentage to a dollar amount by multiplying the of the work package by the percent complete.a. total budgeted cost (TBC)b. cumulative budgeted cost (CBC)c. cumulative earned value (CEV)d. cumulative actual cost (CAC)

Q: Earned value, the value of , is a key parameter that must be determined throughout the project.a. the work scheduledb. the resources usedc. the resources assignedd. the work actually performed

Q: As data are collected on , including portions of any committed cost, they need to be totaled by work package so that they can be compared to thea. planned cost, total budgeted cost.b. budgeted cost of work scheduled, actual cost of work performed.c. actual cost, cumulative budgeted cost.d. cumulative earned value, total budgeted cost.

Q: Costs are when an item is ordered even though actual payment may take place at some later time.a. dischargedb. committedc. postponedd. restrained

Q: Committed costs need to be treated in a special way so that the systema. audits the amounts assigned.b. periodically assigns a portion of their total cost to actual cost.c. enters the amount of the cost one time at the end of the project.d. enters the amount of the cost one time at the beginning of the project.

Q: Large projects would have charge codes for the work package numbers toa. have a place for other projects to charge expenses.b. determine how the actual costs compare to the planned costs.c. have resources be able to determine what tasks they should complete.d. allow for cutting of the budget for the activities if need to cut the budget.

Q: To keep track of , it's necessary to set up a system to collect, on a regular and timely basis, data on fundsactually expended.a. budgeted cost of work scheduledb. planned cost of the projectc. actual cost on a projectd. budgeted cost of work performed

Q: It is important to use the as the standard against which actual cost is compared.a. cumulative budgetb. total budgetc. budget at completiond. phased budget

Q: The for the entire project or each work package provides a baseline against which actual cost and work performance can be compared at any time during the project.a. total budgeted cost (TBC)b. cumulative budgeted cost (CBC)c. cumulative earned value (CEV)d. cumulative actual cost (CAC)