1. One can trade-off time and cost when managing a project, but the project’s technical specifications must be maintained exactly as the client initially specifies. (T/F)
2. Nonnumeric project selection methods are only suitable if numeric methods are NOT available. (T/F)
3. Which of the following can be included in scoring models for selecting projects?
a) potential profitability of the project
b) potential impact on the firm’s competitive position
c) the organization’s ability to market the output of a project
d) All of the above can be included
e) only a and b above
4. If the initial investment is a project is $100,000 and the expected annual net profit for the project is $20,000, the payback period is:
a) 5 years
b) 4 years
c) One fifth of a year
d) 10 years
e) insufficient information to determine the payback period
5. Which of the following is NOT a characteristic of a project?
a) They are unique.
b) They are routine.
c) They have specific due date.
d) They have a specific deliverable.
e) They have a purpose.
6. A matrix organization is a combination of pure project organization and functional organization. (T/F)
7. A pure project organization is usually too expensive for the management of small projects. (T/F)
8. The project manager is responsible to:
a) the parent organization
b) the project team
c) the project’s client
d) the project manager’s immediate supervisor
e) all of the above
9. Which of the following is NOT true concerning the difference between the project manager (PM) and the functional manager (FM)?
a) the PM is a facilitator the FM is a technical supervisor
b) the PM is a generalist the FM is a specialist
c) the PM must be able to integrate tasks; the FM must be able to analyze tasks
d) the PM uses an analytical approach the FM uses a systems approach
e) all of the above are true
10. The key criterion for selecting a good project manager is:
a) a strong technical background
b) a good manager of people
c) a good communicator with top management and clients
d) a closer, gets the job done
e) Pays attention to detail
11. The initial project meeting is just to coordinate the project, so areas of responsibility do NOT need to be discussed. (T/F)
12. The project plan should begin with a complete description of all agreements made with the client or any third party. (T/F)
13. Which of the following is NOT an element of the project master plan?
a) schedules
b) project charter
c) resource requirements
d) personnel
e) potential problems
14. What is the primary purpose of creating a work breakdown structure?
a) to draw the project plan as a chart or tree
b) to make sure important tasks aren’t overlooked
c) so that all team members can see what others are working on
d) to assign budget numbers to tasks
e) to identify important precedence relationships
15. Which of the following is used to show linkages between people and tasks?
a) the Work Breakdown Structure
b) the RACI Matrix
c) the Project Action Plan
d) the Project Resource Diagram
e) the Concurrent Engineering Chart
16. Because project budgeting is for a special case and the organization’s budgeting process is for routine work, the project manager need NOT be familiar with the organization’s accounting system. (T/F)
17. Budget cuts are usually disastrous to an exponential life-cycle project. (T/F)
18. Which of the following is most closely associated with FMEA?
a) risk priority number
b) game theory
c) expected value
d) simulation
e) program budgeting
19. Which of the following is NOT a sub-process associated with risk management?
a) risk identification
b) risk measurement
c) qualitative risk analysis
d) quantitative risk analysis
e) risk response planning
20. Which of the following is NOT true regarding top-down budgeting?
a) It is based on the collective judgments of top and middle managers.
b) Overall project costs are estimated by top and middle managers and then passed onto the next lower level.
c) The overall budget cost is generally not very accurate.
d) Overlooking small but important tasks can lead to a serious budgetary problem.
e) All of the above are true concerning top-down budgeting.
21. If task duration estimates are carefully made, the project manager needs to only examine the critical path when conducting a risk analysis. (T/F)
22. The actual project duration will be known with certainty after the project is completed. (T/F)