In Conduct Procurements process negotiations occurs.
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1 PMP Mock Questions Subject: Project Procurement Management No of Questions: 49 Questions Question - 1 During what part of Procurement Management process does procurement negotiations happened? A.Plan Procurements B.Conduct Procurements C.Administer Procurements D.Close Procurements In Conduct Procurements process negotiations occurs. Question - 2 You are project manager and now in middle of creating RFP(Request for proposal). RFP(Request for proposal) is done in. A.Plan Procurements B.Conduct Procurements C.Administer Procurements D.Close Procurements RFP(Request for proposal) is done in Plan Procurements process, Question - 3 Create Procurement document is done in.
2 A.Plan Procurements B.Conduct Procurements C.Administer Procurements D.Close Procurements Create Procurement document is done in Plan Procurements process. Question - 4 Make-or-Buy Analysis is done in. A.Plan Procurements B.Conduct Procurements C.Administer Procurements D.Close Procurements Make-or-Buy Analysis is done in Plan Procurements process. Question - 5 You are project manager and now you are middle of comparing proposals received from sellers. Comparing proposals received from sellers done in. A.Plan Procurements B.Conduct Procurements C.Administer Procurements D.Close Procurements Comparing proposals received from sellers done in Conduct Procurements. Question - 6 Make payment to seller is done in. A.Plan Procurements B.Conduct Procurements C.Administer Procurements
3 D.Close Procurements C is the correct answer. Make payment to seller is done in Administer Procurements. Question - 7 Procurements audits is done in. A.Plan Procurements B.Conduct Procurements C.Administer Procurements D.Close Procurements D is the correct answer. Procurements audits is done in Close Procurements. PMBOK page no 345. Question - 8 Complete final contract performance reporting and verify product is done in. A.Plan Procurements B.Conduct Procurements C.Administer Procurements D.Close Procurements D is the correct answer. Complete final contract performance reporting and verify product is done in Close Procurements. Question - 9 is a groups of processes required to to purchase or acquire the products, services, or results needed from outside the project team to perform the work. A.Procurement Management B.Planning Management C.Scope Management D.Control Management
4 Procurement Management is a groups of processes required to to purchase or acquire the products, services, or results needed from outside the project team to perform the work. Question - 10 The buyer and seller are bound by the. A.contract B.responsibilities C.WBS D.identification The buyer and seller are bound by the contract. Question - 11 PMI discusses procurement focusing on the relationship. A.buyer or seller B.Vendor or seller C.Purchasing PMI discusses procurement focusing on the buyer or seller relationship Question - 12 In PMBOK, the buyer is to the project team. A.Internal B.External C.Outside D.Assigned
5 In PMBOK, the buyer is Internal to the project team. Question - 13 In PMBOK, the seller is to the project team. A.Internal B.External C.Outside D.Assigned In PMBOK, the seller is External to the project team. Question - 14 A Risk Register is a part of the. A.Project Scope Statement B.Project management plan C.Project scheduling plan D.Project Charter The Risk Register is detailed part of the project management plan. Question - 15 Delivery dates and availability of resources can be found in the details of the. A.Work Breakdown Structure B.SOW C.Project Charter D.Project Scope Statement Delivery dates and availability of resources can be found in the details of the WBS.
6 Question - 16 Market conditions are a part of. A.Enterprise environmental factors B.Project management concerns C.Organizational process assets Market conditions will influence all factors of procurement. Question - 17 Make-or-buy decisions measure the costs of both options. What are both two options? A.Direct, indirect B.Tactical, strategic C.Management, project Make-or-buy decisions measure the costs of both options. When doing this analysis, it should include both direct and indirect costs so that the final decision is based on comparisons that are equal. Question - 18 What are common types of cost-reimbursable contracts? A.CPF B.CPFF C.CPIF D is the correct answer. Three common types of cost-reimbursable contracts are CPF, CPFF, and CPIF Cost- Plus-Fee (CPF), Cost-Plus-Fixed-Fee (CPFF) and Cost-Plus-Incentive-Fee (CPIF). Question - 19
7 A contract cannot contain : A.illegal activities B.A deadline for the completion of the work C.Penalties and fines for disclosure of intellectual rights A contract cannot contain illegal activities. A contract can contain other options available. Question - 20 You are the project manage and you have created a contract for your customer. The contract must have. A.Offer and consideration B.Start date and acceptance of start date C.Signatures and the stamp of a notary public A contract must have Offer and consideration. Not all contracts demand signatures and notary public involvement. Contract may specify a start date, but the Acceptance of the start date is not needed for all contracts. Question - 21 The product description of a project can help to create procurement details. Which one of the following best describes product description? A.The product description defines the contracted work, based on the requirements of the project customer. B.The product description defines the contracted work. C.The product description defines the requirements for the contract work. The product description defines the contracted work, based on the requirements of the project customer.
8 Question - 22 You are project manager of a project and decided portion of the project to be oursourced to vendor. The vendor has discovered some issues that will influence the cost and schedule of its portion of the project. How the vendor update the agreement? A.A new contract signed by your company and the vendor B.A contract addendum signed by your company and the vendor C.A SOW signed by you and the vendor A contract addendum signed by your company and the vendor. No need for new contract. Question - 23 You are the project manager of the MKTG Project. You need to purchase some equipments for your project. The Accounting department need a unilateral form of contract from you. Accounting is referring to a which of the following. A.Legal binding contract B.Purchase Order C.Statement of Work D.WBS A unilateral form of a contract is simply a purchase order. Question - 24 You are project manager of a project and decided portion of the project to be oursourced to vendor. You have offered a bonus to vendor if they complete their portion of the work in two months. This is an example of. A.Project incentive B.Project goal C.Fixed price contract
9 This is an example of Project incentive. Question - 25 The purpose of a contract is to distribute between the buyer and seller a reasonable amount of which of the following: A.Risk B.Responsibility C.Reward A fair contract shares a reasonable amount of risk between the buyer and the seller. Question - 26 What is Privity? A.Contractual, confidential information between customer and vendor B.Relationship between the project manager and a known vendor C.Relationship between the project manager and an unknown vendor Privity is a confidential agreement between the buyer and seller. Question - 27 A contract between an organization and a vendor may include a clause that penalizes the vendor if the project is late. Penalty should be enforced based on. A.Who caused the delay and what is the reason for delay. B.If the project manager knew the delay was likely. C.If the project manager could have anticipated the delay. of the above The party that caused the delay is typically the party responsible for the delay.
10 Question - 28 A single source seller is. A.There is only one seller the company wants to do business with. B.There is only one qualified seller. C.There is only one seller in the market. A single source seller is only one seller the company wants to do business with. Question - 29 Which is not a valid evaluation criterion for source selection? A.Technical ability of the seller B.Age of the contact person at the seller C.Contract requirements D.Price Age of the contact person at the seller should not be considered a evaluation criterion for source selection. Question - 30 Tom has sent the ABC Company a letter of intent. What is this means? A.Tom intends to sue to the ABC Company. B.Tom intends to buy from the ABC Company. C.Tom intends to fire the ABC Company. Tom intends to buy from the ABC Company. Question - 31
11 You are the project manager of the MKTG Project. You want a vendor to offer you one price to do all of the detailed work. Which type of document you are looking for? A.IFB B.Proposal C.RFI D.RFP An IFB a sealed document that lists the seller's firm price to complete the detailed work. Question - 32 Which is true about procurement documents? A.ensure receipt of complete proposals. B.The project manager creates and selects the bid. C.inform the performing organization why the bid is being created. Procurement documents detail the requirements for the work to ensure complete proposals from sellers. Question - 33 In which phase does source selection happen? A.Initiation B.Planning C.Closing D.Execution D is the correct answer. Source selection happens during the Execution phase. Question - 34 You have an emergency on your project. You have hired a vendor to start work
12 immediately. What contract is needed now? A.Letter contract B.Fixed fee C.Incentive contract For immediate work, a letter contract may be sufficient. Question - 35 Which statement is true about Fixed price or lump-sum contracts? A.The seller assumes the greatest risk because the price is fixed. B.If the time it takes to deliver the service or product expands, the seller cannot charge for the extra time and price. C.The seller cannot charge for the extra materials because the price for the contract is already fixed. D is the correct answer. Fixed price or lump-sum contracts: The seller assumes the greatest risk because the price is set. If the time it takes to deliver the service or product expands, the seller cannot charge for the extra time and extra price. The seller cannot charge for the extra materials because the price for the contract is already fixed. Incentives can be used with a fixed price contract based on meeting project deliverables or exceeding them. Question - 36 There are three general types of contracts: Fixed Price, time and materials, and. A.cost reimbursable B.Simple cost C.time reimbursable D is the correct answer. Three general types of contracts: Fixed Price, time and materials, and cost reimbursable. Time and Material contract - Seller is paid a preset amount per unit of service, and the total value of the contract is a function of the quantities needed to complete the work. Fixed price - A fixed total price for a well-defined product. May
13 include incentives for meeting or exceeding selected project objectives. Cost reimbursable contacts - Payment to the seller of actual costs. Question - 37 Which type of contract has the highest risk for the buyer? A.Reimbursed time B.Time and materials C.Fixed price In a time and materials contract, the buyer agrees to pay for time used by the seller, which creates the risk. Time and Material contract - Seller is paid a preset amount per unit of service, and the total value of the contract is a function of the quantities needed to complete the work. Question - 38 Which type of contract has the highest risk for the seller? A.Reimbursed time B.Time and materials C.Fixed price C is the correct answer. In Fixed price contract, the seller assumes the greatest risk because the price is fixed and not going to change. Fixed price - A fixed total price for a well-defined product. May include incentives for meeting or exceeding selected project objectives. Question - 39 CPFF stands for : A.Cost-Plus-Fixed-Fee B.Cost-Plus-Fine-Fee C.Both
14 Cost-Plus-Fixed-Fee (CPFF): The seller is reimbursed for allowable costs and then receives a fee that is agreed upon before beginning the work. Question - 40 The seller is reimbursed for costs that are incurred for performing the contract work, and then the seller receives a percentage of the cost that is agreed upon before beginning work. Which type of contract is it? A.CPPC B.CPFF C.CPIF of the above Cost-Plus-Percentage of Cost (CPPC) or CPF (Cost plus fee) : The seller is reimbursed for costs that are incurred for performing the contract work, and then the seller receives a percentage of the cost that is agreed upon before beginning work. Which type of contract is it? Cost-Plus-Fixed-Fee (CPFF): The seller is reimbursed for allowable costs and then receives a fee that is agreed upon before beginning the work. Question - 41 Which type of contract where the buyer and seller share in the savings is. A.Cost reimbursable with incentive fee B.Cost reimbursable with fixed fee C.Fixed Price D.Time and materials Cost reimbursable with incentive fee: It is a predetermined fee that is paid if certain conditions of the contract are met. Both parties, buyer and seller, will benefit from producing above expectations. Question - 42 The seller is reimbursed for allowable costs and then receives a fee that is agreed upon before beginning the work. Which type of contract is it? A.Cost reimbursable with incentive fee B.Cost reimbursable with fixed fee
15 C.Fixed Price D.Time and materials Cost-Plus-Fixed-Fee (CPFF): The seller is reimbursed for allowable costs and then receives a fee that is agreed upon before beginning the work. Question - 43 The contract statement of work describes the various procurement items in sufficient detail to give prospective sellers a guideline to see whether they can provide the item or items. Which is called. A.WBS B.SOW C.CSOW C is the correct answer. This contract statement of work (CSOW) is a subset of the SOW. The contract statement of work describes the various procurement items in sufficient detail to give prospective sellers a guideline to see whether they can provide the item or items Question - 44 The evaluation criteria are determined by the. A.Seller B.Buyer C.Sponsor D.Project Mnagager The evaluation criteria will often determine whether a seller is even eligible to participate in the proposal process. Question - 45 is to get information from the seller as to how the requirements of the project can be met through purchasing.
16 A.procurement document B.SOW C.WBS D.Scope statement procurement document is to get information from the seller as to how the requirements of the project can be met through purchasing. Question - 46 Risk management plan should include: A.Results of the Identify Risks and risk quantification processes. B.Who is responsible for managing various areas of risk. C.How contingency plans will be implemented. D is the correct answer. Risk management plan should include: Results of the Identify Risks and risk quantification processes. Who is responsible for managing various areas of risk. How the initial identification and quantification outputs will be maintained. How contingency plans will be implemented. How reserves will be allocated. Question - 47 Monitor and Control Risks activities include: A.Identifying risk changes and their trends. B.Verifying compliance with Risk Management policies. C.Updating and modifying contingency reserves as needed. D is the correct answer. Monitor and Control Risks activities include: Testing project assumptions. Identifying risk changes and their trends. Verifying compliance with Risk Management policies. Updating and modifying contingency reserves as needed. Question - 48
17 Which statement is true about Contingency Plans? A.Pre defined action steps to be taken if an identified risk event should occur B.Provision in the project plan to mitigate cost and schedule risk C.Both of the above are true of the above Contingency Plans - Pre defined action steps to be taken if an identified risk event should occur Reserves (Mitigation) - Provision in the project plan to mitigate cost and schedule risk Question - 49 Which statement is true about Mitigation Plans? A.Pre defined action steps to be taken if an identified risk event should occur B.Provision in the project plan to mitigate cost and schedule risk C.Both of the above are true of the above Contingency Plans - Pre defined action steps to be taken if an identified risk event should occur Reserves (Mitigation) - Provision in the project plan to mitigate cost and schedule risk All the materials are Copyrights please don't share.
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