Hard — PK0-005 Practice Quiz

Question 1

Halfway through a predictive project, the project manager reviews earned value data. The budget at completion (BAC) is $200,000. The earned value (EV) is $90,000, the actual cost (AC) is $110,000, and the planned value (PV) is $100,000. What does this data tell the project manager about the project's cost performance?

Accepted Answer

The project is over budget because it has spent more than the value of the work completed

Answer

The project is under budget because more work is planned than completed

Answer

The project is exactly on budget because actual cost is close to planned value

Answer

Cost performance cannot be determined without knowing the estimate to complete (ETC)

Question 2

During quantitative risk analysis, a project manager evaluates two vendor options for a critical component. Vendor A has a 30% chance of a $50,000 delay cost and a 70% chance of no additional cost. Vendor B has a 10% chance of an $80,000 delay cost and a 90% chance of no additional cost. Which vendor should the project manager select based on expected monetary value (EMV)?

Accepted Answer

Vendor B, because its EMV is $8,000, which is the lower expected cost

Answer

Vendor A, because its EMV is $15,000, which represents the lower total possible cost

Answer

Vendor A, because a 30% probability is more predictable than a 10% probability

Answer

Vendor B, because its worst-case cost of $80,000 is the deciding factor

Question 3

During a project, two senior engineers strongly disagree about whether to use a new database platform. The debate has stalled a critical safety-related deliverable, and a regulatory deadline is only two days away. The project manager has listened to both positions, but there is no time left for consensus. Which conflict resolution technique should the project manager apply?

Accepted Answer

Forcing (directing) — make the decision and impose it so work can proceed

Answer

Compromising — split the difference so each engineer gives up part of their position

Answer

Avoiding (withdrawing) — postpone the decision until the engineers cool down

Answer

Collaborating (problem solving) — facilitate deeper analysis to reach a win-win outcome

Question 4

During execution of a corporate relocation project, an unforeseen structural issue with the new building is discovered that was not identified in the risk register. Addressing it will require additional funds beyond the cost baseline and the contingency reserve. Which funding source should the project manager pursue, and who typically controls it?

Accepted Answer

The management reserve, which is controlled by the sponsor or management for unknown-unknown risks

Answer

The contingency reserve, which the project manager can authorize directly for any cost overrun

Answer

The cost baseline, by reallocating budget from remaining work packages

Answer

A new business case, submitted to procurement for supplemental vendor financing

Question 5

A project manager is building the schedule for a network installation. Activity A (3 days) is followed by Activity B (5 days), which is followed by Activity D (2 days). A separate path runs Activity A, then Activity C (4 days), then Activity D. Using a forward pass starting at day 0, what is the earliest the project can finish?

Accepted Answer

10 days

Answer

9 days

Answer

12 days

Answer

14 days

Question 6

During execution of a software migration project, the project manager identifies that a newly released cloud automation tool could dramatically reduce the deployment effort if adopted. The team confirms the benefit is significant, and the PM reassigns the most skilled engineers and adjusts the plan to ensure the project fully captures this benefit. Which risk response strategy is the project manager applying?

Accepted Answer

Exploit

Answer

Mitigate

Answer

Enhance

Answer

Accept

Question 7

A project manager implements a risk response by outsourcing a specialized data migration to a third-party vendor to reduce the chance of technical failure. During planning, the team realizes that relying on the vendor introduces a new concern: the vendor may miss the delivery deadline, delaying the project. How should the project manager classify and handle this new concern?

Accepted Answer

As a secondary risk that arises from implementing the response, which should be documented in the risk register and have its own response planned

Answer

As a residual risk that must simply be accepted because no response can eliminate it

Answer

As an issue that should be escalated immediately to the change control board

Answer

As a trigger that indicates the original risk response has already failed

Question 8

During contract negotiations with a managed hosting vendor, the vendor proposes a clause allowing them to recover previously issued service credits if they maintain 100% uptime for three consecutive months following any breach. As the project manager reviewing the SLA, what does this clause represent, and what should you consider?

Accepted Answer

An earn-back provision that lets the vendor reclaim penalties; evaluate whether it weakens your remedy for repeated poor performance

Answer

A liquidated damages clause that caps the vendor's total financial liability regardless of outage frequency

Answer

A force majeure clause that excuses the vendor from penalties during uncontrollable events

Answer

An indemnification clause that shifts third-party liability from your organization to the vendor

Question 9

A project has consumed $400,000 of its $500,000 budget, but a recent market shift means the product will no longer meet customer needs and cannot be sold. Completing the remaining work will cost another $100,000, and the finished product is now expected to generate no revenue. Reworking the concept would require a new $250,000 project that is forecast to generate $600,000 in revenue. What should the project manager recommend to the sponsor?

Accepted Answer

Recommend terminating the current project and pursuing the reworked concept, since the already-spent $400,000 is a sunk cost that should not influence the decision

Answer

Finish the current project because $400,000 has already been spent and abandoning it would waste that investment

Answer

Continue the current project but reduce quality to save the remaining $100,000 in costs

Answer

Delay any decision until the full $500,000 budget has been spent so the project can be formally closed

Question 10

A project manager is monitoring a software rollout that is currently over budget. The sponsor insists the project must still be completed within the original approved budget (BAC). To assess whether this is realistic, the project manager wants to calculate the cost efficiency the team must achieve on the remaining work to meet that budget target. Which metric should the project manager calculate?

Accepted Answer

To-Complete Performance Index (TCPI) based on BAC

Answer

Cost Performance Index (CPI)

Answer

Estimate at Completion (EAC)

Answer

Cost Variance (CV)