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- PMP® Exams - Discussion
Project Procurement Management
Here is a list of sample questions which would help you to understand the pattern of questions on Project Procurement Management being asked in PMP Certification Exams.
(1) The fixed price contract is advantageous to the buyer because it −
requires extremely well defined specifications
requires formal procedures for scope changes
seller assumes financial and technical risk
has a known cost
Answer − C
Hint − Read about Fixed-price contracts under Sec 12.1.1.9, Page 362 PMBOK 5
(2) The contract administration function includes −
funding management
managing relationships and interfaces
performance control
all of the above
Answer − D
Hint − PMBOK 5, Page 379, Sec 12.3
(3) The major type(s) of standard warranty used in the business environment is(are) −
express
implied
negotiated
A and B
A, B, and C
Answer − D
Hint − Warranty types include express and implied. Negotiated is not a warranty type.
(4) A Unit Price (UP) contract provides−
a reimbursement of allowable costs plus a fixed fee which is paid proportionately as the contract progresses
a reimbursement of allowable cost of services performed plus an agreed upon percentage of the estimated cost as profit
the supplier with a fixed price for delivered performance plus a predetermined fee for superior performance
a fixed price where the supplier agrees to furnish goods and services at unit rates and the final price is dependent on the quantities needed to carry out the work.
Answer − D
Hint − Time and Materials Contract, Page 364, PMBOK 5
(5) The process of managing procurement relationships, monitoring contract performance, and making changes as appropriate is called
Plan Procurement Management
Control Procurements
Close Procurements
Conduct Procurements
Answer − B
Hint − PMBOK 5, Page 355, Section 12.3
(6) From a contract management perspective, the project manager must consider the−
acquisition process
contract administration
ecological environment
offer, acceptance, and consideration
a and b
Answer − E
Hint − Options C and D are not related to contracts
(7) The tools and techniques used in the process of Plan Procurement Management includes all but
Make−or−buy analysis
Market Research
Bidder Conferences
Expert Judgment
Answer − C
Hint − PMBOK 5, Page 356, Sec. 12.1
(8) Which contract type places the most risk on the seller?
Cost plus percentage fee
Cost plus incentive fee
Cost plus fixed fee
Fixed price plus incentive fee
Firm fixed price
Answer − E
Hint − Read about types of contracts under Sec 12.1.1.9, Page 362 PMBOK 5
(9) Decisions made in developing the procurement management plan can also influence the project schedule and are integrated with Develop Schedule, Estimate Activity Resources, and make-or-buy analysis.� The statement is
True
False
Not sure
Incomplete Information
Answer − A
Hint − PMBOK 5, Page 360, 2nd Para.
(10) What is the last item a project manager must do to finalize the project closing?
Reassign the team
Contract completion
Archive the project records
Complete lessons learned
Answer − B
Hint − Contract completion is most important
(11) The process that includes the contract management and change control processes required to develop and administer contracts or purchase orders issued by authorized project team members is known as −
Project Procurement Management
Project Time management
Project Cost Management
Project Risk Management
Answer − A
Hint − PMBOK 5, Page 355
(12) For the processes in the Project Procurement Management,
1. Plan Procurement Management
2. Control Procurements
3. Conduct Procurements
4. Close Procurements
The correct sequence is−
A. 1−2−3−4
B. 1−3−2−4
C. 1−4−3−2
D. 3−1−2−4
Answer − B
Hint − PMBOK 5, Page 355, Fig. 12−1
(13) The inputs used in the process of Conduct Procurements includes all except
Seller Proposals
Procurement statement of work
Source Selection Criteria
Agreements
Answer − D
Hint − Agreements are the output on conduct procurements process
(14) The contractual agreement under Fixed Price Contracts ,which influences the Plan Procurement project and is the favored by buyers because the price for goods is set at the outset and doesn�t change until scope of work changes, is known as
Firm Fixed Price Contracts (FFP)
Fixed Price Incentive Fee Contracts (FPIF)
Fixed Price with Economic Price Adjustment Contracts ( FP- EPA)
None of the above
Answer − A
Hint − PMBOK 5, Page 363
(15) The contractual agreement under Fixed Price Contracts ,which influences the Plan Procurement project and gives the buyer and seller some flexibility in that it allows for deviation from performance, with financial incentives tied to achieving agreed upon metrics is called
Fixed Price Incentive Fee Contracts (FPIF)
Fixed Price with Economic Price Adjustment Contracts (FP − EPA)
Firm Fixed Price Contracts (FFP)
Fixed Assets Price (FAP)
Answer − A
Hint − PMBOK 5, Page 363
(16) The contractual agreement under Cost-reimbursable Contracts, which influences the Plan Procurement project and where if the final costs are less or greater than the original estimated costs, then both the buyer and seller share costs from the departures based upon a pre-negotiated cost sharing formula ,is called
Cost Plus Fixed Fee Contracts ( CPFF)
Cost Plus Award Fee Contracts (CPAF)
Cost Plus Incentive Fee Contracts ( CPIF)
Cost Plus Percentage Completion (CPPC)
Answer − C
Hint − PMBOK 5, Page 364
(17) The contractual agreement under Cost-reimbursable Contracts, which influences the Plan Procurement project and where the seller is reimbursed for all the legitimate costs , but the majority of the fee is earned only based in the satisfaction of certain broad subjective performance criteria defined and incorporated into the contract is called
Cost Plus Fixed Fee Contracts ( CPFF)
Cost Plus Award Fee Contracts (CPAF)
Cost Plus Incentive Fee Contracts ( CPIF)
Cost Plus Firm Fixed Fee Contracts ( CPFFF)
Answer − B
Hint − PMBOK 5, Page 364
(18) The component of the project management plan that describes how a project team will acquire goods and services from outside the performing organization is called
Procurement Management Plan
Procurement Statement of Work
Procurement Documents
None of the above
Answer − A
Hint − PMBOK 5, Page 366, Sec. 12.1.3.1
(19) A general management technique used to determine whether particular work can best be accomplished by the project team or should be purchased from outside sources is called
Market Research
Make−or−buy Analysis
Expert Judgment
None of the above
Answer− B
Hint− PMBOK 5, Page 365, Sec. 12.1.2.1
(20) The type of hybrid contracts which influences the Plan Procurement project is called
Time and Material Contracts (T&M)
Cost −reimbursable Contracts
Fixed Price Contracts
Both B & C
Answer − A
Hint − PMBOK 5, Page 364