project planning putting it all together weekly challenge 3 answers

1. Which three costs are examples of resource cost rates?

  • The cost of a task buffer
  • The cost of labor for a project team
  • The cost of software to help manage a project
  • The cost of materials when building a house

 

2. Which scenario is an example of planned cost versus actual cost?

  • When planning your project budget, you notice that you need to advertise several job positions. The cost to post the job descriptions to several online job boards is $300.
  • When planning your project budget, you document the planned cost of labor. To do this, you use the estimated number of hours your team needs to complete the project. As your project progresses, you document the total hours your team works to determine the total cost of labor for your project. This number may be different from your original cost of labor.
  • When planning your project budget, you gather historical data on costs of materials, resources, and labor to determine how much each will cost. Once you begin procuring these items, you don’t update the actual cost.
  • When planning your project budget, you need to factor in unexpected costs that may occur. You decide to reserve 5% of your overall budget as a buffer.

 

3. As a project manager creating a budget, you proactively identify factors that may impact expenses. You then take action to minimize the budgetary impact of these factors. What is this task called?

  • Bottom-up approach
  • Estimating cost
  • Baselining the budget
  • Cost control

 

4. Which of the following are steps in the procurement process? Select all that apply.

  • Initiating
  • Contract writing
  • Controlling
  • Analyzing

 

5. After receiving multiple bids for your project, you select a vendor you’d like to work with. You’re ready to start the contracting process. Which procurement document do you fill out and send the vendor?

  • Statement of work (SoW)
  • Request for proposal (RFP)
  • Non-disclosure agreement (NDA)
  • Scope of work (SoW)

 

6. Which of the following justifies sole-supplier sourcing?

  • The company is cautious about exposing trade secrets.
  • The supplier provided material for the past three projects.
  • The project sponsor asks to only use one particular supplier.
  • The supplier is easy to work with and offers a discount.

 

7. Fill in the blank: A project manager needs to alter their budget after making changes to the project schedule and costs. This is necessary in order to _____.

  • re-baseline the budget to track project progress of costs.
  • baseline the budget to track project progress of costs
  • baseline the budget to track project progress of reserves
  • re-baseline the budget to track project progress of tasks

 

8. At what phase in the procurement process would a project manager check a vendor’s reputation for delivering quality work, and make a site visit?

  • Introducing
  • Selecting
  • Controlling
  • Completing

 

9. When budgeting a project, you should consider additional expenses such as warranties, supplies, add-ons, and upgrades. Which budgeting term refers to this concept?

  • Bottom-up approach
  • Top-down approach
  • Baseline your project
  • Total cost of ownership

10. Fill in the blank: Typically, a project manager organizes a budget by _____. Then, the project manager lists tasks alongside each task’s associated costs.

  • tools
  • dependencies
  • teammates
  • milestones

 

11. Imagine you are in charge of the budget for a project. You understand the stakeholder needs and have budgeted for surprise expenses. Which of the following is a budgeting task you need to do over the course of the project?

  • Cancel planned expenses
  • Review and reforecast
  • Rebudget and restart
  • Procure additional funding

12. Which of the following is an example of using historical data to develop your project budget?

  • Thinking about all the parts of your project from the beginning to the end and adding the costs together
  • Getting quotes from potential vendors
  • Reviewing past projects that are similar to yours to get an idea of what your budget could entail
  • Reaching out to project managers who worked on past projects at the company

13. As a project manager, the project sponsor gives you cost estimates with a set amount of money to spend. What challenge for effective budgeting does this represent?

  • Pre-allocated budget
  • Insufficient cash flow
  • Scope creep
  • Lack of historical data

14. Procurement involves obtaining materials, services, and supplies for a project. Which of the following also needs to be procured for a project?

  • Team leaders
  • Employees
  • Schedules
  • Vendors

15. At the beginning of your project, you solicit bids from vendors to select the one that is best for the project. Which procurement document should you prepare to fulfill this task?

  • Statement of work (SoW)
  • Non-disclosure agreement (NDA)
  • Scope of work (SoW)
  • Request for proposal (RFP)

16. Which of the following may impact ethics in procurement? Select all that apply.

  • Sole-supplier sourcing
  • Union contract negotiations
  • Interaction with state-owned entities
  • Bribery or corruption

17. Which of the following do you consider an indirect cost in your budget?

  • Training
  • Equipment rental costs
  • Security
  • Wages and salaries

18. At what phase in the procurement process would a project manager determine the success of the procurement process?

  • Finishing
  • Completing
  • Determination
  • Controlling

19. Which of the following accurately describes total cost of ownership (TCO)?

  • TCO is the dollar amount used to measure if a project is on track or not.
  • TCO only factors in upfront expenses associated with a product or service.
  • TCO is the additional room in the budget for unexpected costs.
  • TCO factors in expenses associated with a product or service over its lifetime.

20. A project manager predicts the cost of a project for the upcoming quarter. What is this prediction known as?

  • Planned Expense
  • Schedule
  • Material Expense
  • Forecast

21. As a project manager, you notice that some of your inventory is arriving damaged, and it isn’t the vendor’s fault. What is this known as in budget planning?

  • Surprise expense
  • Expected issues
  • Low-quality product
  • Reserve inventory

22. Is it effective project management for a project to be under budget?

  • Yes, this is a sign of excellent project management.
  • Maybe, but only if the stakeholders change the schedule.
  • No, this is a sign of unsatisfactory project management.

23. In the procurement process, what step comes after initiating the process?

  • Selecting
  • Initiating
  • Contract writing
  • Analyzing

24. Which section of the statement of work (SoW) includes details about what the service entails and may include major project activities?

  • Scope
  • Target audience
  • Schedule overview
  • Purpose

25. Which activity ensures ethical procurement in the initiating phase of a project?

  • Execute quality control
  • Audit each task and cost
  • Review government regulations and policies
  • Focus on the day-to-day relationships with vendors

26. To create a well-organized budget, a project manager includes different types of expenses. Which type of budget expense includes costs for day-to-day tasks within a company?

  • Operating expenses (OPEX)
  • Capital expenses (CAPEX)
  • Reserve expenses
  • Fixed expenses

27. At what phase in the procurement process would a project manager determine the success of the procurement process?

  • Controlling
  • Finishing
  • Completing
  • Determination

28. As a project manager creating a budget, you’re thinking about all the parts of a project from beginning to end—making a list of every material, resource, and contract worker. What do you call this type of budgeting?

  • Contingency
  • Bottom-up approach
  • Buffers and reserves
  • Top-down approach

29. A document that keeps confidential information within the organization is known as what?

  • Statement of work (SoW)
  • Non-disclosure agreement (NDA)
  • Scope of work (SoW)
  • Request for proposal (RFP)

30. “Honesty, responsibility, respect, and fairness are the values…” begins what type of saying of the Project Management Institute that serves as a guide to how they do procurement and other business?

  • Requirements
  • Slogan
  • Code of ethics
  • Motto

31. At what phase in the procurement process would a project manager make payments, set up logistics, and ensure service agreements are being met?

  • Selecting
  • Initiating
  • Controlling

  • Completing

     
     

32. Time and materials contracts are usually paid monthly, based on hours worked. What is a fixed contract?

  • A contract paid when certain milestones are reached
  • A contract paid to a specific vendor
  • A contract paid for a certain amount of time
  • A contract paid internally to team members

33. Which of the following statements is typically true regarding budgeting?

  • It’s important to not go over or under budget.
  • It’s recommended to go either over or under budget.
  • It’s important to not go over budget, but it’s recommended to go under budget.
  • It’s important to not go under budget, but it’s recommended to go over budget.

34. A project manager creates a budget. They determine the amount of buffer funds the project likely needs for completion. What is this budget component?

  • Expected estimation
  • Reserve analysis
  • Risk funding
  • Surprise expense

35. Imagine you are working on a project. It progresses as expected, but you would like to assess the budget to identify whether any budget items need to be revisited. When should you take this budgeting action?

  • Project completion
  • Project flow meeting
  • Any project pause
  • A project milestone

36. As a project manager, you’re seeking a procurement approach that outlines clear workstreams, hard deadlines, and financially protects your project against unforeseen circumstances. Which procurement approach should you choose?

  • Traditional
  • Protectionist
  • Agile
  • Robust

37. What is the first step when completing a reserve analysis?

  • Develop a baseline budget
  • Review all potential risks to your project
  • Categorize different types of costs
  • Account for cost of quality

38. At what phase in the procurement process would a project manager decide what supplies and which vendors will be used on the project?

  • Investigating
  • Selecting
  • Controlling
  • Assignment

39. Fill in the blank: In project management, the budget is considered a _____—it is a success metric.

  • procurement
  • dependency
  • reserve
  • deliverable

40. When creating a budget, a project manager must do which of the following? Select all that apply.

  • Review and reforecast throughout the project
  • Budget for surprise expenses
  • Approve budget increases
  • Understand stakeholder needs

41. It’s important to leverage the knowledge of other experts, particularly those who have worked on similar projects. When asking for advice from someone outside of the company, what is critical to do?

  • Avoid sharing confidential information
  • Request internal documentation from the experts’ projects
  • Set a timeline with the colleague
  • Ask about their historical projects

42. As a project manager, you research and source for a specific service. You then have to manage that relationship. This is known as what type of procurement?

  • Performance management
  • Vendor management
  • Budget management
  • Cost management

43. When assessing ethical versus unethical procurement, what is the first step you should take?

  • Use your best judgment and do the required research
  • Review contracts with your legal team
  • Discuss with a trusted friend
  • Reach out to local government officials

44. At what phase in the procurement process would a project manager review a vendor’s performance and determine if they are meeting milestones?

  • Completing
  • Selecting
  • Controlling
  • Investigating

45. Which of the following factors can lead to scope creep and negatively affect the budget? Select all that apply.

  • Agreements about the project that aren’t officially documented
  • Attainable timeframes and deadlines
  • Last-minute asks from priority stakeholders
  • A vague Statement of Work (SoW)

46. As a project manager, you review your budget and notice one vendor is costing more than anticipated. You shift funds and recalibrate the budget to offset this increased vendor cost. What is the budgeting term for this task?

  • Reforecasting
  • Reserve analysis
  • Setting the baseline
  • Cost of quality

47. To create a well-organized budget, a project manager includes different types of expenditures. Which type of budget expense creates a future benefit for a company?

  • Historical expenses
  • Capital expenses (CAPEX)
  • Indirect expenses
  • Operating expenses (OPEX)

48. A project manager writes a budget for an upcoming project. They break down the project by important points in the schedule like the completion of a phase. What are these important points known as?

  • Progressions
  • Deliverables
  • Dependencies
  • Milestones

49. Which scenario is an example of proactive budget management?

  • While planning your project budget, you decide that you don’t need to add buffers for unexpected costs. Since you’ve completed several projects like this one in the past and have always come in under budget, you feel you don’t need to plan for any extra cost.
  • During your project, the market experiences a shortage of a resource that’s crucial for your project’s success. Because of the shortage, the price of this resource increases. This is something you did not expect, nor plan for, and must now figure out how you can afford to complete your project.
  • While planning your project budget, you gather historical data and consult with industry experts. You consider fixed costs, add relevant line items, and set aside a 5% reserve for unexpected costs.
  • You’re reviewing your budget and realize that it took much longer than you anticipated for a subject matter expert to complete a task. The labor cost associated with this task is now well over budget. You must now request a budget increase to cover the cost of the labor.

50. You are working with a vendor and ask them to sign an NDA. What does an NDA help to ensure?

  • That the amount of promised work is clear to all parties
  • That multiple vendors are able to submit bids for the project
  • That confidential information is kept within the organization
  • That the the vendor and the team both understand the expected deliverables

51. The budgeting process usually takes place at the same time as what other process?

  • Procurement
  • Delivery
  • Scheduling
  • Production

52. Which section of the statement of work (SoW) includes the desired outcomes of the entire project?

  • Scope
  • Deliverables
  • Purpose
  • Major milestones

This Post Has 4 Comments

  1. Ngo Hung Vi Reply

    Which section of the statement of work (SoW) includes details about what the service entails and may include major project activities?

    Target audience
    Purpose
    Scope
    Schedule overview

  2. Ngo Hung Vi Reply

    As a project manager, you research and source for a specific service. You then have to manage that relationship. This is known as what type of procurement?

    Budget management
    Performance management
    Cost management
    Vendor management

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