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.
Shuffle Q/A 2
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
