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Project Management Professional (PMP)
Certification – Ultimate 2025 Prep Course with
Real Exam Questions and Answers
As a Project Manager, if you had to choose among projects A, B, C, and D, which one would be the BEST option? Here, NPV is Net Present Value. A. Project A: NPV $ 50,000, to be completed in 3 years B. Project B: NPV $ 40,000, to be completed in 2 years C. Project C: NPV $ 70,000, to be completed in 9 years D. Project A: NPV $ 60,000, to be completed in 1 year - - correct ans- - Correct Option: C EXPLANATION The project with highest value of NPV should be selected. The information on number of years to complete the project is irrelevant as it is already considered while calculating the value of NPV. NPV is defined as the difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of an investment or project. In the PDCA cycle, C stands for? A. Control B. Check C. Card D. Carryover - - correct ans- - Correct Option: B
EXPLANATION
PDCA stands for Plan-Do-Check-Act. Which of the following statements is FALSE? A. Project closure documents and project files are outputs of the Close Project Process B. Project files consist of documentation resulting from project activities, such as the project management plan, scope, cost, risk registers, and quality baselines C. The formal acceptance documentation formally indicates that the customer or sponsor has officially accepted the project deliverables D. After the Close Project or Phase process is complete, the Project Manager should identify and document the lessons learned - - correct ans- - Correct Option: D EXPLANATION D is incorrect. The creation of lessons learned documentation is part of the Close project or phase process. You are managing a project with a total budget of $36,000 to be finished in one year. You are at the end of the 6th month and the project is currently on schedule; however, the actual cost of the project is $20,000. What is the cost variance on the project? A. 2000 B. - 2000 C. 16000 D. - 6000 - - correct ans- - Correct Option: B EXPLANATION Cost variance = Earned Value (EV) - Actual Cost (AC). Here, Earned Value is uniformly spread over the entire project duration. So earned value at the 6th month = [(Total Cost)/
improve a process is to make a fundamental change, for example, upgrade equipment, change procedures, or provide more training. However, the presence of a special cause would result in data points falling outside the control limit or show trend. Special causes of variation must be removed before the control chart can be used to monitor the performance of a process to make it stable and predictable. Which one of the following is the last step of project closing? A. Archive Project Documents B. Measure customer satisfaction at the end of the project C. Client appreciates your product D. Lessons learned are documented - - correct ans- - Correct Option: B EXPLANATION All of the stated options are activities conducted during project closing. Measuring customer satisfaction at the end of the project is the last step in the closing process group. This is according to the new changes suggested by the PMI RDS Study. During the closing, the final project report needs to be based on: A. Stakeholder management plan B. Communications management plan C. Project charter D. Contract - - correct ans- - Correct Option: B EXPLANATION According to the new examination content outline, the final project report needs to be based on communications management plan. Which of the following is NOT a possible use of historical records?
A. Establish organizational performance benchmarks B. Document best practices that were discovered during the project C. Use in closure reports of subsequent projects D. Document potential pitfalls that future projects can avoid - - correct ans- - Which of the following is NOT a possible use of historical records? Establish organizational performance benchmarks Document best practices that were discovered during the project Use in closure reports of subsequent projects Document potential pitfalls that future projects can avoid Which of the following is an input of the close project or phase process? A. Transitioning of the final product, service, or result B. Updates to the Organizational process assets C. Accepted Deliverables D. Enterprise environmental factors - - correct ans- - Correct Option: C EXPLANATION Accepted deliverables is an input to the Close project or phase process. A Project Manager is reporting the final status of the closed contract to the stakeholders. Which form of communication is appropriate? A. Informal Written B. Informal Verbal C. Formal Written D. Formal Verbal - - correct ans- - Correct Option: C EXPLANATION
part of closing, according the new RDS study conducted by PMI. This was amended in
You need to determine when to release resources from your project. Which part of the staffing management plan will be most useful for this? A. Resource Histogram B. Safety procedures C. Recognition and rewards D. Training needs - - correct ans- - Correct Option: A EXPLANATION A Resource Histogram is a bar chart that shows the amount of time that a resource is scheduled to work over a series of time periods. During final payment for a contract, you were surprised to see two line items in the invoice pertaining to features that were requested by some members of your team. These items were not really necessary for your project. What should you do about the invoice? A. Ask the team members why they requested the unnecessary items B. Pay only for the essential items C. Pay as per the original contract and start arbitration proceedings for the rest D. Pay for the additional items as well - - correct ans- - Correct Option: D EXPLANATION Irrespective of whether they were necessary or not, it is a fact that they were requested by your team members. Therefore you cannot escape the liability to pay for them.
After awarding contract to one of the sellers, you realize that you have missed a clause for delay in the contract and want to modify it. How should you proceed? A. The contract is legally binding and cannot be changed once signed B. The Project Manager should inform the seller about the change in the next meeting C. The Project Manager should inform the seller about the change through a formal written communication D. The Project Manager should proceed with Contract Change Control System at his end - - correct ans- - Correct Option: D EXPLANATION The Project Manager should proceed with Contract Change control System at his end. A few weeks before the close of a project, the customer submits a request for a new feature, which will have a major impact. The customer further expects this to be completed within the original cost and schedule baseline. What should the Project Manager do? A. Meet with the team to understand the impact B. Refuse the customer request C. Ask the team to voluntarily work extra hours to get the feature completed D. Inform senior management about the request - - correct ans- - Correct Option: D EXPLANATION The impact is already known to be significant and there doesn't seem to be enough time to rally around the situation. As the customer is expecting a change that is not easily achievable, the best course of action is to ask senior management to take a call on this situation. Your firm awarded a cost reimbursable contract to a pharmaceutical company for a research-related activity. Over time, a large number of changes have taken place on the
Documenting lessons learned is part of closure, but applying those findings happens during the project planning (not closure) process. As a Project Manager, you are conducting a structured review of the seller's progress to deliver the project within the contract specifications. Your objective is to determine progress with respect to the procurement statement of work. You would be doing this review in which stage of the project? A. Before contract closure B. Before awarding the contract C. As part of project status review D. In case of nonconformance by seller - - correct ans- - Correct Option: C EXPLANATION The Project Manager is doing a procurement performance review as part of the 'control procurements' process. It is a structured review of the seller's progress to deliver project scope and quality within cost and on schedule, as specified in the contract. For more information, refer PMBOK® Guide - Sixth Edition Project Procurement Management page 492. A Project Manager has made the final delivery to the customer, and the team is in the process of completing administrative and contract closure. The team has also saved the final version of the "lessons learned" in the corporate database. Which of the following is a critical activity that the Project Manager should complete before formally closing the project? A. Confirm that all the requirements in the project are met B. Ensure that all project management processes are complete C. Obtain formal sign-off of the project from the customer D. Index and archive the project records - - correct ans- - Correct Option: C EXPLANATION
The most important part of project closure is to get formal sign-off from the customer. The customer considers the project completed and accepts the completed project. Formal sign-off in a contracting situation constitutes legal acceptance. You are managing a complex, critical project and have put in a lot of effort to make the team technically proficient during the process. The project is in the final acceptance testing stage when a senior resource, Janice, comes to discuss her plans of continuing her education and leaving this current assignment. She would require a positive recommendation for work from you to fulfill admission requirements. What should you do? A. Tell her that you wouldn't recommend her as she has broken your trust by leaving the project before closure B. Immediately ask the Functional Manager to remove her from the project and give her a bad recommendation C. Discuss and plan her exit so that it would have the least impact on the project schedule D. Compliment Janice on her decision and suggest that she can leave the project whenever she likes as you would handle her additional responsibilities - - correct ans- - Correct Option: C EXPLANATION The Project Manager should take steps to minimize the impact of any change that can affect the 'triple constraints' in the project. Option D is wrong and it sets a wrong example. Tom has been recently promoted as a Project Manager for a short-term IT project. Jim, an experienced Project Manager, has suggested to Tom that the most important task for a Project Manager to be successful is communication with the stakeholders. Jim explains to Tom that he should communicate the project status to the stakeholders to get feedback. How will this help Tom on his project? A. All the stakeholders will be happy with Tom B. This will ensure that the project aligns with the business needs C. The Project Sponsor will be happy
D. Risk Register - - correct ans- - Correct Option: B EXPLANATION The fallback plan includes an alternative set of actions and tasks in the event that the primary plan needs to be abandoned because of issues, risks, or other causes. Which of the following conflict resolution techniques is believed to generate the FEWEST enduring positive results? A. Problem Solving B. Avoidance C. Compromising D. Forcing - - correct ans- - Correct Option: D EXPLANATION Forcing is the technique that can generate the FEWEST positive enduring results. A project manager managing a video project was informed by one the team members about a complex problem that can have a drastic negative impact on the project. The project manager immediately defined the cause of problem by analyzing the problem using a fishbone diagram, identified a solution, and implemented the solution. The project manager recently received a call from the same team member and was informed that the same problem resurfaced. What did the project manager most likely forget to do? A. Validate the solution to the sponsors B. Confirm that the solution solved the problem C. Use a Pareto chart D. Identify why the problem occurred - - correct ans- - Correct Option: B
EXPLANATION
Even though the project manager spends a great deal of energy and time preventing problems, there are still problems that need to be resolved. Below is the problem- solving technique: - Define the cause of the problem (not just symptoms) - Analyze the problem (cause and effect diagram) - Identify solutions - Implement the selected solution - Review the solution You are overseeing the implementation of a new computer structure at the local hospital. You are currently identifying all the internal and external stakeholders who have an interest in your project and can positively or negatively impact your project. While identifying the stakeholders, you realize that stakeholder identification is A. The responsibility of the project sponsor B. To be carried out throughout the project life cycle C. To be completed in the initial stage of the project life cycle D. To be focused only on stakeholders who will contribute positively to your project - - correct ans- - Correct Option: B EXPLANATION Stakeholder identification will continue throughout the project life cycle. As the project proceeds through each phase, additional stakeholders may be involved while others will be released. Stakeholder identification is conducted primarily by the project management team, but some stakeholders may be identified in the project charter. Stakeholders may include people and organizations that may be affected either negatively or positively by the project outcome. Company ABC invested $400,000 in a project with expected cash inflows of $40,000 per quarter for the first two years and $80,000 per quarter from third year. Another project has a payback period of 25 years for the same amount of investment. Which project should you select? A. The first project B. The second project
technology and tools available. However, your organization has advised you to play it safe. In the last three years, the organization has not invested in new technology and won't adapt to anything that is not well tested and used by others in the industry. In terms of risk attitude, your organization can be best described as: A. Risk seeker B. Risk Neutral C. Risk Averse D. Risk Lover - - correct ans- - Correct Option: C EXPLANATION Risk averse is someone who does not want to take risks, and the project manager seems to be part of such an organization. Risk neutral describes a person or an organization indifferent to risk. Risk seeker suggests an aptitude to take risks with an opportunity for higher returns. Risk lover is a made-up term. You have been assigned as a project manager to implement a new office automation application. Management asks you to make sure that the new application will work on existing infrastructure and can easily be integrated with other major application currently running in the organization. Which of the following is this an example of? A. Assumptions B. Project scope C. Constraint D. Expectation - - correct ans- - Correct Option: C EXPLANATION This is an example of constraints. Constraints are limitations that limit the available options for a project.
You have recently been assigned as a project manager for a new and highly complex project to send a satellite into space. There are several stakeholders in the project, and you are working on communications plan to identify the information and communication needs of the people involved. You do this by determining what needs to be communicated, when, to whom, with what method, in which format, and how frequently. It is extremely important that you develop your communications plan _____. A. Evenly throughout the project life cycle B. At the earliest stage of the project C. On completion of the project plan D. During execution - - correct ans- - Correct Option: B EXPLANATION Plan communications is included in the planning process, which is generally completed prior to executing. Updates to the project plan, including the communications management plan, will occur during the entire project life cycle. You are working for a healthcare facility and are overseeing the implementation of a new computer infrastructure and office automation project at the local hospital. You made all the efforts to ensure that a rigorous test was done and scope was validated prior to any major release in the project. Recently, you made the final delivery to the customer and communicated the successful news to all relevant members of the project. You were surprised when customer called to inform you that he was not very happy with the release as it did not support one of his key functionalities and demanded that the feature be added as soon as possible. What should you do first in this kind of situation? A. Estimate the time, cost, and resources required to add the feature as specified by the customer B. Have an urgent meeting with the sponsor to discuss the customer's concern C. Inform the customer that the project has been delivered and - - correct ans- - Correct Option: C EXPLANATION
B. Alternative generation C. Inspection D. Decomposition - - correct ans- - Correct Option: A EXPLANATION Product analysis techniques, such as product breakdown, systems analysis, system engineering, value engineering, value analysis, functional analysis, and others, may be used to perform a detailed analysis of the product, service, or result. This technique translates project objectives into tangible deliverables and requirements by improving the project team's understanding of the product. Which of the following theories demonstrates that employees who believe their efforts will lead to effective performance and who expect to be rewarded for their accomplishments remain productive as rewards meet their expectations? A. Abraham Maslow's Hierarchy of Needs B. Alderfer's Existence, Relatedness, Growth (ERG) Needs C. McClelland's Achievement Motivation theory D. Victor Vroom's Expectancy theory - - correct ans- - Correct Option: D EXPLANATION Victor Vroom's Expectancy theory demonstrates that employees who believe their efforts will lead to effective performance and who expect to be rewarded for their accomplishments remain productive as rewards meet their expectations. In which of the following procurement management processes is negotiated settlement used as a tool and technique? A. Plan procurement management B. Conduct procurements C. Control procurements
D. Close Project - - correct ans- - Correct Option: C EXPLANATION Negotiated settlement is used as a tool and technique in the Close Procurements process. The key objective of negotiated settlement is the settlement of all outstanding issues, claims, and disputes, if possible. Which of the following statements is NOT true about a watch list? A. It consists of risk that do not have a high enough probability or impact to make it into risk register but that still need to be monitored B. It documents low probability and low impact risks for historical use C. It is an output of the proven qualitative risk analysis process D. Noncritical risks on the watch list need to be reviewed at intervals during the project to ensure they have not become critical - - correct ans- - Correct Option: B EXPLANATION Noncritical risks on the watch list are not only for historical use but also need to be monitored at intervals during the project to ensure they have not become critical. Which of the following statements is FALSE concerning a project management office (PMO)? A. It can be responsible for the direct management of projects and program. B. It is an organizational body responsible for establishing and maintaining templates, policies, procedures, best practices, and standards for project management methodologies. C. In order to be managed together, the various projects supported by a PMO should be related. D. It conducts periodic project audits to monitor compliance with project management standards. - - correct ans- - Correct Option: C
