Tag: Project Management Professional (PMP) Exam Practice

Project Management Professional (PMP) Exam Practice – Question1622

As you prepare to close out contracts on your project, you should review all the following types of documentation EXCEPT the______________


A. Contract document for the contract being closed
B. Procurement audit report
C. Invoice and payment records
D. Seller performance reports

Correct Answer: B

Explanation:

Explanation:
In most organizations, a procurement audit is conducted after the contract has been closed. Therefore, the project manager would not have a procurement audit report to review. Contract document for the contract being closed, invoice and payment records, and
seller performance reports are examples of the documents that should be available to the project manager and should be reviewed at closeout.

Project Management Professional (PMP) Exam Practice – Question1621

Recent data indicate that more than 10,000 airline passengers are injured each year from baggage that falls from overhead bins. You performed a make-or-buy analysis and decided to outsource an improved bin design and manufacture. The project team needs
to develop a list of qualified sources. As a general rule, which method would the project team find especially helpful?


A. Advertising
B. Internet
C. Trade catalogs
D. Relevant local associations

Correct Answer: A

Explanation:

Explanation:
Advertising in newspapers or specialty trade publications is an excellent way to identify qualified bidders. Detailed information about specific sources may require more extensive effort, such as site visits or contact with previous customers.

Project Management Professional (PMP) Exam Practice – Question1620

Because you are working under a firm-fixed-price contract, management wants you to submit the final invoice and close out the contract as soon as possible. Before final payment on the contract can be authorized, you must______________


A. Prepare a contract completion statement
B. Audit the procurement process
C. Update and archive contract records
D. Settle subcontracts

Correct Answer: D

Explanation:

Explanation:
All payments due must be settled by the seller before the contract can be officially closed. The other items listed are activities performed by the buyer.

Project Management Professional (PMP) Exam Practice – Question1619

Which term is NOT a common name for a procurement document that solicits an offer from prospective sellers?


A. Contractor initial response
B. Request for information
C. Request for quotation
D. Invitation for negotiation

Correct Answer: B

Explanation:

Explanation:
Procurement documents are used to solicit proposals from prospective sellers. A request for information is generally used by the buyer to have potential sellers propose various pieces of information related to a product, service, or result or to a seller capability.

Project Management Professional (PMP) Exam Practice – Question1618

When a seller breaches a contract, the buyer cannot receive______________


A. Compensatory damages
B. Punitive damages
C. Liquidated damages
D. Consequential damages

Correct Answer: B

Explanation:

Explanation:
Punitive damages are designed to punish a guilty party and, as such, are considered penalties. Because a breach of contract is not unlawful, punitive damages are not awarded. The other remedies listed are available to compensate the buyer’s loss.

Project Management Professional (PMP) Exam Practice – Question1617

Which term describes contract costs that are traceable to or caused by a specific project work effort?


A. Variable
B. Fixed
C. Indirect
D. Direct

Correct Answer: D

Explanation:

Explanation:
Direct costs are always identified with the cost objectives of a specific project and include salaries, travel and living expenses, and supplies in direct support of the project.

Project Management Professional (PMP) Exam Practice – Question1616

You are a contractor for a state agency. Your company recently completed a water resource management project for the state and received payment on its final invoice today. A procurement audit has been conducted. Formal notification that the contract has been
closed should be provided to your company by the______________


A. State's project manager
B. Person responsible for procurement administration
C. Project control officer
D. Project sponsor or owner

Correct Answer: B

Explanation:

Explanation:
The person responsible for procurement administration should provide, in writing, formal notification that the contract has been completed. Requirements for formal acceptance and closeout should be defined in the contract.

Project Management Professional (PMP) Exam Practice – Question1615

Significant differences between the seller's price and your independent estimate may indicate all the following EXCEPT the______________


A. SOW was not adequate
B. Seller misunderstood the SOW
C. Sellers failed to respond
D. Project team chose the wrong contract type

Correct Answer: D

Explanation:

Explanation:
The contract type is typically dictated by the procurement SOW and chosen by the contracting officer. Independent estimates are a tool and technique in conduct procurements.

Project Management Professional (PMP) Exam Practice – Question1614

In some cases, contract termination refers to______________


A. Contract closeout by mutual agreement
B. Contract closeout by delivery of goods or services
C. Contract closeout by successful performance
D. Certification of receipt of final payment

Correct Answer: A

Explanation:

Explanation:
A contract can end in successful performance, mutual agreement, or breach of contract. Contract closeout by mutual agreement or breach of contract is called contract termination.

Project Management Professional (PMP) Exam Practice – Question1613

Which term describes the failure by either the buyer or the seller to perform part or all of the duties of a contract?


A. Termination of contract
B. Partial performance
C. Breach of contract
D. Contract waiver

Correct Answer: C

Explanation:

Explanation:
A breach of contract is a failure to perform either express or implied duties of the contract. Either the buyer or the seller can be responsible for a breach of contract.