Need help on following MCQ, please provide explanations for better understanding. Which of the following is true related to project budgets and budget management?

1. Parametric estimating technique is primarily based on the actual costs early in the life of project
2. Project manager typically has more control over direct project costs, rather than indirect costs
3. The best practice for PM to manage budget overruns is to wait until the project is implemented and then addressing the overrun with Sr. Mgmt and Accounting
   1. I
   2. II
   3. I and II
   4. I and III
   5. I, II, and III

Which performance measurement tells you how much revised budget is required to execute the project (i.e. amount of total funds required to execute all work from start through the end of the project)? a. ETC b. EV c. AC d. EAC e. VAC Which of the following statements is not true about Critical Chain? a. It treats critical path activities as a bottleneck b. Unless stated otherwise, its duration will be ~75% of the critical path schedule c. The assumption for each task is that its immediate predecessors have been completed while resources may not be readily available d. Feeder buffer will never be longer than the project buffer e. None of the above (all true) Suppose you calculated that the mean and variance of the critical path on a project is 80 days and 22 days respectively. The mean and variance of the second longest path are 65 and 12 days, respectively. Which of the following statement(s) is(are) true? I. PERT bias is significant for this problem II. Simulation and PERT would give very similar answers for the average project duration III. PERT bias is negligible a. I b. II c. III d. I & II e. II & III

Which of the following is not true about Risk Management? a. In the Risk Severity Matrix, Risk Likelihood (typically, y-axis) measures the probability of Impact (typically, x-axis) b. Not all identified risks should be managed proactively c. The strategy of retaining risk is analogous to accepting and working around the risk d. Risks must be identified during the Planning process, and then continuously updated throughout Execution e. None of the above (all true)

Which of the following statements is not an appropriate Steering Committee action? a. The presence of a Chair (or their delegate) is necessary but not sufficient to hold a milestone-review SteerCo meeting b. Identification of a new high-priority risk is an appropriate trigger to call an exception-based SteerCo meeting c. Milestone-based reviews are preferred to pre-scheduled periodic SteerCo meetings because they focus attention and meeting time on the decision making, rather than status update d. SteerCo should make a Go decision at the Gate review when the previous phase has been successfully completed, even though the plan for the next phase is not ready e. None of the above (all appropriate)

In a critical chain implementation, you observed that you completed 75% of the project and consumed 60% of the project buffer. Which of the following is correct? a. You should pause the project and re-assess the size of the project buffer b. You should shift a portion of the project buffer to the feeding buffer c. You should remove all the resource buffers d. More than one of the above statements is correct e. None of them is correct Which of the following is(are) true about time-cost trade-off analysis? I. "Crushing" project increases direct and indirect costs II. It is not appropriate to crash the duration of activities on non-critical paths III. "Crushing" objective is to find the shortest duration at the optimum cost a. I b. II c. III d. I & II e. II & III Which of the following statements is not true regarding stakeholder management?

a. PM must provide feedback to SH on how their interests and issues are addressed and resolved

b. Upward / primary stakeholders should take precedent over secondary stakeholders on the project because "you cannot satisfy everyone"

c. In the stakeholder analysis, it is sufficient to plan to move some Unaware or Resistant stakeholders to Neutral state, while others to Supporting or Leading stage

d. Communication Plan should include stakeholder mapping

e. None (all are true)

Which of the following is(are) accurate statement(s) about Project Closure?

1. It is appropriate to terminate the project when it is unlikely that the goals will be achieved
2. Successful Project Closure Gate review signals that the outcomes have been ingrained into regular operations
3. Termination-by-Starvation is likely the result of ineffective management decision making

a. I

b. II

c. III

d. I and III

e. II and III

Microsoft Project gives that free slack for an activity is 2 days and total slack is 3 days. If the activity delayed for 3 days, which of the following statements would be correct? a. Project duration does not change b. Project will be delayed by 1 day c. Project will be delayed for 2 days d. Project will be delayed for 3 day e. None of the above is correct In the critical path method, which of the following is true? I. The difference between latest-finish and latest start is equal to the difference between earliest finish and earliest start II. The difference between latest-finish and earliest finish is equal to the difference between latest start and earliest start III. To find the project duration, we must first calculate all four points for each task: earliest start, earliest finish, latest start, latest-finish a. II b. III c. I and II d. I and III e. I, II, and III

Which statement below is not true about Project Plan? a. Work breakdown structure is an important input for developing a project plan b. Project Plan is a relatively fixed formal project authorization which primarily documents the shared understanding of project's scope and objectives c. It should include resource allocation, communication, and risk management plans d. All of the above e. None of the above Assume that you are a construction project manager assigned to manage a commercial real estate project which has an upfront cost of $12 million. You estimate the monthly rental income will be $100,000 in first three years and then $200,000 per month in the following five years. What is the payback period? a. 5 years 6 months b. 6 years 1 month c. 6 years 6 months d. 7 years e. None of the above The company is evaluating the following projects in two separate portfolios - Derivative Projects and Platform Projects.Assuming that the overall available budget is $2M, which projects should the company select?

Derivative Projects	Platform Projects
Project A: NPV $700K Investment required $800K Project B (mandated by regulatory requirement): NPV -$250K Investment required $300K Project C: NPV $75K Investment required $150K	Project D: NPV $1.2M Investment required $900K Project E: NPV still unknow as revenue inflow is still being analyzed Investment required $300K

a. Projects A and D

b. Projects A, B, C

c. Projects A, C, D

d. All projects

e. Insufficient information provided about available budget