Deck 10: Managing Project Procurement

Question 1

costs is another term for overhead costs.

A)Actual
B)Fixed
C)Indirect
D)Direct

Answer 1

C

Question 2

Only when the requirements are sufficiently detailed, suppliers feel comfortable using a:

A)fixed- price contract.
B)cost- reimbursable contract.
C)incentive- based contract.
D)time- and- materials contract.

Answer 2

A

Question 3

A contract type in which the supplier is bound to the price of the contract is called:

A)cost- reimbursable contract.
B)time- and- materials contract.
C)fixed- price contract.
D)incentive- based contract.

Answer 3

C

Question 4

When the supported task is generic, companies should turn to:

A)open- source software.
B)IT services firms.
C)enterprise- wide solutions.
D)packaged software producers.

Question 5

A system in which vendors are eliminated based on certain minimum criteria is called:

A)weighting system.
B)evaluation system.
C)screening system.
D)process of elimination.

Question 6

Which of the following is NOT part of an RFP?

A)Management requirements section
B)Technical requirements section
C)Supplier's section
D)Stakeholder section

Question 7

A(n)is a document prepared for potential vendors that describes the service or product being sought.

A)RFP
B)RPM
C)SAP
D)SOW

Question 8

help companies develop custom information systems for internal use, or they develop, host, and run applications for customers.

A)IT services firms
B)Packaged software providers
C)Vendors of enterprise- wide solution software
D)On- demand computing providers

Question 9

Under a , vendors provide and hourly rate and an estimate about the time and material needed.

A)fixed- price contract.
B)time- and- materials contract.
C)cost- reimbursable contract.
D)incentive- based contract.

Question 10

Which of the following is a reason for outsourcing?

A)It can reduce time to market.
B)It can increase the revenue potential of the organization.
C)It may be cost- effective.
D)All of the above.

Question 11

Which of the following is not a process in the project procurement management knowledge area?

A)Planning contracting
B)Contract closure
C)Contract management
D)Contract administration

Question 12

The process involves determining which project needs can best be met by going outside the project organization to obtain them.

A)planning contracting
B)planning purchases and acquisitions
C)purchase and acquisition planning
D)planning external acquisitions

Question 13

An RFP:

A)is unimportant.
B)allows buyer and supplier to communicate using the same rules.
C)often becomes a part of the final contract.
D)all of the above.

Question 14

The key technique used in procurement planning is:

A)risk analysis.
B)cost/benefit analysis.
C)make- or- buy analysis.
D)decision tree analysis.

Question 15

A method used to quantitatively compare vendor proposals based on evaluation of attributes is called:

A)screening system.
B)weighting system.
C)evaluation system.
D)process of elimination.

Question 16

There are basic parts to a Request for Proposals.

A)seven
B)nine
C)eight
D)six

Question 17

Using different products from different vendors is referred to as:

A)compromising
B)satisficing.
C)best- of- breed strategy.
D)benchmarking.

Question 18

The process involving verification that all products and services are acceptable is called:

A)contract verification.
B)procurement audit.
C)contract closure.
D)contract audit.

Question 19

ERP systems:

A)can be very expensive to implement.
B)are very complex.
C)are very flexible because of the use of modules.
D)all of the above.

Question 20

The practice of turning over the responsibility for developing or running a computer application to another organization is called:

A)procurement.
B)sourcing.
C)outsourcing.
D)offshoring.

Question 21

Another term for independent estimates is:

A)pre- contract estimates.
B)external estimates.
C)price estimates.
D)should cost estimates.

Question 22

Off- the- shelf software systems that cannot be modified to meet specific needs are called:

A)shrink- wrapped systems.
B)turnkey systems.
C)ready- to- go systems.
D)off- the shelf systems.

Question 23

A is a structured review of the procurement process from the planning purchases and acquisition process through the contract administration process.

A)procurement review
B)contract review
C)contract audit
D)procurement audit

Question 24

How many processes does the project procurement management knowledge area include?

A)Five
B)Four
C)Six
D)Three

Question 25

Evaluation criteria can be:

A)subjective.
B)objective.
C)included in the RFP.
D)all of the above.

Question 26

For complete systems that cross functional boundaries, companies should turn to:

A)enterprise- wide solutions.
B)open- source software.
C)IT services firms.
D)packaged software producers.

Question 27

The process during which representatives from the buyer and the vendor engage in discussions prior to its being signed is called:

A)contract agreement.
B)contract negotiation.
C)contract closure.
D)contract discussion.

Question 28

Planning purchases and acquisitions and planning contracting are part of the process group.

A)planning
B)executing
C)monitoring and controlling
D)initiation

Question 29

Open- source software is different than other types of software because:

A)it is always free.
B)it is developed by employees of a particular company.
C)the source code is freely available.
D)none of the above.

Question 30

Which of the following is another name for an RFP?

A)Invitation for negotiation
B)Request for quotation
C)Invitation to bid
D)All of the above

Question 31

A(n)is a system that integrates individual traditional business functions into a series of modules so that a single transaction occurs seamlessly within a single information system rather than several separate systems.

A)ERP
B)SAP
C)MRP
D)MRP II

Question 32

A contract is:

A)typically subject to lengthy internal reviews by a company's legal department.
B)subject to remedy in the court system.
C)a legal relationship between companies.
D)all of the above.

Question 33

A(n)addresses evaluation criteria, how multiple vendors would be managed, and so on.

A)purchase management plan
B)procurement management plan
C)acquisition management plan
D)statement of work

Question 34

Another term for on- demand computing is:

A)utility computing.
B)application service provider.
C)pay- by- the- drink.
D)autonomous computing.

Question 35

Another term for lump sum contract is:

A)fixed- price contract.
B)time- and- materials contract.
C)cost- reimbursable contract.
D)incentive- based contract.

Question 36

When the supported task is generic, but cost is an issue, companies should turn to:

A)IT services firms.
B)open- source software.
C)packaged software producers.
D)enterprise- wide solutions.

Question 37

costs are part of the vendor's cost of doing business.

A)Direct
B)Actual
C)Indirect
D)Fixed

Question 38

A contract type that involves payment for the actual cost of the product plus a fee that represents the vendor's profits is called:

A)fixed- price contract.
B)cost- reimbursable contract.
C)time- and- materials contract.
D)incentive- based contract.

Question 39

When the task requires custom support, companies should turn to:

A)IT services firms.
B)enterprise- wide solutions.
C)open- source software.
D)packaged software producers.

Question 40

Which of the following is NOT an output from the planning purchases and acquisition process?

A)Request for proposal
B)Requested changes
C)Statement of work
D)Procurement management plan

Question 41

Request seller responses and select sellers belong to the process group.

A)initiation
B)monitoring and controlling
C)executing
D)planning

Question 42

__________involves verification that all products and services contracted for are acceptable.

Question 43

A(n)__________is a document prepared for potential vendors that describes the service or product being sought.

Question 44

__________are a type of off- the- shelf systems that cannot be modified.

Question 45

Contract___________ involves comparing what was contracted for with what has been done.

Question 46

The most common procurement document is the:

A)RPM.
B)SOW.
C)SAP.
D)RFP.

Question 47

Contract administration is part of the process group.

A)planning
B)monitoring and controlling
C)executing
D)initiation

Question 48

Contract closure is a_________ process.

Question 49

A contract type that involves payment for the actual cost of the product plus a fee that represents the vendor's profits is called __________contract.

Question 50

All of the following are types of examples of organizations from which software or its components can be procured EXCEPT:

A)packaged software providers.
B)hardware companies.
C)IT services firms.
D)on- demand computing providers.

Question 51

Buyer- conducted performance reviews are structured reviews of the vendor's progress in__________.

Question 52

A__________ contract is used when the requirements for products or services are well- defined.

Question 53

The __________is a structured review of the procurement process from the planning purchases and acquisition process through the contract administration process.

Question 54

For a , it is often recommended that contract requirements specify review points and progress assessments.

A)time- and- materials contract.
B)fixed- price contract.
C)incentive- based contract.
D)cost- reimbursable contract.

Question 55

__________is used to determine whether a product or service should be produced in- house, or procured from an outside vendor.

Question 56

costs are those incurred by the vendor in the provision of the product or service.

A)Actual
B)Direct
C)Indirect
D)Fixed

Question 57

Statements of work:

A)tend to be revised as they move through the procurement process.
B)are not used much in the procurement process.
C)are rather static.
D)are on a very high level.

Question 58

The main task of planning contracting is to create __________needed to support the requesting seller responses and selecting seller's processes.

Question 59

The__________ of open- source software is freely available.

Question 60

Utility computing is another name for ___________.

Question 61

Indirect costs are also known as_________ costs.

Question 62

A ___________ is set up for the buying organization to pay the vendor for the work performed.

Question 63

_________help companies develop custom information systems for internal use, or they develop, host, and run applications for customers.

Question 64

A _________uses minimum values for one or more performance criteria to eliminate proposals that do not meet the minimum values.

Question 65

A __________ is a method that is used to quantitatively compare the proposals that are received by prospective vendors.

Question 66

A __________ is an automated record- keeping system that helps the project manger to keep track of contract documentation and results.

Question 67

A(n)_________plan addresses evaluation criteria, how multiple vendors would be managed, and so on.

Question 68

A __________ is used to select vendors based on factors such as past performance, quality ratings, delivery performance, and contractual compliance.

Question 69

_________costs are the costs incurred by the vendor in the provision of the product or service.

Question 70

_________support models provide for the vendor to charge the client organization for each support related call the vendor handles.

Question 71

_________support model involve contracts where customers have the opportunity for unlimited contact with a vendor's technical support staff.

Question 72

It is possible to __________ a T&M contract by asking the vendor to provide a "not to exceed" price.

Question 73

Evaluation criteria can be subjective and _________.

Question 74

A(n)_________is a document provided to vendors to ask them to propose a solution to a specific problem related to the project.

Question 75

Organizations sometimes prepare _________of the price for whatever is being procured as a check against the prices offered in the proposals.

Question 76

Independent estimates are also called_________ estimates.

Question 77

Invitation for negotiation is another term for_________ .

Question 78

The practice of turning over the responsibility for developing or running a computer application to another organization is called __________ .

Question 79

Contract _________is part of the monitoring and controlling process group.

Question 80

The process_________ involves determining which project needs can best be met by going outside the project organization to obtain them.