Question 1

Suppose that the purchase price for a piece of equipment is $12,000,with operational costs of $400 per day.If the same equipment can be leased for $800 per day (inclusive of operational costs),after how many days will the lease cost equal the purchase cost?

Accepted Answer

The purchase cost is $12,000 plus $400 per day. The lease cost is $800 per day. Set the two equal: $12,000 + $400x = $800x. Solving for x gives x = 30 days.

Question 2

You would use a(n)____-or-buy analysis to decide whether to purchase or lease items for a particular project.

Accepted Answer

A lease-or-buy analysis helps in deciding whether it is more cost-effective to lease or purchase equipment for a project.

Question 3

Three broad categories of contracts are fixed price,or lump sum; ____; and time and material.

Accepted Answer

The best choice is cost reimbursable because it allows for costs to be reimbursed to the contractor, which can be beneficial in situations where the scope of work may change or there is uncertainty about the final cost. Option A, B, and C do not accurately describe a category of contracts.

Question 4

Under which risk register heading would you list identification of a defective hard drive as the source of a computer defect?

Accepted Answer

The identification of a defective hard drive as the cause of a computer defect would fall under the "root cause" heading in the risk register. This is because it is identifying the underlying cause of the risk event (the computer defect), rather than a potential response, category, or risk owner.

Question 5

You can help identify the root cause of problems by creating a cause-and-effect or ____ diagram.

Accepted Answer

A cause-and-effect diagram is also known as a fishbone diagram, because of its shape. It helps to visually identify the possible causes of a problem by breaking it down into smaller categories like people, process, equipment, materials, or environment. This diagram helps in the identification and analysis of the root cause of the problem. Therefore, the best choice is A, fishbone.

Question 6

Time-and-____ contracts are a hybrid of both fixed-price and cost reimbursable contracts.

Accepted Answer

Time-and-material contracts combine elements of both fixed-price and cost-reimbursable contracts, allowing for flexibility in labor and material costs while setting a ceiling price.

Question 7

Which of the following topics could you expect to find in a procurement management plan?

Accepted Answer

A procurement management plan often includes guidelines on the types of contracts to be used in different situations, as it outlines how procurement processes should be managed and executed.

Question 8

A ____ contract has the least amount of risk for the buyer.

Accepted Answer

A firm-fixed price contract puts most of the risk on the seller, as they have to deliver the agreed-upon product or service for a set price, regardless of any unexpected costs or challenges they may encounter. This makes it the least risky option for the buyer, as they don't have to worry about unexpected cost increases or delays.

Question 9

____ pricing can be used in various types of contracts to require the buyer to pay the supplier a predetermined amount per unit of service.

Accepted Answer

Unit pricing is used to establish a fixed rate for each unit of service provided, regardless of volume or other factors. This pricing method can be useful in contracts that require the supplier to provide a set number of services or products, and can help to ensure that the buyer knows exactly what they will be paying for each unit of service.

Question 10

Which of the following is a key output of project procurement management planning?

Accepted Answer

The key output of project procurement management planning is the contract statement of work, which is a detailed description of the goods or services to be obtained from outside the performing organization. Quality metrics and checklists are part of quality management planning, while a project website is a tool used for communication management.

Question 11

Under which risk register heading would you list a defective product,poor survey results,reduced consulting costs,or good publicity?

Accepted Answer

The risk register heading should indicate the name of the risk event. A defective product, poor survey results, reduced consulting costs, or good publicity are examples of risk events that should be listed under the risk register heading of "Risk Event Name". The other options listed are related to organization and categorization within the risk register, but do not specifically address the categorization of these types of risk events.

Question 12

____ plans are developed for risks that have a high impact on meeting project objectives,and are put into effect if attempts to reduce the risk are not effective.

Accepted Answer

Fallback plans are developed as a second line of defense, to be put into effect if attempts to reduce the risk are not effective. They are developed for risks that have a high impact on meeting project objectives. Emergency plans are developed for immediate response to unforeseen events, while secondary and support plans are developed as additional measures to support the primary risk management plan.

Question 13

There are ____ important dimensions of risk events.

Accepted Answer

The answer of There are ____ important dimensions of risk...

Question 14

As the business world continues to become more competitive and ____,more and more projects include procurement.

Accepted Answer

The word "competitive" suggests that the business world has become global, with companies from around the world competing for customers and market share. As a result, procurement (the process of purchasing goods and services) has become more important as companies seek to obtain the best products and services at the best prices from suppliers around the world. Provincial and local are too specific and may not reflect the global nature of business today, while regulated may not be the best choice as procurement is not necessarily subject to extensive regulation.

Question 15

____ are indicators or symptoms of actual risk events.

Accepted Answer

Triggers are events or factors that indicate or suggest the occurrence of a risk event. They serve as an alarm that prompts risk managers or decision-makers to initiate risk mitigation measures to avoid or reduce potential losses. Signals and flags are often used interchangeably to refer to warning signs of risk events. Monitors, on the other hand, are tools or systems that track and measure risk exposures or performance indicators over time.

Question 16

____ risk events might include the performance failure of a product produced as part of a project,delays in completing work as scheduled,increases in estimated costs,supply shortages,litigation against the company,and strikes.

Accepted Answer

Negative risk events are those that have a negative impact on the project objectives, such as delays, cost overruns, and performance failures. Hidden risks refer to those risks that are not obvious to the project team or stakeholders, calculated risks are those that are identified and assessed in advance, and countervailing risks are those that arise from taking a particular action aimed at mitigating other risks.

Question 17

____ contracts reduce the risk of incurring higher costs than expected.

Accepted Answer

Fixed-price contracts provide a set price for a project or service, which reduces the risk of incurring higher costs than initially agreed upon. This type of contract is more commonly used in situations where the scope of the work is well-defined and both parties have a clear understanding of the scope and expectations.

Question 18

Project ____ management includes acquiring or procuring goods and services for a project from outside the organization.

Accepted Answer

Procurement management involves identifying what goods and services need to be procured for a project and then finding vendors, negotiating contracts, and managing the logistics of delivery and payment. Logistics, supply, and acquisition may all be components of procurement management but do not encompass the entire process.

Question 19

____ risk events include completing work sooner than planned or at an unexpectedly reduced cost,collaborating with suppliers to produce better products,and obtaining good publicity from the project.

Accepted Answer

The events listed in the question are all positive outcomes, which eliminates choices A, C, and D. Therefore, the best choice is B, positive risk events.

Question 20

The costs of providing a work space for project workers,office furniture,electricity,and a cafeteria are ____ costs.

Accepted Answer

These costs are not directly related to the production of a specific product or service, but they are necessary for the overall operation of the business. They are indirectly related to the cost of production. Direct costs are those that are directly related to the production of a specific product or service, while explicit costs are those that are easily identified and calculated. Incidental costs are those that are unexpected and not planned for.

Quiz 5: Planning Projects, part 2 Project Quality, human Resource, communications, risk, and Procurement Management

Suppose that the purchase price for a piece of equipment is $12,000,with operational costs of $400 per day.If the same equipment can be leased for $800 per day (inclusive of operational costs) ,after how many days will the lease cost equal the purchase cost?

You would use a(n) ____-or-buy analysis to decide whether to purchase or lease items for a particular project.