Question 1

Monitoring contract performance and making changes or taking corrective actions when needed refers to which of the following Project Procurement Management processes?

Accepted Answer

Administer Procurements involves monitoring and managing contract performance and making changes or taking corrective actions when needed. Plan Procurements focuses on identifying what needs to be procured and developing a procurement management plan. Conduct Procurements involves obtaining seller responses, selecting a seller, and awarding a contract. Close Procurements involves completing and settling the procurement contract. Plan Exit Strategy is not a Project Procurement Management process but rather a part of the project closure process.

Question 2

Managing the relationship and contract between the buyer and seller is part of _____.

Accepted Answer

Administer Procurements involves managing the relationship and performance of the seller based on the terms of the contract. This includes monitoring, controlling and ensuring timely delivery of goods or services, managing changes, resolving conflicts and disputes, and making payments to the seller. Plan Procurements involves identifying the procurement needs and developing procurement management plan, Conduct Procurements involves obtaining seller responses, selecting the best seller and awarding the contract, Close Procurements involves contract closure activities and payment of the final invoices, while Plan Exit Strategy involves identifying a process for smooth exit from a procurement.

Question 3

Under this type of contract,the buyer pays the seller for the time and materials required to complete the work and the unit rates are set.

Accepted Answer

Time and Materials contract is a type of contract where the buyer pays the seller for the time and materials required to complete the work. The unit rates are usually set for labor, materials, and other expenses. This type of contract is commonly used when the project scope is not well defined or when the buyer wants more control over the project.

Question 4

A type of contract where the fixed price is negotiated or set as the final price for a specific product or service describes a:

Accepted Answer

A Fixed Price/Lump Sum contract is the type of contract where the price is predetermined and agreed upon by both parties. The contractor must deliver the product or service for the fixed price, regardless of any unexpected costs or additional work required.

Question 5

A contract…

Accepted Answer

All of the options mentioned are important components of a contract. They define the terms and conditions of a business agreement and ensure that both parties understand their responsibilities and obligations. Contracts help to establish trust and create a legally binding agreement, which is essential when dealing with business transactions.

Question 6

Negotiating,selecting,and contracting with a seller for a particular product of service refers to which of the following Project Procurement Management processes?

Accepted Answer

Negotiating, selecting, and contracting with a seller for a particular product or service is a part of the Conduct Procurements process. Plan Procurements process deals with determining what to procure, how much to procure, and when to procure it. Administer Procurements process deals with managing contracts and relationships with vendors. Close Procurements process deals with the completion and settlement of contracts. Plan Exit Strategy is not a part of Project Procurement Management processes.

Question 7

Obtaining bids,quotes,proposals,literature,and other information from potential sellers or service providers refers to which of the following Project Procurement Management processes?

Accepted Answer

The answer of Obtaining bids,quotes,proposals,literature,and other information from potential sellers...

Question 8

Completing and settling each contract after any open items or settlements are resolved refers to which of the following Project Procurement Management processes?

Accepted Answer

Closing Procurements involves completing and settling each contract after any open items or settlements are resolved, which is exactly the process mentioned in the question. Choice A (Plan Procurements) is about determining what to procure and when to procure it. Choice B (Conduct Procurements) is about obtaining seller responses and selecting a seller. Choice C (Administer Procurements) is about managing the relationship with the seller and ensuring that the seller performs according to the contract. Choice E (Plan Exit Strategy) is not a Project Procurement Management process.

Question 9

Determining whether the contract needs to be amended refers to which of the following Project Procurement Management processes?

Accepted Answer

Administer Procurements process involves managing procurement relationships, monitoring contract performance, and making changes and corrections as needed. Determining whether the contract needs to be amended falls under this process. The other processes listed focus on planning, conducting, and closing procurements, but do not specifically involve contract amendment decisions. Plan Exit Strategy is not a Project Procurement Management process.

Question 10

A _____ is when a consulting firm develops an application for a client at a negotiated price.

Accepted Answer

A fixed price/lump sum contract involves the consulting firm providing a set price for the development of the application for the client. This means the client knows exactly what they will pay for the application, and the consulting firm bears any additional costs or risks during development.

Question 11

Making decisions as to what will be purchased or acquired as well as determining the logistics of when purchases will be made and how refers to which of the following Project Procurement Management processes?

Accepted Answer

The process of Plan Procurements involves determining what to procure and when to procure it. It includes making decisions on whether to make or buy products or services, determining the best approach for procuring the necessary goods and services, and identifying potential sellers or suppliers. This process is focused on the planning stages of procurement management.

Question 12

Negotiating and awarding a contract to a seller for a specific product or service occurs in:

Accepted Answer

Conduct Procurements is the process of obtaining seller responses, selecting a seller with whom to negotiate, and negotiating a contract.

Question 13

Documenting the product,services,or results needed as well as identifying potential sellers,vendors,suppliers,contractors,subcontractors,or other service providers refers to which of the following Project Procurement Management processes?

Accepted Answer

The process of documenting the product, services, or results needed and identifying potential sellers, vendors, suppliers, contractors, subcontractors or other service providers is called Plan Procurements process. This process is a part of Project Procurement Management and is the first step in the procurement process of any project.

Question 14

Which of the following is NOT one of the Project Procurement Management processes outlined in the PMBOK Guide?

Accepted Answer

The Project Procurement Management processes outlined in the PMBOK Guide are:

1. Plan Procurements
2. Conduct Procurements
3. Administer Procurements
4. Close Procurements

"Plan Exit Strategy" is not a part of Project Procurement Management processes.

Question 15

Determining which project needs can be fulfilled internally by the project team and which can be met externally refers to which of the following Project Procurement Management processes?

Accepted Answer

The process of Plan Procurements involves identifying what project needs can be met internally by the project team and what needs to be outsourced. This process also includes developing procurement documentation and determining the type of contract that will be used for outsourcing procurement needs.

Question 16

Monitoring that all payments are made refers to which of the following Project Procurement Management processes?

Accepted Answer

Monitoring that all payments are made is part of the Administer Procurements process, which involves managing procurement relationships, monitoring contract performance, and making payments to vendors. Plan Procurements focuses on planning procurement activities, Conduct Procurements involves obtaining seller responses and selecting a seller, Close Procurements involves closing out contracts, and Plan Exit Strategy involves planning for the end of a project or contract.

Question 17

Managing scope in terms of its definition and change control refers to which of the following Project Procurement Management processes?

Accepted Answer

Managing scope in terms of its definition and change control refers to the Administer Procurements process in Project Procurement Management. This process involves managing the procurement relationships, monitoring contract performance, making changes and corrections as needed, and closing out contracts. The other options listed do not specifically address the management of scope in procurement.

Question 18

According to the PMBOK Guide,Project Procurement Management entails processes necessary to acquire:

Accepted Answer

Project Procurement Management is responsible for acquiring goods, services, and results needed to complete the project. This includes products, which are tangible items like materials or equipment; services, which are intangible items like consulting or training; and results, which are deliverables like a final product or service. Therefore, the correct answer is D, as all of the above options are included in Project Procurement Management.

Question 19

A _____ is when a consulting firm bills the client for developing an application based on the amount of time and cost of materials to complete the work.

Accepted Answer

A Time and Materials contract is a type of contract where the consulting firm bills the client for the time and materials required to complete the work. The cost of the project is uncertain, as it can vary depending on the amount of time and materials needed to complete it. This type of contract is usually used when the scope of the project is not well-defined or when there is a high level of uncertainty about the final outcome.

Question 20

Risk identification,monitoring,and control refers to which of the following Project Procurement Management processes?

Accepted Answer

Risk identification,monitoring,and control is part of the Administer Procurements process, which involves managing procurement relationships, monitoring contract performance, and making changes as necessary to achieve the project objectives. Plan Procurements focuses on documenting project requirements and identifying potential suppliers. Conduct Procurements involves obtaining quotations, bids, proposals, and selecting a vendor. Close Procurements involves completing all contractual obligations, finalizing and archiving all procurement documentation. Plan Exit Strategy is not a defined process in Project Procurement Management.

Quiz 12: Project Procurement Management and Outsourcing