PMT 3600V EXAM 2 - ADVANCED
PROJECT MANAGEMENT MASTERY
QUESTIONS AND ANSWERS
1. A project manager is calculating the Estimate at Completion (EAC) for a project where the
original budget (BAC) was $500,000. Currently, the Actual Cost (AC) is $200,000 and the
Earned Value (EV) is $150,000. The project manager believes that the past variances are
typical and will likely continue. What is the EAC?
A. $600,000
B. $550,000
C. $450,000
D. $666,667
Answer: D
Conceptual Explanation: When variances are expected to continue, the formula EAC =
BAC / CPI is used. CPI = EV / AC = 150,,000 = 0.75. EAC = 500,.75 =
$666,667.
,2. On a critical path diagram, Activity A has a duration of 5 days and is the predecessor to
Activity B and C. B has a duration of 3 days and C has 7 days. If Activity B is delayed by 2 days,
what happens to the project completion date?
A. The project completion date remains unchanged.
B. The project is delayed by 5 days.
C. The project is delayed by 2 days.
D. The critical path shifts to include Activity B.
Answer: A
Conceptual Explanation: Activity B has float because it is on a parallel path with Activity
C, which is longer (7 days vs 3 days). A 2-day delay on B does not exceed the path
difference, so it does not affect the critical path.
3. A project team is performing ‘Quality Audits’ to ensure that the project is complying with
organizational policies and procedures. Which process are they currently engaged in?
A. Manage Quality
B. Plan Quality Management
C. Control Quality
D. Validate Scope
Answer: A
, Conceptual Explanation: Manage Quality (often called Quality Assurance) involves
auditing quality requirements and results from quality control measurements to ensure
appropriate quality standards are used.
4. During a risk assessment, a project manager identifies a risk with a 20% probability and a
negative impact of $50,000. To mitigate the risk, the team can spend $8,000 to reduce the
probability to 5%. What is the Expected Monetary Value (EMV) of the mitigated scenario?
A. $8,000
B. $2,500
C. $18,000
D. $10,500
Answer: D
Conceptual Explanation: EMV = (Probability * Impact) + Cost of Mitigation. EMV = (0.05 *
50,000) + 8,000 = 2,500 + 8,000 = $10,500.
5. A buyer and seller have entered into a Cost Plus Incentive Fee (CPIF) contract. The target
cost is $100,000, the target fee is $10,000, and the share ratio is 80/20 (buyer/seller). If the
actual cost is $80,000, what is the final fee paid to the seller?
A. $10,000
B. $14,000
C. $4,000
PROJECT MANAGEMENT MASTERY
QUESTIONS AND ANSWERS
1. A project manager is calculating the Estimate at Completion (EAC) for a project where the
original budget (BAC) was $500,000. Currently, the Actual Cost (AC) is $200,000 and the
Earned Value (EV) is $150,000. The project manager believes that the past variances are
typical and will likely continue. What is the EAC?
A. $600,000
B. $550,000
C. $450,000
D. $666,667
Answer: D
Conceptual Explanation: When variances are expected to continue, the formula EAC =
BAC / CPI is used. CPI = EV / AC = 150,,000 = 0.75. EAC = 500,.75 =
$666,667.
,2. On a critical path diagram, Activity A has a duration of 5 days and is the predecessor to
Activity B and C. B has a duration of 3 days and C has 7 days. If Activity B is delayed by 2 days,
what happens to the project completion date?
A. The project completion date remains unchanged.
B. The project is delayed by 5 days.
C. The project is delayed by 2 days.
D. The critical path shifts to include Activity B.
Answer: A
Conceptual Explanation: Activity B has float because it is on a parallel path with Activity
C, which is longer (7 days vs 3 days). A 2-day delay on B does not exceed the path
difference, so it does not affect the critical path.
3. A project team is performing ‘Quality Audits’ to ensure that the project is complying with
organizational policies and procedures. Which process are they currently engaged in?
A. Manage Quality
B. Plan Quality Management
C. Control Quality
D. Validate Scope
Answer: A
, Conceptual Explanation: Manage Quality (often called Quality Assurance) involves
auditing quality requirements and results from quality control measurements to ensure
appropriate quality standards are used.
4. During a risk assessment, a project manager identifies a risk with a 20% probability and a
negative impact of $50,000. To mitigate the risk, the team can spend $8,000 to reduce the
probability to 5%. What is the Expected Monetary Value (EMV) of the mitigated scenario?
A. $8,000
B. $2,500
C. $18,000
D. $10,500
Answer: D
Conceptual Explanation: EMV = (Probability * Impact) + Cost of Mitigation. EMV = (0.05 *
50,000) + 8,000 = 2,500 + 8,000 = $10,500.
5. A buyer and seller have entered into a Cost Plus Incentive Fee (CPIF) contract. The target
cost is $100,000, the target fee is $10,000, and the share ratio is 80/20 (buyer/seller). If the
actual cost is $80,000, what is the final fee paid to the seller?
A. $10,000
B. $14,000
C. $4,000
