Information Technology Project Management Chapter 12 Exam Questions and Answers Latest Update
Graded A+
Procurement - Answers acquiring goods and services from an outside source.
contract - Answers mutually binding agreement that obligates the seller to provide specified products or
services and obligates the buyer to pay for them—can clarify responsibilities and sharpen focus on key
deliverables of a project.
Project procurement management - Answers includes the processes
required to acquire goods and services for a project from outside the performing organization.
Sellers - Answers are providers, contractors, or suppliers who provide goods and services to other
organizations.
Planning procurement management - Answers involves determining what to procure and when and how
to do it.
Conducting procurements - Answers involves obtaining seller responses, selecting sellers, and awarding
contracts.
Controlling procurements - Answers involves managing relationships with sellers, monitoring contract
performance, and making changes as needed.
Closing procurements - Answers involves completion and settlement of each contract or agreement,
including resolution of any open items.
make-or-buy decision - Answers organization decides whether it should make certain products and
perform certain services inside the organization, or if it is better to buy those products and services from
an outside organization.
Fixed-price or lump-sum contracts - Answers involve a fixed total price for a well-defined product or
service.
Point of Total Assumption (PTA) - Answers cost at which the contractor assumes total responsibility for
each additional dollar of contract cost.
Cost-reimbursable contracts - Answers payment to the supplier for direct and indirect actual costs.
cost plus incentive fee (CPIF) contract - Answers the buyer pays the supplier for
allowable costs (as defined in the contract) along with a predetermined fee and an incentive bonus.
cost plus fixed fee (CPFF) contract - Answers contract, the buyer pays the supplier for allowable costs (as
defined in the contract) plus a fixed fee payment that is usually
based on a percentage of estimated costs.
Graded A+
Procurement - Answers acquiring goods and services from an outside source.
contract - Answers mutually binding agreement that obligates the seller to provide specified products or
services and obligates the buyer to pay for them—can clarify responsibilities and sharpen focus on key
deliverables of a project.
Project procurement management - Answers includes the processes
required to acquire goods and services for a project from outside the performing organization.
Sellers - Answers are providers, contractors, or suppliers who provide goods and services to other
organizations.
Planning procurement management - Answers involves determining what to procure and when and how
to do it.
Conducting procurements - Answers involves obtaining seller responses, selecting sellers, and awarding
contracts.
Controlling procurements - Answers involves managing relationships with sellers, monitoring contract
performance, and making changes as needed.
Closing procurements - Answers involves completion and settlement of each contract or agreement,
including resolution of any open items.
make-or-buy decision - Answers organization decides whether it should make certain products and
perform certain services inside the organization, or if it is better to buy those products and services from
an outside organization.
Fixed-price or lump-sum contracts - Answers involve a fixed total price for a well-defined product or
service.
Point of Total Assumption (PTA) - Answers cost at which the contractor assumes total responsibility for
each additional dollar of contract cost.
Cost-reimbursable contracts - Answers payment to the supplier for direct and indirect actual costs.
cost plus incentive fee (CPIF) contract - Answers the buyer pays the supplier for
allowable costs (as defined in the contract) along with a predetermined fee and an incentive bonus.
cost plus fixed fee (CPFF) contract - Answers contract, the buyer pays the supplier for allowable costs (as
defined in the contract) plus a fixed fee payment that is usually
based on a percentage of estimated costs.
