SIE 557 Final Exam Practice Questions
And Answers Guaranteed Solutions
2025\2026- 42
Materials - correct answers Which of the following is not considered a project indirect cost?
Supervision
Facilities
Materials
Interest
All of these are considered project indirect costs
Crashing a project reduces the length of critical activities only - correct answers Which of the following
statements regarding time-cost tradeoffs is true?
Crashing shortens the critical path by assigning more resources to one or more non-critical tasks
Crashing is not possible unless there are multiple critical paths
Crashing a project reduces the length of critical activities only
Project crashing is not effective when applied to tasks with zero slack
All of the above are false
Conflicts should be addressed early and usually in private, using a direct, collaborative approach -
correct answers Being assigned as a project manager, you noticed during project execution that conflicts
,arise in the team on both technical and interpersonal levels. What is an appropriate way of handling
conflicts?
Conflicts distract the team and disrupt the work rhythm. You should always smooth them when they
surface
Conflicts should be addressed early and usually in private, using a direct, collaborative approach
A conflict should be handled in a meeting so that the entire team can participate in finding a solution
You should use your coercive power to quickly resolve conflicts and then focus on goal achievement
$10,000 - correct answers •The following is provided for a Fixed Price Incentive Fee contract. Given the
actual cost is $150,000 how much profit (fee) does the seller make?
•Target cost $130,000
•Target fee $15,000
•Target price $145,000
•Sharing ratio 80/20
Ceiling price $160,000
$10,000
$15,000
$0
$5,000
,If the project budget is an honest one, then a reduction in budget must be accompanied by a trade-off in
either time or performance - correct answers Your management applies the 10 percent solution: It has
requested that you reduce the budget for the project which you are currently initiating by 10%. What
will this probably mean for your project?
If the budget is cut by 10%, then the project will have an accompanying degradation of quality by 10%
If the project budget is an honest one, then a reduction in budget must be accompanied by a trade-off in
either time or performance
A 10% reduction in budget will be accompanied by a loss of performance much less than the target
reduction in cost
Most projects have "padded" estimates, and the budgetary reduction will force out the padding from
the project
Bad grade is acceptable, but bad quality is not - correct answers Which of these is correct with respect
to a product developed or a service performed
Bad quality is acceptable, but bad grade is not
Bad grade is acceptable, but bad quality is not
Neither bad grade nor quality is acceptable
Grade and quality is the same thing
, Benchmarking - correct answers Which of the following is not a tool for Perform Quality Control process
Inspection
Benchmarking
Flow charting
Histogram
Talk with functional managers. Negotiate clear and written assignments with reliable scheduling
priorities - correct answers The members of your project team have been assigned to your project with
general availability levels of 50%. Yesterday, they reported to you that significant variances occurred
during project execution. You have noted that the team members have been spending less than 50% of
their time working on your project. Your project schedule is about to become heavily delayed, and
deadlines are in jeopardy. What should you do?
Ignore the difficulties, adjust your schedule and negotiate new deadlines according to the slower
progress
Talk to your sponsor and try to get more resources assigned on similar conditions as the existing ones
Talk with functional managers. Negotiate clear and written assignments with reliable scheduling
priorities
Focus on internal charges. Make sure that your project is not getting charged for more than the actual
work
Pareto diagram - correct answers You are the Project Manager for ABC project. You need to find out
which issue has maximum impact on the project. Which tool should you use?
Pareto diagram
And Answers Guaranteed Solutions
2025\2026- 42
Materials - correct answers Which of the following is not considered a project indirect cost?
Supervision
Facilities
Materials
Interest
All of these are considered project indirect costs
Crashing a project reduces the length of critical activities only - correct answers Which of the following
statements regarding time-cost tradeoffs is true?
Crashing shortens the critical path by assigning more resources to one or more non-critical tasks
Crashing is not possible unless there are multiple critical paths
Crashing a project reduces the length of critical activities only
Project crashing is not effective when applied to tasks with zero slack
All of the above are false
Conflicts should be addressed early and usually in private, using a direct, collaborative approach -
correct answers Being assigned as a project manager, you noticed during project execution that conflicts
,arise in the team on both technical and interpersonal levels. What is an appropriate way of handling
conflicts?
Conflicts distract the team and disrupt the work rhythm. You should always smooth them when they
surface
Conflicts should be addressed early and usually in private, using a direct, collaborative approach
A conflict should be handled in a meeting so that the entire team can participate in finding a solution
You should use your coercive power to quickly resolve conflicts and then focus on goal achievement
$10,000 - correct answers •The following is provided for a Fixed Price Incentive Fee contract. Given the
actual cost is $150,000 how much profit (fee) does the seller make?
•Target cost $130,000
•Target fee $15,000
•Target price $145,000
•Sharing ratio 80/20
Ceiling price $160,000
$10,000
$15,000
$0
$5,000
,If the project budget is an honest one, then a reduction in budget must be accompanied by a trade-off in
either time or performance - correct answers Your management applies the 10 percent solution: It has
requested that you reduce the budget for the project which you are currently initiating by 10%. What
will this probably mean for your project?
If the budget is cut by 10%, then the project will have an accompanying degradation of quality by 10%
If the project budget is an honest one, then a reduction in budget must be accompanied by a trade-off in
either time or performance
A 10% reduction in budget will be accompanied by a loss of performance much less than the target
reduction in cost
Most projects have "padded" estimates, and the budgetary reduction will force out the padding from
the project
Bad grade is acceptable, but bad quality is not - correct answers Which of these is correct with respect
to a product developed or a service performed
Bad quality is acceptable, but bad grade is not
Bad grade is acceptable, but bad quality is not
Neither bad grade nor quality is acceptable
Grade and quality is the same thing
, Benchmarking - correct answers Which of the following is not a tool for Perform Quality Control process
Inspection
Benchmarking
Flow charting
Histogram
Talk with functional managers. Negotiate clear and written assignments with reliable scheduling
priorities - correct answers The members of your project team have been assigned to your project with
general availability levels of 50%. Yesterday, they reported to you that significant variances occurred
during project execution. You have noted that the team members have been spending less than 50% of
their time working on your project. Your project schedule is about to become heavily delayed, and
deadlines are in jeopardy. What should you do?
Ignore the difficulties, adjust your schedule and negotiate new deadlines according to the slower
progress
Talk to your sponsor and try to get more resources assigned on similar conditions as the existing ones
Talk with functional managers. Negotiate clear and written assignments with reliable scheduling
priorities
Focus on internal charges. Make sure that your project is not getting charged for more than the actual
work
Pareto diagram - correct answers You are the Project Manager for ABC project. You need to find out
which issue has maximum impact on the project. Which tool should you use?
Pareto diagram
