Project Management - MCQs
Project Management - MCQs
a) Routine operations
b) Continuous production
c) Unique deliverables
d) Ongoing maintenance
a) Waterfall
b) Agile
c) Scrum
d) PRINCE2
Answer: d) PRINCE2
a) Predictive model
b) Incremental model
c) Spiral model
a) Technical expertise
b) Micromanagement
d) Resistance to change
Which project management process involves defining and documenting the project's objectives,
deliverables, and scope?
a) Project planning
b) Project initiation
c) Project execution
d) Project closure
Answer: b) Project initiation
Which project management knowledge area is responsible for identifying, analyzing, and managing risks
throughout the project lifecycle?
a) Quality management
b) Procurement management
c) Risk management
d) Stakeholder management
a) Time
b) Scope
c) Quality
d) Cost
Answer: d) Cost
Which project management technique involves breaking down project activities into smaller,
manageable components?
b) Gantt chart
a) Temporary in nature
b) Cross-functional teams
c) Hierarchical structure
d) Unique deliverable
a) Project
b) Geographic location
c) Department or function
d) Project phase
Which type of project organization structure provides the highest level of authority and control to the
project manager?
a) Functional organization
b) Matrix organization
c) Project-based organization
d) Network organization
Which type of PMO has the highest level of control and authority over projects?
a) Supportive PMO
b) Controlling PMO
c) Directive PMO
d) Functional PMO
Which type of PMO is typically responsible for managing and prioritizing the organization's project
portfolio?
a) Supportive PMO
b) Controlling PMO
c) Directive PMO
d) Strategic PMO
A project office that provides training and mentoring to project managers is an example of a:
a) Supportive PMO
b) Controlling PMO
c) Directive PMO
d) Functional PMO
i) Initiation phase
Which type of PMO primarily focuses on ensuring projects adhere to organizational standards and
policies?
a) Supportive PMO
b) Controlling PMO
c) Directive PMO
d) Strategic PMO
A PMO that is responsible for establishing project management methodologies, tools, and templates
throughout the organization is known as a:
a) Supportive PMO
b) Controlling PMO
c) Directive PMO
d) Functional PMO
Which type of project organization structure is suitable for highly complex projects that require
specialized skills and expertise?
a) Functional organization
b) Matrix organization
c) Project-based organization
d) Network organization
Which type of PMO provides a consultative role to project managers and stakeholders?
a) Supportive PMO
b) Controlling PMO
c) Directive PMO
d) Strategic PMO
Which approach involves assigning weights to different project criteria and evaluating projects based on
those weights?
i) Scoring model
) Which method of project selection uses a mathematical formula to calculate the present value of
expected cash flows?
i) Payback period
Which risk refers to the possibility that the project's objectives and deliverables may not be met within
the defined constraints?
i) Technical risk
i) Technical feasibility
a) Which approach involves ranking projects based on their overall desirability or priority?
i) Scoring model
a) Which method of project selection focuses on the time it takes to recover the initial investment?
i) Payback period
a) Which risk refers to the risk associated with changes in technology or technical specifications during
the project execution?
i) Technical risk
Feasibility Analysis:
i) Technical feasibility
ii) Financial feasibility
i) Scoring model
a) Which method of project selection uses a predetermined set of criteria and scores projects based on
those criteria?
i) Scoring model
a) Which risk refers to the risk associated with fluctuations in interest rates or exchange rates?
i) Financial risk
a) Direct costs
b) Indirect costs
c) Variable costs
d) Fixed costs
b) Labor costs
d) Marketing expenses
MCQ: Which of the following methods uses historical data to estimate costs?
a) Top-down estimating
b) Bottom-up estimating
c) Parametric estimating
d) Analogous estimating
a) It is time-consuming
Numeric MCQ: The budgeted cost of a project is $100,000. The actual cost incurred is $90,000. Calculate
the cost variance.
a) $10,000
b) $90,000
c) -$10,000
d) -$90,000
Answer: c) -$10,000
Numeric MCQ: The planned cost of a project is $50,000. The actual cost incurred is $45,000. Calculate
the cost performance index (CPI).
a) 1.11
b) 1.00
c) 0.90
d) 0.80
Answer: a) 1.11
Numeric MCQ: A project has a budget of $200,000 and a cost performance index (CPI) of 0.95. Calculate
the earned value (EV) of the project.
a) $190,000
b) $180,000
c) $190,500
d) $210,000
Answer: a) $190,000
Numeric MCQ: The actual cost of a project is $80,000, and the earned value (EV) is $75,000. Calculate
the cost variance (CV).
a) $5,000
b) $80,000
c) -$5,000
d) -$75,000
Answer: c) -$5,000
Numeric MCQ: A project has a budget of $100,000, and the earned value (EV) is $90,000. Calculate the
cost performance index (CPI).
a) 0.90
b) 1.00
c) 1.10
d) 1.20
Answer: c) 1.10
MCQ: Which of the following budgeting techniques involves allocating resources based on the expected
return on investment (ROI)?
a) Zero-based budgeting
b) Activity-based budgeting
c) Capital budgeting
d) Flexible budgeting
MCQ: Which of the following budgeting approaches involves setting budget targets based on the best-
performing units or individuals?
a) Incremental budgeting
b) Kaizen budgeting
c) Performance-based budgeting
d) Rolling budgeting
MCQ: Which of the following cost estimation techniques uses statistical analysis to identify cost drivers
and develop cost equations?
a) Regression analysis
b) Break-even analysis
MCQ: Which of the following budgeting techniques involves setting budgets based on a percentage
increase or decrease from the previous period?
a) Zero-based budgeting
b) Incremental budgeting
c) Activity-based budgeting
d) Beyond budgeting
Numeric MCQ: A project has a budgeted cost of $500,000 and an earned value (EV) of $450,000.
Calculate the schedule variance (SV) in dollars.
a) $50,000
b) -$50,000
c) $450,000
d) -$450,000
Answer: b) -$50,000
Numeric MCQ: A project has a budgeted cost of $200,000, an actual cost of $220,000, and an earned
value (EV) of $180,000. Calculate the cost performance index (CPI).
a) 0.82
b) 0.90
c) 1.10
d) 1.20
Answer: a) 0.82
Numeric MCQ: A project has a budgeted cost of $100,000, an earned value (EV) of $90,000, and a cost
variance (CV) of $5,000. Calculate the actual cost (AC) of the project.
a) $85,000
b) $95,000
c) $95,000
d) $105,000
Answer: b) $95,000
Numeric MCQ: A project has a budgeted cost of $150,000 and an earned value (EV) of $160,000.
Calculate the cost performance index (CPI).
a) 0.94
b) 1.00
c) 1.07
d) 1.13
Answer: c) 1.07
Numeric MCQ: A project has a budgeted cost of $50,000, an actual cost of $45,000, and an earned value
(EV) of $40,000. Calculate the schedule performance index (SPI).
a) 0.80
b) 0.90
c) 1.00
d) 1.10
Answer: b) 0.90
Types of Cost:
a) Fixed cost
b) Variable cost
c) Direct cost
Which cost is not considered in the calculation of the total project cost?
b) Overhead cost
c) Variable cost
d) Sunk cost
A company has a fixed monthly cost of $10,000 and a variable cost per unit of $5. If the company
produces and sells 2,000 units in a month, what is the total cost?
a) $5,000
b) $20,000
c) $15,000
d) $30,000
Answer: c) $15,000
A project's estimated cost is $50,000 with a contingency of 10%. What is the total budget, including the
contingency?
a) $50,000
b) $55,000
c) $60,000
d) $45,000
Answer: b) $55,000
A project's estimated cost is $100,000, and the actual cost is $120,000. What is the cost variance?
a) $20,000
b) $10,000
c) -$20,000
d) -$10,000
Answer: c) -$20,000
The actual cost of a project is $80,000, and the earned value is $75,000. What is the cost performance
index (CPI)?
a) 0.8
b) 1.2
c) 0.75
d) 1.25
Answer: b) 1.2
A company has a budget of $200,000 for a project. They have spent $150,000 so far. What is the budget
at completion (BAC)?
a) $200,000
b) $150,000
c) $350,000
d) $250,000
Answer: a) $200,000
d) Advertising expenses
a) Property taxes
b) Insurance premiums
c) Employee salaries
a) Project schedule
b) Project duration
d) Project scope
A project has a budget of $500,000. The project manager adds a contingency reserve of 10% to the
budget. What is the total budget, including the contingency?
a) $450,000
b) $550,000
c) $500,000
d) $510,000
Answer: b) $550,000
A project is estimated to cost $100,000. The actual cost incurred is $90,000. What is the cost variance?
a) $10,000
b) $90,000
c) $100,000
d) -$10,000
Answer: d) -$10,000
The earned value of a project is $75,000, and the actual cost is $80,000. What is the cost performance
index (CPI)?
a) 0.93
b) 1.07
c) 0.87
d) 1.25
Answer: b) 1.07
A project has a budget of $200,000 and is 50% complete. The actual cost incurred so far is $110,000.
What is the earned value (EV)?
a) $100,000
b) $50,000
c) $110,000
d) $200,000
Answer: a) $100,000
A company has a fixed cost of $10,000 and a variable cost per unit of $5. If the company wants to break
even and the selling price per unit is $20, how many units must be sold?
a) 500
b) 1,000
c) 2,000
d) 4,000
Answer: b) 1,000
Project Decisions:
a) Which of the following is NOT a project decision?
Project Charter:
i) The longest sequence of activities that determines the shortest possible project duration
iii) The path that involves the most stakeholders in the project
iv) The path that requires the least amount of project planning
Answer: i) The longest sequence of activities that determines the shortest possible project duration
iii) To break down the project into manageable tasks and subtasks
Answer: iii) To break down the project into manageable tasks and subtasks
RACI/RAM Model:
a) How many levels does a typical Work Breakdown Structure (WBS) have?
i) 2
ii) 3
iii) 4
iv) 5
Answer: iii) 4
a) How many roles can be assigned in the RACI/RAM model for a specific task?
i) 1
ii) 2
iii) 3
iv) 4
Answer: iv) 4
Project Decisions:
a) Which of the following factors is NOT typically considered when making project decisions?
i) Cost
ii) Time
iii) Quality
Project Charter:
i) Project manager
iv) Stakeholders
a) Gantt chart
In project scheduling, what does the term "critical path" refer to?
Answer: a) The longest sequence of activities that determines the project duration
a) Labor availability
b) Equipment availability
c) Budget constraints
d) Quality requirements
Which scheduling technique allows for flexibility in activity start and finish times?
a) Gantt chart
Numeric MCQs:
Activity A: 4 days
Activity B: 5 days
Activity C: 3 days
Activity D: 6 days
Activity E: 2 days
a) 12 days
b) 20 days
c) 18 days
d) 16 days
A project requires two resources: Resource X and Resource Y. Resource X is available for 8 hours per day,
and Resource Y is available for 6 hours per day. The project activities require the following resource
allocations:
a) 9 hours
b) 8 hours
c) 7 hours
d) 6 hours
A project has a budget of $50,000. The project manager has allocated the following costs for different
activities:
Activity A: $10,000
Activity B: $15,000
Activity C: $8,000
Activity D: $12,000
a) $35,000
b) $45,000
c) $50,000
d) $55,000
Which of the following techniques is used to allocate resources optimally in project management?
a) Resource leveling
b) Resource crashing
c) Resource histogram
In the context of project scheduling, what does the term "float" refer to?
a) The amount of time an activity can be delayed without delaying the project
Answer: a) The amount of time an activity can be delayed without delaying the project
Which of the following scheduling techniques considers both the project duration and the resource
availability?
a) Gantt chart
Which resource allocation technique involves assigning resources based on their availability and skill set?
a) Resource smoothing
b) Resource leveling
c) Resource histogram
Numeric MCQs:
A project consists of three activities with the following durations and dependencies:
Activity A: 4 days
a) 10 days
b) 15 days
c) 16 days
d) 19 days
A project requires three resources: Resource X, Resource Y, and Resource Z. The project activities require
the following resource allocations:
b) 8 hours
c) 10 hours
d) 7 hours
A project has a budget of $100,000. The project manager has allocated the following costs for different
activities:
Activity A: $20,000
Activity B: $30,000
Activity C: $15,000
Activity D: $25,000
a) 20%
b) 30%
c) 35%
d) 25%
Answer: b) 30% (Activity B cost divided by the total project budget, multiplied by 100)
Which of the following is NOT a commonly used method for project time estimation?
a) Analogous estimation
b) Parametric estimation
c) Delphi method
Which of the following is used to represent the precedence relationships between activities in a project
network?
a) Gantt chart
b) PERT chart
c) Resource histogram
a) The amount of time an activity can be delayed without delaying the project completion time
Answer: a) The amount of time an activity can be delayed without delaying the project completion time
a) Fast-tracking
b) Resource smoothing
c) Resource-constrained scheduling
Which of the following is a commonly used technique for project time estimation?
a) Brainstorming
b) Regression analysis
c) Pareto analysis
d) Benchmarking
a) Project scope
b) Project budget
c) Project stakeholders
d) Project milestones
Which of the following scheduling techniques allows for a probabilistic estimation of project duration?
c) Resource-constrained scheduling
a) Nodes
b) Activities
c) Milestones
d) Resources
Answer: d) Resources
c) Resource-constrained scheduling
a) Specific
b) Measurable
c) Achievable
d) Vague
Answer: d) Vague
a) Gantt chart
b) Control chart
c) Pareto chart
d) Fishbone diagram
The formula for calculating Schedule Variance (SV) in earned value analysis is:
a) SV = EV - PV
b) SV = AC - EV
c) SV = EV / PV
d) SV = EV / AC
Answer: a) SV = EV - PV
The formula for calculating Cost Variance (CV) in earned value analysis is:
a) CV = EV - PV
b) CV = AC - EV
c) CV = EV / PV
d) CV = EV / AC
Answer: b) CV = AC - EV
A project has a planned value (PV) of $10,000, an earned value (EV) of $8,000, and an actual cost (AC) of
$9,000. What is the Cost Variance (CV) for the project?
a) $1,000
b) -$1,000
c) $2,000
d) -$2,000
A project has a planned value (PV) of $20,000, an earned value (EV) of $18,000, and an actual cost (AC)
of $22,000. What is the Schedule Variance (SV) for the project?
a) $2,000
b) -$2,000
c) $4,000
d) -$4,000
a) Change control
b) Risk management
c) Quality assurance
d) Scope creep
Answer: d) Scope creep
a) Time
b) Cost
c) Quality
d) Creativity
Answer: d) Creativity
a) Risk register
b) Project charter
c) Stakeholder analysis
b) Pareto analysis
c) Control charts
d) SWOT analysis
The formula for calculating Cost Performance Index (CPI) in earned value analysis is:
a) CPI = EV / PV
b) CPI = EV - PV
c) CPI = AC / EV
d) CPI = AC - EV
Answer: c) CPI = AC / EV
A project has an Earned Value (EV) of $12,000 and an Actual Cost (AC) of $15,000. What is the Cost
Performance Index (CPI) for the project?
a) 0.8
b) 0.9
c) 1.2
d) 1.5
The formula for calculating Schedule Performance Index (SPI) in earned value analysis is:
a) SPI = EV / PV
b) SPI = EV - PV
c) SPI = AC / EV
d) SPI = AC - EV
Answer: a) SPI = EV / PV
A project has an Earned Value (EV) of $24,000 and a Planned Value (PV) of $20,000. What is the Schedule
Performance Index (SPI) for the project?
a) 0.8
b) 0.9
c) 1.2
d) 1.5
a) Gantt chart
b) Brainstorming
c) Benchmarking
A) Normal termination.
B) Premature termination.
C) Forced termination.
D) Aggressive termination.
A) Normal termination.
B) Controlled termination.
C) Uncontrolled termination.
MCQ: Which of the following activities are typically included in post-project activities?
Numeric: Calculate the ROI for a project that had an initial investment of $100,000 and generated a net
profit of $50,000.
ROI = 50%
Numeric: During a project closure, 100 project team members were released, and 25 contractors were
terminated. How many resources were released in total?
Answer: Total released resources = Project team members + Contractors
MCQ: What is the purpose of a project review and evaluation in post-project activities?
Numeric: The planned duration of a project was 12 months, but it was completed in 10 months.
Calculate the schedule performance index (SPI) for the project.
SPI ≈ 0.83
Numeric: The initial investment for a project was $500,000, and the total benefits realized from the
project were $700,000. Calculate the return on investment (ROI) as a percentage.
ROI = 40%
Multiple Choice Question: Which of the following is a primary function of a Project Management
Information System (PMIS)?
Numeric Question: A project has a duration of 20 weeks and a budget of $100,000. After 10 weeks, the
project is 50% complete. What is the Cost Performance Index (CPI) of the project?
Multiple Choice Question: Which of the following is a benefit of using a Project Management
Information System (PMIS)?
a) Improved communication and collaboration
b) Enhanced decision-making
Numeric Question: A company wants to archive historical project information from the past five years.
Each project generates an average of 500 MB of data. If the company completed 100 projects during that
period, what is the total storage capacity required to archive all the historical information?
Answer: Total storage capacity = Data generated per project * Number of projects
Therefore, the total storage capacity required to archive all the historical information is 50,000 MB.
Multiple Choice Question: Which of the following is an advantage of archiving historical information in
project management?
Multiple Choice Question: Which computer application is commonly used for project scheduling and
critical path analysis?
a) Microsoft Word
b) Microsoft Excel
c) Microsoft Project
d) Microsoft PowerPoint
Numeric Question: A project has a planned duration of 8 weeks and a budget of $50,000. After 4 weeks,
the project is 25% complete. What is the Schedule Performance Index (SPI) of the project?
Which of the following is NOT a typical function of a Project Management Information System (PMIS)?
b) Risk management
c) Stakeholder analysis
Which computer application is commonly used for risk assessment and management in project
management?
a) Microsoft Word
b) Microsoft Excel
c) Microsoft Project
d) Microsoft Visio
Which of the following is a key benefit of using computer applications in project management?
Which computer application is commonly used for document management in project management?
a) Microsoft Word
b) Microsoft Excel
c) Microsoft PowerPoint
d) Microsoft SharePoint
Which of the following is a commonly used project management software that supports collaboration
and task management?
a) Trello
b) Adobe Photoshop
c) Microsoft Excel
d) Google Chrome
Answer: a) Trello
Which computer application is commonly used for resource leveling and allocation in project
management?
a) Microsoft PowerPoint
b) Microsoft Project
c) Microsoft Outlook
d) Microsoft Access
Which computer application is commonly used for risk identification and analysis in project
management?
a) Microsoft Word
b) Microsoft Excel
c) Microsoft PowerPoint
d) Microsoft Teams
a) Excel
b) PowerPoint
c) Microsoft Word
d) Microsoft Project
a) Gantt charts
b) Pivot tables
c) Flowcharts
d) Histograms
a) Budget tracking
b) Resource allocation
d) Task prioritization
a) Trello
b) Excel
c) Notion
d) Adobe Photoshop
Answer: a) Trello
Which feature of project management software allows users to assign tasks to team members and set
deadlines?
a) Kanban boards
b) Data visualization
c) Word processing
d) Video editing
The primary goal of using project management software in an MBA program is to:
b) Resource leveling
c) Audio editing
d) Progress reporting
d) Photography techniques
Which aspect of project management software allows users to evaluate project performance and make
necessary adjustments?
a) Risk assessment
b) Quality control
c) Event planning
d) Performance tracking
The implementation of project management software in MBA programs helps students develop:
a) Teamwork and collaboration skills
b) Culinary expertise
How can project management software aid in the development of a Work Breakdown Structure (WBS)?
b) It allows for the easy visualization and hierarchical organization of project tasks
Answer: b) It allows for the easy visualization and hierarchical organization of project tasks
d) Allocating the necessary resources (e.g., human, financial, material) to project activities
Answer: d) Allocating the necessary resources (e.g., human, financial, material) to project activities