CAPM Project Procurement Management 1

Question 1

Which document formally authorizes a project and identifies the project manager?

Accepted Answer

Project Charter

Answer

The Project Charter formally authorizes the project and grants the project manager authority to apply resources.

Question 2

What is the primary purpose of a Procurement Statement of Work (SOW)?

Accepted Answer

To describe the work to be done and deliverables expected from a seller

Answer

A Procurement SOW defines the portion of project scope to be delivered by a seller, providing enough detail for prospective sellers to determine if they can provide it.

Question 3

Which contract type places the most financial risk on the buyer?

Accepted Answer

Cost Plus Percentage of Cost (CPPC)

Answer

In a Cost Plus Percentage of Cost contract, the seller's profit increases as costs increase, giving the seller no incentive to control costs and placing maximum risk on the buyer.

Question 4

What is a Firm Fixed Price (FFP) contract?

Accepted Answer

A contract where the seller is paid a set price regardless of costs incurred

Answer

An FFP contract sets a fixed price that does not change regardless of the seller's actual costs, placing cost risk on the seller.

Question 5

Which process involves obtaining seller responses, selecting a seller, and awarding a contract?

Accepted Answer

Conduct Procurements

Answer

Conduct Procurements is the process of obtaining seller responses, selecting a seller, and awarding a contract.

CAPM - Certified Associate in Project Engineering Practice Test

CAPM - Certified Associate in Project Engineering Practice Test

CAPM Project Procurement Management 1