MEM Principles of Project Management 4 — Questions and Answers
Question 1: A project manager calculates an Estimate at Completion (EAC) using the formula EAC = BAC / CPI. Under what assumption is this formula most appropriate?
- Future work will be performed at the planned rate
- Future cost performance will mirror the current CPI (Correct answer)
- The remaining work has no cost risk
- The schedule variance will be recovered by project end
Correct answer: Future cost performance will mirror the current CPI
EAC = BAC / CPI assumes current spending efficiency will continue throughout the remainder of the project.
Question 2: Which document formally authorizes a project and names the project manager, granting authority to apply organizational resources?
- Project management plan
- Project charter (Correct answer)
- Business case
- Scope statement
Correct answer: Project charter
The project charter is issued by a sponsor and officially authorizes the project and the project manager's role.
Question 3: A project manager uses a probability-impact matrix. Which risk quadrant demands the MOST immediate attention?
- Low probability, high impact
- Low probability, low impact
- High probability, low impact
- High probability, high impact (Correct answer)
Correct answer: High probability, high impact
Risks with both high probability and high impact represent the greatest threat and require priority response planning.
Question 4: What is 'scope creep' in project management?
- Gradual reduction in project scope due to budget cuts
- Uncontrolled expansion of project scope without proper approval (Correct answer)
- Planned incremental additions documented in change orders
- Reassignment of work packages to different team members
Correct answer: Uncontrolled expansion of project scope without proper approval
Scope creep occurs when new features or work are added to a project without following the change control process.
Question 5: In earned value management, what does a negative Schedule Variance (SV) indicate?
- The project is over budget
- The project is behind schedule (Correct answer)
- The project is ahead of schedule
- The project has exceeded its scope baseline
Correct answer: The project is behind schedule
SV = EV − PV; a negative result means less work has been completed (earned) than was planned at that point in time.
Question 6: Which stakeholder engagement level is represented when a stakeholder actively participates and supports the project?
- Unaware
- Resistant
- Supportive
- Champion (Correct answer)
Correct answer: Champion
A champion actively promotes the project and uses their influence to ensure its success beyond mere support.
Question 7: A work breakdown structure (WBS) is considered complete when it reaches the level of:
- Project phases
- Work packages that can be estimated, scheduled, and assigned (Correct answer)
- Individual task steps for each team member
- Deliverables approved by the project sponsor
Correct answer: Work packages that can be estimated, scheduled, and assigned
Work packages are the lowest level of the WBS and represent discrete scope that can be reliably estimated and controlled.
MEM Principles of Project Management 4
A project manager calculates an Estimate at Completion (EAC) using the formula EAC = BAC / CPI.
Under what assumption is this formula most appropriate?