OM Project Management Fundamentals 2 — Questions and Answers
Question 1: A project manager notices that actual costs have exceeded the planned budget at the midpoint of a project. Which Earned Value metric best quantifies this variance?
- Schedule Variance (SV)
- Cost Variance (CV) (Correct answer)
- Cost Performance Index (CPI)
- Budget at Completion (BAC)
Correct answer: Cost Variance (CV)
Cost Variance (CV) = Earned Value minus Actual Cost, directly showing the dollar difference between work performed and money spent.
Question 2: In the PMBOK framework, which document formally authorizes a project and grants the project manager authority to apply organizational resources?
- Project Management Plan
- Project Charter (Correct answer)
- Scope Statement
- Statement of Work
Correct answer: Project Charter
The Project Charter formally authorizes the project and gives the project manager the authority to use organizational resources.
Question 3: During project execution, a key team member unexpectedly resigns. According to risk management best practices, this situation should have been addressed during which process?
- Risk Identification
- Risk Response Planning (Correct answer)
- Risk Monitoring and Control
- Risk Quantification
Correct answer: Risk Response Planning
Risk Response Planning is where strategies (like cross-training or succession planning) are developed for identified risks such as key personnel departure.
Question 4: A project has a BAC of $100,000, an EV of $40,000, and an AC of $50,000. What is the Estimate at Completion (EAC) assuming future work is performed at the current CPI?
- $110,000
- $120,000
- $125,000 (Correct answer)
- $150,000
Correct answer: $125,000
CPI = EV/AC = 0.8; EAC = BAC/CPI = $100,000/0.8 = $125,000.
Question 5: Which type of project dependency occurs when Activity B cannot start until Activity A finishes, and is established by contract or policy rather than logic?
- Finish-to-Start (mandatory)
- Discretionary dependency
- External dependency
- Mandatory dependency (Correct answer)
Correct answer: Mandatory dependency
Mandatory dependencies (hard logic) are contractually or legally required sequencing constraints between activities.
Question 6: A project manager wants to compress the schedule without changing project scope. Which technique involves adding resources to critical path activities?
- Fast tracking
- Crashing (Correct answer)
- Schedule compression
- Resource leveling
Correct answer: Crashing
Crashing adds resources (cost) to shorten duration on critical path activities, accepting increased cost as a trade-off.
Question 7: Stakeholder engagement should be actively managed throughout the project lifecycle. Which tool visually maps stakeholders by their level of authority and concern?
- RACI Matrix
- Stakeholder Register
- Power/Interest Grid (Correct answer)
- Responsibility Assignment Matrix
Correct answer: Power/Interest Grid
The Power/Interest Grid (or Power/Influence Grid) plots stakeholders on two axes to prioritize engagement strategies.
OM Project Management Fundamentals 2
A project manager notices that actual costs have exceeded the planned budget at the midpoint of a project.
Which Earned Value metric best quantifies this variance?