GIAC GCPM Exam Practice Questions (P. 5)
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Question #41
The Project Communications Management knowledge area focuses on which of the following processes?
Each correct answer represents a complete solution. Choose all that apply.
Each correct answer represents a complete solution. Choose all that apply.
- ACreate Work Breakdown Structure (WBS)
- BDistribute Information
- CReport Performance
- DIdentify Stakeholders
Correct Answer:
BCD
Answer options C, B, and D are correct.
Project Communications Management is one of the nine Knowledge Areas. It employs the processes required to ensure timely and appropriate generation, collection, distribution, storage, retrieval, and ultimate disposition of project information. The following processes are part of Project Communications
Management:
✑ Identify Stakeholders
✑ Plan Communications
✑ Distribute Information
✑ Manage Stakeholder Expectations
✑ Report Performance
The Project Communications Management processes provide the critical links among people and information that are necessary for successful communication.
These processes interact with each other and with the processes in the other Knowledge Areas as well.
Answer option A is incorrect. The Create Work Breakdown Structure (WBS) process is associated with the Project Scope Management knowledge area.
Reference:
http://www.preparepm.com/notes/communication.html
Chapter: Communications and Human Resources
Objective: Interpersonal Communication Skills
BCD
Answer options C, B, and D are correct.
Project Communications Management is one of the nine Knowledge Areas. It employs the processes required to ensure timely and appropriate generation, collection, distribution, storage, retrieval, and ultimate disposition of project information. The following processes are part of Project Communications
Management:
✑ Identify Stakeholders
✑ Plan Communications
✑ Distribute Information
✑ Manage Stakeholder Expectations
✑ Report Performance
The Project Communications Management processes provide the critical links among people and information that are necessary for successful communication.
These processes interact with each other and with the processes in the other Knowledge Areas as well.
Answer option A is incorrect. The Create Work Breakdown Structure (WBS) process is associated with the Project Scope Management knowledge area.
Reference:
http://www.preparepm.com/notes/communication.html
Chapter: Communications and Human Resources
Objective: Interpersonal Communication Skills
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Question #42
In which of the following processes are the results of executing the quality activities recorded and monitored in order to assess performance and recommend necessary changes?
- APlan Quality
- BPerform Quality Assurance
- CControl Cost
- DPerform Quality Control
Correct Answer:
D
Answer option D is correct.
The Perform Quality Control process is one of the ten processes grouped in the Monitoring and Controlling Process group. During the Perform Quality Control process, results of executing the quality activities are recorded and monitored in order to assess performance and recommend necessary changes.
Inputs -
Following are the seven inputs for the Perform Quality Control process:
✑ Project management plan
✑ Quality metrics
✑ Quality checklists
✑ Work performance measurements
✑ Approved change requests
✑ Deliverables
✑ Organizational process assets
Outputs -
Following are the seven outputs of the Perform Quality Control process:
Quality control measurements -

✑ Validated changes
✑ Validated deliverables
✑ Organizational process assets updates
✑ Change requests
✑ Project management plan updates
✑ Project document updates
✑ Answer option A is incorrect. The Plan Quality process is for identifying quality requirements and standards for the project and product. This process also documents how the project will demonstrate compliance.
Inputs -
Following are the seven inputs of the Plan Quality process:
✑ Scope baseline
✑ Stakeholder register
✑ Cost performance baseline
✑ Schedule baseline
✑ Risk register
✑ Enterprise environmental factors
✑ Organizational process assets
Outputs -
The Plan Quality process has the following five outputs:
✑ Quality Management plan
✑ Quality metrics
✑ Quality checklists
✑ Process improvement plan
✑ Project document updates
Answer option B is incorrect. The Perform Quality Assurance process is used to review the quality requirements and outcomes from quality control measurements to make sure the quality standards are up to mark.
Answer option C is incorrect. The Control Cost process is used to examine the condition of the project to update the project budget and deal with changes to cost baseline.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Quality and Risk Management
Objective: Quality Control and Change Control
D
Answer option D is correct.
The Perform Quality Control process is one of the ten processes grouped in the Monitoring and Controlling Process group. During the Perform Quality Control process, results of executing the quality activities are recorded and monitored in order to assess performance and recommend necessary changes.
Inputs -
Following are the seven inputs for the Perform Quality Control process:
✑ Project management plan
✑ Quality metrics
✑ Quality checklists
✑ Work performance measurements
✑ Approved change requests
✑ Deliverables
✑ Organizational process assets
Outputs -
Following are the seven outputs of the Perform Quality Control process:
Quality control measurements -

✑ Validated changes
✑ Validated deliverables
✑ Organizational process assets updates
✑ Change requests
✑ Project management plan updates
✑ Project document updates
✑ Answer option A is incorrect. The Plan Quality process is for identifying quality requirements and standards for the project and product. This process also documents how the project will demonstrate compliance.
Inputs -
Following are the seven inputs of the Plan Quality process:
✑ Scope baseline
✑ Stakeholder register
✑ Cost performance baseline
✑ Schedule baseline
✑ Risk register
✑ Enterprise environmental factors
✑ Organizational process assets
Outputs -
The Plan Quality process has the following five outputs:
✑ Quality Management plan
✑ Quality metrics
✑ Quality checklists
✑ Process improvement plan
✑ Project document updates
Answer option B is incorrect. The Perform Quality Assurance process is used to review the quality requirements and outcomes from quality control measurements to make sure the quality standards are up to mark.
Answer option C is incorrect. The Control Cost process is used to examine the condition of the project to update the project budget and deal with changes to cost baseline.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Quality and Risk Management
Objective: Quality Control and Change Control
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Question #43
Which of the following theories describes the statement below?
"It states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction."
"It states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction."
- AHerzberg's theory
- BOuchi's Theory Z
- CMcGregor's X and Y
- DExpectancy theory
Correct Answer:
A
Answer option A is correct.
Herzberg's Motivation-Hygiene Theory, also known as Two Factor Theory, was developed by Frederick Herzberg, a psychologist who found that job satisfaction and job dissatisfaction acted independently of each other. Two Factor Theory states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction. Two Factor Theory distinguishes between the following:
✑ Motivators (e.g. challenging work, recognition, responsibility) which give positive satisfaction, arising from intrinsic conditions of the job itself, such as recognition, achievement, or personal growth.
✑ Hygiene factors (e.g. status, job security, salary and fringe benefits) which do not give positive satisfaction, although dissatisfaction results from their absence.
These are extrinsic to the work itself, and include aspects, such as company policies, supervisory practices, or wages/salary.
Essentially, hygiene factors are needed to ensure an employee is not dissatisfied. Motivation factors are needed in order to motivate an employee to higher performance, Herzberg also further classified our actions and how and why we do them, for example, if you perform a work-related action because you have to, then that is classed as movement, but if you perform a work-related action because you want to, then that is classed as motivation.
Answer option B is incorrect. Ouchi's Theory Z, also known as the Japanese management style, believes in participative management. The organization is more of a familiar environment, and the organization strives for lifelong employment. Theory Z is the name applied to two competing management theories. In contrast to
Theory X, which stated that workers inherently dislike and avoid work and must be driven to it, and Theory Y, which stated that work is natural and can be a source of satisfaction when aimed at higher order human psychological needs, Theory Z focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job. According to Ouchi, Theory Z management tends to promote stable employment, high productivity, and high employee morale and satisfaction.
Answer option C is incorrect. McGregor's X and Y theory describes the project team members and their behavior on the project and how management responds.
Answer option D is incorrect. Expectancy theory is about choice. It explains the processes that an individual undergoes to make choices. In organizational behavior study, expectancy theory is a motivation theory first proposed by Victor Vroom of the Yale School of Management. Expectancy theory predicts that employees in an organization will be motivated when they believe that:
✑ putting in more effort will yield better job performance
✑ better job performance will lead to organizational rewards, such as an increase in salary or benefits these predicted organizational rewards are valued by the employee in question.

In order to enhance the performance-outcome tie, managers should use systems that tie rewards very closely to performance. Managers also need to ensure that the rewards provided are deserved and wanted by the recipients. In order to improve the effort-performance tie, managers should engage in training to improve their capabilities and improve their belief that added effort will in fact lead to better performance.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Communications and Human Resources
Objective: Team Building
A
Answer option A is correct.
Herzberg's Motivation-Hygiene Theory, also known as Two Factor Theory, was developed by Frederick Herzberg, a psychologist who found that job satisfaction and job dissatisfaction acted independently of each other. Two Factor Theory states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction. Two Factor Theory distinguishes between the following:
✑ Motivators (e.g. challenging work, recognition, responsibility) which give positive satisfaction, arising from intrinsic conditions of the job itself, such as recognition, achievement, or personal growth.
✑ Hygiene factors (e.g. status, job security, salary and fringe benefits) which do not give positive satisfaction, although dissatisfaction results from their absence.
These are extrinsic to the work itself, and include aspects, such as company policies, supervisory practices, or wages/salary.
Essentially, hygiene factors are needed to ensure an employee is not dissatisfied. Motivation factors are needed in order to motivate an employee to higher performance, Herzberg also further classified our actions and how and why we do them, for example, if you perform a work-related action because you have to, then that is classed as movement, but if you perform a work-related action because you want to, then that is classed as motivation.
Answer option B is incorrect. Ouchi's Theory Z, also known as the Japanese management style, believes in participative management. The organization is more of a familiar environment, and the organization strives for lifelong employment. Theory Z is the name applied to two competing management theories. In contrast to
Theory X, which stated that workers inherently dislike and avoid work and must be driven to it, and Theory Y, which stated that work is natural and can be a source of satisfaction when aimed at higher order human psychological needs, Theory Z focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job. According to Ouchi, Theory Z management tends to promote stable employment, high productivity, and high employee morale and satisfaction.
Answer option C is incorrect. McGregor's X and Y theory describes the project team members and their behavior on the project and how management responds.
Answer option D is incorrect. Expectancy theory is about choice. It explains the processes that an individual undergoes to make choices. In organizational behavior study, expectancy theory is a motivation theory first proposed by Victor Vroom of the Yale School of Management. Expectancy theory predicts that employees in an organization will be motivated when they believe that:
✑ putting in more effort will yield better job performance
✑ better job performance will lead to organizational rewards, such as an increase in salary or benefits these predicted organizational rewards are valued by the employee in question.

In order to enhance the performance-outcome tie, managers should use systems that tie rewards very closely to performance. Managers also need to ensure that the rewards provided are deserved and wanted by the recipients. In order to improve the effort-performance tie, managers should engage in training to improve their capabilities and improve their belief that added effort will in fact lead to better performance.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Communications and Human Resources
Objective: Team Building
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Question #44
Which of the following techniques is described in the statement below?
"It is used to verify whether a particular work can best be accomplished by the project team or must be purchased from outside sources."
"It is used to verify whether a particular work can best be accomplished by the project team or must be purchased from outside sources."
- ARisk analysis
- BExpert judgment
- CMake-or-Buy analysis
- DContract type
Correct Answer:
C
Answer option C is correct.
A make-or-buy analysis is used to verify whether a particular work can best be accomplished by the project team or must be purchased from outside sources. The budget constraints can influence the make-or-buy decisions. A make-or-buy analysis must consider all related costs; both direct and indirect support costs.
Answer option A is incorrect. Risk analysis is a method or a technique that can be used to identify and assess factors that may hinder the successful completion of a project or the achievement of a goal. It is also known as Project Impact Analysis or PIA. Risk analysis can also be used to determine business needs to start a project.
Answer option B is incorrect. Expert Judgment is a term that refers a specifically to a technique in which judgment is made based upon a specific set of criteria and/or expertise that has been acquired in a specific knowledge area, or product area, a particular discipline, an industry, etc. When project conflicts arise, expert judgment is used to evaluate the inputs into the process. Specifically, expert judgment is used to assess the product description, the project-selection criteria, and the validity of the historical information. In addition, expert judgment could be used to identify key assumptions and constraints. The expert can be anyone from within or external to the project team that has the required specialized knowledge and/or experience relevant to the goals of the project can be used as a source of expert judgment. Just who is an expert? While SMEs (Subject Matter Experts), customers, industry experts, consultants are all examples of experts, it doesn't have to be a person who is considered the ultimate in that sphere. It could be anyone who has the required experience to provide the input and judgment required to address the conflict.
Answer option D is incorrect. The type of contract to be used and the specific contract terms and conditions fix the degree of risk being assumed by the buyer and seller.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Procurement and Project Integration
Objective: Make vs. Buy Analysis
C
Answer option C is correct.
A make-or-buy analysis is used to verify whether a particular work can best be accomplished by the project team or must be purchased from outside sources. The budget constraints can influence the make-or-buy decisions. A make-or-buy analysis must consider all related costs; both direct and indirect support costs.
Answer option A is incorrect. Risk analysis is a method or a technique that can be used to identify and assess factors that may hinder the successful completion of a project or the achievement of a goal. It is also known as Project Impact Analysis or PIA. Risk analysis can also be used to determine business needs to start a project.
Answer option B is incorrect. Expert Judgment is a term that refers a specifically to a technique in which judgment is made based upon a specific set of criteria and/or expertise that has been acquired in a specific knowledge area, or product area, a particular discipline, an industry, etc. When project conflicts arise, expert judgment is used to evaluate the inputs into the process. Specifically, expert judgment is used to assess the product description, the project-selection criteria, and the validity of the historical information. In addition, expert judgment could be used to identify key assumptions and constraints. The expert can be anyone from within or external to the project team that has the required specialized knowledge and/or experience relevant to the goals of the project can be used as a source of expert judgment. Just who is an expert? While SMEs (Subject Matter Experts), customers, industry experts, consultants are all examples of experts, it doesn't have to be a person who is considered the ultimate in that sphere. It could be anyone who has the required experience to provide the input and judgment required to address the conflict.
Answer option D is incorrect. The type of contract to be used and the specific contract terms and conditions fix the degree of risk being assumed by the buyer and seller.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Procurement and Project Integration
Objective: Make vs. Buy Analysis
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Question #45
Which of the following tasks are performed by the scope development process?
- ATo facilitate clear responsibility assignments
- BTo define a baseline for performance measurement and control
- CTo improve the accuracy of cost, duration, and resource estimates
- DTo determine whether a scope change has occurred
Correct Answer:
ABC
Answer options C, B, and A are correct.
The tasks performed by the scope development process are as follows:
✑ To improve the accuracy of cost, duration, and resource estimates
✑ To define a baseline for performance measurement and control
✑ To facilitate clear responsibility assignments
Answer option D is incorrect. This task is performed by the scope change control process.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Project Charter and Scope Management
Objective: Project Scope Development
ABC
Answer options C, B, and A are correct.
The tasks performed by the scope development process are as follows:
✑ To improve the accuracy of cost, duration, and resource estimates
✑ To define a baseline for performance measurement and control
✑ To facilitate clear responsibility assignments
Answer option D is incorrect. This task is performed by the scope change control process.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Project Charter and Scope Management
Objective: Project Scope Development
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Question #46
You work as a project manager for BlueWell Inc. You are currently working with the project stakeholders to identify risks in your project. You understand that the qualitative risk assessment and analysis can reflect the attitude of the project team and other stakeholders to risk. Effective assessment of risk requires management of the risk attitudes of the participants. What should you, the project manager, do with assessment of identified risks in consideration of the attitude and bias of the participants towards the project risk?
- ADocument the bias for the risk events and communicate the bias with management
- BEvaluate the bias through SWOT for true analysis of the risk events
- CEvaluate the bias towards the risk events and correct the assessment accordingly
- DEvaluate and document the bias towards the risk events
Correct Answer:
C
Answer option C is correct.
The negative or positive bias towards risk events should be analyzed and then the risk assessment adjusted accordingly. As establishing definitions of the level of probability and impact can reduce the influence of bias.
Answer option D is incorrect. Documenting the bias does not respond to the bias itself which can affect the ability to effectively manage the risk events.
Answer option A is incorrect. The project manager should address and correct the bias rather than simply communicating the bias to management.
Answer option B is incorrect. SWOT analysis is not needed for the bias towards the project risk.
Reference: "Project Management Body of Knowledge (PMBOK Guide)"
Chapter: Quality and Risk Management
Objective: Risk Identification and Assessment
C
Answer option C is correct.
The negative or positive bias towards risk events should be analyzed and then the risk assessment adjusted accordingly. As establishing definitions of the level of probability and impact can reduce the influence of bias.
Answer option D is incorrect. Documenting the bias does not respond to the bias itself which can affect the ability to effectively manage the risk events.
Answer option A is incorrect. The project manager should address and correct the bias rather than simply communicating the bias to management.
Answer option B is incorrect. SWOT analysis is not needed for the bias towards the project risk.
Reference: "Project Management Body of Knowledge (PMBOK Guide)"
Chapter: Quality and Risk Management
Objective: Risk Identification and Assessment
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Question #47
You are the project manager for your organization and are planning the project work with your project team. You are currently breaking down the project scope into work packages to determine an accurate time and cost estimate. What document are you and the project team creating?
- AWork breakdown structure
- BProject scope
- CCode of accounts
- DWork breakdown dictionary
Correct Answer:
A
Answer option A is correct.
The decomposition of the project scope results in the project's work breakdown structure (WBS). The work packages of the WBS will help the project manager and team create accurate time and cost estimates.
Work Breakdown Structure (WBS)
A Work Breakdown Structure (WBS) is a visual decomposition of the project scope. The project scope is taken and broken down into smaller, more manageable units. Each of these units can be broken down again and again until you define the smallest item in the WBS called the work package.
Project groups and the project's discrete work elements are defined in a way that helps organize and define the total work scope of the project. A WBS element may be a product, data, a service, or any combination. WBS also provides the necessary framework for detailed cost estimating and control along with providing guidance for schedule development and control.
Answer option D is incorrect. This document is not a WBS dictionary. A WBS dictionary includes entries for each WBS component that briefly defines the scope or statement of the work, defines deliverables, contains a list of associated activities, and provides a list of recognized milestones to gauge progress.
Answer option B is incorrect. The project scope precedes the creation of the WBS, as it is what the WBS is based on.
Answer option C is incorrect. The code of accounts is a numbering system to identify the components of the WBS.
Reference: The Project Management Body of Knowledge, Fifth edition, Section 5.4, Page 125
Chapter: Project Charter and Scope Management
Objective: Work Breakdown Structures
A
Answer option A is correct.
The decomposition of the project scope results in the project's work breakdown structure (WBS). The work packages of the WBS will help the project manager and team create accurate time and cost estimates.
Work Breakdown Structure (WBS)
A Work Breakdown Structure (WBS) is a visual decomposition of the project scope. The project scope is taken and broken down into smaller, more manageable units. Each of these units can be broken down again and again until you define the smallest item in the WBS called the work package.
Project groups and the project's discrete work elements are defined in a way that helps organize and define the total work scope of the project. A WBS element may be a product, data, a service, or any combination. WBS also provides the necessary framework for detailed cost estimating and control along with providing guidance for schedule development and control.
Answer option D is incorrect. This document is not a WBS dictionary. A WBS dictionary includes entries for each WBS component that briefly defines the scope or statement of the work, defines deliverables, contains a list of associated activities, and provides a list of recognized milestones to gauge progress.
Answer option B is incorrect. The project scope precedes the creation of the WBS, as it is what the WBS is based on.
Answer option C is incorrect. The code of accounts is a numbering system to identify the components of the WBS.
Reference: The Project Management Body of Knowledge, Fifth edition, Section 5.4, Page 125
Chapter: Project Charter and Scope Management
Objective: Work Breakdown Structures
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Question #48
You are a new Project Manager that has been entrusted with a software development project. You have started building the list of activities and sequencing them for your project schedule model. As part of the activities, you have identified that your project team will need to start resolving the defects that come out of the User
Testing, 5 days after the testing starts. Which of the following would be the correct way to represent this logical relationship between the activities?
Testing, 5 days after the testing starts. Which of the following would be the correct way to represent this logical relationship between the activities?
- AStart to Start Dependency, with 5 days lead.
- BFinish to Start Dependency
- CStart to Start Dependency with 5 days lag.
- DFinish to Finish Dependency, with constraint to start after 5 days.
Correct Answer:
C
Answer option C is correct.
As per the question, defect resolution starts 5 days after the user testing starts. In this scenario, the best way to represent this relationship is to use Start to Start
Dependency with 5 days lag. A lag directs a delay to a successor activity.
Lag -
A lag directs a delay in the successor activity. Lags require the dependent activity to have added either to the start date or to the finish date of the activity. For example, in a project of making radio-controlled airplanes, after applying glue and pasting stickers, it requires twenty-four hours to dry the glue. Any activity can be started after that only. This period, of twenty-four hours, is a lag.
Answer option A is incorrect. Since a lead accelerates the successor activity, using Start to Start with 5 days lead will result in starting defect resolution 5 days
BEFORE the user testing starts, which is not the scenario here.
Answer option D is incorrect. Since the question does not require user testing and defect resolution to finish at the same time, using Finish to Finish dependency does not make sense.
Answer option B is incorrect. The scenario in the question clearly indicates for a lag to be applied, which is not discussed in this option.
Reference: The Project Management Body of Knowledge, Fifth edition, Section 6.3.2.1, Page 156
Chapter: Time and Cost Management
Objective: Task Lead and Lag Dependencies
C
Answer option C is correct.
As per the question, defect resolution starts 5 days after the user testing starts. In this scenario, the best way to represent this relationship is to use Start to Start
Dependency with 5 days lag. A lag directs a delay to a successor activity.
Lag -
A lag directs a delay in the successor activity. Lags require the dependent activity to have added either to the start date or to the finish date of the activity. For example, in a project of making radio-controlled airplanes, after applying glue and pasting stickers, it requires twenty-four hours to dry the glue. Any activity can be started after that only. This period, of twenty-four hours, is a lag.
Answer option A is incorrect. Since a lead accelerates the successor activity, using Start to Start with 5 days lead will result in starting defect resolution 5 days
BEFORE the user testing starts, which is not the scenario here.
Answer option D is incorrect. Since the question does not require user testing and defect resolution to finish at the same time, using Finish to Finish dependency does not make sense.
Answer option B is incorrect. The scenario in the question clearly indicates for a lag to be applied, which is not discussed in this option.
Reference: The Project Management Body of Knowledge, Fifth edition, Section 6.3.2.1, Page 156
Chapter: Time and Cost Management
Objective: Task Lead and Lag Dependencies
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Question #49
Which of the following tasks are performed by the scope development process?
- ATo define a baseline for performance measurement and control
- BTo improve the accuracy of cost, duration, and resource estimates
- CTo determine whether a scope change has occurred
- DTo facilitate clear responsibility assignments
Correct Answer:
ABD
Answer options B, A, and D are correct.
The tasks performed by the scope development process are as follows:
✑ To improve the accuracy of cost, duration, and resource estimates
✑ To define a baseline for performance measurement and control
✑ To facilitate clear responsibility assignments
Answer option C is incorrect. This task is performed by the scope change control process.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Project Charter and Scope Management
Objective: Project Scope Development
ABD
Answer options B, A, and D are correct.
The tasks performed by the scope development process are as follows:
✑ To improve the accuracy of cost, duration, and resource estimates
✑ To define a baseline for performance measurement and control
✑ To facilitate clear responsibility assignments
Answer option C is incorrect. This task is performed by the scope change control process.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Project Charter and Scope Management
Objective: Project Scope Development
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Question #50
Which of the following quality costs determines, assesses, or audits products or services to assure conformance to quality standards and performance requirements?
- APrevention cost
- BAppraisal cost
- CExternal failure cost
- DInternal failure cost
Correct Answer:
B
Answer option B is correct.
Appraisal cost determines, assesses, or audits products or services to assure conformance to quality standards and performance requirements.
The cost of conformance to quality defines the cost of training, proper resources, and the costs the project must spend in order to ascertain the expected levels of quality the customer expects from the project. It is the capital used up throughout the project to avoid failures. It consists of two types of costs:
✑ Prevention costs: It is measured to build a quality product. It includes costs in training, document processing, equipment, and time to do it right.
Appraisal costs: It is measured to assess the quality. It includes testing, destructive testing loss, and inspections.

Answer options D and C are incorrect. The cost of nonconformance (failure cost) is also acknowledged as cost of poor quality. It can be categorized as follows:
✑ Internal Failure Costs: Internal failure costs are failures found by the project. Rework and scraps are part of such costs.
✑ External Failure Costs: External failure costs are failures found by the customer. Liabilities, warranty work, and lost businesses are examples of such costs.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Quality and Risk Management
Objective: Cost of Quality
B
Answer option B is correct.
Appraisal cost determines, assesses, or audits products or services to assure conformance to quality standards and performance requirements.
The cost of conformance to quality defines the cost of training, proper resources, and the costs the project must spend in order to ascertain the expected levels of quality the customer expects from the project. It is the capital used up throughout the project to avoid failures. It consists of two types of costs:
✑ Prevention costs: It is measured to build a quality product. It includes costs in training, document processing, equipment, and time to do it right.
Appraisal costs: It is measured to assess the quality. It includes testing, destructive testing loss, and inspections.

Answer options D and C are incorrect. The cost of nonconformance (failure cost) is also acknowledged as cost of poor quality. It can be categorized as follows:
✑ Internal Failure Costs: Internal failure costs are failures found by the project. Rework and scraps are part of such costs.
✑ External Failure Costs: External failure costs are failures found by the customer. Liabilities, warranty work, and lost businesses are examples of such costs.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth edition"
Chapter: Quality and Risk Management
Objective: Cost of Quality
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