Question 1

List and briefly describe the four main processes of project procurement management.

Accepted Answer

The four main processes of project procu

Question 2

Which of the following is true of lump-sum contracts?

Accepted Answer

A) They incur a high degree of risk for the buyer. 
B) They involve a fixed total price for a well-defined product or service. 
C) They consist of a fee based on the satisfaction of subjective performance criteria. 
D) They are also known as cost-reimbursable contracts. 
A) They incur a high degree of risk for the buyer. 
B) They involve a fixed total price for a well-defined product or service. 
C) They consist of a fee based on the satisfaction of subjective performance criteria. 
D) They are also known as cost-reimbursable contracts.

Question 3

From the buyer's perspective, the _____ is the least desirable among all contracts because the supplier has no incentive to decrease costs.

Accepted Answer

A) CPIF 
B) CPFF 
C) CPAF 
D) CPPC 
A) CPIF 
B) CPFF 
C) CPAF 
D) CPPC

Question 4

What are the four types of cost-reimbursable contracts? Briefly describe each type.

Accepted Answer

The four types of cost-reimbursable cont

Question 5

A drawback of outsourcing is that:

Accepted Answer

A) it does not provide access to specific skills or technologies. 
B) it invariably results in an increase in both fixed and recurrent costs. 
C) it can make an organization become overly dependent on particular suppliers. 
D) it cannot increase accountability of suppliers through a written contract. 
A) it does not provide access to specific skills or technologies. 
B) it invariably results in an increase in both fixed and recurrent costs. 
C) it can make an organization become overly dependent on particular suppliers. 
D) it cannot increase accountability of suppliers through a written contract.

Question 6

The process of source selection involves evaluating proposals from sellers, choosing the best one, negotiating, and awarding the _____.

Accepted Answer

The answer of The process of source selection involves evaluating...

Question 7

A(n) _____ is a document used to solicit proposals from prospective suppliers.

Accepted Answer

A) RFQ 
B) WBS 
C) RFP 
D) SOW 
A) RFQ 
B) WBS 
C) RFP 
D) SOW

Question 8

A(n) _____ is a mutually binding agreement that obligates the seller to provide the specified products or services and obligates the buyer to pay for them.

Accepted Answer

The answer of A(n) _____ is a mutually binding agreement...

Question 9

In project procurement management, the process of _____ involves determining what to procure, when, and how.

Accepted Answer

A) closing procurements 
B) controlling procurements 
C) conducting procurements 
D) planning procurement management 
A) closing procurements 
B) controlling procurements 
C) conducting procurements 
D) planning procurement management

Question 10

Procurement audits are often done during contract closure to identify lessons learned in the entire procurement process.

Accepted Answer

A) True 
 B)False

Question 11

Indirect costs are those costs can be traced back to a project in a cost-effective way.

Accepted Answer

A) True 
 B)False

Question 12

The final process in project procurement management is _____.

Accepted Answer

closing pr

Question 13

"Most organizations are not in business to provide information technology services, yet many have spent valuable time and resources on information technology functions when they should have instead worked on important competencies such as marketing, customer service, and new product design. Outsourcing helps tackle this problem." Which of the following benefits does outsourcing primarily provide in such a scenario?

Accepted Answer

A) Reduces fixed and recurrent costs 
B) Protects strategic information from being accessible to external suppliers 
C) Increases accountability even without a written contract 
D) Helps focus on an organization's core business 
A) Reduces fixed and recurrent costs 
B) Protects strategic information from being accessible to external suppliers 
C) Increases accountability even without a written contract 
D) Helps focus on an organization's core business

Question 14

In project procurement management, the process of _____ involves obtaining seller responses, selecting sellers, and awarding contracts.

Accepted Answer

A) conducting procurements 
B) closing procurements 
C) settling contracts 
D) planning procurement management 
A) conducting procurements 
B) closing procurements 
C) settling contracts 
D) planning procurement management

Question 15

In an FPI contract, all of the risk is borne by the buyer.

Accepted Answer

A) True 
 B)False

Question 16

In project procurement management, the process of conducting procurements is part of the _____ process.

Accepted Answer

A) planning 
B) executing 
C) monitoring and controlling 
D) closing 
A) planning 
B) executing 
C) monitoring and controlling 
D) closing

Question 17

"A shortage of qualified personnel is one of the main reason that companies outsource. A project may require experts in a particular field for several months and planning for this procurement ensures that the needed services will be available for the project." Which of the following benefits does this characteristic of outsourcing provide an organization?

Accepted Answer

A) Reduces focus on its core business 
B) Increases control over all aspects of projects that suppliers carry out 
C) Provides access to specific skills 
D) Reduces dependency on suppliers 
A) Reduces focus on its core business 
B) Increases control over all aspects of projects that suppliers carry out 
C) Provides access to specific skills 
D) Reduces dependency on suppliers

Question 18

With a(n) _____ contract, the buyer pays the supplier for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs.

Accepted Answer

A) CPFF 
B) FPIF 
C) CPAF 
D) CPIF 
A) CPFF 
B) FPIF 
C) CPAF 
D) CPIF

Question 19

An FP-EPA contract carries the least risk for a supplier.

Accepted Answer

A) True 
 B)False

Question 20

"Outsourcing to provide extra workers during periods of peak workloads can be much more economical than trying to fill entire projects with internal resources." Which of the following advantages does this characteristic of outsourcing provide organizations?

Accepted Answer

A) Offers control over all aspects of projects that suppliers carry out 
B) Provides a company flexibility in staffing 
C) Shifts accountability from external suppliers to internal staff 
D) Helps avoid any form of dependency on suppliers 
A) Offers control over all aspects of projects that suppliers carry out 
B) Provides a company flexibility in staffing 
C) Shifts accountability from external suppliers to internal staff 
D) Helps avoid any form of dependency on suppliers

List and briefly describe the four main processes of project procurement management.

Which of the following is true of lump-sum contracts?

From the buyer's perspective, the _____ is the least desirable among all contracts because the supplier has no incentive to decrease costs.

What are the four types of cost-reimbursable contracts? Briefly describe each type.

A drawback of outsourcing is that:

The process of source selection involves evaluating proposals from sellers, choosing the best one, negotiating, and awarding the _____.

A(n) _____ is a document used to solicit proposals from prospective suppliers.

A(n) _____ is a mutually binding agreement that obligates the seller to provide the specified products or services and obligates the buyer to pay for them.

In project procurement management, the process of _____ involves determining what to procure, when, and how.

Procurement audits are often done during contract closure to identify lessons learned in the entire procurement process.

Indirect costs are those costs can be traced back to a project in a cost-effective way.

The final process in project procurement management is _____.

In project procurement management, the process of _____ involves obtaining seller responses, selecting sellers, and awarding contracts.

In an FPI contract, all of the risk is borne by the buyer.

In project procurement management, the process of conducting procurements is part of the _____ process.

With a(n) _____ contract, the buyer pays the supplier for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs.

An FP-EPA contract carries the least risk for a supplier.

"Outsourcing to provide extra workers during periods of peak workloads can be much more economical than trying to fill entire projects with internal resources." Which of the following advantages does this characteristic of outsourcing provide organizations?

Introduction to Project Management

The Project Management and Information Technology Context

The Project Management Process Groups: A Case Study

Project Integration Management

Project Scope Management

Project Time Management

Project Cost Management

Project Quality Management

Project Human Resource Management

Project Communications Management

Project Risk Management

Project Stakeholder Management

Filters

Exam 12: Project Procurement Management

List and briefly describe the four main processes of project procurement management.

Which of the following is true of lump-sum contracts?

From the buyer's perspective, the _____ is the least desirable among all contracts because the supplier has no incentive to decrease costs.

What are the four types of cost-reimbursable contracts? Briefly describe each type.

A drawback of outsourcing is that:

The process of source selection involves evaluating proposals from sellers, choosing the best one, negotiating, and awarding the _____.

A(n) _____ is a document used to solicit proposals from prospective suppliers.

A(n) _____ is a mutually binding agreement that obligates the seller to provide the specified products or services and obligates the buyer to pay for them.

In project procurement management, the process of _____ involves determining what to procure, when, and how.

Procurement audits are often done during contract closure to identify lessons learned in the entire procurement process.

Indirect costs are those costs can be traced back to a project in a cost-effective way.

The final process in project procurement management is _____.

In project procurement management, the process of _____ involves obtaining seller responses, selecting sellers, and awarding contracts.

In an FPI contract, all of the risk is borne by the buyer.

In project procurement management, the process of conducting procurements is part of the _____ process.

With a(n) _____ contract, the buyer pays the supplier for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs.

An FP-EPA contract carries the least risk for a supplier.

"Outsourcing to provide extra workers during periods of peak workloads can be much more economical than trying to fill entire projects with internal resources." Which of the following advantages does this characteristic of outsourcing provide organizations?

Introduction to Project Management

The Project Management and Information Technology Context

The Project Management Process Groups: A Case Study

Project Integration Management

Project Scope Management

Project Time Management

Project Cost Management

Project Quality Management

Project Human Resource Management

Project Communications Management

Project Risk Management

Project Stakeholder Management

Filters