Quick Quiz - Procurement

Quick Quizzes are a great way to assess how much you learned during the PMP Boot Camp. They aren't called "Quick" because they are short or take a small amount of time, but rather because you should be able to answer each question quickly. You probably won't see many questions like this on the PMP exam, but it is a good way to solidify the base knowledge upon which you must draw to answer PMP situational, behavioral questions. This Quick Quiz will help you obtain the 1st of the 3 keys to passing the PMP Exam: An in-depth understanding of the PMBOK. 

Quick Quizzes are timed based on an average of 72 seconds per question.

If you cannot answer all of these questions correctly, go back and study the student guides, read the PMBOK, and prepare questions to ask your instructor during the next class session.

To obtain an in-depth understanding of the PMBOK

Different types of contracts are appropriate for different kinds of _________?

Purchases

  • Projects
  • Sponsors
  • Vendors
  • Purchases

What is the difference between Price and Cost?

Fee

  • Fee
  • Ceiling
  • Target Price
  • PTA

Point of Total Assumption only relates to which type of contract?

FPIF

  • CPIF
  • FPIF
  • FFP
  • T&M

What is represented by the first number in a contract sharing ratio?

Buyer's share

  • Seller's share
  • Buyer's share
  • Target Price
  • PTA

Which type of contract is appropriate for a well-defined scope of work?

Fixed Price

  • T&M
  • Fixed Price
  • CPIF
  • Hybrid

Which type of contract is appropriate for a poorly-defined scope of work?

T&M

  • T&M
  • Fixed Price
  • CPIF
  • Hybrid

In which type of contract does the seller bear more risk?

Firm Fixed Price 

  • Firm Fixed Price
  • CPFF
  • Time & Materials
  • Procurement

In which type of contract does the buyer bear more risk?

CPFF

  • Firm Fixed Price
  • CPFF
  • Time & Materials
  • Procurement

In which type of contract does the buyer and seller share the risk?

Time & Materials

  • Firm Fixed Price
  • CPFF
  • Time & Materials
  • Procurement

Which type of contract is appropriate for long term contracts or with an overseas vendor with a well-defined scope of work?

FPEPA

  • FPEPA
  • FPIF
  • CPAF
  • T&M

Which type of contract is appropriate to help encourage the seller to keep down costs?

CPIF

  • CPFF
  • FPIF
  • CPIF
  • T&M

Which statement is true?

Sellers want Cost Reimbursable Contracts

  • Fixed Price contracts are low risk for the Seller
  • Sellers want Cost Reimbursable Contracts
  • T&M contracts are high risk for the Buyer
  • Fixed Price contracts are high risk for the Buyer

How do you calculate the final price on a Cost Plus Incentive Fee contract?

Add the actual cost to the final fee

  • Add the actual cost to the final fee
  • Add the actual cost to the target fee
  • Subtract target cost from actual cost and add to the target price
  • Determine the buyer's share from the ratios and subtract from the final fee

Which of the following is not true regarding the Point of Total Assumption?

It cannot be determined without Actual Cost information

  • It cannot be determined without Actual Cost information
  • It is also known as the most pessimistic cost
  • The seller bears 100% of the cost risk at PTA and beyond
  • Once costs on an FPIF contract reach PTA, the maximum amount the buyer will pay is the ceiling price

What is the formula for the Point of Total Assumption?

[(Ceiling Price - Target Price)/Buyer's Share Ratio] + Target Cost

  • [(Target Price - Ceiling Price)/Buyer's Share Ratio] + Target Cost
  • [(Ceiling Price - Target Price)/Seller's Share Ratio] + Target Cost
  • [(Ceiling Price - Target Price)/Buyer's Share Ratio] + Actual Cost
  • [(Ceiling Price - Target Price)/Buyer's Share Ratio] + Target Cost

Which of the following is not an input to Plan Procurement Management?

Make or Buy Decisions

  • Make or Buy Decisions
  • Risk Register
  • Project Schedule
  • Activity Cost Estimates

Which process determines whether to acquire outside support, and if so, what to acquire, how to acquire it, how much is needed, and when to acquire it ?

Plan Procurement Management

  • Plan Procurement Management
  • Conduct Procurements
  • Identify Procurements
  • Control Procurements

Which input to Plan Procurement Management helps to identify procurement needs that are not associated with a specific activity on the schedule?

Requirements Documentation

  • Requirements Documentation
  • Activity Resource Requirements
  • Requirements Register
  • Scope Baseline

Which of the following is a procurement document used to advertise and attract seller proposals?

RFP

  • RFP
  • Statement of Work
  • CPIF
  • RBS

Why is it important to identify Source Selection Criteria during Plan Procurement Management?

To establish how Seller Proposals will be evaluated

  • To establish how Statements of Work will be evaluated
  • To establish how Seller Proposals will be evaluated
  • To ensure a fair Bidder Conference
  • To help with Make or Buy Decisions

During which Process Group does the project team decide what to buy, how to buy it, and when to buy it?

Planning

  • Planning
  • Plan Procurements
  • Executing
  • Conduct Procurements

Which document details the work needed from a seller and allows them to understand the work required in order to formulate an accurate proposal?

SOW

  • RFQ
  • SOW
  • FPIF
  • EEF

What is the only Planning process with Change Requests as an output?

Plan Procurement Management

  • Plan Procurement Management
  • Develop PM Plan
  • Define Scope
  • Estimate Activity Resources

When do procurement negotiations take place?

During Conduct Procurements and Close Procurements

  • During Plan Procurements
  • During Conduct Procurements and Close Procurements
  • As needed
  • During Control Procurements

Contracts are an output of which process?

Conduct Procurements

  • Executing
  • Plan Procurement Management
  • Conduct Procurements
  • Negotiate Procurements

Advertising is a tool used in which process?

Conduct Procurements

  • Conduct Procurements
  • Plan Procurement Management
  • Negotiate Procurements
  • Control Procurements

What tool would help the PM determine if seller proposals were realistic and fair?

Independent Estimates

  • Analytical Techniques
  • Bidder Conference
  • Independent Estimates
  • Procurement Negotiations

What is the main purpose of a Bidder Conference?

Ensure all potential sellers have equal access to project information

  • Help create the Procurement Management Plan
  • Ensure all potential sellers have equal access to project information
  • Assist in the evaluation of seller proposals
  • Collect seller proposals

Which input to Conduct Procurements is not an output of another process?

Seller Proposals

  • Seller Proposals
  • Source Selection Criteria
  • Make or Buy Decisions
  • Procurement SOW

What is the goal of procurement negotiations?

A win-win situation

  • A win-win situation
  • Negotiate a contract favorable to the performing organization
  • Ensure the seller provides an accurate proposal
  • Provide a basis for closing the contract

Which is not an input to Control Procurements?

Risk Register

  • WPR
  • WPD
  • Approved Change Requests
  • Risk Register

When should the PM Control Procurements?

After a contract with a seller has been entered into

  • After a contract with a seller has been entered into
  • During Performance Reviews
  • Throughout the project
  • During Executing

Which is not a tool/technique used during Control Procurements?

Make or Buy Analysis

  • Contract Change Control System
  • Procurement Performance Reviews
  • Payment Systems
  • Make or Buy Analysis

Which is an output of Control Procurements?

Change Requests

  • Change Requests
  • Contracts
  • Make or Buy Decisions
  • Performance Reports

Which tool/technique used in Control Procurements ensures that senior management is aware of how the legal relationship with a seller is progressing?

Performance Reporting

  • Performance Reporting
  • Claims Administration
  • Records Management System
  • Inspections & Audits

Which procurement process is performed by both buyer and seller?

Control Procurements

  • Plan Procurement Management
  • Conduct Procurements
  • Control Procurements
  • Close Procurements

When is Close Procurements performed?

Whenever there is a valid reason to end a legal relationship

  • At the end of the project
  • During Monitoring & Controlling
  • Whenever there is a valid reason to end a legal relationship
  • When directed by the Sponsor

Which is not a tool/technique used during Close Procurements?

Payment System

  • Procurement Audits
  • Payment System
  • Records Management System
  • Procurement Negotiations

Closed Procurements must be completed when?

Prior to Close Project or Phase

  • Prior to Close Project or Phase
  • Prior to Validate Scope
  • After Define Scope
  • Before entering into another contract

What is the output of Close Procurements

Closed Procurements and OPA Updates

  • Closed Procurements and OPA Updates
  • Closed Procurements and EEF Updates
  • Completed Contracts and OPA Updates
  • Completed Contracts and Project Documents Updates