178 free PMI PgMP practice questions from the CertStash pack of 713, each with the correct answer and a full explanation. The rule is the same for every exam: ten free on the product page, 178 free here, all 713 in the pack, and each step includes the one before it.
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Question 1
What is the formula to determine earned value (EV) for a program?
Show answer and explanation
Correct answer: C. Percent complete times the program budget at completion
Earned value is the budgeted value of the work actually performed, so it is calculated as EV = percent complete x budget at completion (BAC). For example, a program with a BAC of $2,000,000 that is 40 percent complete has earned $800,000 of value. Because EV is tied to the authorized cost baseline, it can be compared directly with planned value and actual cost to derive schedule and cost variances and the related performance indexes.
Why the other options are wrong
- A. Multiplying percent complete by percent remaining yields a meaningless ratio, not a monetary value of work performed.
- B. A cost estimate is not the authorized baseline; EV is always measured against the budget at completion.
- D. Labor and materials are only part of the cost picture, and EV uses the full budget at completion rather than selected cost categories.
Question 2
Olive is the program manager for her organization. She has created a request for proposal for a large portion of her program. In this work to be procured she has set several requirements for the vendors to participate. The chief among these requirements is a vendor must have at least four licensed electricians in his team.
This requirement for four licensed electricians is an example of which one of the following terms?
Show answer and explanation
Correct answer: D. Evaluation criteria
Evaluation criteria are the standards written into the procurement documents that the buyer uses to judge sellers and their proposals, such as technical capability, qualified personnel, experience and cost. Requiring a vendor to field at least four licensed electricians is one such stated criterion: it defines a qualification every proposal is assessed against. Tools such as screening systems and scoring models are simply the mechanisms that apply these criteria during source selection, so the requirement itself is best classified as an evaluation criterion.
Why the other options are wrong
- A. A screening system is the mechanism that applies criteria to filter out sellers; the electrician requirement is the criterion being applied, not the system.
- B. A scoring model is a weighting method used to rate proposals numerically, not a requirement placed on vendors.
- C. Vendor analysis requirements is not a recognized procurement term and does not describe a criterion set in a request for proposal.
Question 3
You are the program manager for your organization. Management has asked you to create a document that will capture the stakeholders' concerns, perceived threats, and specific objectives about the program and its projects.
What document is management asking you to create in this instance?
Show answer and explanation
Correct answer: C. Business case
The business case documents the justification for the program and serves as the basis for the investment decision. It captures the stakeholders' needs, concerns and perceived threats, the specific objectives the program must achieve, high-level risks and opportunities, assumptions, constraints and the expected costs and benefits, and it shows how the program aligns with organizational strategy. Because management wants a single document that records what stakeholders expect from the program and its projects and what they fear about it, the business case is the document being requested.
Why the other options are wrong
- A. A requirements document records the detailed conditions the deliverables must satisfy, not stakeholder threats and program justification.
- B. A project charter authorizes a single project and is built from the business case rather than serving as the record of stakeholder concerns for the whole program.
- D. A scope statement describes the deliverables and work boundaries, not stakeholder concerns, perceived threats or program justification.
Question 4
You are the program manager of the NHQ Program. You are working with your program team to ensure that the work in the program is done accurately and according to scope. You are also reviewing the team inspection process that will need to be done to ensure that the work is being done according to the scope. If the work is found to be defective it will need to be corrected before the program customers can inspect the work.
What process are you completing to ensure that the work is done according to scope?
Show answer and explanation
Correct answer: A. Quality control
Quality control is the inspection and measurement of completed work to confirm it conforms to requirements and to identify defects so they can be corrected. The scenario describes a team inspection process that checks work against the scope and requires defective work to be fixed before the customers ever see it. That internal check of correctness happens before customer acceptance, which is exactly the role of quality control in the sequence of delivering accepted work.
Why the other options are wrong
- B. Scope verification is the customer's formal acceptance of deliverables, which follows the internal inspection described here.
- C. Quality assurance audits processes and standards to prevent defects, rather than inspecting the work products themselves.
- D. Planning defines how work and quality will be managed; it does not involve inspecting completed work for defects.
Question 5
Your company and a competing company have created a teaming agreement for an opportunity. Through this team agreement you and your competitor can complete a major program for a client. This is, technically, a risk response for both organizations.
What type of risk response are you dealing with in this instance?
Show answer and explanation
Correct answer: D. Sharing
Sharing is a response to a positive risk (an opportunity) in which ownership is allocated to a third party better able to capture the benefit. Forming a teaming agreement, joint venture or partnership with another organization so that together they can win and deliver a major program is the classic example of sharing. Each company gains access to the opportunity it could not realize alone and, in return, divides the rewards and responsibilities with its partner.
Why the other options are wrong
- A. Teaming is the name of the agreement, not a recognized risk response strategy.
- B. Exploiting means acting alone to ensure an opportunity definitely occurs, rather than partnering with another organization to pursue it.
- C. Accepting means taking no proactive action, whereas a teaming agreement is a deliberate response to the opportunity.
Question 6
A project manager in your program has estimated the cost of a program to be $145,000. As the project manager's project comes close to completion, the project manager realizes that he has still $27,876 left in his project budget. He decides to add some additional features to the project's deliverables in an effort to use the remaining budget. These additions will add value to the project and the project customer is likely to enjoy these new features. This is an example of what term?
Show answer and explanation
Correct answer: A. Gold plating
Gold plating is adding features, functions or extras that were not requested and are not in the approved scope, typically to please the customer or to consume leftover budget. The project manager is spending the remaining $27,876 on unrequested features simply because the money is available. Even if the customer may like the additions, they bypass change control, introduce new risk and cost, and misrepresent the true cost of the agreed scope. Unspent funds should be returned, not used to expand deliverables.
Why the other options are wrong
- B. Errors and omissions are mistakes or gaps in planning or execution, not deliberate additions of unrequested features.
- C. Expert judgment is a technique for informed decisions within approved processes, not a license to add unapproved scope.
- D. A value-added change would be submitted and approved through change control, whereas these additions were made unilaterally.
Question 7
Andy is the program manager of the HQN Program. This program is nearing its completion and there is still $25,000 left in the program budget.
Andy has asked the program team to identify some extra deliverables that can be included in the program scope to improve the program deliverable but also to use all of the funds in the budget.
What term is assigned to the actions that Andy is trying to do in this instance?
Show answer and explanation
Correct answer: D. Gold plating
Gold plating is adding extra deliverables or features beyond the approved scope that the customer did not request. Andy is asking the team to find additional deliverables specifically so that the remaining $25,000 is consumed, which is the defining motive of gold plating. A PMI-trained program manager delivers the agreed scope, returns unused funds or handles them through governance, and submits any genuinely needed additions as formal change requests rather than inventing work to spend the budget.
Why the other options are wrong
- A. Value-added change requests would be raised and approved through change control, while Andy is creating extra work on his own initiative.
- B. Zero based budgeting builds a budget from nothing each period and has nothing to do with spending leftover funds.
- C. Integrated change control is the process for evaluating and approving changes, not the act of inventing unrequested deliverables.
Question 8
What analysis type could you use in a program to compare the positive stakeholders and their position, power, and influence over your program to the same variable components of the negative stakeholders in your program?
Show answer and explanation
Correct answer: D. Force field analysis
Force field analysis weighs the driving forces that support a change against the restraining forces that oppose it. Applied to a program, the positive stakeholders form the driving forces and the negative stakeholders form the restraining forces, and each group is assessed for position, power and influence so the two sides can be compared directly. The result shows which side currently dominates and where the program manager should strengthen support or reduce resistance to keep the program moving toward its benefits.
Why the other options are wrong
- A. Sensitivity analysis measures how changes in individual variables affect outcomes such as cost or schedule, not stakeholder support versus opposition.
- B. Stakeholder analysis identifies and classifies stakeholders one by one, while the side-by-side comparison of supporting and opposing forces is the defining purpose of force field analysis.
- C. Monte Carlo simulation models probabilistic cost and schedule outcomes and does not evaluate stakeholder power or influence.
Question 9
You are the program manager of the BHG Program. One of the projects in your program will be using new materials that are somewhat untested.
You are worried that there may be delays and waste because the project team is unaware of how to accurately use these materials. You elect to send the people that will be using the new materials through training on how to complete their project work. You also allow them to purchase some of the materials to experiment on their use before the actual project work is to be done. You want to ensure that mistakes do not enter into the project.
What type of action have you provided in this scenario?
Show answer and explanation
Correct answer: A. This is an example of a preventive action.
A preventive action is an intentional activity that ensures future performance of the work aligns with the plan by removing the cause of a likely problem before it occurs. Training the team on the untested materials and letting them experiment ahead of the real work both target the anticipated cause of delays, waste and mistakes. Nothing has gone wrong yet, so the action is preventive rather than corrective, and its stated goal is to keep errors from entering the project at all.
Why the other options are wrong
- B. Team development builds general competencies and teamwork, while these steps target a specific anticipated problem with the materials.
- C. Quality assurance audits processes and standards for compliance, not training and trial use aimed at a specific expected risk.
- D. Corrective action responds to performance that has already deviated from the plan, and no deviation has occurred here.
Question 10
You are the program manager for your organization. You and your program team have been creating and transferring the program benefits to operations as feasible in your program execution. The process of delivering the program's benefits describes what process in program management?
Show answer and explanation
Correct answer: B. Benefits management
Benefits management is the program management performance domain that defines, creates, maximizes, delivers and sustains the benefits provided by the program. It spans benefits identification, analysis and planning, benefits delivery, and benefits transition to operations followed by sustainment. A team that is creating benefits and transferring them to operations as they become available during execution is performing benefits delivery and transition, both of which sit within benefits management.
Why the other options are wrong
- A. Quality control inspects deliverables for conformance to requirements and does not govern the creation and transfer of benefits.
- C. Direct and manage program execution coordinates component work under the program management plan, while the creation and transfer of benefits is defined by benefits management.
- D. Quality assurance audits processes for compliance with standards and does not address benefits delivery or transition.
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Question 11
Eric is the project manager of the NQQ Project and has hired the ZAS Corporation to complete part of the project work for Eric's organization. Due to a change request the ZAS Corporation is no longer needed on the project even though they have completed nearly all of the project work. Is Eric's organization liable to pay the ZAS Corporation for the work they have completed so far on the project?
Show answer and explanation
Correct answer: C. It depends on what the termination clause of the contract stipulates.
When a buyer ends a contract early, here because a change request removed the need for the vendor, the buyer's obligations are governed by the termination clause of the contract. That clause typically states whether termination for convenience is allowed and how the seller is compensated for accepted work, work in progress and related costs. Whether Eric's organization owes the ZAS Corporation for the nearly completed work therefore depends on what the termination clause stipulates.
Why the other options are wrong
- A. Litigation is a last resort, and the contract terms define the obligation before any lawsuit is considered.
- B. Incomplete work does not by itself cancel payment, since contracts commonly compensate sellers for work performed before termination.
- D. Who initiated the termination does not automatically decide payment; the contract's termination terms do.
Question 12
Alice is the project manager of the NHQ Project and is entering the project's closing processes. The project, she has managed, has been for another organization in a contractual relationship. Her organization requires Alice to complete performance reviews of the project team, review the deliverables with the project customer, and to obtain formal signoff of the project deliverables. There may be other conditions and activities that Alice likely will need to do in this final project phase.
Where can Alice check regarding this project?
Show answer and explanation
Correct answer: B. Project Contract
When a project is performed for another organization under a contract, the contract is the legally binding document that defines what must be delivered, how deliverables are accepted and what is required to close the agreement. Its terms and conditions may impose specific closing activities, such as deliverable reviews with the customer, formal acceptance and sign-off, documentation and final reporting. Alice should check the contract so she completes every condition required for contractual closure in addition to her own organization's requirements.
Why the other options are wrong
- A. Integration is handled through the project management plan, not a separate integration plan, and neither replaces the contract's closure terms.
- C. Quality control procedures govern inspection of deliverables, not the full set of contractual closing conditions.
- D. The communications management plan describes how information is distributed, not the contractual conditions for closing the project.
Question 13
If a risk has a probability of 60 percent and an impact of -$57,000 what will the expected monetary value of the risk event be?
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Correct answer: A. -$34,200
Expected monetary value (EMV) is the probability of a risk event multiplied by its impact. Here EMV = 0.60 x (-$57,000) = -$34,200. The negative sign indicates a threat, so this amount represents the expected cost exposure of the risk. EMV values for individual risks can be summed to help size contingency reserves and are used in decision tree analysis to compare alternatives.
Why the other options are wrong
- B. This is the full impact without weighting it by the 60 percent probability.
- C. This figure does not follow from multiplying the probability by the impact.
- D. EMV is a straightforward probability times impact calculation and does not require the organization's utility function.
Question 14
You are the program manager of a new program in your organization. This program will last for one year and your program team will work full-time on the effort.
The nature of the work requires that the program team work closely together for the next year, but many of the program team members have never met one another. You decide to take the team on an outing where they can work together through challenges, learn teamwork, and get to know one another. This is an example of what process?
Show answer and explanation
Correct answer: D. Team development
Team development is the deliberate effort to improve team members' competencies, the interaction among them and the overall team environment so that performance improves. Taking a new, full-time team on an outing where members solve challenges together, practice teamwork and get to know one another is a classic team-building activity carried out under this process. The program manager is purposely investing in trust and cohesion so the team can collaborate closely over the coming year, which is exactly what team development aims to achieve.
Why the other options are wrong
- A. Cost of quality covers spending on prevention, appraisal and failure, not activities that build team relationships.
- B. Storming is a stage of team growth marked by conflict and testing of boundaries, not a process the manager carries out.
- C. Forming is a stage the team passes through naturally as members first meet; the planned outing is an action of the team development process, not the stage itself.
Question 15
You are the program manager of the HNG Program. This program has a budget at completion of $2,345,900 and is expected to last two years. The program is currently 30 percent complete and you have spent $789,000. The program is supposed to be 35 percent complete but due to some delays you're slightly behind schedule. Based on this information, what is the schedule variance (SV) of this program?
Show answer and explanation
Correct answer: D. -$117,295
Schedule variance is earned value minus planned value: SV = EV - PV. Earned value is 30 percent of the $2,345,900 BAC, or $703,770. Planned value is 35 percent of BAC, or $821,065. SV = $703,770 - $821,065 = -$117,295. The negative result confirms the program is behind schedule. The $789,000 actual cost does not enter the schedule variance formula; it is used for cost measures such as cost variance and CPI.
Why the other options are wrong
- A. -$85,230 is EV - AC ($703,770 - $789,000), which is the cost variance, not the schedule variance.
- B. $821,065 is the planned value (35 percent of BAC), one input to the formula, not the variance.
- C. -$284,100 does not equal EV - PV, which is $703,770 - $821,065 = -$117,295.
Question 16
Joan is the program manager for her organization. Management has asked her to create a centralized reporting system to capture information on program work, risks, changes, benefits management, and other aspects of the program.
What solution can Joan implement to capture, communicate, and record the information management wants?
Show answer and explanation
Correct answer: A. Program management information system
A program management information system is the set of tools and processes used to collect, store, integrate and distribute program information. It gives a single, centralized repository for data on program work, risks, issues, changes, benefits, financials and performance, and it produces the reports and dashboards management needs. Implementing one lets Joan capture, communicate and record all of the requested information consistently across the components of her program.
Why the other options are wrong
- B. Integrated change control is a process for evaluating and deciding on changes, not a system for capturing and reporting all program information.
- C. A change control system manages change requests only and does not cover work, risk and benefits reporting.
- D. Executing the program management plan is the performance of the work, not a system for capturing and reporting information about it.
Question 17
You are the program manager for the SRQ Program. You have rejected several change requests for the program scope.
What must you do with the rejected change requests?
Show answer and explanation
Correct answer: C. Communicate the change request status to the stakeholders and record the results of the change request in the change register.
Every change request, whether approved or rejected, must have its disposition communicated to the stakeholders and recorded. The change register (also called the change log) tracks each request, its status and the decision reached, giving the program an auditable history and preventing the same request from resurfacing unaddressed. Communicating the status and recording the result in the change register completes the change control cycle for rejected requests.
Why the other options are wrong
- A. Lessons learned may capture insights later, but the disposition of each change request belongs in the change register.
- B. Informing stakeholders alone leaves the decision unrecorded, so the change control record is incomplete.
- D. Explaining the reasons to stakeholders still omits the required entry of the result in the change register.
Question 18
You are the program manager for your organization. You have created a program that will create things for the organization throughout the program not only at program closure. All of the following are elements that you may transfer to the organization throughout the program's life cycle except for which one?
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Correct answer: C. Program personnel
Programs deliver value incrementally, so many elements pass to the organization before program closure. Benefits are transitioned to operations as components finish, risk management outcomes and lessons are handed to the organization, and outputs of team development such as improved skills and knowledge flow back into the organization. Program personnel are not something the program transfers as a deliverable; people are resources the program uses, and they are released back to their functional areas as their assignments end rather than handed over as program outputs.
Why the other options are wrong
- A. Benefits are transitioned to operations incrementally as components deliver, which is a core reason for running a program.
- B. Risk management outcomes, such as resolved risks and lessons from responses, are handed to the organization during the program.
- D. Outputs of team development, such as improved skills and knowledge, are transferred to the organization as the program progresses.
Question 19
You are the program manager for your organization. Your program team has 43 people that all need to be monitored and controlled. You would like to create a standardized report that you can use to monitor, control, and record the performance of each staff member in your program.
What type of report can you create that will help you track your staff and their performance?
Show answer and explanation
Correct answer: A. Performance reports
Performance reports collect and present actual performance against planned performance in a standardized format. A consistent performance report for each of the 43 team members lets the program manager monitor progress, compare results with expectations, take control action where needed and keep a record of individual performance for appraisals and resource decisions. Because the goal is to monitor, control and record the performance of every staff member, performance reports are the correct choice.
Why the other options are wrong
- B. Staff variance report is not a standard report type and would cover only deviations, not a full record of performance.
- C. An exceptions report highlights only items outside tolerance and does not record the performance of every staff member.
- D. Lessons learned capture knowledge for future work and are not a tool for monitoring and controlling individual performance.
Question 20
You are the program manager for your organization. A new program is about to be initiated and Marcy, your assistant, asks you about the themes that all new programs must map to. All of the following are themes that you can discuss with Marcy except for which one?
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Correct answer: B. Requirements analysis
The Standard for Program Management identifies benefits management, stakeholder management and program governance as the themes that span every program and its whole life cycle. Later editions carry these ideas forward as program management performance domains. Requirements analysis is a supporting activity used to define what components must deliver; it is not one of the overarching themes to which every new program must map.
Why the other options are wrong
- A. Stakeholder management is one of the program management themes, so it cannot be the exception.
- C. Benefits management is one of the program management themes and central to why programs exist.
- D. Program governance is one of the program management themes, providing oversight and decision-making for the program.
Question 21
You are the program manager of the HNG Program. This program has a budget at completion of $2,345,900 and is expected to last two years. The program is currently 30 percent complete and you have spent $789,000. The program is supposed to be 35 percent complete but due to some delays you're slightly behind schedule. Based on this information, what is the schedule performance index (SPI) for this program?
Show answer and explanation
Correct answer: B. .86
The schedule performance index is earned value divided by planned value (SPI = EV / PV). Earned value is 30 percent of the $2,345,900 budget at completion, or $703,770, and planned value is 35 percent, or $821,065. SPI = $703,770 / $821,065 = 0.857, which rounds to 0.86. Because the percentages share the same budget, the ratio is simply 30 / 35. An SPI below 1.0 confirms the program is behind schedule, matching the reported delays; the $789,000 actual cost is not used in SPI.
Why the other options are wrong
- A. $821,065 is the planned value (35 percent of the budget at completion), a dollar amount rather than the SPI ratio.
- C. An SPI of 1.05 would mean the program is ahead of schedule, which contradicts both the data and the stated delays.
- D. 0.89 does not result from EV / PV; the correct ratio is 30 / 35, or 0.86, and 0.89 equals 703,770 / 789,000, which is the CPI.
Question 22
You are the program manager for your organization. You are planning a new program that will construct a new warehouse facility for your company. As you look forward to the conclusion of the program you need an official document that will signify the program has ended.
What document should you specify in your program management plan for the conclusion of the program?
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Correct answer: D. Certificate of program completion
A certificate of program completion is the formal document that signifies the program has ended. Specifying it in the program management plan sets out in advance how closure will be confirmed: once the program has delivered its scope and benefits, the program sponsor and the program governance board sign the certificate to record formal acceptance and authorize closure. It provides an official, auditable record that the program is complete, after which resources are released and the remaining closure activities are finished.
Why the other options are wrong
- A. A final program audit report assesses how the program was performed and managed, but it does not formally declare the program finished.
- B. An audit of program financials reviews spending and financial controls, not the formal acceptance that ends the program.
- C. Lessons learned documentation captures knowledge for future work and does not serve as the official record that the program has concluded.
Question 23
You are the project manager for the GGG Project and are about to close the project kickoff meeting. All of the project team members and the key stakeholders are in attendance.
What final item should you talk about before closing the meeting?
Show answer and explanation
Correct answer: C. Discuss the action items and the importance of the items being completed as planned.
A kickoff meeting should end with a review of the action items: what must be done, who owns each item and when it is due, along with the importance of completing them as planned. Closing on action items turns the discussion into accountable next steps while the whole team and the key stakeholders are present to confirm their commitments and ask questions. This keeps the project moving from planning into execution with clear responsibilities.
Why the other options are wrong
- A. Project scope is a core agenda topic earlier in the kickoff, not the item used to close the meeting.
- B. Thanking attendees is courteous, but it does not leave the team with clear responsibilities and next steps.
- D. Asserting the role of project manager adds nothing actionable, and the team already knows who the project manager is.
Question 24
All of the following are benefits of a program except for which one?
Show answer and explanation
Correct answer: A. Projects can operate independently of one another.
A program groups related components so they can be managed in a coordinated way to obtain benefits not available from managing them individually. Having projects operate independently of one another is the opposite of that purpose and is therefore not a benefit of a program. Coordinated programs allow resources to be shared and prioritized across components, apply a consistent stakeholder engagement approach, and ensure that all components follow common program and organizational policies under one governance framework.
Why the other options are wrong
- B. Sharing and prioritizing resources across components is a recognized benefit of managing projects together as a program.
- C. A consistent stakeholder engagement approach across components is a benefit of program management that avoids conflicting messages.
- D. Common governance under program and organizational policies is a benefit that keeps components aligned and controlled.
Question 25
You are the program manager for your organization and you are preparing to launch several constituent projects within your program. You need to ensure that each project manager is authorized to utilize the appropriate project and program resources in order to complete the project requirements.
What document do you need to create for each constituent project in your program to ensure that each project manager can use the appropriate resources?
Show answer and explanation
Correct answer: A. Project charter
A project charter formally authorizes a project and gives the named project manager the authority to apply organizational resources to project activities. In a program, each constituent project is authorized through a charter issued as part of component authorization, which links the project to the program's objectives and confirms the project manager's authority over the resources assigned. Creating a charter for each project ensures every project manager can legitimately use the appropriate project and program resources.
Why the other options are wrong
- B. A project scope statement describes the deliverables and work, but it does not authorize the project manager to use resources.
- C. A resource requirements document lists the resources needed, but it grants no authority to use them.
- D. A roles and responsibilities chart assigns who does what but does not formally authorize the project or its use of resources.
Question 26
You are the program manager of HYH Program for your organization. Your program is to create a new sports arena for your city within 12 months.
Your program has seven projects and you've worked with all of the project managers before. Even though you've worked with the project managers before you still need to define the authority of the project managers and their projects.
What document names the project manager for the project?
Show answer and explanation
Correct answer: A. Project charter for each project
The project charter formally authorizes a project, names the project manager and defines the project manager's level of authority to apply organizational resources. In the HYH Program, each of the seven projects needs its own charter so that every project manager's role and authority are clearly documented, even when the program manager has worked with them before. Prior relationships do not replace formal authorization, and the charter also links each project to the program's objectives and benefits.
Why the other options are wrong
- B. The program human resource management plan describes how people will be acquired and managed, not the formal naming and authorization of each project manager.
- C. The project scope statement describes deliverables and boundaries and is developed after the charter has named the project manager.
- D. The program management charter authorizes the program and the program manager, not the individual project managers of each component.
Question 27
Your program exists within a matrix structure. Your program has eight projects that all share resources from around the organization. You are concerned that some of the project team members may be over allocated and want to create a chart that will reflect the utilization of resources.
What kind of chart can show the utilization of project team members used in your program?
Show answer and explanation
Correct answer: C. Resource histogram
A resource histogram is a bar chart that shows the amount of time a resource or group of resources is scheduled to work in each period, often with a line marking the maximum available capacity. Bars that rise above that line reveal over-allocation, and low bars reveal underuse. Because the eight projects share people from across the matrix organization, a histogram built from all component schedules lets the program manager see where team members are over-allocated and plan leveling or reassignments.
Why the other options are wrong
- A. A network diagram shows the logical sequence of activities, not the amount of time each resource is scheduled to work.
- B. A resource breakdown structure is a hierarchical list of resources by category and type, and it does not show utilization over time.
- D. A Pareto chart ranks causes or defects by frequency to focus improvement effort, not resource usage.
Question 28
Which of the following statements are true regarding program scope changes? (Choose three.)
Show answer and explanation
Correct answer: A, C, D. Scope changes may originate from the stakeholders; The program has a change control board that analyzes changes at the program level; The change control process on a program is often hierarchical.
Program scope changes can originate from stakeholders as their needs, expectations or environment change, as well as from components, risks or strategy shifts. Programs commonly use a program-level change control board that analyzes proposed changes for their effect on the program as a whole, including cost, schedule, benefits and other components. Change control in a program is often hierarchical: changes within a component's authority are handled at that level, while changes that affect other components, program objectives or benefits are escalated to the program level or to the program governance board for decision.
Why the other options are wrong
- B. A change that could affect multiple components exceeds a project manager's authority and must be analyzed and decided at the program level.
Question 29
Which of the following can be used to help you or other project managers on future projects?
Show answer and explanation
Correct answer: D. Documentation
Documentation such as lessons learned, historical records, estimates versus actuals, and final reports gives future project managers evidence of what happened on earlier work. Once archived in the organization's knowledge base, it supports better estimating, risk identification, and planning on new projects and helps avoid repeating past mistakes. It is the only item listed that persists beyond the current initiative as a reusable knowledge asset.
Why the other options are wrong
- A. A sponsor is a person who provides resources and support for a specific initiative, not a record that informs future projects.
- B. A charter formally authorizes one particular project and is not a body of knowledge for later work.
- C. A stakeholder is a person or group affected by the work, not a reference that future project managers can consult.
Question 30
What is the other name for critical delivery dates?
Show answer and explanation
Correct answer: D. Milestones.
A milestone is a significant point or event in a schedule, such as a key delivery date or the completion of a major deliverable. Milestones have zero duration and are used to mark critical dates that the team, sponsor, and customers track closely, so critical delivery dates are commonly called milestones. At program level, milestones in the program roadmap also mark when component outputs and benefits are expected.
Why the other options are wrong
- A. Substantial completion is a contractual stage at which work is complete enough for its intended use, not a general name for critical dates.
- B. Phases are collections of logically related activities that span time, whereas critical delivery dates are single points.
- C. Flags are not a recognized scheduling term for critical delivery dates.
Question 31
What schedule analysis simulation tool allows you, the project manager, to review possible combinations of events such as optimistic, most likely and pessimistic outcomes for your project?
Show answer and explanation
Correct answer: D. Monte Carlo
Monte Carlo analysis is a simulation technique. It assigns a range of possible durations, such as optimistic, most likely and pessimistic values, to schedule activities and then recalculates the schedule thousands of times, each time drawing different values from those ranges. The result is a distribution of possible outcomes showing, for example, the probability of finishing by a given date. Because the question asks for a simulation tool that reviews possible combinations of events, Monte Carlo is the answer.
Why the other options are wrong
- A. PERT computes a single weighted average duration from three estimates using a formula; it is not a simulation of combined outcomes.
- B. GERT is a network diagramming technique that allows loops and conditional branches, not a simulation of combined schedule outcomes.
- C. A PMIS is the information system used to manage project data and is not itself a schedule simulation technique.
Question 32
To increase its presence and promote its products and services in new markets, a company begins to implement its new business strategy. The company's CEO endorses a new program to promote and support this strategy. However, before the program is formally initiated, this strategy must be aligned with the organization's strategic goals and objectives.
What should the program manager develop first?
Show answer and explanation
Correct answer: A. Program's risk threshold
Before the program is formally initiated, its strategy must be checked against the organization's strategic goals, and part of that alignment is agreeing how much risk the organization is willing to accept in pursuing the new markets. The program's risk threshold, derived from the organization's risk appetite and tolerance, is set first and is approved through governance. It provides the baseline against which program risks are later judged, and it feeds the risk management plan and the risk governance arrangements that are developed afterward in program planning.
Why the other options are wrong
- B. The program risk management plan is a planning artifact built on the agreed risk threshold, so it comes after the threshold is set.
- C. The resource management plan is developed during program planning, after the program is initiated and aligned with strategy.
- D. A risk and issue governance forum is established as part of the governance structure once thresholds and planning approaches are defined.
Question 33
You are the program manager for your organization. This program will last for two years and has eight projects. The cost of your program is $4 million and there are some risk concerns that may affect the overall cost of the program. Management is concerned with how long it will take the program to reach the management horizon.
What is management horizon also known as?
Show answer and explanation
Correct answer: A. Payback period
The management horizon is another name for the payback period: the length of time needed for the cumulative benefits or cash inflows of an investment to recover its initial cost. Management wants to know how long it will take before the $4 million program has paid for itself, and risks affecting program cost would push that point further out. A shorter payback period means less time with the investment at risk, which is why decision makers watch it closely.
Why the other options are wrong
- B. The cost performance index measures cost efficiency of work performed (EV / AC), not the time needed to recover the investment.
- C. A cost-to-benefits ratio compares total costs with total benefits but does not express a length of time.
- D. Return on investment expresses profitability as a percentage of the investment, not the time needed to recover it.
Question 34
Which of the following contract types is described in the statement below?
"The seller is reimbursed for all allowable costs for performing the contract work, and receives a fixed payment calculated as a percentage for the initial estimated project costs."
Show answer and explanation
Correct answer: A. Cost Plus Fixed Fee Contracts (CPFF)
In a cost plus fixed fee (CPFF) contract, the seller is reimbursed for all allowable costs of performing the work and also receives a fixed fee calculated as a percentage of the initial estimated project costs. The fee amount is set at the start and does not change with actual costs unless the project scope changes. This matches the description exactly, since the fee is neither tied to performance targets nor paid as part of a fixed price.
Why the other options are wrong
- B. A fixed price incentive fee contract sets a firm price and adjusts the seller's profit based on performance against targets, with no reimbursement of all allowable costs.
- C. A firm fixed price contract pays a set price for defined work regardless of the seller's actual costs.
- D. A cost plus incentive fee contract reimburses costs but pays a fee that varies with performance against agreed targets rather than a fixed amount.
Question 35
On which of the following documents do you work throughout the risk management processes?
Show answer and explanation
Correct answer: C. Risk register
The risk register is the working document used throughout the risk management processes. It is created when risks are identified, then updated with probability and impact ratings during qualitative and quantitative analysis, with owners and responses during response planning, and with status, triggers, new risks and closed risks while risks are monitored. Because every risk process reads from and writes to it, the risk register is the document you work on across all of them.
Why the other options are wrong
- A. The risk management plan defines how risk management will be conducted and is set up early rather than worked on in every risk process.
- B. The project management plan integrates all subsidiary plans and is not the risk-specific document updated by each risk process.
- D. The project charter authorizes the project and records only high-level risks, and it is not updated through the risk processes.
Question 36
A program experiences issues during execution. The stakeholders are concerned and the program manager feels pressure to act on these issues.
What tool should be used to trigger a planned response when receiving lower than expected results?
Show answer and explanation
Correct answer: A. Key performance indicators
Key performance indicators (KPIs) are measurable values with defined targets and thresholds that are tracked throughout program delivery. When actual results fall below an agreed threshold, the KPI signals that a predefined, planned response should be triggered, which lets the program manager act on objective data rather than react to pressure from concerned stakeholders. Thresholds and responses are agreed in advance, so the response is consistent, timely, and already endorsed through the program's governance.
Why the other options are wrong
- B. The benefits management plan describes how benefits will be defined, realized, and sustained, but it is not the measure that signals a shortfall.
- C. The communications management plan governs what information goes to whom and when, and it does not detect underperformance.
- D. An Ishikawa diagram is an analysis tool for exploring causes after a problem is known, not a trigger for a planned response.
Question 37
Which of the following statements is most accurate about the critical path?
Show answer and explanation
Correct answer: B. The critical path has no float.
The critical path is the sequence of activities with the longest total duration through the schedule network, and it determines the shortest possible project duration. Activities on it have zero total float in a normal schedule, so any delay to one of them delays the project finish date unless the time is recovered. That lack of float is what makes the path critical and why schedule compression and close monitoring focus on these activities.
Why the other options are wrong
- A. A schedule can have more than one critical path when several paths share the same longest duration.
- C. The critical path is the longest path by duration, not by the number of activities it contains.
- D. The critical path is determined by durations and logic, not by a risk assessment of which path is most likely to fail.
Question 38
A knowledge area defines a subset of program management and its processes within that domain. For example, the knowledge area of quality management includes the processes related directly to quality management only.
Which knowledge area ensures that all knowledge areas interact correctly with one another?
Show answer and explanation
Correct answer: C. Integration management
Integration management is the knowledge area that unifies, coordinates and combines the processes of all other knowledge areas. Each other area, such as quality, risk or communications, covers only its own subset of processes, while integration management makes sure their outputs fit together, that trade-offs between them are balanced, and that changes in one area are reflected in the others. That cross-cutting coordinating role is what ensures all knowledge areas interact correctly with one another.
Why the other options are wrong
- A. Program benefits management focuses on identifying, delivering and sustaining benefits, not on coordinating other knowledge areas.
- B. Program management planning is an activity that produces the plan, not a knowledge area that coordinates all the others.
- D. Communications management governs information exchange with stakeholders and does not coordinate how all knowledge areas interact.
Question 39
Stakeholders ask the program manager to assess reasons for the project's delay and provide a report. Also, the program manager must identify steps to be taken to ensure the program will finish on time and within budget.
The program manager distributes information in accordance with which of the following?
Show answer and explanation
Correct answer: D. Communications management plan
The report on reasons for the delay and the steps to finish on time and within budget is program performance information, and its distribution follows the communications management plan. That plan defines what information stakeholders receive, in what format, how often, through which channels, and who is responsible for sending it. Distributing the report according to the plan ensures that the right stakeholders receive accurate, timely information in the form they need, consistent with how communication was agreed for the program.
Why the other options are wrong
- A. The stakeholder engagement plan sets strategies for engaging stakeholders, while the mechanics of distributing information are defined in the communications plan.
- B. The governance charter establishes oversight structure and decision rights, not how performance information is distributed.
- C. The schedule management plan defines how the schedule is developed and controlled, not how reports reach stakeholders.
Question 40
A program sponsor is concerned about the status of high-priority risks and budget variances.
The program manager should refer to which of the following?
Show answer and explanation
Correct answer: A. Program status dashboard
A sponsor who wants to see the current state of high-priority risks and budget variances needs a concise, executive-level view. A program status dashboard summarizes key indicators such as risk status, cost variance, and schedule performance, often using red, yellow, and green signals, so the sponsor can see at a glance where attention is needed. Referring the sponsor to the dashboard gives a quick, focused answer to the specific concerns raised.
Why the other options are wrong
- B. The program management plan describes how the program will be managed, not its current risk and budget status.
- C. A program performance report is detailed and periodic, so it is less suited to giving the sponsor a quick view of these specific indicators.
- D. The PMIS is the system that stores program data, not a presentation of status tailored for the sponsor.
Question 41
What is the primary purpose of a project kick-off meeting?
Show answer and explanation
Correct answer: A. To establish why the project has been initiated.
The primary purpose of a kick-off meeting is to communicate why the project has been initiated: its objectives, the business need it serves and the outcomes it must achieve. Bringing the team and key stakeholders together around that shared purpose builds understanding and commitment before the work moves forward, and it gives every later discussion of scope, schedule and approach a common reference point. Other topics may be covered in the meeting, but they serve this central goal of aligning everyone on the reason the project exists.
Why the other options are wrong
- B. The project management plan is a tool for managing the work, and the meeting is not held to establish the plan's direction or purpose.
- C. Roles and responsibilities are defined during planning, so the meeting may confirm them but they are not its primary purpose.
- D. The project manager and sponsor are named when the project is chartered, well before the kick-off meeting takes place.
Question 42
After program closure, the lessons learned document becomes part of ____?
Show answer and explanation
Correct answer: B. The company's organizational process assets
At program closure, lessons learned are archived in the organization's knowledge repositories, where they become part of its organizational process assets. Organizational process assets include the plans, processes, policies, procedures, templates, historical information, and knowledge bases that the organization makes available to future programs and projects. Adding lessons learned to this repository lets later program managers reuse what worked, avoid repeated mistakes, and improve estimates, which is the purpose of capturing lessons in the first place.
Why the other options are wrong
- A. The risk register belongs to a specific program and closes with it, so it is not where organizational knowledge is kept for reuse.
- C. A performance record describes how one program performed; lessons learned are placed in the organization-wide knowledge base for future use.
- D. The program charter is the initiating document that authorizes the program and is not updated with closure knowledge.
Question 43
The chief executive officer reminds a program manager that a program must deliver a 30% reduction in customer complaints by the end of the year.
Where is this expectation documented?
Show answer and explanation
Correct answer: C. Benefits management plan
A 30% reduction in customer complaints by year end is a measurable program benefit with a target and a deadline. Expected benefits, their metrics, targets, timing, and the accountability for realizing them are documented in the benefits management plan. This plan is how the program manager and governance track whether the program is producing the value it promised, so the CEO's expectation is recorded and monitored there.
Why the other options are wrong
- A. Program quality standards define the quality requirements for deliverables and processes, not business outcome targets.
- B. A customer management plan is not a standard program document, and the stakeholder engagement plan does not record benefit targets.
- D. The benefits sustainment plan covers how benefits are maintained after transition, not where the original benefit target is defined.
Question 44
During program execution, how does a program manager ensure that benefits are being realized in accordance with program governance?
Show answer and explanation
Correct answer: B. By updating the benefits register
During program delivery, benefits are monitored against the measures defined for them, and progress is recorded in the benefits register. Keeping the register updated with actual performance against key performance indicators, status and target dates provides the information that program governance uses to review benefits delivery and make decisions. The updated register is the mechanism through which the program manager ensures benefits realization is tracked and reported in accordance with governance.
Why the other options are wrong
- A. Reviewing the benefits management plan checks how benefits should be managed, not whether they are actually being realized.
- C. Benefits analysis and planning is a definition activity, completed before execution begins.
- D. The business case justifies the program and is not used to track benefits during execution.
Question 45
Julie is the project manager of the NHQ Project. She and her project team have successfully finished the project and the customers have signed the project closure agreement. Julie has compiled all of the project records and the project's lessons learned documentation.
What should Julie do with the project's lessons learned documentation?
Show answer and explanation
Correct answer: D. These are transferred to the lessons learned knowledge base.
Once the project is closed and the records are compiled, the lessons learned documentation is transferred to the organization's lessons learned knowledge base. Lessons learned are organizational process assets: storing them in the shared repository makes what worked and what did not available to future projects and programs, which improves their estimates, plans and risk responses. Their value lies in reuse across the organization, not in evaluating a single project or person.
Why the other options are wrong
- A. Lessons learned are an organizational asset intended for future work, not a personal reference for Julie's performance review.
- B. Handing the documentation to the sponsor alone limits its use and does not make it available to future projects.
- C. Giving lessons learned to the steering committee for a performance review does not preserve them for use by future projects.
Question 46
After an organization initiates a strategic program, several project managers express interest in joining the program team. The program manager's supervisor recommends a list of project managers to be part of the team.
What should the program manager do to select the project managers?
Show answer and explanation
Correct answer: A. Complete a skill set inventory and select the most suitable resource(s)
Program team members should be chosen on the basis of the skills and competencies the program actually needs. Building a skill set inventory lets the program manager compare each candidate's capabilities against the program's resource requirements and select the most suitable people objectively. This approach supports strategic alignment and benefits delivery, and it gives a defensible basis for the decision whether the candidates volunteered or were recommended by the supervisor. Interest alone, or a recommendation alone, does not show that a candidate fits the program's needs.
Why the other options are wrong
- B. Collecting CVs and interviewing only the volunteers ignores a structured comparison of skills against program requirements and may miss better-qualified resources.
- C. Accepting the supervisor's list without evaluation abandons the program manager's responsibility to match skills to program needs.
- D. Availability matters, but it is checked after the required skills are known and candidates are assessed, so it does not decide who is most suitable.
Question 47
You have created a control chart for a repeatable process in your program. You have discovered that the seven most recent measurements are all on the positive side of the mean in your control chart.
What is this phenomenon called?
Show answer and explanation
Correct answer: C. Rule of Seven
The rule of seven is a control chart heuristic: when seven consecutive data points fall on the same side of the mean, the run is considered nonrandom even if every point is within the control limits. Such a run signals a likely assignable cause, so the process should be investigated as potentially out of control. Seven recent measurements all above the mean therefore trigger the rule of seven.
Why the other options are wrong
- A. Rule of improvement is not a recognized control chart rule.
- B. Mean improvement is not a control chart term, and a run on one side of the mean signals a possible assignable cause rather than an improvement.
- D. Low-riding mean is not a recognized control chart phenomenon, and the points here are above the mean.
Question 48
Marty is the project manager of the recently completed NHK Project. The project was deemed successful by the project customer and they have signed the formal acceptance documentation. Marty has written the final project report, released the project team, and completed the lessons learned documentation.
What else should Marty do in the closure of the NHK Project?
Show answer and explanation
Correct answer: B. Archive the project records.
Marty has obtained formal acceptance, written the final report, released the team and recorded lessons learned. The remaining closure step is to archive the project records: plans, baselines, contracts, correspondence, acceptance documents, the final report and lessons learned are indexed and stored in the organization's repository. Archiving preserves historical information for audits, legal needs and future estimating and planning, and it makes the knowledge from the NHK Project available to later projects and to the program.
Why the other options are wrong
- A. The summary of project variances belongs in the final project report, which Marty has already completed.
- C. Risk and cost outcomes are summarized in the final report and lessons learned, both of which are already done.
- D. Closing a project office is not a standard project closure step, and archiving the records is the activity still outstanding.
Question 49
You are the program manager for your organization and are planning the composition of the project team. In your organization resources are used from throughout the company and may serve on more than one project. While you, the program manager, will have most of the authority on the program you want the project managers to have authority over the project decisions.
What type of an organizational structure does your organization have?
Show answer and explanation
Correct answer: A. Strong Matrix
Resources drawn from across the company and shared among several projects are the signature of a matrix organization. In a strong matrix, authority sits mainly with the program and project managers rather than with functional managers, so the program manager holds most of the authority over the program and can delegate project decisions to the project managers. That combination of shared resources and strong program and project authority describes a strong matrix structure.
Why the other options are wrong
- B. In a functional structure, functional managers hold the authority and program or project managers have little or none.
- C. In a weak matrix, functional managers keep most of the authority and the program manager acts more as a coordinator.
- D. In a projectized structure, resources are dedicated to the program rather than drawn from throughout the company and shared across efforts.
Question 50
Company A recently signed a contract with a strategic business partner, Company B, to jointly roll out a new technology. Company B is excited about the joint marketing opportunity. Company A's component Quality Assurance team has expressed concerns to you, the program manager, that the product is being rolled out prematurely and has identified potential issues with backend support systems. QA, however, assures you that a manual workaround is possible, but not ideal.
Company B requests an enhancement to the new product. In a meeting with Company B, you determine that additional funding will be required and resources allocated and scheduled.
What is your MOST appropriate next step?
Show answer and explanation
Correct answer: B. Use an integrated change control process.
Company B's enhancement request is a change that requires additional funding, resources and schedule. Any such change must go through the integrated change control process defined in the program management plan, where its impact on scope, cost, schedule, quality, risk and benefits is analyzed, including the QA team's concerns about readiness. The change is then approved or rejected by the appropriate authority, and the program manager communicates the decision to Company B. This avoids unilateral commitments in either direction.
Why the other options are wrong
- A. Redirecting funds from a cancelled project bypasses governance and has no approval behind it.
- C. Management reserve is not used to fund a new customer enhancement without an approved change.
- D. Refusing outright decides the request without analyzing its impact or value and could damage a strategic partnership.
Question 51
A country is in the process of strengthening its defense program. A key project is not meeting its specified performance objectives. The project manager initiates a change request to address this issue.
What should the program manager do NEXT?
Show answer and explanation
Correct answer: C. Assess the benefits and impact to the program
When a component raises a change request, the program manager's next step is to analyze it at the program level. Assessing how the proposed change affects program benefits, other components, interdependencies, cost, schedule, and risk provides the information needed to decide whether to approve, reject, or escalate it through governance. Only after this assessment can the program manager choose an appropriate response, such as accepting the change, re-planning, or recommending other action.
Why the other options are wrong
- A. Considering closing the project is premature before the change request and its effect on program benefits have been assessed.
- B. Re-baselining program objectives is a major governance decision that cannot be justified before the impact is analyzed.
- D. Updating the risk register may follow, but it does not evaluate the change request or its effect on benefits.
Question 52
In your organization there are rules and procedures that the program manager must follow and abide by before the program can begin and must continue to follow once the program is in execution.
What term is assigned to the enforcement of these program management rules and procedures?
Show answer and explanation
Correct answer: A. Program governance
Program governance is the framework of rules, policies, procedures, roles and decision rights through which the organization oversees and controls a program. It applies before the program starts, for example through approval of the business case and charter, and continues throughout delivery through governance board reviews, phase gates, audits and escalation paths. The enforcement of program management rules and procedures, making sure the program manager follows them at every stage, is the function of program governance.
Why the other options are wrong
- B. Organizational process assets are the policies, procedures and templates themselves; enforcing compliance with them is the role of program governance.
- C. Program standards are requirements the program follows, not the oversight function that enforces them.
- D. Process analysis is a technique for examining and improving processes, not the term for enforcing program rules and procedures.
Question 53
You are identifying stakeholders for your program to create new software for your organization. The software will affect the ordering by the customer, the manufacturing of the product, inventory, and account management. Sarah, a key stakeholder in your program, is skeptical of one application affecting so many parts of the organization. She prefers that several applications be created instead of the approach your program will take. In stakeholder identification how would you categorize Sarah?
Show answer and explanation
Correct answer: B. Negative
Stakeholders are commonly categorized by their attitude toward the program as positive (supportive) or negative (opposed). Sarah is skeptical of the program's single-application approach and wants several separate applications built instead, so she does not support the direction the program is taking. That makes her a negative stakeholder. Identifying her this way early lets the program manager analyze her concerns, plan engagement to address them, and reduce the chance that her resistance threatens the program.
Why the other options are wrong
- A. Active describes a stakeholder's level of involvement, not opposition to the program's approach, which is Sarah's defining trait.
- C. A positive stakeholder supports the program's approach, while Sarah opposes it and prefers an alternative.
- D. Passive describes low involvement, yet Sarah is a key stakeholder voicing a clear objection, and her defining trait is opposition.
Question 54
You are a program manager for your organization. You have proposed a program to the management that will last four years and will cost $35 million to create.
Management has asked to see the program charter and the proposed costs and benefits of the program.
Management agrees to your program charter and proposes to fund the program in increments at the completion of each milestone.
What type of funding does management propose for this program?
Show answer and explanation
Correct answer: B. Step funding
Step funding releases program money in increments as defined milestones or phases are completed, rather than committing the entire budget at authorization. Management has approved the charter for a four-year, $35 million program but will fund it in increments at the completion of each milestone. This limits the organization's financial exposure, lets governance confirm progress and benefits at each step, and keeps the option to adjust or stop the program between increments.
Why the other options are wrong
- A. Tentative funding is not a defined funding approach and does not describe releasing money in milestone increments.
- C. Milestone approval describes a review decision at a milestone, not the method of releasing funds in increments.
- D. Phase gate estimating refers to refining estimates at gates and is not a funding approach.
Question 55
A program has a BAC of $550,000 and is currently 45 percent complete though was actually scheduled to be 55 percent complete by this time.
The program has spent, however, $265,000 to date. Based on this information what is the cost performance index (CPI) for this program?
Show answer and explanation
Correct answer: A. .93
CPI = EV / AC. Earned value is percent complete times BAC: 0.45 x $550,000 = $247,500. Actual cost to date is $265,000. CPI = $247,500 / $265,000 = 0.934, or .93. A CPI of .93 means the program is getting about 93 cents of earned value for every dollar spent, and any CPI below 1.0 means the program is over budget. The scheduled 55 percent figure is used for planned value and the schedule performance index, not for CPI.
Why the other options are wrong
- B. This is the schedule performance index, EV / PV = $247,500 / $302,500 = 0.82, not the CPI.
- C. This is a dollar amount, while CPI is a ratio of earned value to actual cost.
- D. This is a dollar amount and is not even the cost variance, which is EV minus AC, or -$17,500.
Question 56
You are the program manager for your organization. You are examining the order of the activities in your program schedule and would like to change some of the ordering to alleviate scheduling conflicts, risks, and based on your experience with the discipline the program uses. Some of the activities you can rearrange while some of the activities must be completed in a particular order.
What term describes the activities that can happen in any order?
Show answer and explanation
Correct answer: B. Discretionary dependencies
Discretionary dependencies, also called preferred or soft logic, are sequencing choices based on best practices, experience in the application area or a preferred approach rather than on the physical nature of the work. Because they are chosen rather than required, the program manager can resequence these activities to relieve scheduling conflicts or reduce risk. Activities that must occur in a particular order are bound by mandatory dependencies, so the activities that can be rearranged are those with discretionary dependencies.
Why the other options are wrong
- A. A finish on constraint fixes an activity's completion to a specific date, which removes flexibility rather than describing it.
- C. Mandatory dependencies are inherent in the work or required by contract or law and fix the order of activities.
- D. Benefits management dependencies is not a recognized dependency type for sequencing schedule activities.
Question 57
A program manager prepares the program for review to secure funding by senior management.
Which of the following must the program manager identify when creating the program charter?
Show answer and explanation
Correct answer: D. Key decision makers or stakeholders in the program and their expectations and interests
The program charter authorizes the program and must show senior management who has a stake in it and what they expect. Identifying the key decision makers and stakeholders, along with their expectations and interests, demonstrates that the program has been shaped around the people who will fund, govern, and be affected by it. This stakeholder understanding underpins the support needed to secure funding and guides the program's later stakeholder engagement and governance.
Why the other options are wrong
- A. Specific milestone dates, budgets, and staff details are developed in later planning, not identified in the charter.
- B. The benefits management plan is produced after the charter, so its assumptions are not identified when the charter is created.
- C. Organizational delivery processes are worked out in program planning rather than identified in the charter.
Question 58
Julie is the program manager of the NHQ Program for her organization and she believes the program is now complete. Julie is closing her program, and she's working with her program sponsor to review the program's deliverables and benefits. Janet, the program sponsor, is very pleased with the program and agrees that the program has met the program scope.
What should Julie and the program sponsor do next?
Show answer and explanation
Correct answer: D. Sign the certificate of program closure
Julie and the program sponsor have reviewed the deliverables and benefits, and the sponsor agrees the program has met its scope. The next step is to formalize that acceptance by signing the certificate of program closure, which records that the program is complete and authorizes the remaining closure activities. Formal acceptance comes first because it is the decision that the program has achieved what it set out to do, after which resources are released and records are archived.
Why the other options are wrong
- A. Constituent projects are closed as each component completes and transitions during delivery, so they are not the next step after the sponsor's acceptance.
- B. There is nothing to complete in the budget at this point, and financial closure follows the formal acceptance.
- C. Releasing resources follows formal closure, because the program must first be accepted as complete.
Question 59
You are the program manager for the BHN Program. Your program has 122 stakeholders that you'll need to plan to communicate with. Considering the size of the program how many communication channels do you have in this program?
Show answer and explanation
Correct answer: D. 7,381
The number of potential communication channels is n(n - 1) / 2, where n is the number of stakeholders. With 122 stakeholders, the result is 122 x 121 / 2 = 14,762 / 2 = 7,381 channels. Each channel is a unique pair of people who may need to exchange information, so the count shows how quickly communication complexity grows as stakeholders are added and why a large program needs a deliberate communications management plan.
Why the other options are wrong
- A. 244 is simply 122 x 2 and does not count the unique pairs among the stakeholders.
- B. 122 is the number of stakeholders, not the number of channels between them.
- C. 14,884 is 122 x 122, which counts each pair twice and includes each person paired with themselves.
Question 60
A program includes the development and shipping of 12 million product units over the next year. However, one program supplier has a history of overestimating its planned volume, which puts the product launch at risk.
What should the program manager do to monitor and control the supplier?
Show answer and explanation
Correct answer: C. Examine performance reports, audits, and inspections.
Monitoring and controlling a supplier means comparing actual performance with contractual commitments. Performance reports show delivered volumes against the plan, while audits and inspections verify the supplier's actual capacity, processes and output. Because this supplier has a history of overestimating planned volume, objective evidence of its real performance lets the program manager detect shortfalls early, take corrective action under the contract and protect the product launch. This is the core of procurement administration and control at the program level.
Why the other options are wrong
- A. Updating the procurement plan is a planning activity and does not track the supplier's actual delivery performance.
- B. Stakeholder approval of procurement activities does nothing to monitor or control how the supplier performs.
- D. Proposal evaluation criteria and risk analyses support supplier selection and planning, not oversight of a supplier already under contract.
Question 61
You are the program manager of the GHY Program in your organization. It has come to your attention that some of the project managers in your program are adding time to each project activity in an effort to pad their durations in case some event happens in their project that will cause delays.
What principle should you share with these project managers that counterattacks the concept of padding activities with additional time?
Show answer and explanation
Correct answer: A. Parkinson's Law
Parkinson's Law holds that work expands to fill the time available for its completion. When project managers pad every activity duration, the work tends to consume the extra time rather than finishing early, so the padding lengthens the schedule without reducing risk. Sharing this principle encourages realistic activity estimates, with uncertainty handled openly through risk analysis and managed reserves instead of hidden padding in each activity.
Why the other options are wrong
- B. The Law of Diminishing Returns concerns declining output per added unit of input, not the use of padded time.
- C. The 80/20 Law says a small number of causes produce most effects and does not address duration padding.
- D. Pareto's Law is the 80/20 principle about causes and effects and offers no argument against padding durations.
Question 62
As a program manager you must also understand the project management lifecycle and the project lifecycle.
What is the difference between the two?
Show answer and explanation
Correct answer: D. The project management lifecycle is universal to all projects and the project lifecycle is unique to each project.
The difference lies in how widely each one applies. The project management life cycle is the set of management process groups (initiating, planning, executing, monitoring and controlling, and closing) that every project uses, whatever its industry or type, so it is universal. The project life cycle is the sequence of phases a particular project moves through, such as design, build and test, and those phases are set by the nature of that project's work, so it is unique to each project.
Why the other options are wrong
- A. The two life cycles are distinct concepts, one covering management processes and the other the phases of the work.
- B. Initiating, planning, executing, monitoring and controlling, and closing are process groups that repeat within every phase rather than phases, and option B does not state the key distinction that one cycle is universal while the other is unique to each project.
- C. This reverses the relationship, since the management processes are universal and the project phases vary by project.
Question 63
A program receives initial approval from the selection committee to proceed with the program development.
What should the program manager do next?
Show answer and explanation
Correct answer: D. Continue to develop the high-level program road map.
Initial approval from the selection committee signals that the program has been accepted for further development; building support and approval was the purpose of the work that preceded it. With that approval granted, the program manager continues developing the high-level program roadmap, which lays out the major components, milestones, and decision points and provides the basis for detailed planning. Continuing the roadmap carries the work forward from approval into structured definition of how the program will deliver its benefits.
Why the other options are wrong
- A. Defining architecture and assigning benefits to components follows once the roadmap gives the program its high-level structure.
- B. Establishing a firm foundation of support and approval is the purpose of the work that has just secured initial approval.
- C. Lessons learned and historical information are inputs used to shape the program before approval, not the next step after it.
Question 64
Which of the following statements is the most accurate when it comes to program change requests for the program scope?
Show answer and explanation
Correct answer: D. The change request must be documented.
Every program change request must be documented so it can be formally logged, analyzed for impact, and decided on through the change control process defined in the program management plan and governance framework. Documentation gives an audit trail of what was requested, who approved or rejected it, and why, and it allows approved changes to be reflected in the plans and baselines. A scope change may legitimately affect schedule, cost or quality; impact analysis evaluates those effects rather than forbidding them.
Why the other options are wrong
- A. A scope change may legitimately affect the schedule; the impact is analyzed and approved, not prohibited.
- B. A scope change may legitimately increase or decrease cost, and the cost impact is evaluated as part of the decision.
- C. Quality impacts are assessed as part of impact analysis, and there is no rule that a change request can have no effect on quality.
Question 65
The program sponsor returns from a board of directors meeting after identifying a significant risk to the program schedule. This may impact the program's benefits realization.
What should the program manager do next?
Show answer and explanation
Correct answer: D. Document the risk and create a mitigation plan.
A newly identified risk must first be formally recorded and then given a planned response. The program manager documents the risk in the program risk register, analyzes its probability and its impact on the schedule and on benefits realization, and develops a mitigation plan with an owner and triggers. Only after the risk is documented and a response is planned can the program manager update related plans, seek any approvals needed through governance and implement the response. This sequence follows the program risk management plan and keeps the program sponsor and governance informed with a clear strategy.
Why the other options are wrong
- A. Updating the benefits management plan and risk register skips planning a response to the risk, and plan updates come after the risk has been analyzed and a response planned.
- B. No mitigation plan exists yet for a risk that has just been identified, so there is nothing to implement.
- C. Changing program scope is a drastic response chosen before any analysis and would require approval through governance.
Question 66
An organization initiates an innovation program to deliver exceptional performance and benefits. After the program transition plan is in place and the implementation of a benefits sustainment plan starts, the program manager discovers the program may be shut down due to lack of funding.
To ensure continued funding for the program, what should the program manager do next?
Show answer and explanation
Correct answer: D. Review the program business case and the program's strategic alignment and long-term benefits with the program governance board
Funding decisions rest on whether a program still justifies its investment and supports organizational strategy. Reviewing the program business case, together with its strategic alignment and long-term benefits, with the program governance board puts the case for continued investment before the body that holds decision rights over the program's future. This revalidation addresses the full rationale for the program, financial and strategic, and lets the governance board make an informed decision about continued funding rather than reacting to a single metric.
Why the other options are wrong
- A. Completing the sustainment plan and updating the benefits register does nothing to secure the funding the program now risks losing.
- B. A revised ROI shown only to sponsors is a single financial view and bypasses the governance board that decides on continued investment.
- C. A cost-benefit analysis for sponsors alone omits strategic alignment and does not engage the governance board that controls the funding decision.
Question 67
Two project managers in your program, Marcy and Mary, are not agreeing with the scheduling of project resources and they have asked for your help to determine the resolution. They are refusing to speak with each other and each is telling you that the other person is scheduling project resources for the project that are already scheduled to complete the work. In the communication model, what component represents the disagreement of these two project managers and their refusal to speak with each other about a resolution?
Show answer and explanation
Correct answer: C. Barrier
In the communication model, a barrier is anything that blocks or prevents a message from passing between sender and receiver. Marcy and Mary are refusing to speak with each other, so no message is exchanged at all and the resource scheduling problem cannot be resolved between them. Their disagreement and refusal to communicate therefore act as a barrier. The program manager's role is to remove that barrier, for example by bringing both project managers together to review the shared resource schedule and agree on a resolution.
Why the other options are wrong
- A. Conflict names the underlying disagreement over resources, not the communication model element that stops the message from flowing.
- B. Noise is interference that distorts a message in transit, whereas here no message is being sent at all.
- D. Ad hoc describes informal, unplanned communication, not an element that blocks communication.
Question 68
A program manager is identifying and verifying risks as outlined in the risk management plan.
The results will be recorded in which of the following?
Show answer and explanation
Correct answer: A. Risk register
The risk management plan defines how risks will be identified, analyzed, and tracked, and the results of identifying and verifying risks are recorded in the risk register. The register captures each risk's description, causes, probability and impact, owner, and response, and it is updated throughout the program as risks are analyzed, responded to, and closed. It serves as the central record that the program team and governance use to monitor program risk exposure.
Why the other options are wrong
- B. Risk monitoring and control is an activity that uses the register, not the place where identified risks are recorded.
- C. Risk response planning is a later activity that develops responses for risks already recorded in the register.
- D. A risk mitigation strategy is a type of response to a threat, not the record of identified risks.
Question 69
A wildlife protection organization opposes your program, which involves the cutting of around 200 trees to make way for the construction of a building.
Which of the following correctly defines the organization in program management terminology?
Show answer and explanation
Correct answer: A. Negative stakeholder
A negative stakeholder is a person or group that sees the program's outcomes as harmful to their interests and may oppose or obstruct it. The wildlife protection organization opposes the program because it requires cutting around 200 trees, so it is a negative stakeholder. The program manager should identify such stakeholders early, understand their concerns and engage them proactively, since unmanaged opposition can create delays, legal challenges or reputational harm.
Why the other options are wrong
- B. A positive stakeholder supports the program and expects to benefit from it, which is the opposite of this organization's position.
- C. Key stakeholders are defined by their influence or importance to the program, not by opposition to it.
- D. Stakeholders are classified by attitude, interest and influence, and an opposing group falls under the negative category rather than a 'hurdle' category.
Question 70
Part of your job as the program manager is to coach the project managers on their duties and goals. One of the project managers, Holly, is having trouble discerning the difference between quality assurance and quality control. She understands that she needs both to help you reach the program goals.
Which statement best describes quality assurance for a project within your program?
Show answer and explanation
Correct answer: B. Quality assurance is a prevention-driven process to keep mistakes out of the project.
Quality assurance is prevention-driven: it focuses on the processes used to produce deliverables, through audits, process analysis and adherence to standards, so that mistakes are kept out of the work in the first place. Quality control, in contrast, is inspection-driven and examines completed deliverables to detect defects. For Holly, quality assurance gives confidence that the project's processes will produce results that meet the quality requirements supporting the program goals.
Why the other options are wrong
- A. An inspection-driven process that finds mistakes in completed work describes quality control, not quality assurance.
- C. Defining quality standards and setting goals is quality planning, which comes before quality assurance.
- D. An organization-wide approach to meeting organizational goals and metrics describes the organization's quality policy and management system, not project quality assurance.
Question 71
A multiyear program is ready to conclude. It has achieved all business objectives and is delivering its intended benefits. However, the program sponsor is not willing to sign the formal program closure acceptance document and the program continues to incur operational costs.
What should the program manager do next?
Show answer and explanation
Correct answer: B. Escalate the issue to the program governance board
The program has met its objectives and is delivering benefits, yet the sponsor will not sign the closure acceptance, and the program keeps incurring operational costs that should belong to the receiving organization. Resolving a sponsor's refusal is beyond the program manager's authority, so the issue should be escalated to the program governance board, which holds decision rights over program closure. The board can address the sponsor's concerns and authorize closure and transition.
Why the other options are wrong
- A. Requesting more budget funds the continuing costs without addressing why closure acceptance is being withheld.
- C. Lobbying stakeholders to pressure the sponsor bypasses the governance framework and can damage relationships.
- D. Archiving documents is a closure activity that cannot proceed properly until closure has been accepted.
Question 72
A regional finance program is impacted by a new currency regulation issued by a country in the region. The new regulation requires changes to the financial statements of that country's branches by the end of the fiscal year. Failing to comply with the regulation may result in fines and/or closure of the branches. A branch general manager immediately meets with the program manager to select and secure a local fiscal expert to support the regulation, as these types of resources are in high demand. There is a high risk that the changes will not be completed on time if the resource is not secured.
What should the program manager do to address the risk?
Show answer and explanation
Correct answer: D. Assess the risk, incorporate it in the program's risk management plan, and meet with the steering committee.
A high-probability risk with severe consequences, such as fines or branch closure, must be handled through the program's risk management process. The program manager first assesses the risk, then records it and its response strategy under the program risk management plan so it is tracked and owned. Because securing a scarce resource and the potential regulatory penalties carry organization-level impact, meeting with the steering committee brings the issue to governance for timely decisions and support, such as approving funding to secure the fiscal expert.
Why the other options are wrong
- A. Lobbying the government to change its deadline is outside the program manager's role and does not address the resource risk.
- B. Planning for fines and closure accepts failure instead of acting to secure the resource that prevents it.
- C. Negotiating an incentive contract commits the program before the risk is assessed and before governance approves the response.
Question 73
An organization is considering a new program. The program has a cost of $1,950,000 and will last for three years.
What is the minimum future value this organization should expect to receive from this program if it is initiated and the rate of return is six percent?
Show answer and explanation
Correct answer: A. $2,322,481
The minimum value the organization should expect is the amount the $1,950,000 investment would grow to if it simply earned the required six percent rate of return for three years. Future value is calculated as FV = PV x (1 + r)^n. Here FV = $1,950,000 x (1.06)^3 = $1,950,000 x 1.191016 = $2,322,481. Any return below this figure means the program earns less than the organization's required rate, so $2,322,481 is the minimum future value that justifies initiating the program.
Why the other options are wrong
- B. $1,950,000 is only the original cost and ignores three years of return at six percent.
- C. $2,067,000 applies six percent for a single year ($1,950,000 x 1.06) instead of compounding over three years.
- D. $1,950,001 is one dollar above the cost and reflects no rate of return over the three years.
Question 74
The program manager wants to increase the team's commitment to the program objectives.
The program manager should do which of the following?
Show answer and explanation
Correct answer: D. Work with the sponsor, program stakeholders, and the program management office to identify the organization's best practices.
Team commitment to program objectives grows when the practices the team follows are understood, endorsed, and visibly supported by everyone who matters to the program. Working with the sponsor provides executive backing, involving the program stakeholders brings their expectations and buy-in into the approach, and the program management office contributes the organization's standards, methods, and lessons learned. Identifying best practices together with all three builds shared ownership of how the program will achieve its objectives.
Why the other options are wrong
- A. Working only with the sponsor leaves out the stakeholders' buy-in and the PMO's knowledge of organizational practices.
- B. Leaving out the sponsor removes the executive backing that signals the practices and objectives have organizational support.
- C. The PMO alone can supply practices but not the sponsor and stakeholder endorsement that drives commitment.
Question 75
Near the completion of a transformation program, the operations manager is concerned that their department failed to be notified in advance of the new service being transitioned into operations. They claim that their department did not approve this service, and is now unprepared and untrained to support the transformation.
What should the program manager have done first to prevent this?
Show answer and explanation
Correct answer: B. Created a transition plan during the planning phase for the impacted operational area
The operations manager's complaints (no advance notice, no approval, and no training) all point to the absence of a transition plan. A transition plan created during planning for the affected operational area identifies the receiving organization, defines acceptance criteria and approvals, schedules readiness activities such as training and support arrangements, and engages operations well before handover. Building it early would have prepared the department to accept and sustain the new service and its benefits, preventing each of the problems now raised.
Why the other options are wrong
- A. Listing the operations manager as a stakeholder alone would not have arranged approval, readiness, or training for the handover.
- C. A communications plan informs people but does not secure operational acceptance, readiness, or training.
- D. Training alone would not have secured the department's approval or full readiness to support the new service.
Question 76
Which of the following documents contain a list of all problems, unfavorable events, or situations that occurred so far in the program?
Show answer and explanation
Correct answer: C. Program issue register
The program issue register (issue log) records problems, unfavorable events and situations that have already occurred and must be dealt with. Each entry typically captures a description of the issue, its owner, priority, actions taken and status, so issues can be tracked to resolution or escalated through program governance when they exceed the program manager's authority. The distinction from risks is timing: risks are uncertain future events, while issues are current realities.
Why the other options are wrong
- A. The program charter authorizes the program and states its purpose and high-level objectives; it does not log problems that occur.
- B. The risk register holds uncertain events that might happen, while problems that have already occurred are tracked as issues.
- D. The program scope statement defines what the program will deliver and does not track problems or unfavorable events.
Question 77
During the last steering committee meeting, a program manager presented the benefits register to the program governance board. Since the intended benefits of the program were realized, the program manager was asked to transition the program into operations.
At this stage, what is expected during the post-review session organized by the program manager?
Show answer and explanation
Correct answer: D. Feedback and lessons learned
Once benefits have been confirmed and the governance board has directed transition to operations, a post-review session is held to reflect on how the program was run. Its purpose is to collect feedback from stakeholders and the team and to record lessons learned about what worked and what did not. These insights are added to the organization's knowledge base to improve future programs.
Why the other options are wrong
- A. Earned value reporting tracks performance during delivery and is not the purpose of a post-review after benefits are realized.
- B. Customer sign-off is an acceptance step completed before or during transition, not the expected outcome of a post-review session.
- C. The benefits register was already presented and accepted by the governance board, so updating it is not the focus of the session.
Question 78
You are the program manager for the GHT Program for your company. This program has a budget at completion of $789,000 and is currently 40 percent complete, though it was scheduled to be 50 percent at this time. Your program has spent $325,000 of the budget to date. Based on this information, how many pennies is your program losing per dollar spent on the work?
Show answer and explanation
Correct answer: C. 3
Cents lost per dollar spent comes from the cost performance index. Earned value is EV = BAC x percent complete = $789,000 x 0.40 = $315,600, and actual cost is AC = $325,000. CPI = EV / AC = $315,600 / $325,000 = 0.97. The program therefore earns about 97 cents of value for every dollar spent, so it is losing about 3 cents per dollar (1 minus 0.97). Planned value, $789,000 x 0.50 = $394,500, matters for schedule performance but not for this cost question.
Why the other options are wrong
- A. Eleven cents does not follow from CPI = EV / AC = 0.97, which gives a loss of only about 3 cents per dollar.
- B. Twenty cents corresponds to the schedule ratio of 40 percent complete against 50 percent planned (SPI = 0.80), not to cost efficiency.
- D. One cent understates the loss, because CPI = 0.97 means about 3 cents of every dollar spent produces no earned value.
Question 79
A company is building a global monitoring network in 40 countries. The program completes the planning phase and a review is conducted of the program components' strategic alignment with the intended program and company goals. The review identifies issues that should be resolved to improve program progress. One of the issues identified is the lack of incorporation of both software and configuration management tools.
Which of the following must be addressed?
Show answer and explanation
Correct answer: B. Program management information system (PMIS)
The program management information system (PMIS) is the set of tools, systems, and repositories used to collect, store, and distribute program information. Software tools and configuration management tools belong to that infrastructure, so their absence is a gap in the PMIS. For a network spanning 40 countries, the PMIS must include configuration management to control versions of deliverables and software tools to support coordination and reporting, which is why the review finding must be addressed there.
Why the other options are wrong
- A. Performance monitoring and controlling relies on the PMIS tools rather than being the place where those tools are provided.
- C. Delivery management concerns authorizing and overseeing components, not the information tools that support them.
- D. The roadmap shows the program's direction and major milestones and does not supply software or configuration management tools.
Question 80
The program manager compiles a program performance report for review by the program governance board. The performance report indicates that the scope, quality, and schedule objectives have been met, but costs and resource utilization are higher than expected. The program can no longer deliver the planned return-on-investment within an acceptable level and the intended benefits have not yet been realized.
After further analysis of the performance indicators, the program manager should do which of the following?
Show answer and explanation
Correct answer: C. Recommend cancellation of the program based on performance metrics.
When analysis shows that a program can no longer deliver an acceptable return on investment and its intended benefits have not been realized, the business justification for continuing has failed. The program manager's responsibility is to present the performance evidence to the program governance board and recommend cancellation, since governance holds the authority to terminate. Stopping the program early releases resources for initiatives that can deliver value to the organization.
Why the other options are wrong
- A. Extending the schedule usually adds cost and resource consumption, so it cannot restore the expected return.
- B. Expanding scope adds more cost to a program that already cannot meet its return-on-investment objectives.
- D. Transitioning results to operations assumes benefits are ready to be sustained, but they have not been realized and the program's future is undecided.
Question 81
Robert's program is slipping on its schedule and management has asked that Robert find a method to compress the duration of the program.
What approach could Robert take that would not dramatically add risks to program if he added labor to the effort-driven activities within the program?
Show answer and explanation
Correct answer: B. Crashing
Crashing shortens the schedule by adding resources, such as additional labor, to activities on the critical path. It works best on effort-driven activities, where more workers reduce duration, and the main trade-off is higher cost rather than a large increase in risk. Fast tracking, by contrast, performs activities in parallel that were planned in sequence, which raises the risk of rework. Since Robert is adding labor to effort-driven work and wants to avoid dramatically increasing risk, crashing is the approach.
Why the other options are wrong
- A. Applying lead time lets a successor start before its predecessor finishes, which is how fast tracking overlaps work and adds risk, and it does not involve adding labor.
- C. Lag time inserts a waiting period between activities, which delays successors rather than compressing the schedule.
- D. Fast tracking overlaps sequential activities and noticeably increases the risk of rework, and it does not rely on adding labor.
Question 82
A program manager is concerned that a program will be unable to achieve its intended benefits.
How should the program manager handle this concern?
Show answer and explanation
Correct answer: A. Meet with the program management office (PMO) to review critical program success factors.
A concern that benefits may not be achieved is a program-level issue, so it calls for a program-level review before any corrective action. Meeting with the program management office to review the critical success factors lets the program manager examine the conditions that must hold for benefits to be realized, using the metrics, standards, and performance data the PMO maintains. The review pinpoints which factors are at risk and informs a targeted response.
Why the other options are wrong
- B. Reallocating resources is a corrective action taken before the reason for the benefits shortfall has been established.
- C. Asking stakeholders to accept reduced scope jumps to a remedy and may sacrifice benefits before the problem is understood.
- D. Risk analysis with component project managers focuses on component-level uncertainty rather than the program-wide conditions that drive benefit realization.
Question 83
Hans is the program manager for his organization. His current program has seven constituent projects that each will create deliverables for the organization.
Who is responsible for the project deliverables in this scenario?
Show answer and explanation
Correct answer: A. Project managers
Each project manager is responsible for the deliverables of his or her own project. The program manager, Hans, coordinates the seven projects, manages interdependencies, resolves cross-project issues and focuses on delivering the program's benefits, but he does not personally own the outputs of each component. The project managers plan, execute and control the work that creates their project deliverables and report progress to the program manager, which is the standard division of responsibility between program and project levels.
Why the other options are wrong
- B. Hans is accountable for program-level coordination and benefits, not for producing each project's individual deliverables.
- C. Program director is not a role defined in this scenario, and no such role owns the project deliverables.
- D. Shared ownership blurs accountability, because the project deliverables belong to the project managers while Hans owns the program-level outcomes.
Question 84
A key stakeholder's requirement contradicts the organization's strategic objectives. The program manager meets with the stakeholder, but is unable to reach a compromise on the requirement.
What should the program manager do first?
Show answer and explanation
Correct answer: C. Meet with the program sponsor to address the issue
A requirement that conflicts with organizational strategy, and that the program manager cannot resolve directly with the stakeholder, exceeds the program manager's authority. The program sponsor is accountable for the program's alignment with strategy and is the first escalation point. Meeting with the sponsor lets the program manager present the conflict, the attempts to resolve it, and the implications, so the sponsor can use their authority and influence to resolve it or carry it further through governance if needed.
Why the other options are wrong
- A. Updating the benefits management plan with the PMO presumes a decision that has not been made and gives the PMO authority it does not hold.
- B. Going directly to the strategic planning committee skips the sponsor, who is the program's first escalation point.
- D. The requirement's conflict with strategy is an internal alignment issue, and the customer cannot settle it.
Question 85
External resources are required for a program. The program manager receives bids from multiple vendors and presents the top vendor to the program governance board. One program governance board member asks the program manager to select a vendor that was dismissed early in the selection process because they were not on the approved vendor list. The program manager learns that this program governance board member has a personal connection to this vendor.
What should the program manager do?
Show answer and explanation
Correct answer: B. Report an ethics violation
A governance board member is pressing to select a vendor that was screened out for not being on the approved vendor list, and the member has a personal connection to that vendor. This is a conflict of interest that would compromise a fair procurement process. PMI's Code of Ethics and Professional Conduct requires practitioners to act fairly, avoid conflicts of interest and report unethical conduct through the appropriate channels. The program manager should therefore report the situation as an ethics violation instead of complying with the request.
Why the other options are wrong
- A. Adding the vendor to the approved list bypasses the qualification process to serve a member's personal interest.
- C. Engaging the vendor because of the member's influence makes the program manager complicit in the conflict of interest.
- D. Restarting the bid process wastes effort on a valid selection and leaves the conflict of interest unaddressed.
Question 86
You are the program manager for your organization and you're dealing with several issues about the materials used in the program. Right now, the issues have been assigned to issue owners for resolution in ten days. In the interim, what should you do with the issues?
Show answer and explanation
Correct answer: B. Record the issues in the issue register.
Assigning issue owners does not end the program manager's responsibility for the issues. Each issue should be recorded in the issue register (issue log), which captures the description, owner, target resolution date, status and impact. The register gives the program manager a single place to monitor progress during the ten-day window, spot issues that are slipping, and escalate through governance if an issue threatens program benefits or exceeds the owner's authority. Recording the issues is the step that makes tracking, reporting and accountability possible.
Why the other options are wrong
- A. Doing nothing abandons the program manager's duty to track and control issues until they are resolved.
- C. Status reporting to the sponsor relies on the issues first being recorded and tracked, so it is not the interim action required.
- D. The risk register holds uncertain future events, while these are current problems that belong in the issue register.
Question 87
Program management has several themes that the program manager must be aware of.
Which one of the following is not a program management theme?
Show answer and explanation
Correct answer: D. Organizational planning
The Standard for Program Management identifies three themes that run through every program: benefits management, stakeholder management and program governance. Together they describe why the program exists (benefits), who it serves and must engage (stakeholders) and how it is overseen and controlled (governance), and later editions carry these ideas forward as performance domains. Organizational planning is not one of these themes; it concerns how the wider organization plans its work rather than a theme of program management.
Why the other options are wrong
- A. Benefit management, more commonly called benefits management, is one of the program management themes, so it cannot be the exception.
- B. Stakeholder management is one of the program management themes, so it cannot be the exception.
- C. Program governance is one of the program management themes, so it cannot be the exception.
Question 88
A municipal agency manages a city's water and wastewater infrastructure. Its six-year capital improvement program (CIP) is approximately US$4 billion, and is used for such things as improving aging infrastructure, addressing regulatory requirements, and upgrading facilities. The mayor and key stakeholders are concerned because of yearly rate increases for residents. After receiving proposals from program managers for this key program, which is half of the current CIP, a program management team is hired and receives an approved business case.
What should the program manager do next?
Show answer and explanation
Correct answer: D. Develop a program charter.
The proposals have been evaluated, a program management team has been hired and the business case is approved. In PMI's program life cycle, the approved business case is the basis for the program charter, which formally authorizes the program and sets out its vision, scope, expected benefits and high-level constraints. Developing the charter is therefore the next step; once it is approved, the team moves into planning and builds the program management plan. For a key US$2 billion program under public scrutiny over rate increases, formal authorization also gives stakeholders a clear statement of what the program is meant to achieve.
Why the other options are wrong
- A. Discussing the program change and its challenges is unfocused and neither authorizes the program nor plans its delivery.
- B. The program management plan is developed after the charter has authorized the program, so creating it now skips that step.
- C. Performance analysis requires delivery data, and no component work has been performed yet.
Question 89
Kelly's program is slipping on its schedule. Management is worried that the program will be late and this will cost the organization several thousand dollars in fines and penalties. They've asked Kelly to use a schedule duration compression technique that will help the program finish on time. The technique that Kelly can use, however, should not add costs to the program.
What duration compression technique should Kelly use in this instance?
Show answer and explanation
Correct answer: D. Fast track the program
Fast tracking compresses the schedule by performing activities or phases in parallel that were originally planned in sequence. It does not require adding resources, so it shortens the duration without the added resource costs of crashing, which meets management's condition. Its trade-off is greater risk and possible rework, because work starts before predecessor work is fully complete. Since Kelly must avoid adding costs, fast tracking is the appropriate duration compression technique.
Why the other options are wrong
- A. Crashing shortens duration by adding resources, which adds cost and violates management's constraint.
- B. Adding lead time is a dependency adjustment for individual activities, not the named duration compression technique for the program.
- C. Trimming scope reduces what the program delivers and is a scope change, not a duration compression technique.
Question 90
You are the project manager for the JJY Project, which is similar to the HHG Project you managed last quarter. You would like to model the current project scope on the previous project to save time and effort. This is an example of what kind of scope definition?
Show answer and explanation
Correct answer: D. Template driven
Modeling the JJY Project's scope on the similar HHG Project means using the earlier project's scope definition as a template and adapting it to the new work. A template-driven approach saves time and effort because the structure, deliverables and boundaries from a proven past project are reused, then refined for differences in the current project. The question asks about how scope is defined, and reusing a prior project's scope as the model is a template-driven scope definition.
Why the other options are wrong
- A. Analogous estimating uses a similar past project to estimate duration or cost, not to define the scope itself.
- B. Organizational process assets are the stored templates and historical information, not a type of scope definition.
- C. Parametric scope definition is not a recognized approach; parametric methods use statistical relationships to estimate cost or duration.
Question 91
You are the program manager for your organization. As your program is being initiated there is some initial concern from the management about the utilization of resources in your program and the need for resources in their day-to-day roles in operations. Management has set a limit on your program that resources may only work 20 hours per week on the program.
What is this limit of resource hours in a time period known as?
Show answer and explanation
Correct answer: A. Resource leveling heuristic
A rule set by management that limits how many hours resources may work in a given period, such as no more than 20 hours per week on the program, is a resource leveling heuristic. Heuristics are rules of thumb applied to the schedule, and resource leveling heuristics constrain resource assignments so that people are not overallocated. Applying the rule forces the schedule to be adjusted so that no resource exceeds the limit, which protects their operational duties but usually lengthens the program schedule.
Why the other options are wrong
- B. Resource requirements describe the types and quantities of resources the work needs, not a cap on the hours they may work.
- C. The limit may create risk to the schedule, but the limit itself is a scheduling rule rather than a risk.
- D. Resource utilization measures how much of a resource's available time is actually used, not a rule that restricts hours per period.
Question 92
A program completes all component projects and all identified benefits are being delivered. However, the program sponsor is concerned that long-term benefits may not meet organizational performance parameters.
To ensure the realization of long-term benefits, what should the program manager use?
Show answer and explanation
Correct answer: B. Benefits sustainment plan
Delivered benefits must be maintained after components finish and after the program closes. A benefits sustainment plan defines the actions, processes, responsibilities, metrics, and resources the receiving organizations need to keep benefits performing over the long term, including monitoring against organizational performance parameters. Using it addresses the sponsor's concern directly by making sure long-term benefits continue to meet expectations after the program ends.
Why the other options are wrong
- A. The benefits register records and tracks benefits but does not define how they will be sustained over the long term.
- C. The benefits management plan guides identification and delivery of benefits during the program rather than long-term sustainment.
- D. A transition plan covers the handover of benefits to operations, not their ongoing performance afterward.
Question 93
A program manager at a pharmaceutical company plans a new drug development effort. The development is slated to yield three drug variants.
The program manager articulates the program scope boundaries.
Which of the following deliverables captures these items?
Show answer and explanation
Correct answer: C. Program scope statement
The program scope statement defines the program's boundaries: what is included and excluded, along with the major deliverables and objectives. For a drug development program expected to yield three variants, the scope statement captures those deliverables and makes clear where the program's work begins and ends. It is the reference for later decomposition and for judging whether proposed work belongs in the program, which makes it the deliverable that records the boundaries the program manager articulates.
Why the other options are wrong
- A. The scope management plan describes how scope will be defined, managed, and controlled, not the boundaries themselves.
- B. The governance plan sets decision rights, oversight, and review structures rather than scope boundaries.
- D. The program work breakdown structure decomposes the scope once it is defined and does not itself state the boundaries.
Question 94
Terri is the program manager for her organization and she's working with Alice, a project manager in her program. Alice calls Terri and insists that she add a change to program scope. Terri agrees that the change should be entertained.
What must Alice do to move forward with her change request?
Show answer and explanation
Correct answer: C. Document the change request in a change request form.
Every proposed change to program scope must enter formal change control, and the first step is to document it in a change request form. The documented request records what is proposed, why it is needed and its expected impacts, so it can be logged and then evaluated and approved or rejected by the appropriate authority. Terri's agreement that the change should be considered does not authorize it, so Alice must formally document the request.
Why the other options are wrong
- A. A project manager has no authority to change program scope unilaterally; scope changes require formal approval.
- B. No change is added to the scope before it has been documented, evaluated and approved through change control.
- D. A change request charter is not a recognized document; change requests are documented in a change request form.
Question 95
An R&D group director approves a major program's charter. Although the director has a high level of understanding of the program's scope, they are unsure of how the program manager can be successful in delivering the program's commitments.
What should the program manager do to align stakeholders with planning and monitoring the program's progress?
Show answer and explanation
Correct answer: A. Establish high-level program milestones
The director understands the scope but cannot see how the program will deliver its commitments over time. Establishing high-level program milestones translates the charter into a visible sequence of major achievements and decision points that stakeholders can agree to, plan around, and use to monitor progress. Milestones give the director a clear picture of when key outcomes will occur and create shared checkpoints for measuring whether the program is on track, which aligns stakeholders with both planning and progress monitoring.
Why the other options are wrong
- B. An accountability matrix clarifies who does the work, but it does not show stakeholders the path or timing for delivering commitments.
- C. A supplier management plan addresses external vendors and does not align the director and other stakeholders with program progress.
- D. Communications and reporting formats describe how progress will be reported, but without milestones there is no agreed plan to report against.
Question 96
You need to create a document that will define the costs, resources, and characteristics of each deliverable the program will create.
What document should you create?
Show answer and explanation
Correct answer: B. Program work breakdown structure dictionary
The program work breakdown structure dictionary is the companion document to the program WBS that gives detailed information about each element. For every deliverable or component it can describe the scope of work, characteristics, responsible organization, resources, cost estimates, milestones and acceptance criteria. Because the question asks for a document that defines the costs, resources and characteristics of each deliverable, the dictionary is the right choice, while the WBS itself only shows the hierarchical decomposition of the work.
Why the other options are wrong
- A. The program work breakdown structure shows the hierarchical decomposition of deliverables but does not hold the detailed cost, resource and characteristic data.
- C. The program charter authorizes the program and states high-level objectives, not detailed data for each deliverable.
- D. The program scope statement defines program scope and boundaries at a high level, not costs and resources per deliverable.
Question 97
Which of the following tools/techniques keep program managers and executives informed of the program's progress?
Show answer and explanation
Correct answer: C. Review meetings
Review meetings bring the program manager, component managers, sponsors and executives together to examine status, performance against the plan, risks, issues and progress toward benefits. They are the tool PMI associates with keeping program managers and executives informed of program progress, because they provide a regular, structured forum where performance information is presented, questions are answered and decisions or escalations can be made. Status and progress reports usually feed these meetings, which then serve as the point of shared understanding.
Why the other options are wrong
- A. Component analysis examines the components and their contribution to the program and is not a mechanism for reporting progress to executives.
- B. Expert judgment supports estimating and decision making, but it does not by itself keep executives informed of progress.
- D. Capacity planning assesses whether resources are sufficient for planned work and does not communicate program progress.
Question 98
What would prevent a program manager from completing program closure once a program has been completed?
Show answer and explanation
Correct answer: B. Failure to update the benefits register
Before a program can be formally closed, the status of its benefits must be accurately recorded. The benefits register is the record of planned and realized benefits, and at closure it is updated to show what has been delivered, what remains to be sustained, and who owns ongoing realization. Governance relies on this updated register to confirm that the program has met its objectives and to hand responsibility for sustaining benefits to operations. Without that update the confirmation cannot be made, so closure cannot be completed.
Why the other options are wrong
- A. Updating the financial management plan is an administrative task that does not determine whether the program has met its objectives.
- C. Many benefits are realized and sustained by operations after the program ends, so incomplete realization does not prevent closure.
- D. Steering committee approval is the governance decision that follows a complete closure record, so the underlying obstacle in a completed program is the missing benefits register update on which that approval depends.
Question 99
Your program is to construct a new condo building in Chicago. You and the project managers are working together to define the project assumptions about the program.
Which one of the following is an example of an assumption for this program?
Show answer and explanation
Correct answer: D. Weather
An assumption is a factor considered true for planning purposes without proof or certainty. Weather in Chicago cannot be known in advance, so the team plans on an expected pattern, such as a set number of weather delay days in winter, and records that belief as an assumption. Because it may prove false, the assumption is documented, monitored and analyzed for risk, so the program can respond if conditions turn out worse than planned.
Why the other options are wrong
- A. Milestone deadlines are imposed dates that limit the schedule, which makes them constraints rather than assumptions.
- B. Building codes are known regulatory requirements the work must meet, which makes them constraints.
- C. A predetermined budget is a fixed limit on spending, which makes it a constraint rather than an assumption.
Question 100
Molly is the program manager for her organization and she is creating a program plan that defines the benefits of the program and how her program and team will create the benefits for the organization.
What plan is Molly creating in this scenario?
Show answer and explanation
Correct answer: D. Benefits management plan
The benefits management plan defines the benefits the program is expected to deliver and explains how the program and its components will create, measure and sustain them. It describes the benefits, sets out when and how each will be realized, assigns ownership, links benefits to program outcomes and components, and defines measures and the transition of benefits to operations. Because Molly's plan focuses on defining the benefits and how her program will produce them, she is creating the benefits management plan.
Why the other options are wrong
- A. The quality management plan defines quality standards and how quality will be managed, not program benefits.
- B. The business case justifies investing in the program; it is not the plan for how the program will create its benefits.
- C. The program management plan integrates all subsidiary plans; the plan dedicated to defining and realizing benefits is the benefits management plan.
Question 101
A team member has made a mistake during the installation of a fixture in your program. You have requested that the team member should correct the problem so that the fixture is installed properly. Once the team member has corrected the problem what action should be taken next?
Show answer and explanation
Correct answer: A. Defect repair validation
When a defect has been repaired, the next step is to validate the repair: inspect the corrected work to confirm that the fixture is now installed properly and meets its requirements. Defect repair validation closes the loop on the repair request, because a fix that has not been checked may still be nonconforming. Only after the repair is confirmed can the work be accepted and the defect closed, and any wider lessons from the mistake can then be captured.
Why the other options are wrong
- B. Recording lessons learned may follow, but the immediate next step after a repair is to confirm that the repair actually corrected the defect.
- C. Having the team member fix the installation was already the corrective response; the action that follows it is checking the result.
- D. Preventive actions reduce the chance of future defects, but the current repair must first be confirmed as correct.
Question 102
You are the program manager of the HNG Program. This program has a budget at completion of $2,345,900 and is expected to last two years. The program is currently 30 percent complete and you have spent $789,000. The program is supposed to be 35 percent complete but due to some delays you're slightly behind schedule. Based on this information, how many pennies is the program losing per dollar invested in the program work?
Show answer and explanation
Correct answer: B. 11
Pennies lost per dollar comes from the cost performance index, which shows the value earned for each dollar spent. Earned value is 30 percent of $2,345,900, or $703,770, and actual cost is $789,000. CPI = EV / AC = $703,770 / $789,000 = 0.892, so each dollar spent earns about 89 cents of value. The loss per dollar is 1 - 0.892 = 0.108, about 11 cents. The planned 35 percent completion affects schedule measures only.
Why the other options are wrong
- A. 17 cents does not follow from 1 - CPI, which gives a loss of about 11 cents per dollar.
- C. 15 cents does not follow from 1 - CPI, which gives a loss of about 11 cents per dollar.
- D. 14 cents comes from 1 - SPI (0.857), a measure of schedule efficiency rather than of money lost per dollar spent.
Question 103
You are the program manager for your organization and you need to define all of the program resources you'll need for your program. All of the following can be considered a program resource except for which one?
Show answer and explanation
Correct answer: C. A positive risk response
Program resources are the people, equipment, materials, facilities and funds used to perform the program work. A forklift is equipment, installation materials are physical resources and Gary is a human resource. A positive risk response, such as exploiting or sharing an opportunity, is a planned strategy recorded in the risk register; it may consume resources when carried out, but the response itself is not a resource.
Why the other options are wrong
- A. A forklift is equipment, which is a physical program resource.
- B. Installation materials are physical resources consumed by the program work.
- D. Gary is a human resource who performs program work.
Question 104
There are 1,500 doors to be installed in Tom's program. Each of the 1,500 doors is required by the building code to swing into the room rather than swing out into the hallways. It has come to Tom's attention that part of the team installing the doors has installed nearly 200 doors to swing into the hallway rather than into the rooms. Tom instructs the team to fix the problem.
What type of action has Tom taken in this instance?
Show answer and explanation
Correct answer: D. Defect repair
A defect is a component or deliverable that does not meet its requirements or specifications. The nearly 200 doors swinging into the hallway violate the building code requirement, so they are defects. Instructing the team to rehang the doors correctly is defect repair, an intentional activity to modify a nonconforming product. After the repair is complete, the corrected doors would be inspected to confirm they now comply, but the action Tom has taken is the repair itself.
Why the other options are wrong
- A. Scope control manages changes to the scope baseline, and correcting nonconforming work against an unchanged requirement is not a scope change.
- B. Defect repair validation is the later inspection confirming the repair worked, not the instruction to fix the doors.
- C. Team development improves team competencies and interaction and is not the act of correcting a defective deliverable.
Question 105
You are the program manager for your organization. You have created a statement of work, request for proposal, and an invitation to a bidder's conference for 17 possible vendors. During the conference there were questions about your request for proposal and statement of work that led to clarifications. After the vendor conference you should update what information to send back to the vendors?
Show answer and explanation
Correct answer: C. Statement of work
A bidder conference gives all prospective sellers the same understanding of the procurement. When questions reveal ambiguities and lead to clarifications, the buyer updates the statement of work so that it reflects the clarified requirements, then issues the revision to every invited vendor. Sending the same updated statement of work to all 17 vendors keeps the competition fair and ensures that every proposal responds to the same requirements.
Why the other options are wrong
- A. A request for bid is a different solicitation type used for price-based purchases and was never issued in this procurement.
- B. Proposals are prepared by the vendors in response to the solicitation, not updated and sent to them by the buyer.
- D. The program management plan is an internal planning document and is not sent to prospective vendors.
Question 106
An IT program manager is concerned that a program is not achieving its defined incremental benefits due to a lack of delivery by the business team. The IT team has several dependencies on the business team throughout the program. However, the business team does not report to the IT program manager, and only two business team resources with the appropriate skills are available to complete the required program tasks.
To address this issue, what should the IT program manager do next?
Show answer and explanation
Correct answer: C. Review and clarify the business team's program roles and responsibilities; determine the schedule impact on benefits delivery; direct the IT project manager to meet with the business team to ensure dependencies are understood and that the appropriate resources can be made available.
The business team does not report to the IT program manager, so progress depends on influence and clarity rather than authority. Reviewing and clarifying the business team's program roles and responsibilities, determining the schedule impact on benefits delivery, and having the IT project manager meet the business team to confirm the dependencies and secure the right resources addresses the root cause collaboratively. This also produces the facts needed should escalation later become necessary, which follows PMI's pattern of analyzing and engaging before escalating.
Why the other options are wrong
- A. Asking to transfer the only two skilled business resources is unrealistic and does not clarify the commitments or dependencies.
- B. Escalating and hiring before clarifying roles and impact is premature and adds cost without resolving the dependency problem.
- D. Adding contingency to milestones accepts the slippage without addressing why the business team is not delivering.
Question 107
What does RACI stand for?
Show answer and explanation
Correct answer: B. Responsible, Accountable, Consult, Inform
RACI stands for Responsible, Accountable, Consult, and Inform. A RACI chart is a type of responsibility assignment matrix that maps work packages or activities to people. Responsible identifies who performs the work, Accountable identifies the single person who owns the outcome and approves it, Consult identifies those whose input is sought before decisions, and Inform identifies those kept up to date on progress. Having only one accountable person per activity avoids confusion over ownership.
Why the other options are wrong
- A. Account and Confirm are not RACI roles; the second letter means Accountable and the third means Consult.
- C. The R stands for Responsible rather than Roles, and the C stands for Consult rather than Confirm.
- D. The R stands for Responsible and the A stands for Accountable; Roles and Action are not part of the acronym.
Question 108
The program manager defines the program objectives, requirements, and develops a high-level road map.
To ensure program alignment with the enterprise strategic plan, the program manager should work with which of the following?
Show answer and explanation
Correct answer: A. Program governance board
The program governance board, or steering committee, is the body responsible for ensuring that the program's goals, objectives, and roadmap remain aligned with the organization's strategic plan. It reviews and approves the program's direction, makes decisions at key points, and links the program to portfolio and executive priorities. After defining objectives, requirements, and a high-level roadmap, the program manager works with the governance board to validate that this direction supports the enterprise strategy before detailed planning proceeds.
Why the other options are wrong
- B. The program management office provides administrative support, standards, and reporting, but it does not decide strategic alignment.
- C. A change control board evaluates proposed changes to approved baselines rather than validating alignment with enterprise strategy.
- D. Project managers focus on delivering their components and do not hold responsibility for aligning the program with enterprise strategy.
Question 109
Tom is program manager for his organization. His program is scheduled to last ten months and has a cost estimate for the program of $550,000.
It is now month nine and Tom reports that he actually has a cost variance of a positive $56,000. While Tom is pleased, the new management is not.
Why is a positive cost variance not necessarily good news?
Show answer and explanation
Correct answer: C. A poor cost estimate could affect the organization's decisions to invest the funds elsewhere.
A positive cost variance of $56,000 late in a $550,000 program means the work cost substantially less than estimated. That suggests the original cost estimate was poor. Funds reserved for this program could have been invested in other projects or initiatives that the organization may have deferred or declined because the money was committed here. Accurate estimates matter because portfolio and investment decisions depend on them, so a large favorable variance can signal lost opportunity rather than good performance.
Why the other options are wrong
- A. Program scope is set by business needs and change control, not by the size of a cost estimate, so this is not why the variance concerns management.
- B. This only restates the variance and does not explain the consequence that makes it unwelcome news for the organization.
- D. Nothing indicates missing deliverables, and earned value already measures cost against the work actually performed.
Question 110
Identify the term described in the statement given below? "The use of it should be reviewed along with an assessment of their effectiveness. This will aid the program management in determining if risks to the program are being effectively managed. It also provides feedback to the program management on any projects that need to be recovered or terminated."
Show answer and explanation
Correct answer: C. Contingency Reserve
The statement describes the contingency reserve. Contingency reserves are funds or time set aside to address identified risks, so reviewing how much has been used and how effectively shows whether program risks are being managed well. Heavy or rapid drawdown on a component signals that risks are materializing faster than planned, which gives program management early feedback on components that may need recovery actions or should be considered for termination through governance.
Why the other options are wrong
- A. The budget is the total authorized funding, and its use is not reviewed specifically to judge whether risks are being managed.
- B. Planned value is the authorized budget for scheduled work and measures what should have been done, not how risk funds have been used.
- D. Earned value measures work accomplished against plan, and it is not a reserve whose use is reviewed to judge risk management.
Question 111
A company wants to perform a preliminary stakeholder analysis to assess a new program's support.
What should the program manager develop?
Show answer and explanation
Correct answer: D. Stakeholder engagement plan, stakeholder register, and stakeholder map
Assessing support for a new program starts with identifying and analyzing stakeholders. The stakeholder register records who the stakeholders are along with their interests, influence, and attitudes toward the program. A stakeholder map shows their relative influence and support visually, highlighting supporters and potential resistance. The stakeholder engagement plan then sets out how each group will be engaged to build and maintain support, so these three items together give the program manager a clear picture of stakeholder support.
Why the other options are wrong
- A. A communications plan addresses information distribution, and a stakeholder charter is not a recognized artifact for analyzing support.
- B. A RACI matrix and escalation process define roles and issue handling rather than assessing stakeholders' attitudes and support.
- C. SWOT analysis evaluates strategic strengths, weaknesses, opportunities, and threats and does not analyze individual stakeholders' support.
Question 112
You are the program manager for your company and management wants you to identify how you'll make decisions in the program planning processes.
What program management document should serve as the baseline for all future program decisions?
Show answer and explanation
Correct answer: C. Program scope statement
Program management guidance has traditionally described the program scope statement as the basis for future program decisions. It articulates the program's objectives, deliverables and scope boundaries, stating what is and is not included in the program. Because every later decision, including which components to authorize and whether a proposed change falls within the program, is judged against these boundaries, the scope statement serves as the baseline for future decisions made during planning and beyond.
Why the other options are wrong
- A. The program budget sets financial limits and is built from the defined scope, so it is not the basis for all program decisions.
- B. The program management plan describes how the program will be managed and is developed from the defined scope rather than being the decision basis named for scope boundaries.
- D. Program requirements feed into scope definition but do not by themselves set the boundaries that later decisions are measured against.
Question 113
A program is near completion and the benefits will be delivered shortly. The program manager prepares to initiate program closeout activities to release the program resources.
Before initiating closeout and releasing the resources, what should the program manager do?
Show answer and explanation
Correct answer: B. Obtain approval from the sponsor to close the program
Program closure is a governance decision. Before initiating closeout and releasing resources, the program manager obtains approval from the program sponsor, acting with the governance board, confirming that the program has met its objectives or that closure is otherwise justified and that benefits transition arrangements are in place. Releasing resources without this authorization could leave remaining work, transition, or sustainment activities unsupported, so formal approval is the prerequisite that allows closeout activities to begin.
Why the other options are wrong
- A. Reviewing the benefits management plan does not authorize closure, which requires a formal sponsor decision.
- C. Performance evaluations for program personnel are completed during closeout, after closure has been authorized.
- D. Project personnel evaluations are handled within component closure and do not authorize closing the program.
Question 114
A program manager is appointed to manage a new program. The organization's leadership has specified a list of benefits that the program should deliver and has requested that the program manager determine when incremental benefits can be realized.
What should the program manager do first?
Show answer and explanation
Correct answer: C. Develop the program roadmap.
Leadership wants to know when incremental benefits can be realized. The program roadmap is the chronological, high-level view of the program's major stages, milestones, key components and the points at which benefits are expected to be delivered, linking program activities to the intended benefits. Developing the roadmap first gives leadership the timing view requested and provides the framework from which the program management plan and component schedules are later developed.
Why the other options are wrong
- A. The benefits sustainment plan addresses maintaining benefits after transition to operations, which comes much later and does not set incremental timing.
- B. The program management plan is developed after and draws on the roadmap, so it is not the first step for showing benefit timing.
- D. Component project schedules are detailed plans that depend on the roadmap and program planning and come later.
Question 115
An ice cream company wants to introduce a new flavor to a new market. The executive sponsor requests a sampling for the test market and the sample group provides negative feedback. As this type of program had previously been conducted by the company, the program manager questions whether similar results were experienced during testing.
What should the program manager do next?
Show answer and explanation
Correct answer: D. Review the program management information system (PMIS) for lessons learned.
The program manager's question is whether earlier programs of this type saw similar negative test results, which is a question about organizational history. Lessons learned from past programs are captured and stored in the program management information system (PMIS) and related knowledge repositories, so reviewing them is the direct way to find out what happened before, what caused it, and how it was handled. That evidence then informs whether to adjust the product, the market approach, or the testing method before further action.
Why the other options are wrong
- A. Documenting the results for the governance board does not answer whether past programs experienced similar outcomes.
- B. Running another sampling repeats the test without using the knowledge the organization already holds from previous programs.
- C. R&D product testing data covers the product itself, not the market test experience and lessons of previous programs.
Question 116
You are the program manager for your organization and are working with Tracy, one of the project managers in your program. Tracy is having some trouble understanding the concept of the critical path in her project's network diagram.
Which one of the following is the best definition of the critical path?
Show answer and explanation
Correct answer: B. It is the path that reveals the earliest date the project can finish.
The critical path is the longest sequence of dependent activities through the network diagram, and its total duration sets the earliest date the project can finish. Activities on the critical path normally have zero total float, so any delay to one of them delays project completion unless the schedule is recovered. Tracy should focus schedule control on these activities and know that shortening the project requires compressing work on the critical path.
Why the other options are wrong
- A. The critical path is determined by durations and dependencies, not by which path carries the most risk of failure.
- C. Criticality in scheduling refers to lack of float, not to how important the activities are to the business.
- D. Summing labor across all activities measures total effort, not the duration of the longest path through the network.
Question 117
You are the program manager for your organization and you are trying to determine the possible outcomes of a risk event. You're analyzing the risk event's worst case scenario, most likely scenario, and optimistic scenario to simulate the possible effects of the risk on the program's cost, time, and scope ramifications.
What simulation technique are you using in this situation?
Show answer and explanation
Correct answer: A. Monte Carlo simulation
Taking optimistic, most likely and worst case values and using them to simulate the range of possible effects on cost, time and scope is Monte Carlo simulation. The three-point estimates define a probability distribution for each uncertain variable, and the model is run through many iterations, each drawing random values from those distributions. The result is a distribution of possible program outcomes, showing the probability of meeting a given cost or completion date and how the risk event could affect the program.
Why the other options are wrong
- B. Sensitivity analysis varies one input at a time to see which uncertainty has the greatest effect, rather than simulating combined outcomes from three-point ranges.
- C. Force field analysis weighs the forces driving and resisting a change, and it is not a risk simulation technique.
- D. Decision tree analysis computes the expected monetary value of alternative decision paths, not a simulation of outcome distributions.
Question 118
A company initiates a program to reorganize its sales and production departments. Three production departments are located at the three production plants next to the company's headquarters. Five regional sales departments are located at different locations around the world.
At this stage of the program, what is the first step?
Show answer and explanation
Correct answer: B. Identify and quantify business benefits of the program
The program has just been initiated, so its first task is to establish why it exists and what value it will deliver. Identifying and quantifying the business benefits of reorganizing the sales and production departments provides the justification for the program and the measures of its success. Those benefits then drive the business case, the choice and prioritization of components, the program structure, and the organization needed to deliver them across the plants and regional offices.
Why the other options are wrong
- A. A program work breakdown structure is created during planning, after benefits and components are defined.
- C. Components are selected and prioritized according to the benefits they deliver, so they follow benefit identification.
- D. An organization chart for the program is developed once the benefits and component structure are understood.
Question 119
What does a CPI value less than 1.0 indicate?
Show answer and explanation
Correct answer: A. Cost overrun for work completed
The cost performance index is calculated as CPI = EV / AC, earned value divided by actual cost. It shows how much value is earned for each unit of money spent. When CPI is below 1.0, actual cost is higher than the budgeted value of the work performed, so the work completed so far has cost more than planned, which is a cost overrun. A CPI of 1.0 means on budget, and a CPI above 1.0 means under budget.
Why the other options are wrong
- B. CPI measures cost efficiency only; schedule performance is measured by SPI, which is EV divided by PV.
- C. A cost underrun corresponds to a CPI greater than 1.0, the opposite of the condition described.
- D. Completed work costing exactly as estimated corresponds to a CPI of 1.0, not a value below it.
Question 120
Component project managers create project management plans for all component projects in a program. The program manager notices that some project managers prefer one status report template, while others prefer another.
How should the program manager decide which template is appropriate?
Show answer and explanation
Correct answer: A. Review the issue with the program management office (PMO) to determine which template to use.
The program management office supports the program by defining and maintaining standard processes, procedures and templates, including reporting formats. Consistent status reports across components let the program manager aggregate and compare performance information reliably. Reviewing the issue with the PMO ensures the chosen template aligns with established governance and reporting standards rather than personal preference, and the PMO can then communicate and enforce that standard across all component projects.
Why the other options are wrong
- B. Reaching agreement among project managers on preference alone may conflict with the program's defined reporting standards.
- C. Choosing a report template is an administrative matter well below the level of the program governance board.
- D. Letting each project use its own template produces inconsistent reporting that is hard to consolidate at the program level.
Question 121
You are the program manager for your organization. One of the projects within your program is to install 15,000 light fixtures throughout your organization's corporate campus. The new fixtures will save on electrical costs.
Which one of the following choices is an ideal approach to quality assurance and the installation of the light fixtures for this project team?
Show answer and explanation
Correct answer: D. Use a checklist for the installation because it is repeatable work.
Installing 15,000 light fixtures is highly repetitive work, and repetitive work is exactly where a checklist delivers the most value. A checklist captures the agreed installation steps and inspection points once, then applies them consistently to every fixture, so each installer follows the same proven method and each installation can be verified the same way. This prevents defects rather than finding them later, supports auditing of the process, and keeps quality uniform across thousands of identical units, which is the aim of quality assurance on the project.
Why the other options are wrong
- A. A learning curve describes falling cost and time per unit, which is an efficiency effect rather than a quality assurance approach.
- B. Understanding how a fixture is installed is basic preparation, and it does nothing on its own to standardize or verify the quality of every installation.
- C. Letting team members invent their own installation methods produces inconsistent work and makes quality harder to assure across thousands of units.
Question 122
A program is developing a next-generation product line, and one component has been delivered. However, due to a change request, expectations for another component are unmet.
What activity should the program manager perform next?
Show answer and explanation
Correct answer: C. Program performance monitoring and controlling
A change request has left expectations for one component unmet, which is a variance between planned and actual program outcomes. Program performance monitoring and controlling compares actual performance with the program management plan, assesses the impact of approved changes on components and benefits, and identifies corrective or preventive actions. Performing this activity next lets the program manager understand the gap, inform stakeholders, and bring the affected component back into line with program objectives.
Why the other options are wrong
- A. Program delivery management covers authorizing and overseeing component work and does not by itself analyze the performance gap.
- B. Resource interdependency management balances shared resources and does not address unmet expectations caused by a change.
- D. Benefits sustainment and program transition occur once benefits are delivered, not while a component is still failing expectations.
Question 123
Who makes Go/No-Go decisions during phase gate reviews?
Show answer and explanation
Correct answer: A. Program Governance board
Phase gate reviews are governance decision points. At each gate the program governance board (steering committee) reviews program performance, benefits delivery, risks and continued strategic alignment, then decides whether the program proceeds to the next phase, proceeds with conditions, is changed or is terminated. That go/no-go decision right belongs to the governance board under the program governance framework, while the program manager prepares the information and recommendations that the board uses to decide.
Why the other options are wrong
- B. The program manager prepares gate reviews and makes recommendations, but the go/no-go decision right sits with the program governance board.
- C. A group of project managers manages components and has no governance authority to approve or stop program progression at a gate.
- D. Stakeholders provide input and are kept informed, but they do not hold the formal decision right exercised at phase gates.
Question 124
A project manager in your program is using progressive elaboration as part of their planning approach. This approach is also known as what planning methodology?
Show answer and explanation
Correct answer: B. Rolling wave planning
Progressive elaboration means adding detail to plans as more information becomes available. Rolling wave planning is the planning technique that applies this idea: near-term work is planned in detail, while work further in the future is kept at a higher level and decomposed later as it approaches and knowledge improves. The project manager is therefore using rolling wave planning, which lets the team start work with sound near-term plans without pretending to know distant details that are still uncertain.
Why the other options are wrong
- A. Waterfall is a sequential life cycle approach that aims to plan the full scope up front, not a technique for elaborating plans in successive waves.
- C. Refining scope is an outcome of progressive elaboration, not the name of the planning technique that schedules detail in waves.
- D. Incremental planning describes delivering a product in increments, whereas the technique of detailing near-term work and deferring later detail is rolling wave planning.
Question 125
While setting up a program's infrastructure and plan, a program management team develops documents and processes that provide commonality and consistency throughout the program's components.
What should the team also prepare, if not already provided by the organization's assets?
Show answer and explanation
Correct answer: A. Breakdowns such as the program work breakdown structure (PWBS), component project milestones, and budgets that transform top-level planning into fragments relevant to the components
Commonality across components comes not only from shared processes but from breaking the program's top-level planning into pieces each component can work from. When the organization's assets do not already supply such a structure, the program management team prepares breakdowns such as the program work breakdown structure (PWBS), component project milestones and budgets. These translate the program management plan into component-level fragments, so every component plans against the same scope decomposition, schedule anchors and financial limits, which gives consistency and supports integrated control of the program.
Why the other options are wrong
- B. Industry standards are issued by external bodies and adopted by the program rather than prepared by the program management team.
- C. Aggregation and forecasting documents depend on the program breakdowns already existing and do not themselves carry top-level planning down to the components.
- D. Files, filing structures and repository templates support records management rather than translating the program plan into the scope, milestones and budgets each component works to.
Question 126
You are the program manager of the NHQ Program for your organization. Your program is nearing the completion of one of its major phases and there are several resources that should be released at this time.
What program management plan will guide you to release of the program resources and transfer the resources and benefits to operations within the organization?
Show answer and explanation
Correct answer: B. Transition plan
The transition plan guides how program outputs, capabilities and benefits are handed over to the operational organization and how program resources are released when components or phases close. It covers what must be transferred, the receiving operational owners, the readiness criteria, the knowledge and documentation to be handed over, and the orderly release of people and other resources. Because the NHQ Program is closing a major phase and must both release resources and transfer benefits to operations, the transition plan is the plan to follow.
Why the other options are wrong
- A. The resource management plan governs how resources are acquired, assigned and shared across components rather than the handover to operations.
- C. The communications management plan defines how program information is distributed and does not govern releasing resources or transferring benefits.
- D. The benefits management plan defines how benefits are identified, measured and tracked, while the handover of resources and benefits to operations is governed by the transition plan.
Question 127
A program manager evaluates conflicting stakeholder demands associated with cost, schedule, and intended benefits. The implementation team has a strong interest in cost and schedule, and a limited interest in the benefits being produced. The client is only focused on benefits.
Which of the following actions should the program manager take?
Show answer and explanation
Correct answer: B. Balance stakeholder needs through the use of trade-offs among the stakeholder groups.
Programs routinely face competing stakeholder demands, and the program manager is responsible for balancing them so the program still delivers its intended benefits. Here the implementation team cares about cost and schedule while the client cares about benefits. By analyzing the options and negotiating trade-offs among cost, schedule and benefits, the program manager can reach a solution that each group can accept and that remains aligned with the program's objectives. This reflects PMI's emphasis on managing expectations and resolving conflict through negotiation rather than favoring one group.
Why the other options are wrong
- A. Focusing only on internal cost and schedule concerns ignores the client's benefits, which are the reason the program exists.
- C. Focusing only on the client neglects the cost and schedule constraints the program must still respect.
- D. A meeting where everyone states priorities only restates the known conflict and does not resolve it.
Question 128
At the beginning of the second year of a five-year strategic cycle, the program management team attends a checkpoint session to review the state of the company's strategy. During the previous year, the company needed to comply with new government regulations that impacted this strategy.
Based on this information, what should the program manager do?
Show answer and explanation
Correct answer: D. Review resource capacity and capability, program priorities, and interdependencies, and create a change request to modify the program roadmap to ensure strategic alignment.
New regulations that affected the company's strategy mean the program must be realigned, but a PMI-trained program manager analyzes before acting and changes baselined program artifacts through formal change control. Reviewing resource capacity and capability, program priorities, and interdependencies shows how the strategic shift affects the program. Raising a change request to modify the program roadmap then lets governance evaluate and approve the realignment, keeping the program aligned with organizational strategy in a controlled, traceable way.
Why the other options are wrong
- A. Updating several plans and changing priorities directly skips the impact analysis and bypasses the change control that governance requires.
- B. Modifying the program roadmap after a stakeholder meeting changes a baselined artifact without analysis or a formal change request.
- C. Stopping or postponing programs is a portfolio and governance decision, and nothing indicates the program fails to comply.
Question 129
A program stakeholder is concerned about information they receive about a project.
Who is responsible for reviewing the communications management plan to assure adequate information is provided to the stakeholder?
Show answer and explanation
Correct answer: D. Program manager
The concerned party is a program stakeholder, and the program manager owns the program's communications management plan and is accountable for ensuring program stakeholders receive the information they need. The program manager therefore reviews the plan, determines whether the stakeholder's needs about the project are adequately covered, and adjusts the plan or the component's reporting so the right information reaches them. Component project managers carry out their communications within the framework the program sets.
Why the other options are wrong
- A. The sponsor champions and funds the program but does not own or maintain its communications management plan.
- B. A communications manager may support delivery of communications, but accountability for the plan rests with the program manager.
- C. The project manager manages project communications, but a program stakeholder's information needs fall under the program communications plan.
Question 130
You are the program manager for your company and evaluating the sellers to determine the seller to buy from. In your analysis you've created a histogram to display the pros and cons for each seller. You've created five categories of interest and assigned values to each category for each vendor. Your five categories are:
• Cost
• Schedule
• Experience
• Certification
• Warranty
Each category has a different point value and the vendor that receives the maximum points in total will win the contract.
What type of seller evaluation are you performing?
Show answer and explanation
Correct answer: C. Weighted scoring model
A weighted scoring model evaluates sellers against defined criteria, gives each criterion a weight that reflects its importance, scores each seller on every criterion and totals the results. Here the five criteria are cost, schedule, experience, certification and warranty, each carrying a different point value, and the seller with the highest total wins the contract. This converts a subjective choice into a structured, comparable and defensible source selection decision.
Why the other options are wrong
- A. Monte Carlo simulation runs many iterations using probability distributions to model schedule or cost risk, not to score sellers.
- B. Expert judgment applies specialized knowledge but does not by itself use weighted criteria and point totals.
- D. Benchmarking compares practices or performance against other organizations or projects, not sellers against weighted criteria.
Question 131
A program manager, who reports to a company's CIO, is responsible for managing a strategic initiative program. During a program review meeting, the CIO informs the program manager about potential budget cuts that would impact program resources, and urges the program manager to begin delivering benefits more quickly to continue the program.
What should the program manager do first?
Show answer and explanation
Correct answer: B. Document the impact on the program, then present the findings to the steering committee to determine next steps.
Potential budget cuts and a demand for faster benefits delivery affect the program's resources, schedule, risks and benefits all at once. The program manager's first step is to assess and document the overall impact of these changes on the program, then present the findings to the steering committee, which holds the authority to decide on funding, scope and priorities. This follows PMI's approach of analyzing before acting and escalating decisions that exceed the program manager's authority through governance.
Why the other options are wrong
- A. Updating the benefits management plan presumes a decision about acceleration that governance has not yet made.
- C. A risk assessment of acceleration addresses only one dimension and skips evaluating the full impact of the budget cuts.
- D. Revising the schedule commits to a response before the impact is understood and approved.
Question 132
Josh is the program manager for his organization and he's leading the analysis for a new program that may be initiated by his company. The analysis is a focus on the return on investment for new software that may be created if the program is initiated.
What type of a document is Josh likely creating for his company?
Show answer and explanation
Correct answer: A. Business case
A business case is the documented economic feasibility study used to decide whether a proposed program should be initiated. It analyzes expected benefits, costs, return on investment, risks and alignment with organizational strategy. Because Josh is analyzing the return on investment of new software before the program has been approved, he is building the business case that the sponsor and governance board will use to decide whether to authorize the program.
Why the other options are wrong
- B. The program charter formally authorizes the program after the investment decision, rather than analyzing return on investment beforehand.
- C. The program scope statement defines what the program will deliver once it is underway, not the investment justification.
- D. A statement of work describes work to be performed, often for a supplier, and does not analyze return on investment.
Question 133
You are the program manager of the NHQ Program. You will need to initiate six projects for your program.
When should project initiating happen within a program?
Show answer and explanation
Correct answer: A. Whenever the program needs to initiate projects, it may, as long as the program has not entered the closing processes of the program.
Component projects are not tied to a single program life cycle stage. Program definition identifies and sequences the components in the program roadmap, and during program delivery each component is authorized and initiated when the program needs it, based on the roadmap, resource availability and the timing of benefits. This continues throughout the program until it moves into closing, after which no new components are started. Projects can therefore be initiated whenever the program requires them, as long as the program has not entered its closing processes.
Why the other options are wrong
- B. Tying project initiation to one stage ignores that components are authorized at varying times, whenever the program needs them, right up to closing.
- C. Program initiation establishes the program itself, its business case and charter, not the individual component projects.
- D. Program planning identifies and sequences the components but does not fix a single point at which they are all initiated.
Question 134
Which project management meeting allows stakeholders to meet one another and to learn about the project?
Show answer and explanation
Correct answer: D. Project kick-off meeting
The kick-off meeting is held at the start of the work to bring stakeholders together, introduce them to one another and explain the project's objectives, scope, approach, roles and expectations. It builds a shared understanding and early commitment among the team and key stakeholders. Because its purpose is to let stakeholders meet and learn about the project, the kick-off meeting is the meeting described.
Why the other options are wrong
- A. A scope review examines and validates scope details rather than introducing stakeholders to each other and the project.
- B. A project authorization meeting decides whether the project is approved rather than familiarizing stakeholders with one another and the project.
- C. A status meeting reports progress and issues on work already under way rather than introducing stakeholders.
Question 135
Which of the following serves as a guiding principle for a program manager when preparing a program work breakdown structure?
Show answer and explanation
Correct answer: D. Decompose the program at a level sufficient to achieve control
The program work breakdown structure decomposes program work only to the level at which the program manager needs to exercise control. Detail below that point belongs to the component projects, whose managers decompose their own work further. Decomposing to a level sufficient for control lets the program manager manage scope, cost, schedule, and dependencies across components without duplicating project-level planning or burying the program in unnecessary detail.
Why the other options are wrong
- A. Resource availability constrains scheduling but is not the basis for decomposing program work.
- B. Work packages are generally defined within component projects, and the program WBS normally stops at the level needed for program control.
- C. An architecture baseline describes how components relate, and it is not a decomposition level for the program WBS.
Question 136
Which of the following risk identification techniques is described in the statement below?
"It is used to gather information where participants don't know each other nor do they have to be present at the same location."
Show answer and explanation
Correct answer: B. Delphi
The Delphi technique gathers expert input through questionnaires managed by a facilitator, so participants remain anonymous to one another and never need to meet. Experts can respond from different locations, and the facilitator consolidates and recirculates the responses until a consensus forms. This makes Delphi well suited to geographically dispersed panels and to situations where open discussion could be dominated by senior or vocal participants.
Why the other options are wrong
- A. Brainstorming relies on participants interacting openly in a shared session, whether in person or virtually, so they are not anonymous to one another.
- C. SWOT analysis is an analytical framework applied by a team that discusses its findings together, not an anonymous remote technique.
- D. Assumptions analysis examines the validity of the assumptions behind the plan rather than gathering input from anonymous dispersed participants.
Question 137
Which of the following increases when one fast tracks the project?
Show answer and explanation
Correct answer: B. Risk
Fast tracking compresses the schedule by performing activities or phases in parallel that would normally be done in sequence, at least for part of their duration. Because successor work starts before its predecessor is finished, it may proceed on incomplete or changing information, which raises the chance of rework and errors. For that reason, the characteristic consequence of fast tracking is increased risk. Crashing, by contrast, is the technique whose defining trade-off is added cost.
Why the other options are wrong
- A. Fast tracking reorders work into parallel paths without, by definition, adding resources; adding resources is the mechanism of crashing.
- C. Higher cost is the defining trade-off of crashing, while fast tracking adds cost only indirectly if rework occurs.
- D. Coordination needs may grow, but increased communication is not the recognized consequence of fast tracking.
Question 138
A program will generate revenue for several years after it ends. The program manager and the operations manager, who are accountable for managing the benefits after program closure, are in disagreement. The operations manager is concerned that information necessary for managing the processes and benefits after program closure will be unavailable. The program manager expresses that managing the benefits after program closure is not within the scope and must be managed through the scope management plan.
What should the program sponsor do?
Show answer and explanation
Correct answer: C. Direct the program manager to develop the necessary plans to ensure benefits can be transitioned and sustained after program closure.
Ensuring that benefits can be transitioned to and sustained by operations is part of program scope under benefits management, not an optional extra. The program manager is responsible for planning the transition and sustainment of benefits, including the knowledge, processes, and information the receiving organization needs. The sponsor therefore directs the program manager to develop those plans, which resolves the disagreement and addresses the operations manager's concern that critical information will be unavailable after closure.
Why the other options are wrong
- A. Planning the transition is the program's responsibility, so shifting it to an operations resource does not correct the program manager's misunderstanding.
- B. Operations prepares to receive benefits, but the program must plan the transition and sustainment, so this places the burden on the wrong party.
- D. Transition and sustainment planning is already within program scope, so treating it as a change to assess is unnecessary.
Question 139
A critical program for a company fails to deliver its intended benefits. The CEO and program sponsor are both held accountable and, ultimately, their employment is terminated by the board of directors.
What should the program manager do before formally closing the program?
Show answer and explanation
Correct answer: C. Share lessons learned with all program team members.
A program that failed to deliver its intended benefits holds valuable lessons about strategy, governance, and execution. Before formal closure, the program manager should capture those lessons and share them with the program team so that the knowledge is retained and applied to future work rather than lost when the team disbands. Sharing lessons learned is part of program knowledge management and helps the organization avoid repeating the same failures.
Why the other options are wrong
- A. Updating the benefits register records status but does not transfer the knowledge needed to prevent a repeat failure.
- B. A PMIS is established early to support the program, so setting one up at closure makes no sense.
- D. Handing documentation to a deputy is not a closure step, since records are archived in organizational repositories.
Question 140
To meet growth expectations and its board's mandate, an organization drafts a new business strategy to meet future challenges and put the business on track.
Key to the new strategy is upgrading the IT infrastructure and strategic direction by transitioning from an on-premise to a cloud-based computing platform that will optimize costs and offer scalability, performance, and high availability.
To appropriately plan for program success, what should the program manager do to engage stakeholders?
Show answer and explanation
Correct answer: B. Understand the organizational culture and politics, the overall program impact, and program-related stakeholder concerns.
Stakeholder engagement planning begins with understanding the environment in which stakeholders operate. For a strategic move from on-premise to cloud computing, the program manager needs to understand the organization's culture and politics, how the program will affect each group, and the concerns stakeholders have about the change. That understanding drives the engagement strategy, the communications approach and the priorities for engagement, so later tools such as the stakeholder register, stakeholder map and issue log are built on an accurate picture.
Why the other options are wrong
- A. Outlining engagement with the register and map presumes the analysis of culture, impact and concerns has already been done.
- C. Defining requirements and expected benefits is benefits and scope work, not the basis for planning stakeholder engagement.
- D. The issue log tracks concerns during delivery and is not used to plan engagement at the outset.
Question 141
Which of the following shows the ratio between a task's budgeted and actual costs?
Show answer and explanation
Correct answer: D. Cost Performance Index (CPI)
The cost performance index is calculated as CPI = EV / AC. Earned value is the budgeted cost of the work actually performed, and actual cost is what was really spent to perform it, so CPI expresses the ratio between budgeted and actual costs for completed work. A value of 1.0 means spending matches the budget for the work done, below 1.0 signals overrun, and above 1.0 signals underrun.
Why the other options are wrong
- A. TCPI is the cost efficiency needed on the remaining work to meet a target such as BAC or EAC, not the ratio of budgeted to actual cost to date.
- B. Schedule variance is EV minus PV, a monetary difference that reflects schedule performance rather than a cost ratio.
- C. SPI is EV divided by PV, a measure of schedule efficiency that does not use actual cost.
Question 142
You are the program manager for your organization and are coaching Bonnie, a project manager who would like to be a program manager and wants to know what a program is.
Which one of the following statements best defines what a program is for Bonnie?
Show answer and explanation
Correct answer: B. A program is a collection of projects managed to gain benefits for the organization; the organization could not realize the benefits of the project if they were managed independently.
PMI defines a program as related projects, subsidiary programs and program activities managed in a coordinated way to obtain benefits not available from managing them individually. The key idea is benefits: the program exists because coordinated management of its components produces value the organization would not realize if each project were run independently. This benefits-centered view, rather than size or the number of projects, is what distinguishes a program from a large project.
Why the other options are wrong
- A. Programs deliver benefits, often through many outputs and outcomes, rather than combining projects to create a single deliverable.
- C. This describes splitting one large project into parts and omits the defining purpose of a program, which is to realize benefits through coordinated management.
- D. A program is led by a program manager, and size alone does not make a group of projects a program.
Question 143
A new program manager joins a multi-year program that has been underway for almost a year. During interviews, several stakeholders state that they do not understand how the program will help the organization.
At the next stakeholder meeting, what should the program manager present to address their concerns?
Show answer and explanation
Correct answer: D. Expected program benefits management plan
The stakeholders' concern is how the program will help the organization, which is a question about benefits. The benefits management plan defines the expected benefits, links them to the organization's strategic objectives, and explains how and when they will be realized, measured, and sustained. Presenting it at the stakeholder meeting directly explains the value the program will produce for the organization and gives stakeholders a basis for supporting the program.
Why the other options are wrong
- A. The program charter authorizes the program at a high level but does not explain in detail how its benefits will be realized.
- B. Scope assessment results describe what work is included, not how that work creates value for the organization.
- C. A roadmap shows the chronological sequence of components and milestones rather than explaining how the program produces its benefits.
Question 144
Which of the following directs the improvement efforts to those areas that will have the biggest impact?
Show answer and explanation
Correct answer: C. Pareto diagram
A Pareto diagram is a histogram ordered by frequency of occurrence, usually with a cumulative percentage line. It applies the 80/20 principle, which holds that a small number of causes generate most of the problems. By ranking defect categories or causes from most to least frequent, it shows the team where corrective action will remove the largest share of problems, so improvement efforts go to the areas with the biggest impact.
Why the other options are wrong
- A. A Gantt chart presents activities and durations against a calendar and does not rank problems or improvement areas.
- B. A flowchart shows the steps and decision points of a process, which helps analysis but does not rank areas by impact.
- D. User documentation explains how to use a product and plays no part in prioritizing improvement work.
Question 145
You are the program manager for your organization and are about to execute your procurement management plan. You need to procure materials for your program and you want only the vendor to provide you with a price for the goods you need to procure.
What type of a document should you provide to the vendor in this scenario?
Show answer and explanation
Correct answer: B. Request for quote
When the buyer knows exactly what materials are needed and wants only a price from the vendor, the appropriate solicitation is a request for quote (RFQ), sometimes called a request for quotation. The RFQ asks sellers to state their price for clearly defined goods, without asking for technical approaches, methodologies or management plans. Price-only solicitations are typical for standard, well-specified items where vendors are compared mainly on cost.
Why the other options are wrong
- A. A statement of work describes the work or goods required and accompanies a solicitation, but on its own it does not request a price.
- C. A proposal is the seller's response to a request for proposal and contains approach and technical detail, not a buyer's price-only request.
- D. The program charter authorizes the program internally and is never sent to vendors to obtain pricing.
Question 146
What should a program manager do when a scope change has been approved that will drastically affect the program costs assuming that the costs will be added to the program budget?
Show answer and explanation
Correct answer: A. Adjust the cost baseline
Once a scope change is approved and its additional costs are authorized as part of the program budget, the cost baseline must be revised to include the new approved funding. The baseline is the reference against which cost performance is measured, so leaving it unchanged would make every later variance and index misleading. Updating the baseline, along with the related plans, keeps performance measurement accurate and reflects the change that governance approved.
Why the other options are wrong
- B. Stakeholders are informed through the communications plan, but the required action for an approved, funded change is to revise the cost baseline that measures performance.
- C. The change described affects cost, so it is the cost baseline, not a quality baseline, that must be revised.
- D. Communicating the change does not update the reference used to measure cost performance, which is the required action here.
Question 147
When is the lessons learned document updated?
Show answer and explanation
Correct answer: C. Throughout the project lifecycle
Lessons learned are captured and updated throughout the life cycle, not saved for a single point at the end. Recording them as they occur keeps the details accurate, lets the current team apply them to the remaining work, and gives later phases and components the benefit of earlier experience. At closure the accumulated register is finalized and transferred to the organizational knowledge base, but that final step builds on entries made in every phase along the way.
Why the other options are wrong
- A. Closing is when lessons are finalized and archived, but waiting until then loses details and prevents the current team from benefiting.
- B. Planning is only one phase; lessons continue to emerge during execution, control, and closure and must be recorded then too.
- D. Execution is only one phase; restricting updates to it would miss lessons from initiating, planning, and closing.
Question 148
Which of the following plans should a project manager implement if a selected risk strategy fails to be fully effective?
Show answer and explanation
Correct answer: A. Fallback plan
A fallback plan is an alternative set of actions developed for use if the primary risk response proves not to be fully effective. Planning a fallback in advance means the team does not have to improvise when the selected strategy falls short, which reduces delay and further damage. Fallback plans are documented alongside the primary responses in the risk register and are typically linked to defined triggers that indicate the primary response is not working.
Why the other options are wrong
- B. The risk response plan contains the primary strategy that has proved ineffective, so it is not the backup to turn to.
- C. There is no recognized mitigation management plan used as a backup when a selected response fails.
- D. A mitigation plan describes a primary response for reducing a threat, not the alternative used when the chosen response fails.
Question 149
A program manager is leading a program to transform an organization's sales and customer service operations by introducing a new customer relationship management
(CRM) solution. As the program progresses, the sponsor and other stakeholders are satisfied with the pace of the program's performance.
A stakeholder from the sales department now requests a new feature to integrate the CRM platform with another application. The program manager advises that this is out of scope, as it will require analysis and development and be a project on its own. The program manager then requests additional funding via the formal change management process and the new scope is approved.
What should the program manager do next?
Show answer and explanation
Correct answer: C. Redefine the priorities of the existing program components to ensure optimal resource allocation and management of interdependencies.
Once the change is approved and funded through the formal change process, a new component joins the program. Adding a component affects shared resources, schedules and interdependencies across existing components, so the program manager should next reprioritize the components and adjust resource allocation and interdependency management to integrate the new work without harming benefits delivery. This is the program manager's core integration role: optimizing the program's set of components as a whole rather than treating the new project in isolation.
Why the other options are wrong
- A. The new scope and funding were already approved through the formal change management process, so further approvals are unnecessary.
- B. Naming a project manager without first rebalancing priorities and dependencies ignores the program-wide impact of the new component.
- D. Discontinuing an existing component is a drastic governance decision with no basis in the scenario, and the change was approved with additional funding.
Question 150
You are the program manager for your organization. Your current program is to create a new recreational facility in your city. Franklin, the Chief Executive Officer, is concerned about meeting all of the financial and schedule requirements of the proposed program. Martina, the mayor of your town, wants to make certain the program meets all safety requirements and building codes. Your supervisor, Mary Ann, is the Program Director, and she is concerned about the start date of your program. Another stakeholder, Hal, is worried that your resources may be spread thin on the program as some of the resources are on multiple projects in your program.
To whom will you report in this program?
Show answer and explanation
Correct answer: D. Mary Ann
Mary Ann is the program manager's supervisor and holds the program director role, so she is the person the program manager reports to. The other people are stakeholders whose interests the program manager must identify and manage: Franklin cares about financial and schedule requirements, Martina about safety and building codes, and Hal about resource allocation. Their concerns must be addressed through stakeholder engagement and communications, but having an interest in the program does not place them in the program manager's reporting line.
Why the other options are wrong
- A. Franklin, as CEO, is a senior stakeholder concerned with finances and schedule, but he is not the program manager's direct supervisor.
- B. Martina is an external stakeholder concerned with safety and codes, not part of the program manager's reporting line.
- C. Hal is a stakeholder concerned about resources and holds no supervisory role over the program manager.
Question 151
All of the following are resources that need to be monitored and controlled except for which one?
Show answer and explanation
Correct answer: C. Quality
Resources are the people, equipment, materials and facilities that are consumed or used to perform the work, and they are monitored and controlled for availability, allocation, utilization and cost. Quality is not a resource. It is the degree to which deliverables meet requirements, and it is managed through quality planning, assurance and control rather than through resource control. Equipment, staff and facilities are all resources the program must monitor and control, so quality is the exception.
Why the other options are wrong
- A. Equipment is a physical resource monitored for availability, condition and utilization.
- B. Staff are human resources monitored for allocation, availability and performance.
- D. Facilities are physical resources monitored for availability, capacity and suitability.
Question 152
A program manager has a multiple-project program that is scheduled to be completed by year's end. During the program delivery phases of the projects, several mandatory changes are identified that would extend the program's completion date.
What is the next step for the program manager?
Show answer and explanation
Correct answer: D. Submit a change request to extend the program schedule
Mandatory changes that extend the completion date affect the approved program schedule baseline, and baseline changes must go through the program's change control process. The program manager submits a change request describing the changes and their impact on schedule, cost, and benefits so that the appropriate governance authority can review and approve the extension. Only after approval is the schedule baseline updated and the new completion date communicated to stakeholders.
Why the other options are wrong
- A. Resource leveling usually lengthens a schedule and cannot absorb mandatory changes while keeping the original date.
- B. Updating the schedule before the change is approved alters the baseline outside change control.
- C. Extending working hours tries to hide the impact of mandatory changes instead of handling them through change control and may not be sustainable.
Question 153
A project is assigned to a qualified project manager by the program manager. The client rejects the project manager due to a lack of proper qualifications to manage such a project.
What should the program manager do next?
Show answer and explanation
Correct answer: D. Apply the competence assessment techniques to resolve the issue
The program manager selected the project manager as qualified, yet the client disagrees, so the issue is a difference in perception that needs objective evidence to resolve. Applying competence assessment techniques measures the project manager's knowledge, skills, and experience against the competencies the project requires and produces documented results that can be shared with the client. The outcome either confirms the assignment with evidence that addresses the client's concern or reveals a real gap that must be addressed, so the decision rests on facts rather than opinion.
Why the other options are wrong
- A. Re-checking credentials only revisits the paperwork already used to make the assignment and gives the client no new basis for confidence.
- B. Replacing a project manager believed to be qualified, without assessing the claim, concedes the point without any evidence.
- C. Reviewing project skill requirements alone does not show whether this project manager meets them, so the dispute stays unresolved.
Question 154
Your program has a budget at completion of $1,550,000 and is expected to last one year.
Currently your program is 45 percent complete and has spent $725,000. According to the program schedule you are actually to be fifty percent complete by this time, but due to some vendor delays your program is running just a bit late. Based on this information which is performing worse, the cost or schedule?
Show answer and explanation
Correct answer: A. The schedule is performing worse because the SPI is .90
Earned value is $1,550,000 x 0.45 = $697,500 and planned value is $1,550,000 x 0.50 = $775,000. SPI = EV / PV = $697,500 / $775,000 = 0.90, so the program is progressing at 90 percent of the planned rate. CPI = EV / AC = $697,500 / $725,000 = 0.96, so cost efficiency is also below 1.0 but less so. Comparing the two indexes, 0.90 is further from 1.0 than 0.96, which means the schedule is performing worse than the cost.
Why the other options are wrong
- B. An EAC of $1,611,111 is a cost forecast, not a comparison of efficiency, and the CPI of 0.96 is better than the SPI of 0.90, so cost is not the worse performer.
- C. A variance of -$27,500 is the cost variance (EV - AC); the schedule variance is EV - PV = -$77,500.
- D. A CPI of 0.96 is closer to 1.0 than the SPI of 0.90, so cost is performing better than the schedule, not worse.
Question 155
Which one of the following is the best example of transference?
Show answer and explanation
Correct answer: D. Your program is dealing with a new technology that you and your program team are not familiar with so you hire a consulting company to complete this work for you.
Transference moves a threat, and responsibility for managing it, to a third party better equipped to handle it. When the team is unfamiliar with a new technology, hiring a consulting company to complete that work places the technical risk with an organization that has the expertise, typically under a contract that makes the consultant accountable for the result. The program still pays for the response, but the party that performs the work and carries the delivery risk has changed, which is the essence of transference.
Why the other options are wrong
- A. Training the team keeps the dangerous work and its risk inside the program while lowering probability, which is mitigation.
- B. Partnering with another party to capture an opportunity is the sharing response for opportunities, not transference of a threat.
- C. A fixed deadline tied to government inspections is a constraint on the program, not a response that moves risk to another party.
Question 156
A component is scheduled to close at the end of the week.
What should the program manager verify prior to allowing the component to close?
Show answer and explanation
Correct answer: B. The component has met the quality requirements to meet program objectives
Before a component closes, the program manager verifies that its outputs have been accepted and meet the quality requirements needed to support program objectives. Components deliver capabilities and outputs; the benefits those outputs enable are often realized later, after transition, and are tracked at program level through the benefits management plan. Confirming that deliverables meet quality and acceptance criteria ensures the component has contributed what the program needs before its resources are released and it is formally closed.
Why the other options are wrong
- A. Releasing resources is an outcome of closure, not a condition that must be verified before the component may close.
- C. Meeting the schedule does not show that the deliverables are fit for purpose, and a late component still closes once its outputs are accepted.
- D. Benefits from a component are often realized after it closes and transitions, so they are tracked at program level rather than required for component closure.
Question 157
A program has a BAC of $1,750,000 and is expected to last two years. The program is currently at the third milestone which represents 35 percent of the program work. As it happens, this program has already spent $620,000 of the budget. Management is concerned that the program may also be slipping on schedule because the program should be forty percent complete by this time. Based on this information which type of underperformance is present in this scenario?
Show answer and explanation
Correct answer: C. Schedule, because the program has a schedule performance index of .88.
Earned value is $1,750,000 x 0.35 = $612,500 and planned value is $1,750,000 x 0.40 = $700,000. SPI = EV / PV = $612,500 / $700,000 = 0.875, about 0.88, meaning the program has accomplished only 88 percent of the work planned by this point. For cost, CPI = $612,500 / $620,000 = 0.99, very close to 1.0. The schedule therefore shows the clear underperformance, which confirms management's concern that the program is slipping.
Why the other options are wrong
- A. Planned value alone states how much work was scheduled; it does not measure performance unless compared with earned value.
- B. A cost variance of -$7,500 gives a CPI of about 0.99, which is minor compared with the SPI of 0.88.
- D. An ETC of $1,151,429 is a forecast of remaining cost, not a measure showing cost is the performance problem.
Question 158
A new program is comprised of four component projects. The program manager must assign project managers to each of the four projects. There are eight potential project managers to consider.
What should the program manager do before assigning the project managers?
Show answer and explanation
Correct answer: C. Evaluate the project managers' skills and match them to the needs of the projects
Each component project has its own technical demands, complexity, and stakeholder environment, so the program manager should first evaluate the candidates' skills, experience, and competencies and match them to what each project requires. Placing the right capability on each component is critical, because component success drives the program's ability to deliver its benefits. Other considerations, such as cost or individual preferences, are weighed only after suitability has been established.
Why the other options are wrong
- A. Salary constraints are a secondary consideration that cannot replace an assessment of whether a candidate fits the project.
- B. Line manager feedback describes past performance generally and does not by itself match capabilities to each project's needs.
- D. Career aspirations matter for development, but assignments are driven first by the needs of the projects.
Question 159
You are the program manager for your organization. Management would like to consider the present value for your program. If your program is predicted to be worth $450,000 in two years what is the present value of the program if the interest rate is six percent?
Show answer and explanation
Correct answer: A. $400,498
Present value uses PV = FV / (1 + r)^n. With FV of $450,000, r of 0.06 and n of 2, the discount factor is (1.06)^2 = 1.1236, so PV = $450,000 / 1.1236 = $400,498. A future amount discounted at a positive rate is always worth less today than its future value, so the present value must fall below $450,000, and only $400,498 matches the calculation.
Why the other options are wrong
- B. $521,345 exceeds the future value, which is impossible for a present value at a positive interest rate.
- C. $505,620 is $450,000 compounded forward two years at six percent, a future value rather than a present value.
- D. $385,450 discounts the amount too heavily and does not equal $450,000 divided by 1.1236.
Question 160
A company is releasing a new product geared toward a specific geographic area. The program manager has received the program objectives and developed the program roadmap, which consists of six program components. Approval from the program governance board has been obtained.
What is the program manager's next step?
Show answer and explanation
Correct answer: C. Identify the program sponsor and program stakeholders
With the objectives defined, the roadmap developed, and governance board approval obtained, the program moves into detailed planning, and that planning rests on knowing who sponsors, funds, influences, and is affected by the program. The program manager confirms the program sponsor and identifies the program stakeholders, recording them in the stakeholder register so that their needs, expectations, and influence shape the program management plan. Stakeholder identification therefore comes before components are authorized and project managers and resources are assigned.
Why the other options are wrong
- A. Project managers and resources are assigned when components are authorized, which follows stakeholder identification and planning.
- B. Benefits are identified and classified as part of building the business case and objectives, which are already in place.
- D. The business case justifies the program before its roadmap is approved, so it already exists at this point.
Question 161
What quality control chart compares two or more variables over time to determine how closely the variables may be related to one another?
Show answer and explanation
Correct answer: B. Scatter diagram
A scatter diagram plots pairs of values for two variables, one on each axis, to show whether and how strongly they are related. When the points cluster along a line, the variables are correlated, positively or negatively; a random spread suggests little or no relationship. Quality teams use it to test whether a suspected cause, such as temperature or experience level, actually moves with an effect, such as defect rate, which matches the description of determining how closely variables are related.
Why the other options are wrong
- A. A run chart tracks a single variable over time to show trends, not the relationship between variables.
- C. A control chart shows whether a single process measure stays within statistical control limits, not the relationship between variables.
- D. A Pareto diagram ranks causes or categories by frequency to find the vital few, not the relationship between variables.
Question 162
You are the program manager for your organization. Management is considering a new program but they are worried about the program risks that may affect the program success. You know that there are three positive risk responses and three negative risk responses that each risk can have. Management asks you which risk response would be most appropriate for a large risk event if they wanted to hire a third party to own the risk event for the program.
What risk response is most appropriate?
Show answer and explanation
Correct answer: A. Transference
Transference is a negative risk response that shifts ownership of a threat, and the responsibility for its impact, to a third party. Common examples include insurance, performance bonds, warranties and fixed-price contracts. The risk itself is not eliminated, and the program usually pays a premium to the party assuming it. Because management wants to hire a third party to own a large risk event, transference is the appropriate response.
Why the other options are wrong
- B. Mitigation reduces the probability or impact of a threat while the program keeps ownership of it.
- C. Avoidance changes the plan to eliminate the threat entirely rather than handing it to a third party.
- D. Sharing is a positive risk response that allocates an opportunity to a partner, not a way to hand a threat to a third party.
Question 163
The program charter for a new, five-component program has been approved.
What should the program manager use to communicate the program's intended direction and the linkage between organizational strategies and planned work?
Show answer and explanation
Correct answer: A. Program roadmap
The program roadmap is a chronological representation of the program's intended direction. It graphically shows the major milestones, decision points and dependencies among components, and it reflects the linkage between organizational strategy and the planned program work. Once the program charter is approved, the roadmap is the natural tool for communicating to stakeholders where the five components are heading and how that work supports strategic objectives over time.
Why the other options are wrong
- B. The program charter authorizes the program and defines its scope and objectives but does not chart its direction over time.
- C. The business case justifies the investment and is not the tool for communicating the planned path of work.
- D. The program management plan integrates the subsidiary plans and is too detailed to communicate direction and strategic linkage concisely.
Question 164
Your program has been selected and its program charter is now being created. The program charter defines all of the following characteristics except for which one?
Show answer and explanation
Correct answer: D. Project scope statement for all projects within the program
The program charter formally authorizes the program and links it to the business case and organizational strategy. It describes the program at a high level, including scope, high-level objectives, constraints, assumptions, high-level risks and benefits, timing and key stakeholders. Detailed project scope statements for every component are not part of it; they are developed later, when each component is initiated and planned under the program's governance.
Why the other options are wrong
- A. Program constraints are part of the high-level information the program charter defines.
- B. Program scope is a core element of the program charter.
- C. High-level objectives are a core element of the program charter.
Question 165
Which of the following documents provides the mandate to execute the program within a certain timeline and also presents milestones for the delivery of products or incremental benefits?
Show answer and explanation
Correct answer: D. Program charter
The program charter formally authorizes the program and gives the program manager the mandate to use resources to carry it out. Approved by the program sponsor and governance, it links the program to the organization's strategic objectives and documents its scope, high-level timeline and key milestones, including when products, capabilities or incremental benefits are expected to be delivered. It then guides detailed planning in the program management plan and program roadmap.
Why the other options are wrong
- A. A program architecture baseline describes the structure of components and their relationships, not the mandate to execute.
- B. The program risk register records risks and their responses, and it grants no authority to execute the program.
- C. The program WBS decomposes the program's work and deliverables but does not authorize the program or set its mandate.
Question 166
A component project manager escalates an issue regarding a key stakeholder to the program manager. The key stakeholder does not respond to emails or phone calls, and the project manager believes this key stakeholder is exhibiting a negative attitude toward the work. The key stakeholder has a significant influence over the component project, which could impact other components if delays occur. The program manager's attempts to reach the stakeholder via email also fail.
What should the program manager do next?
Show answer and explanation
Correct answer: D. Attempt to call the key stakeholder; if unsuccessful, visit their office to identify potential risks
Email has failed twice, but the program manager has not yet tried richer, more direct forms of engagement. Calling the stakeholder and, if that fails, visiting in person is the next logical step: face-to-face contact lets the program manager understand the stakeholder's concerns, uncover the reasons behind the apparent negative attitude, and identify risks to this component and to dependent components. PMI expects the program manager to exhaust direct engagement and gather facts before escalating, because escalation without understanding the root cause can damage a relationship with a highly influential stakeholder.
Why the other options are wrong
- A. Going to the stakeholder's supervisor before trying a call or a personal visit is premature and likely to harden the stakeholder's negative attitude.
- B. The governance board is for issues beyond the program manager's authority, and direct engagement has not yet been exhausted.
- C. Nothing confirms a realized risk yet, since the cause of the silence is unknown and must be understood before any response is executed.
Question 167
The program manager of a multinational program must reconcile data including subject matter experts' labor hour estimates, and other direct resource hour estimates. In addition, the program manager must prepare the cash flow analysis.
Which of the following should be considered to get a baseline budget?
Show answer and explanation
Correct answer: B. Component cost estimates
The program budget baseline is built by aggregating the cost estimates of the components and adding program-level costs. Reconciling the subject matter experts' labor hour estimates and other direct resource hour estimates produces those component cost estimates, which are the core input from which the baseline budget is established. Cash flow analysis then spreads that approved budget over time to show when funds are needed, but the amount itself comes from the component cost estimates.
Why the other options are wrong
- A. Exchange rates adjust how costs are expressed across currencies but are not the basis for the baseline budget.
- C. The schedule time-phases the budget, but without cost estimates it provides no budget amounts.
- D. Payment schedules determine when funds are disbursed, which is a cash flow concern rather than the basis of the baseline.
Question 168
A hotel chain initiates a program to expand meeting offerings to include telecommunications technology and virtual meetings. The program has component projects, each of which requires team members to have different technical skills and expertise. The program manager assembles a team of project managers to lead each of the projects, and learns that the desired resources will not be available at the start of the program.
As a result, the program manager must do which of the following?
Show answer and explanation
Correct answer: D. Apply resource leveling considering the constraints of time, budget, and quality.
When the desired resources will not be available at the start of the program, the program manager must adjust the plan to fit actual resource availability rather than compromise outcomes. Resource leveling reschedules work around resource constraints while balancing the competing demands of time, budget, and quality, so that components with specialized skill needs are sequenced for when qualified people can join. This keeps the program feasible, protects the quality of deliverables, and gives stakeholders a realistic schedule for benefits delivery.
Why the other options are wrong
- A. Staffing components with people who lack the required expertise threatens quality and the benefits the program is meant to deliver.
- B. Assigning critical path work to unqualified resources puts the most schedule-sensitive tasks at the highest risk of failure and rework.
- C. Delaying the entire program is an unnecessary response when work can be resequenced around resource availability.
Question 169
Stakeholders make ad-hoc requests on a routine basis. This causes duplication of reporting and communication gaps that affect the program's performance.
To resolve this situation, which of the following must go through critical review and change?
Show answer and explanation
Correct answer: D. Program communications management plan
Duplicated reporting and communication gaps caused by routine ad-hoc requests show that the program's approach to communications is not meeting stakeholder needs. The program communications management plan defines what information is provided, to whom, when, in what format, and through which channels. Critically reviewing and revising this plan lets the program manager build recurring stakeholder needs into planned communications, remove duplicate reporting, and close gaps, which reduces ad-hoc requests and improves program performance.
Why the other options are wrong
- A. The benefits management domain concerns identifying and realizing benefits, not how information is distributed to stakeholders.
- B. Communication requirements are an input to the plan, and changing them alone does not change how communications are delivered.
- C. A single communications report is an output of the plan and cannot fix the systemic causes of duplication and gaps.
Question 170
You are the program manager for the HNY Corporation and you complete programs for other companies in your role. You have just been assigned a new program that is very similar to a recently completed program you did for your company. Management has asked you to create a cost estimate for the program so you base your current cost estimate on the recently finished program.
What type of estimating technique have you used in this instance?
Show answer and explanation
Correct answer: C. Analogous
Analogous estimating uses the actual cost or duration of a similar past effort as the basis for estimating the current one. Basing the new program's cost estimate on a recently completed, very similar program is exactly this top-down technique. It is quick and inexpensive and is most reliable when the earlier work is genuinely similar and the people preparing the estimate have the expertise to adjust for known differences between the two programs.
Why the other options are wrong
- A. Bottom-up estimating rolls up detailed estimates of individual work packages rather than relying on a whole previous program.
- B. Parametric estimating applies a statistical relationship between variables, such as cost per unit, rather than comparing the whole program to a past one.
- D. Rough order of magnitude describes the accuracy range of an early estimate, not the technique of basing the estimate on a similar past program.
Question 171
During the program execution stage, the component project manager responsible for testing estimates that budgeted hours may exceed 200 hours.
What should the program manager do?
Show answer and explanation
Correct answer: B. Determine which component projects have excess capacity and rebalance those resources to the project that needs additional hours.
A key benefit of managing projects as a program is the ability to optimize resources across components. When the testing component may exceed its budgeted hours, the program manager first checks which components have excess capacity and rebalances those resources to the component in need. This keeps the work within the program's existing budget and capacity, avoids an unnecessary change order, and reflects the program manager's responsibility for resource interdependencies among components.
Why the other options are wrong
- A. Requesting additional funding is premature when capacity may already exist elsewhere within the program.
- C. Requiring unbilled extra hours misrepresents the true cost of the work and violates honest reporting.
- D. Cutting hours from other parts of the project shifts the shortfall and can compromise other deliverables.
Question 172
A large program consists of several component projects and six project managers. The program governance board requests that all components within the program undergo user acceptance testing before being released to the production environment.
Where should the program manager document this?
Show answer and explanation
Correct answer: D. Program quality management plan
A requirement that every component pass user acceptance testing before release to production is a program-wide quality standard. The program quality management plan defines the quality standards, policies, and assurance and control activities that apply across all components, so documenting the requirement there ensures each project manager builds it into their component plans. Components then reflect the requirement in their own test plans, while the program maintains consistent quality across the program.
Why the other options are wrong
- A. The program governance plan defines oversight structures and decision processes, not specific quality and testing standards.
- B. Program requirements describe what the program must deliver, not the quality process that all components must follow.
- C. Component test plans and test cases implement the requirement at component level but are not where a program-wide standard is set.
Question 173
Martha is sharing her experience of her last project as the project manager. She says that when she presented the customer a formal acceptance and sign-off document, they refused to sign, claiming that the product does not meet their expectation. Taking which of the following steps could have prevented the situation? Each correct answer represents a complete solution.
Choose all that apply.
Show answer and explanation
Correct answer: A, B, C. Performing quality inspections regularly; Archiving sign-off at important milestones; Documenting the requirements
Documenting the requirements establishes an agreed, verifiable definition of what the customer expects, so the final product can be measured against it rather than against unstated expectations. Performing quality inspections regularly catches nonconformities while they can still be corrected, so the product presented for acceptance actually meets those requirements. Obtaining and archiving sign-off at important milestones confirms customer acceptance incrementally, surfaces disagreements early, and leaves documented evidence of what the customer already approved, making a refusal at final acceptance far less likely. Each practice on its own addresses a cause of the refusal Martha experienced.
Why the other options are wrong
- D. Finishing behind schedule does nothing to align the product with customer expectations and would only add dissatisfaction.
Question 174
A request for proposal (RFP) yields a bid with a better delivery schedule and a lower cost, but originates from a vendor not on the prequalified vendor list. During the final review of the RFPs, the program manager is informed that the new bidder is a relative of the project manager. Although the bid meets all company policies, the program manager is concerned about a conflict of interest.
What should the program manager do?
Show answer and explanation
Correct answer: C. Advise the sponsor of a possible conflict of interest prior to awarding the bid.
Even though the bid meets company policies and offers better cost and schedule, the bidder is related to the project manager, which creates a possible conflict of interest. PMI's Code of Ethics and Professional Conduct requires practitioners to disclose real or potential conflicts of interest to the appropriate stakeholders before decisions are made. The program manager should advise the sponsor of the possible conflict before awarding the bid, so the decision is made transparently and with proper oversight.
Why the other options are wrong
- A. Rejecting the best bid without disclosure ignores a compliant offer and does not address the conflict transparently.
- B. Accepting the bid while a known conflict exists, even if documented, skips disclosure to the sponsor before the award.
- D. Changing the vendor list and replacing the project manager are drastic unilateral actions taken without disclosing the conflict first.
Question 175
You are the program manager for the NHQ Program. Your program has a budget of $4,500,000 and has lasted for two years. Your program has just completed its final deliverable and you're completing the final program closure processes.
What document must the program customer now sign as part of program closure?
Show answer and explanation
Correct answer: C. The customer must now sign the certificate of program closure.
When the final deliverable is complete, the program customer formally accepts the program by signing the certificate of program closure. This signature confirms that the program's deliverables have been accepted and that the program can be closed, allowing contracts, resources and records to be closed out and the program to be formally ended under its governance framework.
Why the other options are wrong
- A. Program scope is approved during definition and planning, not signed at closure.
- B. Payment is a financial transaction, not the formal acceptance document required for closure.
- D. An operational transfer agreement hands over capabilities to the receiving operations organization and does not provide the customer's formal sign-off of program closure.
Question 176
After a company's senior executive management meeting, the CEO issues a mandate to automate a new-client on-boarding process that would effectively eliminate the current, manual, paper-based process. The assigned program sponsor selects a program manager.
Both the program sponsor and the program manager must ensure that the program charter contains which of the following?
Show answer and explanation
Correct answer: C. Justification, outcomes, scope, and stakeholder considerations
The program charter formally authorizes the program and links it to organizational strategy. It typically contains the program's justification, vision, strategic alignment, expected outcomes and benefits, scope, high-level resources and timeline, risks, and stakeholder considerations, together with governance information. Justification, outcomes, scope, and stakeholder considerations are therefore all charter elements. Detailed plans, such as the benefits management plan or resource management plan, are developed later, during program planning.
Why the other options are wrong
- A. The benefits management plan is created during planning after the charter is approved, so it is not charter content.
- B. The resource management plan is a planning output and is not contained in the program charter.
- D. The business case is a separate input to the charter, and the benefits management plan comes later in planning.
Question 177
During program execution, a program manager receives feedback from an executive sponsor that some program stakeholders may not understand the intended benefits of the program.
Which will provide the greatest value to clarify stakeholder perceptions?
Show answer and explanation
Correct answer: B. Updating the stakeholder communications requirements
Stakeholders who misunderstand the intended benefits are not receiving information in a form, frequency, or channel that works for them. Updating the stakeholder communications requirements defines what each stakeholder group needs to know about benefits, at what level of detail, and how it should reach them. Tailored messaging built from these updated requirements clarifies perceptions far more effectively than recirculating documents, and keeps understanding aligned as the program continues.
Why the other options are wrong
- A. A stakeholder analysis identifies and assesses stakeholders but does not, on its own, change what stakeholders hear about benefits.
- C. Recirculating the benefits management plan sends a detailed planning document that does not address how each group needs information.
- D. Recirculating the program charter repeats high-level authorization content that stakeholders have already failed to absorb.
Question 178
A two-year program is coming to an end. Many of the initial governance board members have moved from their current posts or left the company.
Several new members have joined, but have a short association with the program, which changes the board's expectations and focus. During the final phase gate review, some board members are uncertain of their roles and expectations in the process.
How should the program manager handle this situation?
Show answer and explanation
Correct answer: C. Review the strategic plan and benefits management plan with the board
New governance board members with a short history on the program are unsure of their roles at the final phase gate. Reviewing the strategic plan and the benefits management plan with the board re-establishes why the program exists, which strategic objectives it serves, and which benefits it was chartered to deliver. With that context, members can judge the closing phase gate against the right criteria and understand what decision they are being asked to make.
Why the other options are wrong
- A. Reviewing outcomes only with the sponsor leaves the uncertain board members without the context they need for the gate decision.
- B. Raising a change request at the final gate adds new scope instead of clarifying the board's role and the program's purpose.
- D. Status, cost, and schedule reports show performance data but do not explain the strategic purpose and benefits against which the board decides.
That was 178 of 713.
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