CH 12 Project Management MC – Flashcards

"A shortage of qualified personnel is one of the main reason that companies outsource. A project may require experts in a particular field for several months and planning for this procurement ensures that the needed services will be available for the project." Which of the following benefits does this characteristic of outsourcing provide an organization? a. Reduces focus on its core business b. Increases control over all aspects of projects that suppliers carry out c. Provides access to specific skills d. Reduces dependency on suppliers

Outsourcing suppliers can often provide economies of scale, especially for hardware and software, that may not be available to the client alone. Which of the following benefits does this offer an organization? a. Reduction in fixed and recurrent costs b. Increased flexibility c. Increased accountability d. Access to specific skills

"Most organizations are not in business to provide information technology services, yet many have spent valuable time and resources on information technology functions when they should have instead worked on important competencies such as marketing, customer service, and new product design. Outsourcing helps tackle this problem." Which of the following benefits does outsourcing primarily provide in such a scenario? a. Reduces fixed and recurrent costs b. Protects strategic information from being accessible to external suppliers c. Increases accountability even without a written contract d. Helps focus on an organization's core business

"Outsourcing to provide extra workers during periods of peak workloads can be much more economical than trying to fill entire projects with internal resources." Which of the following advantages does this characteristic of outsourcing provide organizations? a. Offers control over all aspects of projects that suppliers carry out b. Provides a company flexibility in staffing c. Shifts accountability from external suppliers to internal staff d. Helps avoid any form of dependency on suppliers

A drawback of outsourcing is that: a. it does not provide access to specific skills or technologies. b. it invariably results in an increase in both fixed and recurrent costs. c. it can make an organization become overly dependent on particular suppliers. d. it cannot increase accountability of suppliers through a written contract.

The first step in project procurement management is: a. closing procurement management. b. controlling procurements. c. conducting procurements. d. planning procurement management.

In project procurement management, the process of _____ involves determining what to procure, when, and how. a. closing procurements b. controlling procurements c. conducting procurements d. planning procurement management

In project procurement management, the process of _____ involves obtaining seller responses, selecting sellers, and awarding contracts. a. conducting procurements b. closing procurements c. settling contracts d. planning procurement management

Outputs of the _____ process consist of selected sellers and resource calendars. a. closing procurements b. conducting procurements c. planning procurement management d. controlling procurements

Which of the following processes of project procurement management involves managing relationships with sellers, monitoring contract performance, and making changes as needed? a. Closing procurements b. Settling contracts c. Deciding on the services to procure d. Controlling procurements

In project procurement management, which of the following processes involve completion and settlement of each contract, including resolution of any open items? a. Planning procurement management b. Controlling procurements c. Closing procurements d. Conducting procurements

The procurement statements of work are an output of the _____ process of project procurement management. a. planning b. executing c. monitoring and controlling d. closing

In project procurement management, the process of conducting procurements is part of the _____ process. a. planning b. executing c. monitoring and controlling d. closing

In project procurement management, which of the following is an output of the executing process? a. Make-or-buy decisions b. Statements of work c. Source selection criteria d. Resource calendars

In project procurement management, an output of the _____ monitoring and controlling process. a. Change requests b. Selected sellers c. Resource calendars d. Make-or-buy decisions

Which of the following is true of lump-sum contracts? a. They incur a high degree of risk for the buyer. b. They involve a fixed total price for a well-defined product or service. c. They consist of a fee based on the satisfaction of subjective performance criteria. d. They are also known as cost-reimbursable contracts.

_____ contracts involve payment to the supplier for direct and indirect actual costs and often include fees. a. Firm-fixed-price b. Lump sum c. Cost-reimbursable contracts d. Fixed-price incentive fee

In a(n) _____ contract, the buyer pays the supplier for allowable performance costs along with a predetermined fee and an incentive bonus. a. FFP b. CPIF c. CPPC d. FPIF

With a(n) _____ contract, the buyer pays the supplier for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs. a. CPFF b. FPIF c. CPAF d. CPIF

In which of the following contracts does the buyer pay the supplier for allowable performance costs along with a predetermined percentage based on total costs? a. FPIF b. CPIF c. CPPC d. CPAF

From the buyer's perspective, the _____ is the least desirable among all contracts because the supplier has no incentive to decrease costs. a. CPIF b. CPFF c. CPAF d. CPPC

A(n) _____ contract carries the least risk for suppliers. a. CPPC b. FFP c. CPAF d. FP-EPA

The _____ is a description of the work required for a procurement. a. RFQ b. RFP c. WBS d. SOW

A(n) _____ is a document used to solicit proposals from prospective suppliers. a. RFQ b. WBS c. RFP d. SOW

A document used to solicit quotes or bids from prospective suppliers is known as a(n) _____. a. RFQ b. RFP c. WBS d. SOW

After planning for procurement management, which of the following does the next process involve? a. Determining the evaluation criteria for the contract award c. Using expert judgement in planning purchases and acquisitions b. Developing procurement statements of work d. Sending appropriate documentation to potential sellers

In project procurement management, which of the following is one of the main outputs of the conducting procurement process? a. A selected seller b. A procurement management plan c. A procurement statement of work d. A closed procurement

The process of choosing suppliers or sellers is known as _____. a. source selection b. a bid c. WBS d. a change order

Which of the following is an output of the contract closure process? a. Procurement statements of work b. Updates to organizational process assets c. Resource calendars d. Work performance information