PMP Sample Questions (200 Questions) | Project Scope Management | Project Cost Management | Project Risk Management | Schedule Management Questions | Quality Management | Procurement Management | Communications Mgmt | Project Resources | Integration Management |
Procurement Management

Question - 1

A product description of a project can help in creating procurement details. Which one of the following best describes the product description?

A. A product description defines the contracted work based on the requirements of the customer

B. A product description defines the contracted work

C. A product description defines the requirements for the contract work

D. All of the above


A is the correct answer. A product description defines the contracted work based on the requirements of the customer.


Question - 2

You are the project manager and decided to outsource a part of the project to a vendor. The vendor discovered some issues that impact the cost and schedule of its work. How does the vendor update the agreement?

A. A new contract needs to be signed by your company and the vendor

B. A contract addendum needs to be signed by your company and the vendor

C. An SOW needs to be signed by you and the vendor

D. None of the above


B is the correct answer. A contract addendum needs to be signed by your company and the vendor.


Question - 3

You are the project manager of a marketing project and need to purchase some equipment. The accounting department needs a unilateral contract from you. Accounting is referring to which of the following:

A. Legal Binding Contract

B. Purchase Order

C. Statement of Work

D. WBS


B is the correct answer. A unilateral contract is simply a purchase order.


Question - 4

You are the project manager and have decided to outsource a part of the project to a vendor. You have offered a bonus to the vendor if the work is completed in two months. This is an example of _____________.

A. project incentive

B. project goal

C. fixed price contract

D. None


A is the correct answer. This is an example of project incentive.


Question - 5

The buyer asks a specific seller to prepare technical and financial proposals, which are then negotiated. Since there is no competition, this method is acceptable only when properly justified and should be viewed as an exception. Which of the source selection method applied?

A. Least cost

B. Sole source

C. Fixed budget

D. Qualifications only


B is the correct answer. Sole source. The buyer asks a specific seller to prepare technical and financial proposals, which are then negotiated. Since there is no competition, this method is acceptable only when properly justified and should be viewed as an exception.


Question - 6

Which is the below selection method applies when the time and cost of a full selection process would not make sense because the value of the procurement is relatively small. The buyer establishes a short list and selects the bidder with the best credibility, qualifications, experience, expertise, areas of specialization, and references?

A. Least cost

B. Sole source

C. Fixed budget

D. Qualifications only


D is the correct answer. The qualifications only selection method applies when the time and cost of a full selection process would not make sense because the value of the procurement is relatively small. The buyer establishes a short list and selects the bidder with the best credibility, qualifications, experience, expertise, areas of specialization, and references.