Chapter 12 - Project Procurement Management Part 2

Chapter 12 - Project Procurement Management 20. The contractual relationship is a legal relationship, which means it is subject to state and federal contract laws. a. True b. Fals e ANSWER: True RATIONALE: Feedback: Controlling procurements ensures that the seller’s performance meets contractual requirements. The contractual relationship is a legal relationship, which means it is subject to state and federal contract laws. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.527 : QUESTION TYTrue / False PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.89 - LO: 12-4 BJECTIVES: NATIONAL STUnited States - BUSPROG: - Comprehension ANDARDS: TOPICS: Controlling Procurements KEYWORDS: Bloom's: Knowledge 21. The closing procurements process involves updating records to reflect final results and archiving information for future use. a. True b. Fals e ANSWER: True RATIONALE: Feedback: The final process in project procurement management is closing procurements. This process involves determining if all work required in each contract was completed correctly and satisfactorily. The team should also update records to reflect final results and archive information for future use. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.528 : QUESTION TY True / False Page 12 Chapter 12 - Project Procurement Management PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.90 - LO: 12-5 BJECTIVES: NATIONAL STUnited States - BUSPROG: - Comprehension ANDARDS: TOPICS: Closing Procurements KEYWORDS: Bloom's: Knowledge 22. Procurement audits are often done during contract closure to identify lessons learned in the entire procurement process. a. True b. Fals e ANSWER: True RATIONALE: Feedback: Procurement audits are often done during contract closure to identify lessons learned in the entire procurement process. Organizations should strive to improve all of their business processes, including procurement management. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.528 : QUESTION TYTrue / False PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.90 - LO: 12-5 BJECTIVES: NATIONAL STUnited States - BUSPROG: - Comprehension ANDARDS: TOPICS: Closing Procurements KEYWORDS: Bloom's: Knowledge Multiple Choice 23. 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 benefit does this characteristic of outsourcing provide an organization? Page 13 Chapter 12 - Project Procurement Management a. reduces focus on its core b. increases control over all aspects of projects that business suppliers carry out. c. provides access to d. reduces dependency on suppliers specific skills ANSWER: c RATIONALE: Feedback: Organizations can gain access to specific skills and technologies by using outside resources. POINTS: 1 DIFFICULTY: Difficulty: Moderate REFERENCES: p.508 QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJEC INFO.SCHW.14.86 - LO: 12-1 TIVES: NATIONAL STAND United States - BUSPROG: Analytic ARDS: The Importance of Project Procurement Management TOPICS: Bloom's: Comprehension KEYWORDS: 24. Outsourcing suppliers can often provide economies of scale, especially for hardware and software, that may not be available to the client alone. Which benefit does this offer an organization? a. reduction in costs b. increased flexibility c. increased d. access to specific skills accountability ANSWER: a RATIONALE: Feedback: Companies can use outsourcing to reduce labor costs on projects by avoiding the costs of hiring, firing, and reassigning people to projects or paying their salaries when they are between projects. Outsourcing suppliers often can provide economies of scale that may not be available to the client alone, especially for hardware and software. POINTS: 1 DIFFICULTY: Difficulty: Moderate REFERENCES p.508 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.86 - LO: 12-1 BJECTIVES: NATIONAL STUnited States - BUSPROG: Analytic ANDARDS: TOPICS: The Importance of Project Procurement Management KEYWORDS: Bloom's: Comprehension Page 14 Chapter 12 - Project Procurement Management 25. 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 benefit does outsourcing primarily provide in such a scenario? a.reduces fixed and recurrent costs b.protects strategic information from being accessible to external suppliers d.helps focus on an organization’s core business c.increases accountability even without a written contract ANSWER: d RATIONALE: Feedback: By outsourcing many IT functions, employees can focus on jobs that are critical to the success of the organization. POINTS: 1 DIFFICULTY: Difficulty: Moderate REFERENCES: p.509 QUESTION TYP Multiple Choice E: HAS VARIABLESFalse : LEARNING OBJ INFO.SCHW.14.86 - LO: 12-1 ECTIVES: NATIONAL STANUnited States - BUSPROG: Analytic DARDS: TOPICS: The Importance of Project Procurement Management KEYWORDS: Bloom's: Comprehension 26. 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 advantages does this characteristic of outsourcing provide organizations? a.offers control over all aspects of projects that b.provides flexibility suppliers carry out c.shifts accountability from external suppliers d.helps avoid any form of to internal staff dependency on suppliers ANSWER: b RATIONALE: Feedback: Outsourcing to provide extra staff during periods of peak workloads can be much more economical than trying to staff entire projects with internal resources. Many companies cite better flexibility in staffing as a key reason for outsourcing. POINTS: 1 DIFFICULTY: Difficulty: Moderate Page 15 Chapter 12 - Project Procurement Management REFERENCES p.509 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.86 - LO: 12-1 BJECTIVES: NATIONAL STUnited States - BUSPROG: Analytic ANDARDS: TOPICS: The Importance of Project Procurement Management KEYWORDS: Bloom's: Comprehension 27. What is one drawback of outsourcing? a.it does not provide access to specific b.it invariably results in an increase in skills or technologies both fixed and recurrent costs c.it can make an organization become d.it cannot increase accountability of overly dependent on particular suppliers. suppliers through a written contract ANSWER: c RATIONALE: Feedback: An organization can become too dependent on particular suppliers. If those suppliers went out of business or lost key personnel, it could cause great damage to a project. POINTS: 1 DIFFICULTY: Difficulty: Moderate REFERENCES p.509 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.86 - LO: 12-1 BJECTIVES: NATIONAL STUnited States - BUSPROG: Analytic ANDARDS: TOPICS: The Importance of Project Procurement Management KEYWORDS: Bloom's: Comprehension 28. What is the first step in project procurement management? a. closing procurement b. controlling procurements. Page 16 Chapter 12 - Project Procurement Management management. c. conducting procurements. d. planning procurement management. ANSWER: d RATIONALE: Feedback: The process of planning procurement management involves determining what to procure and when and how to do it. This is the first step of project procurement management. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.510 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.86 - LO: 12-1 BJECTIVES: NATIONAL STUnited States - BUSPROG: - Comprehension ANDARDS: TOPICS: The Importance of Project Procurement Management KEYWORDS: Bloom's: Knowledge 29. In project procurement management, which process involves determining what to procure, when, and how? a. closing procurements b. controlling procurements c. conducting d. planning procurement management procurements ANSWER: d RATIONALE: Feedback: The process of planning procurement management involves determining what to procure and when and how to do it. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.510 QUESTION TYP Multiple Choice E: HAS VARIABLESFalse : LEARNING OBJ INFO.SCHW.14.86 - LO: 12-1 ECTIVES: NATIONAL STA United States - BUSPROG: - Comprehension NDARDS: TOPICS: The Importance of Project Procurement Management KEYWORDS: Bloom's: Knowledge Page 17 Chapter 12 - Project Procurement Management 30. In project procurement management, which process involves obtaining seller responses, selecting sellers, and awarding contracts? a. conducting b. closing procurements procurements c. settling contracts d. planning procurement management ANSWER: a RATIONALE: Feedback: The process of conducting procurements involves obtaining seller responses, selecting sellers, and awarding contracts. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.510 QUESTION TYP Multiple Choice E: HAS VARIABLE False S: LEARNING OBJ INFO.SCHW.14.86 - LO: 12-1 ECTIVES: NATIONAL STA United States - BUSPROG: - Comprehension NDARDS: TOPICS: The Importance of Project Procurement Management KEYWORDS: Bloom's: Knowledge E 31. Outputs of the _____ process consist of selected sellers and change requests. a. closing procurements b. conducting procurements c. planning procurement d. controlling procurements management ANSWER: b RATIONALE: Feedback: Conducting procurements involves obtaining seller responses, selecting sellers, and awarding contracts. Outputs include selected sellers, agreements, change requests, and updates to the project management plan and other project documents. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.510-511 : QUESTION TYMultiple Choice PE: HAS VARIABL False Page 18 Chapter 12 - Project Procurement Management ES: LEARNING O INFO.SCHW.14.91 - LO:12-1 BJECTIVES: NATIONAL STUnited States - BUSPROG: - Comprehension ANDARDS: TOPICS: The Importance of Project Procurement Management KEYWORDS: Bloom's: Knowledge 32. Which process of project procurement management involves managing relationships with sellers, monitoring contract performance, making changes as needed, and closing contracts? a. negotiating procurements b. settling contracts c. deciding on the services to d. controlling procurements procure ANSWER: d RATIONALE: Feedback: The process of controlling procurements involves managing relationships with sellers, monitoring contract performance, making changes as needed, and closing contracts. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.511 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.86 - LO: 12-1 BJECTIVES: NATIONAL STUnited States - BUSPROG: - Comprehension ANDARDS: TOPICS: The Importance of Project Procurement Management KEYWORDS: Bloom's: Knowledge ED: 33. In project procurement management, which process involves completion and settlement of each contract, including resolution of any open items? a. planning procurement b. controlling procurements management c. negotiating procurements d. conducting procurements ANSWER: b RATIONALE: Feedback: The process of controlling procurements involves closing and Page 19 Chapter 12 - Project Procurement Management completion and settlement of each contract or agreement, including resolution of any open items. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.528 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.86 - LO: 12-1 BJECTIVES: NATIONAL STUnited States - BUSPROG: - Comprehension ANDARDS: TOPICS: The Importance of Project Procurement Management KEYWORDS: Bloom's: Knowledge 34. The procurement statements of work are an output of the _____ process of project procurement management. a. planning b. executing c. monitoring and d. closing controlling ANSWER: a RATIONALE: Feedback: The procurement statements of work are an output of the planning process of project procurement management. Other outputs of the process include the procurement management plan, procurement documents and source selection criteria. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.510 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.87 - LO: 12-2 BJECTIVES: NATIONAL STUnited States - BUSPROG: - Comprehension ANDARDS: TOPICS: Planning Procurement Management KEYWORDS: Bloom's: Knowledge Page 20