CAPM practice questions and exam guide

The output of 'Develop Project Charter' is:

1. The project management plan
2. The risk register
3. The WBS
4. The project charter and assumption log

Answer: D — The project charter and assumption log

Develop Charter outputs: charter + assumption log. PM plan, WBS, risk register come from later planning processes. Half-right ITTO trap (missing the assumption log).

Contingency reserves are part of the cost baseline; management reserves are:

1. Also in the cost baseline
2. Outside the cost baseline but in the project budget
3. Outside the project budget entirely
4. Owned by the seller in fixed-price contracts

Answer: B — Outside the cost baseline but in the project budget

Contingency = known unknowns, in cost baseline. Management = unknown unknowns, outside baseline, inside total project budget, requires sponsor approval to draw on. Trick: 'outside' wording matters.

For 8 stakeholders, the number of communication channels is:

1. 8
2. 16
3. 28
4. 56

Answer: C — 28

Formula n(n-1)/2 = 8 × 7 / 2 = 28. Trick distractor 56 forgets to divide by 2. Common arithmetic trap.

A use case differs from a user story in that:

1. Use cases are shorter than user stories
2. Use cases describe actor-system interactions with steps; user stories are brief value statements
3. Use cases are agile-only
4. User stories must be approved by sponsors

Answer: B — Use cases describe actor-system interactions with steps; user stories are brief value statements

Use case = structured interaction model (actors, flows, alt paths). User story = brief value statement + acceptance criteria. Different artifacts, different detail levels.

Tailoring in PMBOK 7 means:

1. Following the methodology strictly without modification
2. Adapting processes, governance, and life cycle to project context
3. Switching to agile mid-project
4. Customizing only the procurement contracts

Answer: B — Adapting processes, governance, and life cycle to project context

Tailoring = deliberate adaptation to context (size, complexity, industry, culture). One of 12 principles. Opposite of one-size-fits-all approach. Frequent CAPM concept.

Which elicitation technique uses real-time interaction with multiple stakeholders simultaneously?

1. Document analysis
2. Surveys
3. Facilitated workshop
4. Observation

Answer: C — Facilitated workshop

Workshops/JAD = group elicitation, fast convergence. Document analysis = passive. Surveys = async. Observation = single. Off-by-one elicitation technique trap.

Which is the difference between a PROJECT and OPERATIONS?

1. Same thing
2. Both finite
3. Both ongoing
4. Project: temporary, has start/end, produces unique result; Operations: ongoing, repetitive, produces consistent output
5. Operations are unique

Answer: D — Project: temporary, has start/end, produces unique result; Operations: ongoing, repetitive, produces consistent output

PMI definition: project is temporary endeavor for unique result. Operations are ongoing activities. Some projects produce operational capability (e.g., build a factory → run it). CAPM D1 foundation.

Process flows and data flow diagrams are examples of:

1. Risk-analysis tools
2. Estimating techniques
3. Modeling techniques used in requirements analysis
4. Stakeholder-engagement tools

Answer: C — Modeling techniques used in requirements analysis

Process/data flow diagrams = analysis models to visualize as-is or to-be states. Standard BA techniques. Common technique-classification trap.

An assumption log is created:

1. During Develop Project Charter, then maintained throughout
2. Only at project close
3. By the sponsor at portfolio review
4. Never — assumptions go in the risk register

Answer: A — During Develop Project Charter, then maintained throughout

Assumption log created in Develop Charter, updated throughout. Tracks both assumptions AND constraints. Often becomes input to risk identification. Common timing/scope trap.

A project that delivers outputs but no measurable business benefit has FAILED on the PMBOK 7 principle of:

1. Stewardship
2. Tailoring
3. Value
4. Complexity

Answer: C — Value

Value principle: focus on outcomes/benefits, not just outputs. Outputs without value = waste. Central PMBOK 7 shift from deliverable-centric to value-centric thinking.

A 'work performance report' is created from:

1. Raw observations (work performance data)
2. Status reports submitted by team
3. Analyzed work performance information presented in a useful format
4. Sponsor decisions

Answer: C — Analyzed work performance information presented in a useful format

Data → Information → Reports flow. Data = raw measurements. Information = analyzed/contextualized. Reports = packaged for stakeholders. PMI tests the data-info-report distinction.

Critical Chain Method differs from Critical Path Method primarily by:

1. Eliminating dependencies
2. Adding resource constraints and buffers (project, feeding) instead of float
3. Ignoring schedule entirely
4. Replacing the WBS with user stories

Answer: B — Adding resource constraints and buffers (project, feeding) instead of float

Critical Chain = CPM + resource leveling + buffers (project buffer at end, feeding buffers at merges). Goldratt-based. CPM ignores resource conflicts. Common framework confusion.

What is the BABOK?

Business Analysis Body of Knowledge by IIBA. Defines knowledge areas, techniques, perspectives. Foundation for BA certifications.

What is TCPI (To-Complete Performance Index)?

Cost performance required to finish on budget. To meet BAC: (BAC−EV)/(BAC−AC). To meet EAC: (BAC−EV)/(EAC−AC). >1 means harder than current pace.

What is tailoring?

Adapting PM approach, processes, governance, and life cycle to project context. Recognizes one-size-doesn't-fit-all. Key principle in PMBOK 7.

What are the three constraints of the classic 'iron triangle'?

Scope, schedule (time), and cost. Quality is often the result. Modern view adds risk, resources, stakeholder satisfaction.

What are the four logical relationships in PDM?

FS (finish-to-start, most common), SS (start-to-start), FF (finish-to-finish), SF (start-to-finish, rare).

What is a WBS (Work Breakdown Structure)?

Hierarchical decomposition of total project scope into deliverables. Lowest level = work packages. Anything not in the WBS is not in the project.