CAPM Exam Questions to Prepare for Test Passing Score

CAPM Certification Exam Questions and Answers 

A certified associate project management (CAPM) certification helps you to gain a basic understanding of the project management concepts and terminology. CAPM certification helps all the aspiring persons who wish to pursue their career in project management. To take this certification, (requirements) you should have 1500 hours of project experience or 23 hours of project management education. To continue with certification, you must re-take the exam every five years.

We have collated best CAPM exam prep questions and answers as a quick recap before you appear for the real certification exam for the first time or when you re-take the exam. You can read sample Certified Associate in Project Management certification questions and answers along with an explanation for each answer, take CAPM test online by scheduling in your office or at home.

Exam details: CAPM

Exam name: CAPM

Duration: 180 minutes

No. of questions: 150

CAPM Passing score: 135/150

Validated against: PMI

Format: Multiple choice questions

CAPM Exam Cost: $ 300

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1.    Which of the following is not a part of the Executing process group?

•    Performing activities following the project management plan.

• Managing changes to the deliverables.

•    Work completion following the defined quality framework and specification.

•    Coordinating people and resources.

The executing process group (EPG) has processes to finish a work according to specifications. Managing changes is a part of integrated change control.

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2    Mention the correct calculation for the To-Complete Performance Index (TCPI) based on the Estimate At Completion (EAC)?

•    AC + (BAC – EV)

•    (BAC - EV)/(BAC - AC)

•    BAC/CPIcum

• (BAC - EV)/(EAC - AC)

The (BAC-EV)/ (EAC-AC) is the correct calculation for TCPI. TCPI is the future cost projection to complete remaining work and achieve management objectives.

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3    A Pareto diagram shows:

•    The important work that constitutes 80%.

•    An improvement in quality by implementing lean six sigma

•    A histogram ordered by frequency of occurrence.

•    The issues raised in work comprising of 20%.

Pareto diagram is a histogram which identifies defects generates in each category of cause to find the most appropriate remedy.

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4. Which of the following is not a part of Integrated Change Control?

•    Project management plan updates.

•    Expert judgment.

•    Change control meetings

•       Approval or rejection of changes by the change control board.

Expert judgment, change control board, and meetings are the tools and techniques used in integrated change control. Project management plan updates is an output of integrated change control.

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5. Which statement is not correct about the expected monetary value(EMV)?

• A Decision Tree Analysis is effective using net present values (NPV) in its calculations rather than EMV.

•    The Expected Monetary Value of an opportunity is generally a positive value.

•  The EVM is a statistical concept that calculates the average cost of a future situation obtained by multiplication of the value of each possible outcome by the probability of it occurring and summing the products.

•  The Expected Monetary Value of a threat is generally a negative value.

Decision tree analysis is based on EVM. Therefore the first point that decision tree analysis is useful with NPV is false.

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6. Co-location is a technique used to:

•  Gain effective control over the work of the project team.

• Improve the project team.

•  Define the organization structure.

•  Acquire the project team.

Co-location is placing the project team members in the same location for better project team performance.

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7    When managing a complex, cross-functional project; which of the following structures will give the project manager the most authority?

•    Balanced matrix.

•    Strong matrix

•    Functional.

•    Weak matrix.

A strong matrix provides functional and project structures and authorities to a project manager.

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8    State which of the following is not a characteristic of a Leadership in a project environment?

•    The focus of the efforts of a group of people on achieving a common objective.

•    Higher levels of respect and trust.

•    The skill to get the job done through others.

•    Leadership focusses on upward management and gets success by managing key stakeholders and external senior managers.

Leadership focus in a project environment will be on objectives, team management, and trust and respect among the team and with the management.   

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9. The project communication process includes which of the following in project communication management?

•    Gather communication components, Plan Communication, share information, and Control Communication process.

•    Identify relevant stakeholders, collect communication requirements, plan Communication, Disseminate relevant information, stakeholder expectation management, create reports.

•    Plan, manage and effectively control communications.

•    Collect information requirements, communications Management planning, Communications management, and Control Communications.

Communication management includes planning, managing and controlling communications.

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10. Work breakdown structure has the following.

•    The PMI Work Breakdown Structure and PRINCE2 product breakdown structure (PBS) are effectively the same things.

•    The Work Breakdown Structure is similar to the Organisational Breakdown Structure (OBS).

•    The WBS is a systematic breakdown of the total scope of work to be executed by the team members of a project.

•    The Work Breakdown Structure is the bill of materials (BoM) needed to accomplish the work of the project.

A WBS (work breakdown structure) is breaking down the work into small components which can be executed by the project team.

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11. Which one of the statement is not true about cost plus fixed fee (CPFF) contracts?

•    The reimbursement for all allowable costs incurred performing the contract work to the seller.

•    A seller gets a fixed payment which is a percentage of the initial estimated project cost.

•    The fee does not vary depending based on the performance of the seller.

•    A fixed percent of the actual project cost is given to the seller.

A CPFF contract pays a fixed fee to the seller and not on the performance of the seller.

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12. What should be the response of a project manager if the stakeholders as to add to scope? Moreover, the project sponsor declined the work before the charter was signed.

•    Tell the stakeholders the work cannot be combined.

•    The evaluation of the cost and time impact of the addition of the work

•       Add the job if it can be accommodated within the existing budget.

•    Discuss with the sponsor and let her know of the request.

The project manager has to be upfront in declining the work from the stakeholders.

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13    Analogous estimating, when applied to duration, is:

•    Based on expert judgment and is consequently more accurate than standard critical path estimating.

•    Analogous estimation is apt when there is a limited amount of detailed information available

•    A calculation based on a three-point estimate using a modified BETA distribution.

•    The same as ‘bottom up’ estimating.

Analogous estimation is a top-down technique used when there is little information available

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14. What is the code of accounts?

•    A system used to keep track of purchases and contracts?

•    Is any numbering system used to identify each component of the work breakdown structure uniquely?

•    Creates links between the work breakdown structure and the schedule task identifier.

•    Is the alpha-numeric reference used in the organizations' accounts system to identify cost centers?

A code of accounts is a unique number given to each of the components of the work break down structure.

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15. Procurement does not consist of one of the following. Which one?

•    Consideration of the changes in market conditions between the contract date and the current time.

•    Success or failure in a procurement process that deserves attention.

•    The procurement process from initial planning and administration of procurement.

•    The scope of improvements from the lessons learned that could be applied to future procurement processes.

A procurement audit will help to analyze and take actions in the conditions of market conditions and contract data and time.

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16. Which of the following is not a part of the Delphi technique characteristic?

•    Delphi technique eliminates bias and prevents any person from using undue influence.

•    Delphi technique helps experts to reach a consensus.

•    Delphi technique is an Oracle database application for optimizing outcomes of the future.

•    Delphi technique prevents Individual experts from knowing on the other participants in the process.

Oracle database application is not a part of the Delphi technique.

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17. A binding contract is created legally when:

•    Your senior management signs the formal contract documents.

•    When the contract is acceptable by your legal department

•    Official representatives of both parties sign the formal contract documents.

•    The contract has an offer, acceptance, performance, and consideration.

A contract to be enforced legally should contain an offer, acceptance, performance of the contract and consideration to perform the contract.

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18. Which is not applicable to the basic decision-making styles used by project managers?

•    Coin flip (random).

•    Command.

•    Consultation.

•    Rational choice theory

The rational choice theory helps to understand the social and economic behavior. It is not a part of the decision making styles of the project managers.

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19. FPIF is an acronym for:

•    Fixed Price Incentive Fee

•    Firm Price Incentive Free

•    Fixed Price Indicator Factor

•    Fast Performance Incentive Fee

FPIF stands for fixed price incentive fee.   

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20. One of the statements is not true about the Control Costs process.

•    Information on approved changes and the costs associated with the relevant stakeholders.

•    Influencing factors that impact changes in the in the authorized cost baseline.

•    Create a benchmark for cost performance.

•    Bring the expected cost overruns within acceptable limits.

A cost control baseline is a part of the budget control process. Hence, point 3 is not right.

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21. Which statement is not true about product and project life cycles

•    A product lifecycle is a subdivision of a project lifecycle.

•    A project life cycle has many phases. These phases are defined by the organization which is overlapping or sequential.

•    A product life-cycle has many stages which are defined by the organization.

•    Usually, a project lifecycle is contained within a product lifecycle.

A project lifecycle has many phases, and product lifecycle is a part of the project lifecycle.

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22. As part of successful communication, the receiver is responsible for:

•    The receiver should ensure that the information is precise and clear, complete and accepted.

•    The receiver should ensure the information is received in its entirety, understood correctly and acknowledged.

•    The receiver must ensure the information is clear and comprehensive, understood and agreed.

•    Listening actively to provide all of the information is received.

In the communication process, the receiver has to ensure that the message intended is received by the understood in the manner it is supposed to be.

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23. Management theories focused on motivation are developed by all except:

•    Maslow.

•    McGregor.

•    Hertzberg.

•    Deming.

Maslow developed a hierarchy of needs theory which is a motivational theory. Mc Gregor developed theory X and theory Y which is also a motivational theory. Hertzberg theory is hygiene theory which is also a motivational theory. Deming developed quality theory.

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24. What element is not a part of the project charter?

•    Project charter authorizes the start of a project or phase.

•    A project manager provides authority to the project manager to use resources and money on various project work.

•    A project charter defines work and requests bids or proposal for work defined.

•    A project charter is by a person who is responsible for the authorization, delegation of the project work. He can be an external person.

A project defines the start of the project, authorizes the project manager and signed by a person responsible for authorization of work.

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25. Which statement is not correct about the enterprise environmental factors (EEF)?

•    EEF does not include the organizations purchasing guidelines because the Accounts Department manages this type of function.

•    EEF includes the tools, systems and software that constitute the project management information system (PMIS).

•    EEF imbibes the culture, structure and processes of an organization.

•    EEF comprises all relevant laws, regulations and standards imposed by all levels of government, industry bodies and society.

The enterprise environmental factors include the internal factors and external factors impacting the project. Hence, purchase guidelines do not come under EEF (enterprise environmental factors).

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26. Identify the false statement about project scope

•    Project scope is an output of the Validate Scope process.

•    Project scope describes the project’s deliverables and the specific work needed to create them.

•    Project scope contains explicit scope exclusions that can assist in managing stakeholder expectations.

•    Project scope provides a common consensus of the project’s scope among the project’s stakeholders.

Once the project scope process is defined, the project scope statement is defined.

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27. One of the statements does not describe the cost of quality?

•    Buy professional indemnity insurance.

•    The cost of quality includes the cost of defects and rework caused by failing to achieve requirements.

•    The inspection and appraisal costs for conforming products produced by the project

. Prevent a non-conformance to requirements.

The cost of quality included cost of defects, cost of inspecting, and cost of non-conformance requirements. However, it does not include indemnity insurance.

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28. The responsibility assignment matrix (RAM) shows:

•    The links between activities and project team members.

•    The authority and responsibility delegation through the hierarchically organized management structure.

•    Accountabilities to assist in team performance appraisals.

•    The sequence of activities which a specific resource is responsible for accomplishing.

The RAM or the responsibility matrix demonstrates the relationships between project work activities and the project team members.

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29. Identify a statement which is not a characteristic of a Project management process groups?

•    All the process groups are required in all projects, and their interactions are imperative in all phases and the overall project.

•    The process groups rarely occur one time and overlap.  These are that arise throughout the project.

•    The process groups are necessary when a project is divided into phases.

•    The process groups are linked to the outputs they produce.

The project management process groups have to decide the most appropriate processes and appropriate rigour to apply to the process groups.

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30. Which of the following represent an optional dependency?

•   Not beginning the design work till all the approvals are received.

•    Wait for the specified 72 hours before stripping formwork from a newly poured concrete slab.

•    Apply a start-to-start link between two tasks in a PDM network.

•    Apply a lag of 4 days between two tasks.

A discretionary dependency represents best practices. A design should not begin till all the approvals are received, as it may impact the project. 

31. Which process group is a Control procurement a part of?

•          Planning
•          Execution
•          Monitoring and controlling
•          Closing

The control procurement is a part of monitoring and controlling process group

32. By developing a vision and strategy, and motivating and inspiring people to achieve vision and strategy is demonstration of which interpersonal skill?

A. Motivation

B. Leadership

C. Influencing the organization

D. Effective communication

Leadership involves motivating people to follow the vision and strategy of the organization.