You are the project manager of GHT project. During the data extraction process, you evaluated the total number of transactions per year by multiplying the monthly average by twelve. This process of evaluating total number of transactions is known as?

• A.Duplicates test
• B.Controls total
• C.Simplistic and ineffective
• D.Reasonableness test

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Billy is the project manager of the HAR Project and is in month six of the project. The project is scheduled to last for 18 months.
Management asks Billy how often the project team is participating in risk reassessment in this project. What should Billy tell management if he's following the best practices for risk management?

• A.Project risk management has been concluded with the project planning.
• B.Project risk management happens at every milestone.
• C.Project risk management is scheduled for every month in the 18-month project.
• D.At every status meeting the project team project risk management is an agenda item.
• E.Explanation:
  Risk management is an ongoing project activity. It should be an agenda item at every project
  status meeting.
• F.is incorrect. Milestones are good times to do reviews, but risk management should
  happen frequently.
• G.is incorrect. This answer would only be correct if the project has a status meeting just
  once per month in the project.

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While evaluating control costs, management discovers that the annual cost exceeds the annual loss expectancy (ALE) of the risk. This indicates the:

• A.risk is inefficiently controlled.
• B.risk is efficiently controlled.
• C.control is weak and should be removed.
• D.control is ineffective and should be strengthened

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You work as a project manager for BlueWell Inc. Your project is using a new material to construct a large warehouse in your city. This new material is cheaper than traditional building materials, but it takes some time to learn how to use the material properly. You have communicated to the project stakeholders that you will be able to save costs by using the new material, but you will need a few extra weeks to complete training to use the materials. This risk response of learning how to use the new materials can also be known as what term?

• A.Benchmarking
• B.Cost-benefits analysis
• C.Cost of conformance to quality
• D.Team development

Correct Answer: C

Explanation/Reference:
Explanation:
When the project team needs training to be able to complete the project work it is a cost of conformance to quality.
The cost of conformance to quality defines the cost of training, proper resources, and the costs the project must spend in order to ascertain the expected levels of quality the customer expects from the project. It is the capital used up throughout the project to avoid failures. It consists of two types of costs:
Prevention costs: It is measured to build a quality product. It includes costs in training, document

processing, equipment, and time to do it right.
Appraisal costs: It is measured to assess the quality. It includes testing, destructive testing loss, and

inspections.
Incorrect Answers:
A: Benchmarking compares any two items, such as materials, vendors, or resources.
B: Cost-benefit analysis is the study of the benefits in relation to the costs to receive the benefits of a decision, a project, or other investment.
D: Team development describes activities the project manager uses to create a more cohesive and responsive project team.

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Which of the following is the PRIMARY purpose of periodically reviewing an organization's risk profile?

• A.Design and implement risk response action plans
• B.Align business objectives with risk appetite
• C.Enable risk-based decision making
• D.Update risk responses in the risk register

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