Information Technology Project Management 8th Edition Kathy Schwalbe

True / False

1. Suppliers are those organizations or individuals who provide procurement services.

	a.	True
	b.	False

ANSWER:	True
RATIONALE:	Feedback: Organizations or individuals who provide procurement services are referred to as suppliers. Suppliers are also known as vendors, contractors, subcontractors, or sellers.
POINTS:	1
DIFFICULTY:	Difficulty: Easy
REFERENCES:	p.466
LEARNING OBJECTIVES:	INFO.SCHW.14.86 – LO: 12-1
NATIONAL STANDARDS:	United States – BUSPROG: Analytic
TOPICS:	The Importance of Project Procurement Management
KEYWORDS:	Bloom’s: Knowledge

2. While outsourcing, organizations should protect strategic information because it can become vulnerable in the hands of suppliers.

	a.	True
	b.	False

ANSWER:	True
RATIONALE:	Feedback: While outsourcing, organizations should be careful to protect strategic information that could become vulnerable in the hands of suppliers.
POINTS:	1
DIFFICULTY:	Difficulty: Moderate
REFERENCES:	p.469
LEARNING OBJECTIVES:	INFO.SCHW.14.86 – LO: 12-1
NATIONAL STANDARDS:	United States – BUSPROG: Technology
TOPICS:	The Importance of Project Procurement Management
KEYWORDS:	Bloom’s: Comprehension

3. Project procurement management consists primarily of two processes: assessing procurements and controlling procurements.

	a.	True
	b.	False

ANSWER:	False
RATIONALE:	Feedback: There are four main processes in project procurement management. These consist of planning procurement management, conducting procurements, controlling procurements, and closing procurements.
POINTS:	1
DIFFICULTY:	Difficulty: Easy
REFERENCES:	p.470
LEARNING OBJECTIVES:	INFO.SCHW.14.86 – LO: 12-1
NATIONAL STANDARDS:	United States – BUSPROG: Technology
TOPICS:	The Importance of Project Procurement Management
KEYWORDS:	Bloom’s: Knowledge

4. If an organization has no need to buy any products or services from outside the organization, then it has no need to perform any of the procurement management processes.

	a.	True
	b.	False

ANSWER:	True
RATIONALE:	Feedback: Planning procurements involves identifying which project needs can best be met by using products or services outside the organization. If there is no need to buy products or services from outside the organization, then further procurement management is not needed.
POINTS:	1
DIFFICULTY:	Difficulty: Moderate
REFERENCES:	p.471
LEARNING OBJECTIVES:	INFO.SCHW.14.87 – LO: 12-2
NATIONAL STANDARDS:	United States – BUSPROG: Analytic
TOPICS:	Planning Procurement Management
KEYWORDS:	Bloom’s: Comprehension

5. Risk registers and stakeholder registers are outputs of the planning procurement process.

	a.	True
	b.	False

ANSWER:	False
RATIONALE:	Feedback: The risk register and the stakeholder register are inputs for the planning procurement process. Other inputs needed for planning procurements include the project management plan, requirements documentation, activity resource requirements, the project schedule, and activity cost estimates, among others.
POINTS:	1
DIFFICULTY:	Difficulty: Easy
REFERENCES:	p.471
LEARNING OBJECTIVES:	INFO.SCHW.14.87 – LO: 12-2
NATIONAL STANDARDS:	United States – BUSPROG: Technology
TOPICS:	Planning Procurement Management
KEYWORDS:	Bloom’s: Knowledge

6. A single contract can include all three categories of contracts.

	a.	True
	b.	False

ANSWER:	True
RATIONALE:	Feedback: Three broad categories of contracts are fixed price or lump sum, cost reimbursable, and time and material. A single contract can include all three of these categories if it makes sense for a particular procurement.
POINTS:	1
DIFFICULTY:	Difficulty: Easy
REFERENCES:	p.471-472
LEARNING OBJECTIVES:	INFO.SCHW.14.87 – LO: 12-2
NATIONAL STANDARDS:	United States – BUSPROG: Technology
TOPICS:	Planning Procurement Management
KEYWORDS:	Bloom’s: Knowledge

7. Indirect costs are those costs can be traced back to a project in a cost-effective way.

	a.	True
	b.	False

ANSWER:	False
RATIONALE:	Feedback: Indirect costs are not directly related to the products or services of the project, but they are indirectly related to performing the project. Normally, these costs cannot be traced back to the project in a cost-effective way.
POINTS:	1
DIFFICULTY:	Difficulty: Moderate
REFERENCES:	p.472-473
LEARNING OBJECTIVES:	INFO.SCHW.14.87 – LO: 12-2
NATIONAL STANDARDS:	United States – BUSPROG: Analytic
TOPICS:	Planning Procurement Management
KEYWORDS:	Bloom’s: Comprehension

8. Buyers absorb lesser risk with cost-reimbursable contracts than they do with fixed-price contracts.

	a.	True
	b.	False

ANSWER:	False
RATIONALE:	Feedback: Cost-reimbursable contracts often include fees, such as a profit percentage or incentives for meeting or exceeding selected project objectives. Buyer absorb more of the risk with cost-reimbursable contracts than they do with fixed-price contracts.
POINTS:	1
DIFFICULTY:	Difficulty: Moderate
REFERENCES:	p.473
LEARNING OBJECTIVES:	INFO.SCHW.14.87 – LO: 12-2
NATIONAL STANDARDS:	United States – BUSPROG: Analytic
TOPICS:	Planning Procurement Management
KEYWORDS:	Bloom’s: Comprehension

9. The fee in a CPFF contract constantly varies even when the scope of a contract remains the same.

	a.	True
	b.	False

ANSWER:	False
RATIONALE:	Feedback: With a cost plus fixed fee (CPFF) contract, the buyer pays the supplier for allowable performance costs plus a fixed fee payment that is usually based on a percentage of estimated costs. This fee does not vary, however, unless the scope of the contract changes.
POINTS:	1
DIFFICULTY:	Difficulty: Moderate
REFERENCES:	p.474
LEARNING OBJECTIVES:	INFO.SCHW.14.87 – LO: 12-2
NATIONAL STANDARDS:	United States – BUSPROG: Analytic
TOPICS:	Planning Procurement Management
KEYWORDS:	Bloom’s: Comprehension

10. In unit pricing, the total value of the contract is a function of the quantities needed to complete the work.

	a.	True
	b.	False

ANSWER:	True
RATIONALE:	Feedback: Unit pricing can be used in various types of contracts to require the buyer to pay the supplier a predetermined amount per unit of product or service. The total value of the contract is a function of the quantities needed to complete the work.
POINTS:	1
DIFFICULTY:	Difficulty: Moderate
REFERENCES:	p.474
LEARNING OBJECTIVES:	INFO.SCHW.14.87 – LO: 12-2
NATIONAL STANDARDS:	United States – BUSPROG: Technology
TOPICS:	Planning Procurement Management
KEYWORDS:	Bloom’s: Comprehension

11. All contracts should include specific clauses that take into account issues unique to the project.

	a.	True
	b.	False

ANSWER:	True
RATIONALE:	Feedback: Any type of contract should include specific clauses that take into account issues unique to the project.
POINTS:	1
DIFFICULTY:	Difficulty: Easy
REFERENCES:	p.474
LEARNING OBJECTIVES:	INFO.SCHW.14.87 – LO: 12-2
NATIONAL STANDARDS:	United States – BUSPROG: Technology
TOPICS:	Planning Procurement Management
KEYWORDS:	Bloom’s: Knowledge

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	a.	True
	b.	False

ANSWER:	True
RATIONALE:	Feedback: Organizations or individuals who provide procurement services are referred to as suppliers. Suppliers are also known as vendors, contractors, subcontractors, or sellers.
POINTS:	1
DIFFICULTY:	Difficulty: Easy
REFERENCES:	p.466
LEARNING OBJECTIVES:	INFO.SCHW.14.86 – LO: 12-1
NATIONAL STANDARDS:	United States – BUSPROG: Analytic
TOPICS:	The Importance of Project Procurement Management
KEYWORDS:	Bloom’s: Knowledge

	a.	True
	b.	False

ANSWER:	True
RATIONALE:	Feedback: While outsourcing, organizations should be careful to protect strategic information that could become vulnerable in the hands of suppliers.
POINTS:	1
DIFFICULTY:	Difficulty: Moderate
REFERENCES:	p.469
LEARNING OBJECTIVES:	INFO.SCHW.14.86 – LO: 12-1
NATIONAL STANDARDS:	United States – BUSPROG: Technology
TOPICS:	The Importance of Project Procurement Management
KEYWORDS:	Bloom’s: Comprehension

	a.	True
	b.	False

ANSWER:	False
RATIONALE:	Feedback: There are four main processes in project procurement management. These consist of planning procurement management, conducting procurements, controlling procurements, and closing procurements.
POINTS:	1
DIFFICULTY:	Difficulty: Easy
REFERENCES:	p.470
LEARNING OBJECTIVES:	INFO.SCHW.14.86 – LO: 12-1
NATIONAL STANDARDS:	United States – BUSPROG: Technology
TOPICS:	The Importance of Project Procurement Management
KEYWORDS:	Bloom’s: Knowledge

	a.	True
	b.	False

ANSWER:	True
RATIONALE:	Feedback: Planning procurements involves identifying which project needs can best be met by using products or services outside the organization. If there is no need to buy products or services from outside the organization, then further procurement management is not needed.
POINTS:	1
DIFFICULTY:	Difficulty: Moderate
REFERENCES:	p.471
LEARNING OBJECTIVES:	INFO.SCHW.14.87 – LO: 12-2
NATIONAL STANDARDS:	United States – BUSPROG: Analytic
TOPICS:	Planning Procurement Management
KEYWORDS:	Bloom’s: Comprehension

	a.	True
	b.	False

ANSWER:	False
RATIONALE:	Feedback: The risk register and the stakeholder register are inputs for the planning procurement process. Other inputs needed for planning procurements include the project management plan, requirements documentation, activity resource requirements, the project schedule, and activity cost estimates, among others.
POINTS:	1
DIFFICULTY:	Difficulty: Easy
REFERENCES:	p.471
LEARNING OBJECTIVES:	INFO.SCHW.14.87 – LO: 12-2
NATIONAL STANDARDS:	United States – BUSPROG: Technology
TOPICS:	Planning Procurement Management
KEYWORDS:	Bloom’s: Knowledge

	a.	True
	b.	False

ANSWER:	True
RATIONALE:	Feedback: Three broad categories of contracts are fixed price or lump sum, cost reimbursable, and time and material. A single contract can include all three of these categories if it makes sense for a particular procurement.
POINTS:	1
DIFFICULTY:	Difficulty: Easy
REFERENCES:	p.471-472
LEARNING OBJECTIVES:	INFO.SCHW.14.87 – LO: 12-2
NATIONAL STANDARDS:	United States – BUSPROG: Technology
TOPICS:	Planning Procurement Management
KEYWORDS:	Bloom’s: Knowledge

	a.	True
	b.	False

ANSWER:	False
RATIONALE:	Feedback: Indirect costs are not directly related to the products or services of the project, but they are indirectly related to performing the project. Normally, these costs cannot be traced back to the project in a cost-effective way.
POINTS:	1
DIFFICULTY:	Difficulty: Moderate
REFERENCES:	p.472-473
LEARNING OBJECTIVES:	INFO.SCHW.14.87 – LO: 12-2
NATIONAL STANDARDS:	United States – BUSPROG: Analytic
TOPICS:	Planning Procurement Management
KEYWORDS:	Bloom’s: Comprehension

	a.	True
	b.	False

ANSWER:	False
RATIONALE:	Feedback: Cost-reimbursable contracts often include fees, such as a profit percentage or incentives for meeting or exceeding selected project objectives. Buyer absorb more of the risk with cost-reimbursable contracts than they do with fixed-price contracts.
POINTS:	1
DIFFICULTY:	Difficulty: Moderate
REFERENCES:	p.473
LEARNING OBJECTIVES:	INFO.SCHW.14.87 – LO: 12-2
NATIONAL STANDARDS:	United States – BUSPROG: Analytic
TOPICS:	Planning Procurement Management
KEYWORDS:	Bloom’s: Comprehension

	a.	True
	b.	False

ANSWER:	False
RATIONALE:	Feedback: With a cost plus fixed fee (CPFF) contract, the buyer pays the supplier for allowable performance costs plus a fixed fee payment that is usually based on a percentage of estimated costs. This fee does not vary, however, unless the scope of the contract changes.
POINTS:	1
DIFFICULTY:	Difficulty: Moderate
REFERENCES:	p.474
LEARNING OBJECTIVES:	INFO.SCHW.14.87 – LO: 12-2
NATIONAL STANDARDS:	United States – BUSPROG: Analytic
TOPICS:	Planning Procurement Management
KEYWORDS:	Bloom’s: Comprehension

	a.	True
	b.	False

ANSWER:	True
RATIONALE:	Feedback: Unit pricing can be used in various types of contracts to require the buyer to pay the supplier a predetermined amount per unit of product or service. The total value of the contract is a function of the quantities needed to complete the work.
POINTS:	1
DIFFICULTY:	Difficulty: Moderate
REFERENCES:	p.474
LEARNING OBJECTIVES:	INFO.SCHW.14.87 – LO: 12-2
NATIONAL STANDARDS:	United States – BUSPROG: Technology
TOPICS:	Planning Procurement Management
KEYWORDS:	Bloom’s: Comprehension

	a.	True
	b.	False

ANSWER:	True
RATIONALE:	Feedback: Any type of contract should include specific clauses that take into account issues unique to the project.
POINTS:	1
DIFFICULTY:	Difficulty: Easy
REFERENCES:	p.474
LEARNING OBJECTIVES:	INFO.SCHW.14.87 – LO: 12-2
NATIONAL STANDARDS:	United States – BUSPROG: Technology
TOPICS:	Planning Procurement Management
KEYWORDS:	Bloom’s: Knowledge

Reviews (0)

Information Technology Project Management 8th Edition Kathy Schwalbe