Task 6 Plan and Manage Finance PMP Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   Which of the following is an example of a future financial challenge that a project manager should anticipate?

   • AThe approval of the project charter
   • BThe completion of a project deliverable
   • CA sudden increase in the price of a key raw material
   • DThe selection of a project management methodology
   Reveal Solution Discussion Select an answer first
2. 17application · medium

   A project manager notices that actual costs are 10% higher than planned at the end of the second month. The project is expected to last 10 months. What is the most appropriate first action?

   • AReduce the project scope to bring costs back in line.
   • BAnalyze the variance to determine the root cause before taking corrective action.
   • CImmediately request additional funds from the sponsor.
   • DIgnore the variance because it is only 10%.
   Reveal Solution Discussion Select an answer first
4. 18foundation · easy

   What is the purpose of managing contingency and management reserves?

   • ATo track actual expenditures against the budget
   • BTo quantify risks for contingency reserves
   • CTo define the content of financial reports
   • DTo control their release, usage, and replenishment according to governance policies
   Reveal Solution Discussion Select an answer first
5. 19expert · hard

   A project manager is defining a financial reporting plan for a multinational project. Stakeholders include the project sponsor (who wants a high-level summary), the finance department (who wants detailed cost breakdowns), and regulatory bodies in two countries (each with different reporting formats and deadlines). The project manager must balance the need for transparency with the risk of information overload. What is the best approach?

   • AProvide only the sponsor with a summary and let finance access the system directly, ignoring regulators.
   • BDevelop a standard internal report for the sponsor and finance, and create separate reports for each regulatory body.
   • CSend all reports to all stakeholders to ensure full transparency.
   • DCreate a single comprehensive report that includes all details and send it to all stakeholders.
   Reveal Solution Discussion Select an answer first
6. 20application · medium

   A project manager is planning a marketing campaign with a budget of $500,000. The scope includes digital ads, print materials, and event sponsorship. The schedule is 6 months. The project manager needs to determine the total financial resources required. What is the most comprehensive approach?

   • AUse the budget amount as the total financial requirement without further analysis.
   • BSum the costs of all activities, including labor, materials, and overhead, and add contingency for identified risks.
   • CEstimate only the direct costs of ads and materials.
   • DCalculate the costs based on the schedule duration only.
   Reveal Solution Discussion Select an answer first