Task 6 Plan and Manage Finance PMP Practice Questions (Page 5)

Questions 21–25

1. 21foundation · easy

   Which of the following is an example of engaging with the project governance structure for financial matters?

   • AUpdating the project schedule after a delay
   • BRequesting approval from the steering committee to use contingency reserves
   • CRecording actual costs in the accounting system
   • DPreparing a financial report for stakeholders
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   What is the purpose of anticipating future financial challenges in a project?

   • ATo track actual expenditures against the budget
   • BTo identify potential issues like cost overruns or funding shortfalls and plan proactive responses
   • CTo allocate contingency funds to specific risks
   • DTo define the format of financial reports
   Reveal Solution Discussion Select an answer first
4. 23foundation · easy

   Which of the following inputs is most directly used to quantify the total financial resources needed for a project?

   • AThe issue log and the change request log
   • BThe project scope statement and the work breakdown structure (WBS)
   • CThe stakeholder register and the communication management plan
   • DThe risk register and the risk management plan
   Reveal Solution Discussion Select an answer first
5. 24foundation · easy

   Which document typically specifies how contingency funds should be allocated to risks or work packages?

   • AThe stakeholder engagement plan
   • BThe procurement management plan
   • CThe schedule management plan
   • DThe risk management plan
   Reveal Solution Discussion Select an answer first
6. 25application · medium

   A project manager is managing a project that is currently on budget, but the market price for a key raw material has been volatile. The project uses a fixed-price contract with a supplier. What is the most proactive action to anticipate potential financial challenges?

   • AWait until the price actually increases before taking action.
   • BMonitor market trends and include a contingency reserve for potential price increases.
   • CReduce the project scope to avoid the risk.
   • DAssume the fixed-price contract protects the project from any price changes.
   Reveal Solution Discussion Select an answer first