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

Questions 26–30

1. 26application · medium

   A project has a contingency reserve of $80,000. A risk event occurs, and the project manager uses $30,000 from the contingency reserve to cover the cost. The risk is now closed. What should the project manager do next?

   • ATransfer the remaining $50,000 to management reserve.
   • BReplenish the contingency reserve to $80,000 if the risk management plan allows.
   • CRequest additional funds from the sponsor immediately.
   • DDo nothing and continue with the remaining $50,000.
   Reveal Solution Discussion Select an answer first
2. 27application · medium

   A project manager needs to define a financial reporting plan for a project with multiple stakeholders: the project sponsor, the finance department, and external regulators. The sponsor wants a high-level summary monthly; finance wants detailed cost breakdowns weekly; regulators require quarterly compliance reports. What is the best approach?

   • AProvide only the sponsor with monthly reports and let finance access the project management system directly.
   • BCreate a single comprehensive report that satisfies all stakeholders and distribute it weekly.
   • CSend all reports to all stakeholders to ensure transparency.
   • DDevelop separate reports tailored to each audience: monthly summary for sponsor, weekly detailed for finance, quarterly compliance for regulators.
   Reveal Solution Discussion Select an answer first
4. 28foundation · easy

   What is the primary purpose of conducting a financial needs analysis for a project?

   • ATo compare actual expenditures against the budget to identify variances
   • BTo define the format and schedule of financial reports for stakeholders
   • CTo identify and quantify the total financial resources required based on scope, schedule, and resource requirements
   • DTo allocate contingency reserves to specific work packages
   Reveal Solution Discussion Select an answer first
5. 29expert · hard

   A project manager is monitoring financial performance and notices that the cost performance index (CPI) is 0.9, and the schedule performance index (SPI) is 1.1. The project is behind on cost but ahead on schedule. The project sponsor is concerned about the cost overrun. What is the most appropriate action?

   • AImmediately reduce the project scope to bring costs down.
   • BIgnore the cost variance because the project is ahead of schedule.
   • CInvestigate the cause of the cost variance and determine if it is a one-time event or a trend.
   • DRequest additional funds from the sponsor to cover the overrun.
   Reveal Solution Discussion Select an answer first
6. 30foundation · easy

   Which element is typically included in a spend tracking plan?

   • AThe criteria for releasing management reserves
   • BThe format of the final project report
   • CThe risk response strategies for identified risks
   • DThe frequency of cost reviews and the methods used to record actual costs
   Reveal Solution Discussion Select an answer first