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PMI CAPM Exam - Cheat-Test.com

Free CAPM Sample Questions:

Question1:
Which of the following statements are false regarding the staffing management plan?
(A) The staffing management plan should address staff acquisition, timetables, and release criteria.
(B) The staffing management plan is an output of the Develop Project Team process
(C) The staffing management plan describes when and how human resource requirements will be satisfied
(D) The staffing management plan is updated continually during the project
Answer:
(B) The staffing management plan is an output of the Develop Project Team process
Explanation: The staffing management plan describes when and how human resource requirements wil be satisfied and is an output of the Human Resource Planning process. "The staffing management plan lists the time periods that team members are expected to work, along with information such as training plans, certification requirements, and compliance issues." The staffing management plan is updated continual y during the project and addresses staff acquisition, timetables, and release criteria.References: PMBOK 3rd Edition, 9.1.3.3

Question2:
You are the project manager at a biotech company where you are responsible for developing treatments for diabetes. George is your Chief Scientist. Over the past few years, George has helped the company develop various patents and technologies with regards to treating diabetes. To say the least, George is critical to the company's success.
Lately, George has been demanding a 50% increase in his salary. He is threatening to leave the company if he does not receive a salary increase. Which type of power is George yielding in order to get his pay increase?
(A) referent power
(B) legitimate power
(C) coercive power
(D) punishment power
(E) expert power
Answer:
(E) expert power
Explanation: Expert power derives from group members' assumption that the powerholder possesses superior skills and abilities. When a person is highly knowledgeable on a particular subject, and has special skills and abilities that make him an expert in their respective area, he / she can use expert power to influence decisions.On the other hand, legitimate power is that which is invested in a role. Legitimate power stems from an authority's legitimate right to require and demand compliance. Functional managers, especialy Vice Presidents, have legitimate power. The legitimacy comes as a result of the influencer's position.On the other hand, referent power is based on group members' identification with, attraction to, or respect for, the powerholder. As with reference groups, group members gain a sense of intrinsic personal satisfaction from identification with the referent powerholder.Charismatic leaders generaly possess both legitimate and referent power. For instance, if Jack admires or respects Jil highly, he may fol ow her because of Jil's personal qualities, characteristics, or reputation. Jil uses referent power to influence Jack.

Question3:
You have just awarded a contract to a outside vendor and developed the corresponding contract management plan. Which process did you just complete?
(A) Contract Administration
(B) Plan Contracting
(C) Plan Purchases and Acquisitions
(D) Request Sellers
(E) Select sellers
Answer:
(E) Select Sellers
Explanation: The contract and contract management plan are outputs of the Select sellers process.

Question4:
Which of the following statements are FALSE regarding the Resource Calendar?
(A) The Resource Calendar identifies the quantity of each resource available during each availability period.
(B) None of the choices are correct
(C) The Resource Calendar documents working days and nonworking days
(D) The Resource Calendar provides a hierarchical structure of the identified resources by resource category and resource type
(E) The Resource Calendar describes the availability, capability, and skil s of human resources
Answer:
(D) The Resource Calendar provides a hierarchical structure of the identified resources by resource category and resource type
Explanation: The Resource Calendar describes the availability, capability, and skil s of human resources and identifies the quantity of each resource available during each availability period. The Resource Calendar documents working days and nonworking days.On the other hand, the Resource Breakdown Structure (RBS) provides a hierarchical structure of the identified resources by resource category and resource type.References: PMBOK 3rd Edition, Section 6.3.3

Question5:
According to the PMI, application areas are categories of projects that have common elements in the majority of projects, but are NOT necessarily required or applicable to al projects.
Application areas are NOT usual y defined in terms of:
(A) Functional departments and supporting disciplines
(B) Industry groups
(C) Technical elements
(D) Deliverables
(E) Management specializations
Answer:
(D) Deliverables
Explanation: According to the PMI, application areas are usually defined in terms of:
functional departments and supporting disciplines - marketing, legal, manufacturing, ...
technical elements - bio-engineering, software development, ...
management specializations - government contracting, community development...
industry groups - aerospace, automotive, ...References: PMBOK 3rd Edition, Section 1.5.2

Question6:
Which of the following statements are false regarding Project Risk Management?
(A) Risk Monitoring and Control - track identified risks, monitor residual risks, execute risk response plans
(B) Risk Response Planning - develop actions to identified risks to reduce threats
(C) Risk Identification - identify and document project risks
(D) Risk Management Planning - decide how to plan and execute risk management activities
(E) Quantitative Risk Analysis - prioritize risks by their impact and probability of occurrence
Answer:
(E) Quantitative Risk Analysis - prioritize risks by their impact and probability of occurrence
Explanation: Risk Management Planning - decide how to plan and execute risk management activities
Risk Identification - identify and document project risks
Qualitative Risk Analysis - prioritize risks by their impact and probability of occurrence
Quantitative Risk Analysis - numerically analyze identified risks
Risk Response Planning - develop actions to identified risks to reduce threats
Risk Monitoring and Control - track identified risks, monitor residual risks, execute risk
response plans

Question7:
Which of the following statements are false regarding the Close Project process?
(A) The Close Project process establishes the procedures to verify and document the project deliverables
(B) The Close Project process documents the reasons for actions taken if a project is terminated early.
(C) The output of the Close Project process includes two procedures: administrative closure procedure and contract closure procedure.
(D) In multi-phase projects, the Close Project process closes out the associated activities applicable to a given project phase.
(E) The Close Project process formalizes acceptance of the completed project deliverables
Answer:
(E) The Close Project process formalizes acceptance of the completed project deliverables
Explanation: The Close Project process involves finalizing al activities across al of the process groups in order to formally close a project or a project phase. The process establishes the procedures to verify and document the project deliverables and records the reasons for actions taken if a project is terminated early. The output of the Close Project process includes two procedures: administrative closure procedure and contract closure procedure. In multi-phase projects, the Close Project process closes out the associated activities applicable to a given project phase.On the other hand, scope verification formalizes acceptance of the completed project deliverables.

Question8:
You are the project manager at a large accounting firm in the United States. Throughout the year, your firm provides both consulting services and accounting / auditing services to XYZ Widgets, Inc, a publicly traded company listed on the New York Stock Exchange. Currently, your project involves auditing the financial statements of XYZ Widgets Inc, in preparation for the annual shareholders / investors meeting.While your team is in the midst of project execution, you are informed that your project is cancel ed due to new SEC regulations. Specifical y, a new SEC regulation prohibits accounting firms from providing both consulting services and auditing services to a client, due to potential conflicts of interest that could arise from such business relationships.Hence, your project is cancel ed and your project team consisting of accountants and auditors are taken off your project and reassigned to another project. Which of the following types of project ending is this considered?
(A) addition
(B) cancel ation
(C) integration
(D) starvation
(E) extinction
Answer:
(C) integration
Explanation: There are four types of project endings: addition, extinction, integration, and
starvation.Integration occurs when the resources (personnel, equipment, property, etc) of the project are reassigned to other areas within the organization or other projects.Addition occurs when a project evolves into ongoing operations.Starvation occurs when resources are removed from the project, such as due to funding / resource cuts. The difference between integration and starvation is that starvation results in resource cuts, while integration results in redeployment of resources.Lastly, extinction occurs when the project end because it was completed successfully and accepted by stakeholders.In this example, since your project team members are reassigned to other projects, your project ended as a result of integration.

Question9:
Assuming a triangular distribution, what is the standard deviation of the duration estimates based on the following three-point estimates:
pessimistic = 100 days
optimistic = 40 days
most likely = 65 days
(A) 151.4
(B) 12.3
(C) 65
(D) 15.8
(E) 68.33
Answer:
(B) 12.3
Explanation: Standard deviation is calculated by taking the square-root of the variance.In a triangular distribution, the variance is calculated as fol ows:variance = [(optimistic - pessimistic)^2 + (most likely - pessimistic) * (most likely - optimistic)]
/ 18= ((100-40)^2 + (65-100)*(65-40)) / 18= (3600 - 875) / 18= 151.3888standard deviation = square-root (variance)= square-root (151.3888)= 12.3

Question10:
Activity lists, activity attributes, and milestone lists are outputs of which of the following processes?
(A) Activity definition
(B) Activity sequencing
(C) Schedule development
(D) Activity duration estimating
Answer:
(A) Activity definition
Explanation: Activity list, activity attributes, and milestone lists are outputs of the Activity Definition process.

Question11:
You are the project manager for a new software development project. You are in the process of
assigning resources to your project using a work authorization system. Which of the following
statements are FALSE?
(A) A work authorization system should balance the value of control versus with the cost of that control
(B) A work authorization system is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team
(C) A work authorization system is a formal procedure for sanctioning project work
(D) A work authorization system is used to clarify and initiate work for a specific activity or work package
Answer:
(B) A work authorization system is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team
Explanation: A work authorization system is a formal procedure for sanctioning project work. A work authorization system is used to clarify and initiate work for a specific activity or work package. A work authorization system should balance the value of control versus with the cost of that control. On the other hand, the WBS is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team

Question12:
Which of the following best describes the Request seller Responses process?
(A) Request Seller Responses involves the application of evaluation criteria to select a vendor
(B) Request seller Responses involves ensuring that the vendor meets the specified contractual
requirements
(C) Request seller Responses involves obtaining bids and proposals from prospective vendors.
(D) Request seller Responses involves identifying whether to procure products / services from an outside vendor.
Answer:
(C) Request seller Responses involves obtaining bids and proposals from prospective vendors.
Explanation: Request seller Responses involves letting the vendors know your needs and requirements, and obtaining bids and proposals from prospective vendors.

Question13:
All of the following statements are true EXCEPT:
(A) Budget updates are a special category of revised cost estimates
(B) The cost change control system is an input to the Cost Control process.
(C) If cost variances are severe, rebaselining may be necessary in order to provide a better measure of performance
(D) Revised cost estimates are modifications to the cost information used to manage the project.
Answer:
(B) The cost change control system is an input to the Cost Control process.
Explanation: Revised cost estimates are modifications to the cost information used to manage the project.
Budget updates are a special category of revised cost estimates and are general y in response to approved scope changes. If cost variances are severe, rebaselining may be necessary in order to provide a better measure of performance.However, the cost change control system is a tool /technique of the Cost Control process, NOT an input.

Question14:
Al of the following statements are true regarding the Activity Duration Estimating process EXCEPT:
(A) Analogous estimating is a form of expert judgment that is used as a tool / technique in Activity Duration Estimating
(B) Activity duration estimates should always include some indication of a range of possible results.
(C) Activity duration estimates are an output of Activity Duration Estimating
(D) Precedence diagramming methods are a tool / technique of Activity Duration Estimating
Answer:
(D) Precedence diagramming methods are a tool / technique of Activity Duration Estimating
Explanation: Activity Duration Estimating is the process of taking the activities defined in the WBS and activity list, and then developing the durations for input to schedules. Activity duration estimates should always include some indication of a range of possible results.The tools / techniques of the Activity Duration Estimating process are: expert judgement, analagous
estimating, parametric estimating, three-point analysis, reserve analysis. The outputs of Activity
Duration Estimating are: activity duration estimates, activity attribute updates.Analogous estimating is a form of expert judgment that is used as a tool / technique in Activity Duration
Estimating. Precendence diagramming methods are a tool /technique of Activity Sequencing, NOT
Activity Duration Estimating.

Question15:
You are currently the project manager at a rapidly growing retailer of high-end electronics equipment. You have been tasked with a project of expanding the business overseas into the growing Asian market. You are currently evaluating opening retail stores in one of three locations: Beijing, Shanghai, and Hong Kong. You have been told that the Beijing market has a smal er market potential, but higher probabilities of success. On the other hand, the Hong Kong market has a larger market potential, but a lower probability of success. And the Shanghai market is in between. Your project team member has given you the following forecasts . Which of the following statements are TRUE?
(A) You should select Hong Kong, as it provides provides the highest expected monetary value
(B) You should select Shanghai, as it provides the highest expected monetary value
(C) You should use multi-objective programming algorithms to determine which location to select
(D) None of the statements are true
(E) You should select Beijing, as it provides the highest expected monetary value
Answer:
(E) You should select Beijing, as it provides the highest expected monetary value
Explanation:
Decision Analysis is a technique used to aid decision-making under conditions of uncertainty by
systematical y representing and examining al of the relevant information for a decision and the
uncertainty around that information. The available choices are plotted on a decision tree, which is a graph of decisions and their possible consequences, including resource costs and risks. Decision trees help to form a balanced picture of the risks and rewards associated with each possible course of action, and are tools / techniques of the Quantitative Risk Analysis process.
Based on the forecasts , a decision tree can be constructed as follows:The squares represents the decisions that can be made, such as whether to choose Beijing, Shanghai, or Hong Kong as the next retail site. The circles represents the uncertain outcomes, such as whether the project will succeed or fail given a particular decision. Notice for each uncertainty point, the probability
of the outcome is written next to the node.
Next, the cash value for each outcome needs to be estimated. Specifically, in this example , the NPV (net present value) describes the time-discounted profit for each particular outcome, given the estimated forecast over the 3-year period.Lastly, to calculate the value of the uncertain outcomes, multiply the value of the outcomes by their probabilities. The total for a particular decision is the sum of these values, which is considered the expected monetary value (EMV) for a particular decision.
Specifically, "EMV is calculated by multiplying the value of each possible outcome by its probability of occurrence, and adding them together." For example, the expected monetary values (EMV) associated with each decision is calculated as fol ows:
Beijing = (0.7 * 481.59) + (-248.69 * 0.3) = $262.51
Shanghai = (0.5 * 730.28) + (-248.69 * 0.5) = $240.80
Hong Kong = (0.3 * 963.19) + (-248.69* 0.7) = $114.88
In this example, since Beijing yields the highest expected monetary value, the company's best course of action should be to expand into the Beijing market. The results are summarized below.

Question16:
Negotiation, preassignment, and acquisition are tools and techniques of which of the following processes?
(A) Human Resource Planning
(B) None of the choices are correct
(C) Acquire Project Team
(D) Develop Project Team
Answer:
(C) Acquire Project Team
Explanation: The tools and techniques of Acquire Project Team are: negotiation, preassignment, and acquisition.

Question17:
Project records, project reports, and project presentations are outputs of which of the following processes?
(A) Manage Stakeholders
(B) communications planning
(C) performance reporting
(D) information distribution
Answer:
(D) information distribution
Explanation: Project records, project reports, and project presentations are outputs the Information Distribution process, as part of the Organizational Process Assets updates.

Question18:
The risk management plan is a subset of the project management plan and describes how risk
management should be performed. Al of the following should be included in the risk management plan
EXCEPT:
(A) recommended preventive measures
(B) P-I matrix
(C) budgeting, timing, risk categories
(D) methodology, roles and responsibilities
(E) stakeholder tolerances, reporting formats
Answer:
(A) recommended preventive measures
Explanation: The risk management plan is a subset of the project management plan, describes how risk management should be performed, and is an output of the Risk Management Planning process. The following should be included in the risk management plan:
methodology - identifies the approaches and tools used to perform risk management
roles and responsibilities - assigns people to roles and responsibilities
budgeting - identifies resources and estimates costs
timing - defines how often the risk management process will be performed
risk categories - type and categories of risks
P-I matrix - probability and impact matrix
stakeholder tolerances - revised stakeholder tolerances
reporting formats - describe content and format of risk register
tracking - identifies how risk activities wil be documented / recorded / audited
On the other hand, the recommended preventive measures are an output of the Risk Monitoring and Control, and are separate from the risk management plan.References: PMBOK 3rd Edition, Section 11.1.3

Question19:
You are currently in the process of prioritizing risks by their impact and probability of occurrence. The risk register updates from this process include al of the following EXCEPT:
(A) risks requiring responses in the near term
(B) low priority risks
(C) risks group by categories
(D) priority list of project risks
(E) probabilistic analysis of the project
Answer:
(E) probabilistic analysis of the project
Explanation: Qualitative Risk Analysis involves prioritizing risks by their impact and probability of
occurrence. The risk register updates from this process include:relative priority of risks
risks group by categories
risks requiring near-term response
risks requiring additional analysis
low priority lists
qualitative risk analysis trends
On the other hand, probabilistic analysis of the project is an output of the Quantitative Risk Analysis process, as part of the risk register updates.References: PMBOK 3rd Edition, Section 11.3.3

Question20:
The CPM calculates the earliest start date, earliest finish date, latest start date, and latest finish date for each activity. Which of the following statements are true regarding the critical path of a project schedule?
(A) Any project activity with a slack time of zero or greater is considered a critical path tasks
(B) None of the statements are true
(C) The float / slack time is determined by subtracting the early start date from the late start date.
(D) The float / slack time is determined by subtracting the early start date from the early finish date.
Answer:
(C) The float / slack time is determined by subtracting the early start date from the late start date.
Explanation: Any project activity with a float / slack time that equals zero is considered a critical path tasks.
The float / slack time is determined by subtracting the early start date from the late start date.

Question21:
You are in the process of establishing a total cost baseline for measuring project performance. Which of the following is the LEAST helpful INPUT?
(A) activity cost estimates & supporting details
(B) WBS, WBS dictionary
(C) project scope statement, project schedule
(D) contract, resource calendars, cost management plan
(E) project funding requirements, performance reports
Answer:
(E) project funding requirements, performance reports
Explanation: Cost Budgeting involves establishing a total cost baseline for measuring project performance. It has the following inputs:project scope statement, project schedule WBS, WBS dictionary activity cost estimates & supporting details contract, resource calendars, cost management plan On the other hand, project funding requirements and performance reports are NOT inputs to the Cost Budgeting process.

Question22:
Which of the following is most likely to require a rebaselining of the cost baseline in order to provide a realistic measure of performance?
(A) change requests
(B) revised cost estimates
(C) budget updates
(D) corrective actions
Answer:
(C) budget updates
Explanation: According to the PMI, budget updates are changes to an approved cost baseline, generally a result of responses to scope changes. In certain cases, such budget updates may result in significant cost variances that are so severe that rebaselining of the cost baseline is required.

Question23:
Which of the following statements are FALSE regarding issue logs?
(A) Issue logs are a tool / technique of the Manage Project Team process
(B) Issue logs describe the ground rules and conflict management procedures to manage the project
(C) Issue logs are a tool / technique of the Manage Stakeholders process
(D) Issue logs are written logs that documents persons responsible for resolving specific issues by a target date.
Answer:
(B) Issue logs describe the ground rules and conflict management procedures to manage the project
Explanation: Issue logs are written logs that documents persons responsible for resolving specific issues by a target date. Issue logs are tools / techniques of the Manage Project Team and Manage Stakeholders processes.

Question24:
Which of the following statements are false?
(A) The qualified sellers list describes those sellers who are asked to submit a proposal
(B) Qualified sellers List and procurement document package are outputs of the Request seller
Responses process.
(C) Procurement document package is a buyer-prepared formal request sent to each seller and is the basis upon which a seller prepares a bid
(D) Contracts are seller prepared documents that describe the seller's ability to provide requested
services
Answer:
(D) Contracts are seller prepared documents that describe the seller's ability to provide requested
services
Explanation: Procurement document package is a buyer-prepared formal request sent to each seller and is the basis upon which a seller prepares a bid. The qualified sellers list describes those sellers who are asked to submit a proposal. Proposals, NOT contracts, are seller prepared documents that describe the seller's ability to provide requested services. Qualified sellers List and procurement document package are outputs of the Request Seller Responses processReferences: PMBOK 3rd Edition, Section 12.3.3

Question25:
Which of the following motivational theories says that pay and salary may prevent job dissatisfaction, but will NOT lead to long-term job satisfaction?
(A) Achievement Theory
(B) Expectancy Theory
(C) Hertzberg Hygiene Theory
(D) Maslow Hierarchy of Needs
Answer:
(C) Hertzberg Hygiene Theory
Explanation: Hertzberg proposed that satisfaction and dis-satisfaction at work resulted from two different factors
Hygiene and Motivation factors. Hertzberg found that the factors causing job satisfaction (and
presumably motivation) were different from those causing job dissatisfaction.He developed the motivationhygiene theory to explain these results. He cal ed the satisfiers motivators and the dissatisfiers hygiene factors, using the term "hygiene" in the sense that they are considered maintenance factors that are necessary to avoid dissatisfaction but that by themselves do not
provide satisfaction.Hygiene factors:Supervision, work conditions, salary, security, relationship with peers and managementMotivation factors:Achievement, job itself, recognition, responsibility,
advancementHertzberg stated al hygiene and motivation factors must be present for job satisfaction. Hygiene factors need to be present to avoid job dis-satisfaction, but wil not cause job satisfaction.Motivation factors need to be present for job satisfaction, and are different to dis-satisfying hygiene factors. Motivation factors are not the opposite reaction to hygiene factors.

Question26:
You are currently analyzing the schedule for a project. You've noticed that for certain activities in the project, the schedule completion date of the activity versus the actual completion date of the activities differed significantly. Which of the following statements are true?
(A) Such schedule variances may sometimes impact the schedule
(B) Such schedule variances wil impact the schedule
(C) Not enough information is provided
(D) Such schedule variances wil not impact the schedule
(E) Such schedule variances are a result of scope changes
Answer:
(A) Such schedule variances may sometimes impact the schedule
Explanation: Schedule variances are any difference between the scheduled completion of an activity versus the actual completion of the activity. Schedule variances wil sometimes, but NOT always, impact the schedule.
Specifically, changes to non-critical path activities may NOT impact the schedule. On the other hand, changes to critical path activities wil impact the schedule. Hence, schedule variances
may or may not impact the schedule, depending on which activities are impacted.

Question27:
Al of the following statements regarding the Resource Breakdown Structure are true EXCEPT:
(A) The RBS is a hierarchical structure of the identified resources by resource category and type
(B) The RBS is an output of the Activity Resource Estimating process
(C) The RBS is useful in tracking project costs, and can be integrated with the organization's accounting systems.
(D) The RBS is a structure that relates the organizational breakdown structure to the WBS to ensure that each work component is properly assigned to a responsible person/team.
(E) The RBS can contain other resource categories other than human resources.
Answer:
(D) The RBS is a structure that relates the organizational breakdown structure to the WBS to ensure that each work component is properly assigned to a responsible person/team.
Explanation: The RBS is an output of the Activity Resource Estimating process and presents a hierarchical structure of the identified resources by resource category and type. The RBS is useful in tracking project costs, and can be integrated with the organization's accounting systems. The RBS can contain other resource categories other than human resources.On the other hand, the Responsibility Assignment Matrix (RAM), not the RBS, is a structure that relates the organizational breakdown structure to the WBS to ensure that each work component is properly assigned to a responsible person/team.References: PMBOK 3rd Edition, Section 6.3.3.3

Question28:
Which of the following forecasts the most likely total project costs based on the current project
performance to date?
(A) CV
(B) SV
(C) EV
(D) EAC
(E) VAC
Answer:
(D) EAC
Explanation: The Estimate At Completion (EAC) can be used to forecast the most likely total project costs based on the current project performance. This measurement is used during the Cost Control process.

Question29:
Al of the following are sources of conflict EXCEPT:
(A) ground rules
(B) personal work styles
(C) scheduling priorities
(D) scare resources
Answer:
(A) ground rules
Explanation: Conflict management is a tool / technique of Manage Project Team process. Source of conflict include scare resources, scheduling priorities, and personal work styles.On the other hand, team ground rules, group norms, and project management practices (communication
planning, role definition) reduce the amount of team conflict. Conflicts should be addressed early and usual y in private using a direct, col aborative approach.References: PMBOK 3rd Edition, Section 9.4.2.3

Question30:
Which of the following describes an input to the Direct And Manage Project Execution that is used to bring the project back in-line and is part of the feedback loop?
(A) corrective actions
(B) workarounds
(C) performance measurements
(D) WBS updates
(E) performance reports
Answer:
(A) corrective actions
Explanation: Corrective actions are used to bring expected future project performance in line with the project plan. Corrective actions complete the feedback loop between the various control processes and Direct And Manage Project Execution processes.


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