QUESTION: 73 Exam Topic: 1, Volume A

What is the difference between management reserves and contingency reserves?

Contingency reserves address known knowns, whereas management reserves address known unknowns.
Contingency and management reserves both address known unknowns and could be considered the same.
Contingency reserves address known unknowns, whereas management reserves address unknown unknowns.
Contingency reserves are managed by senior management, whereas management reserves are managed by the project manager.

Answer(s): C

QUESTION: 74 Exam Topic: 1, Volume A

A project manager is asked to select a contract type for a new software development project that has complete, detailed requirements.
Which is the BEST contract to choose?

Cost reimbursable (CR)
Fixed price (FP)
Time and material (T&M)
Cost plus fixed fee (CPFF)

Answer(s): B

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QUESTION: 75 Exam Topic: 1, Volume A

The project manager and project sponsor are discussing the project costs and whether it is better to have their own company do part of the project or hire another company to do the work. If they asked for your opinion, you might say it would be better to do the work yourself if: