QUESTION: 73

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

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

Reveal Solution Next Question

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:

There is a lot of proprietary data.
You have the expertise, but you do not have the available manpower.
You do not need control over the work.
Your company resources are limited.

Answer(s): A

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QUESTION: 76

While project work is being done, conflicts can arise between the procurement officer and the project manager because the procurement officer:

Is the only one who can change the contract.
Works for a different department.
Needs to obtain the project manager's approval to make project changes.
Has a different approach to creating a contract.

Answer(s): A

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QUESTION: 75

QUESTION: 76

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