Health Benefits Of Vigor Essentials Capsule

Series 6: Latest CAPM Questions And Answers

This is another Series of latest CAPM Exam Question and Answers that you can practice with for your exam

QUESTIO 25
Which schedule method allows the project team to place buffers on the project schedule path to account for limited resources and project uncertainties?

A. Critical path method
B. Critical chain method
C. Resource leveling
D. Schedule network analysis

Correct Answer: B 

Explanation:

 

Critical Chain Method
The critical chain method (CCM) is a schedule method that allows the project team to place buffers on any project schedule path to account for limited resources and project uncertainties. It is developed from the critical path method approach and considers the effects of resource allocation, resource optimization, resource leveling, and activity duration uncertainty on the critical path determined using the critical path method.

 

To do so, the critical chain method introduces the concept of buffers and buffer management. The critical chain method uses activities with durations that do not include safety margins, logical relationships, and resource availability with statistically determined buffers composed of the aggregated safety margins of activities at specified points on the project schedule path to account for limited resources and project uncertainties. The resource-constrained critical path is known as the critical chain.

 

The critical chain method adds duration buffers that are non-work schedule activities to manage uncertainty. One buffer, placed at the end of the critical chain, as shown in Figure 6-19, is known as the project buffer and protects the target finish date from slippage along the critical chain. Additional buffers, known as feeding buffers, are placed at each point where a chain of dependent activities that are not on the critical chain feeds into the critical chain. Feeding buffers thus protect the critical chain from slippage along the feeding chains.

 

The size of each buffer should account for the uncertainty in the duration of the chain of dependent activities leading up to that buffer. Once the buffer schedule activities are determined, the planned activities are scheduled to their latest possible planned start and finish dates. Consequently, instead of managing the total float of network paths, the critical chain method focuses on managing the remaining buffer durations against the remaining durations of chains of activities.

 

QUESTION 252
The lowest level normally depicted in a work breakdown structure (VVBS) is called a/an:

A. work package
B. deliverable
C. milestone
D. activity

Correct Answer: A 

QUESTION 253
The scope management plan and scope baseline are contained in:

A. organizational process assets
B. a requirements traceability matrix
C. the project charter
D. the project management plan

Correct Answer: D

Explanation:
Scope Baseline

The scope baseline is the approved version of a scope statement, work breakdown structure (WBS), and its associated WBS dictionary, that can be changed only through formal change control procedures and is used as a basis for comparison. It is a component of the project management plan. Components of the scope baseline include:

Project scope statement. The project scope statement includes the description of the project scope, major deliverables, assumptions, and constraints.

WBS. The WBS is a hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables. Each descending level of the WBS represents an increasingly detailed definition of the project work.

 

The WBS is finalized by assigning each work package to a control account and establishing a unique identifier for that work package from a code of accounts. These identifiers provide a structure for hierarchical summation of costs, schedule, and resource information. A control account is a management control point where scope, budget, actual cost, and schedule are integrated and compared to the earned value for performance measurement.

 

 

Control accounts are placed at selected management points in the WBS. Each control account may include one or more work packages, but each of the work packages should be associated with only one control account. A control account may include one or more planning packages. A planning package is a work breakdown structure component below the control account with known work content but without detailed schedule activities.

 

WBS dictionary. The WBS dictionary is a document that provides detailed deliverable, activity, and scheduling information about each component in the WBS. The WBS dictionary is a document that supports the WBS. Information in the WBS dictionary may include, but is not limited to:

 

○ Code of account identifier,
○ Description of work,
○ Assumptions and constraints,
○ Responsible organization,
○ Schedule milestones,
○ Associated schedule activities,
○ Resources required,
○ Cost estimates,
○ Quality requirements,
○ Acceptance criteria,
○ Technical references, and
○ Agreement information

 

Project Management Plan

The project management plan is the document that describes how the project will be executed, monitored, and controlled. It integrates and consolidates all of the subsidiary plans and baselines from the planning processes. Project baselines include, but are not limited to:
Scope baseline , Schedule baseline , and Cost baseline.

 

Subsidiary plans include, but are not limited to: Scope management plan, Requirements management plan, Schedule management plan, Cost management plan,
Quality management plan, Process improvement plan,
Human resource management plan, Communications management plan, Risk management plan, Procurement management plan, and Stakeholder management plan.

 

Among other things, the project management plan may also include the following:
Life cycle selected for the project and the processes that will be applied to each phase; Details of the tailoring decisions specified by the project management team as follows:

 

○ Project management processes selected by the project management team,
○ Level of implementation for each selected process,
○ Descriptions of the tools and techniques to be used for accomplishing those processes, and
○ Description of how the selected processes will be used to manage the specific project, including the dependencies and interactions among those processes and the essential inputs and outputs.

 

Description of how work will be executed to accomplish the project objectives;
Change management plan that documents how changes will be monitored and controlled; Configuration management plan that documents how Configuration management will be performed; Description of how the integrity of the project baselines will be maintained; Requirements and techniques for communication among stakeholders; and Key management reviews for content, the extent of, and timing to address, open issues and pending decisions.

 

The project management plan may be either summary level or detailed, and may be composed of one or more subsidiary plans. Each of the subsidiary plans is detailed to the extent required by the specific project. Once the project management plan is baselined, it may only be changed when a change request is generated and approved through the Perform Integrated Change Control process.

 

QUESTION 254
Which Manage Communications tool or technique focuses on identifying and managing barriers?

A. Communication methods
B. Information technology
C. Communication models
D. Information management systems

 

Correct Answer: C 

Communication Models
The communication models used to facilitate communications and the exchange of information may vary from project to project and also within different stages of the same project. [..]. Medium is the technology medium and includes the mode of communication while noise includes any interference or barriers that might compromise the delivery of the message.

 

The sequence of steps in a basic communication model is:
Encode. Thoughts or ideas are translated (encoded) into language by the sender.
Transmit Message. This information is then sent by the sender using communication channel (medium). The transmission of this message may be compromised by various factors (e.g., distance, unfamiliar technology, inadequate infrastructure, cultural difference, and lack of background information). These factors are collectively termed as noise.

 

Decode. The message is translated by the receiver back into meaningful thoughts or ideas.
Acknowledge. Upon receipt of a message, the receiver may signal (acknowledge) receipt of the message but this does not necessarily mean agreement with or comprehension of the message.
Feedback/Response. When the received message has been decoded and understood, the receiver encodes thoughts and ideas into a message and then transmits this message to the original sender.
Process: 10.2 Manage Communications

 

Definition: The process of creating, collecting, distributing, storing, retrieving and the ultimate disposition of project information in accordance with the communications management plan.
Key Benefit: The key benefit of this process is that it enables an efficient and effective communications flow between project stakeholders.

 

Inputs
1. Communications management plan
2. Work performance reports
3. Enterprise environmental factors
4. Organizational process assets
Tools & Techniques
1. Communication technology
2. Communication models
3. Communication methods
4. Information management systems
5. Performance reporting

 

Outputs
1. Project communications
2. Project management plan updates
3. Project documents updates
4. Organizational process assets updates

 

QUESTION 255
Which type of organizational structure is displayed in the diagram provided?

 

A. Balanced matrix
B. Projectized
C. Strong matrix
D. Functional
Correct Answer: B

 

QUESTION 256
Outputs of the Control Communications process include:

A. expert judgment and change requests.
B. work performance information and change requests.
C. organizational process asset updates and an issue log.
D. project management plan updates and an issue log.

Correct Answer: B 

Explanation:
Work Performance Information

Work performance information is the performance data collected from various controlling processes, analyzed in context, and integrated based on relationships across areas. Thus work performance data has been transformed into work performance information. Data in itself cannot be used in the decision-making process as it has only out-of-context meaning. Work performance information, however, is correlated and contextualized, and provides a sound foundation for project decisions.
Work performance information is circulated through communication processes. Examples of performance information are status of deliverables, implementation status for change requests, and forecasted estimates to complete.

 

Issue Log
Issues arise in the course of managing the project team. An issue log can be used to document and monitor who is responsible for resolving specific issues by a target date.

QUESTION 257
In the Plan Procurement Management process, which source selection criteria analyzes if the seller’s proposed technical methodologies, techniques, solutions, and services meet the procurement documents requirements?

 

A. Technical approach
B. Technical capability
C. Business size and type
D. Production capacity and interest

 

Correct Answer: A 

Explanation:
Procurement Documents

Procurement documents are used to solicit proposals from prospective sellers. Terms such as bid, tender, or quotation are generally used when the seller selection decision will be based on price (as when buying commercial or standard items), while a term such as proposal is generally used when other considerations, such as technical capability or technical approach are paramount. Common terms are in use for different types of procurement documents and may include request for information (RFI), invitation for bid (IFB), request for proposal (RFP), request for quotation (RFQ), tender notice, invitation for negotiation, and invitation for seller’s initial response.

 

Specific procurement terminology used may vary by industry and location of the procurement. The buyer structures procurement documents to facilitate an accurate and complete response from each prospective seller and to facilitate easy evaluation of the responses. These documents include a description of the desired form of the response, the relevant procurement statement of work (SOW) and any required contractual provisions. With government contracting, some or all of the content and structure of procurement documents may be defined by regulation.

 

The complexity and level of detail of the procurement documents should be consistent with the value of, and risks associated with, the planned procurement. Procurement documents are required to be sufficient to ensure consistent, appropriate responses, but flexible enough to allow consideration of any seller suggestions for better ways to satisfy the same requirements.

 

Issuing a procurement request to potential sellers to submit a proposal or bid is normally done in accordance with the policies of the buyer’s organization, which can include publication of the request in public newspapers, in trade journals, in public registries, or on the internet.

Plan Procurement Management
Definition: The process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.
Key Benefit: The key benefit of this process is that it determines whether to acquire outside support, and if so, what to acquire, how to acquire it, how much is needed, and when to acquire it.

Inputs
1. Project management plan
2. Requirements documentation
3. Risk register
4. Activity resource requirements
5. Project schedule
6. Activity cost estimates
7. Stakeholder register
8. Enterprise environmental factors
9. Organizational process assets
Tools & Techniques
1. Make-or-buy analysis
2. Expert judgment
3. Market research
4. Meetings

 

Outputs
1. Procurement management plan
2. Procurement statement of work
3. Procurement documents
4. Source selection criteria
5. Make-or-buy decisions
6. Change requests
7. Project documents updates

 

 

QUESTION 258
Stakeholder communication requirements should be included as a component of:

A. enterprise environmental factors
B. organizational process assets
C. the project management plan
D. the stakeholder register
Correct Answer: C 

QUESTION 259
Which element does a project charter contain?

A. Management reserves
B. Work breakdown structure
C. Stakeholder list
D. Stakeholder register

Correct Answer: C

QUESTION 263
Every project creates a unique product, service, or result that may be:

A. tangible
B. targeted
C. organized
D. variable

Correct Answer: A 

 

QUESTION 264
Correlated and contextualized information on how closely the scope is being maintained relative to the scope baseline is contained within:

 

A. project documents updates.
B. project management plan updates.
C. change requests.
D. work performance information.

 

Correct Answer: D 

Explanation:
Work Performance Information

Work performance information is the performance data collected from various controlling processes, analyzed in context, and integrated based on relationships across areas. Thus work performance data has been transformed into work performance information. Data in itself cannot be used in the decision-making process as it has only out-of-context meaning. Work performance information, however, is correlated and contextualized, and provides a sound foundation for project decisions.
Work performance information is circulated through communication processes. Examples of performance information are status of deliverables, implementation status for change requests, and forecasted estimates to complete.

 

 Scope Baseline
The scope baseline is the approved version of a scope statement, work breakdown structure (WBS), and its associated WBS dictionary, that can be changed only through formal change control procedures and is used as a basis for comparison. It is a component of the project management plan. Components of the scope baseline include:

Project scope statement. The project scope statement includes the description of the project scope, major deliverables, assumptions, and constraints.

WBS. The WBS is a hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables. Each descending level of the WBS represents an increasingly detailed definition of the project work. The WBS is finalized by assigning each work package to a control account and establishing a unique identifier for that work package from a code of accounts.

 

These identifiers provide a structure for hierarchical summation of costs, schedule, and resource information. A control account is a management control point where scope, budget, actual cost, and schedule are integrated and compared to the earned value for performance measurement. Control accounts are placed at selected management points in the WBS. Each control account may include one or more work packages, but each of the work packages should be associated with only one control account. A control account may include one or more planning packages. A planning package is a work breakdown structure component below the control account with known work content but without detailed schedule activities.

 

WBS dictionary. The WBS dictionary is a document that provides detailed deliverable, activity, and scheduling information about each component in the WBS. The WBS dictionary is a document that supports the WBS. Information in the WBS dictionary may include, but is not limited to:

 

○ Code of account identifier,
○ Description of work,
○ Assumptions and constraints,
○ Responsible organization,
○ Schedule milestones,
○ Associated schedule activities,
○ Resources required,
○ Cost estimates,
○ Quality requirements.

○ Acceptance criteria,
○ Technical references, and
○ Agreement information

 

QUESTION 265
The most appropriate project life cycle model for an environment with a high level of change and extensive stakeholder involvement in projects is:

 

A. adaptive
B. reflexive
C. predictive
D. iterative

 

Correct Answer: A 

Explanation:
Adaptive Life Cycles

Adaptive life cycles (also known as change-driven or agile methods) are intended to respond to high levels of change and ongoing stakeholder involvement. Adaptive methods are also iterative and incremental, but differ in that iterations are very rapid (usually with a duration of 2 to 4 weeks) and are fixed in time and cost.

 

Adaptive projects generally perform several processes in each iteration, although early iterations may concentrate more on planning activities.

The overall scope of the project will be decomposed into a set of requirements and work to be performed, sometimes referred to as a product backlog. At the beginning of an iteration, the team will work to determine how many of the highest priority items on the backlog list can be delivered within the next iteration. At the end of each iteration, the product should be ready for review by the customer.

 

 

This does not mean that the customer is required to accept delivery, just that the product should not include unfinished, incomplete, or unusable features.
The sponsor and customer representatives should be continuously engaged with the project to provide feedback on deliverables as they are created and to ensure that the product backlog reflects their current needs.

 

 

Adaptive methods are generally preferred when dealing with a rapidly changing environment, when requirements and scope are difficult to define in advance, and when it is possible to define small incremental improvements that will deliver value to stakeholders.

 

QUESTION 266
Whose approval may be required for change requests after change control board (CCB) approval?

 

A. Functional managers
B. Business partners
C. Customers or sponsors
D. Subject matter experts

 

Correct Answer: C 

Explanation:
Change Control Board (CCB). A formally chartered group responsible for reviewing, evaluating, approving, delaying, or rejecting changes to the project, and for recording and communicating such decisions.

 

QUESTION 267
The primary benefit of the Plan Schedule Management process is that it:

A. provides guidance to identify time or schedule challenges within the project.
B. tightly links processes to create a seamless project schedule.
C. guides how the project schedule will be managed throughout the project.
D. creates an overview of all activities broken down into manageable subsections.

Correct Answer: C 

Explanation:
Process:  Plan Schedule Management

Definition: The process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule.
Key Benefit: The key benefit of this process is that it provides guidance and direction on how the project schedule will be managed throughout the project.

Inputs
1. Project management plan
2. Project charter
3. Enterprise environmental factors
4. Organizational process assets
Tools & Techniques
1. Expert judgment
2. Analytical techniques
3. Meetings

 

Outputs
1. Schedule management plan

QUESTION 268
Grouping the stakeholders based on their level of authority and their level of concern regarding project outcomes describes which classification model for stakeholder analysis?

A. Influence/impact grid
B. Power/influence grid
C. Power/interest grid
D. Salience model

Correct Answer: C 

Explanation:
 Stakeholder Analysis

Stakeholder analysis is a technique of systematically gathering and analyzing quantitative and qualitative information to determine whose interests should be taken into account throughout the project. It identifies the interests, expectations, and influence of the stakeholders and relates them to the purpose of the project. It also helps to identify stakeholder relationships (with the project and with other stakeholders) that can be leveraged to build coalitions and potential partnerships to enhance the project’s chance of success, along with stakeholder relationships that need to be influenced differently at different stages of the project or phase.

 

Stakeholder analysis generally follows the steps described below:

Identify all potential project stakeholders and relevant information, such as their roles, departments, interests, knowledge, expectations, and influence levels. Key stakeholders are usually easy to identify. They include anyone in a decision-making or management role who is impacted by the project outcome, such as the sponsor, the project manager, and the primary customer. Identifying other stakeholders is usually done by interviewing identified stakeholders and expanding the list until all potential stakeholders are included.

 

Analyze the potential impact or support each stakeholder could generate, and classify them so as to define an approach strategy. In large stakeholder communities, it is important to prioritize the stakeholders to ensure the efficient use of effort to communicate and manage their expectations.
Assess how key stakeholders are likely to react or respond in various situations, in order to plan how to influence them to enhance their support and mitigate potential negative impacts.
There are multiple classification models used for stakeholders analysis, such as:

Power/interest grid, grouping the stakeholders based on their level of authority (“power”) and their level or concern (“interest”) regarding the project outcomes;

Power/influence grid, grouping the stakeholders based on their level of authority (“power”) and their active involvement (“influence”) in the project;

Influence/impact grid, grouping the stakeholders based on their active involvement (“influence”) in the project and their ability to effect changes to the project’s planning or execution (“impact”); and
Salience model, describing classes of stakeholders based on their power (ability to impose their will), urgency (need for immediate attention), and legitimacy (their involvement is appropriate).

 

QUESTION 269
Variance and trend analysis is a tool and technique used in which process?

A. Perform Qualitative Risk Analysis
B. Perform Quantitative Risk Analysis
C. Control Risks
D. Plan Risk Responses

Correct Answer: C 

Explanation:

Process:  Control Risks

Definition: The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.
Key Benefit: The key benefit of this process is that it improves efficiency of the risk approach throughout the project life cycle to continuously optimize risk responses.

Inputs
1. Project management plan
2. Risk register
3. Work performance data
4. Work performance reports

Tools & Techniques
1. Risk reassessment
2. Risk audits
3. Variance and trend analysis
4. Technical performance measurement
5. Reserve analysis
6. Meetings

Outputs
1. Work performance information
2. Change requests

3. Project management plan updates
4. Project documents updates
5. Organizational process assets updates

QUESTION 270
An intentional activity to modify a nonconforming product or product component is called:

 

A. defect repair
B. work repair
C. corrective action
D. preventive action

Correct Answer: A

Explanation:
Change Requests

A change request is a formal proposal to modify any document, deliverable, or baseline. An approved change request will replace the associated document, deliverable, or baseline and may result in an update to other parts of the project management plan. When issues are found while project work is being performed, change requests are submitted, which may modify project policies or procedures, project scope, project cost or budget, project schedule, or project quality. Other change requests cover the needed preventive or corrective actions to forestall negative impact later in the project. Requests for a change can be direct or indirect, externally or internally initiated, and can be optional or legally/contractually mandated, and may include:

 

Corrective action—An intentional activity that realigns the performance of the project work with the project management plan;
Preventive action—An intentional activity that ensures the future performance of the project work is aligned with the project management plan;
Defect repair—An intentional activity to modify a nonconforming product or product component;
Updates—Changes to formally controlled project documents, plans, etc., to reflect modified or additional ideas or content.

 

QUESTION 271
Which quality tool incorporates the upper and lower specification limits allowed within an agreement?

A. Control chart
B. Flowchart
C. Checksheet
D. Pareto diagram

Correct Answer: A 

QUESTION 272
Analytical techniques are a tool and technique of which process in Project Procurement Management?

A. Plan Procurement Management
B. Control Procurements
C. Conduct Procurements
D. Close Procurements

Correct Answer: C 

Explanation:
 Analytical Techniques

Analytical techniques are applied in project management to forecast potential outcomes based on possible variations of project or environmental variables and their relationships with other variables. Examples of analytical techniques used in projects are:

 

Regression analysis, Grouping methods, Causal analysis, Root cause analysis,
Forecasting methods (e.g., time series, scenario building, simulation, etc.), Failure mode and effect analysis (FMEA), Fault tree analysis (FTA), Reserve analysis, Trend analysis, Earned value management, and Variance analysis.

 

Process: Conduct Procurements
Definition: The process of obtaining seller responses, selecting a seller, and awarding a contract.
Key Benefit: The key benefit of this process is that it provides alignment of internal and external stakeholder expectations through established agreements.

Inputs
1. Procurement management plan
2. Procurement documents
3. Source selection criteria
4. Seller proposals
5. Project documents
6. Make-or-buy decisions
7. Procurement statement of work
8. Organizational process assets

 

Tools & Techniques
1. Bidder conference
2. Proposal evaluation techniques
3. Independent estimates
4. Expert judgment
5. Advertising
6. Analytical techniques
7. Procurement negotiations

Outputs
1. .Selected sellers
2. .Agreements
3. .Resource calendars
4. .Change requests
5. .Project management plan updates
6. .Project documents updates

 

QUESTION 273
The process of obtaining seller responses, selecting a seller, and awarding a contract is called:

A. Close Procurements.
B. Control Procurements.
C. Plan Procurements.
D. Conduct Procurements.

 

Correct Answer: D 

Explanation:
Process: Conduct Procurements

Definition: The process of obtaining seller responses, selecting a seller, and awarding a contract. Key Benefit: The key benefit of this process is that it provides alignment of internal and external stakeholder expectations through established agreements.

Inputs
1. Procurement management plan
2. Procurement documents
3. Source selection criteria
4. Seller proposals
5. Project documents
6. Make-or-buy decisions
7. Procurement statement of work
8. Organizational process assets

Tools & Techniques

1. Bidder conference
2. Proposal evaluation techniques
3. Independent estimates
4. Expert judgment
5. Advertising
6. Analytical techniques
7. Procurement negotiations

Outputs
1. .Selected sellers
2. .Agreements
3. .Resource calendars
4. .Change requests
5. .Project management plan updates
6. .Project documents updates

QUESTION 274
Impacts to other organizational areas, levels of service, and acceptance criteria are typical components of which document?

 

A. Business case
B. Work breakdown structure
C. Requirements documentation
D. Risk register

Correct Answer: C

Explanation:
Requirements Documentation

Requirements documentation describes how individual requirements meet the business need for the project. Requirements may start out at a high level and become progressively more detailed as more about the requirements is known. Before being baselined, requirements need to be unambiguous (measurable and testable), traceable, complete, consistent, and acceptable to key stakeholders. The format of a requirements document may range from a simple document listing all the requirements categorized by stakeholder and priority, to more elaborate forms containing an executive summary, detailed descriptions, and attachments. Components of requirements documentation can include, but, are not limited to:

 

Business requirements, including:
○ Business and project objectives for traceability;
○ Business rules for the performing organization; and
○ Guiding principles of the organization
• Stakeholder requirements, including:
○ Impacts to other organizational areas;
○ Impacts to other entities inside or outside the performing organization; and
○ Stakeholder communication and reporting requirements.
• Solution requirements, including:
○ Functional and nonfunctional requirements;
○ Technology and standard compliance requirements;
○ Support and training requirements;
○ Quality requirements; and
○ Reporting requirements, etc. (solution requirements can be documented textually, in models, or both). Project requirements, such as:
○ Levels of service, performance, safety, compliance, etc.; and
○ Acceptance criteria.
Transition requirements.
Requirements assumptions, dependencies, and constraints.

 

 

QUESTION 275
Which Process Group includes the Manage Stakeholder Engagement process?

A. Executing
B. Planning
C. Monitoring and Controlling
D. Initiating

Correct Answer: A 

Explanation:
Executing Process Group

4.3 Direct and Manage Project Work
8.2 Perform Quality Assurance
9.2 Acquire Project Team
9.3 Develop Project Team
9.4 Manage Project Team
10.2 Manage Communications
12.2 Conduct Procurements
13.3 Manage Stakeholder Engagement
13.3 Manage Stakeholder Engagement

Definition: The process of communicating and working with stakeholders to meet their needs/expectations, address issues as they occur, and foster appropriate stakeholder engagement in project activities throughout the project life cycle.
Key Benefit: The key benefit of this process is that it allows the project manager to increase support and minimize resistance from stakeholders, significantly increasing the chances to achieve project success.

Inputs
1. Stakeholder management plan
2. Communications management plan
3. Change log
4. Organizational process assets

Tools & Techniques
1. Communication methods
2. Interpersonal skills
3. Management skills

Outputs
1. Issue log
2. Change requests
3. Project management plan updates
4. Project documents updates
5. Organizational process assets updates

 

QUESTION 276
Funding limit reconciliation is a tool and technique of which Project Cost Management process?

A. Estimate Costs
B. Control Costs
C. Plan Cost Management
D. Determine Budget

Correct Answer: D

Explanation:
Funding Limit Reconciliation

The expenditure of funds should be reconciled with any funding limits on the commitment of funds for the project.

 

A variance between the funding limits and the planned expenditures will sometimes necessitate the rescheduling of work to level out the rate of expenditures. This is accomplished by placing imposed date constraints for work into the project schedule.

Process: Determine Budget

Definition: The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.

Key Benefit: The key benefit of this process is that it determines the cost baseline against which project performance can be monitored and controlled.

Inputs
1. Cost management plan
2. Scope baseline
3. Activity cost estimates
4. Basis of estimates
5. Project schedule
6. Resource calendars
7. Risk register
8. Agreements
9. Organizational process assets

 

Tools & Techniques
1. Cost aggregation

2. Reserve analysis
3. Expert judgment
4. Historical relationships
5. Funding limit reconciliation

Outputs
1. Cost baseline
2. Project funding requirements
3. Project documents updates

QUESTION 277
In complex projects/ initiating processes should be completed:

A. Within a work package.
B. In each phase of the project.
C. To estimate schedule constraints.
D. To estimate resource allocations.

Correct Answer: B 

QUESTION 278
A project manager requesting industry groups and consultants to recommend project intervention is relying on: 

 

A. Communication models.
B. Stakeholder participation.
C. Expert judgment
D. Enterprise environmental factors.

Correct Answer: C

Explanation:
 Expert Judgment

Definition: Judgment is often used to assess the inputs used to develop the project charter. Expert judgment is applied to all technical and management details during this process. Such expertise is provided by any group or individual with specialized knowledge or training and is available from many sources, including:

Other units within the organization, Consultants,
Stakeholders, including customers or sponsors, Professional and technical associations, Industry groups, Subject matter experts (SME), and Project management office (PMO).

 

QUESTION 279
The degree, amount, or volume of risk that an organization or individual will withstand is called risk:

A. appetite
B. tolerance
C. threshold
D. management

 

Correct Answer: B 

QUESTION 282
Tools and techniques used in Direct and Manage Project Work include:

A. Process analysis and expert judgment
B. Analytical techniques and a project management information system
C. Performance reviews and meetings
D. Expert judgment and meetings

Correct Answer: D 

Explanation:
 Meetings

Meetings are used to discuss and address pertinent topics of the project when directing and managing project work. Attendees at the meetings may include the project manager, the project team and appropriate stakeholders involved or affected by the topics addressed.

 

Each attendee should have a defined role to ensure appropriate participation. Meetings tend to be one of three types: Information exchange; Brainstorming, option evaluation, or design; or Decision making. Meeting types should not be mixed as a best practice. Meetings should be prepared with a well-defined agenda, purpose, objective, and time frame and should be appropriately documented with meeting minutes and action items. Meeting minutes should be stored as defined in the project management plan. Meetings are most effective when all participants can be face-to-face in the same location.

 

 

Virtual meetings can be held using audio and/or video conferencing tools, but generally require additional preparation and organization to achieve the same effectiveness of a face-to-face meeting.

Expert Judgment
Expert judgment is often used to assess the inputs used to develop the project charter. Expert judgment is applied to all technical and management details during this process. Such expertise is provided by any group or individual with specialized knowledge or training and is available from many sources, including: Other units within the organization, Consultants,
Stakeholders, including customers or sponsors, Professional and technical associations, Industry groups, Subject matter experts (SME), and Project management office (PMO).

 

Process: Direct and Manage Project Work
Definition: The process of leading and performing the work defined in the project management plan and implementing approved changes to achieve the project’s objectives.
Key Benefit: The key benefit of this process is that it provides overall management of the project work.

 

Inputs
1. Project management plan
2. Approved change requests
3. Enterprise environmental factors
4. Organizational process assets

Tools & Techniques
1. Expert judgment
2. Project management information system
3. Meetings

Outputs
1. Deliverables
2. Work performance data
3. Change requests
4. Project management plan updates
5. Project documents updates

 

QUESTION 283
Completion of the product scope is measured against the product:

A. prototypes
B. requirements
C. analyses
D. benchmarks

 

Correct Answer: B 

QUESTION 284

An issue log is an input to which Project Human Resource Management process?

A. Manage Project Team
B. Acquire Project Team
C. Plan Human Resource Management
D. Develop Project Team

 

Correct Answer: A 

Explanation:
Issue Log

Issues arise in the course of managing the project team. An issue log can be used to document and monitor who is responsible for resolving specific issues by a target date.

Process: Manage Project Team
Definition: The process of tracking team member performance, providing feedback, resolving issues, and managing changes to optimize project performance.

Key Benefit: The key benefit of this process is that it influences team behavior, manages conflict, resolves issues, and appraises team member performance.

Inputs
1. Human resource management plan
2. Project staff assignments
3. Team performance assessments
4. Issue log
5. Work performance reports
6. Organizational process assets

Tools & Techniques
1. Observation and conversation
2. Project performance appraisals
3. Conflict management
4. Interpersonal skills

Outputs
1. Change requests
2. Project management plan updates
3. Project documents updates
4. Enterprise environmental factors updates
5. Organizational process assets updates

QUESTION 285
The component of the risk management plan that documents how risk activities will be recorded is called:

A. tracking
B. scoping
C. timing
D. defining

 

Correct Answer: A 

QUESTION 286
Which Control Stakeholder Engagement tool or technique allows the project manager to consolidate and facilitate distribution of reports?

A. Information management systems
B. Work performance reports
C. Stakeholder analysis
D. Data gathering and representation

Correct Answer: A 

Explanation:
Process:  Control Stakeholder Engagement

Definition: The process of monitoring overall project stakeholder relationships and adjusting strategies and plans for engaging stakeholders.

Key Benefit: The key benefit of this process is that it will maintain or increase the efficiency and effectiveness of stakeholder engagement activities as the project evolves and its environment changes.

Inputs
1. Project management plan
2. Issue log
3. Work performance data
4. Project documents

Tools & Techniques
1. Information management systems
2. Expert judgment
3. Meetings

Outputs
1. Work performance information
2. Change requests
3. Project management plan updates
4. Project documents updates
5. Organizational process assets updates

QUESTION 287
Which basic quality tool explains a change in the dependent variable in relationship to a change observed in the corresponding independent variable?

A. Cause-and-effect diagram
B. Histogram
C. Control chart
D. Scatter diagram

Correct Answer: D 

Explanation:
• Scatter diagrams, plot ordered pairs (X, Y) and are sometimes called correlation charts because they seek to explain a change in the dependent variable, Y, in relationship to a change observed in the corresponding independent variable, X. The direction of correlation may be proportional (positive correlation), inverse (negative correlation), or a pattern of correlation may not exist (zero correlation). If correlation can be established, a regression line can be calculated and used to estimate how a change to the independent variable will influence the value of the dependent variable.

QUESTION 288
High-level project risks are included in which document?

A. Business case
B. Risk breakdown structure
C. Project charter
D. Risk register

Correct Answer: C 

Explanation:
Project Charter

The size of the project charter varies depending on the complexity of the project and the information known at the time of its creation. At a minimum, the project charter should define the high-level boundaries of the project. The project team uses the project charter as the starting point for initial planning throughout the Initiating Process Group.

Project Charter
The project charter is the document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. It documents the business needs, assumptions, constraints, the understanding of the customer’s needs and high-level requirements, and the new product, service, or result that it is intended to satisfy, such as:

Project purpose or justification,
Measurable project objectives and related success criteria, High-level requirements,
Assumptions and constraints, High-level project description and boundaries,
High-level risks,
Summary milestone schedule, Summary budget, Stakeholder list,
Project approval requirements (i.e., what constitutes project success, who decides the project is successful, and who signs off on the project),
Assigned project manager, responsibility, and authority level, and Name and authority of the sponsor or other person(s) authorizing the project charter.

 

Process: Develop Project Charter
Definition: The process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.

Key Benefit: The key benefit of this process is a well-defined project start and project boundaries, creation of a formal record of the project, and a direct way for senior management to formally accept and commit to the project.

Inputs
1. Project statement of work
2. Business case
3. Agreements
4. Enterprise environmental factors
5. Organizational process assets

Tools & Techniques
1. Expert judgment
2. Facilitation techniques

Outputs
1. Project charter

QUESTION 289
The scope management plan and scope baseline are contained in:

A. organizational process assets
B. a requirements traceability matrix
C. the project charter
D. the project management plan

Correct Answer: D 

QUESTION 290
Projects that share common outcomes, collective capability, knowledge, or skills are often grouped into a:

A. portfolio
B. program
C. selection
D. sub portfolio

Correct Answer: B 

QUESTION 291
A project requires a component with well-understood specifications. Performance targets are established at the outset, and the final contract price is determined after completion of all work based on the seller’s performance. The most appropriate agreement with the supplier is:

A. Cost Plus Incentive Fee (CPIF).
B. Fixed Price Incentive Fee (FPIF).
C. Cost Plus Award Fee (CPAF).
D. Fixed Price with Economic Price Adjustment (FP-EPA).

Correct Answer: B 

Explanation:
Organizational Process Assets

The various types of contractual agreements used by the organization also influence decisions for the Plan Procurement Management process. The organizational process assets that influence the Plan Procurement Management process include, but are not limited to:

• Formal procurement policies, procedures, and guidelines. Most organizations have formal procurement policies and buying organizations. When such procurement support is not available, the project team should supply both the resources and the expertise to perform such procurement activities.
• Management systems that are considered in developing the procurement management plan and selecting the contractual relationships to be used.
• An established multi-tier supplier system of prequalified sellers based on prior experience.
All legal contractual relationships generally fall into one of two broad families: either fixed-price or cost reimbursable. Also, there is a third hybrid type commonly in use called the time and materials contract. The more popular contract types in use are discussed below as discrete types, but in practice it is not unusual to combine one or more types into a single procurement.
• Fixed-price contracts. This category of contracts involves setting a fixed total price for a defined product, service, or result to be provided. Fixed-price contracts may also incorporate financial incentives for achieving or exceeding selected project objectives, such as schedule delivery dates, cost and technical performance, or anything that can be quantified and subsequently measured. Sellers under fixed-price contracts are legally obligated to complete such contracts, with possible financial damages if they do not. Under the fixed-price arrangement, buyers need to precisely specify the product or services being procured. Changes in scope may be accommodated, but generally with an increase in contract price.

 

○○ Firm Fixed Price Contracts (FFP). The most commonly used contract type is the FFP. It is favored by most buying organizations because the price for goods is set at the outset and not subject to change unless the scope of work changes. Any cost increase due to adverse performance is the responsibility of the seller, who is obligated to complete the effort. Under the FFP contract, the buyer should precisely specify the product or services to be procured, and any changes to the procurement specification can increase the costs to the buyer.

○○ Fixed Price Incentive Fee Contracts (FPIF). This fixed-price arrangement gives the buyer and seller some flexibility in that it allows for deviation from performance, with financial incentives tied to achieving agreed upon metrics. Typically such financial incentives are related to cost, schedule, or technical performance of the seller. Performance targets are established at the outset, and the final contract price is determined after completion of all work based on the seller’s performance. Under FPIF contracts, a price ceiling is set, and all costs above the price ceiling are the responsibility of the seller, who is obligated to complete the work.

○○ Fixed Price with Economic Price Adjustment Contracts (FP-EPA). This contract type is used whenever the seller’s performance period spans a considerable period of years, as is desired with many long-term relationships. It is a fixed-price contract, but with a special provision allowing for pre defined final adjustments to the contract price due to changed conditions, such as inflation changes, or cost increases (or decreases) for specific commodities. The EPA clause needs to relate to some reliable financial index, which is used to precisely adjust the final price.

The FP-EPA contract is intended to protect both buyer and seller from external conditions beyond their control.

• Cost-reimbursable contracts. This category of contract involves payments (cost reimbursements) to the seller for all legitimate actual costs incurred for completed work, plus a fee representing seller profit.

Cost-reimbursable contracts may also include financial incentive clauses whenever the seller exceeds, or falls below, defined objectives such as costs, schedule, or technical performance targets. Three of the more common types of cost-reimbursable contracts in use are Cost Plus Fixed Fee (CPFF), Cost Plus Incentive Fee (CPIF), and Cost Plus Award Fee (CPAF).

A cost-reimbursable contract provides the project flexibility to redirect a seller whenever the scope of work cannot be precisely defined at the start and needs to be altered, or when high risks may exist in the effort.

○○ Cost Plus Fixed Fee Contracts (CPFF). The seller is reimbursed for all allowable costs for performing the contract work, and receives a fixed-fee payment calculated as a percentage of the initial estimated project costs. A fee is paid only for completed work and does not change due to seller performance. Fee amounts do not change unless the project scope changes.

○○ Cost Plus Incentive Fee Contracts (CPIF). The seller is reimbursed for all allowable costs for performing the contract work and receives a predetermined incentive fee based upon achieving certain performance objectives as set forth in the contract. In CPIF contracts, if the final costs are less or greater than the original estimated costs, then both the buyer and seller share costs from the departures based upon a prenegotiated cost-sharing formula, for example, an 80/20 split over/under target costs based on the actual performance of the seller.

○○ Cost Plus Award Fee Contracts (CPAF). The seller is reimbursed for all legitimate costs, but the majority of the fee is earned only based on the satisfaction of certain broad subjective performance criteria defined and incorporated into the contract. The determination of fee is based solely on the subjective determination of seller performance by the buyer, and is generally not subject to appeals.

 

• Time and Material Contracts (T&M). Time and material contracts are a hybrid type of contractual arrangement that contain aspects of both cost-reimbursable and fixed-price contracts. They are often used for staff augmentation, acquisition of experts, and any outside support when a precise statement of work cannot be quickly prescribed. These types of contracts resemble cost-reimbursable contracts in that they can be left open ended and may be subject to a cost increase for the buyer. The full value of the agreement and the exact quantity of items to be delivered may not be defined by the buyer at the time of the contract award.

 

Thus, T&M contracts can increase in contract value as if they were costreimbursable contracts. Many organizations require not-to-exceed values and time limits placed in all T&M contracts to prevent unlimited cost growth. Conversely, T&M contracts can also resemble fixed unit price arrangements when certain parameters are specified in the contract. Unit labor or material rates can be preset by the buyer and seller, including seller profit, when both parties agree on the values for specific resource categories, such as

 

QUESTION 292
Which enterprise environmental factors may influence Plan Schedule Management?

 

A. Cultural views regarding time schedules and professional and ethical behaviors
B. Historical information and change control procedures
C. Risk control procedures and the probability and impact matrix
D. Resource availability and organizational culture and structure
Correct Answer: D

Explanation:
Enterprise Environmental Factors

 The enterprise environmental factors that influence the Plan Schedule Management process include, but are not limited to:

Organizational culture and structure can all influence schedule management;
Resource availability and skills that may influence schedule planning;
Project management software provides the scheduling tool and alternative possibilities for managing the schedule; Published commercial information, such as resource productivity information, is often available from commercial databases; and Organizational work authorization systems.

 

Process:  Plan Schedule Management

Definition: The process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule.
Key Benefit: The key benefit of this process is that it provides guidance and direction on how the project schedule will be managed throughout the project.

Inputs
1. Project management plan
2. Project charter
3. Enterprise environmental factors
4. Organizational process assets

Tools & Techniques
1. Expert judgment
2. Analytical techniques
3. Meetings

Outputs
1. Schedule management plan

QUESTION 293
Which type of dependency used in the Sequence Activities process is sometimes referred to as preferred logic, preferential logic, or soft logic?

A. Internal
B. External
C. Discretionary
D. Mandatory

Correct Answer: C 

Explanation:
 Dependency Determination

Dependencies may be characterized by the following attributes: mandatory or discretionary, internal or external, as described below. Dependency has four attributes, but two can be applicable at the same time in following ways: mandatory external dependencies, mandatory internal dependencies, discretionary external dependencies, or discretionary internal dependencies.

Mandatory dependencies. Mandatory dependencies are those that are legally or contractually required or inherent in the nature of the work. Mandatory dependencies often involve physical limitations, such as on a construction project, where it is impossible to erect the superstructure until after the foundation has been built, or on an electronics project, where a prototype has to be built before it can be tested.

Mandatory dependencies are also sometimes referred to as hard logic or hard dependencies. Technical dependencies may not be mandatory. The project team determines which dependencies are mandatory during the process of sequencing the activities. Mandatory dependencies should not be confused with assigning schedule constraints in the scheduling tool.

 

Discretionary dependencies. Discretionary dependencies are sometimes referred to as preferred logic, preferential logic, or soft logic. Discretionary dependencies are established based on knowledge of best practices within a particular application area or some unusual aspect of the project where a specific sequence is desired, even though there may be other acceptable sequences. Discretionary dependencies should be fully documented since they can create arbitrary total float values and can limit later scheduling options. When fast tracking techniques are employed, these discretionary dependencies should be reviewed and considered for modification or removal.

 

The project team determines which dependencies are discretionary during the process of sequencing the activities.

External dependencies. External dependencies involve a relationship between project activities and non- project activities. These dependencies are usually outside the project team’s control. For example, the testing activity in a software project may be dependent on the delivery of hardware from an external source, or governmental environmental hearings may need to be held before site preparation can begin on a construction project. The project management team determines which dependencies are external during the process of sequencing the activities.

 

Internal dependencies. Internal dependencies involve a precedence relationship between project activities and are generally inside the project team’s control. For example, if the team cannot test a machine until they assemble it, this is an internal mandatory dependency. The project management team determines which dependencies are internal during the process of sequencing the activities.

 

QUESTION 294
When the business objectives of an organization change, project goals need to be:

A. realigned.
B. performed.
C. improved.
D. controlled.

Correct Answer: A

QUESTION 295
Which of the Perform Quality Assurance tools and techniques may enhance the creation of the work breakdown structure (VVBS) to give structure to the decomposition of the scope?

A. Activity network diagrams
B. Affinity diagrams
C. Matrix diagrams
D. Interrelationship digraphs

Correct Answer: B

Explanation:
Perform Quality Assurance: Tools and Techniques

Quality Management and Control Tools
The Perform Quality Assurance process uses the tools and techniques of the Plan Quality Management and Control Quality processes. In addition, other tools that are available include (see also Figure 8-10):

Affinity diagrams. The affinity diagram is similar to mind-mapping techniques in that they are used to generate ideas that can be linked to form organized patterns of thought about a problem. In project management, the creation of the WBS may be enhanced by using the affinity diagram to give structure to the decomposition of scope.

Process: Perform Quality Assurance
Definition: The process of auditing the quality requirements and the results from quality control measurements to ensure that appropriate quality standards and operational definitions are used.
Key Benefit: The key benefit of this process is that it facilitates the improvement of quality processes.

Inputs
1. Quality management plan
2. Process improvement plan
3. Quality metrics
4. Quality control measurements
5. Project documents

Tools & Techniques
1. Quality management and control tools
2. Quality audits
3. Process analysis

Outputs
1. Change requests
2. Project management plan updates
3. Project documents updates
4. Organizational process assets updates

 

QUESTION 296
A project manager who communicates to the project team though email is using which type of communication?

A. Formal
B. Informal
C. Horizontal
D. Unofficial

Correct Answer: B 

QUESTION 297
An input to the Perform Integrated Change Control process is:

A. expert judgment
B. seller proposals
C. the project charter
D. the project management plan

Correct Answer: D 

Explanation:
Project Management Plan

The project management plan is the document that describes how the project will be executed, monitored, and controlled. It integrates and consolidates all of the subsidiary plans and baselines from the planning processes.

Process:  Perform Integrated Change Control
 
Perform Integrated Change Control is the process of reviewing all change requests; approving changes and managing changes to deliverables, organizational process assets, project documents, and the project management plan; and communicating their disposition. It reviews all requests for changes or modifications to project documents, deliverables, baselines, or the project management plan and approves or rejects the changes.

Key Benefit: The key benefit of this process is that it allows for documented changes within the project to be considered in an integrated fashion while reducing project risk, which often arises from changes made without consideration to the overall project objectives or plans.

Inputs
1. Project management plan
2. Work performance reports
3. Change requests
4. Enterprise environmental factors
5. Organizational process assets

Tools & Techniques

1. Expert judgment
2. Meetings
3. Change control tools

Outputs
1. Approved change requests
2. Change log
3. Project management plan updates
4. Project documents updates

 

QUESTION 298
Which tool or technique is required in order to determine the project budget?

A. Cost of quality
B. Historical relationships
C. Project management software
D. Forecasting
Correct Answer: B Section: Volume B Explanation
Explanation/Reference:
Explanation:
7.3.2.4 Historical Relationships
Any historical relationships that result in parametric estimates or analogous estimates involve the use of project characteristics (parameters) to develop mathematical models to predict total project costs. Such models may be simple (e.g., residential home construction is based on a certain cost per square foot of space) or complex (e.g., one model of software development costing uses multiple separate adjustment factors, each of which has numerous points within it).
Both the cost and accuracy of analogous and parametric models can vary widely. They are most likely to be reliable when:
Historical information used to develop the model is accurate, Parameters used in the model are readily quantifable, and
Models are scalable, such that they work for large projects, small projects, and phases of a project.
Process: 7.3 Determine Budget
Definition: The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.

Key Benefit: The key benefit of this process is that it determines the cost baseline against which project performance can be monitored and controlled.

Inputs
1. Cost management plan
2. Scope baseline
3. Activity cost estimates
4. Basis of estimates
5. Project schedule
6. Resource calendars
7. Risk register
8. Agreements
9. Organizational process assets

Tools & Techniques
1. Cost aggregation
2. Reserve analysis
3. Expert judgment
4. Historical relationships
5. Funding limit reconciliation

Outputs
1. Cost baseline
2. Project funding requirements
3. Project documents updates

QUESTION 299
Requirements documentation will typically contain at least:

A. Stakeholder requirements, staffing requirements, and transition requirements.
B. Business requirements, the stakeholder register, and functional requirements.
C. Stakeholder impact, budget requirements, and communications requirements.
D. Business objectives, stakeholder impact, and functional requirements.

Correct Answer: D 

 

 

Explanation:
Requirements Documentation
Requirements documentation describes how individual requirements meet the business need for the project. Requirements may start out at a high level and become progressively more detailed as more about the requirements is known. Before being baselined, requirements need to be unambiguous (measurable and testable), traceable, complete, consistent, and acceptable to key stakeholders. The format of a requirements document may range from a simple document listing all the requirements categorized by stakeholder and priority, to more elaborate forms containing an executive summary, detailed descriptions, and attachments. Components of requirements documentation can include, but, are not limited to:
Business requirements, including:
○ Business and project objectives for traceability;
○ Business rules for the performing organization; and
○ Guiding principles of the organization
• Stakeholder requirements, including:
○ Impacts to other organizational areas;
○ Impacts to other entities inside or outside the performing organization; and
○ Stakeholder communication and reporting requirements.
• Solution requirements, including:
○ Functional and nonfunctional requirements;
○ Technology and standard compliance requirements;

○ Support and training requirements;
○ Quality requirements; and
○ Reporting requirements, etc. (solution requirements can be documented textually, in models, or both). Project requirements, such as:
○ Levels of service, performance, safety, compliance, etc.; and
○ Acceptance criteria. Transition requirements.
Requirements assumptions, dependencies, and constraints.

QUESTION 300
Which process involves the creation of a document that provides the project manager with the authority to apply resources to a project?

A. Define Activities
B. Direct and Manage Project Work
C. Develop Project Management Plan
D. Develop Project Charter

Correct Answer: D 

Explanation:
Develop Project Charter
Definition: The process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.

Key Benefit: The key benefit of this process is a well-defined project start and project boundaries, the creation of a formal record of the project, and a direct way for senior management to formally accept and commit to the project.

Inputs
1. Project statement of work
2. Business case
3. Agreements
4. Enterprise environmental factors
5. Organizational process assets

Tools & Techniques
1. Expert judgment
2. Facilitation techniques
Outputs
1. Project charter

 

 

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