chapter-12 edited
1. “A shortage of qualified personnel is one of the main reason that companies outsource. A project may require experts in a particular field for several months and planning for this procurement ensures that the needed services will be available for the project.” Which of the following benefits does this characteristic of outsourcing provide an organization?
c. Provides access to specific skills
2. Outsourcing suppliers can often provide economies of scale, especially for hardware and software, that may not be available to the client alone. Which of the following benefits does this offer an organization?
a. Reduction in fixed and recurrent costs
3. “Most organizations are not in business to provide information technology services, yet many have spent valuable time and resources on information technology functions when they should have instead worked on important competencies such as marketing, customer service, and new product design. Outsourcing helps tackle this problem.” Which of the following benefits does outsourcing primarily provide in such a scenario?
d. Helps focus on an organization’s core business
4. “Outsourcing to provide extra workers during periods of peak workloads can be much more economical than trying to fill entire projects with internal resources.” Which of the following advantages does this characteristic of outsourcing provide organizations?
b. Provides a company flexibility in staffing
5. A drawback of outsourcing is that:
c. it can make an organization become overly dependent on particular suppliers.
6. The first step in project procurement management is:
d. planning procurement management.
7. In project procurement management, the process of ____ involves determining what to procure, when, and how.
d. planning procurement management
8. In project procurement management, the process of _____ involves obtaining seller responses, selecting sellers, and awarding contracts.
a. conducting procurements
9. Outputs of the _______ process consist of selected sellers and resource calendars.
b. conducting procurements
10. Which of the following processes of project procurement management involves managing relationships with sellers, monitoring contract performance, and making changes as needed?
d. Controlling procurements
11. In project procurement management, which of the following processes involve completion and settlement of each contract, including resolution of any open items?
c. Closing procurements
12. The procurement statements of work are an output of _____ the process of project procurement management.
a. planning
13. In project procurement management, the process of conducting procurements is part of the _____ process.
b. executing
14. In project procurement management, which of the following is an output of the executing process?
d. Resource calendars
15. In project procurement management, an output of the _______ monitoring and controlling process.
a. Change requests
16. Which of the following is true of lump-sum contracts?
b. They involve a fixed total price for a well- defined product or service.
17. _______ contracts involve payment to the supplier for direct and indirect actual costs and often include fees.
c. Cost-reimbursable contracts
18. In a(n) ______ contract, the buyer pays the supplier for allowable performance costs along with a predetermined fee and an incentive bonus.
b. CPIF
19. With a(n) _______ contract, the buyer pays the supplier for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs.
a. CPFF
20. In which of the following contracts does the buyer pay the supplier for allowable performance costs along with a predetermined percentage based on total costs?
c. CPPC
21. From the buyer’s perspective, the ______ is the least desirable among all contracts because the supplier has no incentive to decrease costs.
d. CPPC
22. A(n) ______ contract carries the least risk for suppliers.
a. CPPC
23. The ______ is a description of the work required for a procurement.
d. SOW
24. A(n) ________ is a document used to solicit proposals from prospective suppliers.
c. RFP
25. A document used to solicit quotes or bids from prospective suppliers is known as a(n) ______ .
a. RFQ
26. After planning for procurement management, which of the following does the next process involve?
d. Sending appropriate documentation to potential sellers
27. In project procurement management, which of the following is one of the main outputs of the conducting procurement process?
a. A selected seller
28. The process of choosing suppliers or sellers is known as _____ .
a. source selection
29. Which of the following is an output of the contract closure process?
b. Updates to organizational process assets
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