PMP Exam Dumps - Project Management Professional (2025 Version)

The question is about a project that faces a potential threat from a competitor’s product launch using the same innovation. The project manager needs to assess the impact of this threat on the project’s objectives and take appropriate actions to mitigate it. The best option for the project manager to do next is:

Document the issue in the issue log and escalate to the project sponsor: This option is proactive and follows the best practice of issue management. The project manager should document the issue, its impact, and possible solutions in the issue log, which is a tool for tracking and resolving issues that affect the project. The project manager should also escalate the issue to the project sponsor, who is the person or group that provides the resources and support for the project. The project sponsor can help the project manager to evaluate the options and make decisions that align with the project’s goals and business strategy12

The other options are not as effective or appropriate as the first option. They are:

Inform the project sponsor and suggest canceling the project: This option is premature and pessimistic. The project manager should not suggest canceling the project without analyzing the situation and exploring alternatives. Canceling the project might result in wasted resources, lost opportunities, and damaged reputation. The project manager should work with the project sponsor to find ways to overcome the threat and deliver value to the customer3

Review the project goals and eat criteria m the project charter: This option is passive and incomplete. The project manager should review the project goals and acceptance criteria in the project charter, which is a document that authorizes the project and defines its scope, objectives, and stakeholders. However, this is not enough to address the issue. The project manager should also document the issue, communicate with the project sponsor, and take actions to resolve the issue4

Ask the leader of research and development to decide on next steps: This option is irresponsible and risky. The project manager should not delegate the decision-making to the leader of research and development, who might not have the authority, responsibility, or knowledge to handle the issue. The project manager should consult with the leader of research and development, who is a subject matter expert, but the project manager should also involve the project sponsor, who is the project owner, and other relevant stakeholders, who might be affected by the issue. The project manager should lead the issue resolution process and ensure that the decisions are aligned with the project’s goals and business strategy.

 1: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Chapter 4, Section 4.4.3.1 2: Business Analysis for Practitioners: A Practice Guide, Chapter 8, Section 8.4.2 3: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Chapter 2, Section 2.4.3 4: A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Chapter 4, Section 4.1.3.1 : A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Chapter 13, Section 13.2.2.4

According to the PMP Exam Content Outline, one of the tasks under the domain of Business Environment is to plan and manage project compliance, which includes confirming project compliance requirements and classifying compliance categories. Compliance requirements are the rules and regulations that the project must follow to meet the standards of quality, safety, security, and legality. Compliance categories are the types of compliance requirements that apply to the project, such as security, health and safety, regulatory, environmental, etc. Compliance requirements and categories may vary depending on the industry, country, and organization of the project. Therefore, the project manager should not assume that there are no compliance requirements for the project based on the sponsor’s knowledge, but should seek expert advice from the compliance leader, who is the person responsible for ensuring that the project meets the compliance standards and requirements. The compliance leader can help the project manager confirm if there are any compliance requirements for the project, and if so, what they are and how to comply with them. This will help the project manager avoid the risks and consequences of non-compliance, such as fines, penalties, lawsuits, reputation damage, or project failure. The other options are not correct because they do not involve consulting the compliance leader, who is the best source of information and guidance on compliance matters. Checking with the national compliance agency may not be sufficient, as there may be other compliance requirements at the regional, local, or organizational level. Trusting in the expertise of the sponsor may be risky, as the sponsor may not be aware of all the compliance requirements or changes that may affect the project. Conducting independent research may be helpful, but it may not be comprehensive, accurate, or up-to-date, and it may not address the specific needs and context of the project. References:

PMP Exam Content Outline

How compliance in project management works1

3.1 Plan and Manage Project Compliance2

 The project manager should communicate the current status of the project, including both the exceeded benefit expectations and the action plan for completing the pending functionalities. This approach ensures transparency with stakeholders and maintains their confidence in the project’s progress. It also allows stakeholders to understand the context of the achievements and the steps being taken to address any outstanding issues1234.

Budget at Completion (BAC) is the total planned value of the project. It is calculated by multiplying the number of work units by the cost per unit.

BAC = Total miles × Cost per mile

= 10 miles × US$15,000

= US$150,000

The percentage of work completed (80%) is irrelevant for this specific calculation, which only asks for the original planned total budget (BAC).

The best way to improve deliverable quality is to embed continuous feedback and inspection throughout the process, rather than relying solely on late-phase inspections. By breaking the project into iterations (an Agile principle), the team can apply automated testing early and often, while also using retrospectives (quality improvement sessions) to continuously improve.

According to the Agile Practice Guide (Chapters 3 and 5), Agile frameworks encourage frequent quality checks, test automation, and continuous integration to reduce defect rates. This approach aligns with “Build Quality In,” a principle emphasized in both the PMBOK® Guide (Seventh Edition) and lean/agile practices.

Option A addresses training but lacks ongoing quality integration.

Option B is reactive and too late in the process.

Option C is better than B, but quality auditing alone is not sufficient.

we need to calculate the planned value (PV), earned value (EV), and actual cost (AC) of the project at the end of the second iteration. PV is the budgeted amount of work that should have been completed by a certain point in time. EV is the value of the work that has been actually completed by a certain point in time. AC is the amount of money that has been actually spent by a certain point in time. The formulas are:

PV = (Budget at Completion / Total number of user stories) × Planned number of user stories EV = (Budget at Completion / Total number of user stories) × Actual number of user stories AC = Actual expenditure

The budget at completion (BAC) is the total value of all the user stories, which is 100 × $50 = $5,000. The planned number of user stories at the end of the second iteration is 40 (20 per iteration). The actual number of user stories delivered is 50. The actual expenditure is $2,000. Therefore:

PV = ($5,000 / 100) × 40 = $2,000 EV = ($5,000 / 100) × 50 = $2,500 AC = $2,000

To determine whether the project is on budget or not, we can compare the EV and the AC using the cost variance (CV) and the cost performance index (CPI). The formulas are:

CV = EV - AC CPI = EV / AC

If CV is positive or zero, the project is on budget or under budget. If CV is negative, the project is over budget. If CPI is greater than or equal to one, the project is on budget or under budget. If CPI is less than one, the project is over budget. In this case:

CV = $2,500 - $2,000 = $500 CPI = $2,500 / $2,000 = 1.25

Both CV and CPI indicate that the project is under budget.

To determine whether the project is on schedule or not, we can compare the EV and the PV using the schedule variance (SV) and the schedule performance index (SPI). The formulas are:

SV = EV - PV SPI = EV / PV

If SV is positive or zero, the project is on schedule or ahead of schedule. If SV is negative, the project is behind schedule. If SPI is greater than or equal to one, the project is on schedule or ahead of schedule. If SPI is less than one, the project is behind schedule. In this case:

SV = $2,500 - $2,000 = $500 SPI = $2,500 / $2,000 = 1.25

Both SV and SPI indicate that the project is ahead of schedule.

Therefore, the correct statement is that the project is under budget and on schedule.

 The project manager should hold a meeting with the client to address the issue of the challenged and delayed payments. This is because the payment issue is a potential risk that could affect the project performance, cash flow, and stakeholder satisfaction. The project manager should communicate with the client to understand the root cause of the problem, clarify the expectations and obligations of both parties, and negotiate a mutually acceptable solution. The project manager should also document the issue and the agreed actions, and monitor the progress of the resolution. The other options are not as effective or appropriate as holding a meeting with the client. Adding nonpayment to the issue log and keeping tracking payments is a passive and reactive approach that does not address the underlying problem or prevent it from recurring. Reviewing past projects for payment-related lessons learned is a good practice, but it may not be relevant or applicable to the current situation, and it does not involve the client’s input or feedback. Conducting a meeting with the project team to update the procurement management plan is not necessary, as the payment issue is not related to the procurement process, and it may not reflect the client’s perspective or agreement. References: PMBOK Guide, 6th edition, Chapter 10.3.2, 12.3.2, 13.3.2, How to Manage Project Payments - ProjectManager.com