A) An offer

B)  Legal purpose

C)  Negotiation

D)  Consideration

 

Terminology of the Day

 Project Procurement Manag

 The process of attaining goods and services for a project from outside the organization

Answer and Explanation to Yesterday's Question

On the electric company project the government implemented a regulatory change associated with the electricity sub-station upgrade project that required the company to spend an additional $400,000 US on the project. This type of cost and activity best relates to which of the following?

A)  Known unknowns

B)  Unknown unknowns (Correct)

C)  Management Reserve

D)  Risk Management

 Explanation: Management Reserves are created for unknown unknowns. These are things that wouldn't be expected to happen. Contingency Reserves are created for known unknowns. These are things that we know will happen, we just don't know how much of it will happen. Risk Management is noise.

For more questions, terminology and other exercises please see the PMP® Exam Success Series: Certification Exam Manual at http://www.crosswindpm.com/

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