Free CPM Practice Questions

Question 1

Technicians at small maintenance firms record inspections on paper when mobile coverage fails, then re-enter the results at the office. Research establishes a need to capture up to 50 inspections during an offline shift without losing work. Which Product Requirements Document (PRD) statement most directly translates that market need into a testable product requirement?

Accepted Answer

The application shall save 50 inspections without a network connection and retain them after an application restart.

Answer

The application shall synchronize 50 inspection records within 15 seconds when connected to the office network.

Answer

The application shall export 50 completed inspection records to a spreadsheet within five seconds of an authorized request.

Answer

The application shall alert technicians within two seconds when mobile coverage is lost and a submission cannot complete.

Question 2

A product manager has authority to set priorities within an approved budget. The agreed objective is to improve renewal among small firms, and research links cancellations to failed data imports. Sales requests a branded dashboard for a large prospect outside that segment; building it would displace the import fix. No contract promises the dashboard. How should the product manager resolve the conflict?

Accepted Answer

Keep the import fix ahead of the dashboard and explain the customer evidence to sales.

Answer

Replace the import fix with the dashboard to pursue the larger account, then revisit small-firm renewal next quarter.

Answer

Ask engineering to choose the lower-risk implementation and use that technical assessment to settle the commercial priority.

Answer

Freeze both requests until the executive sponsor resolves the disagreement between sales and the product team.

Question 3

A ticket kiosk meets every approved specification for transaction speed, payment accuracy, and physical durability. During trials in stations, wheelchair users cannot reach the confirmation control and therefore cannot purchase tickets. They are an intended user group, but reachability was omitted from the specifications. What distinction explains these results?

Accepted Answer

Specification verification has succeeded, but intended-use validation has failed for part of the target population.

Answer

Intended-use validation passed; specification verification failed in the station environment.

Answer

Component testing has succeeded, but a payment-interface integration defect prevented completion of the transaction.

Answer

The product meets its intended use; the field trials have identified an optional enhancement outside the agreed specifications.

Question 4

A quarterly review separates recurring revenue from existing and newly acquired customers. All amounts below are monthly recurring revenue.
Opening cohort: $200,000 at quarter-start; upgrades +$50,000, downgrades -$10,000, and cancellations -$20,000 by quarter-end.
New customers: $40,000 at quarter-end.
Which statement correctly reports net revenue retention for the quarter?

Accepted Answer

Net revenue retention is 110%; the opening cohort expanded overall despite losing revenue through both downgrades and cancellations.

Answer

Net revenue retention is 130%; the increase in total recurring revenue shows that the opening cohort expanded by 30%.

Answer

Net revenue retention is 85%; losses from downgrades and cancellations exceeded expansion within the opening cohort.

Answer

Net revenue retention is 115%; upgrades and cancellations capture the complete change in revenue from existing accounts.

Question 5

Café owners say they like a proposed service that forecasts next-day ingredient purchases. Before funding an automated integration, the team needs evidence that owners will pay $75 per week and use the forecasts to place orders. The forecasts can already be prepared manually. What is the most informative minimum viable product for this decision?

Accepted Answer

Provide the forecasts manually for four paid weeks and track both payments and actual ingredient orders.

Answer

Offer free forecasts for four weeks and measure reductions in ingredient waste.

Answer

Display a priced prototype and count email registrations from café owners who express interest in a $75-per-week subscription.

Answer

Build the integration for one café, then demonstrate it to other owners and ask whether they would subscribe at the proposed price.

Question 6

A commercial label printer matches competing models in speed, print quality, and price. Buyers report that production interruptions matter more than additional printing features. The product manager wants to differentiate at the augmented-product level. Which proposal fits that choice?

Accepted Answer

A next-business-day replacement service supported by spare printers held in regional service centers.

Answer

A redesigned mechanism that makes empty label rolls faster to replace.

Answer

A firmware upgrade that detects misaligned labels and recalibrates the print head before each job.

Answer

A more durable feed assembly that reduces mechanical wear during extended high-volume production runs.

Question 7

Growing demand for remote sensor alerts attracts a supplier whose software capability is inadequate. It licenses a partner platform specifically to enter that market. Which TOWS pairing does this strategy represent?

Accepted Answer

WO: address an internal capability gap to exploit an external market opportunity.

Answer

SO: use an established internal strength to capture an expanding external market.

Answer

WT: reduce an internal weakness to limit exposure to an external threat.

Answer

ST: deploy an internal strength to counter an external competitive threat.

Question 8

The approved configuration record for an industrial controller specifies communication-module revision B. Inspection finds revision C in one batch, but no change approval or qualification evidence covers the substitution. Other models are confirmed to match their approved configurations. What must happen before the substituted batch can be authorized for release?

Accepted Answer

Assess the change and obtain qualification evidence for the substituted configuration.

Answer

Carry forward qualification because the replacement has the same connector and the same published electrical ratings.

Answer

Suspend release of every controller model until all supplier components across the portfolio have been requalified.

Answer

Update the approved parts list to revision C and release the batch against the existing revision-B test report.

Question 9

A manufacturer sells 1,000 units per month at $100 each. Sales proposes a 10% price reduction and credibly forecasts monthly sales of 1,250 units. Variable cost would remain $60 per unit, spare production capacity is available, and fixed costs would not change. Does the proposal improve monthly operating profit?

Accepted Answer

No; total contribution falls from $40,000 to $37,500 despite the increase in revenue.

Answer

Yes; the additional 250 units create $10,000 of contribution at the existing per-unit margin.

Answer

Yes; sales revenue rises from $100,000 to $112,500 without an increase in fixed operating costs.

Answer

No; a $10 price reduction cuts monthly contribution to $30,000.

Question 10

A product's revenue grew 22% last year, while its market grew 3%. The product holds 12% revenue-based market share against the largest competitor's 24%. The company defines high annual market growth as at least 10% and high relative market share as at least 1.0. The product generates cash and is necessary for profitable customer bundles. Select the appropriate BCG assessment.

Accepted Answer

Dog: assess its cash contribution and bundle dependencies before deciding whether to exit.

Answer

Star: expand capacity to defend its leading position in a high-growth market.

Answer

Cash cow: harvest its leading market position to finance other products.

Answer

Question mark: its low relative share in a rapidly expanding market supports investment to capture the growth opportunity.

Free CPM Practice Questions

Domain 1: Foundations of Product Management

Question 1

Question 2

Domain 2: Conceive and Plan

Question 3

Question 4

Question 5

Question 6

Domain 3: Develop and Qualify

Question 7

Question 8

Domain 4: Life Cycle Management and Portfolio Strategy

Question 9

Question 10

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