CAPM (Certified Associate in Project Management) Practice Exam

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What is the purpose of independent estimates in procurement?

To serve as decoration
To finalize procurement contracts
To serve as a benchmark on proposed responses
To determine the vendor's reliability

The correct answer is: To serve as a benchmark on proposed responses

Independent estimates in procurement serve as a benchmark on proposed responses. They help in evaluating the reasonableness and competitiveness of vendors' proposals by providing a comparison point. This benchmark ensures that the project is obtaining goods or services at a fair market price. Additionally, independent estimates help in enhancing transparency and accountability in the procurement process by verifying the accuracy of vendors' pricing. Options A, B, and D are incorrect because independent estimates do not serve the purpose of decoration, finalizing procurement contracts, or determining the vendor's reliability.