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Question:

You have broken the deliverables for your project as follows: Project Management, Design, Build, and Test. The Design deliverable is further separated to include these deliverables: product design document, blueprints, and prototype. Adequate cost and schedule estimates have been used to all the deliverables. Which of the following has happened?  

A Steps 1, 2, and 3 of decomposition have been performed for the Design deliverable. 
Explaination

The five steps of decomposition are to identify major deliverables, organize the WBS, decompose the WBS components into lower-level components, assign identification codes, and validate the WBS. No mention was made in the question of assigning identification codes or validating the correctness of decomposition, so not all of the steps have been performed. The first three steps of the decomposition process for the Design deliverable have been performed.