Online MCQ Assignment Answer

QN1: Project A has an internal rate of return (IRR) of 21 percent. Project B has an IRR of 7 percent. Project C has an IRR of 31 percent. Project D has an IRR of 19 percent. Which of these would be the BEST project?

a. Project A

b. Project B

c. Project C

d. Project D

Answer

Answer: c. Project C

QN2: When checking the calendar of a team member to schedule a meeting, you see she has scheduled a meeting with a key stakeholder that you were not informed of. The best approach would be to

a. Avoid mentioning it to the team member but continue to watch her activities

b. Notify your boss about the problem

c. Address the concern with the team member’s boss

d. Address the concern with the team member

Answer

Answer: d. Address the concern with the team member

QN3: The program evaluation and review technique (PERT) method of scheduling differs from the critical path method (CPM) because the PERT method:

a. Uses weighted averages of activity durations to calculate project duration

b. Uses ..dummy.. activities to represent logic ties

c. Uses ..free float.. instead of ..total float.. in the schedule calculations

d. Uses bar charts instead of logic diagrams to portray the schedule

Answer

Answer: a. Uses weighted averages of activity durations to calculate project duration

QN4: A project manager would like to manage his project in such a way that he will be able to identify specific tasks that should be watched and managed more closely than others. The project manager should use which method?

a. The PERT method

b. The critical path method

c. The GERT method

d. The PCDM method

Answer

Answer: b. The critical path method

QN5: The act of doing anything that will help to bring future project performance into line with the project plan is called

a. Budget update

b. Revised cost estimate

c. Corrective action

d. Contingency planning

Answer

Answer: c. Corrective action

QN6: A project manager is using a cause and effect diagram with the team to determine how various factors might be linked to potential problems. In what part of the quality management process is the project manager involved?

a. Quality analysis

b. Perform quality assurance

c. Perform quality control

d. Quality planning

Answer

Answer: d. Quality planning

QN7: In, ___we see whether return or benefits on this investment are more than its cost from point of view of society in which we are living

a. Social cost benefit analysis

b. Cost benefit analysis

c. Profit analysis

d. Risk analysis

Answer

Answer: a. Social cost benefit analysis

QN8: Resource leveling will generally

a. Reduce the time needed to do the project

b. Increase the total time necessary to do all the tasks

c. Reduce the overutilization of resources

d. Reduce resources to the lowest skill that is possible

Answer

Answer: c. Reduce the overutilization of resources

QN9: If all planned work has been completed or earned,What is the schedule variance?

a. 0.01

b. 0

c. 0.1

d. 0.5

Answer

Answer: b. 0

QN10: A project whose acceptance does not prevent or require the acceptance of one or more alternative projects is referred to as ___

a. a mutually exclusive project

b. an independent project

c. a dependent project

d. a contingent project

Answer

Answer: b. an independent project

QN11: When operating under a single-period capital-rationing constraint, you may first want to try selecting projects by descending order of their ___ in order to give yourself the best chance to select the mix of projects that adds most to firm value.

a. profitability index (PI)

b. net present value (NPV)

c. Internal rate of return (IRR)

d. payback period (PBP)

Answer

Answer: a. profitability index (PI)

QN12: Which of the following statements is correct regarding the internal rate of return (IRR) method?

a. Each project has a unique internal rate of return

b. As long as you are not dealing with mutually exclusive projects, capital rationing, or unusual projects having multiple sign changes in the cash-flow stream, the internal rate of return method can be used with reasonable confidence

c. The internal rate of return does not consider the time value of money

d. The internal rate of return is rarely used by firms today because of the ease at which net present value is calculated

Answer

Answer: b. As long as you are not dealing with mutually exclusive projects, capital rationing, or unusual projects having multiple sign changes in the cash-flow stream, the internal rate of return method can be used with reasonable confidence

QN13: Which of the following is not a potential for a ranking problem between two mutually exclusive projects?

a. The projects have unequal lives that differ by several years

b. The costs of the two projects differ by nearly 30%.

c. The two projects have cash flow patterns that differ dramatically

d. One of the mutually exclusive projects involves replacement while the other involves expansion

Answer

Answer: d. One of the mutually exclusive projects involves replacement while the other involves expansion

QN14: The three phases involved in the management of large projects are

a. Scheduling, operating, evaluating

b. Planning, scheduling, evaluating

c. Scheduling, designing, operating

d. Planning, scheduling, controlling

Answer

Answer: d. Planning, scheduling, controlling

QN15: With respect to PERT and CPM, slack

a. Is a task or subproject that must be completed

b. Marks the start or completion of a task

c. Is the amount of time a task may be delayed without changing the overall project completion time

d. Is the latest time an activity can be started without delaying the entire project

Answer

Answer: c. Is the amount of time a task may be delayed without changing the overall project completion time

QN16: A dummy activity is required when

a. The network contains two or more activities that have identical starting and ending events

b. Two or more activities have different ending events

c. Two or more activities have the same ending events

d. Two or more activities have the same starting events

Answer

Answer: a. The network contains two or more activities that have identical starting and ending events

QN17: Which of the following is a basic assumption of PERT?

a. There is only one complete route from the start of a project to the end of a project

b. No activity in the network must be repeated.

c. Activity completion times are known with certainty

d. Only critical path activities in the network must be performed

Answer

Answer: b. No activity in the network must be repeated.

QN18: PERT analysis computes the variance of the total project completion time as

a. The sum of the variances of all activities on the critical path

b. The sum of the variances of all activities in the project

c. The variance of the final activity of the project

d. The sum of the variances of all activities not on the critical path

Answer

Answer: a. The sum of the variances of all activities on the critical path

QN19: Which of the following managers develop operational plans for the project?

a. Top Managers

b. Middle Manager

c. Line Managers

d. Supervisors

Answer

Answer: c. Line Managers

QN20: Which of the following is a direct responsibility of the project manager?

a. Calculating completion probabilities for all tasks in the project

b. Drawing the network diagram

c. Making sure that the people assigned to the project receive the motivation, direction, and information needed to do their jobs

d. Performing all of the activities in the project

Answer

Answer: c. Making sure that the people assigned to the project receive the motivation, direction, and information needed to do their jobs

QN21: Which of the following is the benefit of the network analysis approach?

a. Derive error free forecasts

b. Eliminate need for management judgement

c. Allows progress to be monitored against pla

d. Avoid need to use structured approach

Answer

Answer: c. Allows progress to be monitored against pla

QN22: A project can be considered to have failed if it

a. Overran significantly on estimated delivery date

b. Does not meet the business requirem

c. Does not meet the users’ requirements

d. Was significantly over budget

Answer

Answer: b. Does not meet the business requirem

QN23: Which of the following is not a reason to reduce project completion time?

a. Reduce new product development time to market

b. Release resources for other projects

c. Avoid penalties for late completion

d. Eliminate project critical path

Answer

Answer: d. Eliminate project critical path

QN24: Which of the following is especially useful for monitoring project progress against plan?

a. Capacity loading graphs

b. Gantt charts

c. Flow diagrams

d. Network diagrams

Answer

Answer: b. Gantt charts

QN25: An individual with a diverse set of skills–management, leadership, technical, conflict management, and customer relationship–who is responsible for initiating, planning, executing, and closing down a project best defines:

a. Chief information officer

b. Consultant

c. Project scheduler

d. Project manager

Answer

Answer: d. Project manager

QN26: Identifying, assessing, and managing the risks and day-to-day changes that occur during a project best defines which of the following project manager activities?

a. Conflict management

b. Risk and change management

c. Team management

d. Customer relations

Answer

Answer: b. Risk and change management

QN27: Optimistic time refers to

a. the maximum period of time for an activity to be completed

b. the minimum period of time for an activity to be completed

c. the planner’s “best guess” of the amount of time the activity actually will require for completion

d. None of the above

Answer

Answer: b. the minimum period of time for an activity to be completed

QN28: Which of the following is not a true statement regarding Network diagrams?

a. The critical path of a Network diagram is represented by the sequence of connected activities that produce the longest overall time period

b. All activities with a slack time equal to zero are on the critical path

c. Nodes not on the critical path can be delayed (for some amount of time) without delaying the final completion of the project

d. The latest expected completion time refers to the time in which an activity can be completed without delaying the project

Answer

Answer: d. The latest expected completion time refers to the time in which an activity can be completed without delaying the project

QN29: An example of a project management system is

a. Word Perfect

b. Microsoft Office

c. Lotus 1-2-3

d. Oracle

Answer

Answer: d. Oracle

QN30: Which of the following slack times indicates that an activity is on the critical path?

a. 1

b. 10

c. 0

d. 2

Answer

Answer: c. 0

QN31: A project manager that dictates all decisions and does not allow for any participation by the workers would be using which leadership style.

a. Passive

b. Participative/democratic

c. Autocratic

d. Laissez-faire

Answer

Answer: c. Autocratic

QN32: The shortest time necessary to complete all of the activities in a network is called the:

a. Activity duration length

b. Critical path

c. Maximum slack path

d. Compression path

Answer

Answer: a. Activity duration length

QN33: The first step in the development of a schedule is a:

a. Listing of the activities

b. Determination of dependencies

c. Calculation of effort3

d. Calculation of durations4

Answer

Answer: a. Listing of the activities

QN34: The calculation of the total cost of a product, from R&D to operational support and disposal, is called:

a. Birth-to-death costing

b. Life-cycle costing

c. Summary costing

d. Depreciation costing

Answer

Answer: b. Life-cycle costing

QN35: Which is the first stage in the project management model?

a. Project definition

b. Understanding the project environment

c. Project control

d. Project planning

Answer

Answer: b. Understanding the project environment

QN36: Successful project management does NOT include which of the following factors?

a. Competent team members

b. Interchangable staff

c. Responsiveness to clients

d. Control mechanisms

Answer

Answer: b. Interchangable staff

QN37: A critical path network diagram does not:

a. Calculate earned-value

b. Help determine the amount of float

c. Calculate the duration of the whole project

d. Identify the particularly important activities

Answer

Answer: a. Calculate earned-value

QN38: Which of the following statements gives the Technical definition of Project Planning?

a. Working out of sub-components in some degree of detail

b. To cover area of government legislation & regulation related to “use of resources”

c. “Planned use of any /all resources”- Succession of five year plans

d. Structured sequence of events leading to desired set of objectives

Answer

Answer: b. To cover area of government legislation & regulation related to “use of resources”

QN39: Which of the following is the responsibility of proposed project manager?

a. Project Plan & strategy

b. Description of Project

c. Organization Development of organizational Chart

d. All of the given

Answer

Answer: d. All of the given

QN40: The main purpose of a ___ is to function as a blueprint for the group’s business operations.

a. Business Plan

b. Scope statement

c. Feasibility Study

d. Work Breakdown Structure

Answer

Answer: a. Business Plan