Deck 9: Cost, Risk, and Project Selection in Project Management

Question 1

Relationship based on unrelated level of activity and past data of cost is measured with help of

A)cost estimation
B)price estimation
C)unit estimation
D)production estimation

Answer 1

cost estimation

Question 2

In estimation of cost functions, variations in a single activity level represents the

A)related total costs
B)related fixed cost
C)related variable cost
D)related per unit cost

Answer 2

related total costs

Question 3

The latest finish time for an activity:

A)Equals the min. of LFT ? t for all immediate successors
B)Equals the max. of LFT ? t for all immediate predecessors.
C)Equals the max. of EST + t for all immediate predecessors.
D)Equals the min. of EST + t for all immediate successors.

Answer 3

Equals the min. of LFT ? t for all immediate successors

Question 4

Which of the following statements is true?

A)PERT is considered as a deterministic approach and CPM is a probabilistic techniques.
B)PERT is considered as a probabilistic techniques and CPM is considered as a deterministic approach.
C)PERT and CPM are both probabilistic techniques.
D)PERT and CPM are both considered as deterministic approachs.

Question 5

In corporate costs, cost incurred to finance construction of new equipment are classified as

A)treasury costs
B)discretionary costs
C)human resource management costs
D)corporate administration costs

Question 6

Evaluation process of proposed projects or groups of projects is known as:

A)Project Analysis
B)Project Compilation
C)Project selection
D)Project Documentation

Question 7

Nature of interrelationships between components in a system defines the

A)Function of system
B)Structure of system
C)Environment of system
D)Platform of system

Question 8

Listing goals of each existing and proposed project is first step in

A)Data Collection
B)Establishment of Project council
C)Prioritizing the projects
D)Identification of project categories

Question 9

For any project word objective is held to be synonymous with

A)Fact
B)Option
C)Opinion
D)Assumption

Question 10

Which of these is not one of the constraints of a project?

A)Scope
B)Resources
C)Team
D)Budget

Question 11

Which of the following is not correct about initial phase of a project?

A)The cost associated at the beginning of the project is highest.
B)Stakeholders have maximum influence during this phase
C)The highest uncertainty is at this stage of the project.
D)All the above statements are correct.

Question 12

Which is the first stage in the project management model?

A)Understanding the project environment
B)Project definition
C)Project control
D)Project planning

Question 13

A clear hierarchy of objectives in the project definition would NOT normally contain:

A)The purpose
B)An End result
C)Success criteria
D)Control mechanisms

Question 14

Which of the following is a factor that influences project selection?

A)Perceived and real needs
B)List of potential and ongoing projects
C)Current organizational environment
D)All of the above

Question 15

The primary deliverable from the project identification and selection phase is a:

A)schedule of specific IS development projects.
B)Statement of Work.
C)mission statement.
D)design strategy.

Question 16

When classifying and ranking projects, which of the following refers to the amount and type of resources the project requires and their availability?

A)Value chain availability
B)Business placement
C)Resource availability
D)Potential benefits

Question 17

When classifying and ranking projects, which of the following refers to the extent to which the project is viewed as helping the organization achieve its strategic objectives and longterm goals?

A)Resource availability
B)Business placement
C)Strategic alignment
D)Potential benefits

Question 18

During feasibility analysis it is necessary to examine several alternative solutions because
(i) a comparison of alternatives will lead to a cost-effective solution
(ii) a pre-conceived single solution may turn out to be unimplementable
(iii) it is always good to examine alternatives
(iv) management normally looks at alternatives

A)i and iii
B)i and iv
C)i and ii
D)ii and iv

Question 19

Goals are identified by

A)discussion with all concerned
B)pinpointing unsatisfactory performance
C)finding poor management
D)examining a variety of documents

Question 20

By technical feasibility of a solution we mean that

A)technology is available to implement it
B)persons are available to implement it
C)persons have technical ability to implement it
D)funds are available to implement it

Question 21

By operational feasibility we mean

A)the system can be operated nicely
B)the system is unusable by operators
C)the system can be adapted by an organization without major disruptions
D)the system can be implemented

Question 22

By economic feasibility of a system we mean that

A)it is economical to operate
B)it is expensive to operate
C)it will be cost-effective if implemented
D)finances are available to implement the system and it will be cost - effective