Question 1

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

Accepted Answer

Cost estimation is the process used to predict the costs of an activity or project based on the analysis of past data and unrelated levels of activity. It involves analyzing historical data to forecast future costs, making it the correct choice for measuring relationships based on unrelated levels of activity and past data of cost.

Question 2

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

Accepted Answer

A

Question 3

The latest finish time for an activity:

Accepted Answer

The latest finish time (LFT) for an activity equals the minimum of the latest start time (LST) minus the activity duration (t) for all immediate successors. This ensures that the activity does not delay any subsequent activities in the project schedule.

Question 4

Which of the following statements is true?

Accepted Answer

PERT (Program Evaluation and Review Technique) is indeed a probabilistic technique because it accounts for uncertainty in project scheduling by using three time estimates (optimistic, most likely, and pessimistic) for each activity. On the other hand, CPM (Critical Path Method) is a deterministic approach as it uses a single, fixed time estimate for each activity, assuming that the duration is known with certainty.

Question 5

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

Accepted Answer

Treasury costs include the expenses related to financing activities, such as the costs incurred to finance the construction of new equipment. These costs can involve interest payments, fees for arranging financing, and other related expenses.

Question 6

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

Accepted Answer

Project selection is the process of evaluating and choosing projects or groups of projects to undertake. It involves assessing the potential benefits, costs, risks, and alignment with strategic goals to determine which projects to pursue.

Question 7

Nature of interrelationships between components in a system defines the

Accepted Answer

The nature of interrelationships between components in a system defines its structure. The structure of a system is determined by how its parts are interconnected or organized, rather than by the individual characteristics of its components or the external conditions it operates in.

Question 8

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

Accepted Answer

The answer of Listing goals of each existing and proposed...

Question 9

For any project word objective is held to be synonymous with

Accepted Answer

An objective in project management is considered a fact because it is a specific, measurable, achievable, relevant, and time-bound statement that guides the project's direction and outcomes. Unlike options, opinions, or assumptions, an objective is a defined and factual goal that the project aims to achieve.

Question 10

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

Accepted Answer

Team is not considered one of the traditional constraints in project management. The classic project constraints include scope, resources, and budget, often referred to as the project management triangle or triple constraint.

Question 11

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

Accepted Answer

The cost associated at the beginning of a project is not necessarily the highest; it typically increases as the project progresses and more resources are required. Stakeholders do have significant influence early on, and uncertainty is indeed highest at the initial stages.

Question 12

Which is the first stage in the project management model?

Accepted Answer

Understanding the project environment is the first stage in the project management model as it involves gathering information about the project's stakeholders, market, and other external factors that may affect the project's success.

Question 13

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

Accepted Answer

Control mechanisms are not typically part of a hierarchy of objectives in project definition. They are rather methods or systems used to manage, monitor, and ensure the project's progress and success, not objectives themselves.

Question 14

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

Accepted Answer

All of the options listed are factors that influence project selection. Perceived and real needs help determine the necessity and priority of a project. The list of potential and ongoing projects provides insight into what resources are already committed and what opportunities are available. The current organizational environment, including its culture, resources, and constraints, affects the feasibility and desirability of undertaking specific projects.

Question 15

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

Accepted Answer

The primary deliverable from the project identification and selection phase is a schedule of specific IS development projects, which outlines the projects that have been identified and selected for development.

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?

Accepted Answer

Resource availability refers to the amount and type of resources a project requires and whether those resources are available. This is a key factor in classifying and ranking projects, as it directly impacts the feasibility and potential success of a project.

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?

Accepted Answer

Strategic alignment refers to how well a project aligns with the strategic goals and objectives of an organization, indicating its relevance and potential contribution to long-term success.

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

Accepted Answer

Examining several alternative solutions during feasibility analysis ensures that a cost-effective solution is chosen and mitigates the risk of proceeding with a pre-conceived solution that may turn out to be unimplementable.

Question 19

Goals are identified by

Accepted Answer

The answer of Goals are identified by
...

Question 20

By technical feasibility of a solution we mean that

Accepted Answer

Technical feasibility refers to the availability of technology required to implement a solution.

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