Question 1

The activity direct costs associated with a project might include giving workers overtime to complete a project in less than the expected time.

Accepted Answer

Direct costs associated with a project may include giving workers overtime pay to complete a project in less than the expected time.

Question 2

Derivative projects have high levels of change.

Accepted Answer

The answer of Derivative projects have high levels of change....

Question 3

Earned value management (EVM) is a technique for measuring project progress in an objective manner.

Accepted Answer

Earned value management (EVM) provides a structured way to measure project progress objectively by integrating scope, schedule, and cost. It compares the current project performance against the baseline plan to identify variances and forecast the project's future status.

Question 4

One of the assumptions made using CPM is that project activities can be identified with clear beginning and ending points.

Accepted Answer

This assumption is necessary for the creation of the network diagram used in CPM, as each activity requires a defined start and end point in order to be properly scheduled and sequenced.

Question 5

Breakthrough projects are those that provide fundamental improvements to existing products.

Accepted Answer

Breakthrough projects involve creating entirely new products or technologies, not just improving existing ones.

Question 6

Derivative projects are those that address incremental changes to products or processes.

Accepted Answer

Derivative projects are indeed those that address incremental changes to products or processes. They aim to improve existing products or processes by making small modifications or enhancements, rather than creating entirely new ones.

Question 7

Functional projects have high levels of team member motivation.

Accepted Answer

In functional projects, team members typically report to a functional manager and the project manager has limited authority, which can lead to lower levels of team member motivation due to less direct involvement and recognition in the project.

Question 8

You are managing a project and need to cut the cost of the project. You decide to transfer workers to another job to cut the project's costs. Costs associated with transferring the workers are an example of project indirect costs.

Accepted Answer

Costs associated with transferring workers are considered direct costs because they can be directly attributed to a specific project activity or task.

Question 9

The project indirect costs associated with a project include overhead, facilities, and resource opportunity costs.

Accepted Answer

Indirect costs refer to expenses incurred for the project that cannot be directly attributed to a particular activity or work package. Examples of indirect costs are overhead expenses, facilities expenses, and the cost of lost opportunities for resources used in the project such as equipment or staff.

Question 10

Calculating the early start and early finish times for each activity in a CPM analysis does not provide any useful information.

Accepted Answer

Calculating the early start and early finish times for each activity in a CPM analysis is crucial for determining the critical path and identifying the activities that have no slack or float. This information can help project managers to understand which activities need to be closely monitored and managed to ensure that the project is completed on time.

Question 11

In the time-cost CPM model, cost is assumed to be a linear function of time.

Accepted Answer

In the time-cost CPM model, cost is assumed to increase linearly with time due to factors such as labor costs, material costs, and overhead costs.

Question 12

With a pure project, team members report to multiple managers.

Accepted Answer

In a pure project organizational structure, team members report to the project manager, not multiple managers.

Question 13

One of the assumptions made using CPM is that project activity sequence relationships can be specified and networked.

Accepted Answer

This is one of the fundamental assumptions of CPM (Critical Path Method), where activities are identified and their sequence relationships are established to form a project network or diagram.

Question 14

Earned value management (EVM) has the capability to combine measurements of scope, schedule, and cost in a project.

Accepted Answer

Earned value management (EVM) does indeed have the capability to integrate measurements of scope, schedule, and cost in a project. This allows for a more comprehensive analysis of project progress and performance.

Question 15

The critical path in a CPM analysis is found by locating the activities times with zero slack.

Accepted Answer

The critical path in a CPM analysis is the path of activities with the longest total duration, which is usually found by locating the activities with zero slack.

Question 16

The valuations in an earned value management analysis must be either profits or revenue.

Accepted Answer

The valuations in an earned value management analysis must be either actual cost or budgeted cost. Earned value is the budgeted cost of work performed, while actual cost is the actual cost incurred for the work performed. Profit or revenue may be used as performance measures, but they are not the valuations used in earned value management analysis.

Question 17

Pure projects suffer from duplication of resources.

Accepted Answer

Pure projects involve resources being dedicated entirely to one project, which can lead to duplication of resources and inefficiencies.

Question 18

A project milestone is a specific event to be reached by a particular point in time.

Accepted Answer

A project milestone is a specific event to be reached by a particular point in time within a project schedule.

Question 19

Using the time-cost CPM model, the crash time is the shortest possible time allowed for each activity in the project.

Accepted Answer

This statement is true. The crash time is the minimum duration that an activity can be completed in by expending additional resources or by other expedited methods. It is used in the time-cost CPM model to determine the minimum cost required to complete the project within a certain time frame.

Question 20

When reducing the planned duration of a project using the time-cost CPM model, we select the activity to crash by determining the cost of each alternative and selecting the one whose cost is the greatest.

Accepted Answer

When reducing the planned duration of a project using the time-cost CPM model, we select the activity to crash by determining the cost of each alternative and selecting the one whose cost is the lowest, not the greatest.

Quiz 4: Projects