1. The new dock would require 24 piers to support it and it was known that each time a pier is sunk into the harbor it would take 300 man hours of labor at $25 per hour. An activity-based costing of the entire pier system results in a total cost of how much?
2. A budget containing disaggregated figures across the schedule when work is planned is a ____________ budget.
3. Which of the following is not contained in a typical time-phased budget?
a. total expenses for each activity
b. total expenses for each time unit
c. cumulative expenses for each time unit
d. cumulative time for each expense
4. Contingency money is _____________.
a. the money that must be received before any project work can begin
b. money that is spent first to lock-in all contract guarantees
c. not usually a part of the activity-based costing process
d. valued at a higher rate than noncontingency money when determining project costs
5. It was fortunate that the project budget included contingency funding; the top manager had not foreseen that the project would need the services of their elite slide rule squad in more than one area at the same time. Design couldn’t complete their work without their services, nor could marketing or production. Contingency funds came in handy to meet the unanticipated_____________.
a. change in project scope
b. abnormal project conditions
c. consequences of Murphy’s Law
d. interaction costs
6. After years of tinkering and reverse engineering initiatives, Kimray had finally unlocked the secrets of the Beta tape format. A quick trip to the rental store was an epiphany for company leadership when they realized that only a handful of Beta tapes were available; the rest of the world had adopted the VHS format seemingly overnight. Now they would have to buy a few of those newfangled VHS machines to see how they ticked. The contingency funds that management had set aside would be put to good use on this _____________.
a. change in project scope
b. abnormal condition
c. unanticipated interaction cost
d. latest evidence of Murphy’s Law
7. An early warning signal for the potential of an overdrawn budget is created when _____________.
a. activity-based costing cannot identify drivers
b. a bottom-up budget never makes it up the chain of command
c. contingency funds are applied for
d. a top-down process moves too quickly down to the functional managers
8. An activity has an optimistic time estimate of 15 days, a most likely estimate of 24 days and a pessimistic estimate of 40 days. What is the expected duration of the activity?
a. less than 27 days but greater than or equal to 26 days
b. less than 26 days but greater than or equal to 25 days
c. less than 25 days but greater than or equal to 24 days
d. less than 24 days
9. An activity has an optimistic time estimate of 15 days, a most likely estimate of 24 days and a pessimistic estimate of 40 days. What is the variance of the activity?
10. An activity has an optimistic time estimate of 7 days, a most likely estimate of 12 days and a pessimistic estimate of 20 days. What is the expected duration of the activity?
a. 13 days
b. 13.5 days
c. 12 days
d. 12.5 days
11. Serial activities are those that _____________.
a. flow from one to the next in sequence
b. have sequential numbers
c. have the same numbers
d. should be performed simultaneously
12. Concurrent activities are activities that ______________.
a. must be done one after the other
b. can be performed at the same time
c. use labor from the same group of workers
d. use resources from the same resource pool
13. The amount of time an activity may be delayed from its early start without delaying the finish of the project is the _____________.
c. late start
d. late finish
14. The least amount of float is found _____________.
a. in a resource-limited schedule
b. after a burst activity
c. on the critical path
d. after a merge activity
15. A project’s duration can be reduced by ______________.
a. shortening the duration of critical path tasks
b. adding tasks to the critical path
c. adding shorter routes around the critical path
d. completing the backward pass first
16. The best candidate activities for shortening the overall project are the ______________ tasks.
17. Which technique would accelerate the completion of a project?
18. In order to reduce the length of a project, it would be wise to shorten the ____________.
a. project activity that costs the least to speed up
b. project activity that can be sped up by the greatest amount
c. critical path activity that can be sped up by the greatest amount
d. critical path activity that costs the least to speed up
19. The most common method for shortening activity durations involves the decision to_____________.
a. eliminate bureaucracy
b. alter the technology used in the activity
c. assign more senior personnel to the activity
d. increase project resources
20. An activity performed by a subcontractor is scheduled for 20 weeks at an anticipated cost of $100,000. Due to slippage on the critical path, you need to reduce this activity by three weeks. If the subcontractor informs you that the activity can be completed in 15 weeks for $200,000, what is the slope for the activity?
a. $20,000 per week
b. $33,333 per week
c. $5,000 per week
d. $13,333 per week
21. A 14-week construction activity requires a crane that rents for $1000 per week and a crew of general laborers that costs $5000 per week. In order to complete this activity within 10 weeks, you must hire additional general laborers at a cost of $2000 per week. What is the slope for this activity?
a. $0 per week
b. $1000 per week
c. $2000 per week
d. $6000 per week
22. What information is not included in the nodes for an AOA network?
b. early start time
c. late finish time
d. early finish time
23. Dummy activities have a duration equal to the _____________.
a. slack on the critical path
b. length of the predecessor
c. length of the successor
d. lag needed to preserve network logic
24. A complex project that is managed using a top-down, bottom-up approach to network diagrams means that _____________.
a. management’s top-down portion of the network contains the greatest detail
b. bottom-up information means that top management isn’t aware of the project until it is completed.
c. the top tier summary network does not give top management the basis for understanding the actual development of the project
d. the bottom level information cannot be understood by those performing the actual work.
25. Networks would not be well suited for planning _____________.
a. a construction project
b. a wedding
c. a software upgrade
d. monthly production