CPM and PERT MCQ'S

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 1. The numbering of the nodes in A-O-A is done 

A.From left to right

B.From Right to Left

C.Randomly

 D.On the basis of the duration of the activity

2.Which of the following is not the part of Risk Control

A.Execution of the risk response strategy

B.Monitoring of triggering events

C.Initiating contingency plans

D.Not watching for new risks

3. Conflict occurrence in projects is

A.Unavoidable

B.Depend on type of project

C.Avoidable

D.Depends on culture

4. Outsourced projects are susceptible to conflicts as

A.People get less pay in these projects and work is more

B.More work pressure and less time horizon

C.These projects are away from home location

D.People are unaccustomed to working together and have different values 

5. Who creates the project team?

A. Factory manager

B. Operation manager

C. Project manager

D.Purchase Manager

6. Project Manager must ensure that it develops appropriate trade off/s as

A. Time, cost and performance

B. Time, value and performance

C.Men, Materials and Machines

D.Money, Cost and Return on Investment

7. Who orchestrate the completion of the project by inducting the right people at the right 

time to address the right issue and make the right decisions?

A.Project Coordinator

B.Project Manager

C.Operations Manager

 D.Strategic Business Unit Head

8.In which stage of team development, team members are worried about how they fit in with 

the others and how their capabilities and skills compare. 

A.Norming

B.Storming

C.Forming 

D.Performing

9.Which of the following represents the estimated value of the work actually accomplished?

A. Earned value (EV)

B. Planned value (PV)

C. Actual cost (AC

D. Cost variance (CV)

10.schedule performance index (SPI) of 0.76 means:

A. You are over budget

B. You are ahead of schedule

C. You are only progressing at 76 percent of the rate originally planned

D. You are only progressing at 24 percent of the rate originally planned

11. A cost performance index (CPI) of 0.89 means:

A. At this time, we expect the total project to cost 89 percent more than planned

B. When the project is completed we will have spent 89 percent more than planned

C. The project is only progressing at 89 percent of the rate planned

D. The project is only getting 89 cents out of every dollar invested

12. The cash inflows and (outflows) associated with a project are as follows:

At start (120000) , Year1-40000, Year2-50000, Year3-60000, Residual Value(at the end of

3rd year)-20000. The payback period for this project would be:

A 2 years and 3 months.

B 2 years and 6 months.

C 3 years.

D 2 years.

13: A Firm is considering undertaking a project that would yield annual profits (after

depreciation) of Rs 68,000 for 5 years. The initial outlay of the project would be Rs 800,000

and the project's assets would have a residual value of Rs 50,000 at the end of the project.

What would be the accounting rate of return for this project?

A 16%

B 8.5%

C 8.0%

D 9.1%

14.A firm is about to undertake a project and has computed the NPV of the project using a

variety of discount rates:

Discount Rate used NPV

10% 130

15% 50

20% -50

What is the approximate IRR of this project?

A 20%

B 17.5%

C 15%

D 22.5%

15. A project has a 60% chance of a $100,000 profit and a 40 per cent of a US $100,000 loss.

The Expected Monetary Value for the project is

A. $100,000 profit

B. $60,000 loss

C. $ 20,000 profit

D. $40,000 loss

16. In a payback period method of project evaluation and appraisal the project with

……………….or equal to cut off period will be accepted.

A. More than

B. Less than

C.Positive

D. Negative

 17. A project with total budget cost of 30 crores is scheduled to be completed in 80 weeks.

A periodic review was carried out at end of 60 weeks and results are as given:

Budgeted cost of work performed (EV) = 17 crores

Actual Cost of work performed (AC = 19 crores

Budgeted cost of work scheduled (PV) = 21 crores

What is the cost performance index?

A.0.895

B.0.81

C.0.90

D.1.12

18. In which of the following cases project is in better shape?

A.When both CPI and SPI are less than 1

B.When CPI is more than 1 and SPI is less than one

C.When CPI is less than one and SPI is more than one

D.When bot see CPI and SPI are more than one

19. A company is considering investing surplus funds in a project. Calculate the NPV at 10 % 

discount rate for the following data

Project Year 0 Year 1 Year 2

A (100) 100 100

A. 73.5

B. 173.5

C. 273.5

D. 100

20. Amount of work completed to date compared with planned in the Earned Value 

Management method is 

A. Schedule Performance Index

B. Cost Performance Index

C. Percentage Complete

D .Percentage Spent

21. The budgeted cost for all the activities in a project with the help of Earned Value Method 

is 

A. Actual Cost

B. Budget at completion

C. Budget for completion

D. Estimate at completion

22. The payback period is the period 

A. a project takes to pay back the loan taken to purchase the capital assets

B. equal to the useful life of the machines

C. a project takes to recover its initial cash outflow

D. over which the project will be getting operating cash inflows

23. Net Present Value of a machine is

A. PV of cash inflows less cost of investment

B. PV of cash inflows ÷ cost of investment

C. PV of net profit after tax less cost of investment

D.PV of cash inflows less average cost of investment

24. If you would like to see a list of resources and the tasks that people are assigned to. What

view best displays this information?

A. Resource Sheet

B. Task Usage

C. Gantt Chart

D.: Resource Usage

 25: What is the default view of a new project in MS project?  

A. Gantt View

B. Resource Graph

C. Network View

D.: Workbook View


               ANSWERS

Q1. A Q2.D Q3.A Q4.D Q5.C 

Q6.A Q7.B Q8.C Q9.A Q10.C 

Q11.D Q12. B Q13.A Q14.B Q15.C 

Q16.B Q17.A Q18.D Q19.A Q20.C

Q21.D Q22.C Q23.A Q24.C Q25.A

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