Project Management: Mock 1

Q 1. What is a work breakdown structure?

A) A Gantt Chart B) An ordered list of project tasks, sub-tasks, and work packages
C) Activity Chart D) A list of the activities making up the higher levels of the project

Q.2 Which of these is NOT part of the "technical dimension" of project management?
A) Budgets B) Work Breakdown Structure
C) Problem Modelling D) Schedules

Q.3. -----------are used to represent activity in a network diagram.

A) Rectangles B) Arrows
C) Squares D) Circles

Q.4 For completion of a project, the critical path of the network represents

A) Minimum cost B) Maximum time

C) Maximum cost D) Minimum time

Q.5 Which of the following is NOT typical of a project manager?

A) Managing a temporary activity B) Overseeing existing operations
C) Managing a non-repetitive activity
D) Responsible for Time, Cost and Performance Trade-Offs

Q.6 Assembling project team and assigning their responsibilities are done during which phase of
a project management?
A) Initiation B) Planning
C) Execution D) Closure

Q.7.For an activity in a project, optimistic time is 2 days; most likely time is 3 days and
pessimistic time is 6 days. The estimated time in days is
A) 2/6 B) 20/6
C) 11/6 D) 5/6
Q.8.Select the incorrect statement.
A) A critical path always begins at the very first event.
B) A critical path always terminates at the last event.
C) Critical activities control the project duration.
D) Critical activity is the one for which free float is zero.
Q.9. Free float for any activity is defined as the difference between
A) its earliest finish time and earliest start time for its successor activity
B) its latest start time and earliest start time
C) its latest finish time and earliest start time for its successor activity
D) its earliest finish time and latest start time for its successor activity

Q.10.Interfering float is the difference between

A) total float and free float B) total float and independent float
C) free float and independent float D) none of the above

Q.11 Gantt charts are used for streamlining the

A) Inventory control B) Production schedule
C) Sales forecasting D) Quality control

Q.12 Which of the project management technique is probabilistic model

A) CPM – Critical Path Method B) WBS - Work Breakdown Structure

C) Gantt Chart D) PERT – Project Evaluation and Review Technique

Q 13.A _________determines how tasks and resources assigned to these tasks are scheduled.
A) Schedule B) Exception Plan
C) Calendar D) Resource Pool

Q 14. The past demand for 6 months is given for a product.

Month 1 2 3 4 5 6
Demand 34 29 27 36 34 32

Calculate the estimated sales for 7th month using Moving Average method with period 2.
A) 28 B) 32
C) 33 D) 34

Q.15.The criteria for acceptance of a project based on Net Present Value Method (NPV) is
A) NPV should be negative B) NPV should be positive
C) NPV should be zero D) None of these

Q.16. Which of the following represents the estimated value of the work accomplished?
A) Earned value (EV) B) Planned value (PV)
C) Actual cost (AC) D) Cost variance (CV)
 Q.17.Project costs are over budget when
A) CPI > 1. B) CPI < 1.
C) CPI < 0. D) SPI = 1.

Q.18. Your actual cost is 155 and your earned value is 170. What is your cost variance?
A) 15 B)-15
C) 162.5 D) -155

Q.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

Q.20. Depreciation is incorporated in cash flows because it

A) Is an unavoidable cost B) Is a cash flow
C) Reduces tax liability D) Involves an outflow

Q.21.Formula for Independent Float is

A) FF - Slack of Head Event B) TF - slack of Head Event
C) TF - slack of Tail Event D) FF - slack of Tail Event

Q.22. If an investment project has a profitability index of 1.15 the

A) Projects Internal Rate of Return is 15%
B) Projects cost of capital is greater than its internal rate of return
C) Projects internal rate of return exceeds its net present value
D) Net present value of the project is positive

Q.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

Q.24.Following was determined for an activity

Optimistic Time = 4 days Pessimistic Time = 12 days
Most likely time = 5 days What will be the average time for activity?
A) 7 days B) 6 days
C) 8 days D) 5 days
Q.25. --------------------is a method used to determine the current value of all future cash flows
generated by a project, including the initial capital investment.

A) Net project value B) Net present value

C) Net cost value D) Net asset value

Q.26.In bar charts, which color is used to show the actual progress?

A) Red B) Green

C) Blue D) Yellow

Q.27.What is the present value of Rs 520,000 expected to be received in three years' time, if the
business concerned requires a return of 10% on sums invested?
A) 692000 B) 432000
C) 473000 D) 390000

Q.28.A project with total budget cost of 20 crores is scheduled to be completed in 40 weeks. A
periodic review was carried out at end of 20 weeks and results are as given:
Budgeted cost of work performed (EV) = 10 crores
Actual Cost of work performed (AC) = 11 crores
Budgeted cost of work scheduled (PV) = 9 crores
What is the expected cost of completion?

A) 25 crores B) 22 crores
C) 19 crores D) 21 crores

Q.29 Which one of the following is a valid project Key Performance Indicator (KPI)?
A) Staff appraisals. B) Management buy in.
C) Milestone achievement. D) Master schedule.

Q.30 Who has ultimate responsibility for project risk?

A) Steering group. B) Risk owner.
C) Project sponsor. D) Project manager.
 Project Management: Mock 2
Q1) Which of the following is not a phase of Project management
a) Project Planning b) Project Scheduling
c) Project controlling d) Project Being

Q2) Who introduced bar charts?

a) William Henry b) Henry Gantt
c) Jane Gantt d) Joseph Henry

Q3) The full form of PERT is

a) Program Evaluation and Rate Technology b) Program Evaluation and Robot Technique
c) Program Evaluation and Robot Technology d) Program Evaluation and Review
Technique

Q4) The full form of CPM is

a) Critical Path Method b) Control Path Method
c) Critical Plan Management d) Control Path Management

Q5) In bar charts which colour is used to show the actual progress
a) Red b) Black
c) Blue d) Green

Q6) ___________ are used to represent activity in a network diagram

a) Circles b) Squares
c) Rectangles d) Arrows

Q7) According to the time estimates made by the PERT planners the maximum time that would
be needed to complete an activity is called
a) The most likely time estimate b) Optimistic time estimate
c) Pessimistic time estimate d) Expected time estimate

Q8) The difference between the maximum time available and the actual time needed to perform
an activity is known as
a) Free Float b) Independent Float
c) Total Float d) Half Float

Q9) The particular task performance in CPM is known as

a) Dummy b) Event
c) Activity d) Contract
Q10) A project whose cash flows are more than the capital invested for Rate of Return then the
Net Present Value will be
a) Positive b) Independent
c) Negative d) Zero

Q11) Which of the following is not incorporated in capital budgeting?

a) Tax Effect b) Time Value of Money
c) Required Rate of Return d) Rate of Cash Discount

Q12) Capital Budgeting is a part of

a) Investment Decision b) Working Capital Management
c) Marketing Management d) Capital Structure

Q13) Which of the following does not affect cash flows proposal?
a) Salvage Value b) Depreciation Amount
c) Tax Rate Change d) Method of Project Financing

Q14) 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

Q15) 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

Q16) Which of the following is not a forecasting technique?

a) Judgmental b) Time Series
c) Time Horizon d) Associative

Q17) Depreciation is incorporated in cash flows because it

a) is a unavoidable cost b) is a cash flow
c) reduces tax liability d) involves an outflow

Q18) If an investment project has a profitability index of 1.15 the

a) projects Internal Rate of Return is 15%
b) projects cost of capital is greater than its internal rate of return
c) projects internal rate of return exceeds its net present value
d) net present value of the project is positive
Q19) The NPV of a project has been calculated to be Rs.2,15,000. Which one of the following
changes in assumptions would decrease the NPV?
a) Decrease the estimated effective income tax rate
b) Decrease the initial investment amount
c) Extend the project life and associated cash inflows
d) Increase the discount rate

Q20) Cash inflows for capital budgeting decisions mean

a) Accounting profit - Depreciation + Tax b) Accounting profit + Tax - Depreciation
c) Accounting profit – Tax + Depreciation d) Accounting profit – Depreciation - Tax

Q21) The pay back 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

Q22) 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

Q23) In pay back period method the annual cash inflows means __________
a) Net Income after Tax b) Net Income before Tax
c) Net Income before Depreciation but after Tax d) Net Income after Tax and Depreciation

Q24) If the Earned Value is equal to actual cost it means

a) Project is on budget and on schedule b) Schedule variance index is 1
c) There is no schedule variance d) There is no cost variance

Q25) Which of the following types of organizational charts can be best used to track project cost
a) Hierarchical type organizational chart b) Organizational breakdown structure
c) Resource breakdown structure d) Responsibility assignment matri
 Project Management: Mock 3
Q1. According to the Project Management Institute (PMI), the five phases of project
management include initiation, planning, ------------, performance monitoring, and project close.
A) Execution B) Designing
C) Plotting D) Solution

Q2. Resource requirement in project becomes constant while the project is in its _____ progress
stage.
A) 40 to 55% B) 55 to 70%
C) 70 to 80% D) 80 to 95%

Q 3.A review undertaken to decide whether a project should proceed into its next phase is known
as
A) Gate review B) Feasibility study
C) Milestone review D) Evaluation review

Q 4. Which among these is not a principle of Project Management?

A) Vision and Mission B) Business Objectives
C) Standards of Engagement D) Arranging funds for the project

Q 5.A _________determines how tasks and resources assigned to these tasks are scheduled.
A) Schedule B) Exception Plan
C) Calendar D) Resource Pool

Q 6. The past demand for 6 months is given for a product. Month 1 2 3 4 5 6 Demand 34 29 27
36 34 32 Calculate the estimated sales for 7th month using Moving Average method with period
2.
A) 28 B) 32
C) 33 D) 34

Q 7. What is a work breakdown structure?

A) A Gantt chart
B) A list of the activities making up the higher levels of the project
C) An ordered list of project tasks, sub-tasks and work packages
D) Activity Chart

Q 8.Forecast for last month was 50. Sales achieved was 60. Using exponential smoothing
method calculate forecast for current month with α = 0.2
A) 48 B) 58
C) 52 D) 55
Q.9 s-curve in project management is typically used to track the progress of a project in terms of
- -----------
A) Labor and time B) Landmarks
C) Project design D) Shortcomings

Q.10 Governance of all project management processes and procedures helps provide senior
management with all of the following EXCEPT
A) A method to ensure projects that are important to senior management are being implemented
B) An assessment of the risk their portfolio of projects represents
C) An overview of all project management activities
D) A metric to measure the improvement of managing projects relative to others in the industry

Q.11 Which of these is NOT part of the "technical dimension" of project management?
A) WBS B) Budgets
C) Problem solving D) Schedules

Q.12 Corporate downsizing has increased the trend toward

A) Reducing the number of projects a company initiates
B) Outsourcing significant segments of project work
C) Using dedicated project teams
D) Shorter project lead times

Q.13 Which of the following is NOT typical of a project manager?

A) Managing a temporary activity B) Overseeing existing operations
C) Managing a non-repetitive activity D) Responsible for time, cost and performance trade-offs

Q.14 Which of the following statements is true?

A) Project management is far from a standard way of doing business
B) Project management is increasingly contributing to achieving organizational strategies
C) Project management is being used at a consistent percentage of a firm’s efforts
D) Project management is a specialty that few organizations have access to

Q.15 Assembling project team and assigning their responsibilities are done during which phase
of a project management?
A) Initiation B) Planning
C) Execution D) Closure

Q.16 A process that involves continuously improving and detailing a plan as more detail become
available is termed as
A) Project analysis B) project enhancing
C) progressive deliberation D) progressive elaboration
Q.17 Which of the following is not considered as a risk in project management?
A) Specification delays B) Product competition
C) Testing D) Staff turnover

Q.18 The process each manager follows during the life of a project is known as
A) Project Management B) Manager life cycle
C) Project Management Life Cycle D) Risk Management

Q.19 Project risk management is best described as:

A) Managing responses to threats.
B) Identifying and acknowledging threats and opportunities.
C) Planning responses to threats.
D) Minimising threats and maximising opportunities.

Q.20 Which one of the following is a valid project Key Performance Indicator (KPI)?
A) Staff appraisals. B) Management buy in.
C) Milestone achievement. D) Master schedule.

Q.21 Which one is a true statement relating to project communications?

A) A project sponsor is responsible for all communication methods and media
B) Different stakeholders typically have different communication needs.
C) It is best to have a standard set of project reports used for every project.
D) Email is the only way to communicate with large numbers of people.

Q.22 Which one of the following is captured in the Work Breakdown Structure (WBS)?
A) The life cycle phases. B) The logical order of tasks.
C) The scope of the project. D) Project costs.

Q.23 An important aim of a post-project review is to:

A) Validate overall progress to date against the budget and schedule.
B) Capture learning and document it for future usage.
C) Ensure acceptance of all permanent documentation, signed by the sponsor.
D) Establish that project benefits have been identified

Q.24 Which one of the following best describes project success criteria?
A) Actively seeking some senior management support. B) Measures by which the success of the
project is judge C) Achievement of milestones. D) A motivated project team.

Q.25 Who has ultimate responsibility for project risk?

A) Steering group. B) Risk owner.
C) Project sponsor. D) Project manager
 Project Management: Mock 4
Q.26 When a project has completed the handover and closure phase:
A) The project deliverables are ready for commissioning.
B) The project deliverables are ready for handing over to the users.
C) The project documentation must be disposed of.
D) The capability is now in place for the benefits to be realised

Q.27 The main aim of a project risk management process should be to:
A) Identify project risks and then manage them appropriately.
B) Identify all project risks and transfer them immediately.
C) Identify all the things that are threats or opportunities on a project.
D) Satisfy the organisation’s project management process.

Q.28 What is a visual representation of a project’s planned activities against a calendar called?
A) A Gantt chart. B) A critical path network.
C) A product flow diagram. D) A Pareto chart.

Q.29 Which one of the following statements best defines teamwork?

A) People working collaboratively towards a common goal.
B) Developing skills that will enhance project performance.
C) Gathering the right people together to work on a project.
D) Establishing vision and direction towards a common purpose.

30.. Which one of the following is captured in the Work Breakdown Structure (WBS)?
A) The life cycle phases B) The logical order of tasks
C) The scope of the project D) Project costs

Q.31.Profitability index (PI) decision rule states that if PI < 1, then -------------
A) Accept the project B) Reject the project
C) Review the project D) Project is justifiable

Q.32.Which of the following activities would NOT be an appropriate way of crashing a project?
A) Reducing quality B) Working overtime
C) Adding further resources D) Sub-contracting

Q.33.Crashing is starts with the critical activity having minimum ----------------

A) Normal cost B) Crash time
C) Crash cost D) Crash Slope
Q.34. In crashing process ‘minimum time’ is reached when
A) All paths are crashed completely B) At least one path is crashed completely
C) Optimality is reached D) Further crashing is more than the budget estimate

Q.35.For an activity in a project, optimistic time is 2 days; most likely time is 3 days and
pessimistic time is 6 days. The estimated time in days is
A) 3/8 B) 20/6
C) 11/6 D) 5

Q.36. A project whose cash flows are more than the capital invested for Rate of Return then the
Net Present Value will be
A) Positive B) Independent
C) Negative D) Zero

Q.37. Which of the following is not incorporated in capital budgeting?

A) Tax Effect B) Time Value of Money
C) Required Rate of Return D) Rate of Cash Discount

Q.38.Formula for Independent Float is

A) FF - slack of Tail Event B) FF - Slack of Head Event
C) TF - slack of Head Event D) TF - slack of Tail Event

Q.39.Interfering Float can be found out by

A) Adding Free Float to Total Float
B) Deducting Free Float from Total Float
C) Deducting Free Float from Independent Float
D) Deducting Total Float from Independent Float

Q.40.Which activity is to be selected for crashing

A) The activity with highest incremental cost of critical path
B) The activity with lowest incremental cost on Critical path
C) The activity with the lowest cost irrespective of it being on Critical path or no
D) The activity with the highest cost irrespective of it being on Critical path or no

Q.41.While crashing the projects this type of float is considered

A) Free Float B) Interfering Float
C) Independent Float D) Total Float

Q.42.The Latest Start Time can be found by the formula

A) Earliest Start Time - Duration B) Earliest finish Time – Duration
C) Latest Finish Time + Duration D) Latest Finish Time – Duration
Q.43.To assist in budget control, it is suggested that an estimate be created at the _____ ____
______ level of the WBS
A) Highest B) Lowest
C) Major work effort D) Third

Q.44.Determining budget can be best described by which of the following?

A) The process of developing the future trends along with the assessment of probabilities,
uncertainties, and inflation that could occur during the project
B) The process of accumulating costs of individual activities to establish a cost baseline.
C) The process of establishing budgets, standards, and a monitoring system by which the
investment cost of the project can be measured and managed
D) The process of gathering, accumulating, analyzing, reporting, and managing the costs on an
on-going basis

Q.45.Which of the following is a direct project cost?

A) Lighting and heating for the corporate office B) Workers Compensation insurance
C) Piping for an irrigation project D) A and B

Q.46.The Project Cost Management Process comprises the following activities:

a) Determine Budget b) Plan Cost Management
c) Estimate Costs d) Control Costs What is the correct sequence?
A) a-b-c-d B) c-a-b-d C) b-c-a-d D) a-c-b-d

Q.47.The tools and techniques used in the process of Determine Budget includes all but
A) Cost Aggregation B) Cost of Quality
C) Expert Judgment D) Historical Relationships

Q.48.Select the incorrect statement.

A) A critical path always begins at the very first event.
B) A critical path always terminates at the last event.
C) Critical activities control the project duration.
D) Critical activity is the one for which free float is zero.

Q.49. Free float for any activity is defined as the difference between
A) its earliest finish time and earliest start time for its successor activity
B) its latest start time and earliest start time
C) its latest finish time and earliest start time for its successor activity
D) its earliest finish time and latest start time for its successor activity
Q.50. The independent float affects only
A) Preceding activities B) Succeeding activities
C) The particular activity involved D) None of the above

Q.51.The time by which a particular activity can be delayed without affecting the preceding and
succeeding activities is known as
A) Total float B) free float
C) interfering float D) independent float

Project Management: Mock 5

Q.52.The time with which direct cost does not reduce with the increase in time is known as
A) Crash time B) normal time
C) optimistic time D) standard time

Q.53.The time corresponding to minimum total project cost is

A) Crash time B) normal time
C) optimistic time D) between normal time and crash time

Q.54.The direct cost of a project with respect to normal time is

A) Minimum B) maximum
C) zero D) infinite

Q.55. The reduction in project time normally results in

A) Decreasing the direct cost and increasing indirect cost
B) increasing the direct cost and decreasing the indirect cost
C) increasing the direct cost and indirect cost both
D) decreasing the direct cost and indirect cost both

Q.56.Economic saving of time results by crashing

A) Cheapest critical activity B) cheapest non-critical activity
C) costliest critical activity D) costliest non-critical activity

Q.57.Slack time refers to

A) An activity B) an event
C) both event and activity D) none of the above

Q.58.Crash project duration is obtained by summing the

A) normal durations for all the activities
B) crash durations for all activities
C) crash durations for all the activities along the critical path obtained by taking into account the
normal duration for all the activities
D) crash durations for all the activities along the critical path obtained by taking into account the
crash duration for all the activities.

Q.59.Interfering float is the difference between

A) total float and free float B) total float and independent float
C) free float and independent float D) none of the above

Q.60. Which of the following is not a PERT event?

A) Site investigation started B) sessional work completed
C) bus starts from Jaipur D) class is being attended

Q.61. PERT technique of network analysis is mainly useful for

A) Small projects B) large and complex projects
C) research and development projects D) deterministic activities

Q.62. The process of incorporating changes and rescheduling or replanning is called

A) resource levelling B) resource smoothening
C) updating D) critical path scheduling

Q.63 While scheduling following tool helps in listing project activities based on a time line
A) Operations Chart B) Gantt Chart
C) Matrix Chart D) Work Breakdown Structure

Q.64 PERT (Project Evaluation and Review Technique) is

A) Activity Based B) Event Based
C) Resource based D) Value based

Q.65 Gantt charts are used for streamlining the

A) Inventory control B) Production schedule
C) Sales forecasting D) Quality control

Q.66 Which of the project management technique is probabilistic model

A) PERT – Project Evaluation and Review Technique
B) CPM – Critical Path Method
C) WBS - Work Breakdown Structure D) Gantt Chart

Q.67 Risk impact scale has following project objective/es

A) Quality, Time and Scope B) Time, Value and Benefit
C) Scope, Value and Benefit D) Cost, Benefit and Value
Q.68.Which of the following thing is a part of Risk Event Graph
A) It has Cost and Benefit B) It has Benefit and Value
C) It has Risk and Benefit D) It has Risk and Cost

Q.69 Risk severity matrix uses following color zone to show moderate risk
A) Green B) Blue
C) Orange D) Yellow

Q.70 Establishing a change management system is part of

A) Risk Assessment B) Risk Identification
C) Risk Response Control D) Risk Response Development

Q.71 A proactive attempt to recognize and manage internal events and external threats that affect
the likelihood of a project’s success has following feature
A) Not analyzing risk event B) Non-anticipation
C) contingency plans D) Costing plan

Q.72 Risk Management’s Improves

A) Chances of reaching project performance objectives within budget and on time
B) Employee satisfaction C) Business margins D) Interdepartmental cooperation

Q.73 The degree to which employees are encouraged to be aggressive, innovative, and risk
seeking is
A) Risk Control B) Conflict tolerance
C) Critical Tolerance D) Risk tolerance

Q.74.If a risk has a 20 per cent chance of progressing in a given month, and the project is
expected to last five months, what is the probability that the risk event will occur during the
fourth month of the project?
A) Less than 1 per cent B) 20 per cent
C) 60 per cent D) 80 per cent

Q.75.If a risk event has a 90 per cent chance of occurring, and the consequences will be the US $
10,000, what does the US $9,000 represent?
A) Risk value B) Present value
C) Expected monetary value D) Contingency budget

Q.76.All of the following are ALWAYS inputs to the risk management process EXCEPT:
A) Historical information B) Lessons learned
C) Work breakdown structure D) Project status report
Q.77.Risk in Capital budgeting is same as:
A) Uncertainty of Cash flows, B) Probability of Cash flows,
C) Certainty of Cash flows, D) Variability of Cash flows

Q.78. In Risk-Adjusted Discount Rate method, which one is adjusted?

A) Cash flows, B) Life of the proposal,
C) Rate of discount, D) Salvage value

Q.79.Which of these risks are unavoidable even through proper diversification

A) Systematic Risk B) Un-systematic Risk
C) Portfolio Risk D) Total Risk

Q.80.In PERT, the 'te' is calculated by weighted average method where

A) Weightage is given to Optimistic time
B) Weightage is given to Pessimistic time
C) Weightage is given to most likely time
D) Weightage is given equally to all the three time elements

Q.81.In PERT the standard deviation is obtained by calculating the variance of

A) Only Non-critical activities B) Only Critical Activities
C) All the activities D) Selective activities

Q.82. Establishing a change management system includes

A) Monitoring, tracking, and reporting risk
B) Fostering an close organization environment
C) Not focusing on risk identification D) Work Breakdown structure

Q.83 Amounts of time used to compensate for unplanned delays in the project schedule is called
as
A) Budget reserves B) Time buffers
C) Management reserves D) Contingency time

Q.84. Large funds to be used to cover major unforeseen risks are known as
A) Management reserves B) Budget reserves
C) Time buffers D) Money Buffer

Q.85. The Standard deviation of Project evaluation and review technique (PERT) is
A) Sum of Standard Deviation of all the nodes
B) Sum of Standard Deviation on the nodes of Critical Path
C) Sum of Variance of the nodes of critical path and then square root it
D) Sum of Variance of the all nodes and then square root it
Q.86. According to the time estimates made by the PERT planners, the maximum time that
would be needed to complete an activity is called as
A) The most likely time estimate B) Optimistic time estimate
C) Pessimistic time estimate D) Expected time estimate

Q.87. The shortest possible time in which an activity can be achieved under ideal circumstances
is known as
A) Pessimistic time estimate B) Optimistic time estimate
C) Expected time estimate D) The most likely time estimate

Q.88. In PERT (Project Evaluation and Review Technique) method Expected time (Te) is
A) (To+Tp+4Tm)/6 B) (To+Tp+2Tm)/6
C) (To+Tp+Tm)/6 D) (Tm+Tp+4To)/6

Q.89. Risk Event Graph is having following on X axis

A) Gantt Chart B) Work Break Down Structure
C) Project Life Cycle D) Splitting

Q.90. Failure Mode and Effects Analysis (FMEA) is the part of

A) Risk identification B) Risk assessment
C) Risk response development D) Risk response control

Q.91. Risk severity matrix has variables as

A) Impact and Likelihood B) Risk and Likelihood
C) Quality and impact D) Failure and Likelihood

Q.92. Splitting/Multitasking has following

A) Involves interrupting work on an activity to employ the resource on another activity, then
returning the resource to finish the interrupted work
B) Involves interrupting work on an activity to employ the resource on another activity and not
returning the resource to finish the interrupted work
C) Involve not interrupting work on an activity
D) Involve common resource

Project Management: Mock 6

Q.93. Splitting/Multitasking is feasible
A) When startup and shutdown costs are high
B) When startup and shutdown costs are low
C) When startup and shutdown costs are moderate
D) When Startup cost high and shutdown cost low
Q.94. A scheduling technique use to get a better project schedule and/or increase resource
Utilization
A) Splitting/Multitasking B) FIFO (First In First Out)
C) LIFO (Last In First Out) D) Cyclic Process

Q.95. Conflict occurrence in projects is

A) Unavoidable B) Depend on type of project
C) Avoidable D) Depends on culture

Q.96 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

Q.97 Successful firms invest significant time and energy up front in establishing the “rules of
engagement”
A) So that conflict will not happen at all B) so that disagreements are handled constructively.
C) To develop better bond D) To have better control over cost

Q.98 Primary control mechanism for dealing with and resolving problem/s and conflicts is
A) Waiting for problem to solve itself B) Ignoring the problem
C) Escalation D) Analyzing the problem

Q.99 While Managing Dysfunctional Conflict the manager intervenes and tries to negotiate a
resolution by using reasoning and persuasion, suggesting alternatives and the like. This is called
as A) Arbitrate the conflict B) Mediate the conflict
C) Control the conflict D) Eliminate the conflict

Q.100 Who creates the project team?

A) Factory manager B) Operation manager
C) Project manager D) Purchase Manager

Q.101 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

Q.102 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
Q.103 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

Q.104 In which stage of team formation individual learn to work together effectively
A) Norming B) Storming
C) Forming D) Performing

Q.105 In which stage of team development all members of teams are highly focused about the
goal of the project
A) Adjourning B) Storming
C) Forming D) Performing

Q.106 Arrange different stages of the team development model in proper order
A) Forming-Storming-Norming-Performing-Adjourning
B) Norming- Forming-Sorming-Performing-Adjourning
C) Storming-Norming-Forming-Performing-Adjourning
D) Norming-Forming- Adjourning-Storming-Performing

Q.107 During which stage of Team Development Model the Dissolution of the group happens
A) Storming B) Adjourning
C) Forming D) Performing

Q.108 While Managing Dysfunctional Conflict the manager imposes a solution to the conflict
after listening to each party. The goal is not to decide who wins but to have the project win. This
is called as
A) Arbitrate the conflict B) Mediate the conflict
C) Control the conflict D) Eliminate the conflict

Q.109 While managing dysfunctional Conflict, manager reduces the intensity of the conflict by
smoothing over differences. This technique is called as
A) Arbitrate the conflict B) Mediate the conflict
C) Control the conflict D) Eliminate the conflict

Q.110 Who establish the foundation for functional conflict by establishing clear roles and
responsibilities, developing common goals?
A) Managing Director B) Project Manager
C) CEO D) Operations Head
Q.111 Team Development Model has how many stages
A) Two B) Three
C) Four D) Five

Q.112 The best defense against unreasonable, win/lose negotiators is BATNA) What does the
acronym BATNA refer to
A) Best alternative to a neglected agreement
B) Best alternative to a negotiated agreement
C) Best action towards negative agreement
D) Best after the noticeable alternative

Q.113 the degree to which employees are encouraged to air conflicts and criticisms openly is
called as
A) Conflict Control B) Conflict Tolerance
C) Critical Tolerance D) Risk Control

Q.114 The degree to which the organization monitors and responds to changes in the external
environment is
A) Management Focus B) Quality Focus
C) Close system Focus D) Open Systems Focus

Q. 115 Any situation in which equipment, resources, and people are being shared across projects
and functional activities lends itself to conflict and competition for scarce resources is called as
A) Dysfunctional Conflict B) Stressful
C) Infighting D) Slow

Q.116 Project managers have the highest level of authority and the most power in which type of
organizational structure?
A) Projectized B) Strong Matrix
C) Functional D) Balanced Matrix

Q.117 What is one of the most important skills a project manager can have?
A) Negotiation skills B) Influencing skills
C) Communication skills D) Problem solving skills

Q.118 A Project manager would find team development the most difficult in which form of
organization?
A) Balanced Matrix Organization B) Projectized Organization
C) Tight Matrix Organization D) Weak Matrix Organization
Q.119 Which type of leadership is best suited for optimizing team performance in projects?
A) Democratic leadership B) Participative leadership
C) Autocratic leadership D) Authoritative leadership

Q.120 The Process which begins when one party perceives that the other party is frustrated or is
about to frustrate, some concerns of first party also present, is known as
A) Uncertainty B) Conflict
C) Risk D) Stressful

Q.121 During the execution of a large project across multiple domains, an identified risk is
realized What should the project manager do next?
A) Refer to the risk impact on the risk register and avoid the risk.
B) Plan a new risk response and update the risk register.
C) Refer to the project management plan.
D) Perform qualitative and/or quantitative risk analyses.

Q.122 During project execution, a risk logged in the risk management plan as one with a very
low probability occurs. The project manager needs additional time to deal with the risk. What
should the project manager do to obtain the additional time?
A) Ask the sponsor for a schedule change B) Use the contingency reserve.
C) Eliminate some quality assurance activities D) Crash the schedule

Q.123 A project that is on target is audited before closure of the execution phase, and one of the
points addressed by the auditors is missing documentation. The project manager asks the team
the reason for this, and learns that they had insufficient time to prepare it. What should the
project manager have done to prevent this?
A) Requested a scope reduction so that the team had time to prepare the documentation
B) Completed checks during the quality management process
C) Updated the risk register with this as a risk
D) Requested additional resources to help prepare the documentation

Q.124 An organization is implementing a project to design a new product for its current
customers. A project scope statement is defined with constraints and assumptions associated with
the project objectives. What should the project manager do next?
A) Meet with the project team to validate the project scope that will be executed by the team.
B) Establish a hierarchical breakdown of the total scope to be carried out by the project team to
comply with project objectives.
C) Ensure that all requested changes, or the preventive or corrective actions, are included in the
project scope.
D) Work with the project team and key stakeholders to determine the products, services, and/or
results to be delivered
Q. 125.In payback period method the annual cash inflows means __________
A) Net Income after Tax B) Net Income before Tax
C) Net Income before Depreciation but after Tax D) Net Income after Tax and Depreciation

Q.126.If the Earned Value is equal to actual cost it means

A) Project is on budget and on schedule B) Schedule variance index is 1
C) There is no schedule variance D) There is no cost variance

Q.127. Which of the following types of organizational charts can be best used to track project
cost
A) Hierarchical type organizational chart B) Organizational breakdown structure
C) Resource breakdown structure D) Responsibility assignment matrix

Q.128.To find the optimal cost of a project in crashing the criteria required is
A) Cost of crashing by a day should be less than or equal to indirect cost
B) Cost of crashing by a day should be more than the indirect cost
C) Shortest duration for project completion is important D) None of these

Q.129.Incremental cost of crashing can be achieved by

A) Normal Cost upon Normal Time B) Crash Cost upon Crash Time
C) Difference in Time upon Difference in Cost
D) Difference in Cost upon Difference in Time

Q.130.If indirect cost per day is given the initial project cost can be found by
A) Sum total of Normal cost B) Sum total of Crash cost
C) Sum total of Normal cost + (Indirect Cost x Duration)
D) Sum total of Crash cost + (Indirect Cost x Duration)

Q.131.The best way to select a project from amongst the project on their financial performance is
through
A) Discounted Cash Flow (DCF) B) Profitability Index (PI)
C) Internal Rate of Return (IRR) D) Payback Period

Q.132.The criteria for acceptance of a project on the basis of Net Present Value Method (NPV) is
A) NPV should be negative B) NPV should be positive
C) NPV should be zero D) None of these

Q.133.What is the present value of Rs 520,000 expected to be received in three years' time, if the
business concerned requires a return of 10% on sums invested?
A) 692000 B) 432000
C) 473000 D) 390000
 Project Management: Mock 7
Q.134.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 schedule performance index?
A) 0.895 B) 0.81
C) 0.90 D) 1.12

Q.135.A project with total budget cost of 20 crores is scheduled to be completed in 40 weeks.
A periodic review was carried out at end of 20 weeks and results are as given: Budgeted cost of
work performed (EV) = 10 crores Actual Cost of work performed (AC) = 11 crores Budgeted
cost of work scheduled (PV) = 9 crores What is the expected duration of completion?
A) 45 weeks B) 33 weeks
C) 36 weeks D) 37 weeks

Q.136.A project with total budget cost of 20 crores is scheduled to be completed in 40 weeks.
A periodic review was carried out at end of 20 weeks and results are as given: Budgeted cost of
work performed (EV) = 10 crores Actual Cost of work performed (AC) = 11 crores Budgeted
cost of work scheduled (PV) = 9 crores What is the expected cost of completion?
A) 25 crores B) 22 crores
C) 19 crores D) 21 crores

Q.137.In the following project, data is given at end of 10 months Activity Predecessor
NT(months) NC Completion At end of 10 months AC A - 10 200 100 % 190 B A 10 100 20 %
10 What is CPI?
A) 1 B) 1.05
C) 1.15 D) 1.10

Q.138.In the following project, data is given at end of 10 months Activity Predecessor
NT(months) NC Completion At end of 10 months AC A - 10 200 100 % 190 B A 10 100 20 %
10 What is SPI?
A) 1 B) 1.05
C) 1.15 D) 1.10

Q.139.Calculate DSCR for following data YEAR 1 Profit after tax 960 Depreciation 310 Tax
250 Interest on loan 320 Repayment of term loan 340
A) 2.41 B) 4.78
C) 3.00 D) 2.82
Q.140.Calculate ICR for following data YEAR 1 Profit after tax 960 Depreciation 310 Tax 250
Interest on loan 320 Repayment of term loan 340
A) 2.41 B) 4.78
C) 3.00 D) 2.82

Q.141. Earned value analysis is an example of:

A) Performance reporting B) Planning control
C) Ishikawa diagrams D) Integrating the project components into a whole

Q.142. There was enough money in the budget & halfway through the project the CPI is 0.7 To
determine the root cause, several stakeholders audit the project. Although the activity estimates
add up to the project estimate, the stakeholders think something was missing in how the estimate
was complete, which of the following describes what was missing?
A) Estimated costs should be used to measure CPI
B) SPI should be used, not CPI
C) Bottom-up estimating should have been used
D) Past history was not taken into account

Q.143. A manufacturing project has a schedule performance index (SPI) of 0.89 and a cost
performance index (CPI) of 0.91. Generally, what is the BEST explanation for why this
occurred?
A) The scope was changed
B) A supplier went out of business and a new one needed to be found
C) Additional equipment needed to be purchased
D) A critical path activity took longer and needed more labor hours to complete

Q.144. A cost management plan contains a description of:

A) The project costs B) How resources are allocated
C) The budgets and how they were calculated
D) The WBS level at which earned value will be calculated

Q. 145. Monitoring cost expended to date in order to detect variances from the plan occurs
during:
A) The creation of the cost change management plan B) Recommending corrective actions
C) Updating the cost baseline D) Product performance reviews

Q.146. The project manager is allocating overall cost estimates to individual activities to
establish a baseline for measuring project performance. What process is this?
A) Cost Management B) Estimate Costs
C) Determine Budget D) Control Costs
Q.147. Your cost forecast shows that you will have a cost overrun at the end of the project.
Which of the following should you do?
A) Eliminate risks in estimates and reestimate
B) Meet with the sponsor to find out what work can be done sooner
C) Cut quality D) Decrease scope

Q.148. 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)

Q.149. Value analysis is performed to get:

A) More value from the cost analysis B) Management to buy into the project
C) The team to buy into the project D) A less costly way of doing the same work

Q.150. During which project management process group are budget forecasts created?
A) Monitoring and controlling B) Planning
C) Initiating D) Executing

Q.151. A 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

Q.152. 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

Q.153. Cost performance measurement is BEST done through which of the following?
A) Asking for a % complete from each team member and reporting that in the monthly progress
report
B) Calculating earned value and using indexes to report past performance and forecast future
performance
C) Using the 50/50 rule and making sure the life cyde cost is less than the project cost
D) Focusing on the amount expended last month and what will be expended the following month
Q.154. If earned value (EV) =350, actual cost (AC) =400, planned value (PV) =325, what is cost
variance?
A) 350 B) -75
C) 400 D) -50

Q.155. Estimate at completion (EAC) is a periodic evaluation of:

A) The cost of work completed B) The value of work performed
C) The anticipated total cost at project completion D) What it will cost to finish the job

Q.156. One common way to compute estimate at completion (EAC) is to take the budget at
completion (BAC) and
A) Divide by SPI B) Multiply by SPI
C) Multiply by CPI D) Divide by CPI

Q.157. Rearranging resources so that a constant number of resources is used each month is called
A) Crashing B) Floating
C) Leveling D) Fast tracking

Q.158. A project manager performs Earned Value Analysis and finds the following values: EV:
100,000; PV: 125,000; AC 100,000
A) The project is on schedule but costs exceed budget.
B) The project is on schedule and on budget.
C) The project is behind schedule but on budget.
D) Then project is behind schedule and costs exceed budget

Q.159.Project costs are over budget when

A) CPI > 1. B) CPI < 1.
C) CPI < 0. D) SPI = 1.

Q.160.A project manager performs Earned Value Analysis and finds the following results: EV:
250,000; PV: 200,000; AC 275,000 BAC is 500,000. What is right?
A) EAC = 400,000 B) EAC = 550,000
C) BTC = 400,000 D) ETC = 75,000.

Q.161.A S curve is a
A) A graph that is generated if a normal curve is integrated
B) A graph that is to be integrated to generate a normal curve.
C) A metaphoric description of the short term uncertainties that are present in every project.
D) Graph that describes the typical growth of earned value during the course of the project.
Q.162.Your most recent project status report contains the following information: BCWP = 3,000,
ACWP = 3,500, and BCWS = 4,000. The schedule variance is:
A) + 1,000. B) + 500.
C) - 500. D) - 1,000.

Q.163.If the cost variance is positive and the schedule variance is also positive, this indicates the:
A) Project is under budget and behind schedule
B) Project is over budget and behind schedule
C) Project is under budget and ahead of schedule
D) Project is over budget and ahead of schedule
Q.164. Your actual cost is 155 and your earned value is 170. What is your cost variance?
A) 15 B)-15
C) 162.5 D) -155

Q.165.The difference between budget at completion and estimate at completion is called…

A) Difference at completion B) Deficit at completion
C) Variance at completion D) Management reserve

Q.166. Your schedule performance index is 0.8. Which of the following statements is true?
A) The planned value exceeds the earned value by 80%
B) The project is ahead of schedule
C) The earned value exceeds the planned value by 8%
D) The project is behind schedule

Q.167. The CPI is > 1. Which of the following statements is true?

A) The Project has a cost overrun compared to the plan
B) The project has incurred less cost than planned
C) The earned value is higher than the planned value
D) The cost & performance is in line with the plan

Q.168. The actual cost is 8250, the earned value is 7500, the planned value is 8000 and the
budget at completion is 30000. Calculate the estimate at completion based on present cost
performance.
A) 23750 B) 30750
C) 32000 D) 33000

Q.169.Your SPI is 0.8 and your CPI 1.1. Which of the following statements describes the current
project status correctly?
A) The project incurred higher cost than planned and is behind schedule
B) The project incurred less cost than planned and is ahead of schedule
C) The project incurred higher cost than planned but is behind schedule
D) The project incurred less cost than planned but is behind schedule

Q.170. What is the variance at completion?

A) AC-EV B) BAC-EAC
C) EAC-BAC D) EV-AC)

Q.171. The accounting rate of return is measured as follows:

A) Average annual profit expressed as a percentage of the total funds invested in the project.
B) Average annual profit expressed as a percentage of the average funds invested in the project.
C) Total profits expressed as a percentage of the average funds invested in the project.
D) Total profits expressed as a percentage of the total funds invested in the project.

Q.172. 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.

Q.173. 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%
 SAVIO SIR Question Paper
In network crashing the maximum crash time or the crash limit of each
activity is the difference between Normal time and _______.
 Critical time
 Project time
 Crash time
 Activity time

In this method of forecasting, greater smoothing can be obtained by including more observations
in the subgroup of data used in the method.
 Exponential smoothing method
 Regression
 Least square method
 Moving average

A project manager joins a project as a replacement on a project team. During initial meetings, the
project manager realizes there are many differing opinions about how to address technical
decisions. Team members do not respect each other's ideas, and the environment is becoming
counterproductive. In what phase of development is the team?
 Performing
 Storming
 Norming
 Forming

The challenge in using the exponential smoothing method of forecasting is ______

 Deciding a suitable value for the smoothing constant
 Storing of too much data
 Use of complicated formula
 Storing too little data

You are running behind schedule on a project due to a late delivery by a vendor. You are forced
to compress your project schedule due to a government-mandated end date that constrains your
project. After meeting with your team, the decision is to work several tasks in parallel that were
scheduled to be run consecutively. This is an example of:
  Fast Tracking
 Risk Acceptance
 Resource Levelling
 Network Crashing

A set of interrelated activities which are to be executed in a certain order before the entire task is
completed is callled as a
 Project
 Technique
 Skill
 Work piece

An activity has an early start (ES ) of day 4, and a late finish (LF ) of day 20.The activity
duration is 6 days . What is the activity's float ?
 13
 10
 12
 15

In this notation of network construction the tasks are placed on nodes

 AOA
 AON
 AOS
 AOP

A stakeholder is
 Anyone who can impact/be impacted positively or negatively by the project
 Anyone who is involved in the project.
 Anyone who can influence the direction of the project.
 Anyone who has stake in the project.

Which is this method wherein the probabilistic aspect of the duration of the activities are
considered?
  XERT
 PERT
 CPM
 CERT

An activity has an early start (ES ) of day 7, and a late finish (LF ) of day 19.The activity
float is 9 days. What is the activity duration ?
 12
 4
 3
 2

By this method an attempt will be made to reduce the project completion time to an earllier
date than the normal project completion time
 Network crashing
 Resource allocation
 PERT
 CPM

Which of the following is a hierarchical depiction of the work to be performed on the project:
 RBS
 Scope Diagram
 WBS

 OBS

In this method the peak manpower requirements is minimised without extending the project
completion time.
 Resource allocation
 PERT
 Network crashing
 Resource smoothing
All of the following are Projects, except…
 A film is getting produced
 Building your dream house
 A quality inspector checking quality of inbound materials
 Planning a trip to visit Guatemala

Which of the following are the Triple Constraints of a Project ?

 Project Scope, Time and Cost
 Project Quality, Schedule and Scope.
 Product Scope, Time and Cost.
 Project Quality, Time and Cost

The expected duration of an activity in project management is given by the formula (where a is
optimistic time , m is most llikely time and b is pessimistic time ).
 (a + 6m + b)/4
 (a + m + b)/6
 (a + m + 4b)/6
 (a + 4m + b)/6

To crash a schedule you should

 Replace those worker that are not performing up to par with the busy
 Increase work efforts on those tasks that are on the critical path
 Increase the time allowed on those tasks that have float.
 Try to increase expenditures of time only those tasks that are behind schedule.

The duration of any dummy activity in a project network is

 A value less than 5 units
 A large value
 Infinity
 Zero
A possible range of smoothing constant in exponential smoothing forecasting method is
 0.1 to 0.3
 -0.01 to -0.03
 1 to 3
 0.001 to 0.003

The level of effort in a project lifecycle is maximum in

 Planning phase
 Defining phase
 Executing phase
 Closing phase

In which type of organization is project team building generally most difficult ?

 Strong Matrix
 Balanced Matrix
 Functional
 Projectized

The Optimistic time for an activity is 5 days .The Pessimistic time is 17 days
.The Standard deviation for the activity is
 (- 12 days )
 12 days
 4 days
 2 days

For an activity in a project the optimistic time is 2 days, the most likely time is 4 days and the
pessimistic time is 8 days. The expected duration of the activty is:
 3.3 days
 6.3 days
 5.3 days
 4.3 days
All of the following are not Projects except
 Computer data entry of employee leave status
 Building a bridge across the amazon river
 Cleaning the office building
 Daily delivery of newspaper at residence

Question Set 26-50

Which of the following most accurately defines the characteristic of a project?

 The project's purpose is to answer customer phone calls
 The activities are performed on an ongoing basis
 The project has been planned to commence and end on specific dates
 Activities have been planned to commence and end on specific dates

A bulk of the work on the project is accomplished during the:

 Initiating phase
 Execution phase
 Closing phase
 Planning phase

An adaptive project lifecycle is preferred when:

 The organization does not have a PMO.
 Requirements are prone to changes.
 The project team faces attrition.
 The team is inexperienced resulting in many defects.

A stakeholder is:
 A person or group who funds the project.
 A person or group who affect or are affected or perceived to be affected by the project.
 A person or group who works and contributed toward the project.
 A person who can affect the project outcomes.

The project manager has the most authority in which of the following organization structures?
 Functional
  Weak matrix
 Balanced matrix
 Strong matrix

The process of identification of all the work of a project can be facilitated and demonstrated
using a:
 Gantt chart
 S curve
 RACI chart
 Work breakdown structure

The project manager and the business analyst have collated all the proposed requirements
received from stakeholders. What is the next best thing to do?
 Develop the project charter.
 Develop the project budget.
 Develop the project schedule.
 Develop the project scope.

The following demand data is available for 5 years. Find the three year moving average forecast
for the 6th year. First = 24, Second = 25, Third = 30, Fourth = 29, Fifth = 28, Sixth = ?
 29
 32
 31
 26
Forecasts were developed for a given timeseries data of sales using moving average and
exponential smoothing methods and their mean absolute percentage errors were 4.9% and 3.3%
respectively. If the tolerable limits of errors is 5%, which of these forecasts can be used to plan
the project?
 Develop a new forecast using regression.
 The moving average forecast
 Any of the two as both forecasts are within the limits defined.
 The exponential smoothing forecast

While planning a project, you discover that a few of the activities have floats of 2-3 days.
However, senior management requests you to cut down the duration of the project by 2 days.
What is the next best thing to do?
 Perform crashing on the schedule
 Determine the impact of shortening the schedule on scope and cost.
  Seek more time to replan the project
 Consume the floats on the activities and shorten the schedule

The following information is provided about an activity. What is the maximum amount of time
by which this activity can be delayed without affecting any subsequent activity? Early start = 5,
Early finish = 17, Late start = 8, Late finish = 20.
 15
 12
 3
 9

The most value is usually obtained when the project is crashed on the:
 AOA path
 Critical chain
 Near critical path
 Critical path

The project manager would like to represent the progress of the project activities in the sequence
that was planned, with baseline values, and dates. What visual would be most appropriate?
 A RACI chart
 A Gantt chart
 A WBS chart
 A schedule network diagram

Which of the following will be most useful in determining overallocation or underallocation of

project work?
 Earned value chart
 A schedule network diagram
 Resource histogram
 A Gantt chart

Choose the most appropriate option: PERT helps the project manager:
 Quantify scope risks
 Quantify schedule risks
  Qualify resource risks
 Determine risks associated with third party contracts.

Conflicts in a newly formed team usually occur at which stage of the tuckman ladder?
 Norming
 Performing
 Forming
 Storming

The most common source of conflict is:

 Personality clashes due to incompatibility
 WBS, charter and schedule
 Change management and escalated costs
 Schedules, priorities and resources

You as a project manager should always aim to resolve conflicts by:

 Playing down the problem and turns attention to what is going well.
 Confronting the problem and resolving the root cause of the conflict.
 Compromising by sacrificing something for the sake of reaching an agreement.
 Bringing to bear whatever force or power is necessary to get the door open – resolve the
conflict

A project has a CPI of 0.93 and an SPI of 1.1. Report on the state of the project.
 The project is under budget, and ahead of schedule.
 The project is under budget, and behind schedule.
 The project is over budget, and ahead of schedule.
 The project is over budget, and behind schedule.

A project was planned for completion in 80 weeks. How much time will the project take to
complete given its SPI is 0.742, CPI is 0.793.
 108
 100
  80
 92

A project was planned for completion with a budget of 40 crores. How much money will the
project take to complete given its SPI is 0.742, CPI is 0.793.
 50.44
 45.5
 55.3
 40

What is the NPV of a project that requires an initial investment of 120 lakhs, is expected to be
operated for 6 years, and results in an annual cash flow of Rs 44 lakhs?
 41.33
 46.52
 50.1
 49.86

Which of the following is true about aggregating IRR and NPV values of multiple projects.
 NPV of multiple projects can be aggregated, but not IRR.
 NPV and IRR of multiple projects can be aggregated.
 IRR of multiple projects can be aggregated, but not NPV.
 NPV and IRR of multiple projects cannot be aggregated.

Assuming that the sponsors of a project are satisfied with the payback period, and given the
following information about a project, decide an appropriate course of action: IRR = 15% Cost
of capital = 18%
 The project proposal must be accepted for further assessments and planning
 The project scope must be altered to reduce the cost of capital.
 The project must be replanned
 The project proposal must be rejected or redefined

A project in the execution phase is behind schedule and the project manager decides to fast track
its progress by instructing team members to multi task. Which of the following risk does the
project manager run?
  Missing requirements
 Staff attrition
 Replanning
 Rework

Question Set 51-75

The Project manager should be able to fulfill the role of ___

 a functional manager
 a sponsor
 a line manager
 an integrator

Which form of power is the LEAST effective from the project manager's viewpoint in terms of
influencing functional managers?
 Penalty power
 Expert power
 Referent power
 Formal power

Project manager has the most authority in ____

 Functional organization
 Matrix organization
 Projectized organization
 Normal organization

The successful project managers spend most of their time:

 Communication with the project team
 Studying project results
 Planning with the top management
 Planning with their personnel

Cost Variance (CV) is which of the following equations?

  CV = BCWP - BCWS
 CV = BCWP - BCWS
 CV = BCWP - ACWP
 CV = SV / BCWS

You are the project manager of an accounting project. You have just finished defining the scope
for the project and started creating the Work Breakdown Structure (WBS). To create a proper
WBS, you went to the organizational process asset library and found a WBS from a past project.
You are now using it as a current reference. Based on it you have started breaking down the
deliverables. Which of the following tool in Create WBS process are you using?
 Templates
 Decomposition
 Historical Records
 Brain Storming

You are managing a network upgrade project. Your project schedule performance index is 0.79 .
You need to take a corrective action to bring the project back on track. Which response would
you choose that will affect the resources management plan ?
 Fast Tracking
 Crashing
 Teaming Arrangement
 Sharing

Your project sponsor has requested a cost estimate for the project on which you’re working. This
project is similar in scope to a project you worked on last year. She would like to get the cost
estimates as soon as possible. Accuracy is not her primary concern right now. She needs a
ballpark figure by tomorrow. You decide to use :
 Parametric estimating technique
 Bottom up estimating
 Three point estimating technique
 Analogous estimating techniques

Matthew, as project manager, is leading the development of a new app. The project team and
Matthew are now analyzing the features and functions that characterize the app. What are they
analyzing?
 Product Scope
  Work Breakdown structure
 Process Scope
 Project Scope statement

You are a newly hired project manager. The project charter has not been developed yet. You
want to know the high level operational and strategic assumptions and constraint. Which
document will you consult.
 Business Need
 Project Charter
 Project Scope statement
 Business Case

You are running behind schedule on a project due to a late delivery by a vendor. You are forced
to compress your project schedule due to a government-mandated end date that constrains your
project. After meeting with your team, the decision is to work several tasks in parallel that were
scheduled to be run consecutively. This is an example of:
 Resource Levelling
 Fast Tracking
 Risk Acceptance
 Crashing

You are managing a huge and critical project for your organization. This project can make or
break your company. For such critical projects, which is the minimum desirable engagement
level to have for all major project stakeholders?
 Resistant Stakeholders
 Leading Stakeholders
 Neutral Stakeholders
 Supportive Stakeholders

The most detailed level of the WBS is the:

 Accepted Deliverable
 Scope statement
 Work Package
 Control account
You are in charge of a software project and you are almost 40% complete. The project
stakeholders want a performance report to date. You had planned to use Earned Value
Management methodology. You come up with the following numbers: EV = 100 ;AC = 300 ;PV
= 150 ;BAC = 600 .You and your team have faced numerous issues till now . However you
choose to ignore the current work performance and decide to go with what was originally
planned. Based on this information what would be the EAC for the project ?
 600
 200
 800
 1800
PV=100 ,EV= 105, BAC = 400,AC = 102 , and CV= 3 , ETC= 300. How much is the EAC
(Estimate at Completion) if the variances from the BAC are expected to continue at the same rate
?
 400
 402
 388
 397

You have a project with a worth of 100,000 USD. To date, you have spent 30,000 USD, and
25% of the work is completed. For the above project, which statement is correct?
 The project is over budget.
 The project is behind schedule.
 The project is ahead of schedule.
 The project is under budget.

Your sponsor has asked you to give him a new estimate of the cost at the end of the project. This
is because during the meeting it was found that many things have gone wrong until now . It is
expected, that from now on things will progress normally. Which formula will you use to create
the expected total cost of the project?
 ETC = EAC-AC
 EAC = AC+ETC
 EAC = BAC/CPI
 EAC = AC+BAC-EV

Resource leveling attempts to:

  Reduce the amount of resources so that they can be shared with on other endeavors.
 Reduce resource requirements by smoothing out period-to period resource assignments.
 Increase the amount of the project manager's authority so that budget dollars can be
appropriated.
 Ensure that the budget abnormalities are overcome.

Which is a work breakdown structure (WBS)?

 It is a hierarchical tabulation of the physical assemblies, subassemblies and components
needed to fabricate a manufactured product.
 It is a hierarchically organized depiction of the resources by type to be used in the
project.
 It is a hierarchically organized depiction of the project organization arranged so that the
work packages can be related to the performing organizational unit.
 It is a deliverable-oriented hierarchical decomposition of the work to be executed by the
project team, to accomplish the project objectives and create the required deliverables

Which of the following is true about milestones?

 They are dummy activities.
 They are significant points or events in a project, program or portfolio.
 They are insignificant events in the project life cycle.
 They are activities with the least duration of all activities in the path

You have been assigned as the project manager of a highly strategic project which will either
make or break your company. The project is sponsored directly by the Board of Directors who
have decided that you need to have maximum control over all project resources. What is the best
organization type to use in this case?
 Projectized
 Balanced Matrix
 Weak Matrix
 PMO

Which of the following components of a project scope statement is useful in reducing scope
creep?
 Acceptance criteria
  Scope description
 Deliverables
 Exclusions

Your company has bagged a number of government contracts dealing with setting up
infrastructure. This includes setting up roads and bridges. This is a very big and prestigious
project, so your company wants to ensure everything is planned well in advance. You are the
project manager of this project. Considering its importance, you and your team come up with a
list of risks. One of the subject matter experts indicates that during the months of July and
August, the construction work of the bridge across the river would need to stop on account of
past history of flooding of the river. You agree with the expert and plan the schedule
accordingly. What strategy did you just apply?
 Transfer
 Accept
 Exploit
 Mitigate

Resource leveling is one of the tool/technique to make sure people are not overworked or
underworked, as both of these are bad for the project. Which of the following tools can help
identify team members that are over allocated?
 RACI Matrix
 Resource Histogram
 Resource Breakdown Structure
 Resource Assignment matrix

While analyzing a project, the project manager calculated the ratio of the Earned Value (EV) to
the Actual Costs (AC) and obtained a value of 1.2. The project manager decided this was an
unfavorable condition for the project and decided to take corrective action. What is your view?
 The project manager is not correct. The ratio of EV to AC is the Variance and a ratio
greater than 1 is favorable to the project.
 The project manager is not correct. The ratio of EV to AC is the Performance Index and a
ratio greater than 1 is favorable to the project.
 The project manager is correct. The ratio of EV to AC is the Variance and a ratio greater
than 1 is unfavorable to the project.
 The project manager is correct. The ratio of EV to AC is the Performance Index and a
ratio greater than 1 is unfavorable to the project.
Question Set 76-100

What is a work breakdown structure?

 A Gantt Chart
 A list of the activities making up the higher levels of the project
 An ordered list of project tasks, sub-tasks, and work packages
 Activity Chart

Which of these is NOT part of the "technical dimension" of project management?

 Problem Modelling
 Budgets
 Schedules
 Work Breakdown Structure

-----------are used to represent activity in a AOA network diagram.

 Circles
 Squares
 Rectangles
 Arrows

For completion of a project, the critical path of the network represents

 Maximum cost
 Maximum time
 Minimum cost
 Minimum time

Which of the following is NOT typical of a project manager?

 Managing a temporary activity
 Responsible for Time, Cost and Performance Trade-Offs
 Managing a non-repetitive activity
 Overseeing existing operations
Assembling project team and assigning their responsibilities are done during which phase of a
project management?
 Planning
 Execution
 Initiation
 Training

For an activity in a project, optimistic time is 2 days; most likely time is 3 days and pessimistic
time is 6 days. The estimated time in days is
 11/6
 20/6
 2/6
 5/6

Select the incorrect statement.

 A critical path always terminates at the last event.
 A critical path always begins at the very first event.
 Critical activities control the project duration.
 Critical activity is the one for which free float is zero.

Free float for any activity is defined as the difference between

 its earliest finish time and earliest start time for its successor activity
 its earliest finish time and latest start time for its successor activity
 its latest start time and earliest start time
 its latest finish time and earliest start time for its successor activity

Interfering float is the difference between

 none of the above
 free float and independent float
 total float and free float
 total float and independent float

Gantt charts are used for streamlining the

  Production schedule
 Inventory control
 Quality control
 Sales forecasting

Which of the project management technique is probabilistic model

 CPM - Critical Path Method
 PERT - Project Evaluation and Review Technique
 WBS - Work Breakdown Structure
 Gantt Chart

A _________determines how tasks and resources assigned to these tasks are scheduled.
 Exception Plan
 Schedule
 Calendar
 Resource Pool

The past demand for 6 months is given for a product. Calculate the estimated sales for 7th month
using Moving Average method with period 2.

Month Demand
1 34
2 29
3 27
4 36
5 34
6 32
 32
 34
 33
 28

The criteria for acceptance of a project based on Net Present Value Method (NPV) is
 None of these
 NPV should be zero
  NPV should be positive
 NPV should be negative

Which of the following represents the estimated value of the work accomplished?
 Actual cost (AC)
 Planned value (PV)
 Cost variance (CV)
 Earned value (EV)

Project costs are over budget when

 CPI < 1.
 CPI < 0.
 SPI = 1.
 CPI > 1.

Your actual cost is 155 and your earned value is 170. What is your cost variance?
 -155
 -15
 162.5
 15

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

discount rate for the following data

Year 0: -100

Year 1: 100

Year 2: 100
 73.5
 173.5
 273.5
 100
Depreciation is incorporated in cash flows because it
 Reduces tax liability
 Is an unavoidable cost
 Is a cash flow
 Involves an outflow

Formula for Independent Float is

 FF - Slack of Head Event
 TF - slack of Head Event
 FF - slack of Tail Event
 TF - slack of Tail Event

If an investment project has a profitability index of 1.15 the

 Projects Internal Rate of Return is 15%
 Projects internal rate of return exceeds its net present value
 Net present value of the project is positive
 Projects cost of capital is greater than its internal rate of return

Net Present Value of a machine is

 PV of cash inflows less average cost of investment
 PV of cash inflows less cost of investment
 PV of net profit after tax less cost of investment
 PV of cash inflows / cost of investment

Following was determined for an activity Optimistic Time = 4 days, Pessimistic Time = 12 days,
Most likely time = 5 days, What will be the average time for activity?
 5 days
 7 days
 6 days
 8 days

--------------------is a method used to determine the current value of all future cash flows
generated by a project, including the initial capital investment.
 Net asset value
 Net cost value
 Net project value
 Net present value