•
Question 1
2 out of 2 points
If a firm has a limited capital budget and too many good capital projects to fund them all, it is said to be facing the problem of
Selected Answer:
a.
capital rationing.
Answers:
a.
capital rationing.
b.
constrained capital.
c.
wealth optimization.
d.
profitability.
•
Question 2
2 out of 2 points
Which of the following examples is NOT a typical or appropriate situation to employ project management?
Selected Answer:
a.
processing deposits and withdrawals in a bank
Answers:
a.
processing deposits and withdrawals in a bank
b.
developing a new medical device for use by clinics
c.
improving a soldering process in an assembly line
d.
installing a new accounting application on a server
•
Question 3
2 out of 2 points
ABC Ltd. is considering a capital investment, where the estimated cash flows for years 0, 1 and 2 are (PHP100,000), PHP60,000 and PHP80,000 respectiv
factors@15% of year 1 and 2 are 0.870 and 0.756 respectively.
What is the NPV of the project?
Note: if your answer is PHP10,000.99 it should be written as 10,001 (no peso sign, with comma, and round-off to whole amount)
Selected Answer:
12,680
Correct Answer:
Evaluation Method
Case Sensitivity
12,680
Exact Match
•
Correct Answer
Question 4
0 out of 2 points
Simple projects that are characterised as low budget, short term, simple tasks, within a functional domain, would need more
___________________________.
Selected Answer:
d.
technical management
Answers:
a.
training management
b.
administrative management
c.
academic management
d.
technical management
Response Feedback: #6
•
Question 5
2 out of 2 points
Which of the following statements best describes the contemporary use of financial models and scoring models for project selection?
Selected Answer:
d.
These methods are often used together to ensure financial and non-financial factors are both considered.
Answers:
a.
One of these techniques is typically used to the exclusion of the other, due to time demands.
b.
Scoring models are unreliable because they fail to consider financial factors.
c.
Financial methods are preferred because they ensure alignment with the organization’s strategic goals.
d.
These methods are often used together to ensure financial and non-financial factors are both considered.
•
Question 6
2 out of 2 points
Project management is __________________________________________.
Selected Answer:
c.
the application of knowledge, skills, tools and techniques in all project-related activities
Answers:
a.
a subset of most of the engineering, construction and other technical disciplines
b.
the integration of the critical path method and the earned value management
c.
the application of knowledge, skills, tools and techniques in all project-related activities
d.
the application of knowledge, skills, wisdom, science, and art to organisational activities to achieve operational excellence
Response Feedback: #18
•
Question 7
2 out of 2 points
Which statement is INCORRECT about the net present value (NPV)?
Selected
Answer:
Answers:
a.
For negative NPV the cash inflows from a capital investment will yield a return which
is exactly the same as the cost of capital.
a.
For negative NPV the cash inflows from a capital investment will yield a return which
is exactly the same as the cost of capital.
b.
The value obtained by discounting all cash outflows and inflows of a project by a chosen target rate of return or cost of
capital.
c.
The method compares the present value of all the cash inflows from an investment with the present value of all the cash
outflows from an investment.
d.
For positive NPV the cash inflows from a capital investment will yield a return in excess of the cost of capital.
•
Question 8
2 out of 2 points
The profitability index technique is most meaningful when a project has only one cash outflow which occurs at its beginning, and that is
followed by a series of inflows that are constant in amount and regular in time.
Selected Answer:
b.
False
Answers:
a.
True
b.
False
•
Question 9
2 out of 2 points
A firm has the following investment opportunities:
Project A
Project B
Project C
Investment
PHP150,000
PHP125,000
PHP100,000
NPV
PHP30,000
PHP20,000
PHP25,000
IRR
14%
11%
13%
If the cost of capital is 10% and the capital budget is limited to PHP280,000, which project(s) should the firm undertake?
Selected Answer:
a.
Project A and project C
Answers:
a.
Project A and project C
b.
Project A
c.
Project A and project B
d.
Project B and project C
•
Question 10
0 out of 2 points
(INFORMATION FOR THE NEXT 2 QUESTIONS)
Project Selection and Prioritization Matrix
Project/Criteria
& Weight:
Project A
Project B
Project C
Project D
New
Products
Customer
Relations
Supplier
Relations
Success
Probabilit
10
5
50
3
30
3
30
2
20
6
3
18
4
24
4
24
2
12
7
3
21
5
35
3
21
5
35
5
3
15
4
20
2
10
3
15
Based on the information provided in above, which project is LEAST attractive based on new products?
Note: if your answer is Project X, it should be written as “Project X”
Selected Answer:
Correct Answer:
"Project D"
Evaluation Method
Case Sensitivity
Project D
Exact Match
•
Correct Answer
Question 11
2 out of 2 points
Regardless of the criteria differences among different types of projects, typically the most important criterion for project selection is
Selected Answer:
d.
the project's fit to the organization strategy.
Answers:
a.
how the project will balance risk within the project portfolio.
b.
nonfinancial.
c.
compliance.
d.
the project's fit to the organization strategy.
Response
Feedback:
•
The project's fit to the organization strategy is the most important criterion for project selection. This criterion should be
consistent across all types of projects and carry a high priority relative to other criteria.
Question 12
2 out of 2 points
Which of the following examples is NOT a typical or appropriate situation to employ project management?
Selected Answer:
c.
conducting a routine, standard customer service operation
Answers:
a.
installing a new computer system
b.
improving an existing work process
c.
conducting a routine, standard customer service operation
d.
developing a new product
•
Question 13
2 out of 2 points
A project is __________________________________________.
Selected Answer:
a.
a temporary endeavour undertaken to create a unique product or service
Answers:
a.
a temporary endeavour undertaken to create a unique product or service
b.
a set of sequential activities performed in a process or system
c.
a revenue-generating activity that needs to be accomplished while ensuring customer satisfaction
d.
an ongoing endeavour undertaken to meet customer or market requirements
Response Feedback: #3
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Question 14
2 out of 2 points
All of the following are features of operations EXCEPT:
Selected Answer:
a.
Have a defined beginning and an end.
Answers:
a.
Have a defined beginning and an end.
b.
Usually follow the organisation or functional structure.
c.
Resources used ‘full-time’.
d.
Mixture of many recurring tasks.
Response Feedback: #2
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Question 15
2 out of 2 points
A project has NPV of – PHP7,000. What would be the investment decision about this project just according to the value of NPV?
Selected Answer:
b.
The project should not be undertaken
Answers:
a.
The project should be undertaken
b.
The project should not be undertaken
c.
The information is not sufficient enough to make any decision
d.
The company will be indifferent about whether it undertakes the project or not
•
Question 16
0 out of 2 points
ABC
equipment
value
Group
of
costing
at
the
The
PHP35,000,
expected
What
Industries
PHP120,000.
end
profits
PHP45,000
is
The
of
that
after
and
considering
equipment
time.
an
would
The
depreciation
from
PHP50,000
is
investment
have
straight-line
investing
for
in
a
a
four-year
method
in
the
o
the
four
the
payback
Note: If your answer is 2.2367 it shoud be written as 2.24 (at 2 decimal places with proper rounding off).
Selected Answer:
3.20
Correct Answer:
Evaluation Method
Exact Match
•
Question 17
Correct Answer
Case Sensitivity
1.92
2 out of 2 points
Which of the following statements concerning strategic analysis is true?
Selected Answer:
c.
External analysis focuses on the threats and opportunities facing the organization.
Answers:
a.
Internal analysis focuses on the threats and opportunities facing the organization.
b.
External analysis focuses on the strengths and weaknesses of the organization.
c.
External analysis focuses on the threats and opportunities facing the organization.
d.
Strategic analysis focuses exclusively upon external analysis.
•
Question 18
2 out of 2 points
Which of the following examples is NOT a typical or appropriate situation to employ project management?
Selected Answer:
c.
conducting a routine, standard customer service operation
Answers:
a.
improving an existing work process
b.
developing a new product
c.
conducting a routine, standard customer service operation
d.
installing a new computer system
•
Question 19
2 out of 2 points
All of the following factors have influenced the increased reliance upon project management in recent years EXCEPT:
Selected Answer:
b.
the steady demands of ongoing operational work
Answers:
a.
increased competition in the global economy and its influence on market demand
b.
the steady demands of ongoing operational work
c.
realization that methods for large projects can be modified and used for small projects
d.
rapid growth and changes in the information technology and telecommunications industries
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Question 20
2 out of 2 points
The profitability index is calculated by dividing the project's net present value by the present value of the projected cash outflows.
Selected Answer:
a.
False
Answers:
a.
False
b.
True
•
Question 21
2 out of 2 points
Which of the following statements regarding project life cycles is most accurate?
Selected Answer:
d.
Many different project life cycle models are used for different types of projects.
Answers:
a.
The project life cycle is the same for the diverse types of projects managed by an organization.
b.
Project life cycles are very similar regardless of the industry.
c.
All research and development projects use the same four-stage project life cycle model.
d.
Many different project life cycle models are used for different types of projects.
•
Question 22
2 out of 2 points
The vision statement should present a positive, inspiring and vivid description of the organization as it currently exists.
Selected Answer:
a.
False
Answers:
a.
False
b.
True
•
Question 23
2 out of 2 points
You are the manager of hotel del luna resort located in South Korea on the Island of Jeju. You are shifting the focus of the resort from a traditional
fun-in-the sun destination to eco-tourism.
Which of the following project is a strategic?
Selected Answer:
c.
Build a four-mile nature hiking trail
Answers:
a.
any of these
b.
Convert the pool hearing system from electrical to solar power
c.
Build a four-mile nature hiking trail
d.
Test and revise desaster reponse plan based on new requirements
•
Question 24
2 out of 2 points
Project Priority Systems that uses multi-weighted scores, can resolve
Selected Answer:
c.
all of the choices
Answers:
a.
internal political issues
b.
lack of consensus and understanding among top and middle-managers.
c.
all of the choices
d.
over-sharing of resources
•
Question 25
2 out of 2 points
A project requires an investment of PHP2,500 and has a net present value of PHP430. If the internal rate of return is 10%, what is the profitability index for th
Note: If your answer is 2.2367 it shoud be written as 2.24 (at 2 decimal places with proper rounding off).
Selected Answer:
1.17
Correct Answer:
Evaluation Method
Case Sensitivity
1.17
Exact Match
•
Correct Answer
Question 26
2 out of 2 points
Which of the following is NOT a feature of a project?
Selected Answer:
b.
Intended to be repeated in the future.
Answers:
a.
A defined beginning and an end.
b.
Intended to be repeated in the future.
c.
Specific resources are typically allocated.
d.
Follow a plan towards a clear intended end-result.
Response Feedback: #1
•
Question 27
2 out of 2 points
You are the manager of hotel del luna resort located in South Korea on the Island of Jeju. You are shifting the focus of the resort from a traditional
fun-in-the sun destination to eco-tourism.
Which of the following projects is compliance in nature?
Selected Answer:
a.
Test and revise disaster response plan based on new requirements.
Answers:
a.
Test and revise disaster response plan based on new requirements.
b.
Convert the pool heating system from electrical to solar power.
c.
Build a four-mile nature hiking trail.
d.
Any of these.
•
Question 28
2 out of 2 points
Which of the following is NOT a drawback of payback period?
Selected Answer:
b.
It can be used when there is a capital rationing situation to identify those projects
which generate additional cash for investment quickly.
Answers:
a.
It ignores all cash flows after the end of the payback period.
b.
It can be used when there is a capital rationing situation to identify those projects
which generate additional cash for investment quickly.
c.
The choice of a maximum payback period for an investment is arbitrary and subjective.
d.
It ignores the timing of cash flows within the payback period and the time value of
money.
•
Question 29
2 out of 2 points
Installation of a new shared printer in an office is usually NOT regarded as:
Selected Answer:
d.
a routine work
Answers:
a.
an office work
b.
a part of operation
c.
a significant project
d.
a routine work
Response Feedback: #10
•
Question 30
2 out of 2 points
Which is NOT an advantage of payback period?
Selected Answer:
a.
It ignores all cash flows after the end of the payback period.
Answers:
a.
It ignores all cash flows after the end of the payback period.
b.
It is simple to understand and calculate.
c.
It favours short-term projects and tends to minimise uncertainty about financial and
business risks.
d.
It can be used as a screening device as a first stage in eliminating inappropriate
projects.
•
Question 31
2 out of 2 points
A firm utilizes a strategy of capital rationing, which is currently PHP375,000 and is considering the following two projects: Project A has a cost of
PHP335,000 and the following cash flows: year 1 PHP140,000; year 2 PHP150,000; and year 3 PHP100,000. Project B has a cost of PHP365,000
and
the
following
cash
flows:
year
1
PHP220,000;
year
2
PHP110,000;
and
year
3
PHP150,000.
Using a 6% cost of capital, which decision should the financial manager make?
Selected Answer:
b.
Select project B.
Answers:
a.
Select project A.
b.
Select project B.
c.
Select both projects.
d.
Do not select either project.
•
Question 32
2 out of 2 points
For a university term paper assignment, turn the paper to the professor, return any books to the library, discard any reference materials, etc.,
are part of the _____________________.
Selected Answer:
b.
closing
Answers:
a.
execution
b.
closing
c.
conceptualisation
d.
planning
•
Question 33
2 out of 2 points
Which is the CORRECT diagram for the project lifecycle?
Selected Answer:
Answers:
d.
a.
b.
c.
d.
Response Feedback:
•
Question 34
2 out of 2 points
You are the manager of hotel del luna resort located in South Korea on the Island of Jeju. You are shifting the focus of the resort from a traditional
fun-in-the sun destination to eco-tourism.
Which of the following projects is operational in nature?
Selected Answer:
c.
Convert the pool heating system from electrical to solar power.
Answers:
a.
Build a four-mile nature hiking trail.
b.
Test and revise disaster reponse plan based on new requirements.
c.
Convert the pool heating system from electrical to solar power.
d.
Any of these.
•
Question 35
2 out of 2 points
Project X has a cost of PHP100,000 and provides the following annual earnings: year 1 PHP35,000; year 2 PHP25,000; year 3 PHP175,000;
and year 4 PHP10,000. Under the payback method, in which year is the investment recouped?
Selected Answer:
c.
Year 3
Answers:
a.
Year 4
b.
Year 2
c.
Year 3
d.
Not enough information is given to determine an answer.
•
Question 36
2 out of 2 points
Strategic analysis is an important first step in setting strategic direction.
Selected Answer:
b.
True
Answers:
a.
False
b.
True
•
Question 37
2 out of 2 points
All of the following are issues that need to be considered for selecting new product development opportunities using the checklist model EXCEPT:
Selected Answer:
d.
Certainty of the new venture
Answers:
a.
Governmental or stakeholder interference
b.
Potential return on investment
c.
Stability of the development process
d.
Certainty of the new venture
•
Question 38
2 out of 2 points
When a prioritization team is balancing projects, they consider all factors in the multi-weighted scoring techniques, except for
Selected Answer:
d.
leadership style.
Answers:
a.
resource demand.
b.
risk.
c.
type of project.
d.
leadership style.
•
Question 39
2 out of 2 points
Capital rationing assumes that
Selected Answer:
c.
a limited amount of capital is available.
Answers:
a.
maximum profitability will be obtained.
b.
a limited amount of investments are available.
c.
a limited amount of capital is available.
d.
a limited amount of investments are available and maximum profitability will be obtained.
•
Question 40
2 out of 2 points
(INFORMATION FOR THE NEXT 2 QUESTIONS)
Project Selection and Prioritization Matrix
Project/Criteria
& Weight:
Project A
Project B
Project C
Project D
New
Products
Customer
Relations
Supplier
Relations
Success
Probabilit
10
5
50
3
30
3
30
2
20
6
3
18
4
24
4
24
2
12
7
3
21
5
35
3
21
5
35
5
3
15
4
20
2
10
3
15
Based on the information provided in above, which project has the highest probability of success?
Note: if your answer is “Project X”, it should be written as Project X
Selected Answer:
Project B
Correct Answer:
Evaluation Method
Exact Match
•
Question 41
Correct Answer
Case Sensitivity
Project B
2 out of 2 points
A firm utilizes a strategy of capital rationing, which is currently PHP375,000 and is considering the following two projects: Project A has a cost of
PHP335,000 and the following cash flows: year 1 PHP140,000; year 2 PHP150,000; and year 3 PHP100,000. Project B has a cost of PHP365,000
and
the
following
cash
flows:
year
1
PHP220,000;
year
2
PHP110,000;
and
year
3
PHP150,000.
Using a 6% cost of capital, what is the net present value of project A?
Selected Answer:
b.
PHP14,520
Answers:
a.
PHP25,930
b.
PHP14,520
c.
PHP11,589
d.
PHP19,230
•
Question 42
2 out of 2 points
Which of the following is false of multiweighted scoring models?
Selected Answer:
b.
Projects with higher scores are considered undesirable.
Answers:
a.
Each criterion is assigned a weight.
b.
Projects with higher scores are considered undesirable.
c.
Will include quantitative criteria
d.
Will include qualitative criteria
Response
Feedback:
•
A weighted scoring model typically uses several weighted selection criteria to evaluate project proposals. Weighted scoring
models will generally include qualitative and/or quantitative criteria. Each selection criterion is assigned a weight. Scores are
assigned to each criterion for the project, based on its importance to the project being evaluated. The weights and scores are
multiplied to get a total weighted score for the project. Using these multiple screening criteria, projects can then be compared
using the weighted score. Projects with higher weighted scores are considered better.
Question 43
Which of the following statements correctly describes a weakness associated with the financial project selection model?
2 out of 2 points
Selected Answer:
b.
Payback period models do not consider the profit to be realized after the costs are paid.
Answers:
a.
The Internal Rate of Return (IRR) method is difficult to use when a project has conventional cash flows.
b.
Payback period models do not consider the profit to be realized after the costs are paid.
c.
The benefit-to-cost models favor projects which generate the smallest absolute return over a specified period.
d.
The Net Present Value (NPV) method does not consider the time value of money.
•
Question 44
2 out of 2 points
The objective of capital rationing is to select the group of projects that provides the quickest overall payback and does not require more pesos
than are budgeted.
Selected Answer:
b.
False
Answers:
a.
True
b.
False
•
Question 45
2 out of 2 points
Calculate the profitability index for a project with the following cash flows. Assume a cost of capital of 10%
Year
0
1
2
3
Selected Answer:
Cash Flow
(15,000)
5,000
8,000
10,000
a.
1.24
Answers:
a.
1.24
b.
0.78
c.
1.57
d.
1.13
•
Question 46
0 out of 2 points
Suppose that the time to finish a project is reduced from 5 weeks to 4 weeks. How will it impact on cost and quality?
Selected Answer:
d.
The cost to complete the project will increase and the quality will deteriorate.
Answers:
a.
The cost will remain the same and the quality will be excellent.
b.
There will be no impact on cost and quality.
c.
Both cost and quality will decrease along with the time taken to finish the project.
d.
The cost to complete the project will increase and the quality will deteriorate.
Response Feedback: #5
•
Question 47
0 out of 2 points
Suppose the cost of a project is reduced from PHP20,000 to PHP15,000. How will it impact on quality and time?
Selected Answer:
d.
The quality will remain the same and the project will take less time to complete.
Answers:
a.
The quality will deteriorate and the project will take a long time to complete.
b.
There will be no impact on quality and time.
c.
The quality will be excellent and the project will take a long time to complete.
d.
The quality will remain the same and the project will take less time to complete.
Response Feedback: #27
•
Question 48
2 out of 2 points
The objective of capital rationing is to select the group of projects that provides the highest overall net present value and does not require more
pesos than are budgeted.
Selected Answer:
a.
True
Answers:
a.
True
b.
False
•
Question 49
2 out of 2 points
The profitability index (PI) is particularly useful in comparing mutually exclusive projects:
Selected Answer:
a.
of different sizes.
Answers:
a.
of different sizes.
b.
with different IRR's.
c.
of different lengths.
d.
where the IRR and NPV select different projects.
•
Question 50
2 out of 2 points
The financial model that measures the current value of all cash inflows and outflows using management's minimum desired rate of return is
known as the _________ model.
Selected Answer:
d.
NPV
Answers:
a.
Payback
b.
IRR
c.
ROI
d.
NPV
Response Feedback:
•
Question 1
2 out of 2 points
In a very large project having a budget of PHP5 million and a project team of over one hunderd persons, the project manager constructs a work
breakdown structure. The project manager will do the WBS to the detail level of which of the following?
Selected Answer:
a.
Work package
Answers:
a.
Work package
b.
Activity
c.
WBS element
d.
Task
•
Question 2
2 out of 2 points
The family have been saving money in order to buy a house. They figure that given current interest rates they could afford a PHP400,000 home. Before lookin
possibility of building a new home. The family figure they could buy a suitable lot for PHP70,000-PHP75,000. At a minimum they want to build a 2,300 square-foo
is
PHP160
per
squa
NOTE: If your answer is PHP10,000.79 it should be written as 10,0001 (no peso sign, with comma, and round off to whole amount)
Given this information, what is the maximum estimated cost of constructing a house for the family?
Selected Answer:
443,000
Correct Answer:
Evaluation Method
Case Sensitivity
443,000
Exact Match
•
Correct Answer
Question 3
2 out of 2 points
Which of the following does NOT help describe a bottom-up estimating approach?
Selected
Answer:
They are made by someone who uses experience and/or information from someone else to determine overall project cost
and duration.
Answers:
They are made by someone who uses experience and/or information from someone else to determine overall project cost
and duration.
They establish low-cost, efficient methods for completing activities.
They typically comes from the people actually doing the work and who are most knowledgeable about the task at hand.
Estimates are made at the work package level and then "rolled up" to determine estimates for major deliverables and for
the project itself.
They can take place after the project has been planned in detail.
Response Feedback: Good work
•
Question 4
2 out of 2 points
Big Boss ABC is forecasting the time and cost of developing an intranet for a new customer. His department has completed six such intranets
for customers during the last two years. Although the proposed system is about the same size as the others, he estimates that it will take about
10 percent less time and money. Which of the following methods is she using?
Selected Answer:
Learning curve
Answers:
Ratio
Template
Apportion
Function point
Learning curve
Response Feedback: Good work
•
Question 5
2 out of 2 points
Which of the following items best describes a project Work Breakdown Structure (WBS)?
Selected Answer:
d.
a tool that the team uses to progressively divide deliverables into smaller and smaller pieces
Answers:
a.
a list of activities to complete the project work packages
b.
an organizational chart depicting who will perform project work
c.
a schedule depicting when project work will be performed
d.
a tool that the team uses to progressively divide deliverables into smaller and smaller pieces
•
Question 6
The integration of the lowest level of the WBS with the organizational units responsible for performing the work is known as
Selected Answer:
2 out of 2 points
Organization breakdown structure.
Answers:
Responsibility matrix.
Organization breakdown structure.
Work breakdown structure.
Priority matrix.
Process breakdown structure.
Response Feedback: Good work
•
Question 7
2 out of 2 points
ABC Company a computer software firm has a contract to produce audit program for 10 audit firms. The company will develop and produce the eight units.
costs directly traceable to the project is PHP2,000,000 and the required labor hours for the 1st computer software is 10,000 at PHP550 per direct labor ho
experience is approximately 70% while its target service fee is 25% of total direct costs. In addition, PHP1,000,000 is the standard allocated fixed costs that
NOTE: If your answer is PHP10,000.79 it should be written as 10,0001 (no peso sign, with comma, and round off to whole amount)
Compute the estimated total direct cost of the project:
Selected Answer:
25,666,500
Correct Answer:
Evaluation Method
Correct Answer
25,666,500
Exact Match
•
Case Sensitivity
Question 8
2 out of 2 points
Statement 1- The best way to improve estimates is to collect and archive data on past project estimates and actuals.
Statement 2- Saving future data- estimates and actuals- provides a knowledge base for improving project time and cost estimating.
Statement 3- Creating an estimating database is not a common practive among leading project management organization.
Selected Answer:
c.
only one statement is true
Answers:
a.
all statements are true
b.
ony one statement is false
c.
only one statement is true
d.
all statements are false
•
Question 9
0 out of 2 points
The following are factors that can influence the quality of estimates, except?
Selected Answer:
d.
Resources
Answers:
a.
Project Complexity
b.
Project Stuctures
c.
Independence
d.
Resources
•
Question 10
2 out of 2 points
Mr. ABC is collecting estimates for a house that he will have the funding to build in 12 months. Which of the following factors does Mr. ABC
need to consider in regard to the quality of these estimates?
Selected Answer:
Planning horizon
Answers:
Padding estimates
Planning horizon
Project structure
People
Project duration
Response Feedback: Good work
•
Question 11
2 out of 2 points
A Responsibility Matrix will clarify
Selected Answer:
Both supports and responsibilities.
Answers:
Tasks.
Supports.
Responsibilities.
Both supports and responsibilities.
Response Feedback: Good work
•
Question 12
2 out of 2 points
Which of the following is NOT true regarding scope creep?
Selected Answer:
It is when the cost of the project is more than expected.
Answers:
It is when the cost of the project is more than expected.
It is the tendency for the project scope to expand over time.
It most likely caused by a scope statement that is too broad.
It can have both positive and negative impacts on a project.
It can lead to added costs and possible project delays.
Response Feedback: Good work
•
Question 13
2 out of 2 points
When work packages are integrated with organizational units, a control point is created called a
Selected Answer:
Cost account.
Answers:
Responsibility matrix.
Priority matrix.
Work package.
Cost account.
Project overlap.
Response Feedback: Good work
•
Question 14
2 out of 2 points
Large projects that have long time horizons and a very high complexity can be referred to as
Selected Answer:
Both Mega Projects and White Elephants.
Answers:
Mega Projects.
High Risk.
White Elephants.
Both Mega Projects and White Elephants.
Response Feedback: Good work
•
Question 15
2 out of 2 points
ABC Company a computer software firm has a contract to produce audit program for 10 audit firms. The company will develop and produce the
eight units. ABC has estimated that the material and overhead costs directly traceable to the project is PHP2,000,000 and the required labor
hours for the 1st computer software is 10,000 at PHP550 per direct labor hour. The estimated improvement rate based on past experience is
approximately 70% while its target service fee is 25% of total direct costs. In addition, PHP1,000,000 is the standard allocated fixed costs that
will cover the office expenses.
NOTE: If your answer is PHP10,000.79 it should be written as 10,0001 (no peso sign, with comma, and round off to whole amount)
What is the average labor hours of the project per computer software?
Selected Answer:
d.
answer not given
Answers:
a.
10,000
b.
3,058
c.
4,931
d.
answer not given
Response
Feedback:
•
Since the company will only produce 8 units then 10,000 hrs x 4.303 = 43,030 divided by the number of units which is 8 then
the average hours for the eight units is 5,378.75 hours
Question 16
2 out of 2 points
Which of the following is not the recommended method of estimating project times and costs?
Selected Answer:
d.
benchmarking
Answers:
a.
parametrics method
b.
hybrid estimating
c.
delphi method
d.
benchmarking
•
Question 17
2 out of 2 points
Which of the following is least likely to be included in a work package?
Selected Answer:
Overhead expenses
Answers:
How long the work package should take to complete
A description of work to be performed
Overhead expenses
How much the work package should cost to complete
The person responsible for the work package
Response Feedback: Good work
•
Question 18
0 out of 2 points
Mrs. Cruz and her husband, Mr. Cruz, are planning their dream house. The lot for the house sits high on a hill with a beautiful view of the Philippine Sea. The pl
The average price for a lot and house similar to this one has been PHP145 per square foot. Fortunately, Mr. Cruz is a retired plumber and feels he can save money
can
take
care
of
the
interior
decorating.
They
both
believe
they
can
complete
the
exterior
painting
w
The following average cost information is available from a local bank that makes loans to local contractors and disperses progress payments to contra
25%Excavation and framing complete
8%Roof and fireplace complete
3%Wiring roughed in
6%Plumbing roughed in
5%Siding on
17%Windows, insulation, walks, plaster, and garage complete
9%Furnace installed
4%Plumbing fixtures installed
5%Exterior painting completed
4%Light fixtures installed; finish hardware installed
6%Carpet and trim installed
4%Interior decorating
4%Floors laid and finished
NOTE: If your answer is PHP10,000.79 it should be written as 10,0001 (no peso sign, with comma, and round off to whole amount)
Estimate what the cost of the house would be if the family will use their talents to do some of the work themselves.
Selected Answer:
374,100
Correct Answer:
Evaluation Method
Case Sensitivity
369,750
Exact Match
•
Correct Answer
Question 19
2 out of 2 points
Companies are using which of the following for improving the estimating process for future projects?
Selected Answer:
Creating historical databases of previous projects
Answers:
Adjusting estimates based on individual forecasting abilities
Benchmarking and using the experience of other companies
Using time and motion studies
Creating historical databases of previous projects
Establishing an estimating training course for all employees
Response Feedback: Good work
•
Question 20
2 out of 2 points
The fact that human activities typically improve when they are done on a repetitive basis is described by a(n):
Selected Answer:
b.
learning curve.
Answers:
a.
normal distribution curve.
b.
learning curve.
c.
binomial distribution curve.
d.
exponential curve.
e.
fatigue factor allowance.
•
Question 21
2 out of 2 points
A project team has a programmer on the team. The programmer will work on the project for twenty-siz weeks as a full-time team member. Basic
wages are PHP50 per hour, fringe benefits are 30%, and overhead costs are 50% of wages plus fringe benefits. Use a forth-hour work week.
One of the tasks that the person in the above project is assigne requires 100 hours of effort. What is the cost of the task?
Selected Answer:
d.
PHP9,750
Answers:
a.
PHP13,541
b.
PHP16,927
c.
PHP12,187
d.
PHP9,750
•
Question 22
2 out of 2 points
If a project is small and does not require an elaborate system to assign tasks, which of the following is a good choice?
Selected Answer:
Responsibility matrix
Answers:
Responsibility matrix
Organization breakdown structure
Work breakdown structure
Priority matrix
Process breakdown structure
Response Feedback: Good work
•
Question 23
2 out of 2 points
A project team has a programmer on the team. The programmer will work on the project for twenty-siz weeks as a full-time team member. Basic
wages are PHP50 per hour, fringe benefits are 30%, and overhead costs are 50% of wages plus fringe benefits. Use a forth-hour work week.
What is the cost of this employee for the project?
Selected Answer:
b.
PHP101,400
Answers:
a.
PHP176,041
b.
PHP101,400
c.
PHP126,750
d.
PHP136,760
•
Question 24
2 out of 2 points
Which of the following is a good condition for top-down estimating?
Selected Answer:
Internal, small project
Answers:
Cost and time important
Fixed price contract
Customer wants details
Internal, small project
Large scale project involving several subcontractors
Response Feedback: Good work
•
Question 25
0 out of 2 points
Statement 1- Some project promoters underestimates revenue and overestimate the project costs for lower tax liability.
Statement 2- Project Managers should refine its estimates because things may go wrong on the projects specially during the execution phase
of the project.
Statement 3- No need to refine the estimates because senior managers have a lot of experience about the project.
Selected Answer:
d.
one statement is false
Answers:
a.
one statement is true
b.
all statement is false
c.
all statement is true
d.
one statement is false
•
Question 26
2 out of 2 points
Work Breakdown Structures can be displayed in a variety of formats including which of the following?
Selected Answer:
d.
an indented outline format
Answers:
a.
a sequential process diagram
b.
an inverted pyramid
c.
fishbone or cause and effect diagram
d.
an indented outline format
•
Question 27
2 out of 2 points
The pattern of improvement identified from a worker having performed a task multiple time is known as a
Selected Answer:
Learning Curve.
Answers:
Reduced Failure Rate.
Optimistic Estimate.
Learning Curve.
Both Reduced Failure Rate and Learning Curve.
Response Feedback: Good work
•
Question 28
2 out of 2 points
A Process Breakdown Structure can provide a reasonable alternative to a Work Breakdown structure for an extensive development project if:
Selected Answer:
Phase exit criteria is firmly established.
Answers:
Phase exit criteria is firmly established.
There are appropriate predecessor relationships in place.
Deliverables are tightly aligned to milestones.
Risk planning is included early in the project.
Response Feedback: Good work
•
Question 29
2 out of 2 points
Mr. ABC is a senior manager in a projectized company XYZ. What is the level of details of information about a particular project is best for Mr.
ABC?
Selected Answer:
a.
Major milestones
Answers:
a.
Major milestones
b.
Information for each deliverables
c.
Work Packages Information
d.
Activity Level Information
•
Question 30
2 out of 2 points
Which of the following would best represent direct project costs?
Selected Answer:
Labor, materials and equipment
Answers:
Only labor
Only materials
Only equipment
Both labor and materials
Labor, materials and equipment
Response Feedback: Good work
•
Question 31
2 out of 2 points
Which of the following methods is NOT considered a top-down approach to estimating project time and cost?
Selected Answer:
Template
Answers:
Ratio
Template
Apportion
Function point
Learning curve
Response Feedback: Good work
•
Question 32
2 out of 2 points
ABC Company a computer software firm has a contract to produce audit program for 10 audit firms. The company will develop and produce the
eight units. ABC has estimated that the material and overhead costs directly traceable to the project is PHP2,000,000 and the required labor
hours for the 1st computer software is 10,000 at PHP550 per direct labor hour. The estimated improvement rate based on past experience is
approximately 70% while its target service fee is 25% of total direct costs. In addition, PHP1,000,000 is the standard allocated fixed costs that
will cover the office expenses.
NOTE: If your answer is PHP10,000.79 it should be written as 10,0001 (no peso sign, with comma, and round off to whole amount)
What price would you ask for the project?
Selected Answer:
c.
36,400,000
Answers:
a.
23,523,750
b.
4,602,375
c.
36,400,000
d.
71,250,000
•
Question 33
2 out of 2 points
There are 5 steps involved when defining a project; which of the following is the last?
Selected Answer:
Code the WBS for tracking
Answers:
Code the WBS for tracking
Assign the cost account to a manager
Assign the work package to a manager
Develop the responsibility matrix
All of these are included in the final step.
Response Feedback: Good work
•
Question 34
2 out of 2 points
"To construct a high-quality, custom home within five months at costs not to exceed PHP150,000" is best classified as
Selected Answer:
An objective.
Answers:
A deliverable.
A milestone.
An objective.
A limit.
An exclusion.
Response Feedback: Good work
•
Question 35
2 out of 2 points
A key aspect to communication plans are that they allow the project manager and the project team to
Selected Answer:
Actively control the flow of information.
Answers:
Meet deadlines more effectively.
Focus on defect resolution.
Effectively control costs on the project.
Actively control the flow of information.
Response Feedback: Good work
•
Question 36
2 out of 2 points
Which of the following statements is not true?
Selected
Answer:
d.
The most commonly used scheme in coding the WBS in practice is symbol coding system.
Answers:
a.
Gaining the maxmimum usefulness of a breakdown structure depends on a coding system.
b.
The codes are used to define levels and elements in the WBS, organization elements, work packages, and budget and cost
information.
c.
The codes allow reports to be consolidated at any level in the structure.
d.
The most commonly used scheme in coding the WBS in practice is symbol coding system.
Response Feedback: The most commonly used scheme in practice is numeric indention.
•
Question 37
2 out of 2 points
Reasons why estimating time and cost are important include all of the following EXCEPT
Selected Answer:
To help establish a project selection process.
Answers:
To schedule work.
To determine how long the project should take and cost.
To develop cash flow needs.
To determine how well the project is progressing.
To help establish a project selection process.
Response Feedback: Good work
•
Question 38
2 out of 2 points
Statement 1- According to learning curve theory, every doubling of total output will produce a constant percentage decrease in time per unit.
Statement 2- Learning curves generally apply to situations in which there is a high degree of human involvement and tasks are fairly
repetitive.
Statement 3- Repetition of a task generally results in a reduction of labor hours each successive time a worker performs that task.
Selected Answer:
d.
All statements are true
Answers:
a.
All statements are false
b.
Onle one statement is true
c.
Only one statement is false
d.
All statements are true
•
Question 39
2 out of 2 points
A project is expected to have a 70 percent learning curve. The second unit has been completed in 20 hours. Accordingly, the 2 units can be completed for how man
(Note: If your answer is 20.80 it shoud be written as 20.80)
Selected Answer:
48.57
Correct Answer:
Evaluation Method
Case Sensitivity
48.57
Exact Match
•
Correct Answer
Question 40
2 out of 2 points
Accounting would be an example of which of the following costs typically found in a project?
Selected Answer:
General and administrative overhead
Answers:
Labor
Direct
Direct project overhead
General and administrative overhead
Salary
Response Feedback: Good work
•
Question 41
2 out of 2 points
Which of the following lists of projects are suitable for a Process Breakdown Structure?
Selected Answer:
a.
One-time Audit Engagement
Answers:
a.
One-time Audit Engagement
b.
10 Storey Building
c.
New vaccine for the pandemic
d.
New computer hardware
•
Question 42
2 out of 2 points
Which of the following is a good condition for bottom-up estimating?
Selected Answer:
When there is a fixed price contract
Answers:
When the project involves strategic decision making
When the project is internal and small
When there is a fixed price contract
When there is high uncertainty involved in the project
When there is an unstable scope
Response Feedback: Good work
•
Question 43
2 out of 2 points
The _________ is used to assist in making project trade-offs among schedule, budget, and performance objectives.
Selected Answer:
Project priority matrix
Answers:
Responsibility matrix
Work breakdown structure
Project priority matrix
Work package
Criterion matrix
Response Feedback: Good work
•
Question 44
2 out of 2 points
After reviewing the project scope statement, the owner specifies that costs MUST stay within PHP400,000. This criterion is classified as:
Selected Answer:
Constrained.
Answers:
Constrained.
Enhanced.
Accepted.
Limited.
Fixed.
Response Feedback: Good work
•
Question 45
2 out of 2 points
A common tool project teams use is a responsibility assignment matrix (RAM). Typically, this chart will depict:
Selected Answer:
d.
all the work packages and the resources assigned for various responsibilities regarding each work package.
Answers:
a.
the duration of each activity.
b.
the early start and early finish, and late start and late finish, of each schedule activity.
c.
the hierarchical organizational reporting structure.
d.
all the work packages and the resources assigned for various responsibilities regarding each work package.
•
Question 46
2 out of 2 points
A project manager is revieweing the scope of the project and the scope baseline of the project. This includes which of the following?
Selected Answer:
b.
The original scope of the project plus or minus any scope changes.
Answers:
a.
The original project description and the project charter.
b.
The original scope of the project plus or minus any scope changes.
c.
The current budget of the project.
d.
The originial project schedule, budget, and scope.
•
Question 47
2 out of 2 points
A "Dissemination Mode" is
Selected Answer:
What defines how project communication is to occur.
Answers:
How project schedules are version controlled.
A description of what is important to project stakeholders.
What defines how project communication is to occur.
None of these choices.
Response Feedback: Good work
•
Question 48
2 out of 2 points
All of the following are ways the WBS helps in managing projects EXCEPT
Selected Answer:
Allows the project manager to establish the overall objective of the project.
Answers:
With cost and time estimates the WBS makes it possible to plan, schedule and budget the project.
It provides management with information appropriate to each level.
Can be used to define communication channels.
Allows the project manager to establish the overall objective of the project.
As it is developed, organizational units and individuals can be assigned responsibility of work packages.
Response Feedback: Good work
•
Question 49
2 out of 2 points
The salary of the project manager would be an example of what type of cost found in a project?
Selected Answer:
Direct project overhead
Answers:
Labor
Direct
Direct project overhead
General and administrative overhead
Salary
Response Feedback: Good work
•
Question 50
2 out of 2 points
ABC Company a computer software firm has a contract to produce audit program for 10 audit firms. The company will develop and produce the eight units.
costs directly traceable to the project is PHP2,000,000 and the required labor hours for the 1st computer software is 10,000 at PHP550 per direct labor ho
experience is approximately 70% while its target service fee is 25% of total direct costs. In addition, PHP1,000,000 is the standard allocated fixed costs that
NOTE: If your answer is PHP10,000.79 it should be written as 10,0001 (no peso sign, with comma, and round off to whole amount)
Compute the estimated total direct labor cost:
Selected Answer:
23,666,500
Correct Answer:
Evaluation Method
Exact Match
Correct Answer
23,666,500
Case Sensitivity