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This set of Project Management Multiple Choice Questions & Answers (MCQs) focuses on Project Management Set 9

Q1 | Costs that are not directly related to the products or services of the project, but are indirectly related to performing the project.
  • Intangible Costs
  • Sunk Cost
  • Tangible Costs
  • Indirect Costs
Q2 | Relationship based on unrelated level of activity and past data of cost is measured withhelp of
  • cost estimation
  • price estimation
  • unit estimation
  • production estimation
Q3 | In estimation of cost functions, variations in a single activity level represents the
  • related total costs
  • related fixed cost
  • related variable cost
  • related per unit cost
Q4 | The latest finish time for an activity:
  • Equals the min. of LFT − t for all immediate successors
  • Equals the max. of LFT − t for all immediate predecessors.
  • Equals the max. of EST + t for all immediate predecessors.
  • Equals the min. of EST + t for all immediate successors.
Q5 | Which of the following statements is true?
  • PERT is considered as a deterministic approach and CPM is a probabilistic techniques.
  • PERT is considered as a probabilistic techniques and CPM is considered as a deterministic approach.
  • PERT and CPM are both probabilistic techniques.
  • PERT and CPM are both considered as deterministic approachs.
Q6 | In corporate costs, cost incurred to finance construction of new equipment are classified as
  • treasury costs
  • discretionary costs
  • human resource management costs
  • corporate administration costs
Q7 | An uncertain event or condition that, if it occurs, has a positive or negative effect on a project objectives is termed.
  • Random Chance
  • Disaster
  • Risk
  • Hazard
Q8 | The cost impact of a risk event occurring as a project proceeds through its life cycle tends to
  • Slowly rise
  • Slowly drop
  • Drop sharply and then level out
  • Rise sharply and then level out
Q9 | Evaluation process of proposed projects or groups of projects is known as:
  • Project Analysis
  • Project Compilation
  • Project selection
  • Project Documentation
Q10 | Nature of interrelationships between components in a system defines the
  • Function of system
  • Structure of system
  • Environment of system
  • Platform of system
Q11 | Listing goals of each existing and proposed project is first step in
  • Data Collection
  • Establishment of Project council
  • Prioritizing the projects
  • Identification of project categories
Q12 | For any project word objective is held to be synonymous with
  • Fact
  • Option
  • Opinion
  • Assumption
Q13 | Which of these is not one of the constraints of a project?
  • Scope
  • Resources
  • Team
  • Budget
Q14 | Which of the following is not correct about initial phase of a project?
  • The cost associated at the beginning of the project is highest.
  • Stakeholders have maximum influence during this phase
  • The highest uncertainty is at this stage of the project.
  • All the above statements are correct.
Q15 | Which is the first stage in the project management model?
  • Understanding the project environment
  • Project definition
  • Project control
  • Project planning
Q16 | A clear hierarchy of objectives in the project definition would NOT normally contain:
  • The purpose
  • An End result
  • Success criteria
  • Control mechanisms
Q17 | Which of the following is a factor that influences project selection?
  • Perceived and real needs
  • List of potential and ongoing projects
  • Current organizational environment
  • All of the above
Q18 | The primary deliverable from the project identification and selection phase is a:
  • schedule of specific IS development projects.
  • Statement of Work.
  • mission statement.
  • design strategy.
Q19 | When classifying and ranking projects, which of the following refers to the amount and type of resources the project requires and their availability?
  • Value chain availability
  • Business placement
  • Resource availability
  • Potential benefits
Q20 | When classifying and ranking projects, which of the following refers to the extent to which the project is viewed as helping the organization achieve its strategic objectives and longterm goals?
  • Resource availability
  • Business placement
  • Strategic alignment
  • Potential benefits
Q21 | During feasibility analysis it is necessary to examine several alternative solutions because(i) a comparison of alternatives will lead to a cost-effective solution(ii) a pre-conceived single solution may turn out to be unimplementable(iii) it is always good to examine alternatives(iv) management normally looks at alternatives
  • i and iii
  • i and iv
  • i and ii
  • ii and iv
Q22 | Goals are identified by
  • discussion with all concerned
  • pinpointing unsatisfactory performance
  • finding poor management
  • examining a variety of documents
Q23 | By technical feasibility of a solution we mean that
  • technology is available to implement it
  • persons are available to implement it
  • persons have technical ability to implement it
  • funds are available to implement it
Q24 | By operational feasibility we mean
  • the system can be operated nicely
  • the system is unusable by operators
  • the system can be adapted by an organization without major disruptions
  • the system can be implemented
Q25 | By economic feasibility of a system we mean that
  • it is economical to operate
  • it is expensive to operate
  • it will be cost-effective if implemented
  • finances are available to implement the system and it will be cost – effective