50 MCQs SAMPLE For Project Management
50 MCQs SAMPLE For Project Management
50 MCQs SAMPLE For Project Management
Course MMS
Semester IV
Subject-Project Management
1. 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
2. Which stage of project management life cycle requires the maximum time of completion
A.Conceptualization
B. Planning
C. Execution
D. Estimation
4 .In the initial stage of the project the probability of completing the project is ___ .
A.Zero
B.High
C.Low
D.Medium
9. 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
A.crash time
B.normal time
C.optimistic time
D.between normal time and crash time
A.Shortening the project duration by reducing the time of one or more critical activities
B.Adding resources at critical points
C.Doing technical analysis of the finished work for review
D.Adding duration to each activity
15. If there is no inflation during a period, then the Money Cash flow would be equal to
A. Present Value,
B. Real Cash flow,
C. Real Cash flow + Present Value,
D. Real Cash flow - Present Value
17. The criteria for acceptance of a project on the basis of Profitability Index (PI) is
A. PI=0
B. PI > 0
C. PI < 0
D. PI > 1
A.Significant Cost
B.Insignificant costs
C.Direct Costs
D.Indirect Costs
19. For an activity in a CPM analysis, the early Finish time is 13 and the late Finish time is
13. Duration of activity is 6. Which of the following statements is true?
A.Start of the activity can be delayed without affecting the EST of subsequent activity
23. 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
25. Which risk is connected to the circumstance outside the project that may influence the
scope of work and the performance of the organization?
A.Operational Risk
B.Financial Risk
C.Strategic Risk
D.Contextual Risk
A. Factory manager
B. Operation manager
C. Project manager
D.Purchase Manager
31. 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
32. 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
33.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
34 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)
35. 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
37. 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.
38: 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%
39.A firm is about to undertake a project and has computed the NPV of the project using a
variety of discount rates:
Discount Rate used NPV
10% 130
15% 50
20% -50
What is the approximate IRR of this project?
A 20%
B 17.5%
C 15%
D 22.5%
40. A project has a 60% chance of a $100,000 profit and a 40 per cent of a US $100,000 loss.
The Expected Monetary Value for the project is
A. $100,000 profit
B. $60,000 loss
C. $ 20,000 profit
D. $40,000 loss
41. In a payback period method of project evaluation and appraisal the project with
……………….or equal to cut off period will be accepted.
A. More than
B. Less than
C.Positive
D. Negative
42. A project with total budget cost of 30 crores is scheduled to be completed in 80 weeks.
A periodic review was carried out at end of 60 weeks and results are as given:
Budgeted cost of work performed (EV) = 17 crores
Actual Cost of work performed (AC = 19 crores
Budgeted cost of work scheduled (PV) = 21 crores
What is the cost performance index?
A.0.895
B.0.81
C.0.90
D.1.12
A. 73.5
B. 173.5
C. 273.5
D. 100
45. Amount of work completed to date compared with planned in the Earned Value
Management method is
46. 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
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
49. If you would like to see a list of resources and the tasks that people are assigned to. What
view best displays this information?
A. Resource Sheet
B. Task Usage
C. Gantt Chart
D.: Resource Usage
ANSWER KEY
Q1 C Q2 C Q3 C Q4 C Q5 B
Q6 C Q7 C Q8 A Q9 B Q10 D