Finance

Q: A network consists of the following list. Times are given in weeks. Activity Preceding Optimistic Probable Pessimistic A -- 5 11 14 B - 3 3 9 C -- 6 10 14 D A, B 3 5 7 E B 4 6 11 F C 6 8 13 G D, E 2 4 6 H F 3 3 9 a. Draw the network diagram. b. Calculate the expected duration and variance of each activity. c. Calculate the expected duration and variance of the critical path. d. Calculate the probability that the project will be completed in less than 28 weeks.

Q: Three critical path activities are candidates for crashing on a CPM network. Activity details are in the table below. Activity Normal Time Normal Cost Crash Duration Crash Cost A 9 days $8,000 7 days $12,000 B 5 days $2,000 3 days $10,000 C 12 days $9,000 11 days $12,000 a. What is the crash cost per unit time for activity A? b. What is the crash cost per unit time for activity B? c. Which activity should be crashed first to cut one day from the project's duration; how much is added to project cost? d. Which activity should be the next activity crashed to cut a second day from the project's duration; how much is added to project cost? e. Assuming no other paths become critical, how much can this project be shortened at what total added cost?

Q: Three critical path activities are candidates for crashing on a CPM network. Activity details are in the table below. Activity Normal Time Normal Cost Crash Duration Crash Cost X 8 days $6,000 6 days $8,000 Y 3 days $1,800 2 days $2,400 Z 12 days $5,000 9 days $7,700 a. What is the crash cost per unit time for each of the three activities? b. Which activity should be crashed first to cut one day from the project's duration; how much is added to project cost? c. Which activity should be the next activity crashed to cut a second day from the project's duration; how much is added to project cost?

Q: Cavern Company's output for the current period results in a $5,250 unfavorable direct material price variance. The actual price per pound is $56.50 and the standard price per pound is $55.00. How many pounds of material are used in the current period? A.5,393. B.5,110. C.3,500. D.3,750. E.4,000.

Q: When recording the journal entry for labor, the Work in Process Inventory account is A.Debited for standard labor cost. B.Debited for actual labor cost. C.Credited for standard labor cost. D.Credited for actual labor cost. E.Not used.

Q: The network below represents a project being analyzed by Critical Path Methods. Activity durations are indicated on the network. a. Identify the activities on the critical path. b. What is the duration of the critical path? c. Calculate the amount of slack time at activity H. d. If activity I were delayed by ten time units, what would be the impact on the project duration?

Q: Seafarer Company established a standard direct materials cost of 1.5 gallons at $2 per gallon for one unit of its product. During the past month, actual production was 6,500 units. The material quantity variance was $700 favorable and the material price variance was $470 unfavorable. The entry to charge Work in Process Inventory for the standard material costs during the month and to record the direct material variances in the accounts would include all of the following except: A.A debit to Work in Process for $19,500. B.A credit to Raw Materials for $19,270. C.A debit to Direct Material Price Variance for $470. D.A credit to Direct Material Quantity Variance for $700. E.A debit to Cost of Goods Sold for $230.

Q: Consider the network described in the table below. Activity Immediate Predecessor(s) Pessimistic Probable Optimistic J -- 15 10 8 K -- 9 8 7 L J 10 6 5 M J 3 3 3 N K,M 9 5 1 O K,M 10 7 4 P L,N 10 8 3 a. Calculate the expected duration of each activity. b. Calculate the expected duration and variance of the critical path. c. Calculate the probability that the project will be completed in fewer than 30 time units.

Q: A partially solved PERT problem is detailed in the table below. Times are given in weeks. Activity Preceding Optimistic Time Probable Time Pessimistic Time Expected Time Variance A -- 7 9 14 1.361 B A 2 2 8 0 C A 8 12 16 0 D A 3 5 10 1.361 E B 4 6 8 0 F B 6 8 10 0 G C, F 2 3 4 0 H D 2 2 8 1.000 I H 6 8 16 2.778 J G, I 4 6 14 2.778 K E, J 2 2 5 0.250 a. Calculate the expected time for each activity. Enter these values in the appropriate column in the table above. b. Which activities form the critical path? c. What is the estimated time of the critical path? d. What are the project variance and the project standard deviation? e. What is the probability of completion of the project after week 40?

Q: A network consists of the following list. Times are given in weeks. Activity Preceding Duration A -- 9 B A 2 C A 12 D A 5 E B 6 F B 8 G C, F 3 H D 2 I H 8 J G, I 6 K E, J 2 a. Draw the network diagram. b. Which activities form the critical path? c. How much slack exists at activities A and F? d. What is the duration of the critical path?

Q: The following information relating to a company's overhead costs is available. Actual total variable overhead $73,000 Actual total fixed overhead $17,000 Budgeted variable overhead rate per machine hour $ 2.50 Budgeted total fixed overhead $15,000 Budgeted machine hours allowed for actual output 30,000 Based on this information, the total variable overhead variance is: A.$2,000 favorable. B.$6,000 favorable. C.$2,000 unfavorable. D.$6,000 unfavorable. E.$1,000 favorable.

Q: The network below represents a project being analyzed by Critical Path Methods. Activity durations are A=5, B=2, C=12, D=3, E=5, F=1, G=7, H=2, I=10, and J=6. a. What task must be on the critical path, regardless of activity durations? b. What is the duration of path A-B-E-H-J? c. What is the critical path of this network? d. What is the length of the critical path? e. What is slack time at activity H? f. What is the Late Finish of activity H? g. If activity C were delayed by two time units, what would happen to the project duration?

Q: The following information relating to a company's overhead costs is available. Budgeted fixed overhead rate per machine hour $0.50 Actual variable overhead $73,000 Budgeted variable overhead rate per machine hour $2.50 Actual fixed overhead $17,000 Budgeted hours allowed for actual output achieved 32,000 Based on this information, the total overhead variance is: A.$7,000 favorable. B.$6,000 favorable. C.$1,000 unfavorable. D.$6,000 unfavorable. E.$1,000 favorable.

Q: A network consists of the activities in the following list. Times are given in weeks. Activity Preceding Time A -- 8 B -- 3 C A 7 D A, B 3 E C 4 a. Draw the network diagram. b. Calculate the ES, EF, LS, LF, and Slack for each activity. c. What is project completion time?

Q: The variable overhead spending variance, the fixed overhead spending variance, and the variable overhead efficiency variance can be combined to find the: A.Production variance. B.Quantity variance. C.Volume variance. D.Price variance. E.Controllable variance.

Q: Consider the network pictured below. a. Enumerate all paths through this network. b. Calculate the critical path for the network. c. What is the minimum duration of the project? d. How much slack exists at each activity?

Q: Regent, Inc. uses the following standard to produce a single unit of its product: overhead $6 (2 hrs. @ $3/hr.). The flexible budget for overhead is $100,000 plus $1 per direct labor hour. Actual data for the month show overhead costs of $150,000, and 24,000 units produced. The overhead volume variance is: A.$10,000 favorable. B.$12,000 favorable. C.$ 4,000 unfavorable. D.$16,000 unfavorable. E.$36,000 unfavorable.

Q: What are the advantages of using PERT and CPM?

Q: Briefly describe the concept of cost/time trade-off and how it is used.

Q: Levelor Company's flexible budget shows $10,710 of overhead at 75% of capacity, which was the operating level achieved during May. However, the company applied overhead to production during May at a rate of $2.00 per direct labor hour based on a budgeted operating level of 6,120 direct labor hours (90% of capacity). If overhead actually incurred was $11,183 during May, the controllable variance for the month was: A.$ 473 unfavorable. B.$ 473 favorable. C.$1,530 favorable. D.$1,530 unfavorable. E.$1,057 favorable.

Q: Regarding overhead costs, as volume increases: A.Total fixed cost increases, total variable cost remains constant. B.Total fixed cost remains constant, total variable cost increases. C.Total variable cost decreases, total fixed cost remains constant. D.Both total fixed cost and total variable cost increase. E.Both total fixed cost and total variable cost remain constant.

Q: Describe in words how to calculate a project's standard deviation. What assumption allows that calculation to be accurate?

Q: How is the expected completion time of a project activity, and of a PERT project, computed?

Q: What are the earliest activity start time and latest activity start time, and how are they computed?

Q: Briefly discuss what is meant by critical path analysis. What are critical path activities and why are they important?

Q: Grant Co. uses the following standard to produce a single unit of its product: Variable overhead (2 hrs. per unit @ $4/hr.) Actual data for the month show total variable overhead costs of $190,000, and 23,000 units produced. The total variable overhead variance is: A.$6,000F. B.$6,000U. C.$78,000U. D.$78,000F. E.$0.

Q: Describe the differences between a Gantt chart and a PERT/CPM network.

Q: Jefferson Co. uses the following standard to produce a single unit of its product: variable overhead $6 (2 hrs. per unit @ $3/hr.). Actual data for the month show variable overhead costs of $150,000, and 24,000 units produced. The total variable overhead variance is: A.$6,000F. B.$6,000U. C.$78,000U. D.$78,000F. E.$0.

Q: PERT calculations typically include the duration variance of each activity. What is the purpose of this calculationwhat's the role of variances in PERT analysis?

Q: A company's flexible budget for the range of 35,000 units to 45,000 units of production showed variable overhead costs of $2 per unit and fixed overhead costs of $72,000. The company incurred total overhead costs of $148,800 while operating at a volume of 40,000 units. The total controllable cost variance is: A.$ 6,800 favorable. B.6,800 unfavorable. C.$3,200 favorable. D.$3,200 unfavorable. E.$10,000 favorable.

Q: What is the basic difference between PERT and CPM?

Q: Identify, in order, the six steps basic to both PERT and CPM.

Q: Define slack.

Q: When there is a difference between the actual volume of production and the standard volume of production, which of the following, based solely on fixed overhead, occurs: A.Production variance. B.Volume variance. C.Overhead cost variance. D.Quantity variance. E.Controllable variance.

Q: Explain why the critical path is the longest, not the shortest, path through a network.

Q: The difference between actual overhead costs incurred and the budgeted overhead costs based on a flexible budget is the: A.Production variance. B.Quantity variance. C.Volume variance. D.Price variance. E.Controllable variance.

Q: What is the objective of critical path analysis?

Q: Identify and describe briefly each of the purposes of project scheduling.

Q: What are some of the ethical issues faced by project managers? Which of these are likely to occur before a project begins, which are likely to occur while the project is underway, and which may occur after a project is complete? Illustrate any one of these from recent news.

Q: Describe some of the challenges faced in the construction of the new 11-story building at ArnoldPalmerHospital in Orlando, Florida.

Q: What is a project organization?

Q: Identify the responsibilities of project managers.

Q: What are the three phases of a project? Describe each in a sentence or two.

Q: __________ is decreasing activity time in a network to reduce time on the critical path so total completion time is reduced.

Q: The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard price of $50 per pound. In manufacturing 8,000 units, 47,000 pounds of material were used at a cost of $51 per pound. What is the total direct materials cost variance? A.$48,000 unfavorable. B.$51,000 favorable. C.$51,000 unfavorable. D.$ 3,000 favorable. E.$ 3,000 unfavorable.

Q: The __________ distribution is appropriate for calculating expected activity times and activity variances in PERT networks.

Q: __________ is the amount of time an individual activity in a network can be delayed without delaying the entire project.

Q: The network analysis method that allows activity times to vary is __________.

Q: A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 5,200 pounds of Material J that cost $9,880.The direct materials price variance is: A.$520 unfavorable. B.$400 unfavorable. C.$120 favorable. D.$520 favorable. E.$400 favorable.

Q: The __________ is the computed longest time path(s) through a network.

Q: A diagram of all activities and the precedence relationships that exist between these activities in a project is a(n) __________.

Q: Summerlin Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units. What is the direct materials price variance? A.$ 400 unfavorable. B.$ 450 unfavorable. C.$2,500 unfavorable. D.$2,550 unfavorable. E.$2,950 unfavorable.

Q: __________ is a network technique using only one time factor per activity that enables managers to schedule, monitor, and control large and complex projects.

Q: The __________ has established a code of ethics especially for project managers.

Q: The following company information is available. The direct materials quantity variance is: Direct materials used for production "u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6. 36,000 gallons Standard quantity for units produced "u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6 34,400 gallons Standard cost per gallon of direct material "u00a6"u00a6"u00a6"u00a6... $6.00 Actual cost per gallon of direct material "u00a6"u00a6"u00a6"u00a6"u00a6... $6.10 A.$10,000 unfavorable. B.$13,200 unfavorable. C.$ 9,600 unfavorable. D.$10,000 favorable. E.$13,200 favorable.

Q: __________ divides a project into more and more detailed components.

Q: The following company information is available for March. The direct materials price variance is: Direct materials purchased and used "u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6 2,500 feet @ $55 per foot Standard costs for direct materials for March production 2,600 feet @ $53 per foot A.$5,000 favorable. B.$ 300 favorable. C.$5,200 unfavorable. D.$5,000 unfavorable. E.$5,200 favorable.

Q: __________ is an organization formed to ensure that programs (projects) receive the proper management and attention.

Q: Use the following data to find the direct labor rate variance if the company produced 7,000 units of product during the period. Standard: Direct labor (3.2 hrs. per unit @ $7/hr.) $22.40 per unit Actual cost incurred: Direct labor (24,500 hrs. @ $7.50/hr.) $183,750 A.$12,250 unfavorable. B.$14,700 unfavorable. C.$14,700 favorable. D.$12,250 favorable. E.$26,950 favorable.

Q: Two critical path activities are candidates for crashing on a CPM network. Activity details are in the table below. To cut one day from the projects duration, activity _________ should be crashed first, adding _________ to project cost. Activity Normal Time Normal Cost Crash Time Crash Cost B 4 days $6,000 3 days $8,000 C 6 days $4,000 4 days $6,000 A) B; $2,000 B) B; $8,000 C) C; $1,000 D) C; $2,000 E) C; $6,000

Q: Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period. Direct labor standard (4 hrs. @ $7/hr.) $28 per unit Actual hours worked 12,250 Actual rate per hour $7.50 A.$ 6,125 unfavorable. B.$ 7,000 unfavorable. C.$ 7,000 favorable. D.$12,250 favorable. E.$ 6,125 favorable.

Q: A network has been crashed to the point where all activities are critical. Additional crashing A) is unnecessary B) is impossible C) is prohibitively expensive D) may require crashing multiple tasks simultaneously E) can be done, but all critical tasks must be reduced in duration

Q: If an activity whose normal duration is 15 days can be shortened to 10 days for an added cost of $2,000, the crash cost per period is A) $400 B) $2,000 C) $10,000 D) $20,000 E) $30,000

Q: Use the following data to find the total direct labor cost variance if the company produced 3,500 units during the period. Direct labor standard (4 hrs. @ $7/hr.) $28 per unit Actual hours worked 12,250 Actual rate per hour $7.50 A.$ 6,125 unfavorable. B.$ 7,000 unfavorable. C.$ 7,000 favorable. D.$12,250 favorable. E.$ 6,125 favorable.

Q: Two critical path activities are candidates for crashing on a CPM network. Activity details are in the table below. To cut one day from the project's duration, activity __________ should be crashed first, adding __________ to project cost. Activity Normal Time Normal Cost Crash Time Crash Cost One 8 days $6,000 6 days $6,800 Two 10 days $4,000 9 days $5,000 A) One; $400 B) One; $6,800 C) Two; $1,000 D) Two; $5,000 E) One or two should be crashed; $1,400

Q: Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Bartels' standard labor cost is $12 per hour. During August, Bartels produced 10,000 units and used 21,040 hours of direct labor at a total cost of $250,376. What is Bartels' labor efficiency variance for August? A.$12,480 favorable. B.$10,376 unfavorable. C.$14,584 unfavorable. D.$4,160 favorable. E.$12,480 unfavorable.

Q: If an activity whose normal duration is 13 days can be shortened to 10 days for an added cost of $1,500, the crash cost per period is A) $500 B) $1,500 C) $750 D) $13,000 E) $15,000

Q: Which of the following statements regarding time-cost tradeoffs in CPM networks is false? A) "Project Crashing" shortens project duration by assigning more resources to critical tasks. B) Crashing sometimes has the reverse result of lengthening the project duration. C) Crashing must consider the impact of crashing an activity on all paths in the network. D) Activities not on the critical path can become critical after crashing takes place. E) All of the above are false.

Q: What was the name of the construction project to rebuild the Pentagon after the terrorist attacks on Sept. 11, 2001? A) Project Panther B) Project Pit Bull C) Project Python D) Project Piranha E) Project Phoenix

Q: Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials quantity variance is: Direct materials standard (7 kg. @ $2/kg) $14 per finished unit Actual cost of materials purchased $322,500 Actual direct materials purchased and used 150,000 kg A.$27,500 unfavorable. B.$50,000 unfavorable. C.$50,000 favorable. D.$22,500 unfavorable. E.$22,500 favorable.

Q: Which of these statements regarding time-cost tradeoffs in CPM networks is true? A) Crashing is not possible unless there are multiple critical paths. B) Crashing a project often reduces the length of long-duration, but noncritical, activities. C) Activities not on the critical path can never be on the critical path, even after crashing. D) Crashing shortens the project duration by assigning more resources to one or more of the critical tasks. E) None of the above is true.

Q: Georgia, Inc. has collected the following data on one of its products. The direct materials price variance is: Direct materials standard (4 lbs. @ $1/lb.) $4 per finished unit Total direct materials cost varianceunfavorable $13,750 Actual direct materials used 150,000 lbs. Actual finished units produced 30,000 units A.$13,750 unfavorable. B.$16,250 unfavorable. C.$16,250 favorable. D.$30,000 unfavorable. E.$33,000 favorable.

Q: Contract requirements state that a project must be completed within 180 working days, or it will incur penalties for late completion. Analysis of the activity network reveals an estimated project time of 145 working days with a project variance of 400. What is the probability that the project will be completed before the late-payment deadline? A) 0.0401 B) 0.4599 C) 0.8056 D) 0.9599 E) near 1.0000, or almost certain

Q: A project whose critical path has an estimated time of 820 days with a variance of 225 has a 20% chance that the project will be completed before day (rounded to nearest day). A) 631 B) 689 C) 807 D) 833 E) 1009

Q: A project whose critical path has an estimated time of 120 days with a variance of 100 has a 20% chance that the project will be completed before day (rounded to nearest day). A) 98 B) 112 C) 120 D) 124 E) 220

Q: Analysis of a PERT problem shows the estimated time for the critical path to be 108 days with a variance of 64. There is a .90 probability that the project will be completed before approximately day __________. A) 98 B) 108 C) 109 D) 115 E) 118

Q: A contractor's project being analyzed by PERT has an estimated time for the critical path of 120 days. The sum of all activity variances is 81; the sum of variances along the critical path is 64. The probability that the project will take 130 or more days to complete is A) 0.1057 B) 0.1335 C) 0.8512 D) 0.8943 E) 1.29

Q: A PERT project has 45 activities, 19 of which are on the critical path. The estimated time for the critical path is 120 days. The sum of all activity variances is 64, while the sum of variances along the critical path is 36. The probability that the project can be completed between days 108 and 120 is A) -2.00 B) 0.0227 C) 0.1058 D) 0.4773 E) 0.9773

Q: A project being analyzed by PERT has 38 activities, 16 of which are on the critical path. If the estimated time along the critical path is 90 days with a project variance of 25, the probability that the project will be completed in 88 days or less is A) 0.0228 B) 0.3446 C) 0.6554 D) 0.9772 E) 18

1 2 3 … 2,046 Next »

Subjects