PLEASE FIND ANSWERS TO FIRST SIX QUESTIONS : THE PAYBACK METHOD OF CAPITAL BUDGE

Question

PLEASE FIND ANSWERS TO FIRST SIX QUESTIONS :

THE PAYBACK METHOD OF CAPITAL BUDGETING RANKS ALTERNATIVE PROJECTS ACCORDING TO THE TIME EACH TAKES TO RECOVER THE INITIAL COST

Manufacturing costs are typically divided into three categories...

THE THREE ELEMENTS OF MANUFACTURING COSTS ARE DIRECT MATERIAL , DIRECT LABOUR AND OVERHEAD

Be it CPM or PERT, all activities must be linked to each other in terms of predecessor and successor relationship and therefore it is wrong to state that “activities have no specifiable relationship”

ACTIVITIES HAVE NO SPECIFIABLE RELATIONSHIP

IN PERT/CPM, FREE SLACK IS THE AMOUNT OF TIME A TASK MAY BE DELAYED WITHOUT AFFECTINNG ANY OTHER TASKS IN THE NETWORK

A dummy activity is a simulated activity of sorts, one that is of a zero duration and is created for the sole purpose of demonstrating a specific relationship and path of action on the arrow diagramming method. Dummy activities are a useful tool to implement when the specific logical relationship between two particular activities on the arrow diagramming method cannot specifically be linked or conceptualized through simple use of arrows going from one activity to another. In this case, the creation of a dummy activity, which serves essentially as a form of a placeholder, can provide exceedingly valuable.

A DUMMY ACTIVITY IS REQUIRED WHEN A PRECEDENCE RELATIONSHIP HAVE TO BE DETERMINED

Project completion time is same as sum of durations of all activities on critical path. Therefore , variance of total project completion time will be sum of variances of all activities on critical path.

ANSWER :b)SUM OF VARIANCES OF ALL ACTIVITIES ON CRITICAL PATH

THE PAYBACK METHOD OF CAPITAL BUDGETING RANKS ALTERNATIVE PROJECTS ACCORDING TO THE TIME EACH TAKES TO RECOVER THE INITIAL COST

Explanation / Answer

The time each takes to recover the initial cost. a. standard cost b. present worth c. break even d. payback e. capital outlay method of capital budgeting ranks alternative projects according to the The three elements of manufacturing costs are a. wages, material and overhead b. material, lubricants and labour c. labour, material and services d. direct labour, direct material and marketing e. direct labour, direct material and overhead 89 90 Which of the following is not a basic assumption of PERT? a. no activity in the network may be repeated b. each activity in the network must be performed c. activity completion times are described by Beta probability distribution d. activities have no specifiable precedence relationship e. activity times can be estimated In PERT/CPM, free slack a is the flexibility that a project has in terms of time b. the amount of time a task maybe delayed without changing the overall project completion c. is the freedom to start or end a project d. the amount of time a task may be delayed without affecting any other tasks on the network e. all of the above 91. A dummy activity is required wher a. the network contains two or more activities that have identical starting and ending events b. Two or more activities have the same starting events c. Two or more activities have the same ending events d. An activity has to be performed in place of another one e. Precedence relationships have to be determined 92. PERT analysis computes the variance of the total project completion time as a. the sum of the variances of all activities on the project b. the sum of the variances of all activities on the critical path c. the sum of the variances of all activities not on the critical path d. variance of the final activity on the project 93 e. none of the above 94.-- With the AOA convention of network diagramming, an event is a task of subprojects that must be completed is an action that is memorable in a project marks the beginning or end of a project marks the start or completion of a task a. b. c. d. e. the same as the project

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