OM Final Exam
(True/False) The forward pass involves the calculation of LS time and LF time. - Answer-False
(True/False) PERT and CPM are different in the fact PERT is probabilistic; while CPM I deterministic. -
Answer-True
(True/False) PERT stands for Project Evaluation and Review Technique while CPM stands for Critical Path
Method. - Answer-False
(True/False) A delay in activity on the critical path does not necessarily mean a delay in the overall
project. - Answer-False
(True/False) In PERT/CPM, the critical path of a network is the longest time path through the network. -
Answer-True
(True/False) If an activity has a zero slack in PERT/CPM, it means the project will be affected by its
activity on that network path. - Answer-True
(True/False) A delay in an activity on the critical path method (CPM) does not necessarily mean a delay
in the overall project. - Answer-False
Which of the following is not true of the critical path?
a. critical path can not be changed during the life of the project
, b. critical path is always longest in a network
c. critical path demands careful monitoring and controlling
d. all of the above are correct - Answer-A
(True/False) EVPI is the difference between expected profit under perfect information (EVwPI) and the
minimum expected monetary value (EMV) - Answer-False
(True/False) In decision tree, circular nodes are used to denote a chance event (state of nature) -
Answer-True
(True/False) The per-unit contribution of a product is measured by the difference between fixed cost
and unit variable cost - Answer-False
(True/False) One of the major assumptions underlying the break-even analysis is that everything which
is produced can be sold - Answer-True
(True/False) The breakeven point is defined as the level of output at which fixed costs are equal to the
variable costs - Answer-true
In breakeven analysis which of the following is not true?
a. fixed cost = variable cost
b. total revenue = total costs
c. BEP = FC/(Price - VC)
d. (Price)(Q) = FC + VC*Q - Answer-A
(True/False) Monitoring both before and after production involves acceptance sampling procedure
rather than process control - Answer-true
(True/False) The forward pass involves the calculation of LS time and LF time. - Answer-False
(True/False) PERT and CPM are different in the fact PERT is probabilistic; while CPM I deterministic. -
Answer-True
(True/False) PERT stands for Project Evaluation and Review Technique while CPM stands for Critical Path
Method. - Answer-False
(True/False) A delay in activity on the critical path does not necessarily mean a delay in the overall
project. - Answer-False
(True/False) In PERT/CPM, the critical path of a network is the longest time path through the network. -
Answer-True
(True/False) If an activity has a zero slack in PERT/CPM, it means the project will be affected by its
activity on that network path. - Answer-True
(True/False) A delay in an activity on the critical path method (CPM) does not necessarily mean a delay
in the overall project. - Answer-False
Which of the following is not true of the critical path?
a. critical path can not be changed during the life of the project
, b. critical path is always longest in a network
c. critical path demands careful monitoring and controlling
d. all of the above are correct - Answer-A
(True/False) EVPI is the difference between expected profit under perfect information (EVwPI) and the
minimum expected monetary value (EMV) - Answer-False
(True/False) In decision tree, circular nodes are used to denote a chance event (state of nature) -
Answer-True
(True/False) The per-unit contribution of a product is measured by the difference between fixed cost
and unit variable cost - Answer-False
(True/False) One of the major assumptions underlying the break-even analysis is that everything which
is produced can be sold - Answer-True
(True/False) The breakeven point is defined as the level of output at which fixed costs are equal to the
variable costs - Answer-true
In breakeven analysis which of the following is not true?
a. fixed cost = variable cost
b. total revenue = total costs
c. BEP = FC/(Price - VC)
d. (Price)(Q) = FC + VC*Q - Answer-A
(True/False) Monitoring both before and after production involves acceptance sampling procedure
rather than process control - Answer-true
