MTDE 333 Midterm Exam Questions With
Complete Answers
What is the definition of a project that fails? - ANSWER A project that falls short of
delivering the agreed scope
During the development of a project, the investor/owner steps back and waits for the
manager to finish the project before they proceed to review, accept, and pay for the
project. (T/F) - ANSWER False
What two characteristics warrant classifying an activity or endeavor as a project? -
ANSWER Temporary & creates a unique product
What is the 3-legged goal of every project? - ANSWER Budget + Scope + Duration
Managing projects involves a degree of uncertainty because: - ANSWER It is difficult to
predict the project's final outcome
Applying project management techniques to a task/work is justified when... - ANSWER It
is unfamiliar and risky
What are these two forms of project-related management called?
1. One where resources are shared and parallel or sequential work efforts are
,coordinated to meet a common goal.
2. One where projects or programs (related or unrelated) are grouped to maximize profit,
ROR, or the company's strategic goals - ANSWER 1. Program + 2. Portfolio
Every human-made system begins as a project. (T/F) - ANSWER True
Project management is considered a "Systems Approach" to management because: -
ANSWER It focuses on the overall mission of the project
Organizations that develop projects are typically arranged as either: - ANSWER
Functional, Matrix, or Projectized
Which concept or principle DOES NOT apply to human-made systems?
The system is designed to do something; it has goals and objectives that people can
conceive.
The system has structure. Relationships link together the subsystems and elements.
The system combines with its environment. It has no boundaries.
The system, subsystems, and elements each have distinguishing characteristics called
attributes. - ANSWER The system combines with its environment. It has no boundaries.
A point in the life cycle of a project that requires a resolution to either proceed to the
next phase, stop the project, or modify the score, schedule, or cost is called: - ANSWER
Decision Gate
, When a client/investor reviews a proposal from an SDO, which is likely criterion the
client/investor would NOT compromise? - ANSWER The SDO's safety records
A project investment evaluation (NPV, IRR, B/C ratio, PB Period) should start as early as
the ....... phase to verify its profitability. - ANSWER Conception
A client/investor signed a contract with an engineering company. This design project was
contracted as "Cost Reimbursable" with the following conditions:
Cost Estimate: $150,000
Fee: $8,000
Target Price: $158,000
When the project was finished, the engineering company realized the actual cost
incurred was $140,000. How much is the engineering company expected to receive as
final payment? - ANSWER $148,000
The unit of measure of the payback period of an investment is: - ANSWER Duration
The capital recovery discount factor [i(1_i)^n]/[1+i)^n-1) with symbol (A/P,i,n) is used to
convert: - ANSWER A present value to an annuity
During the Definition Phase, which two aspects of the project are defined?
1) End-product
2) The Team's Approach to creating the End-product
Complete Answers
What is the definition of a project that fails? - ANSWER A project that falls short of
delivering the agreed scope
During the development of a project, the investor/owner steps back and waits for the
manager to finish the project before they proceed to review, accept, and pay for the
project. (T/F) - ANSWER False
What two characteristics warrant classifying an activity or endeavor as a project? -
ANSWER Temporary & creates a unique product
What is the 3-legged goal of every project? - ANSWER Budget + Scope + Duration
Managing projects involves a degree of uncertainty because: - ANSWER It is difficult to
predict the project's final outcome
Applying project management techniques to a task/work is justified when... - ANSWER It
is unfamiliar and risky
What are these two forms of project-related management called?
1. One where resources are shared and parallel or sequential work efforts are
,coordinated to meet a common goal.
2. One where projects or programs (related or unrelated) are grouped to maximize profit,
ROR, or the company's strategic goals - ANSWER 1. Program + 2. Portfolio
Every human-made system begins as a project. (T/F) - ANSWER True
Project management is considered a "Systems Approach" to management because: -
ANSWER It focuses on the overall mission of the project
Organizations that develop projects are typically arranged as either: - ANSWER
Functional, Matrix, or Projectized
Which concept or principle DOES NOT apply to human-made systems?
The system is designed to do something; it has goals and objectives that people can
conceive.
The system has structure. Relationships link together the subsystems and elements.
The system combines with its environment. It has no boundaries.
The system, subsystems, and elements each have distinguishing characteristics called
attributes. - ANSWER The system combines with its environment. It has no boundaries.
A point in the life cycle of a project that requires a resolution to either proceed to the
next phase, stop the project, or modify the score, schedule, or cost is called: - ANSWER
Decision Gate
, When a client/investor reviews a proposal from an SDO, which is likely criterion the
client/investor would NOT compromise? - ANSWER The SDO's safety records
A project investment evaluation (NPV, IRR, B/C ratio, PB Period) should start as early as
the ....... phase to verify its profitability. - ANSWER Conception
A client/investor signed a contract with an engineering company. This design project was
contracted as "Cost Reimbursable" with the following conditions:
Cost Estimate: $150,000
Fee: $8,000
Target Price: $158,000
When the project was finished, the engineering company realized the actual cost
incurred was $140,000. How much is the engineering company expected to receive as
final payment? - ANSWER $148,000
The unit of measure of the payback period of an investment is: - ANSWER Duration
The capital recovery discount factor [i(1_i)^n]/[1+i)^n-1) with symbol (A/P,i,n) is used to
convert: - ANSWER A present value to an annuity
During the Definition Phase, which two aspects of the project are defined?
1) End-product
2) The Team's Approach to creating the End-product
