TEST ID: 504

ESE- 2020 (Prelims) - Offline Test Series Test-8

GENERAL STUDIES AND ENGINEERING APTITUDE

SUBJECT: BASICS OF PROJECT MANAGEMENT

Time Allowed: 60 Minutes Maximum Marks: 100

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 :2: General Studies & Engineering Aptitude

01. Consider the following cost elements. (a) 2 (b) 2

1. Cost of depreciation and obsolescence 1
(c) 1 (d)
2. Cost of negotiations with suppliers 2
3. Cost of insurance
4. Cost of inspection 05. Consider the following project data.

Which of the above cost elements are to be Activity Predecessor Duration(days)

included in the carrying (or) holding cost of A  7
inventory? B  5
(a) 1 and 4 only (b) 1 and 3 only C A 6
(c) 2 and 3 only (d) 1, 3 and 4 only D A 8
E B 5
02. The cost of equipment is Rs. 50000 and the F C 4
useful life period is 5 years. At the end of G D, E 3
5 years the equipment can be disposed at
Rs. 5000. The annual depreciation for the The critical path duration is ________ days.

2nd year using sum of years digit method is (a) 17 (b) 18

(a) 9000 (b) 15000 (c) 20 (d) 24

(c) 20000 (d) 12000

06. Consider a project with 8 activities and the

03. An activity will take 5 weeks to complete precedence relationship details are given the

and the allocated budget is Rs. 10000. following table.

The earned value after 3 years is found to be Activity A B C D E F G H

Rs. 5000. The schedule variance is Predeces   A A, C, A, C, E, G
(a) 1000 (b)  1000 sor B D B D, F
(c)  5000 (d) + 5000
How many dummy activities required in
04. In a basic economic order quality (EOQ) AoA diagram?
model, if annual demand is doubled and (a) 0 (b) 1
inventory carrying cost is doubled then the (c) 2 (d) 3
ratio of new EOQ and old EOQ is
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 :3: ESE - 2020 (Prelims) Offline Test Series

07. Consider the following statements w.r.t 09. In a project network, the permissible delay
charts. of a particular activity without affecting the
1. Linked bar chart can show the start of succeeding activity is known as
precedence relationship between the (a) Total float
activities. (b) Free float
2. Time scale is required to construct bar (c) Independent float
hart. (d) Interference float
3. Length of the bar chart need not be
equal to the project duration. 10. The weekly demand is 20 units, ordering
Which of the above statements are correct? cost is Rs. 200 per order, carrying cost is
(a) 1 and 2 only Rs. 2 per unit per month. The Economic
(b) 2 and 3 only order Quantity (EOQ) is
(c) 1 and 3 only (a) 131 units (b) 100 units
(d) 1, 2 and 3 (c) 1040 units (d) 231 units

08. Consider the following statements with 11. In which financial analysis the rate of discount is
respect to project scheduling tools. not pre specified?
1. No dummy activity is required in the (a) Net Present Value
construction of activity – on – Node (b) Benefit/Cost ratio
(AON) diagram. (c) Internal rate of return
2. Two different activities can be shown by (d) (Benefit – Cost) Value
connecting two events directly.
12. WBS is used in planning to
3. Event is a state of commencement or
1. Estimate duration of the project
completion of an activity.
2. Estimate cost of the project
4. In bar charts, arrow link can be used to
Select the correct answer using the codes
connect the activities.
given below.
Which of the above statement are correct?
(a) 1 only
(a) 1, 2 and 3 only
(b) 2 only
(b) 1, 3 and 4 only
(c) both 1 and 2
(c) 2, 3 and 4 only
(d) neither 1 nor 2
(d) 1, 2, 3 and 4
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 :4: General Studies & Engineering Aptitude

13. Which of the following types of 16. For a project, who are the important
organisations are not suitable for Minor stakeholders?
works ? 1. Customer
1. Functional organisation 2. Supplier
2. Project organisation 3. Investor
3. Matrix organisation 4. Competitor
Select the correct answer using the codes Select the correct answer using the codes
given below. given below.
(a) 1 and 2 only (b) 2 and 3 only (a) 1, 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3 (b) 1, 2 and 4 only
(c) 2, 3 and 4
14. In a matrix organisation who is responsible (d) 1, 3 and 4 only
for skill improvement of employees
17. A machine costs Rs 32,000 by constant rate
1. Project manager
declining Balance method of depreciation,
2. Functional manager
its salvage value after an expected life of
Select the correct answer using the codes
3 years is Rs 4,000. The rate of depreciation
given below.
is
(a) 1 only
(a) 0.25 (b) 0.30
(b) 2 only
(c) 0.40 (d) 0.50
(c) both 1 and 2
(d) neither 1 nor 2
18. For projects and major projects which of the
following types of organisations are suitable
15. Project execution plan(PEP) is the reference
1. Functional organisation
document for project manager. For quick
2. Matrix organisation
reference, its summary document is used.
3. Project organisation
It is called as
Select the correct answer using the codes
(a) Project planning
given below.
(b) Project schedule
(a) 1 and 2 only (b) 2 and 3 only
(c) Project charter
(c) 1 and 3 only (d) 1, 2 and 3
(d) None of these

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 :5: ESE - 2020 (Prelims) Offline Test Series

19. Which of the following is not purpose of 21. Which of the following are quantitative
WBS in project planning? techniques of risk analysis?
(a) To roughly estimate time and cost of 1. Decision tree analysis
project 2. Brainstorming
(b) Facilitate and improve the decision 3. Expected Monetary Value (EMV)
making on procurement of resources 4. Monte Card Simulation
(c) Relate activities under particular trade Select the correct answer using the codes
specialisations to help in organising for given below.
staff (a) 1, 2 and 3 only
(d) Coordinate regarding milestone events (b) 1, 2 and 4 only
across trade specialisations to improve (c) 2, 3 and 4 only
the synergy between the trades. (d) 1, 3 and 4 only

20. Which of the following are correct regarding 22. Which of the following techniques may help
work breakdown structure (WBS)? avoid biased decisions while rating sub-
1. WBS is a hierarchical tree structure of contractors in a project?
deliverables and tasks. (a) Letter of intent
2. WBS is a tool that quantifies the scope (b) Oral contract
of the work. (c) Weighting system
3. WBS is a checklist that ensures (d) Bidder conference
consistency and completeness of the
project. 23. Which of the following is a document which
Select the correct answer using the codes describes how the project management team
given below. will implement quality policy?
(a) 1 and 2 only (a) Quality audit
(b) 1 and 3 only (b) Quality assurance plan
(c) 2 and 3 only (c) Quality commitment
(d) 1, 2 and 3 (d) Quality management plan

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 :6: General Studies & Engineering Aptitude

24. In a project some issue arises. The project 27. To reduce the likelihood of risk which
manager tries to know more details about strategy can be implemented?
the issue. It is (a) Active risk acceptance
1. Team management approach (b) Passive risk acceptance
2. Team leadership approach (c) Risk mitigation
Which of the above statements are correct? (d) Risk avoidance
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2 28. Which of the following statements is/are
correct?
25. Which of the following is correct statement 1. Training is risk avoidance strategy
regarding Earned Value Analysis (EVA) 2. Imposing penalty is passive risk
diagram? acceptance
Cumulative cost Select the correct answer using the codes
given below.
AV PV (a) 1 only

EV (b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Weeks
Today

(a) PV cannot be assessed beyond today 29. In the termination stage what is not to be

(b) EV cannot be assessed beyond today done?

(c) AV cannot be more than PV if EV is 1. Monitoring and control

less than PV 2. Risk analysis

(d) PV cannot be more than EV if AV is Select the correct answer using the codes

more than PV given below.

(a) 1 only
26. Which of the following is a method suitable (b) 2 only
for short range forecast? (c) Both 1 and 2
(a) Wise guess (b) Market research (d) Neither 1 nor 2
(c) Product life cycle (d) Regression

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 :7: ESE - 2020 (Prelims) Offline Test Series

30. Which of the following is/are done by investment will generate cash inflows of 13
customer in functional audit during product lakhs. If the discount rate is 10%, what is the
acceptance review? project’s NPV (in lakhs)?
1. Check whether installation is done (a) 2.11 (b) –3.03
2. Check whether training (necessary) is (c) 2.32 (d) –2.76
given
34. Consider these statements with regard to
Select the correct answer using the codes
GERT (Graphical Evaluation and Review
given below.
Technique)
(a) 1 only (b) 2 only
1. It uses probabilistic approach to network
(c) Both 1 and 2 (d) Neither 1 nor 2
logic.
31. Microsoft Company produces a single 2. It uses probabilistic approach to time
article. Following cost data is given about its estimate of activities.
product: 3. It can be used for R&D projects.
Selling price per unit - Rs.40 Which of the above statements is/are
Marginal cost per unit - Rs.24 correct?
Fixed cost per annum - Rs.16000 (a) 1 only (b) 2 only
Calculate the break even sale (in rupees) (c) 1 and 2 only (d) 1, 2 and 3
(a) 40000 (b) 1000
35. Consider the following statements.
(c) 2000 (d) 10000
1. Milestone charts are modification over
32. In _______ contract amount paid to the original bar chart.
contractor is on basis of work performed at 2. Milestone represents a certain key event
site and unit price quoted against each item which marks completion of certain
of work by the contractor. portion of the activity.
(a) Lump-sum (b) Cost plus percentage 3. Relation among milestones of different
(c) Item rate (d) Percentage rate activities is indicated.
Which of the statements are true in
33. A certain investment will require an
milestone chart context?
immediate cash outflow of 30 lakhs. At the
(a) 1 and 3 only (b) 1 and 2 only
end of each of the next three years, the
(c) 2 and 3 only (d) 1, 2 and 3
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 :8: General Studies & Engineering Aptitude

36. ABC analysis divides an organization's on- 40. Project objectives are constraint by
hand inventory into three classes based upon 1. Time required for completion of the
(a) Annual demand project.
(b) Unit price of item 2. Project cost required for project
(c) Total annual item cost completion.
(d) Scarcity of item 3. Performance requirements of the
project.
37. In PERT analysis the time estimate of Which of the above statements is/are
activities correspond to correct?
(a) Normal distribution (a) 1, 2 and 3 (b) 1 and 3 only
(b) Poisson’s distribution (c) 2 and 3 only (d) 1 only
(c) -distribution
(d) Binomial distribution 41. The cross-section strip footing is shown
below:
38. In the time cost optimization, using CPM
method for network analysis, the crashing of
the activities along the critical path is done
starting with the activity having.
(a) Longest duration
(b) highest cost slope
(c) Least cost slope
(d) shortest duration Elevation (All the dimensions are in ‘mm’)

0.30 m
39. In a project life cycle, the maximum risk to
the stakeholders is in
(a) Concept phase
0.30 m 4.60 m
(b) Planning phase
(c) Commissioning phase
(d) Implementation phase 5.60 m

Plan

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 :9: ESE - 2020 (Prelims) Offline Test Series

The quantity of 150 thick PCC (1 : 3 : 6) 44. For an activity 101 – 201 in AOA network,
required for footing(in cubic meter) is activity times and duration as shown below.
(a) 2.88 cu.m. Between total float, interference float and
(b) 19.2 cu.m. independent float, which one of the
(c) 3.8 cu.m. following is the correct sequence in the
(d) 22.4 cu.m. decreasing magnitude order?

42. Consider this case of stocking of cement at a 12 37

project site:
1. Site requirement = 50 tons/month for
12 months
2. Ordering cost (Co) = Rs. 60/order
3. Inventory carrying cost (Ci)
4. Unit rate (P) = Rs. 100/ton
5. Safety stock = 40 tons
Calculate Maximum Stock level
(a) 60 tons
(c) 160 tons
101 7 201
13 41
(a) Total float – Independent float –
Interference float
(b) Interference float – Total float –
= 20% of unit rate
Independent float
(c) Total float – Interference float –
Independent float
(d) Independent float – Total float –
(b) 100 tons
Interference float
(d) 20 tons

45. A father notes that his daughter uses the

43. Pert calculations yield a project length of
telephone she takes no less than 5 minutes
90 weeks with a variance of a 9 weeks.
for a call but sometimes as much as an hour
The number of week required to complete
25 minutes calls are more frequent than calls
the project with a probability of 95%
of other duration . If the daughter’s calls
(probability factor for 95% = 1.647) is
were to be represented as an activity in
(a) 93.94 weeks
PERT project, the expected duration of each
(b) 94.94 weeks
phone calls is
(c) 95.94 weeks
(a) 27.5 minutes (b) 28.5 minutes
(d) 96.94 weeks
(c) 27 minutes (d) 30 minutes

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 : 10 : General Studies & Engineering Aptitude

46. Consider these statements with regard to (b) Both Statement (I) and Statement (II) are
Accident statistics objectives: individually true but statement (II) is not the
1. To help in evaluating the relative need correct explanation of statement (I)
for taking accident prevention measures (c) Statement (I) is true but Statement (II) is false
in different departments of an (d) Statement (I) is false but Statement (II) is true
establishment.
2. To help in making an appraisa1 of the 47. Statement (I): Multiple break-even points
progress of an accident prevention are possible in break even chart.
campaign and making people safety- Statement (II): Break even chart is one of
conscious. the sensitivity analysis techniques.
3. To provide encouragement when
methods used for the prevention of 48. Statement (I): Strength, weakness,
accidents are successful. opportunity, and threats analysis (SWOT
4. To enable comparisons to be made. analysis) is a qualitative risk analysis
Which of the above statements are correct? technique.
(a) 1, 2 and 3 only Statement (II): In qualitative assessment,
(b) 1, 2 and 4 only probability and consequence are not
(c) 2, 3 and 4 only numerically estimated, but are evaluated
(d) 1, 2, 3 and 4 using qualifiers.

Directions: Each of the next Four (4) items 49. In the context of critical path in a network,
consists of two statements, one labelled as the consider the following statements:
‘Statement (I)’ and the other as ‘Statement (II)’. Statement (I): A critical path in a network
You are to examine these two statements carefully cannot have any dummy activity.
and select the answer to these items using the Statement (II): The duration of the critical
codes given below: path in a network indicates the minimum
Codes: feasible time for completing the project.
(a) Both Statement (I) and Statement (II) are
individually true and Statement (II) is the
correct explanation of Statement (I)

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 : 11 : ESE - 2020 (Prelims) Offline Test Series

50. In the context of crashing of activities in Statement (II): An activity that has
project scheduling, consider the following maximum cost slope is considered first for
statements: crashing.
Statement (I): Critical activities are crashed
to reduce the project duration.

END OF THE PAPER

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 : 12 : General Studies & Engineering Aptitude

SPACE FOR ROUGH WORK

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