RITIKA (MBA-BUSINESS ANALYTICS) ‘2K19/BMBA/13’

PROJECT MANAGEMENT SURPRISE TEST 2

Questions: Will Gort's approach work? How much more of a gamble is Gort
taking than any project manager no takes? What should Gort watch out for?
Ans: It is apparent that the approach of Gort will work since it will keep this project on track, a factor that
will see it become a success. The approach of Gort of using the critical path method, in fact, helps him in
identifying project tasks which must be finished on time (Malcolm, Roseboom, Clark & Fazar (2015).
Therefore, he will be able to know the tasks that need to be completed in order for the wholeIt is apparent that
the approach of Gort will work since it will keep this project on track, a factor that will see it become a
success. The approach of Gort of using the critical path method, in fact, helps him in identifying project tasks
which must be finished on time (Malcolm, Roseboom, Clark & Fazar (2015). Therefore, he will be able to
know the tasks that needs to be completed in order for the whole project

Questions: If you were the project manager, which method would you use,
and why?
Ans : Absorption costing to analyze product costs and subsequent cost-volume-profit decisions
As per your requirement please find the explanation below:
Absorption costing is a process by which we add part of the fixed overhead to the production
expense of the goods. If we do on a per-unit basis. Here we will compute by dividing the fixed
costs by the number of units that we built and sold over the era. Whereas Variable costing
includes fixed overhead as a lump sum instead of a per-unit price.
Under this process, all your variable costs like equipment, raw materials, and shipping are
included. We will add the maximum fixed overhead costs for the duration. Such costs are not
calculated on a per-unit basis. Rather than we deduct them as a lump-sum expense from your
income amount.
Variable costing is really useful as it reveals the earnings after all the expenses are paid for the
accounting period. While you would not have earned revenue for the goods we purchased as
some may be in the inventory, we are showing you have paid all of your expenses for the time.
We have excess revenue when you actually sell the finished goods in the warehouse.
The absorption approach is not all that effective as absorption costing will inflate the income
figures excessively in any given span of accounting. Since you're not going to subtract any of
your fixed costs as we did not sell any of us produced goods, our profit and loss report doesn't
reflect the maximum expenses you've had for the time. Therefore, these results may mislead us
when our profitability is analyzed.