1. The reduction in project time normally results in:
[A] Increasing the direct cost and decreasing the indirect cost
[B] Decreasing the direct cost and increasing the indirect cost
[C] Increasing the direct cost and the indirect cost both
[D] Decreasing the direct cost and the indirect cost both
Answer: Option A
2. Cost slope of the direct cost curve is given by _____.
[A] (Crash Cost – Normal Cost)/(Normal Time – Crash time)
[B] (Crash Cost – Normal Cost)/Crash time
[C] (Crash Cost – Normal Cost)/Normal time
[D] (Normal Cost – Crash Cost)/(Normal time – Crash time)
Answer: Option A
3. In the time-cost optimization using CPM, the crashing of the activities along the critical path is done starting with the activity having ______.
[A] Least cost slope
[B] Highest cost slope
[C] Least time slope
[D] Highest time slope
Answer: Option A
4. Economic saving of time results by crashing ______.
[A] Cheapest critical activity
[B] Cheapest non-critical activity
[C] Costliest critical activity
[D] Costliest non-critical activity
Answer: Option A
5. The time with which direct cost does not reduce with the increase in time is known as ____.
[A] Crash time
[B] Optimistic time
[C] Normal time
[D] Standard time
Answer: Option C