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

CPM MCQs 👇

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