Alt Can MGT6151.E1 Winter 2020 Multiple-Choice Exercise - 2 26) In a Time and Materials contract, what is the biggest advantage a seller has? The seller's profit is included in each hour of work. The seller's profit is not known to the buyer. The contract duration is brief. The seller has an incentive to control cost. 27) Steve is the project manager for a construction project to convert an old nursing home into a new multistory office complex. The architectural design and site surveys are completed, and Steve is now waiting for the clearance and permit from the city to start the construction. This is an example of which kind of dependency? andatory dependency RACI matrix 29) Which one of the following analysis methods usually use Monte Carlo simulation to simulate the outcome of a project by making use of the three-point estimates (Optimistic, Pessimistic, Most Likely) for each activity, a huge number of simulated scheduling possibilities, or a few selected scenarios that are most likely, and the network diagram? Precedence Diagramming Method (PDM) What-if-scenario analysis Critical chain method Resource leveling buy analysis except: 30) All of the following are true about make-or-buy analysis except: It should consider all related direct costs but should not consider indirect support costs, Budget constraints may influence make-or-buy decisions. If a buy decision is made, then a further decision of whether to purchase or lease is also made. A make-or-buy analysis is a technique used to determine whether particular work can best be accomplished by the project team or should be purchased from outside sources. Available contract types are considered during the buy analysis. The risk sharing between the buyer and seller determines the suitable contract types. 31) You are a construction project manager who needs specialized heavy machinery for your next project that has a planned duration of one year. When you carry out a make-or-buy analysis, you get to know the following: the cost of buying machinery is $24,000, the resale price of the machinery is one-third of the buy price, and the rental rate of the machine $2000 per month. Which of the following is the best option for you to do? Either buy or rent; both are equally viable as the costs will be the same for one year. Unless the project can be completed in 8 months or less, the cheaper option is to buy. If the project gets delayed, it will be cheaper to rent. If the project can be completed a month early it will be less expensive to rent. 321 The nunctuated equilibrium model of team development says: I DULU Wurple-Choice Exercise - 2 33) Which of these statements about this network is BEST? Activity a Activity B Activity D Activity C Activities A and B are serial activities Activities B and C are serial activities Activities A and C are serial activities Activities D is a Merge Activity A botton-up estimate 35) In a Cost Plus Incentive Fee contract, the target cost was fixed at $500,000, the incentive fee was set at $25,000, and the buyer seller sharing ratio was set at 80/20. However, the project was completed at just $450,000, well within the target cost. What was the final price paid by the buyer? S485,000 $525,000 Target cost = $500,000 Target Fee = $25,000 Sharing ratio 8 80/20 $475,000 $495.000 36) Which of the following is not an advantage in a de-centralized contracting environment? The procurement manager has more loyalty to the project. The project manager has easier access to the procurement manager since they are part of the same team. The procurement manager has a deeper understanding of the project and its needs since he is part of the project team The procurement manager can return to the procurement department after the project is complete. 37) Which two steps of project team building are out of sequence? You always identify skills before you identify people. You always negotiate with the functional supervisor before you negotiate with top management You always negotiate with the functional supervisor before you talk to potential team members You always identify personnel before you talk to potential team members. 38) The assistant to the manager did not report to the assistant manager, only to the manager. This reporting relationship was