Engineering Economics Practice Final Exam Questions

1. Which is NOT one of the project performance goals?

A. Time
B. Cost
C. Communication
D. Outcomes/Quality

2. What is the most common pattern that the project life cycles follow?
Slow start, fast momentum, slow finish.

3. Why should work/job be done as a project?

It can be cheaper, faster, and better when managed as a project.

4. Which one(s) of the following is the criteria for project selection models?
A. Realism
B. Quality
C. Transportation
D. Communication

5. Which is NOT a non-numeric selection method for projects?

A. Profitability index
B. Sacred cow
C. Comparative benefits
D. Product line extension

6. Machines do not make decisions. People do. True or false?

True.

7. What are some of the disadvantages of a matrix project organization as opposed to a

functional project organization?
The team members in a matrix project organization may be assigned part-time to a
project and may have less loyalty to the project.

8. List 3 of the differences between a functional manager and a project manager.

A functional manager is an expert in a functional field, whereas a project manager may
not be an expert in area.
A functional manager has full authority over employees, whereas a project manager
may have limited authority over employees.
A functional manager knows his/her subordinates very well, whereas a project
manager may not have known them for too long.
9. Which is/are a helpful skill(s) for a project manager?
A. Team-building skills
B. Communication skills
C. Conflict resolution skills
D. All of the above

10. The project success is defined by:

A. Budget, flexibility, performance criteria, and customer satisfaction
B. Budget, schedule, performance criteria, and customer satisfaction
C. Budget, change management, communication, and customer satisfaction
D. Budget, requirements, tradeoffs, and customer satisfaction

11. What items should be listed on the Minutes of the Meeting? List three.
All attendees and absentees should be listed.
Minutes should list results of each item discussed.
Items required action should be indicated, along with who is responsible for follow-up.

12. In a meeting, everyones input should be valued. Why do you think the chair should
also try to solicit information from the quieter members?
Sometimes the quiet members could have really good ideas, but they be too timid to
speak up. It is important to encourage them.

13. Which of the following is one of the barriers to team effectiveness?

A. Excellent leadership
B. Clear definitions of rules and responsibilities
C. Lack of commitment by team members
D. Clear goals

14. What are the stages of team development? Which stage is the most productive and
effective one?
The stages are: forming, storming, norming, performing, and adjourning. The performing
stage is the most productive and efficient.

15. What management style works best with project teams?

A. Participative
B. Autocratic
C. Dictatorial
D. Persuasive

16. What are some common sources of conflict?

Some common sources of conflict are: work scope. costs. administrative procedures,
resource assignments, technical opinions, responsibilities, schedule, priorities of
resource times, personality clashes.
17. Which of the following approaches to managing group conflict is CORRECTLY
defined?
A. Accommodating: giving in to the wishes of the majority of the group
B. Avoiding: seeking to satisfy the other persons concerns at the expense of your own
C. Compromising: not raising or addressing the conflict issue
D. Competing: using whatever seems appropriate to win your own position

18. What are some skills and principles project manager can use when negotiating on
different issues?
Separate the people from the problem
Focus on interests, not positions
Before trying to reach agreement, invent options for mutual gain
Use objective criteria whenever possible

19. Is the following statement true or false? A clear project scope definition provides the
guidelines that are used to develop a project meeting.
False.

20. Draw WBS for an activity

21. Draw Activity on Arrow and Activity on Node Network Diagrams.

22. Identify critical path (2 methods: all possible paths and sum of durations, longest
path, and calculating the slack time (EST, EFT, LST, and LFT))

23. Which of the following activities is NOT one of the steps of project control?
A. Correcting
B. Evaluating
C. Developing
D. Measuring and monitoring

24. Which of the following is used as a control tool or mechanism for projects?
A. Resource allocation
B. Personal conflicts
C. Communication
D. Project wrap-up

25. Which of the following statements is true about the rules of Project Crashing?
A. Crash the most expensive critical activity first
B. Crash all activities
C. Assume each task can be crashed few days at a time
D. Crash critical activities
26. List 3 activities that are performed in a change control system.
Review suggested changes
Assess all impacts to project goals
Implement changes

27. Is the following statement True of False? Risk is a certain event or condition that
could negatively impact project performance.
False.

28. What information is NOT listed for each risk in the risk assessment stage?
A. Likelihood of risk occurring
B. Description of the risk
C. How to handle each risk
D. When the risk might occur during the project

29. What statement is correct about Time and Cost Padding?

A. It protects against most major risks
B. It is useful for reducing the severity of risks
C. It leads to shorter project duration and lower costs
D. It is very difficult to implement

30. Please indicate if the following statement is True or False about Project Audits.
Project audits are a formal means of developing a projects performance.
False.

31. When should a project be terminated? List three.

A project should be terminated when it has met its objectives/goals, as soon as it is
clear that technical or commercial failure is imminent, or if resources are needed
elsewhere.

32. Which of the following is NOT a part of the Termination Activities of a project?
A. Get delivery acceptance from customer
B. Oversee customer financial payments
C. Release resources to other users
D. Assess and analyze likelihood and impact of risks