Question 1

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You are facilitating a meeting to estimate a project that you manage. Your team has
provided 100 days as the most likely duration of the project and mentioned that your
estimates can go up by 100% in the worst-case scenario, but also have a possibility to
come down by 25% in the best-case scenario. Based on the beta distribution, what is
the estimate for the duration of this project?

1. 

375 days

2.

112.5 days

3.

125 days

4.

87.5 days

 Question 2
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XYZ Company makes three products, X, Y, and Z, and is currently assigning its
$1,200,000 of manufacturing overhead based on machine hours. Product X uses 6
hours of machine time, Product Y uses 4 hours of machine time, and Product Z uses 9
hours of machine time. XYZ makes 120 units of Product X, 250 units of Product Y, and
150 units of Product Z. How much manufacturing overhead should be allocated to
Product Y? (choose the closest answer) 

1. 

$390,879
 2.

$344,863

3.

$328,417

4.

$352,761

 Question 3
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Big Bull Inc. has been in the Project Management Consulting business for the past 50
years; the incorporation bought a building for $1 million dollars in the year 1995; the
market value of that building is $4 million now. However, the organization still recorded
$1 million as assets in their financial statements. Which accounting principle / concept
stipulates this entry?

1. 

The Stable-Monetary Unit Concept

2.

The Cost Principle

3.

The Entity Concept

The Going-Concern Concept

 Question 4
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Magnitude Inc. has performed an industry benchmarking exercise and discovered that
their revenues for the past 3 years have been higher than their competitors; however,
their Net Present Margin (NPM) is one of the lowest in the industry. After an in-depth
root cause analysis, they found that the higher maintenance cost of their internal heavy
equipment is causing higher operational expenses and consequently impacting their
NPM. In a SWOT, which quadrant would they record this? 

1. 

Strengths

2.

Weakness

3.

Threats

4.

Opportunities

 Question 5
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Cott’s Inc makes two products, Legend and Sunshine, and are using an Activity-Based-
Costing approach to allocating their $1,580,000 in expected annual overhead. Cott’s
overhead can be identified with three activities: order processing ($800,000), assembly
($500,000) and testing ($380,000). These activities are driven by number of orders
processed, machine hours, and number of tests respectively.
Data relevant to these activities follow:

Legend Sunshine
Orders processed 220 350
Machine hours 100 350
Tests 80 100

What is the overhead activity rate per orders processed? 

1. 

$1,667

2.

$2,111

3.

$3,600

4.

$1,404

 Question 6
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The customer responsible for overseeing your project asks you to provide a written cost
estimate that is 30 percent higher than your estimate of the project’s cost. He explains
that the budgeting process requires managers to estimate pessimistically to ensure
enough money is allocated to projects. What is the best way to handle this?

1. 

Create one cost baseline for budget allocation and a second one for the actual project
management plan

2.

Add the 30 percent to your cost estimate by spreading it evenly across all project
activities

3.

Add the 30 percent as a lump sum contingency fund t handle project risk

4.

Ask for information on risks that would cause your estimates to be too low

 Question 7
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Which of the following estimation techniques will consume the most cost and time to perform?

1. 

Bottom-up Estimation

2.

Expert Judgement

3.
 Analogous Estimation

4.

Parametric Estimation

 Question 8
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Desks are Us makes two different types of desks, the Standard and the Ergo, and they
are now considering using an ABC approach to allocating its $610,000 of expected
annual overhead costs. Overhead would be allocated using two activities: product
design, with an estimated overhead cost of $240,000, and assembly, with a total
overhead cost of $370,000. Product design would use # of designs as its cost driver,
and assembly would use assembly hrs as its cost driver. The Standard requires 40 new
designs and 2,000 hrs of assembly time. The Ergo requires 60 new designs 3,000 hrs of
assembly time.

Using ABC, how much overhead should be allocated to the Standard desk?

1. 

$258,020

2.

$366,000

3.

$244,000

4.

$433,000

 Question 9
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Which of the following is NOT part of the Project Cost Management processes?

1. 

Decompose Activities

2.

Control Costs

3.

Plan Cost Management

4.

Estimate Costs

 Question 10
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Manufacturing Inc. has two major products in their portfolio: handbags and wallets. Both
of these products are made out of leather which costs $20 & $10 per unit respectively.
Each handbag consumes 2 hours of labor and wallets consume 1 hour of labor to
produce. If the total overhead cost is $10,000 and assigned based on the direct labor
hours, what is the unit cost of each product under traditional costing method if 150
handbags and 200 wallets are produced. Assume labor rate is $25 / hour. 

1. 

Handbag: $90 & Wallet: 45

2.

Handbag: $59 & Wallet: $29.5

Handbag: $110 & Wallet: $55

4.

Handbag: $127 & Wallet: $62

 Question 11
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Cyclepath manufactures 2 types of bicycles, the Basic and the Fancy. It takes 5 hrs to
build the Basic bicycle, and 11 hours to build the Fancy bicycle. The material cost per
unit is $95 and $120 for the Basic and Fancy respectively. Assume the labour rate is
$33/hr. In the upcoming year Cyclepath plans on making 750 units of the Basic and 250
units of the Fancy. What amount of Direct Costs does Cyclepath anticipate spending in
the upcoming year? 

1. 

$254,640

2.

$150,000

3.

$225,000

4.

$315,7500

 Question 12
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Which of the following is an example of a parametric estimate?

1. 

Learning bend

2.

Cost estimate based on a similar project done last year

3.

Cost per square meter

4.

Bottom-up

 Question 13
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“A world without poverty” is an example of a:

1. 

SWOT analysis

2.

Mission statement

3.

Vision statement
 4.

SMART objective

 Question 14
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Tofino Suppliers was recently formed. The balance sheet of each item in the business’s
accounting equation is shown below for May 21 and for each of the two following days:

Date Cash Accounts Receivable Supplies Land Accounts Payable Owner’s Equity
May 21 $ 7000 $ 11,000 $8,000 $15,000 $4,000 $17,000
May 22 14,000 4,000 1,000 8,000 4,000 22,000
May 23 6,000 4,000 1,000 16,000 4,000 22,000

Assuming that a single transaction took place on each day, describe briefly the transaction that
was most likely to have occurred on the May 23rd?

1. 

Tofino Suppliers bought a land at cost $15,000 and paid cash

2.

Tofino Suppliers bought a land at a cost $8,000 and paid cash

3.

Tofino Suppliers bought a land at a cost $7,000 and paid cash

4.

Tofino Suppliers owner invested cash of $5,000 into the business

Which of the following would contribute to increasing the owner’s equity?

1. 

Owner’s private home value appreciation

2.

Owner withdrawing funds from the business

3.

Net Income

4.

Purchase of an asset

 Question 16
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These are adaptive estimation techniques commonly used in agile projects EXCEPT:

1. 

Dot Voting 

2.

Planning Poker

3.
 Parametric Method

4.

The Bucket System

 Question 17
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Celena’s bakery, a sole proprietorship owned by Celana Smith, was started on January
01, 2017, by Melanie Palm with an investment of $90,000 cash. It has been operating
for 5 years. Over the course of this time, Smith invested $75,000 more into her
business, and withdrew a total of $25,000. The following balances are as of December
31, 2021:

Cash: $55,000

Accounts Receivable: $23,000

Equipment & Supplies: $74,000

Accounts Payable: $21,500

Owner’s equity: $147,500

What is the total net income earned by the business over the period of January 01,
2017, to December 31, 2021? 

1. 

$ 147,500

2.

$5,500
 3.

$ 40,000

4.

$ 7,500

 Question 18
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You provide a project cost estimate for the project to the project sponsor. He is unhappy
with the estimate, because he thinks the price should be lower. He asks to cut 15% off
the project estimates. What should you do?

1. 

Inform the sponsor of the activities to be cut

2.

Add additional resources with low hourly rates

3.

Tell all the team members to cut 15% from their estimates

4.

Start the project and constantly look for cost savings

 Question 19
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An aggregation of the estimated costs of individual work packages to establish an

Control Cost

2.

Estimate Costs

3.

Plan Cost Management

4.

Determine Budget

 Question 20
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Which of the following would result in a lower TATR (Total Asset Turnover Ratio) for
Smith Inc? (TATR = Sales / Average Assets)

1.

Increasing Accounts Receivables

2.

Reducing the Accounting Payable

3.

Increasing the Accounts Payable

Reducing Accounts Receivables