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Option c is incorrect because the project was poorly

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Option C is incorrect because the project was poorly planned. Accordingly, the budget will beunreliable, and variance calculations will reflect this weakness.Option D is incorrect. While identifying relevant information is useful, the key to rescuing theproject is planning and resource acquisition.You can review this topic area in Module 4 of the Study guide under the sections titled:‘Project manager’‘Table 4.1: Skills required by project managers’.
64| STRATEGIC MANAGEMENT ACCOUNTINGQuestion 4.3Correct answer: DThe correct answer is Option D. The EV line is based on work actually completed in a given time.EV above budget means that more work has been accomplished than was budgeted for, so theproject is ahead of schedule. As actual costs (AC) are below EV, the project is running underbudget. The planned value (PV) line is based on estimated time (i.e. the X-axis) and is preparedbefore the project starts.Option A is incorrect because its graph would show actual cost over budget and EV belowbudget.Option B is incorrect because its graph would show actual cost under budget and EV belowbudget.Option C is incorrect because its graph would show actual cost over budget and EV over budget.You can review this topic area in Module 4 of the Study guide under the section titled:‘The earned value method: Time versus cost’.Question 4.4Correct answer: CThe correct answer is Option C. CEH is the critical path as this path takes the longest tocomplete. The total completion time for the project cannot be less than 53 days (22 + 15 + 16).Option A is incorrect because this path is only 40 days long (Activity B only).Option B is incorrect because it is a shorter path, taking 41 days (16 + 15 + 10).Option D is incorrect because it is a shorter path, taking 49 days (22 + 15 + 2 + 10).You can review this topic area in Module 4 of the Study guide under the section titled:‘PERT: Program evaluation and review technique’.
KNOWLEDGE CHECKS: MULTIPLE-CHOICE AND EXTENDED-RESPONSE QUESTIONS AND SOLUTIONS |65Question 4.5Correct answer: BThe correct answer is Option B. Managing virtual teams is particularly important in internationalprojects. It is often essential because team members are in different geographical locations,so the time and cost involved in organising face-to-face meetings is prohibitive.Options A and C are incorrect because these are needed in all projects.Option D is incorrect because a JV structure may be used for both local and international projects.You can review this topic area in Module 4 of the Study guide under the section titled:‘International project teams’.Question 4.6Correct answer: DThe correct answer is Option D.First, we add to the table the information regarding the precedence activities. We can replacethe column ‘Cost’ (data is not relevant to calculate the project duration) with a new ‘Precedence’column:ActivityDescriptionDuration (weeks)PrecedenceAPreparation of engineering plans16n.a.

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Term
Fall
Professor
loiu
Tags
strategic management accounting

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