Financial The Certified Internal Auditor Part 3 CIA-III Dumps in PDF

Free Financial CIA-III Real Questions (page: 57)

When making a cost-time trade-off in PERT analysis, the first activity that should be crashed is the activity:

  1. With the largest amount of slack.
  2. With the lowest unit crash cost.
  3. On the critical path with the maximum possible time reduction
  4. On the critical path with the lowest unit crash cost

Answer(s): D

Explanation:

When making a cost-time trade-off, the first activity to be crashed have its completion time accelerated) is one on the critical path. To select an activity on another path would not reduce the total time of completion. The initial activity chosen should be the one with the completion time that can be accelerated at the lowest possible cost per unit of time saved.



In PERT, slack is the:

  1. Uncertainty associated with time estimates.
  2. Difference between the latest starting time and earliest finishing time.
  3. Path that has the largest amount of time associated with it.
  4. Number of days an activity can be delayed without forcing a delay for the entire project.

Answer(s): D

Explanation:

PERT diagrams are free-form networks showing each activity in a large project as a line between events. The critical path is the longest path in time through the network. That path is critical in that, if any activity on the critical path takes longer than expected, the entire project will be delayed. Paths that are not critical have slack time. Slack is the number of days an activity can be delayed without forcing a delay for the entire project.



The network below describes the interrelationships of several activities necessary to complete a project. The arrows represent the activities. The numbers between the arrows indicate the number of months to complete each activity. The shortest time to complete the project is:

  1. 5 months.
  2. 6 months.
  3. 8 months.
  4. 14 months.

Answer(s): C

Explanation:

The longest, or critical, path in the network from node A) to node F) is path A- -D-F. All other paths are shorter than path A-C-D-F, so the activities along those paths can be completed before the activities along path A-C-D-F. Thus, the shortest time to complete the project is 8 months 3 + 3 +2).



A shortest-route algorithm is used in network models to:

  1. Identify bottlenecks in a network and hence identify the longest path.
  2. Minimize total travel time from one site to each of the other sites in a transportation system.
  3. Maximize throughput in networks with distinct entry source node) and exit sink node) points.
  4. Identify the set of connecting branches having the shortest combined length.

Answer(s): B

Explanation:

Network models are used to solve managerial problems pertaining to project scheduling, information systems design, and transportation systems design. Networks consisting of nodes and arcs may be created to represent in graphic form problems related to transportation, assignment, and transshipment. The shortest-route, minimal spanning tree, and maximal flow problems are other applications of network models. A shortest-route algorithm minimizes total travel time from one site to each of the other sites in a transportation system.



Which of the following project scheduling techniques is commonly used in total quality management for simplifying work processes?

  1. Gantt charts.
  2. Flowcharting.
  3. Program evaluation and review technique.
  4. Critical path method.

Answer(s): B

Explanation:

Flowcharting is commonly used in computer programming for determining program logic and in total quality management for simplifying work processes. However, they are also used for establishing the desirable sequence of activities and decisions.



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