Question 1

Management perceives strong competition for the project being bid, but very much wants to be awarded the contract. As a result what action are they likely to take?

Options :

A : All of the Answers are correct

B : Direct the cost to be reduced

C : Reduce the general and administrative cost

D : Reduce the profit margin

Answer: A

Question 2

Which of the following is not a direct cost?

Options :

A : Construction trailer footing

B : Process piping

C : Plant switchgear

D : Permanent building slab

Answer: A

Question 3

Which of the following is not an example of a variable?

Options :

A : Size

B : Weight

C : Shape

D : Stamping tool

Answer: D

Question 4

An information-gathering technique that is not used in risk identification is:

Options :

A : Development of Risk Management Plans

B : Expert Opinion

C : Brainstorming

D : Questionnaire surveys

Answer: A

Question 5

A cost that represents funds already spent by virtue of past decisions is:

Options :

A : Book cost

B : Inflation

C : Opportunity cost

D : Sunk cost

Answer: D

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