Construction Planning and Management MCQs

2. Sinking fund is_______________?

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A. the fund for rebuilding a structure when its economic life is over
B. raised to meet maintenance costs
C. the total sum to be paid to the municipal authorities by the tenants
D. a part of the money kept in reserve for providing additional structures and structural modifications
✅ The correct answer is option A.

5. The reduction in project time normally results in_______________?

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A. decreasing the direct cost and increasing indirect cost
B. increasing the direct cost and decreasing the indirect cost
C. increasing the direct cost and indirect cost both
D. decreasing the direct cost and indirect cost both
✅ The correct answer is option B.

7. An earth moving equipment costs Rs. 5,00,000/- and has an estimated life of 10 years and a salvage value of Rs. 50,000/-.What uniform annual amount must be set aside at the end of each of the 10 years for replacement if the interest rate is 8% per annum and if the sinking fund factor at 8% per annum interest rate for 10 years is 0.069 ?

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A. Rs. 31050
B. Rs. 34500
C. Rs. 37950
D. Rs. 50000
✅ The correct answer is option A.

8. Free float is mainly used to_________________?

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A. identify the activities which can be delayed without affecting the total float of preceding activity
B. identify the activities, which can be delayed without affecting the total float of succeeding activity
C. establish priorities
D. identify the activities which can be delayed without affecting the total float of either the preceding or succeeding activities
✅ The correct answer is option B.

9. If the excavation of earth is done manually then it costs Rs. 10 per cum. A machine can excavate at a fixed cost of Rs. 4000 plus a variable cost of Rs. 2 per cum. The quantity of earth for which the cost of excavation by machine will be equal to the cost of manual excavation is_________________?

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A. 500 cum
B. 1000 cum
C. 1500 cum
D. 2000 cum
✅ The correct answer is option A.