University of San Carlos

School of Business and Economics

Department of Accountancy

AC 1103
3rd Long Exam

Name: __________________________ Schedule: ____________________ Course: ___________

1. Learning curves can be applied to a variety of purposes internal to a firm, including

A. a.labor forecasting
B. b.scheduling
C. c.establishing costs
D. d.establishing budgets
E. e.all of these

2. A 100% learning curve implies that

A. a.learning is taking place for all products and workers
B. b.learning is taking place at the best possible level
C. c.a 100% reduction in the direct labor time takes place each time the production is doubled
D. d.no learning is taking place
E. e.None of the above is true.

3. Which of the following is a limitation of the use of learning curves?

A. Change in personnel, design, or procedure leave the learning curve unchanged.
B. Learning curves are applicable to services as well as to manufacturing.
C. The culture of the workplace may alter the learning curve.
D. Direct labor and indirect labor follow the same learning curves.
E. Applications of learning curves are of tactical, not strategic, importance.

4. Which of the following is not a limitation of the use of learning curves?

A. a.Any change in personnel, design, or procedure can alter the learning curve.
B. b.Time measurements on early units completed must be accurate.
C. c.The culture of the workplace may alter the learning curve..
D. d.All of these are limitations of learning curves.

5. Which of the following statements about learning curves is generally TRUE?

a. Management can decide to achieve a certain rate of learning
b. A learning curve assumes that the direct labor requirements per unit will decrease at an increasing rate as
cumulative production increases
c. Learning curves can be used only for individuals =, not for the whole organization
d. Learning curves are a recognition of the concept that the time a task takes usually decreases with experience.
6. Given that the first unit of a product took 282 hours to build and the learning rate is expected to be 80 %, how
much time will it take to build the 40th unit?
a. Less than or equal to 79
b. Greater than 79 but less than or equal to 83
c. Greater than 83 but less than or equal to 87
d. Greater than 87

7. Using the logarithmic approach to learning curves, determine the time required to produce the 100th unit. The
learning rate is estimated to be 80 % and the first unit's requirement was 50 hours.
a. Less than or equal to 20 hours
b. Greater than 20 hours but less than or equal to 30 hours
c. Greater than 30 hours but less than or equal to 40 hours
d. Greater than 40 hours
8. If it takes 51.2 hours to create the 8 th unit. How many hours will it take to create the 23 rd unit, provided the learning
curve rate is 80%?
a. 18.66 hours
b. 36.44 hours
c. 26.21 hours
d. 35.42 hours
9. If it takes 37.5 hours to create the second unit and it takes 13.15 hours to create the 25 th unit, what is the learning
curve rate?
a. 75%
b. 80%
c. 85%
d. 90%
10. The learning rate for a product is 80 percent. The first unit took 100 hours to complete. The manufacturer wants to
determine how many hours the fifth unit will take by using the logarithmic method. The coefficient b for that
calculation is approximately
A. a.-.0969
B. b.-.2231
C. c.-.3219
D. d. .80  

11. In linear programming, a statement such as "maximize contribution" becomes a(n)

A. constraint
B. slack variable
C. objective function
D. violation of linearity
E. decision variable

12. Which of the following combinations of constraints has no feasible region?

A. X+Y≥ 15 and X–Y ≤10
B. X+Y≥ 5 and X≥ 10
C. X≥ 10 and Y≥ 20
D. X+Y≥ 100 and X+Y ≤50
E. All of the above have a feasible region.

13. For the two constraints given below, which point is in the feasible region of the problem?
(1) 2x + 4y ≤ 12
(2) 5x +2y ≤ 10

A. X = -1; Y = 1
B. X = 0; Y = 4
C. X = 2; Y = 1
D. X = 5; Y = 1
E. X = 2; Y = 0
14. What combination of a and b will yield the optimum for this problem? Maximize $6a + $15b, subject to (1) 4a +
2b ≤ 12 and (2) 5a + 2b ≤ 20.
A. a=0,b=0
B. a=3,b=3
C. a=0,b=6
D. a=6,b=0
15. A maximizing linear programming problem has two constraints: 2X + 4Y ≤ 100 and3X + 10Y ≤ 210, in addition to
constraints stating that both X and Y must be nonnegative. The corner points of the feasible region of this
problem are
A. (0, 0), (50, 0), (0, 21), and (20, 15)
B. (0, 0), (70, 0), (25, 0), and (15, 20)
C. (20, 15)
D. (0, 0), (0, 100), and (210, 0)
E. none of the above
16. A linear programming problem contains a restriction that reads "the quantity of X must be at least three times as
large as the quantity of Y." Which of the following inequalities is the proper formulation of this constraint?
a. 3X≥Y
b. X≤3Y
c. X+Y≥3
d. X–3Y≥0
e. 3X≤Y
17. A linear programming problem contains a restriction that reads "the quantity of Q must be no larger than the sum
of R, S, and T." Formulate this as a constraint ready for use in problem solving software.
a. Q+R+S+T≤4
b. Q≥R+S+T
c. Q–R–S–T≤0
d. Q / (R + S + T) ≤ 0
e. none of the above
18. A firm makes two products, Y and Z. Each unit of Y costs $10 and sells for $40. Each unit of Z costs $5 and sells
for $25. If the firm's goal were to maximize sales revenue, the appropriate objective function would be
a. maximize $40Y = $25Z
b. maximize $40Y + $25Z
c. maximize $30Y + $20Z
d. maximize 0.25Y + 0.20Z
e. none of the above
19. A linear programming problem has three constraints:
2X + 10Y ≤ 100
4X + 6Y ≤ 120
6X + 3Y ≤ 90
What is the largest quantity of X that can be made without violating any of these constraints?
a. 50
b. 30
c. 20
d. 15
e. 10
20. A linear programming problem has two constraints 2X + 4Y = 100 and 1X + 8Y ≤ 100, plus non- negativity
constraints on X and Y. Which of the following statements about its feasible region is true?
a. The points (100, 0) and (0, 25) both lie outside the feasible region.
b. The two corner points are (33-1/3, 8-1/3) and (50, 0).
c. The graphical origin (0, 0) is not in the feasible region.
d. The feasible region is a straight line segment, not an area.
e. All of the above are true.
21. Statement 1: Linear programming helps operations managers make decisions necessary to make effective use of
resources such as machinery, labor, money, time, and raw materials.
Statement 2: In terms of linear programming, the fact that the solution is infeasible implies that the "profit" can
increase without limit.
Statement 3: The region that satisfies all of the constraints in graphical linear programming is called the region of
optimality.
a. Only one of the statements is true
b. Only one of the statements is false
c. All of the statements are true
d. All of the statements are false
22. Statement 1: The optimal solution to a linear programming problem is within the feasible region.
Statement 2: In linear programming, if there are three constraints, each representing a resource that can be used
up, the optimal solution must use up all of each of the three resources.
Statement 3: The graphical method of solving linear programming can handle only maximizing problem
a. Only one of the statements is true
b. Only one of the statements is false
c. All of the statements are true
d. All of the statements are false
23. Which of the following represents valid constraints in linear programming?
a. 2X ≥ 7X*Y
b. 2X*7Y≥500
c. 2X+7Y≥100
2
d. 2X +7Y≥50
e. All of the above are valid linear programming constraints.
24. What combination of x and y will yield the optimum for this problem? Minimize $3x + $15y, subject to (1) 2x +
4y < 12 and (2) 5x + 2y < 10.
a. x=2,y=0
b. x=0,y=3
c. x=0,y=0
d. x=1,y=5
e. none of the above

25. With the following statements:

S1: Critical activities are those that can be delayed without delaying the entire project.
S2: PERT and CPM are applicable only when there is no dependence among activities.
a. S1 is TRUE while S2 is FALSE c. Both statements are TRUE
b. S1 is FALSE while S2 is TRUE d. Both statements are FALSE

26. With the following statements:

S1: A path through a project network must reach every node.
S2: A critical activity can be part of a noncritical path.
a. S1 is TRUE while S2 is FALSE c. Both statements are TRUE
b. S1 is FALSE while S2 is TRUE d. Both statements are FALSE

27. PERT and CPM

a. are most valuable when a small number of activities must be scheduled.
b. have different features and are not applied to the same situation.
c. do not require a chronological relationship among activities.
d. have been combined to develop a procedure that uses the best of each.

28. Which is not a significant challenge of project scheduling?

a. deadlines exist.
b. activities are independent.
c. many employees could be required.
d. delays are costly.

29. Arcs in a project network indicate

a. completion times.
b. precedence relationships.
c. activities.
d. the critical path.
30. The critical path
a. is any path that goes from the starting node to the completion node.
b. is a combination of all paths.
c. is the shortest path.
d. is the longest path.

31. The earliest start time rule

a. compares the starting times of all activities for successors of an activity.
b. compares the finish times for all immediate predecessors of an activity.
c. determines when the project can begin.
d. determines when the project must begin.

32. Activities G, P, and R are the immediate predecessors for activity W. If the earliest finish times for the three are
12, 15, and 10, then the earliest start time for W
a. is 10.
b. is 12.
c. is 15.
d. cannot be determined.
33. Which of the following is a general rule for crashing activities?
a. Crash only non-critical activities.
b. Crash activities with zero slack.
c. Crash activities with the greatest number of predecessors.
d. Crash the path with the fewest activities.

34. In PERT, the activity duration time is equal to the

a. pessimistic time.
b. optimistic time.
c. most likely time.
d. mean duration.
35. To calculate an activity’s latest finish time, you should consider its
a. predecessors’ latest finish times
b. predecessors’ latest start times
c. successors’ earliest start times
d. successors’ latest start times

PROBLEM no. 1
Given the following network with activities and times estimated in days,
 Most
Activity Optimistic Pessimistic
Probable
A   2   5   6
B   1   3   7
C   6   7 10
D   5 12 14
E   3   4   5
F   8   9 12
G   4   6   8
H   3   6   8
I   5   7 12
J 12 13 14
K   1   3   4

36. What is the critical path? C- H- J - K

37. What is the expected time to complete the Project? 29
38. What is the probability the project will take more than 28 days to complete? 0.7939

PROBLEM no. 2

A project consists of five activities. Naturally the paint mixing precedes the painting activities. Also, both ceiling
painting and floor sanding must be done prior to floor buffing.

  Optimistic Most Probable Pessimistic

Activity Time (hr) Time (hr) Time (hr)
Floor sanding 3 4 5
Floor buffing 1 2 3
Paint mixing 0.5 1 1.5
Wall painting 1 2 9
Ceiling painting 1 5.5 7

39. What is the expected completion time of this project? 8 hrs

40. What is the probability that the project can be completed with 9 hrs? 0.8264
41. How much is the expected activity time for Paint mixing activity? 1 hr
42. How much is the expected activity time for Ceiling Painting activity?5 hrs
43. How much is the variance for Wall painting activity?1.778
44. How much is the standard deviation for Floor Buffing activity? 0.3333
45. How much is the variance of the critical path? 1.5 hrs
By using the project network above, create a Gantt Chart at the back of your answer sheet. (5 pts)