Liberty BUSI 680 Chap008 – Scheduling Resources and Costs

Question
Multiple Choice Questions
1. Delaying noncritical activities to lower peak demand on resources is known as resource
A. Shifting
B. Effectiveness
C. ManipulatingQuestion
Financial Statement Homework #2

Name___________________

Please circle section time: 8:00, 9:30, 12:30, 2:00, 3:30
Silver, Inc.
December 31, 2013
Unadjusted Trial balance
Cash
Accounts Receivable
Allowance for Doubtful Accounts
Short Term Note Receivable
Interest Receivable
Supplies on Hand
Prepaid Insurance
Inventory
Vehicle
Equipment
Accumulated Depreciation
Accounts Payable
Unearned Revenue
Wages Payable
Long-Term Notes Payable
Common Stock
Retained Earnings (1/1/2013)
Dividends
Sales
Sales Discounts
COGS
Delivery Expense
Depreciation Expense
Bad Debt Expense
Rent Expense
Insurance Expense
Wages Expense
Supplies Expense
Interest Revenue
Loss on Disposal
Interest Expense
Income Tax Expense
Total

45,000
14,000
500
50,000
5,000
48,000
10,000
15,000
75,000
42,000
10,000
14,000
2,000
45,000
106,000
0
3,000
501,000
10,000
50,000
50,000
16,000
54,000
25,000
195,000
16,000

4,500
35,000
720,500

720,500
Page 1 of 8

Part 1:

Prepare adjusting journal entries using the unadjusted trial

balance on the previous page and the information provided below. Use only the
account names provided on the previous page (do not create any new account
names).
1. On Dec. 31, 2013 Silver, Inc. sold merchandise on account for $18,500 with a cost of
$6,500 terms 3/10 net 30.

2. Silver, Inc. loaned Jackson Co. $50,000 (already on the TB) on Oct. 1, 2013 using a 6
month, 8% interest note. All interest and principal will be paid back at the end of the 6
months. Write the adjusting journal entry required by Silver, Inc. for its financial statements
as of Dec. 31, 2013.

3. Uncollectable Accounts Receivables of $500, $100, and $420 need to be written off for the
year ended 2013 (write off the total amount in one entry).

4. Management estimates that of the remaining accounts receivable balance, $560 will be
uncollectible. Record the adjustment based on this information. Hint: Use the AFDA
balance AFTER the above write off during 2013.

5. Equipment was retired on Dec. 31, 2013. The equipment originally cost $30,000 and has
related A/D of $24,000 as of Jan. 1, 2013. Additional depreciation of $3,000 needs to be
recorded at Dec. 31, 2013. Update the depreciation.

6. And record the retirement of the equipment (from #5) including the gain or loss.

Page 2 of 8

Part 2: Post the adjusting journal entries to t-accounts:

Page 3 of 8

Part 3: Prepare the Adjusted Trial Balance (i.e., use ending balances after
the previous journal entries are posted)
Silver, Inc.
December 31, 2013
Adjusted Trial balance
Debit
Credit

Page 4 of 8

Part 4: Prepare a Multi-step Income Statement
(Be sure to include all the necessary headings, totals and subtotals as outlined in
Chapter 5. You may not need to use all the lines provided.)
________________________
___________________________
_______________

Page 5 of 8

Prepare a Statement of Retained Earnings.
______________________________
______________________________
______________________________

Page 6 of 8

Prepare a Classified Balance Sheet (Follow the example in Chapter 2. You may not need
to use all of the lines provided.)
_____________________________
_____________________________________
_____________________________________

Page 7 of 8

Part 5: Answer the following questions using the above completed
financial statements:
What is the Gross Profit?

What is Income from Operations?

What is Income before for Income Tax?

What is Total Current Assets?

What is Total Current Liabilities?

What is Net PPE?

If the company FAILS to record depreciation expense in the adjusting entries:
What is the impact to the income statement?

What is the impact to the balance sheet?

D. Resource smoothing
E. Allocation

2. If resources are not adequate to meet peak demands, the resulting reschedule is termed
A. Resource-constrained scheduling
B. Time-constrained scheduling
C. Mandatory leveling
D. Project resource adjustment
E. Allocation

3. Which of the following is a potential consequence of failing to schedule limited resources?
A. Costly activity delays
B. Costly project delays
C. Difficulty in taking quick corrective action
D. Both A and B are correct
E. A, B, and C are all correct

4. When developing a new software package, the software must be designed, the code must be written, and the code must be tested. This is an example of a ______ constraint.
A. Physical
B. Technical
C. Resource
D. Schedule
E. Time

5. Which of the following is not one of the types of project constraints?
A. Physical
B. Technical
C. Resource
D. Time
E. All of these are types of project constraints

6. Sam the project engineer has been scheduled to run the product system test at the same time he is to build a marketing prototype. This is an example of a ______ constraint.
A. Physical
B. Technical
C. Resource
D. Scheduling
E. Time

7. Susan is to conduct environmental testing but the chamber cannot hold all the equipment that she wants to test. This is an example of a _________ constraint.
A. Physical
B. Technical
C. Resource
D. Scheduling
E. Time

8. All of the following are kinds of resource constraints except
A. Materials
B. People
C. Equipment
D. Information
E. All of the above are resource constraints

9. Sam is trying to order the concrete needed to continue his project. However, the supplier won’t be able to deliver it until next week. This is an example of a _______ constraint.
A. Working capital
B. People
C. Equipment
D. Information
E. Materials

10. A special truck that George needs on his project has been scheduled on another project. This is a ______ constraint.
A. Working capital
B. People
C. Equipment
D. Information
E. Materials

11. Most of the scheduling methods available today require the project manager to classify the project as either _______ constrained or ______ constrained.
A. Time, quality
B. Quality, resource
C. Cost, time
D. Quality, cost
E. Time, resource

12. Regina’s boss has told her that her project is very important. If the critical path is delayed, she will be given whatever she needs to get it back on schedule. Her project is ________ constrained.
A. Time
B. Quality
C. Cost
D. Performance
E. Resource

13. In reviewing the status of her project with top management, Shirley was told that there only were two programmers that she could use for her project. Her project is __________ constrained.
A. Time
B. Quality
C. Cost
D. Performance
E. Resource

14. All resource leveling techniques involve
A. Delaying noncritical activities
B. Delaying critical activities
C. Using negative slack
D. Both A and C are correct
E. A, B, and C are all correct

15. Scheduling time-constrained projects focuses on resource
A. Demands
B. Increases
C. Assumptions
D. Utilization
E. All are correct

16. The most widely used approach to apply heuristics, which have been found to consistently minimize project delay over a large variety of projects is the
A. Parallel method
B. Resource method
C. Materials
D. Both A and C are correct
E. A, B, and C are all correct

17. Resource leveling can provide
A. Lower peak demand
B. Reduced resource need over the life of the project
C. Reduced fluctuations in resource demand
D. Both A and B are correct
E. A, B, and C are all correct

18. Jan is trying to reallocate resources in a time-constrained project to create smoother resource utilization with a low level of risk. She should move to activities with the
A. Smallest duration
B. Least slack
C. Most slack
D. Lowest identification number
E. Highest cost

19. In a resource-constrained project, which of the following is most likely to be changed?
A. The completion date
B. The budget
C. Project quality
D. Both A and B are equally likely
E. A, B, and C are all equally likely

20. In a resource-constrained project, the first priority in assigning resources is usually given to activities with the
A. Smallest duration
B. Least slack
C. Most slack
D. Lowest identification number
E. Highest cost

21. In a resource-constrained project the second priority in assigning resources is usually given to activities with the
A. Smallest duration
B. Least slack
C. Most slack
D. Lowest identification number
E. Highest cost

22. The word Heuristics means
A. Resource constraints
B. Flexibility
C. The critical path changed
D. Parallel activities become sequential
E. Rule of thumb

23. Splitting an activity creates the following situation:
A. More people working on the same activity
B. There are possible startup and shutdown costs
C. A resource may be moved from one activity to another and then back
D. Both B and C are correct
E. A, B, and C are all correct

24. The U.S. Forest Service “snapshot from practice” illustrated the importance of
A. Time constraints
B. Resource constraints
C. Cost constraints
D. Both B and C are correct
E. A, B, and C are all correct

25. More common problems associated with managing multiproject resources include all of the following except
A. Inefficient resource utilization
B. Delays in one project cause delays in other projects
C. Reducing “downtime” created by lack of tasks to perform
D. Resource bottlenecks
E. All of these are common problems

26. When a company will reduce the number of projects they have to manage internally to only core projects and send noncritical projects to contractors and consulting firms this is called
A. Outsourcing
B. Redistribution of projects
C. Project allocation
D. Task sharing
E. Both B and D are correct

27. Which of the following is not one of the more common problems associated with scheduling multiproject resources?
A. Overall schedule slippage
B. Inefficient resource utilization
C. Resource bottlenecks
D. Both A and C are correct
E. A, B, and C are all correct

28. In a resource-constrained project the third priority in assigning resources is usually given to activities with the
A. Smallest duration
B. Least slack
C. Most slack
D. Lowest identification number
E. Highest cost

29. In the Botanical Garden example, which of the following was used to solve the resource problem?
A. Resource allocation
B. Smoothing resource demand
C. The parallel method
D. Both A and C are correct
E. A, B, and C are all correct

30. Project budgets are developed by time-phasing which of the following?
A. Resource schedules
B. Work packages
C. The network diagram
D. Both A and C are correct
E. A, B, and C are all correct

31. A project budget report is showing our project as spending $35,000 against a budgeted amount of $40,000. Which of the following is true?
A. We are spending less than we should for the project
B. We are doing a good job managing the project
C. We should check to see if all the bills have been paid
D. Both A and B are correct
E. We can’t be sure how the project is going

Fill in the Blank Questions
32. Delaying noncritical activities to lower peak demand and, thus, increase resource utilization is called _______ leveling.
________________________________________

33. A(n) ________ constraint addresses the sequence in which project activities must occur.
________________________________________

34. Having one person responsible for performing several activities, all due at the same time, is an example of a(n) ________ constraint.
________________________________________

35. Trying to renovate a ship compartment that is too small for more than one person is an example of a(n) ________ constraint.
________________________________________

36. A shortage of programmers to write software is an example of a(n) ________ type of resource constraint.
________________________________________

37. The shortage of computer chips to produce a circuit board is an example of a(n) ________ type of resource constraint.
________________________________________

38. If three copiers are needed to produce a final report on time and only two are available, the project is facing a(n) ________ type of resource constraint.
________________________________________

39. Hector wants to bring on another programmer to work on the project but the company does not have anyone who has the needed skills. Hector’s project is facing a(n) ________ constraint.
________________________________________

40. In order that the new product is on the shelf for the Christmas buying season, the development of the new product would be classified as a(n) ________ constrained project.
________________________________________

41. Beth has two engineers assigned to her project and cannot get any more even if it means slipping the due date on her project. She is managing a(n) ________ constrained project.
________________________________________

42. All leveling techniques delay noncritical activities by using ________ to reduce peak demand.
________________________________________

43. Scheduling activities in a constrained project typically has ________ as the top heuristic rule.
________________________________________

44. The ________ is the most widely used approach to apply heuristic rules to scheduling activities in a constrained project.
________________________________________

45. When using the ________ scheduling technique, the work in an activity is interrupted to work on another activity and is then resumed at a later point in time.
________________________________________

46. In scheduling resource-constrained projects, _________ are typically used rather than optimum mathematical solutions.
________________________________________

47. In scheduling terms, ________ constrained means that project duration is fixed and resources are flexible.
________________________________________

48. In scheduling terms, ________ constrained means that a specific resource is fixed and the duration of the project is flexible.
________________________________________

49. Start-up and shutdown costs are major considerations when using the ________________ scheduling technique.
________________________________________

50. To deal with problems related to having several concurrent projects, companies are creating ________ to oversee the scheduling of resources across multiple projects.
________________________________________

51. Many companies are using ________ from contractors and consultants as a means of dealing with the peaks and valleys of resource allocation among projects.
________________________________________

52. The ______________ is the most widely used approach to apply heuristics in resource-constrained projects.
________________________________________

53. The ability to more efficiently manage the ebbs and flows of project work is one of the major driving forces behind ____________ today.
________________________________________

54. Without a time-phased __________ good project schedule and cost control are impossible.
________________________________________

55. A project cost baseline is also called __________.
________________________________________

True / False Questions
56. The sequence of (1) pour foundation, (2) build frame, and (3) cover roof is a type of physical constraint.
True False

57. Too many parallel activities for one individual are an example of a resource constraint.
True False

58. A project that is not resource-constrained is time-constrained.
True False

59. Resource leveling is only used on projects which are resource-constrained.
True False

60. Resource Bottlenecks are one of the three more common problems encountered in managing multiproject resource schedules.
True False

61. The inability to get more than two earth movers on a construction site at the same time is an example of a physical constraint.
True False

62. The most obvious and important kind of resource constraint is a lack of materials.
True False

63. Having too few programmers and too many engineers is an example of a people resource constraint.
True False

64. If a project needs one earth-mover six months from now and the organization has four such machines, there is no equipment resource constraint.
True False

65. A lack of readily available engineers is a technical constraint.
True False

66. All projects are usually either time-constrained or resource-constrained.
True False

67. To determine if a project is time-constrained or resource-constrained you would consult the project priority matrix.
True False

68. Scheduling time-constrained projects focuses on the optimal utilization of resources.
True False

69. All leveling techniques delay noncritical activities by using positive slack to smooth out the resource requirements.
True False

70. Scheduling time-constrained projects focuses on resource utilization.
True False

71. Scheduling resource-constrained projects focuses on completing the project as soon as possible under the given constraints.
True False

72. Heuristics are used in resource-constrained projects to develop the optimal schedule.
True False

73. The top priority in using heuristics to allocate scare resources is those activities with the smallest duration.
True False

74. The critical path in a resource-constrained schedule can be a group of disjointed, unconnected activities.
True False

75. Splitting is a scheduling technique used to get a better schedule or better resource utilization.
True False

76. Without a time-phased budget good project schedule and cost control are impossible.
True False

77. Many companies are using outsourcing as a means for dealing with their resource allocation problems associated with managing multiproject resources.
True False

Short Answer Questions
78. Identify and briefly describe the three types of project constraints.

79. What is the difference in project goals when using resource leveling on time-constrained projects and using it on resource-constrained projects?

80. Identify the potential impacts of project constraints.

81. Identify and give an example of the three types of resource constraints.

82. Identify and briefly describe the two classifications of scheduling problems.

83. What are the disadvantages of resource leveling?

84. Why would a project manager use heuristics rather than a mathematical solution to level resources?

85. What are the three most common heuristics (in order of priority) used to allocate resources to project activities?

86. Describe the parallel method for applying heuristics to the allocation of project resources.

87. Why should project managers be cautious about using the splitting scheduling technique?

88. Identify and briefly discuss the three more common problems encountered in managing multiproject resource schedules.

89. Identify and briefly describe the potential impacts of resource-constrained scheduling.