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Objective Question & Answer

QUESTION

Objective Question

Q.1

A contractor agreed to build 30 temporary sheds in 90 days at Rs.

10,000 per unit. After 20 days, 8 sheds had been completed at an

actual total cost of Rs. 85,000. What is the project status?

A
The project is on time and cost overrun
B
The project time is overrun and cost under run
C

The project time is under run and cost overrun
D

The project is on time and cost under run
Answer ( Option C)

The project time is under run and cost overrun

Solution

Time for 8 sheds at the planned rate = (8/30) x 90 24 days.

They were completed in 20 days, so the project is ahead of schedule.

Expected cost = 8 × 10,000 =80,000.

Actual cost is Rs. 85,000, so cost overrun exists.

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