Engineering Management - true/false questions from AMIE exams

1. The modern management information system must use computers. 
2. Management needs to know where their information comes from.
3. Authority means only the right to act.
4. Functional types of organisations were first proposed by F.W. Taylor.
5. The standard deviation of the critical path in a PERT network is not calculated by adding the standard deviations of all the critical activities. 
6. The return to scale for a production process, in which doubling the input quantities yield more than double the quantity of output, is more than one. 
7. The CPM models are valid for situations with limited resources availability.
8. Top management activities include a lot of planning and little organization and directing. 
9. Break-even analysis is a method that analyses the cost, volume and profit relationship. 
10. The concept of division of labour was proposed by F.W. Taylor.

Answers

1. True
2. True
3. False
4. True. A functional organization is one in which work is organized on the basis of specialization. Thus, expert staff personnel pass instructions directly to line personnel without taking the route of for­mal command-chain. This form of organization was devised by F.W. Taylor, the father of Scientific Management.
5. True. It is σ (Critical Path) = √([Var(1) + Var(2) + Var(3) ] where 1, 2 and 3 are activities. Var is variance.
6. True
7. False
8. True
9. True. The cost-volume-profit analysis, also commonly known as a break-even analysis. It determines the break-even point for different sales volumes and cost structures.
10. False. The French scholar Émile Durkheim first used the phrase division of labour in a sociological sense in his discussion of social evolution.

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