Samuel, a Project Manager, and Martha, His Subordinate, Are Working

question 26

Multiple Choice

Samuel, a project manager, and Martha, his subordinate, are working on a project. In the budgeting phase, Samuel is responsible for estimating the costs for Level 1 tasks and Martha is responsible for estimating the costs for Level 2 tasks. While collating the data, Samuel finds that the total estimated cost for Level 1 tasks is much lower than the total estimated cost for Level 2 tasks. Which of the following is a reason for this discrepancy?

• A) Subordinates tend to have more experience than higher management in allocating costs.
• B) Project managers are naturally pessimistic and want to build in protection for everything that might possibly go wrong.
• C) Subordinates are usually optimistic and never admit that details have been forgotten or that anything can or will go wrong.
• D) Jobs always look easier, faster, and cheaper to the project manager than to the subordinates who have to do them.
• E) Project managers and subordinates are often dishonest in their estimations.

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Definitions:

Homogeneous Oligopoly

A market structure in which a few companies sell products that are identical or very similar, leading to high levels of competition on price rather than product differentiation.

Industrial Alcohol

Alcohol used for industrial purposes, including manufacturing and as a fuel or solvent, rather than for consumption.

Interproduct Competition

Interproduct Competition refers to the competition between different products that serve similar purposes, encouraging diversity and improvement in the market.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, allowing for competition based on other factors than price.