Directions : Sarp Infotech Solutions Software Company before selling a package…
2023
Directions : Sarp Infotech Solutions Software Company before selling a package to its clients, follows the given schedule.
With reference to the previous question, what is the cost incurred in the new Coding stage ? (Under new technique 4 people work in the sixth month and 5 in the eighth).
- A.
Rs. 1,40,000
- B.
Rs. 1,50,000
- C.
Rs. 1,60,000
- D.
Rs. 1,90,000
Show answer & explanation
Correct answer: A
Concept: When a schedule changes mid-project (a stage overruns or shrinks), the cost of any stage must be recomputed using headcount × per-person monthly rate for exactly the months that stage covers under the CURRENT schedule — not the months it originally covered.
Application:
From the shared schedule table, the Coding stage bills at Rs. 10,000 per person per month.
The previous question establishes that the Design stage overran into month 5, and that under the new technique the Coding stage “was completed in month 6-8 only” — so the new Coding stage spans exactly the sixth, seventh and eighth months.
This question states the new headcounts directly for two of those months: 4 people in the sixth month and 5 in the eighth.
The seventh month’s headcount is unchanged from the original employment table, where it is 5 people.
Total people-months for the new Coding stage = 4 + 5 + 5 = 14.
Total cost = 14 × Rs. 10,000 = Rs. 1,40,000.
Cross-check: The previous question’s own verified arithmetic confirms this reading: it computes the fifth month’s new (Design) cost as 5 people × Rs. 20,000 = Rs. 1,00,000 against an old (Coding) cost of 4 people × Rs. 10,000 = Rs. 40,000, a confirmed 150% increase. That calculation only works if month 5 has moved out of Coding into Design — leaving months 6-8 (4 + 5 + 5 = 14 people) as the new Coding stage, which is exactly the figure used above.