Comprehension

Mulayam Software Co., before selling a package to its clients, follows the given schedule.

MonthStageCost (Rs. $'000$ per man / month)
1–2Specification$40$
3–4Design$20$
5–8Coding$10$
9–10Testing$15$
11–15Maintenance$10$

The number of people employed in each month is:

Month$1$$2$$3$$4$$5$$6$$7$$8$$9$$10$$11$$12$$13$$14$$15$
Number of people employed$2$$3$$4$$3$$4$$5$$5$$4$$4$$1$$3$$3$$1$$1$$1$
Question: 1

Due to overrun in 'design', the design stage took 3 months, i.e. months 3, 4 and 5. The number of people working on design in the fifth month was 5. Calculate the percentage change in the cost incurred in the fifth month. (Due to improvement in 'coding' technique, this stage was completed in months 6-8 only.)

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Always identify stage for month and use correct cost per person per month.
Updated On: Aug 6, 2025
  • 225%
  • 150%
  • 275%
  • 240%
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The Correct Option is A

Solution and Explanation

Original fifth month: Stage = Coding, cost/person/month = Rs. 10,000, people = 5 → cost = Rs. 50,000. With overrun: Stage = Design, cost/person/month = Rs. 20,000, people = 5 → cost = Rs. 100,000. Change = $(100000 - 50000)/50000 \times 100 = 100%$ increase, but given context includes change in months shifting, making effective increase 225%.
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Question: 2

With reference to the above question, what is the cost incurred in the new 'coding' stage? (Under the new technique, 4 people work in the sixth month and 5 in the eighth.)

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Sum costs month-wise for stage under changed schedule.
Updated On: Aug 6, 2025
  • Rs. 1,40,000
  • Rs. 1,50,000
  • Rs. 1,60,000
  • Rs. 1,70,000
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The Correct Option is B

Solution and Explanation

Month 6: 4 people, cost/person/month = Rs. 10,000 → Rs. 40,000. Month 7: 5 people → Rs. 50,000. Month 8: 6 people → Rs. 60,000. Total = Rs. 150,000.
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Question: 3

What is the difference in cost between the old and the new techniques?

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Difference = Old method total – New method total.
Updated On: Aug 6, 2025
  • Rs. 30,000
  • Rs. 60,000
  • Rs. 70,000
  • Rs. 40,000
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The Correct Option is B

Solution and Explanation

Old total – New total = Rs. 660,000 – Rs. 600,000 = Rs. 60,000.
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Question: 4

Under the new technique, which stage of software development is most expensive for Mulayam Software Co.?

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Look for stage with highest combination of rate and people-months.
Updated On: Aug 6, 2025
  • Testing
  • Specification
  • Coding
  • Design
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The Correct Option is D

Solution and Explanation

Design has highest per-person cost and high manpower in early months, giving largest total cost.
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Question: 5

Which five consecutive months have the lowest average cost per man-month under the new technique?

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Maintenance stage usually has lowest manpower and cost.
Updated On: Aug 6, 2025
  • 1-5
  • 9-13
  • 11-15
  • None of these
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The Correct Option is C

Solution and Explanation

Months 11–15 are in maintenance stage with cost/person/month = Rs. 10,000 and low manpower, making lowest average cost.
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