Comprehension
Answer the questions based on the following information. Mulayam Software Co., before selling a package to its clients, follows the given schedule.
| Month | Stage | Cost ('000 per person) |
|---|---|---|
| 1-2 | Specification | 40 |
| 3-4 | Design | 20 |
| 5-8 | Coding | 10 |
| 9-10 | Testing | 15 |
| 11-15 | Maintenance | 10 |
The number of people employed in each month is:
| Month | 01 | 02 | 03 | 04 | 05 | 06 | 07 | 08 | 09 | 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.)
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.)
Show Hint
Work out the cost of month 5 under the original schedule (coding) and under the revised schedule (design), then find the percentage change.
Updated On: Nov 5, 2026
- 150%
- 225%
- 275%
- 240%
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The Correct Option is A
Solution and Explanation
Step 1: Cost of month 5 in the original schedule:
Months 5-8 were the coding stage at Rs. 10 thousand per person per month. In month 5, 4 people were employed. Old cost = 4 × 10 = Rs. 40 thousand.
Step 2: Cost of month 5 in the revised schedule:
Now month 5 is the last month of design (months 3, 4, 5), at Rs. 20 thousand per person per month. The number of people is 5. New cost = 5 × 20 = Rs. 100 thousand.
Step 3: Percentage change:
Change = (100 - 40) / 40 × 100 = 150%, an increase.
Final Answer:
The correct option is (1): 150%
Months 5-8 were the coding stage at Rs. 10 thousand per person per month. In month 5, 4 people were employed. Old cost = 4 × 10 = Rs. 40 thousand.
Step 2: Cost of month 5 in the revised schedule:
Now month 5 is the last month of design (months 3, 4, 5), at Rs. 20 thousand per person per month. The number of people is 5. New cost = 5 × 20 = Rs. 100 thousand.
Step 3: Percentage change:
Change = (100 - 40) / 40 × 100 = 150%, an increase.
Final Answer:
The correct option is (1): 150%
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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.)
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.)
Show Hint
The new coding stage runs only in months 6, 7 and 8 at Rs. 10 thousand per person per month. Take the number of people from the question for months 6 and 8 and from the table for month 7.
Updated On: Nov 5, 2026
- Rs. 1,50,000
- Rs. 1,40,000
- Rs. 1,60,000
- Rs. 1,70,000
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The Correct Option is B
Solution and Explanation
Step 1: Identify the months and the rate:
In the new technique coding takes months 6, 7 and 8. The cost rate for coding is Rs. 10 thousand per person per month.
Step 2: People in each month:
Month 6: 4 people (given in the question). Month 7: 5 people (from the table). Month 8: 5 people (given in the question).
Step 3: Total cost:
Person-months = 4 + 5 + 5 = 14. Cost = 14 × 10 = Rs. 140 thousand = Rs. 1,40,000.
Final Answer:
The correct option is (2): Rs. 1,40,000
In the new technique coding takes months 6, 7 and 8. The cost rate for coding is Rs. 10 thousand per person per month.
Step 2: People in each month:
Month 6: 4 people (given in the question). Month 7: 5 people (from the table). Month 8: 5 people (given in the question).
Step 3: Total cost:
Person-months = 4 + 5 + 5 = 14. Cost = 14 × 10 = Rs. 140 thousand = Rs. 1,40,000.
Final Answer:
The correct option is (2): Rs. 1,40,000
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Question: 3
What is the difference in cost between the old and the new techniques?
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: Oct 28, 2026
- 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.?
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: Oct 28, 2026
- 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?
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: Oct 28, 2026
- 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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