The Expected Activity Time in PERT Analysis Is Calculated As

question 57

Multiple Choice

The expected activity time in PERT analysis is calculated as:

• A) the simple average of the optimistic, pessimistic, and most likely times.
• B) the weighted average of a, m, and b, with m weighted 4 times as heavily as a and b.
• C) the sum of the optimistic, pessimistic, and most likely times.
• D) the sum of the optimistic, pessimistic, and most likely times, divided by six.
• E) the sum of the activity variances, divided by six.

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Definitions:

Labour Rate Variance

The difference between the actual cost of direct labor and the expected (or budgeted) cost.

Standard Cost Card

A detailed listing of the standard amounts of inputs and their costs that are required to produce a unit of a specific product.

Standard Costing

A cost accounting method that assigns predefined costs to direct materials, labor, and overhead, used to compare against actual costs for performance analysis.

Labour Efficiency Variance

The discrepancy between the actual hours worked and the standard hours expected to produce a certain level of output.