Development of a New Deluxe Version of a Particular Software

question 70

Essay

Development of a new deluxe version of a particular software product is being considered. The activities necessary for the completion of this are listed in the table below (Time in weeks). (a) What is the project completion date?
(b) What is the total cost required for completing this project on normal time?
(c) If you wish to reduce the time required to complete this project by one week, which activity should be crashed, and how much will this increase the total cost?

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Definitions:

Cost-Volume-Profit

An accounting technique used to determine how changes in costs and volume affect a company's operating income and net income.

Price-Setting Process

The method by which a business determines the price at which it will sell its products or services.

ROI

Return on Investment; a performance measure used to evaluate the efficiency or profitability of an investment or to compare the efficiency of several different investments.

Profit Objective

Profit objective refers to a specific goal set by a business or project concerning the amount of profit it aims to generate within a given timeframe.