In PERT,we Assume That

question 44

Multiple Choice

In PERT,we assume that

• A)the times to complete individual activities are known with certainty.
• B)all activities are carried out by staff from our own organization.
• C)the total cost of a project is independent of the time to complete the project.
• D)the total time to complete all activities on the critical path is described by a normal distribution.
• E)None of the above

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, calculating the per-unit cost to produce goods or services.

Variable Cost

Costs that change in proportion to the good or service that a business produces, such as raw materials and labor.

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, and insurance payments.

Losing Money

Losing money describes a situation where an individual or business expends more money than is received over a certain period, resulting in financial loss.