Critical Chain Project Management (CCPM)was Developed to Address Several Problems

question 35

Multiple Choice

Critical Chain Project Management (CCPM) was developed to address several problems that are common in organizations that use traditional project scheduling. Which of the following describes a common problem addressed by CCPM?

• A) Many team members render overly optimistic estimates of the time it will take them to complete project activities.
• B) Many team members work solely on a single task until it is complete - impeding work on other related activities.
• C) Many team members tend to use all of the time available for an activity rather than completing it early.
• D) Many team members work best when multi-tasking

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Definitions:

Contribution Margin

The amount by which the sales of a product exceed its variable costs, representing the portion of sales revenue that contributes to covering fixed costs and generating profit.

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) to produce one unit of a product.

Absorption Costing

An accounting method that includes all manufacturing costs (direct material, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Net Operating Income

A company's total earnings from its operations, excluding taxes and interest.