All Five Members of a Project Team Add 10% to Their

question 101

Multiple Choice

All five members of a project team add 10% to their individual serial activities as a safety margin and submit their time estimates to the project manager.The manager adds the activity length estimates together and adds 10% for his personal safety margin.Then,anticipating a cut by top management,he adds another 20% to his final project estimate.Much to his surprise,top management cuts only 10% off his time estimate.How much of a cushion is now built into the project?

• A)25%
• B)31%
• C)56%
• D)88%

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Definitions:

Plant Asset

Long-lived tangible assets used in the production and distribution of goods and services, such as machinery and equipment.

Systematic

Methodical in procedure or plan; carried out using step-by-step methods leading to predictable outcomes.

Service Life

The estimated period over which a fixed asset is expected to be usable by the entity, impacting its depreciation calculation.

Fair Value

The price at which an asset would be bought or sold in a fair transaction between willing parties.