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:

GAAP

Generally Accepted Accounting Principles; a framework of accounting standards, principles, and procedures used in the compilation of financial statements to ensure accuracy and fairness.

Interim Reporting

Financial statements prepared and published at intervals less than a fiscal year, typically quarterly or semi-annually, to provide updates on a company's performance.

Accounting Principles

The rules and guidelines that companies follow when preparing financial statements, ensuring accuracy, consistency, and transparency.

Interim Reporting

The financial reporting on a company's activities during a portion of the fiscal year, such as quarterly or semi-annual reports.