Which of These Statements Regarding Time-Cost Tradeoffs in CPM Networks

question 64

Multiple Choice

Which of these statements regarding time-cost tradeoffs in CPM networks is true?

• A) Crashing is not possible unless there are multiple critical paths.
• B) Crashing a project often reduces the length of long-duration, but noncritical, activities.
• C) Activities not on the critical path can never be on the critical path, even after crashing.
• D) Crashing shortens the project duration by assigning more resources to one or more of the critical tasks.
• E) None of the above are true.

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Definitions:

Indirect Method

A way of calculating cash flows in the statement of cash flows where net income is adjusted for non-cash transactions and changes in working capital.

Inventory Increase

A rise in the quantity or value of goods and materials that a company holds for the purpose of sale or production.

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments, reflected in the cash flow statement.

Bonds Payable

Long-term liabilities representing money owed by a corporation or government to bondholders, to be repaid at a future date.