Which One of the Following Conditions Violates the Assumptions of PERT/CPM

question 70

Multiple Choice

Which one of the following conditions violates the assumptions of PERT/CPM networks?

• A) Two activities tied together by an arc are overlapping and can be worked on simultaneously.
• B) Costs increase linearly as activity time is reduced below its normal time.
• C) There can be more than one critical path in a network.
• D) Some activities can have zero variance.

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Definitions:

Net Sales

Net sales of a company, calculated by deducting returns, discounts, and allowances for damaged or missing products from its gross sales.

Unrealized Gain

Increases in the value of an asset that has not been sold, thus not yet generating actual cash income.

Available-For-Sale Securities

Securities that are held with the intent of selling them sometime in the future.

Discontinued Operations

Parts of a company's operations that have been disposed of or sold off, which are reported separately on the financial statements.