Application of PERT Network Analysis

question 20

Multiple Choice

Application of PERT Network Analysis
Grace has just graduated from college with a degree in business administration and is totally overwhelmed by her first job. When she was in school, she could work on projects one at a time, and now she finds that she must juggle several projects with multiple activities. Grace is amazed that her supervisor, Linda, seems to have everything planned in a neat flowchart. Linda's current project is to oversee the construction of an office building, and Grace is determined to understand all of the actions that must take place, the major activities, and potential problems so she can be proactive.
-In PERT analysis, the longest or most time- consuming sequence of events and activities required to complete a project in the shortest amount of time is referred to as

• A)critical path.
• B)activities.
• C)slack time.
• D)events.

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Definitions:

Marginal Revenue

The additional income received from selling one more unit of a product or service.

Marginal Cost

The cost added by producing one additional unit of a product or service, a concept used in economics and financial management to analyze and make decisions.

Maximize Profits

The process by which a business seeks to achieve the highest possible return from its operations, often through optimizing costs, pricing, and production strategies.

Marginal Revenue

The additional revenue that an entity receives from selling one more unit of a good or service.