The Following Information Is the Basis for the Next Three

question 12

Multiple Choice

The following information is the basis for the next three questions.
Jim and Carol Spalding have a crack in their waterline and need to replace it. This will require digging up the water line, replacing it, filling the hole, leveling the soil, and re-seeding the grass. The Spalding's plumber suggests that, since they have the well dug up, they should replace the foot valve in the well also. Below are the plumber's estimates of the time in hours) necessary to perform each of the activities required.
$$\begin{array} { | c | l | c | c | c | c | } \hline \text { Activity } & \text { Description } & \text { Predeces sor } & \text { Optimistic } & \text { Most Lik ely } & \text { Pessim istic } \\\hline \text { A } & \text { Digging } & - & 2 & 3 & 4 \\\hline \text { B } & \text { Replace line } & \text { A } & 1 & 1.5 & 2 \\\hline \text { C } & \text { Replace foot valve } & \text { B } & .5 & 1 & 1.5 \\\hline \text { D } & \text { Fill hole } & \text { C } & 1.5 & 2 & 5.5 \\\hline \text { E } & \text { Level soil } & \text { D } & .5 & 1 & 1.5 \\\hline \text { F } & \text { Reseed lawn } & \text { E } & .4 & .5 & .6 \\\hline \end{array}$$

-If the plumber and his crew begin working at 7:00 a.m., what time are they expected to finish?

• A) 3:00 p.m.
• B) 3:30 p.m.
• C) 4:00 p.m.
• D) 4:30 p.m.
• E) 5:00 p.m.

Describe the benefits of budgeting for an organization.

Understand how to construct a merchandise purchases budget and its relevance in budgeting.

Prepare basic budget statements, including the income statement, cash budget, and balance sheet.

Calculate direct labor and raw materials requirements for a production budget.

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Definitions:

Compounded Quarterly

Calculating interest by adding previously earned interest to the principal amount at the end of every quarter, leading to an increase in the interest amount over periods.

Compounded Annually

Interest computed annually on the initial sum as well as on the interest accrued in past periods.

Professional Hockey

A sport involving two teams of skaters using sticks to shoot a puck into the opponent's net, played at a professional level.

Investments

Assets or items acquired with the goal of generating income or appreciation over time.