What Is the Difference Between the Critical Path and the Critical

question 18

Multiple Choice

What is the difference between the critical path and the critical chain?

• A) The critical path considers resource availability and the critical chain does not
• B) The critical chain considers resource availability and the critical path does not
• C) There is no difference - they are exactly the same
• D) It is possible to crash activities on the critical path, but activities on the critical chain have already been reduced to their shortest feasible durations.
• E) None of the above

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Definitions:

Percentage Allocation Method

A method used in accounting and finance to distribute amounts across various accounts or entities based on predetermined percentages.

Income Tax Expense

The amount of money that a company owes in taxes based on its taxable income.

Intra-entity Transactions

Transactions that occur between two divisions or entities under the same parent company, which may not impact the consolidated financial statements of the parent.

Goodwill Amortization

The systematic reduction of the recorded value of goodwill on a company's financial statements over time, although often goodwill is not amortized under current accounting standards but is instead tested annually for impairment.