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A Project Has Four Activities: A, B, C, and D

question 27

Multiple Choice

A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of the work performed to date is $40K. What is the BCWS for Activity B?

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Definitions:

Price of Capital

The cost of using capital goods, such as machinery or buildings, often expressed in terms of interest rates or rental rates.

Isocost Line

A line representing all combinations of a firm’s inputs that cost the same amount.

Price of Capital

The cost of using capital for production, typically represented by the interest rate or rate of return required by investors.

Total Expenditure

The aggregate amount of money spent by consumers or the government on goods and services over a specified period.

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