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When Reducing the Planned Duration of a Project Using the Time-Cost

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When reducing the planned duration of a project using the time-cost CPM model, we select the activity to crash by determining the cost of each alternative and selecting the one whose cost is the greatest.


Definitions:

Total Variable Cost

The sum of all costs that vary with the output level in the production of goods or services.

Total Fixed Cost

The cumulative total of all costs that do not alter in response to the quantity of production or output.

Average Variable Cost

The cost of each unit variable, determined by dividing the overall variable costs by the produced output quantity.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's production increases.

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