Figure to Accompany Table 7.1

question 2

Multiple Choice

Figure to accompany Table 7.1

Table 7.1

-Using the information shown in Table 7.1, what is the slack time for activity D?

• A) 1
• B) 4
• C) 6
• D) 7

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Definitions:

Inventory

Items held by a company for sale in the ordinary course of business or to be used in the production of goods sold.

Contra-Revenue Accounts

Accounts used to record reductions in gross revenue, such as sales returns, allowances, and discounts, to arrive at net revenue.

Gross Profit

The financial metric calculated by subtracting the cost of goods sold from total sales revenue, representing the efficiency of a company in managing its production and sales.

Perpetual System

An inventory system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.