Table 7.10 Four Possible Options Exist to Crash Activities: Crash a by Crash

question 138

Multiple Choice

Table 7.10

Four possible options exist to crash activities: crash A by one week at a cost of $6,000; crash C by two weeks at a cost of $15,000; crash E by one week at a cost of $2,000; and crash I one week at a cost of $7,000. What is the maximum amount of additional profit that can be made by crashing an option (or options) ?
A) less than or equal to $4,000
B) greater than $4,000 but less than or equal to $8,000
C) greater than $8,000 but less than or equal to $12,000
D) greater than $12,000
-If a project has exactly one critical path, which of the following statements is True?

• A) less than or equal to $4,000
• B) greater than $4,000 but less than or equal to $8,000
• C) greater than $8,000 but less than or equal to $12,000
• D) greater than $12,000
• -If a project has exactly one critical path, which of the following statements is True?
• A) Crashing an activity on the critical path will always result in an increase in total project profits.
• B) Activities on the critical path cannot be crashed.
• C) Crashing an activity on the critical path will always result in a reduced total project completion time.
• D) The best schedule is one in which all activities are crashed as much as possible.

---

Definitions:

T-Accounts

A visual representation of accounts in the general ledger of a company, used to understand the effects of transactions on each account.

Machine-Hours

A measure of the amount of time machines are used in the production process, often used as a basis for allocating manufacturing overhead costs.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to assign overhead costs to products based on a selected activity base.