Reducing Project Duration

question 98

Multiple Choice

Reducing project duration

• A) involves crashing all activities to their crash point.
• B) can only be done when resources are not constrained.
• C) is always more expensive.
• D) tends to increase network sensitivity.
• E) should be considered for all projects.

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Definitions:

Fixed Expenses

Costs that do not vary with the level of production or sales over a short period, such as rent and salaries.

Relevant Costs

Future costs that will differ under various alternatives, considered important for making financial decisions.

Special Order

An order for goods or services that is outside the company's normal scope of operations or requires customization to meet the customer's specific requirements.

Excess Capacity

A situation where a company can produce more goods or services than currently demanded by the market, indicating underutilization of resources.