Which of the Following Is True About Hammock Activities

question 113

Multiple Choice

Which of the following is true about hammock activities?

• A) They are used to identify the use of fixed resources or costs over a segment of a project.
• B) They are a combination of Start to Start and Start to Finish lags.
• C) They are activities in which the costs are not subject to change.
• D) They are an alternative description for the critical path.
• E) They are highly sensitive.

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Definitions:

Traditional Income Statement

An income statement format that separates costs into categories of cost of goods sold and operating expenses to calculate net income.

Mixed Costs

Costs that have both a fixed and variable component, changing with the level of output but not directly proportional to it.

CVP Analysis

Cost-Volume-Profit Analysis is a technique in managerial accounting that examines the impact of cost and volume changes on a company’s operating and net income.

Cost-volume-profit

An analysis to determine how changes in costs and volume affect a company's operating income and net income.