Activities Can Be Delayed Only to the Point Where All

question 41

Multiple Choice

Activities can be delayed only to the point where all their positive slack is used up, as any further delays would cause the project to

• A) increase costs of all the activities in the project.
• B) extend beyond the project completion time.
• C) be completed ahead of schedule.
• D) increase its requirements for additional resources for all activities.

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Definitions:

Variable Costing

An accounting method that includes only variable production costs in the cost of goods sold and treats fixed overhead expenses as period costs.

Direct Materials

Raw materials directly used in the manufacturing of a product that can be directly traced to that product.

Variable Overhead

Variable overhead refers to the indirect costs of production that fluctuate with the level of output, such as utilities and materials.

Variable Costing

An accounting method that only includes variable production costs in product costs, excluding fixed costs.