The Standard Deviation of the Critical Path Is Equal to the Sum

question 61

True/False

The standard deviation of the critical path is equal to the sum of the standard deviations of all of the tasks on the critical path.

---

Definitions:

Common Fixed Expenses

Fixed costs not directly attributed to any specific segment of a business, benefiting the entire organization.

Absorption Costing

An accounting method that includes all manufacturing costs — direct materials, direct labor, and both variable and fixed manufacturing overhead — in the cost of a product.

Unit Product Cost

The total cost (including direct materials, direct labor, and overhead) divided by the number of units produced, representing the cost to produce a single unit.

Net Operating Income

The income generated from a company's principal operations, calculated after deducting all operational expenses but before interest and taxes.