What Is the Effect on an Operation If Its Manager

question 22

Multiple Choice

What is the effect on an operation if its manager is able to increase the number of guests served or increase the amount each guest buys?

• A) Revenue will decrease and expenses will decrease
• B) Revenue will decrease and expenses will increase
• C) Revenue will increase and expenses will decrease
• D) Revenue will increase and expenses will increase

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Definitions:

Pessimistic Time

The maximum possible time that a task or project phase is expected to take, assuming worst-case scenarios.

Optimistic Time

The shortest amount of time in which a task or project phase can realistically be completed, assuming everything proceeds better than is normally expected.

Crash Duration

The minimum time period needed to complete an activity or project phase by allocating the maximum resources.

Crash Cost

The additional costs associated with rushing or compressing a project schedule to complete it in the shortest time possible.