With a More Refined Application of PERT, the Optimistic, Pessimistic

question 6

Multiple Choice

With a more refined application of PERT, the optimistic, pessimistic, and most probable times should be based on

• A) Bureau of Labor Statistics estimates.
• B) the intuition of someone new to the task.
• C) the intuition of a well-experienced worker.
• D) a frequency distribution of estimates.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain scale, such as rent, salaries, and insurance.

Variable Costs

are expenses that change in proportion to the activity of a business, such as sales volumes, including costs of goods sold and direct labor costs.

Selling Price

The actual price at which a product or service is sold to customers.

Labor Cost

The total amount of financial compensation, benefits, and taxes companies must pay for their employees' work.