If an Activity's Optimistic Time Is 3 Months,its Realistic Time

question 140

True/False

If an activity's optimistic time is 3 months,its realistic time is 5 months,and its pessimistic time is 10 months,then its estimated time would be 5.5 months.

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Definitions:

n/30

A payment term indicating that an invoice is due within 30 days after the invoice date, with no discount for early payment.

Periodic Inventory

A method of inventory valuation in which the inventory is physically counted at specific intervals, and the cost of goods sold is calculated at the end of the accounting period.

Physical Count

A procedure conducted to verify the actual quantity of items or materials present in inventory, typically performed at the end of an accounting period.

Operating Cycles

The period of time it takes for a company to purchase inventory, sell it to customers, and collect the cash from the sales.