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The CPM Method Cannot Be Used When Task Durations Are

question 74

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The CPM method cannot be used when task durations are probabilistic.

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Definitions:

Direct Materials

Raw materials that are directly traceable and allocable to a finished product in the manufacturing process.

Factory Overhead

All indirect costs associated with manufacturing, including costs related to operating the factory such as utilities, maintenance, and salaries of indirect labor.

Product Costs

The costs directly associated with the production of goods, including direct material, direct labor, and manufacturing overhead expenses.

Sales and Administrative Expenses

Costs related to the selling of products and the management of the company, excluding production costs.

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