When We Consider Crashing a Project,we Need to Be Aware

question 86

Multiple Choice

When we consider crashing a project,we need to be aware that ______.

• A)as we crash each activity the overall project budget decreases
• B)there may be little to be gained by crashing all activities
• C)both A and B
• D)neither A nor B

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Definitions:

Fixed Monthly Expenses

Costs that do not vary in total within a reasonably short time frame, such as rent, salaries, and insurance premiums, paid on a monthly basis.

Net Operating Income

A measure of a company's profitability, calculated by subtracting operating expenses from operating income.

Contribution Format

A type of income statement format that separates variable costs from fixed costs to highlight the contribution margin.

Break-even Point

The financial point at which total revenue exactly matches total costs; neither profit nor loss is realized.