If a Project Is Expected to Be Completed in 68

question 67

Multiple Choice

If a project is expected to be completed in 68 days with a project variance of 21 days,what is the probability that the project will be completed within 90 days?

• A)between 5% and 10%
• B)between 15% and 20%
• C)between 25% and 30%
• D)none of these

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Definitions:

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a business.

Pretax Income

The amount of income that a company earns before any taxes are deducted.

Variable Cost

Costs that vary in direct proportion to changes in the level of production or sales activity.

Fixed Costs

Costs that do not fluctuate with the level of production or sales activity, such as rent, salaries, and insurance premiums, remaining constant regardless of business volume.