Despite the Insights That PERT Provides,there Are Still Practical Limitations

question 25

Multiple Choice

Despite the insights that PERT provides,there are still practical limitations that impact its usefulness.All of the following difficulties are associated with the use of PERT EXCEPT: 

• A) It often requires more effort to generate three estimates than one. 
• B) It highlights uncertainty in project duration 
• C) It does not accurately address the case when two activities both need to be accomplished before a third can begin. 
• D) There is no assurance that three estimates are any more accurate than one

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Definitions:

Intra-Entity Transfers

Transactions of assets, services, or funds within the same legal entity.

Accrual-Based Net Income

Net income calculated using the accrual method of accounting, which records revenue when earned and expenses when incurred, regardless of cash flow.

Upstream Intra-Entity Profits

Profits earned from transactions between a parent company and its subsidiary, where the subsidiary sells goods or services to the parent.

Excess Amortization Expense

An amount of amortization expense that exceeds the norm, potentially indicating an aggressive approach to reducing taxable income through depreciation.