An Activity Has a Pessimistic Time That Is Four Times

question 19

Multiple Choice

An activity has a pessimistic time that is four times as long as its most likely time and six times as long as its optimistic time.If the activity variance is 12,what is the expected time?

• A)About 8 days
• B)About 9 days
• C)About 10 days
• D)About 11 days

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Definitions:

Contribution Margin

The sum of money left over after variable costs are subtracted, which is available to pay for fixed costs and add to profit.

Incremental Manufacturing Cost

The additional cost associated with producing one more unit of a product.

Direct Materials

Raw materials that are directly traceable and a major component of a finished product.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, depreciation, and factory supplies, that are not directly traceable to a product.