Use the Information in the Table (All Times Are in Days)to

question 36

Multiple Choice

Use the information in the table (all times are in days) to determine the lowest extra cost for an 18-day project if the base cost for each activity finished in normal time is $1,000. $\begin{array}{|l|l|l|l|l|} \hline&\text { Normal }&\text {Minimum}&\text { Crash Cost }\\ \text {Activity}&\text {Time}&\text {Time}&\text { (\$/day) }& \text { Predecessor }\\\hline \mathrm{A}& 10 & 6 & \$ 70 & -- \\ \hline \mathrm{B} & 6 & 3 & \$ 40 & -- \\\hline\mathrm{C} & 2 & 2 & - &\mathrm{B } \\\hline\mathrm{D} & 4 & 2 & \$ 60 &\mathrm{ C } \\\hline \mathrm{E} & 6 & 4 & \$ 80 &\mathrm{ A } \\\hline\mathrm{F} & 8 & 5 & \$ 90 & \mathrm{D},\mathrm{ E }\\\hline \end{array}$

• A)$400
• B)$420
• C)$440
• D)$460

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Definitions:

Inventory Balance

The value of all the goods available for sale or use by a business at the end of an accounting period.

Accounts Receivable

Financial obligations of customers to a business for services or goods delivered but not remunerated.

Accounts Receivable

Amounts due from clients to a business for goods or services already delivered but yet to be paid for.

Income Tax Payable

A liability account on a company's balance sheet representing the amount of income taxes owed to various governmental entities but not yet paid.