A Project Has the Activity Duration and Cost Information Indicated

question 56

Multiple Choice

A project has the activity duration and cost information indicated in the table where all times are in weeks.There is a penalty of $250 per week for every week the project extends beyond 32 weeks.What is the cost of the least expensive project possible? $$\begin{array} { | l | l | l | l | l | l } \hline \text { Activity } & \begin{array} { l } \text { Narmal } \\\text { time }\end{array} & \begin{array} { l } \text { Crash } \\\text { time }\end{array} & \begin{array} { l } \text { Narmal } \\\text { Cust }\end{array} & \begin{array} { l } \text { Crash } \\\text { Cast }\end{array} & \text { Predecessar } \\\hline \text { A } & 8 & 5 & \$ 1, 000 & 2,000 & \\\hline B & 6 & 4 & 1,500 & 2,000 & \text { A } \\\hline \mathrm { C } & 8 & 5 & 1,800 & 2,300 & \text { A } \\\hline \mathrm { B } & 12 & 9 & 1,000 & 1,800 & \mathrm {~B} \\\hline \mathrm { E } & 14 & 11 & 950 & 1,450 & \mathrm {~B} \\\hline \mathrm { F } & 9 & 7 & 1,500 & 1,900 & \mathrm { C } , \mathrm { D } \\\hline \mathrm { G } & 7 & 5 & 2,300 & 2,800 & \mathrm { E } , \mathrm { F } \\\hline\end{array}$$

• A)$11,450
• B)$12,450
• C)$13,450.
• D)$14,450

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Definitions:

Expense Recognition Principle

An accounting concept that expenses should be recognized in the period when the revenues generated by such expenses are recognized.

Payroll Tax Expense

Payroll tax expense refers to the taxes that employers are required to pay on behalf of their employees, such as Social Security and Medicare taxes in the United States.

Estimated Warranty Costs

The projected expenses a company expects to incur for repairing or replacing products under warranty.

Warranty Contracts

Agreements that guarantee the repair or replacement of a product within a specified time period if it fails to meet outlined conditions.