Most Activity Estimations Using PERT Methods Lead to Overly Optimistic

question 75

True/False

Most activity estimations using PERT methods lead to overly optimistic activity duration estimates.

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Definitions:

Variable Inputs

Inputs in production that can be adjusted based on the production volume, including labor hours and raw materials, distinguishing them from inputs that remain constant.

Labor

The effort involving both bodily and intellectual activities applied in generating goods and services.

AVC

Average Variable Cost, the total variable cost divided by the quantity of output produced.

AFC

Average fixed cost, or the total fixed costs divided by the quantity of output produced, indicating how fixed costs per unit change with production levels.