Your Next Project Consists of 5 Consecutive 10-Day Activities,each Estimated

question 76

Multiple Choice

Your next project consists of 5 consecutive 10-day activities,each estimated by a different worker in your organization.You have all secretly added your own safety margin of 4 days into your estimates and you watch in horror as the project manager whips out his copy of Critical Chain and slams it on the table midway through their first project meeting."I'm taking your buffers and making them my own," he bellows.You recoil from this news and do some quick mental arithmetic.Now that you know the project manager is a Goldratt disciple,you know that the new project buffer will be:

• A)25 days
• B)20 days
• C)15 days
• D)10 days

---

Definitions:

Depreciation Expense

The structured spreading of the expense associated with a tangible asset across its useful life.

Double Declining-Balance Method

An accelerated depreciation method that computes an asset's depreciation at double the rate of the straight-line method over its useful life.

Straight-Line Method

A method of depreciation that allocates an equal amount of the cost of an asset over its useful life.

Depreciation Expense

The allocated amount of an asset's cost charged to expense over time, reflecting the loss in value as the asset is used in operations.