A Project Consisting of Six Activities Is Shown in the Table.If

question 69

Multiple Choice

A project consisting of six activities is shown in the table.If the project manager decides to operate on an early start schedule,which of these days has the highest resource requirements? $\begin{array}{|l|l|l|l|}\hline \text { Activity } & \text { Duration (days) } & \text { Activity Cost } & \text { Predecessor } \\\hline\mathrm{K} & 10 & 140 & \\\hline\mathrm{L} & 8 & 64 & \mathrm{K}, \mathrm{M} \\\hline \mathrm{M} & 12 & 96 & \\\hline \mathrm{N} & 6 & 120 &\mathrm{M} \\\hline \mathrm{P} & 14 & 168 & \mathrm{L} \\\hline\mathrm{Q} & 12 & 144 & \mathrm{N} \\\hline \end{array}$

• A)Day 5
• B)Day 10
• C)Day 15
• D)Day 20

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Definitions:

Differential Analysis

The process of comparing the financial differences between alternative business decisions or scenarios, focusing on costs and benefits that change between options.

Differential Cost

The difference in cost between two alternative decisions or changes in output levels.

Differential Cost

The difference in cost between two business decisions, focusing on how costs change under different alternatives.

Product Cost Method

A cost-plus method of price setting in which only the costs of manufacturing the product are included in the cost amount to which the markup is added.