What Is the Critical Path

question 49

Multiple Choice

What is the critical path?

• A) The path from resource to task that passes through all critical components of a project plan.
• B) The path between tasks to the projects finish that passes through all critical components of a project plan.
• C) The sequence of activities that determine the earliest date by which the project can be completed.
• D) The path from start to finish that passes through all the tasks that are critical to completing the project in the longest amount of time.

---

Definitions:

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific business segment, product, or operation and would disappear if the segment was discontinued.

Common Fixed Expenses

Fixed costs that are not directly attributable to a specific product or service line and must be paid regardless of the level of production or sales.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much revenue contributes to covering fixed costs.

Variable Selling Expense

Expenses that fluctuate in direct proportion to sales volume, including commissions and freight fees.