What Is the Critical Path

question 25

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 path from start to finish that passes through all the tasks that are critical to completing the project in the shortest amount of time
• 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

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

Net Purchases

The total amount spent on purchases of goods for resale after subtracting any purchase returns, allowances, and discounts.

Operating Expenses

Costs associated with running a business's day-to-day operations, excluding the cost of goods sold.

Income Summary

An account in which revenues and expenses are summarized, used in the closing process to prepare the accounts for the next period.