We Assume in CPM Analysis That the Activity Times Are

question 85

True/False

We assume in CPM analysis that the activity times are independent and therefore the sum of the variances of the activities along the critical path is the variance of the expected time to complete the path.

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Definitions:

Manufacturing Margin

The difference between the cost of goods produced and the sales revenue from those goods, indicating the profitability of manufacturing activities.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and contribute to profits.

Gross Margin

The financial metric representing the difference between revenue and the cost of goods sold, divided by revenue, often expressed as a percentage. It indicates how efficiently a company is using its resources to produce goods.

Contribution Margin

Contribution margin is the revenue remaining after deducting variable costs, used to cover fixed costs and profit.