Below Are the Data for a Time-Cost CPM Scheduling Analysis

question 86

Multiple Choice

Below are the data for a Time-Cost CPM Scheduling analysis.The time is in days and the costs include both direct and indirect costs. $\begin{array}{|l|l|l|l|l|l|}\hline & \text { Immediate } & \text { Normal } & \text { Crash } & \text { Normal } & \text { Crash } \\\hline \text { Activity } & \text { Predecessor } & \text { Time } & \text { Time } & \text { Cost } & \text { Cost } \\\hline \text { A } & \text { None } & 3 & 2 & \$ 200 & \$ 400 \\\hline \text { B } & \text { A } & 4 & 3 & \$ 300 & \$ 600 \\\hline \text { C } & \text { A } & 1 & 1 & \$ 300 & \$ 300 \\\hline \text { D } & \text { B and C } & 3 & 2 & \$ 500 & \$ 550 \\\hline \text { E } & \text { D } & 2 & 1 & \$ 500 & \$ 900 \\\hline\end{array}$
If you crash this project to reduce the total time by four days,what is the total time of the project and total cost?

• A)Total time is 10 days,total cost is $2,500
• B)Total time is 9 days,total cost is $2,300
• C)Total time is 8 days,total cost is $2,750
• D)Total time is 8 days,total cost is $1,850
• E)Total time is 9 days,total cost is $2,350

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Definitions:

Multiple-Step Income Statement

A multiple-step income statement is a detailed financial report that separates operating revenues and expenses from non-operating ones to calculate net income in several steps or segments.

Other Revenue

Revenue from sources other than the primary operating activity of a business.

FOB Shipping Point

A term used in shipping indicating that the buyer assumes responsibility for the goods and their transportation costs as soon as the goods leave the seller's location.

Freight Costs

Charges associated with the transportation of goods from one location to another, often considered part of inventory costs in accounting.