A Company Must Perform a Maintenance Project Consisting of Seven

question 70

Multiple Choice

A company must perform a maintenance project consisting of seven activities.The activities,their predecessors,and their respective time estimates are presented below: $$\begin{array} { | l | l | l | l | } \hline & & \text { Immediate } & \\\hline \text { Activity } & \text { Designation } & \text { Predecessor } & \text { Time in Days } \\\hline \text { Break down both machines } & \text { A } & \text { None } & 3 \\\hline \text { Clean machine 1 } & \text { B } & \text { A } & 3 \\\hline \text { Clean machine 2 } & \text { C } & \text { A } & 3 \\\hline \text { Re-set machine 1 } & \text { D } & \text { B } & 4 \\\hline \text { Re-set machine 2 } & \text { E } & \text { C } & 2 \\\hline \text { Re-calibrate both machines } & \text { F } & \text { D and E } & 1 \\\hline \text { Final test } & \text { G } & \text { F } & 2 \\\hline\end{array}$$
Using CPM,which activities make up the critical path?

• A) A,B,D,F,G
• B) A,C,E,F,G
• C) A,C,B,F,E
• D) A,D,E
• E) None of the above

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Definitions:

Ending Inventory

Ending inventory is the value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.

Periodic Inventory System

A method used in accounting to update inventory and cost of goods sold periodically at the end of each accounting period rather than after each sale.

Weighted-Average Method

A cost flow assumption used in inventory accounting that calculates the cost of goods sold based on an average cost of inventory items.

Cost of Goods Sold

The total cost directly linked to the production of the products sold by a company, including materials and labor.