You Have the Following Time and Cost Information Below for Use

question 64

Multiple Choice

You have the following time and cost information below for use in a Time-Cost CPM Scheduling model. $$\begin{array} { | l | l | l | l | l | } \hline \text { Activity } & \text { Normal Time } & \text { Crash Time } & \text { Normal Cost } & \text { Crash Cost } \\\hline \text { A } & 3 & 2 & \$ 400 & \$ 600 \\\hline \text { B } & 5 & 3 & \$ 600 & \$ 1200 \\\hline \text { C } & 4 & 1 & \$ 300 & \$ 1500 \\\hline\end{array}$$
What are the three costs per unit of time to expedite each activity?

• A) A=$300,B=$200,C=$300
• B) A=$100,B=$200,C=$400
• C) A=$200,B=$200,C=$200
• D) A=$100,B=$400,C=$300
• E) A=$200,B=$300,C=$400

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Definitions:

Production Volume

The quantity of products that a manufacturing system produces within a specific period of time.

Direct Labor Rate

The cost per hour for labor directly involved in producing goods or providing services, not including indirect costs like administration.

Participative Budgeting

A budgeting process where employees at all levels are involved in the decision-making process regarding the budget.

Capital Expenditures Budget

A financial plan for a company's planned investments in long-term assets and projects.