Which One of the Following Statements About Critical Path Method

question 101

Multiple Choice

Which one of the following statements about critical path method (CPM) is TRUE?

• A) Crashing an activity refers to increasing its normal time.
• B) Crashing an activity refers to decreasing its normal time possibly up to its limit.
• C) Crashing a project requires revised immediate predecessor relationships.
• D) Crashing a project is a tradeoff between revenue and costs.

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Definitions:

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal, used in determining the value of inventory on the balance sheet and for assessing asset impairment.

Write-Down

An accounting practice of reducing the book value of an asset because it's overvalued compared to the market value.

Financial Statements

Compiled reports detailing the financial position, performance, and cash flows of a business over a specific period.

Beginning Inventory

The value of inventory held by a company at the start of an accounting period, used in calculating cost of goods sold.