Exhibit 15.2 The Following Questions Employ the AON Network and Completed Spreadsheet

question 48

Multiple Choice

Exhibit 15.2
The following questions employ the AON network and completed spreadsheet below.
-There are various similarities between the CPM and PERT methods. Which of the following is not one of those similarities?

• A) Any project can be broken down into component activities that require different amounts of time.
• B) Any project can be broken down into component activities that must be accomplished in a specific order.
• C) Both techniques use the same method to calculate the time element of the activities in the project.
• D) Both require a detailed network of the project that clearly indicates each of the main activities and the precedence relationship among the activities.

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Definitions:

Quantity Of Output

The total amount of goods or services produced by a company or an economy within a specific period.

Production Expenses

Costs directly associated with the manufacturing of goods or provision of services, including raw materials and labor.

Sensitivity Analysis

A technique used in finance and economics to determine how different values of an independent variable impact a particular dependent variable under a given set of assumptions.

Required Rate Of Return

The minimum percentage return that investors expect to earn from their investment in a company or project.