The Main Difference Between CPM and PERT Is That

question 42

Multiple Choice

The main difference between CPM and PERT is that

• A)PERT is probabilistic
• B)PERT is deterministic
• C)CPM is best for longer projects
• D)CPM requires 3 duration estimates for each activity

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Definitions:

Gross profit

The financial metric indicating the difference between revenue and the cost of goods sold, reflecting the core profitability of product sales.

Perpetual inventory system

An accounting method that records the sale or purchase of inventory immediately through computerized point-of-sale systems and enterprise asset management software.

FIFO inventory cost method

An inventory valuation method where costs of the earliest goods purchased are the first to be recognized in determining cost of goods sold.

Inventory costing method

A system or technique used by companies to assign costs to inventory and goods sold; common methods include FIFO, LIFO, and average cost.