Use the Information in the Table (All Times Are in Days)to

question 46

Multiple Choice

Use the information in the table (all times are in days) to determine the lowest total cost for a 20-day project if the base cost for each activity finished in normal time is $1,000. $$\begin{array} { | l | l | l | l | l | } \hline & \text { Normal } & \text { Minimum } & \text { Crash Cost } & \\ \text { Activity } & \text { Time } & \text { Time } & \text { (\$/day) } & \text { Predecessor } \\\hline \text { A } & 10 & 6 & \$ 70 & - \\\hline \text { B } & 6 & 3 & \$ 40 & - \\\hline \text { C } & 2 & 2 & - & \text { B } \\\hline \text { D } & 4 & 2 & \$ 60 & \text { C } \\\hline \text { E } & 6 & 4 & \$ 80 & \text { A } \\\hline \text { F } & 8 & 5 & \$ 90 & \text { D, E } \\\hline\end{array}$$

• A) $6,280
• B) $6,390
• C) $6,530
• D) $6,740

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Definitions:

Quick Ratio

The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.

Current Ratio

A financial ratio indicating how well a company can cover its short-term debts with assets that can be quickly converted into cash within a year.

Decimal Place

The position of a number to the right of the decimal point, used to represent fractions of a whole in decimal notation.

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of reporting periods to identify trends and growth patterns.