What Is the Minimum Cost Completion Time for This Project

question 33

Essay

What is the minimum cost completion time for this project if the activities have normal and crash costs as indicated and there is a $1,000 fixed cost for each day on site plus a $500 penalty for each activity that is crashed? The crash costs represent the cost of a fully expedited activity.For example,reducing activity Y from 13 days to 12 days costs an extra $100 on top of the $500 expediting cost for a total cost of $2,600.Reducing Y from 13 days to 10 days costs an extra $300 on top of the $500 expediting cost,for a total activity cost of $2,800.

---

Definitions:

Automobile Tires

Rubber products specifically designed and manufactured for use on vehicles to provide traction and absorb road shock.

Process Costing

An accounting method used where identical or similar products are mass-produced, assigning average costs to each unit based on the total costs of production divided by the number of units produced.

Job Order Costing

A costing system used to accumulate costs for individual jobs or orders, typically used in industries where products are customized.

Job Cost Sheets

A document used in manufacturing to record the costs associated with a specific job or order, including materials, labor, and overhead.