Use the Project Described in the Table to Determine the Total

question 33

Multiple Choice

Use the project described in the table to determine the total resources required for this project during week 1 if a worker is expected to devote half-time (four hours per day) to this project.Assume that the project work is conducted on a 5-day-per-week basis. $$\begin{array} { | l | l | l | } \hline \text { Activity } & \text { Duration } & \text { Predecessor } \\\hline \mathrm { A } & 5 \text { days } & - \\\hline \mathrm { B } & 4 \text { days } & \mathrm { A } \\\hline \mathrm { C } & 5 \text { days } & \text { A } \\\hline \mathrm { D } & 6 \text { days } & \mathrm { B } \\\hline \mathrm { E } & 6 \text { days } & \mathrm { C } , \mathrm { D } \\\hline \mathrm { F } & 6 \text { days } & \mathrm { E } \\\hline\end{array}$$

• A) 40 hours
• B) 20 hours
• C) 28 hours
• D) 36 hours

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Definitions:

Absorption Costing

A method of accounting in which all the costs associated with the production of a product are absorbed by that product. This includes direct costs like materials and labor, as well as fixed and variable overhead.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Net Operating Income

The income generated from normal business operations, calculated by deducting operating expenses from gross income.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.