Which of the Following Is True of Critical Path

question 80

Multiple Choice

Which of the following is true of critical path?

• A) It is essential to perform what-if calculations under different projected cost and revenue conditions.
• B) It acts as the foundation for analysis using financial controls by using the firm's balance sheet and income statement.
• C) It automatically orders a fixed number of items every time an inventory level falls to a predetermined point.
• D) It represents the quickest time in which the entire project can be finished, assuming everything goes according to schedule and plans.
• E) It gives top managers, a fast, but comprehensive view of the business.

Understand the relationship between actual costs and standard costs in variances calculation.

Recognize the importance of overhead application in cost accounting.

Determine the total manufacturing cost variance and its components.

Analyze the reasons behind separating standard costs into price and quantity components.

---

Definitions:

Reliance

The act of relying or depending on something, often related to a belief or action based on certain expectations or promises.

Damages

Damages are a monetary sum awarded to a party in a lawsuit as compensation for injury or loss suffered due to the action or inaction of another.

Battery

A tortious act involving unlawful and nonconsensual contact with another person, resulting in harm or offense.

Tort of Intrusion

A legal wrong that occurs when someone intentionally intrudes upon the solitude or private affairs of another without permission, causing harm or distress.