Which of the Following Statements Regarding CPM Networks Is True

question 61

Multiple Choice

Which of the following statements regarding CPM networks is true?

• A) There can be multiple critical paths on the same project, all with different durations.
• B) The early finish of an activity is the latest early start of all preceding activities.
• C) The late start of an activity is its late finish plus its duration.
• D) If a specific project has multiple critical paths, all of them will have the same duration.
• E) If a specific project has multiple critical paths, all of them will have negative slack.

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Definitions:

Variance Analysis

The process of investigating the difference between planned and actual numbers to understand deviations in financial performance.

Direct Materials Price Variance

The difference between the actual cost and the standard cost of materials used in production, indicating how effectively a company manages its material costs.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels of the organization.

Variable Budget

A financial plan that adjusts for changes in the volume of activity, allowing for flexible cost controls depending on actual performance.