If an Activity Whose Normal Duration Is 55 Days Can

question 50

Multiple Choice

If an activity whose normal duration is 55 days can be shortened to 50 days for an added cost of $45,000, the crash cost per period is

• A) $9,000.
• B) $500.
• C) $900.
• D) $4,500.
• E) $45,000.

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Definitions:

Performance Excellence

The achievement of outstanding performance in operations, customer satisfaction, and financial outcomes.

Peters and Waterman

Authors of "In Search of Excellence," a book that presents eight attributes that excellent companies have in common.

Value Chain

This concept describes the full range of activities that businesses go through to bring a product or service from conception to delivery to the final consumer.

Transformational Chain

The interconnected steps or processes that lead to a significant change or metamorphosis in an organization or system.