Which of the Following Statements Regarding Time-Cost Tradeoffs in CPM

question 26

Multiple Choice

Which of the following statements regarding time-cost tradeoffs in CPM networks is false?

• A)Crashing shortens project duration by assigning more resources to critical tasks.
• B)Crashing sometimes has the reverse result of lengthening the project duration.
• C)Crashing must consider the impact of crashing an activity on all paths in the network.
• D)Activities not on the critical path can become critical after crashing takes place.
• E)A negative crash cost per period would imply that either crashing is cheaper than not crashing or that the crash time was slower than the normal time.

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Definitions:

Operating Expenses

Costs associated with the day-to-day functions of a business, excluding cost of goods sold.

Machine-Hours

A measure of production time used, indicating the number of hours machines are operated in the manufacturing process.

Maintenance Costs

Expenses associated with the routine care and preservation of assets to keep them in operational condition.

Variable Operating Expense

Expenses that fluctuate in proportion to the amount of production or the volume of sales.