If an Activity Whose Normal Duration Is 13 Days Can

question 13

Multiple Choice

If an activity whose normal duration is 13 days can be shortened to 10 days for an added cost of $1,500,what is the crash cost per period?

• A)$500
• B)$1,500
• C)$750
• D)$13,000
• E)$15,000

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Definitions:

Sum-Of-The-Years-Digits

A depreciation method that accelerates the recognition of expenses by applying a decreasing fraction to the depreciable value each year, based on the sum of the years’ digits.

Office Furniture

Items and fixtures used in an office setting for working and storage purposes, including desks, chairs, and file cabinets.

Straight-Line Method

A way of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Resale Value

The projected value at which an asset can be disposed of after its life of usability has ended.