The Fundamental Difference Between PERT and CPM Is That PERT

question 89

True/False

The fundamental difference between PERT and CPM is that PERT uses the beta distribution for crashing projects while CPM uses cost estimates.

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Definitions:

DOL

Degree of Operating Leverage, a ratio that measures how a company's operating income changes with a change in sales, indicating the effects of fixed costs on profits.

Accounting Break-Even

The point at which total revenues equal total expenses, and the business does not make a profit or loss.

Depreciation

A financial approach that spreads the price of a tangible asset over the period it is expected to benefit the company.

Annual Fixed Costs

The total of all business expenses that are consistent and unchanged throughout the fiscal year, regardless of production levels or sales volume.