Table J.17 A Company Must Take on Seven New Projects. Each Project

question 102

Multiple Choice

Table J.17
A company must take on seven new projects. Each project has a planning stage and a design stage, and the planning stage must be completed before the design stage can begin. Also, two project teams are available to work on these projects: Team 1 works only on planning stages of projects, and Team 2 works only on design stages of projects. The times to complete the project stage, in days, are shown in the following table.

-Using the information in Table J.17 and Johnson's rule, how much idle time does Team 2 have from the start of the first project through completion of the seventh?

• A) 2 days
• B) 3 days
• C) 4 days
• D) 5 days

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Definitions:

Generally Accepted Accounting Principles

A set of standards, principles, and procedures that guide the accounting practices and financial reporting in the U.S.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and net income.

Balance Sheet

A document detailing a business's financial status at a given moment, listing the company's resources, debts, and owner's equity.

Adjusting Entries

Adjusting entries are journal entries made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.