Two Critical Path Activities Are Candidates for Crashing on a CPM

question 38

Multiple Choice

Two critical path activities are candidates for crashing on a CPM network.Activity details are in the table below.To cut one day from the project's duration,activity ________ should be crashed first,adding ________ to project cost.

• A)B;$2,000
• B)B;$8,000
• C)C;$1,000
• D)C;$2,000
• E)C;$6,000

---

Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders but is instead reinvested in the business or kept as a reserve for certain purposes.

Completed Contract Method

A financial accounting approach where revenue and expenses of a contract are recorded only when the contract is fully completed.

Long-Term Construction

Projects or contracts that span over a long period, typically larger in scope and complexity which may impact financial reporting due to their duration.

Critical Event

An occurrence that significantly alters the current course of a business or project, potentially impacting financial outcomes or operational capabilities.