Which of the following statement is TRUE about cost-time trade off in projects?
ID: 376428 • Letter: W
Question
Which of the following statement is TRUE about cost-time trade off in projects?
The normal cost is the amount of money it normally takes to complete an activity faster than its normal time.
The crash cost is the total additional cost associated with completing an activity in its crash time rather than in its normal time.
Crashing a project is decreasing the crash time, possibly up to its limit, the normal time.
All of the above is FALSE.
The normal cost is the amount of money it normally takes to complete an activity faster than its normal time.
The crash cost is the total additional cost associated with completing an activity in its crash time rather than in its normal time.
Crashing a project is decreasing the crash time, possibly up to its limit, the normal time.
All of the above is FALSE.
Explanation / Answer
There is NORMAL time to execute a project and corresponding cost associated with executing the project within the Normal time is called NORMAL cost
With effort and addition of resources, the project however can be executed in lesser time , The revised time within which the project can be executed is called CRASH TIME and corresponding all costs associated with completing the project within CRASH TIME is called CRASH COST.
It is therefore clarified that Crash cost is not total additional cost associated with completing an activity in its crash tme rather than Normal time.
It is also therefore not true that Crashing a project means decreasing the crash time
Following definitions will be relevant to understand the correct answer for this problem :
Normal time: - It is time taken by the project without any delay in any activity of the project. Normal time of the project does not contain crashing of any activities.
Normal cost: - Normal cost is the cost associated when the project is completed within the normal time
Crash cost: - Crash cost is the cost associated when the project is completed with crash time of the project.
Crash time: - Crash project time is the minimum time by which the project may be completed.
Cost slope: - Cost slope is defined as the ratio of difference between crash cost & normal cost to the difference between normal time & crash time
Thus all the first three statements made in the the problem case are FALSE.
Hence correct answer is “FALSE”
ANSWER : ALL THE ABOVE IS FALSE
ANSWER : ALL THE ABOVE IS FALSE
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