QUESTION 15 To find the shortest possible project duration for the least cost: c

Question

QUESTION 15 To find the shortest possible project duration for the least cost: crash all activities on the critical path (CP), then relax all non-CP activities O crash all activities not on the CP, then relax all critical activities crash all activities in the project, then relax those not on the CP crash all activities in the project, then relax those on the critical path QUESTION 16 Which statement is correct: In the CPM, as the duration of a project is decreased, usually: so are both its direct and indirect costs direct costs increase, but indirect costs decrease both direct and indirect costs increase direct costs decrease, indirect costs increase

Explanation / Answer

(15)

First, crash all activities and then relax those which are not on critical path because crashing of these activities are needless and uneconomical. Option (3) is correct.

(16)

As duration shrinks, the direct cost will increase because we are applying more resources (for crashing) to the particular activity and that is why their durations are getting reduced. On the other hand, the indirect cost will reduce because the indirect cost is 'overhead' in nature. As the total duration reduces, the indirect cost will get reduced (less apportioned).

Option (2) is correct

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