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Objective Question & Answer

QUESTION

Objective Question

Q.1

The normal duration and normal cost of an activity are 10 days and 350 respectively. The cost

slope is 75 per day. If the crash duration is 8 days, then what is the crash cost of the activity

A
Rs 400
B
Rs 600
C
Rs 600
D
None of the above
Answer ( Option B)

Rs 600

Solution

Days crashed = 10 - 8 = 2 days

Extra cost = cost slope x days crashed = 75 x 2 = 150

Crash cost = normal cost + extra cost

Crash cost = 350 + 150 = Rs 500

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