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NEW QUESTION 27
In PERT, slack is the:

• A. Uncertainty associated with time estimates.
• B. Number of days an activity can be delayed without forcing a delay for the entire project.
• C. Path that has the largest amount of time associated with it.
• D. Difference between the latest starting time and earliest finishing time.

Answer: B

Explanation:
PERT diagrams are free-form networks showing each activity in a large project as a line between events. The critical path is the longest path in time through the network. That path is critical in that, if any activity on the critical path takes longer than expected, the entire project will be delayed. Paths that are not critical have slack time. Slack is the number of days an activity can be delayed without forcing a delay for the entire project.

NEW QUESTION 28
The best approach for minimizing the likelihood of software incompatibilities leading to unintelligible messages is for a company and its customers to:

• A. Each write their own version of the EDI-related software.
• B. Acquire their software from the same software vendor.
• C. Agree to synchronize their updating of EDI-related software.
• D. Agree to use the same software in the same ways indefinitely.

Answer: C

Explanation:
EDI entails the exchange of common business data converted into standard message formats. Thus, two crucial requirements are that the participants agree on transaction formats and that translation software be developed to convert messages into a form understandable by other companies. Thus, if one company changes its software, its trading partners must also do so.

NEW QUESTION 29
Value engineering is:

• A. A policy of seeking continuous improvement in all phases of company activities.
• B. A method of determining prices based on a cost determination.
• C. An element of a marketing mix strategy.
• D. A systematic approach to assessing all aspects of cost buildup for a product.

Answer: D

Explanation:
Value engineering is a means of reaching targeted cost levels. It is a systematic approach to assessing all aspects of the value chain cost buildup for a product: R&D, design of products, design of processes, production, marketing, distribution, and customer service. The purpose is to minimize costs without sacrificing customer satisfaction.

NEW QUESTION 30
Assume that C Company offers to perform the operation 2 function on 1,000 units at a unit price of US $40, excluding direct materials cast. Also assume that Y Company offers to perform the Operation 1 function an 1,000 units at a unit price of US $7, excluding direct materials cost. Which of these mutually exclusive offers is acceptable?

• A. Y but not C.
• B. Neither offer should be accepted.
• C. C but not Y.
• D. X or Y.

Answer: C

Explanation:
KG's offer should be accepted because its cast is US $40,000 1,000 units x $40), but the increase in throughput contribution is US $72,000 [1,000 units $120 unit price - $48 E' 1 per unit)]. Hence, the relevant cost of QC's offer is less than the incremental throughput contribution. ms's offer effectively increases the capacity of the bottleneck operation. Y's offer should be rejected because, even though its US $7 unit price is less than the US $8 unit operating cost excluding direct materials) for Operation 1. it will result in the incurrence of additional casts with no increase in throughput contribution, given that Operation 2 is already producing at its 150,000-unit capacity.

NEW QUESTION 31
When attempting to devise creative solutions to problems, team members initially should do which of the following?

• A. Suspend assumptions and negative feedback
• B. Provide documentation to support their positions
• C. Weight suggestions based on the speaker's level of authority.
• D. Discuss the details of all options presented

Answer: D

NEW QUESTION 32
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