Question

An activity's normal time and cost are 8 and $100, respectively. its estimated crash time and cost are 6 and $160, respectively. what is this activity's crash cost per time unit?

Answer 1

The activity's crash cost per time unit is $30.

Crash cost per time unit equals the cost slope.

Cost slope equals rise/run; therefore (crash cost - normal cost)/(normal time - crash time)

or ($160 - $100)/(8 - 6)

= $30.

Activity crash costs are the costs associated with choosing a faster alternative to do work. Note that this is the full cost associated with the alternative approach, not the added cost. Therefore, the formula returns a value representing the accident cost per period.

A project crash means adding additional resources to speed up the project completion time. Lowering normals can crash your project. Completion times for critical activities called activity crashes. This can be achieved by having more resources to run them.

Learn more about crash activity here:brainly.com/question/18349575

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