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Question

In the Critical Path Method (CPM), the cost-time slope of an activity is given by

Options :

  1. C r a s h C o s t − N o r m a l C o s t C r a s h T i m e

  2. N o r m a l C o s t C r a s h T i m e − N o r m a l T i m e

  3. C r a s h C o s t − N o r m a l C o s t N o r m a l T i m e − C r a s h T i m e

  4. C r a s h C o s t C r a s h T i m e − N o r m a l T i m e

Show Answer

Answer :

C r a s h C o s t − N o r m a l C o s t N o r m a l T i m e − C r a s h T i m e

Solution :

Cost Slope : The direct cost curve is a curve that can be approximated by a straight line, depending upon the flatness of the curve. The slope of this straight is the cost slope. It is very helpful in the project cost analysis.

C s = C r a s h C o s t − N o r m a l C o s t N o r m a l T i m e − C r a s h T i m e

The activity with minimum cost slope should be crashed first, as it results in optimum crashing of the project.

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