Question
Download Solution PDFIn any crash program for a project
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFA project is crashed in order to complete the project in the optimum duration with the minimum corresponding cost.
The total cost to complete a project includes
Direct Cost: It is the cost directly involved with the completion of the project. It includes the labour cost, machine cost, equipment cost etc.
Indirect Cost: It is the cost not directly involved but it is necessary for the safe and timely completion of the project.
Total cost curve
Therefore when the project is crashed the direct cost will increase and the indirect cost will decrease.
During crashing of program for a project Direct costs increase, and indirect costs decrease.
Last updated on Jul 2, 2025
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