Keith assembles peanut valves and the recorded data is displayed in the table. During one of the cycles, he pauses to answer a phone call from his friend who suggests that he seek employment elsewhere

Keith fields calls with some regularity, but that's not considered part of his routine job responsibilities. What is the select time for this job element?

Time (minutes) Observations
2.5 15
3.0 23
3.5 25
10 1

A) greater than or equal to 3.2 minutes
B) less than 3.2 minutes but greater than or equal to 2.8 minutes
C) less than 2.8 minutes but greater than or equal to 2.4 minutes
D) less than 2.4 minutes

B

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Costs incurred subsequent to the acquisition of an asset are capitalized if they provide future benefits.

a. true b. false

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What is the crashing cost per week for activity A in Table 7.7?

A) $2,000 B) $3,000 C) $4,000 D) This activity cannot be crashed.

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