Chapter 16
BUDGETING: CAPITAL EXPENDITURES, RESEARCH AND DEVELOPMENT EXPENDITURES, AND CASH; PERTCOST
MULTIPLE CHOICE
Question Nos. 12-15 and 17-19 are AICPA adapted. Question Nos. 11, 21-22, and 25 are ICMA adapted. Question Nos. 10, 16, 20, 23, and 24 are CIA adapted.
C
1.
In a Pro Pror ra! a! "#a$ "#a$ua uati tion on and and %e# %e#ie ie& & 'e( 'e()n )ni* i*ue ue s+st s+ste! e! P"% P"%' ',, red redu( u(in in ttot ota$ a$ ti!e ti!e (an (an e e a((o!p$is)ed on$+ +/
C
2.
A.
addin an anot)er s) s)it
.
s)ortenin a s$a( pat)
C.
s)or s)orte teni nin n t)e t)e (riti riti(a (a$$ pat) pat)
.
&orin o#erti!e
".
usin sen sensiti siti##it+ an ana$+s a$+siis
')e ')e t+p t+pe e o o res resea ear( r() ) a (o!p (o!pan an++ und under erta tae ess or or !odi !odi+ +in in ei eist stin in in inis is)e )ed d oo oods ds so as to en)an(e or at $east !aintain its (o!petiti#e position + pro#idin etter *ua$it+ or peror!an(e is no&n as/
C
3.
A.
asi( resear()
.
sae saet+ t+,, )ea )ea$t $t), ), and and (on (on#e #eni nien en(e (e rese resear ar() ()
C.
produ(t i!pro#e!ent
.
ne& prod produ u(t de#e$o e$op!en !ent
".
(apa(it+ i! i!pro#e!ent
A u use seu u$$ and and aso aso$u $ute te$+ $+ esse essent ntia ia$$ too too$$ t)at t)at is used used + + !an !ana ae! e!en entt to dete deter! r!in ine e pa+ pa+!e !ent ntss or or ond re*uire!ents, in(o!e ta insta$$!ents, and pension and retire!ent unds is t)e/ 222
4.
A.
produ(tion udet
.
pro proe( e(te ted d or or or ore( e(as astt in( in(o! o!e e sta state te!e !ent nt
C.
(as) udet
.
epense udet
".
(apita$ ta$ ep epe endi nditure turess ud ude et
At t)e t)e e ein inni nin n o o a ud udet et per perio iod, d, prep prepai aid d ren rentt &as &as 3,0 3,000 00.. % %en entt e ep pen ense se or or t)e t)e peri period od is epe(ted to e*ua$ 1,000, &)i$e prepaid rent at t)e end o t)e period is epe(ted to e*ua$ 2,000. ')e (as) re*uired or t)e rent pa+!ents is/ A.
19,000
.
1,000
C.
20,000
.
17,000
".
23,000
223
udetin/ Capita$, %esear() and e#e$op!ent "penditures, and Cas)8 P"%'Cost
224
SUPPORTING CALCULATION:
1,000 - 3,000 - 2,000 : 17,000
5.
In preparin a (as) udet, t)e data (on(ernin (as) re*uire!ents or di#idends and $oans is !ost $ie$+ ound in t)e/
6.
A.
epense udet
.
sa$es udet
C.
p$ant and e*uip!ent udet
.
treasurer;s udet
".
udeted a$an(e s)eet
')e p$annin !et)od &)ose !aor use is in t)e deter!ination o t)e $onest ti!e duration or t)e (o!p$etion o an entire proe(t is/
7.
A.
proai$isti( udets
.
t)e is(a$ responsii$it+ s+ste!
C.
.
P"%' or CPM
".
PP=
')e p$annin pro(edure t)at is used prin(ipa$$+ in o#ern!enta$ and nonproit aen(ies and re*uires a !anaer to usti+ an entire udet rat)er t)an ust udet in(reases is/
.
A.
(as) ore(astin
.
C.
t)e is(a$ responsii$it+ s+ste!
.
P"%'
".
PP=
In usin t)e P"%' s+ste! and esti!atin t)e epe(ted ti!e or ea() a(ti#it+, t)e or!u$a re*uires t)at t)e opti!isti( ti!e #a$ue e i#en a &ei)tin o/ A.
14
.
1
C.
4
.
6
".
12
225 C
C)apter 16 9.
')e esti!ated ti!es or t)e (o!p$etion o an a(ti#it+ are/ opti!isti(, 2 da+s8 !ost $ie$+, 6 da+s8 and pessi!isti(, 16 da+s. ')e epe(ted ti!e &ou$d t)en e/ A.
6 da+s
.
da+s
C.
7 da+s
.
16 da+s
".
none o t)e ao#e
SUPPORTING CALCULATION:
udetin/ Capita$, %esear() and e#e$op!ent "penditures, and Cas)8 P"%'Cost
226
2 + 4(6) + 16 = 7 6 "
A
10.
11.
>ero-ase udetin/ A.
e!p)asi
.
in#o$#es t)e re#ie& o ()anes !ade to an orani
C.
does not pro#ide a proe(tion o annua$ ependitures
.
is a !et)od pe(u$iar to udetin + prora!
".
in#o$#es t)e re#ie& o ea() (ost (o!ponent ro! a (osteneit perspe(ti#e
A udet s+ste! reerred to as t)e ?p$annin, prora!!in, udetin s+ste! PP=?/ A.
($assiies udet re*uests + a(ti#it+ and esti!ates t)e eneits arisin ro! ea() a(ti#it+
.
presents t)e p$an or a rane o a(ti#it+ so t)at t)e p$an (an e adusted or ()anes in a(ti#it+ $e#e$s
C.
drops t)e (urrent !ont) or *uarter and adds a uture !ont) or a uture *uarter as t)e (urrent !ont) or *uarter is (o!p$eted
.
(onso$idates t)e p$ans o t)e separate re*uests into one o#era$$ p$an
".
di#ides t)e a(ti#ities o indi#idua$ responsii$it+ (enters into a series o pa(aes t)at are raned ordina$$+
A
12.
')e ". Mundo Co!pan+ is preparin its (as) udet or t)e !ont) o Ma+. ')e o$$o&in inor!ation is a#ai$a$e (on(ernin its a((ounts re(ei#a$e/
"sti!ated (redit sa$es or Ma+............................................................................
200,000
A(tua$ (redit sa$es or Apri$.................................................................................
150,000
"sti!ated (o$$e(tions in Ma+ or (redit sa$es in Ma+..........................................
20@
"sti!ated (o$$e(tions in Ma+ or (redit sa$es in Apri$.........................................
70@
"sti!ated (o$$e(tions in Ma+ or (redit sa$es prior to Apri$.................................
20,000
"sti!ated &rite-os in Ma+ or un(o$$e(ti$e (redit sa$es...................................
,000
"sti!ated pro#ision or ad dets in Ma+ or (redit sa$es in Ma+......................
7,000
')e esti!ated (as) re(eipts ro! a((ounts re(ei#a$e (o$$e(tions in Ma+ are/ A.
165,000
.
157,000
C.
15,000
.
150,000
".
none o t)e ao#e
227
C)apter 16
SUPPORTING CALCULATION:
200,000 .2 150,000 .7 20,000 : 165,000
udetin/ Capita$, %esear() and e#e$op!ent "penditures, and Cas)8 P"%'Cost
13.
22
=()!id$ap Co!pan+ is preparin its (as) udet or t)e !ont) o Apri$. ')e o$$o&in inor!ation is a#ai$a$e (on(ernin its in#entories/
In#entories at einnin o Apri$.........................................................................
90,000
"sti!ated pur()ases or Apri$.............................................................................
440,000
"sti!ated (ost o oods so$d or Apri$................................................................
450,000
"sti!ated pa+!ents in Apri$ or pur()ases in Mar()..........................................
75,000
"sti!ated pa+!ents in Apri$ or pur()ases prior to Mar().................................
30,000
"sti!ated pa+!ents in Apri$ or pur()ases in Apri$............................................
75@
')e esti!ated (as) disurse!ents or in#entories in Apri$ are/ A.
411,250
.
435,000
C.
405,000
.
442,500
".
none o t)e ao#e
SUPPORTING CALCULATION:
75,000 30,000 440,000 .75 : 435,000
14.
=)u$a, In(. is preparin its (as) udet or t)e !ont) o No#e!er. ')e o$$o&in inor!ation is a#ai$a$e (on(ernin its in#entories/
In#entories at einnin o No#e!er................................................................
10,000
"sti!ated (ost o oods so$d or No#e!er.......................................................
900,000
"sti!ated in#entories at end o No#e!er.........................................................
160,000
"sti!ated pa+!ents in No#e!er or pur()ases prior to No#e!er..................
225,000
"sti!ated pa+!ents in No#e!er or pur()ases in No#e!er..........................
0@
')e esti!ated (as) disurse!ents or in#entories in No#e!er are/ A.
704,000
.
1,057,000
C.
945,000
.
929,000
229
C)apter 16 ".
none o t)e ao#e
SUPPORTING CALCULATION:
0,000B . 225,000 : 929,000 B10,000 4 - 160,000 : 900,000 4 : 0,000
15.
A or!a$ diara! o t)e interre$ations)ips o (o!p$e ti!e series o a(ti#ities is/ A.
$inear prora!!in
.
Poisson distriution !ode$s
C.
Monte Car$o !ode$s
.
P"%'
".
t)e !et)od o $east s*uares
udetin/ Capita$, %esear() and e#e$op!ent "penditures, and Cas)8 P"%'Cost
16.
')e !ost appropriate te()ni*ue or deter!inin t)e $onest ti!e re*uired to (o!p$ete a parti(u$ar proe(t &ou$d e/
"
17.
1.
A.
inteer prora!!in
.
a!e t)eor+
C.
*ueuin t)eor+
.
Prora! "#a$uation and %e#ie& 'e()ni*ue P"%'
".
reression ana$+sis
Prora! "#a$uation and %e#ie& 'e()ni*ue P"%' is a s+ste! t)at uses/ A.
proai$isti( udets
.
$east s*uares !et)od
C.
$inear prora!!in
.
e(ono!i( order *uantit+ or!u$a
".
net&or ana$+sis and (riti(a$ pat) !et)ods CPM
In a Prora! "#a$uation and %e#ie& 'e()ni*ue P"%' s+ste!, a(ti#ities a$on t)e (riti(a$ pat)/
A
19.
A.
interse(t at a (orner point des(ried + t)e easi$e area
.
!a+ e de$a+ed &it)out ae(tin (o!p$etion ti!e
C.
o$$o& t)e $ine o est it
.
)a#e a s$a( o
".
)a#e a positi#e s$a(
')e *uantitati#e te()ni*ue t)at &ou$d e !ost useu$ or ana$+
"
20.
A.
Prora! "#a$uation and %e#ie& 'e()ni*ue P"%'
.
reression ana$+sis
C.
proai$isti( udetin
.
*ueuin t)eor+
".
$inear prora!!in
')e use o P"%' or CPM !i)t app$+ &)en p$annin or/ A.
t)e insta$$ation o a ne& (o!puter s+ste!
.
t)e de#e$op!ent o a ne& produ(t
C.
t)e (onstru(tion o a ne& oi(e ui$din
.
proe(t de#e$op!ent
230
231
C)apter 16 ".
21.
a$$ o t)e ao#e
A a(tor+ )as se#era$ s!a$$ (onstru(tion and repair proe(ts or t)e !aintenan(e (re& to peror!. ')ere are a $i!ited nu!er o painters, &ood&orers, and e$e(tri(ians. ')e !et)od t)at &i$$ )e$p pro#ide t)e astest (o!p$etion o a$$ os is/ A.
transportation a$orit)!s
.
*ueuin t)eor+
C.
ti!e-series ana$+sis
.
P"%'CPM ana$+sis
".
$inear prora!!in
udetin/ Capita$, %esear() and e#e$op!ent "penditures, and Cas)8 P"%'Cost
22.
232
Criti(a$ Pat) Met)od CPM is a te()ni*ue or ana$+
is t)e s)ortest ti!e pat) ro! t)e irst e#ent to t)e $ast e#ent or a proe(t
.
is t)e $onest ti!e pat) ro! t)e irst e#ent to t)e $ast e#ent or a proe(t
C.
is t)e !ai!u! a!ount o ti!e an a(ti#it+ !a+ e de$a+ed &it)out de$a+in t)e tota$ proe(t e+ond its taret ti!e
C
23.
.
is t)e ear$iest startin ti!e an a(ti#it+ or a proe(t (an ein
".
is t)e pessi!isti( ti!e esti!ate or an a(ti#it+ o a proe(t
')e net&or s)o&n in iure 16-1 &as de#e$oped + usin t)e Prora! "#a$uation and %e#ie& 'e()ni*ue P"%' to aid in s()edu$in t)e de#e$op!ent o a ne& produ(t. ')e (riti(a$ pat) is/ A.
1 - 3- 6
.
1 - 2- 4-6
C.
1 - 2- 5-6
.
1 - 3- 4-6
".
1 - 4- 6
233
C)apter 16
SUPPORTING CALCULATION:
1 - 3 - 6 : 14 1 - 3 - 4 - 6 : 13 1 - 4 - 6 : 12 1 - 2 - 4 - 6 : 11 1 - 2 - 5 - 6 : 15
udetin/ Capita$, %esear() and e#e$op!ent "penditures, and Cas)8 P"%'Cost
24.
234
Dsin t)e o$$o&in data, (o!pute t)e (as) inan(in needs or e(ess (as) to in#est.
Cas) a$an(e, einnin..................................................................................... Co$$e(tions ro! (usto!ers..................................................................................
20,000 150,000
isurse!ents/ or dire(t !ateria$s.......................................................................................
25,000
or ot)er (osts and epenses......................................................................
30,000
or pa+ro$$.....................................................................................................
75,000
or in(o!e taes..........................................................................................
6,000
or !a()iner+ pur()ase...............................................................................
30,000
Mini!u! (as) a$an(e desired...........................................................................
20,000
A.
e(ess (as)C4,000
.
e(ess (as)C14,000
C.
inan(in need C10,000
.
inan(in need C16,000
".
none o t)e ao#e
SUPPORTING CALCULATION:
20,000 150,000 - 25,000 - 30,000 - 75,000 - 6,000 - 30,000 - 20,000 : 16,000
A
25.
CM% is a retai$ !ai$-order ir! t)at (urrent$+ uses a (entra$ (o$$e(tion s+ste! t)at re*uires a$$ ()e(s to e sent to its oston )ead*uarters. An a#erae o i#e da+s is re*uired or !ai$ed ()e(s to e re(ei#ed, our da+s or CM% to pro(ess t)e!, and one-and-a-)a$ da+s or t)e ()e(s to ($ear t)rou) t)e an. A proposed $o(-o s+ste! &ou$d redu(e t)e !ai$ and pro(ess ti!e to t)ree da+s, and t)e ()e( ($earin ti!e to one da+. CM% )as an a#erae dai$+ (o$$e(tion o 100,000. I CM% s)ou$d adopt t)e $o(-o s+ste!, its a#erae (as) a$an(e &ou$d in(rease +/ A.
650,000
.
250,000
C.
00,000
.
400,000
".
none o t)e ao#e
235
C)apter 16
SUPPORTING CALCULATION:
Mai$ and pro(essin sa#ins
: 5 4 - 3 100,000
C$earin sa#ins
:
600,000 : 1.5 - 1 100,000
50,000
: 650,000
26.
')e resear() and de#e$op!ent udet is (onsidered est or/ A.
a$an(in t)e resear() and de#e$op!ent prora!
.
(oordinatin t)e prora! &it) t)e (o!pan+;s ot)er proe(ts
C.
()e(in (ertain p)ases o noninan(ia$ p$annin
.
a$$ o t)e ao#e
".
none o t)e ao#e
:
udetin/ Capita$, %esear() and e#e$op!ent "penditures, and Cas)8 P"%'Cost
27.
')e on$+ resear() and de#e$op!ent (osts t)at s)ou$d e epensed in t)e period in(urred are t)ose t)at are/
A
C
2.
29.
30.
236
A.
(ondu(ted or ot)ers
.
uni*ue to ()e!i(a$ !anua(turers
C.
uni*ue to etra(ti#e industries
.
in(urred + o#ern!ent reu$ated enterprise
".
none o t)e ao#e s)ou$d e epensed
')e treasurer;s udet indi(ates (as) re*uire!ents or a$$ o t)e o$$o&in, e4(ept/ A.
(o!!er(ia$ epenses
.
di#idends
C.
interest on onus
.
donations
".
in(o!e ta
eneits o a (o!puteri
s)ortenin t)e p$annin (+($e
.
redu(in t)e need or p$annin
C.
ti!e to re(onsider p$annin assu!ptions
.
operatin ana$+sis (apai$it+
".
p$ans (an e updated (ontinuous$+
Prospe(ti#e inan(ia$ inor!ation s)ou$d in($ude a$$ o t)e o$$o&in e4(ept/ A.
a des(ription o &)at !anae!ent intends to present
.
a su!!ar+ o sinii(ant assu!ptions
C.
an auditor;s opinion
.
a (a#eat t)at t)e epe(ted resu$ts !a+ not e a()ie#ed
".
a or!at si!i$ar to t)e )istori(a$ inan(ia$ state!ents
237
C)apter 16
PROBLEMS
PROBLEM
1. Ca!h Re"e#pt! B$%&et' Astro Co. i$$s its (usto!ers or sa$es on a((ount at t)e end o ea() !ont), &it)
ter!s o 210"EM, n45. it+ per(ent o (redit sa$es are paid &it)in t)e dis(ount period, &)i$e 30@ are paid at t)e end o t)e net period. iteen are paid at t)e end o t)e se(ond o$$o&in !ont), ut t)ese (usto!ers pa+ a 2@ ser#i(e ()are on an+ a$an(e due. %e(ei#a$es are re(orded at ross. ')e o$$o&in data are i#en or t)e $ast t&o !ont)s and or t)e net t&o !ont)s/
Fast '&o Mont)s Auust
Net '&o Mont)s
=epte!er
E(toer
No#e!er
Cas) sa$es......................................................
20,400
1,000
46,200
31,500
Credit sa$es.....................................................
40,000
90,000
60,000
52,000
Et)er re(eipts.................................................
2,000
C
C
4,600
%e*uired/ Prepare a (as) re(eipts udet or t)e t&o-!ont) period, E(toer and No#e!er.
SOLUTION
Astro Co. Cas) %e(eipts udet or E(toer-No#e!er, 19--
E(toer Cas) sa$es............................................................................................................ 46,200 Et)er re(eipts.......................................................................................................
No#e!er 31,500
C
4,600
Fate 15@ 40,000............................................................................
6,000
C
=er#i(e ()are 2@ 6,000...............................................................
120
C
44,1001
C
Credit sa$es/ Auust/
=epte!er/ is(ount taen..........................................................................................
udetin/ Capita$, %esear() and e#e$op!ent "penditures, and Cas)8 P"%'Cost
23
Current 30@ 90,000.......................................................................
27,000
C
Fate 15@ 90,000............................................................................
C
13,500
=er#i(e ()are 2@ 13,500..............................................................
C
270
E(toer/ is(ount taen ..........................................................................................
C
29,4002
Current 30@ 60,000.......................................................................
C
1,000
'ota$ re(eipts.................................................................................................. 123,420 1
90,000 50@ : 45,000 ross 45,000 2@
: 900 dis(ount
45,000 - 900 : 44,100 net
2
60,000 50@ : 30,000 ross 30,000 2@
: 600 dis(ount
30,000 - 600 : 29,400 net
97,270
239
C)apter 16
PROBLEM
2. ()$r*M)+th Ca!h B$%&et' ')e !anae!ent o Is$and No#e$ties Co. is preparin a (as) udet or t)e
net our-!ont) period. %e$e#ant data or t)is udet are/
Credit sa$es................................................
Mar()
Apri$
Ma+
Gune
60,000
55,000
90,000
75,000
Credit sa$es &ere 40,000 in Ganuar+ and 4,000 in eruar+. In Gu$+, (redit sa$es are esti!ated at 105,000. Co$$e(tions on a((ount are !ade at t)e rate o 75@ in t)e !ont) o$$o&in t)e sa$e and 20@ in t)e se(ond !ont) o$$o&in t)e sa$e. Haria$e epenses ot)er t)an pur()ases are e*ua$ to 30@ o sa$es8 75@ o ot) #aria$e epenses and pur()ases are paid in t)e !ont) in(urred, &)i$e 25@ are paid in t)e net !ont). Cost o oods so$d is e*ua$ to 50@ o sa$es, and pur()ases are !ade so t)at t)e endin in#entor+ is !aintained at a $e#e$ e*ua$ to 60@ o t)e needs or t)e net !ont);s sa$es. ied epenses are 3,000 per !ont).
%e*uired/ Prepare a (as) udet or t)e our-!ont) period, Mar() t)rou) Gune, indi(atin t)e net
in(rease or de(rease in t)e (as) a$an(e or ea() !ont).
SOLUTION
Is$and No#e$ties Co. Cas) udet or Mar()-Gune, 19--
Mar()
Apri$
Ma+
Gune
%e(eipts ro! sa$es in/ Ganuar+.................................................
,000
C
C
C
eruar+...............................................
36,000
9,600
C
C
Mar()....................................................
C
45,000
12,000
C
Apri$......................................................
C
C
41,250
11,000
Ma+.......................................................
C
C
C
67,500
'ota$ re(eipts...................................
44,000
54,600
53,250
7,500
udetin/ Capita$, %esear() and e#e$op!ent "penditures, and Cas)8 P"%'Cost
240
isurse!ents or/ Haria$e epenses/ eruar+..........................................
3,600
C
C
C
Mar()...............................................
13,500
4,500
C
C
Apri$.................................................
C
12,375
4,125
C
Ma+..................................................
C
C
20,250
Gune.................................................
C
C
C
16,75
ied epenses.....................................
3,000
3,000
3,000
3,000
6,750
Pur()ases/ eruar+...............................................
6,900
C
C
C
Mar()....................................................
21,375
7,125
C
C
Apri$......................................................
C
2,500
9,500
C
Ma+.......................................................
C
C
30,375
10,125
Gune......................................................
C
C
'ota$ disurse!ents......................... Net (as) in(rease de(rease ...................
4,375
4,375
C
34,75
67,250
71,625
55,500
14,000
900
6,75
241
C)apter 16
Additiona$ (o!putations/ eruar+
Mar()
Apri$
Ma+
Gune
14,400
1,000
16,500
27,000
22,500
24,000
30,000
27,500
45,000
37,500
1,000
16,500
27,000
22,500
31,500
27,600
2,500
3,000
40,500
46,500
Pur()ases/ einnin in#entor+ 60@ o 50@ o (urrent !ont);s sa$es............................ Cost o oods so$d 50@ o (urrent !ont);s sa$es............... "ndin in#entor+ 60@ o 50@ o net !ont);s sa$es....... Cost o oods so$d endin in#entor+ einnin in#entor+ : pur()ases......................
PROBLEM
3. ()$r*M)+th Ca!h B$%&et' ae$ a(tor+ In(. prepared (as) esti!ates or t)e net our !ont)s. ')e
o$$o&in esti!ates &ere de#e$oped or (ertain ite!s/
Ite! ...............................................................
Mar()
Apri$
Ma+
Gune
Cas) sa$es.......................................................
10,000
6,000
,000
11,000
Credit sa$es......................................................
5,000
2,000
6,000
9,000
Pa+ro$$..............................................................
2,000
1,500
2,500
3,000
Pur()ases.........................................................
3,000
2,600
2,00
4,000
Et)er epenses................................................
2,500
2,400
2,600
2,00
In eruar+, (redit sa$es tota$ed 9,000, and pur()ases tota$ed 5,000. Ganuar+ (redit sa$es &ere 12,000. A((ounts re(ei#a$e (o$$e(tions a!ount to 30@ in t)e !ont) ater t)e sa$e and 60@ in t)e se(ond !ont) ater t)e sa$e8 10@ o t)e re(ei#a$es are ne#er (o$$e(ted. Pa+ro$$ and ot)er epenses are paid in t)e !ont) in(urred. =e#ent+-i#e per(ent o t)e pur()ases are paid in t)e !ont) in(urred, and t)e
udetin/ Capita$, %esear() and e#e$op!ent "penditures, and Cas)8 P"%'Cost
242
re!ainder are paid in t)e o$$o&in !ont). A 15,000 ta pa+!ent is due on Gune 15. ')e (as) a$an(e &as 5,000 on Mar() 1. ')e (o!pan+ &ants a !ini!u! (as) a$an(e o 5,000 per !ont).
%e*uired/
1
Prepare a (as) udet or t)e our-!ont) period, Mar() t)rou) Gune.
2
Fist t)e a!ount o unds a#ai$a$e or in#estin or re*uired or orro&in in ea() !ont).
243
C)apter 16
SOLUTION
1
ae$ a(tor+ In(. Cas) udet or Mar()-Gune, 19--
Mar()
Apri$
Ma+
Gune
%e(eipts ro!/ Cas) sa$es..................................................
10,000
6,000
,000
11,000
Ganuar+ (redit sa$es 60@ 12,000...............................................
7,200
C
C
C
30@ 9,000......................................
2,700
C
C
C
60@ 9,000......................................
C
5,400
C
C
Mar() (redit sa$es.......................................
C
1,500
3,000
C
Apri$ (redit sa$es.........................................
C
C
600
1,200
Ma+ (redit sa$es..........................................
C
C
C
'ota$ re(eipts........................................
19,900
12,900
11,600
14,000
Pa+ro$$.........................................................
2,000
Et)er epenses...........................................
2,500
2,400
2,600
2,00
5,000................................................
1,250
C
C
C
Mar() pur()ases.........................................
2,250
750
C
C
Apri$ pur()ases............................................
C
1,950
650
C
Ma+ pur()ases............................................
C
C
2,100
700
Gune pur()ases...........................................
C
C
C
3,000
'a pa+!ent...............................................
C
C
C
'ota$ disurse!ents..............................
,000
6,600
7,50
24,500
Net in(rease de(rease in (as)......................
11,900
6,300
3,750
10,500
5,000
5,000
eruar+ (redit sa$es/
1,00
isurse!ents or/ 1,500
2,500
3,000
eruar+ pur()ases 25@
15,000
Cas) a$an(es/ einnin....................................................
5,000
"ndin......................................................... 16,900
2
5,000 11,300
,750
5,500
udetin/ Capita$, %esear() and e#e$op!ent "penditures, and Cas)8 P"%'Cost A#ai$a$e or in#estin.......................................
11,900
Needed to orro&.............................................
C
1
5,500 5,000 !ini!u! (as) a$an(e
6,300
C
244 3,750
C
C 10,5001
245
C)apter 16
PROBLEM
4. I%e+t#-#+& Cr#t#"a. Path #+ PERT Net/)r0' Ga(*ues Co!pan+ prepares a id to sa$#ae a sunen treasure
s)ip. ')e P"%' net&or in iure 16-2 on pae 222 is de#e$oped to re$e(t t)e a(ti#ities needed to re(o#er t)e s)ip. ')e nu!ers in t)e $ine se!ents represent epe(ted (o!p$etion ti!es in da+s or a(ti#ities.
%e*uired/
1
Identi+ t)e (riti(a$ pat) and t)e tota$ ti!e epe(ted or (o!p$etion.
2
')e (o!pan+ is inor!ed t)at =teps 5-6 (ou$d e s)ortened + up to t&o da+s or a (ost o 1,000 per da+ or ra(tion o a da+ s)ortened. "a() da+ or ra(tion o a da+ s)ortened &ou$d resu$t in a (ost sa#ins o 3,000 eore t)e epenses re*uired to ae(t t)e sa#ins. =)o& t)e net sa#ins, as &e$$ as t)e ne& (o!p$etion ti!e, as a resu$t o s)ortenin t)e ti!e re*uired on =teps 5-6.
udetin/ Capita$, %esear() and e#e$op!ent "penditures, and Cas)8 P"%'Cost
246
SOLUTION
1 Pat)s
Co!p$etion 'i!e a+s
1 -2-3-
15.
1 -2-4-7-
20.0
1 -5-4-7-
17.7
1 -5-6-7-
22.0
2
=teps 5-6 !a+ e s)ortened + as !u() as t&o da+s eore t)e pat) 1-2-4-7- &ou$d e(o!e (riti(a$. =a#ins &ou$d e*ua$ 23,000 - 1,000, or 4,000. ')e ne& (o!p$etion ti!e is 22 - 2 : 20 da+s.
247
C)apter 16
PROBLEM
5. Cr#t#"a. Path; C)p.et#)+ T#e #+ PERT Net/)r0' 'roop is eperien(in dii(u$ties (onstru(tin a ort on
t)e %ed %i#er. Co$. =tor() proposes t)at a P"%' net&or e used to orani
Co!p$etion 'i!e A(ti#it+
'+pe o A(ti#it+
Prede(essor A(ti#it+
in ees
1
C$ear trees
0
2
=ort trees + si
C$ear trees
6
3
=trip trees into $os
C$ear trees
9
4
Constru(t &a$$s
=trip trees into $os
12
5
Constru(t ate
=trip trees into $os
3
6
ui$d turret
=ort trees + si
6
7
ui$d (aptain;s )ouse
=trip trees into $os
ui$d oi(ers; )ouses
Constru(t &a$$s
9
9
ui$d en$isted personne$;s arra(s
ui$d oi(ers; )ouses
6
Jo$d (o!p$etion (ere!on+
A$$ ot)ers
1
10
12
%e*uired/ iara! a P"%' net&or to represent t)e a(ti#ities on pae 234. =)o& t)e (o!p$etion ti!e
ao#e ea() pat). Identi+ t)e (riti(a$ pat) and s)o& t)e (o!p$etion ti!e in &ees.
SOLUTION
udetin/ Capita$, %esear() and e#e$op!ent "penditures, and Cas)8 P"%'Cost
Pat)s
Co!p$etion 'i!e ees
0 - 1 - 2 - 6 - 10
25
0 - 1 - 3 - 7 - 10
30
0 - 1 - 3 - 4 - - 9 - 10 (riti(a$ pat)
23
0 - 1 - 3 - 5 - 10
25
24
249
C)apter 16
PROBLEM
6. PERT Net/)r0' A (o!pan+ is a(ed &it) t)e o$$o&in P"%' net&or situation ti!e in da+s/
%e*uired/
1
Ca$(u$ate t e epe(ted ti!e or ea() a(ti#it+. or ea() a(ti#it+, t)e esti!ates are t o , t ! , t p , in t)at order.
2
Ca$(u$ate t)e tota$ ti!e or ea() pat) and identi+ t)e (riti(a$ pat) as &e$$ as tota$ ti!e or ot)er pat)s.
udetin/ Capita$, %esear() and e#e$op!ent "penditures, and Cas)8 P"%'Cost
250
SOLUTION:
1 A(ti#it+
t o
t ! 4
t p
:
'ota$
6
:
t e
1-2
1
34
5
1
6
3
1-3
2
64
10
36
6
6
1-4
1
44
7
24
6
4
2-6
2
154
16
7
6
13
3-5
4
74
10
42
6
7
4-5
3
44
5
24
6
4
5-6
4
54
6
30
6
5
2 Pat)
t o s
'ota$ t e
1 -2-6
3 13
16
1 -4-5-6
445
13
1 -3-5-6
675
1 (riti(a$ pat)
