Question

In: Finance

PART 1) Which of the following statements(s) is/are correct? Group of answer choices An weakness of...

PART 1)

Which of the following statements(s) is/are correct?

Group of answer choices

An weakness of SPI is that it does not take into account if the project's critical path is on schedule. It is possible to have a SPI greater than 1.0 while the project is actually behind schedule.

An weakness of SPI is that it does not take into account of activites/tasks that have a budgeted cost of zero, such as tasks dealing with submittals and ordering of materials.

SPI should always be used together with the critical path to determine a project's schedule performance.

SPI alone is a reliable indicator on the schedule performance of a project.

PART 2)

The Actual Cost of the Work Performed (ACWP) is obtained from the cost-loaded schedule.

Group of answer choices

true

false

Solutions

Expert Solution

PART 1) The correct statements are:

  • An weakness of SPI is that it does not take into account of activites/tasks that have a budgeted cost of zero, such as tasks dealing with submittals and ordering of materials.
  • SPI should always be used together with the critical path to determine a project's schedule performance.

PART 2)

True,The Actual Cost of the Work Performed (ACWP) is obtained from the cost-loaded schedule as it includes all of the items of cost that are necessary to complete the project such as labour,Subcontractors,Materials,Equipments etc.


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