Calculate the critical ratios of activities


Problem:

Given the following information, calculate the critical ratios, and indicate which activities are on target and which need to be investigated. Comment on the situation for each of the activities. What is your overall interpretation of this result?

 

Activity

Actual Progress

Scheduled Progress

Budgeted Cost

Actual Cost

A

2 days

2 days

$40

$35

B

4 days

6 days

$30

$40

C

1 day

3 days

$50

$70

D

3 days

2 days

$25

$25

Solve the numerical problem and show all work.

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Operation Management: Calculate the critical ratios of activities
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