Challenge to ca finalists - costing

Final 1147 views 3 replies

The following activities were listed during a brainstorming session on product development. Find the appropriate predecessor-successor relationships and then construct an AON network to reflect the project using the activity duration times given in the information table. Assume a five-day workweek. Find the critical path and time for the project. Find the slack for all activities.


1. Organize the sales office: Hire sales manager. (6 weeks)
2. Hire sales personnel: The sales manager will recruit and hire the salespeople needed. (4 weeks)
3. Train sales personnel: Train the salespeople hired to sell the product to the distributors. (7 weeks)
4. Select advertising agency: The sales manager will select the agency best suited to promote the new product. (2 weeks)
5. Plan advertising campaign: The sales office and advertising agency will jointly plan the advertising campaign to introduce the product to the public. (4 weeks)
6. Conduct advertising campaign: The advertising agency will conduct a ?owatch for?? campaign for potential customers. (10 weeks)
7. Design package: Have packaging engineer design the package most likely to ?osell.?? (2 weeks)
8. Set up packaging facility: Prepare to package the products when they are received from the manufacturer. (10 weeks)
9. Package initial stocks: Package stocks received from the manufacturer. (6 weeks)
10. Order and receive stock from the manufacturer: Order the stock from the manufacturer.
The time given includes the time for delivery. (13 weeks)
11. Select distributors: The sales manager will select the distributors whom the salespeople will contact to make sales. (9 weeks)
12. Sell to distributors: Take orders from the distributors for the new product, with delivery promised for the product-introduction date. If orders exceed stock, assign stock on a quota basis. (6 weeks)
13. Ship stock to distributors: Ship the packaged stock to distributors in accord with their orders or quota. (6 weeks)

What managerial problems and opportunities do you see as a result of your work?

Replies (3)
Sir, this surely is a superb question (both conceptual) and practical, but why do the examiners never test these kind of real life practical questions in exams. They always ask such that more than 50% of paper is repeats. Hope to see these kind of questions in the future where only intelligent people become CA and not those who bank too much on scanners and practice manuals.

Sir

Question is brillantly crafted but the problem is it would take nearly an hour to first identify the activity,arrange and the find out all the slacks

Mr abdul haseeb If you want such questions to be asked in exams then how long would you suggest the duration of exam should be and what weightage shall you award for such kind of question to be asked in exam??


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register