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AACE International AACE-PSP Exam - Topic 2 Question 37 Discussion

For activity 11001. why would the crashed direct cost be greater than the direct cost of the normal schedule?
C) Generally, more equipment is used for a crashed project; therefore, it costs more to demobilize
A) Additional extended overhead is also being shown in this activity
B) Some costs resulting from the crashed efforts were forgotten in previous activities
D) Management bonuses for early completion were included in this activity

AACE International AACE-PSP Exam - Topic 2 Question 37 Discussion

Actual exam question for AACE International's AACE-PSP exam
Question #: 37
Topic #: 2
[All AACE-PSP Questions]

For activity 11001. why would the crashed direct cost be greater than the direct cost of the normal schedule?

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Suggested Answer: C

by Ricarda at Jul 04, 2025, 10:57 AM

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Luisa
8 months ago
I disagree with D, bonuses shouldn't affect direct costs like that.
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Dana
8 months ago
A is a good point, extended overhead can really spike costs.
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Brice
9 months ago
C makes sense too, more equipment means higher costs.
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Valda
9 months ago
Wait, are we really including management bonuses? That seems odd.
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Zona
9 months ago
I think it's definitely B. Those forgotten costs can add up.
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Izetta
9 months ago
Management bonuses for early completion sounds familiar, but I can't recall if that would actually be included in the direct costs like option D suggests.
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Kimbery
10 months ago
I feel like we talked about how using more equipment in a crashed project increases costs, so option C might be the right choice.
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Markus
10 months ago
I’m not entirely sure, but I think option B could be a factor if we overlooked some costs in earlier phases.
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Lorrie
10 months ago
I remember discussing how additional overhead can really add up in a crashed schedule, so option A seems plausible.
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King
10 months ago
I'm pretty confident I know the answer to this one. The crashed direct cost would be greater due to the additional overhead and management costs associated with the accelerated schedule.
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Vincent
10 months ago
Okay, I think I've got a strategy here. The key is to consider the additional costs that come with crashing a project, like overtime, extra equipment, and demobilization. I'll analyze each option carefully.
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Shenika
11 months ago
Hmm, I'm a bit confused by this question. I'll need to review the concepts around crashed schedules and direct costs to figure out the right approach.
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Ryann
11 months ago
This seems like a tricky one. I'll need to think through the different factors that could lead to higher direct costs for a crashed schedule.
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Shantay
1 year ago
I think management bonuses for early completion could also be a factor in the higher cost.
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Tess
1 year ago
I believe more equipment being used for a crashed project also contributes to the higher cost.
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Allene
1 year ago
I agree with Yolando, the additional extended overhead is a valid reason.
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Yolando
1 year ago
I think the crashed direct cost is greater because of additional extended overhead.
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Lorita
1 year ago
Option A seems like the way to go. Additional extended overhead is a logical explanation for the increased direct cost. Although, option D did make me chuckle.
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Cyril
1 year ago
User 2: Yeah, option D does seem a bit funny. I think option A is the most logical choice here.
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Magdalene
1 year ago
User 1: I agree, option A makes the most sense. Additional extended overhead would definitely contribute to the increased direct cost.
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Nathalie
1 year ago
Option D is hilarious! Management bonuses for early completion? That's a good one. But I'm going with option C - more equipment means more expenses.
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Carlee
1 year ago
I think option B is the correct answer. If some costs were forgotten in previous activities, they would show up in the crashed direct cost.
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Paola
1 year ago
Option C makes the most sense to me. More equipment means higher demobilization costs, which would increase the direct cost of the crashed schedule.
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Winfred
1 year ago
Additional extended overhead being shown in this activity could also explain the greater crashed direct cost.
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Sage
1 year ago
I think management bonuses for early completion could also contribute to the higher direct cost.
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Ligia
1 year ago
I agree, more equipment definitely leads to higher demobilization costs.
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