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AACE International CCP Certified Cost Professional (CCP) Exam Exam Practice Test

Demo: 56 questions
Total 189 questions

Certified Cost Professional (CCP) Exam Questions and Answers

Question 1

When the project plan is implemented:

Options:

A.

Activities are carefully monitored and controlled against the baseline

B.

The basis for payment applications is formalized

C.

The forward and backward pass is identified

D.

CPI and SPI can be calculated and reported

Question 2

Which of the following best describes the three key participants for projects that are executed under a three-party contractual relationship?

Options:

A.

Contracting officer, contractor, and contractor project manager

B.

Procurement officer, underwriter, and project manager

C.

Owner, engineer, contractor

D.

Client, project manager, procurement manager

Question 3

Money is value. Having money when you need it is very important. Money can also be valuable when used wisely by knowing when to spend and when to conserve Also, planning now for future expenses can be a plus to the company rather than a debit.

There are several ways to capitalize money and spending. Basically there is the single payment method that has a compound amount factor and a present worth factor. There is the uniform annual series that has a sinking fund factor, capital recovery factor and also the compound amount factor and present worth factor. At this point, we can assure money is worth 10%.

The following question requires your selection of CCC/CCE Scenario 7 (4.8.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

A contractor must purchase a piece of equipment for $150,000. It has an estimated life of 10 years with no salvage value at the end. Ten years from now it will be necessary to purchase another piece of equipment, but this time it will cost $250,000. How much will the contractor need to invest at the end of each year in order to have the right amount?

Options:

A.

$15,687

B.

$12,550

C.

$16,273

D.

$9,412

Question 4

The following question requires your selection of CCC/CCE Scenario 4 (2.7.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

What is the cost of manufacturing labor for the piece of equipment today?

Options:

A.

$140,000

B.

$875,000

C.

$210,000

D.

$105,000

Question 5

A major theme park is expanding the existing facility over a five-year period. The design phase will be completed one year after the contract is awarded. Major engineering drawings will be finalized two years after the design contract is awarded and construction will begin three years after the award of the design contract. New, unique ride technology will be used and an estimate will need to be developed to identify these costs that have no historical data.

Cost engineers who feel completely satisfied and fulfilled by their work as part of a project team are said to have reached the ______________ stage of Maslow's hierarchy of needs.

Options:

A.

Need satisfaction

B.

Belonging needs

C.

Self-actualizations

D.

Esteem

Question 6

An American company plans to acquire a new press machine from a Dutch manufacturer under the following conditions. One question remaining to be answered is the expected amount of capital recovery when salvage is accounted for.

The following question requires your selection of Scenario 1.4.15Q from the right side of your split screen. using the drop down menu, to reference during your response/choice of responses

What is the amount of capital recovery with salvage?

Options:

A.

$11,499.00

B.

$4,124.00

C.

$9,876.00

D.

$10,765.00

Question 7

If two alternatives with different useful lives are to be compared considering all costs, which of the following methods is most appropriate?

Options:

A.

Optimization

B.

Net Present Worth

C.

Equivalent Uniform Annual Value

D.

Future Worth

Question 8

An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.

Answer the question using a straight line depreciation and a 10% interest rate.

The following question requires your selection of CCC/CCE Scenario 17 (4.2.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

What is the 25 year after tax present worth of this project?

Options:

A.

$13,738

B.

$137,466

C.

$(22,533)

D.

$22,533

Question 9

A used concrete pumping truck can be purchased for $125,000. The operation costs are expected to be $65,000 the first year and increase 5% each year thereafter. As a result of the purchase, the company will see an increase in income of $100,000 the first year and 5% more each subsequent year. The company uses straight-line depreciation. The truck will have a useful life of five (5) years and no salvage value. Management would like to see a 10% return on any investment. The company's tax rate is 28%.

SCENARIO: A can manufacturing company requested you to provide data for their decision making. The unit prices of the can vary but an average selling price of $0.55 cents and average cost of $0.45 cents is estimated.

The monthly fixed costs are:

Rent-SI .600

Wages - $4.000

Miscellaneous fixed expenses - $500

Marketing team observed that factory can safely increase their unit selling price to S0.60 cents. The new break even units for the sales based on new contribution margin will be:

Options:

A.

20,000 units

B.

60,000 units

C.

6,000 units

D.

40,000 units

Question 10

The process of stating goals and determining the most effective way of reaching them is the definition for:

Options:

A.

Implementing

B.

Mission Statement

C.

Managing

D.

Planning

Question 11

The following question requires your selection of CCC/CCE Scenario 6 (2.7.50.1.3) from the right side of your split screen., using the drop down menu, to reference during your response/choice of responses.

What is the range of unit costs?

Options:

A.

$21.57

B.

$26.65

C.

$48.22

D.

$485.00

Question 12

refers to the process of calculating and reporting the non-monetary functions of the strategic asset portfolio.

Options:

A.

Asset performance assessment

B.

Asset project reporting

C.

Asset investment decision and funding

D.

Asset performance measurement

Question 13

A major theme park is expanding the existing facility over a five-year period. The design phase will be completed one year after the contract is awarded. Major engineering drawings will be finalized two years after the design contract is awarded and construction will begin three years after the award of the design contract. New, unique ride technology will be used and an estimate will need to be developed to identify these costs that have no historical data.

The project scheduler left the company and has left unfinished work. You have been hired as the new project scheduler and must update the existing schedule. What will be your first task?

Options:

A.

Recalculate the early finish for each activity

B.

Recalculate the early start for each activity

C.

Update the remaining duration for each activity

D.

Recalculate the critical path

Question 14

A major theme park is expanding the existing facility over a five-year period. The design phase will be completed one year after the contract is awarded. Major engineering drawings will be finalized two years after the design contract is awarded and construction will begin three years after the award of the design contract. New, unique ride technology will be used and an estimate will need to be developed to identify these costs that have no historical data.

The following question requires your selection of CCC/CCE Scenario 26 (2.5.50.1.2) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

What class of estimate is used for the preliminary design phase of a project?

Options:

A.

Class 5 - order of magnitude estimate with +50% / -30% accuracy

B.

Class 1 - order of magnitude with +30% / -30% accuracy

C.

Class 4 - budget estimate with +30% / -15% accuracy

D.

Class 2 - definitive estimate with +15%/-5% accuracy

Question 15

After collecting the control information on a light rail project within an original budget of 200.000 work hours, the construction contractor is ready for their monthly progress meeting with the client.

A total of 100.000 work hours have boon scheduled to date. with 105.000 work hours earned, and 110.000 work hours paid. The stated progress by the contractor Is 60%.

What is the cost variance (CV)?

Options:

A.

BCWP-ACWP = 105,000-110,000 = -5,000

B.

ACWP-BCWP = 110,000-105,000 = 5,000

C.

BCWS-ACWP = 100,000-110,000 = -10,000

D.

ACWP-BCWS = 110,000-100,000 = -10,000

Question 16

Develop a CPM method considering the below tasks and logical relationships. Use this information to answer the related questions.

What is the late finish date of activity 50?

Options:

A.

Day 47

B.

Day 38

C.

Day 28

D.

Day 37

Question 17

An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.

Answer the question using a straight line depreciation and a 10% interest rate.

The following question requires your selection of CCC/CCE Scenario 17 (4.2.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

Present worth calculations is represented by which of the following equations?

Options:

A.

Option A

B.

Option B

C.

Option C

D.

Option D

Question 18

After collecting the control information on a light rail project within an original budget of 200.000work hours, the construction contractor is ready for their monthly progress meeting with the client.

A total of 100.000 work hours have boon scheduled to date. with 105.000 work hours earned, and 110.000 work hours paid. The stated progress by the contractor Is 60%.

What is the schedule variance (SV)?

Options:

A.

BCWS - BCWP = 100.000 – 105,000 = -5,000

B.

ACWP - BCWS = 110.000 – 100,000 = 10,000

C.

BCWS -ACWP = 100.000 – 110,000 - -10,000

D.

BCWP - BCWS = 105.000 - 100.000 =- 5,000

Question 19

A used concrete pumping truck can be purchased for $125,000. The operation costs are expected to be $65,000 the first year and increase 5% each year thereafter. As a result of the purchase, the company will see an increase in income of $100,000 the first year and 5% more each subsequent year. The company uses straight-line depreciation. The truck will have a useful life of five (5) years and nosalvage value. Management would like to see a 10% return on any investment. The company's tax rate is 28%.

Which numerical method of describing quantitative data is best suited in targeted marketing?

Options:

A.

Mean

B.

Mode

C.

Range

D.

Median

Question 20

The following question requires your selection of CCC/CCE Scenario 2 (2.3.50.1.2) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

9,375 hours have been expended to date. Planned completion at this time is 75%. The project is determined to be 66% complete. What is the current cost performance index (CPI)?

Options:

A.

0.96

B.

0.84

C.

1.14

D.

0.88

Question 21

An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.

Answer the question using a straight line depreciation and a 10% interest rate.

How many years will it take to earn $400 in interest on $800 at 4% compounded annually?

Options:

A.

10 years

B.

11 years

C.

12 years

D.

13 years

Question 22

Which of the following is NOT an advantage specific to a cost reimbursable contract?

Options:

A.

Evaluation of proposals are much simpler

B.

Provides flexibility in dealing with changes

C.

An early start can be made

D.

Owner controls all aspects of the work

Question 23

The following question requires your selection of CCC/CCE Scenario 4 (2.7.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

At the end of Year 3, steel prices will have increased by what percentage over today's price? (round to 1 decimal)

Options:

A.

8.7%

B.

8.2%

C.

4.6%

D.

8.0%

Question 24

An owner advertised his villa for sale. An investor worked out an estimate on the basis mat the villa could be rented out for $1000 per month. Maintenance charges and other taxes are estimated to be $1,500 per year. The tenant has to pay all utility charges. The investor thinks that he can sell this villa for S100.000 alter 6 years. Assuming that the minimum acceptable rate of return is 12%. answer the following question.

The villa could be recommended for purchase at all of the below-mentioned prices except:

Options:

A.

$94,500

B.

$92.800

C.

$90,5000

D.

$93,500

Question 25

Cost performance index (CPI) is defined by AACE International as: (assume no change in budgeted quantities)

Options:

A.

ACWP/BCWS

B.

BCWS/BCWP

C.

ACWP/BCWP

D.

BCWP/ACWP

Question 26

A used concrete pumping truck can be purchased for $125,000. The operation costs are expected to be $65,000 the first year and increase 5% each year thereafter. As a result of the purchase, the company will see an increase in income of $100,000 the first year and 5% more each subsequent year. The company uses straight-line depreciation. The truck will have a useful life of five (5) years and no salvage value. Management would like to see a 10% return on any investment. The company's tax rate is 28%.

The compound interest factor used to determine Present Value in year number 5 is:

Options:

A.

0.3790

B.

0.6209

C.

1.6051

D.

0.6830

Question 27

A major theme park is expanding the existing facility over a five-year period. The design phase will be completed one year after the contract is awarded. Major engineering drawings will be finalized two years after the design contract is awarded and construction will begin three years after the award of the design contract. New, unique ride technology will be used and an estimate will need to be developed to identify these costs that have no historical data.

In an exit interview, an employee comments that the reason he is leaving the organization is lack of teamwork and cohesion among his co-workers. Which need of Maslow's hierarchy of needs is unmet?

Options:

A.

Belongingness needs

B.

Primary needs

C.

Self-actualization needs

D.

Esteem needs

Question 28

A major theme park is expanding the existing facility over a five-year period. The design phase will be completed one year after the contract is awarded. Major engineering drawings will be finalized two years after the design contract is awarded and construction will begin three years after the award of the design contract. New, unique ride technology will be used and an estimate will need to be developed to identify these costs that have no historical data.

After an individual's safety needs are met, what needs would the individual be motivated to fulfill next in Maslow’s hierarchy of needs?

Options:

A.

Belonging needs

B.

Self-actualization

C.

Knowledge

D.

Pay and compensation

Question 29

In the application of the benefit/cost method of analysis, what are the criteria for determining whether a proposed project is acceptable?

Options:

A.

B/C is - 1.0

B.

B/C is <1.0

C.

B/C is > minimum ROR

D.

B/C is >1.0

Question 30

A contract clause that provides the owner with the right to terminate the contract irrespective of the general contractor's liability is:

Options:

A.

Termination of contract - convenience

B.

Termination of contract - default

C.

Substantial completion

D.

Breach of contract

Question 31

As the leas cost engineer for the XYZ Services Company, you have been requested to provide pertinent for an equipment rental decision. The unit price of the food stuffs varies, but an average unit selling process has been determined to be $0.50 cents and the average unit acquisition cost is $0.40 cents.

The following revenue and expense relationships are predicted:

If the fixed rent remains unchanged, and XYZ pays S0.01 per unit as additional rent, the monthly breakeven point in numbers of units becomes:

Options:

A.

48,500 units

B.

66,667 units

C.

52,500 units

D.

33,333 units

Question 32

The following question requires your selection of CCC/CCE Scenario 2 (2.3.50.1.2) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

9,375 hours have been expended to date. Planned completion at this time is 75%. The project is determined to be 66% complete. Based on current trends, how many hours will be expended at project completion?

Options:

A.

16,215

B.

14,201

C.

12,000

D.

10,526

Question 33

In order to withdraw $400 at the end of each year for seven years, what amount should be deposited at 6.0% interest to leave nothing in the fund at the end of seven years?

Options:

A.

$2,233

B.

$3,357

C.

$2,483

D.

$2,968

Question 34

After collecting the control information on a light rail project within an original budget of 200.000 work hours, the construction contractor is ready for their monthly progress meeting with the client.

A total of 100.000 work hours have boon scheduled to date. with 105.000 work hours earned, and 110.000 work hours paid. The stated progress by the contractor is 60%.

How does the project stand?

Options:

A.

Schedule is good, cost is bad

B.

Schedule is good cost is good

C.

Schedule is bad cost is good

D.

Schedule is bad, cost is bad

Question 35

An American company plans to acquire a new press machine from a Dutch manufacturer under the following conditions. One question remaining to be answered is the expected amount of capital recovery when salvage is accounted for.

The following question requires your selection el Scenario 1.4.150 from the right side of your split screen. using the drop down menu to reference during your response/choice of responses.

Based on your analysis, should the press be purchased?

Options:

A.

CR is not a factor in this decision

B.

Not enough data to determine

C.

No

D.

Yes

Question 36

An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.

Answer the question using a straight line depreciation and a 10% interest rate.

If you buy a lot for $3,000 and sell it for $6,000 at the end of 8 years, what is your annual rate of return?

Options:

A.

10.4%

B.

9.1%

C.

8.3%

D.

9.9%

Question 37

SCENARIO: A can manufacturing company requested you to provide data for their decision making The unit prices of the can varies but an average selling price of $0.55 cents and average cost of S45 cents is estimated.

The monthly fixed costs are:

Rant-$1,500

Wages - $4.000

Miscellaneous fixed expenses - $500

If the rent increases by 100% and the unit sales/other costs remain unchanged, the new break even amount is?

Options:

A.

$60,000

B.

$41,250

C.

$33,000

Question 38

A bond that guarantees the bidder will enter into a contract on the basis of his/her bid is referred to as:

Options:

A.

Surety bond

B.

Performance bond

C.

Bid bond

D.

Liability bond

Question 39

The following question requires your selection of CCC/CCE Scenario 2 (2.3.50.1.2) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

9,375 hours have been expended to date. Planned completion at this time is 75%. The project is determined to be 66% complete. What is the current schedule performance index (SPI)?

Options:

A.

0.96

B.

0.88

C.

0.84

D.

1.14

Question 40

Which of the following is NOT an aspect of quality management?

Options:

A.

Quality assurance

B.

Quality planning

C.

Quality checking

D.

Quality control

Question 41

The following question requires your selection of CCC/CCE Scenario 2 (2.3.50.1.2) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

10,278 hours have been expended to date. The CPI at this point in time is 0.93. SPI is 1.03. How many hours were planned?

Options:

A.

10,586

B.

9,280

C.

9,559

D.

10,278

Question 42

Which of the following is NOT a type of float?

Options:

A.

Total

B.

Negative

C.

Open end

D.

Free

Question 43

When measuring progress using tasks that lack readily definable intermediate milestones and level of effort required is difficult to measure, the best methods to use is:

Options:

A.

Start/finish

B.

Weighted or equivalent units

C.

Incremental milestones

D.

Cost ratio

Question 44

What is a basic element of work or a task that must be performed over a given period of time in order to complete a project called?

Options:

A.

WBS element

B.

Activity

C.

Resource

D.

Commodity

Question 45

You are analyzing historic unit costs for 18'' Class 5 reinforced concrete pipe is a database. The unit costs include all costs-material, labor, equipment, and other, for the excavation, bedding, pipe and backfill. Refer to the following table:

What is the median unit cost?

Options:

A.

$48.22

B.

$48.35

C.

$40.00

D.

$46.59

Question 46

A used concrete pumping truck can be purchased for $125,000. The operation costs are expected to be $65,000 the first year and increase 5% each year thereafter. As a result of the purchase, the company will see an increase in income of $100,000 the first year and 5% more each subsequent year. The company uses straight-line depreciation. The truck will have a useful life of five (5) years and no salvage value. Management would like to see a 10% return on any investment. The company's tax rate is 28%.

The value of the truck at the end of year five (5) would be:

Options:

A.

$0

B.

$14,265

C.

$25,000

D.

$23,366

Question 47

A concrete slab measuring 10 feet wide by 13.5 feet long by 6 inches deep is to be installed. How many cubic yards of concrete will be required?

Options:

A.

3.0 cubic yards

B.

2.0 cubic yards

C.

3.5 cubic yards

D.

2.5 cubic yards

Question 48

A major theme park is expanding the existing facility over a five-year period. The design phase will be completed one year after the contract is awarded. Major engineering drawings will be finalized two years after the design contract is awarded and construction will begin three years after the award of the design contract. New, unique ride technology will be used and an estimate will need to be developed to identify these costs that have no historical data.

Which of the following is least likely to improve a large earthmoving contractor's productivity?

Options:

A.

Using apprentice operators to save labor costs

B.

Starting summer work in the early morning hours to minimize work during peak heat periods of the day

C.

Remove underground hazards prior to excavation work

D.

Replacing old excavators with new, larger excavators

Question 49

An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.

Answer the question using a straight line depreciation and a 10% interest rate.

The following question requires your selection of CCC/CCE Scenario 17 (4.2.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

Depreciation (in the United States) is calculated in accordance with which of the following?

Options:

A.

Modified Accelerated Cost Recovery System (MACRS)

B.

The Federal IRS Reform Act (FIRSRA)

C.

Generally Accepted Accounting Practices (GAAP)

D.

Accelerated Cost Recovery System (ACRS)

Question 50

An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.

Answer the question using a straight line depreciation and a 10% interest rate.

The following question requires your selection of CCC/CCE Scenario 17 (4.2.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

What is the "book value (BV) of the asset at the end of 5 years?

Options:

A.

$64,000

B.

$16,000

C.

$3,200

D.

$60,000

Question 51

____________ is defined as covering work whose component activities are less defined and whose interrelationships are conditional.

Options:

A.

Soft logic

B.

Hard logic

C.

Deductive logic

D.

Inductive logic

Question 52

A major theme park is expanding the existing facility over a five-year period. The design phase will be completed one year after the contract is awarded. Major engineering drawings will be finalized two years after the design contract is awarded and construction will begin three years after the award of thedesign contract. New, unique ride technology will be used and an estimate will need to be developed to identify these costs that have no historical data.

According to Maslow's hierarchy of needs, giving the employees an award that acknowledges their achievements is most likely to satisfy which level of need?

Options:

A.

Belonging needs

B.

Safety needs

C.

Power needs

D.

Self-actualization

Question 53

A work breakdown structure (WBS) is developed because:

Options:

A.

It avoids omissions of key product activities through a systematic planning process; removes the complexity of the project by dividing it into manageable units; and provides a framework.

B.

It defines specific tasks within a project from which schedules can be developed; it aids in linking activities with resources; it facilitates communication; and it allows integration of project plans

C.

It can be illustrated by individual bars for major phases, such as permitting, funding, engineering, procurement construction, commission/startup

D.

It can be illustrated by a simple bar, with important milestones represented by symbols at the planned time of occurrence

Question 54

An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.

Answer the question using a straight line depreciation and a 10% interest rate.

How much money should be set aside today to have $20,000 available eight (8) years from now if the interest rate is 6% compounded annually?

Options:

A.

$31,875

B.

$12,550

C.

$29,600

D.

$13,515

Question 55

Productivity increases with time. This improvement is commonly associated with improvements in efficiency brought about by increased experience and skill levels. What does this scenario describe?

Options:

A.

Productivity efficiency factor

B.

Value engineering

C.

Cash flow

D.

The learning curve

Question 56

The latest allowable end time minus the earliest allowable end time on a schedule activity is referred to as:

Options:

A.

Total float

B.

Remaining duration

C.

Free float

D.

Just-in-time scheduling

Demo: 56 questions
Total 189 questions