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AACE International Certified Cost Professional (CCP) CCP Exam Questions
Question 1
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?
Answer : A
An employee is leaving due to a lack of teamwork and cohesion among co-workers.
Maslow's Hierarchy of Needs:
The need for teamwork and cohesion is related to Belongingness needs, which include the desire for social connections and feeling part of a group or community.
Question 2
What is executed in connection with a contract and secures the performance and fulfillment of all the undertakings, covenants, terms, conditions and agreements contained in the contract?
Answer : B
A Performance Bond is a type of surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. In connection with a contract, a performance bond secures the performance and fulfillment of all the undertakings, covenants, terms, conditions, and agreements contained in the contract. This ensures that if the contractor fails to complete the project as per the contract, the owner is compensated by the bond issuer for the financial losses incurred. This bond is crucial in construction and large projects to protect the client against the risk of contractor default.
Question 3
Which of the following are used for profitability analysis in a construction company?
Answer : B
In a construction company, profitability analysis typically involves calculating the Return on Investment (ROI) and Rate of Return (ROR). ROI measures the profitability of an investment by comparing the gain from the investment to its cost, while ROR calculates the percentage return on each dollar invested. These metrics are critical in determining the financial performance and efficiency of investments in the construction industry.
Question 4
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.
All of the following are included in "income tax" calculations except:
Answer : D
Given Scenario:
The question asks which of the following is not included in income tax calculations.
Income tax calculations typically include annual income, annual expenditures, and depreciation. The initial cost of investment is not directly included in income tax calculations but is used for calculating depreciation.
Question 5
_____________is defined as the budget for the cost (work) account times the percent complete for that account.
Answer : D
Earned Value (EV) is a key concept in project management, particularly in cost management and performance measurement. It is defined as the budgeted amount for the work actually completed by a specific point in time. This is calculated as the budget for the cost (work) account multiplied by the percentage of completion for that account.
For example, if a work package has a total budget of $100,000 and is 50% complete, the earned value for that work package would be $50,000. EV is essential in performance measurement because it allows project managers to assess how much of the planned work has been completed at a certain cost, providing a clear indicator of project progress and efficiency.
Question 6
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.
According to Maslow's hierarchy of needs, which level should be satisfied first?
Answer : A
According to Maslow's hierarchy of needs, the first level that should be satisfied is Physiological needs. These are the basic needs necessary for human survival, such as food, water, and shelter. Maslow's hierarchy is a motivational theory in psychology that comprises a five-tier model of human needs, often depicted as hierarchical levels within a pyramid. The basic idea is that the most fundamental level of needs must be met before an individual can attend to higher-level needs such as safety, love/belonging, esteem, and self-actualization.
Question 7
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?
Answer : D
Based on the capital recovery analysis and considering the salvage value and the cost of capital, if the calculated capital recovery value is favorable and meets the investment criteria, the correct conclusion is that the press should be purchased. Thus, the correct answer is D. Yes.
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