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

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Total 189 questions
Question 1

The goal of listening is to:



Answer : D

The primary goal of listening is to improve communication. Effective listening ensures that the listener fully understands the speaker's message, which is crucial for effective interaction, problem-solving, and decision-making. By focusing on what the speaker is saying, the listener can respond appropriately, ask relevant questions, and provide feedback that enhances mutual understanding.

Option A (Analyze what the speaker is saying) is part of listening but not the ultimate goal.

Option B (Find out what is going on) is a reason for listening but not the overarching goal.

Option C (Have time to formulate your thoughts on the subject) is a secondary benefit, not the primary objective.


Question 2

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?



Answer : C

When taking over an unfinished schedule, the first task should be to update the remaining duration for each activity. This step is crucial because it provides a current and accurate view of how much work is still needed to complete the project. Once the remaining durations are updated, other calculations, such as recalculating the critical path or early start/finish, will be more accurate. Therefore, the correct answer is C. Update the remaining duration for each activity.


Question 3

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 relative frequency of unit costs from Atlanta, GA?



Answer : B

You need to find the relative frequency of unit costs from Atlanta, GA.

Steps:

Identify the number of bids from Atlanta, GA:

8/31/05: 530 units at $55.00/unit

11/19/04: 308 units at $40.00/unit

1/26/05: 45 units at $26.78/unit

Total number of instances: 3


Question 4

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.

If the company needs to repay a loan of $100,000 in 10 uniform annual payments, how much will each payment be?



Answer : B

To determine the uniform annual payment required to repay a loan, we use the capital recovery factor formula, which is:

A=P(i(1+i)n(1+i)n1)A = P \times \left(\frac{i(1+i)^n}{(1+i)^n-1}\right)A=P((1+i)n1i(1+i)n)

Where:

AAA is the annual payment

PPP is the loan amount ($100,000)

iii is the interest rate per period (10% or 0.10)

nnn is the number of periods (10 years)

Plugging in the values:

A=100,000(0.10(1+0.10)10(1+0.10)101)A = 100,000 \times \left(\frac{0.10(1+0.10)^{10}}{(1+0.10)^{10}-1}\right)A=100,000((1+0.10)1010.10(1+0.10)10)

Calculating this gives:

A16,578A \approx 16,578A16,578

So, the correct answer is B. $16,578.


Question 5

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 30 months, copper prices will have increased by what percentage over today's price?



Answer : C

To calculate the increase in copper prices over 30 months (which is 2.5 years), we apply the inflation rates for the first two years and half of the third year:

Year 1: 1.0%

Year 2: 1.5%

Year 3 (half-year): 1.5% / 2 = 0.75%

The total percentage increase is calculated as:

TotalIncrease=(1+0.01)(1+0.015)(1+0.0075)1\text{Total Increase} = (1 + 0.01) \times (1 + 0.015) \times (1 + 0.0075) - 1TotalIncrease=(1+0.01)(1+0.015)(1+0.0075)1 \text{Total Increase} = 1.01 \times 1.015 \times 1.0075 - 1 \approx 1.066 - 1 = 0.066 \text{ or 6.6%}

So, the correct answer is C. 6.6%.


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.

You are reporting on a roadway project, which was estimated to be 10 miles of road. It was scheduled to be completed in 16 weeks, which is this week. According to your calculations, the project has a schedule performance index of 0.80. What would you advise the management about the scheduled completion date?



Answer : C

The Schedule Performance Index (SPI) is a measure of schedule efficiency and is calculated as:

SPI=EarnedValue(EV)PlannedValue(PV)\text{SPI} = \frac{\text{Earned Value (EV)}}{\text{Planned Value (PV)}}SPI=PlannedValue(PV)EarnedValue(EV)

An SPI of 0.80 indicates that the project is progressing at 80% of the planned rate. To find the total time needed to complete the project:

AdjustedScheduleDuration=OriginalDurationSPI=16weeks0.80=20weeks\text{Adjusted Schedule Duration} = \frac{\text{Original Duration}}{\text{SPI}} = \frac{16 \text{ weeks}}{0.80} = 20 \text{ weeks}AdjustedScheduleDuration=SPIOriginalDuration=0.8016weeks=20weeks

Since 16 weeks have already passed, the project will require 4 more weeks to complete. Hence, the correct answer is C. Project will be completed in 4 more weeks.


Question 7

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%.

Which of the following statements is the more correct guide for the Project Cost engineer as the compiles the data information?



Answer : A

Quantitative data refers to numerical data that can be ordered and ranked, which allows the calculation of measures of central tendency such as means, medians, and modes. Qualitative data, which describes categories or labels, does not allow for such numerical calculations. Thus, the correct answer is A. Only quantitative data can have means, medians, and modes, as these require number rankings.


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