Top AACE International CCP Courses Online - Updated [Nov-2024]

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NEW QUESTION # 44
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 4, the commodity which experienced the greatest projected percentage price index increase over today is:

• A. Steel
• B. Manufacturing labor
• C. None of the above
• D. Copper

Answer: A

Explanation:
Look at the projected cumulative inflation rates.
Steps:
Manufacturing Labor cumulative inflation over 4 years is the highest as per the table:
2.5% + 3.0% + 3.5% = 9.0%
Compare this with the inflation rates of Steel and Copper:
Steel = 2.5% + 2.5% + 3.0% + 2.0% = 10%
Copper = 1.0% + 1.5% + 2.0% + 2.5% = 7%
Thus, Steel has the greatest projected price index increase over the 4 years.
Answer : C . Steel

NEW QUESTION # 45
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 recognition of loss of value of a natural resource used in the production process is referred to as:

• A. Depletion
• B. Depreciation
• C. Capital reduction
• D. Net loss

Answer: A

Explanation:
Depletion is the accounting term used to recognize the loss of value of a natural resource as it is extracted and used in the production process. It is similar to depreciation but specifically applies to natural resources, such as minerals, oil, or timber. Depreciation applies to tangible fixed assets like machinery, while depletion is used for natural resources. The correct answer is D. Depletion.

NEW QUESTION # 46
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.
Fred Fiedler's contingency model suggests that:

• A. Successful leadership can always be imposed by experienced supervision
• B. between the style of the leader and the demands of the situation
• C. Leadership styles are just the opposite of the managerial grid model
• D. Successful leadership depends upon a good match
• E. A relationship oriented leader described the least preferred worker in an unfavorable light

Answer: B

NEW QUESTION # 47
Which of the following is NOT a type of float?

• A. Total
• B. Negative
• C. Open end
• D. Free

Answer: C

NEW QUESTION # 48
Cost performance index (CPI) is defined by AACE International as: (assume no change in budgeted quantities)

• A. ACWP/BCWS
• B. ACWP/BCWP
• C. BCWP/ACWP
• D. BCWS/BCWP

Answer: C

Explanation:
The Cost Performance Index (CPI) is a crucial metric in project management, particularly within the realm of cost control. According to the Association for the Advancement of Cost Engineering (AACE) International, the CPI is calculated as:
CPI = BCWP / ACWP
Where:
BCWP (Budgeted Cost of Work Performed): Also known as Earned Value (EV), BCWP represents the budgeted cost for the work that has actually been completed by a specific point in time.
ACWP (Actual Cost of Work Performed): This is the actual cost incurred for the work completed by that same point in time.
The CPI is an index that measures the cost efficiency of budgeted resources for a project. A CPI of 1.0 indicates that the project is on budget, as the actual cost matches the earned value. A CPI greater than 1.0 suggests that the project is performing well in terms of cost (i.e., it is under budget), while a CPI less than 1.0 indicates that the project is over budget.
This metric is vital in cost estimating and control, as it provides project managers with a quantifiable indicator of cost performance, helping them make informed decisions to maintain or correct the project's financial trajectory.

NEW QUESTION # 49

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 estimated quantities?

• A. $26.78 to $75.00
• B. $48.22
• C. $485
• D. $45 to $530

Answer: D

NEW QUESTION # 50
Budgeted cost of work scheduled is all of the following except:

• A. Sum of the budgets for work scheduled
• B. Includes portion of the budget for level-of-effort work
• C. Total costs incurred in accomplishing work in a given-time period
• D. Baseline for performance measurement

Answer: B

NEW QUESTION # 51
A bond that guarantees the bidder will enter into a contract on the basis of his/her bid is referred to as:

• A. Liability bond
• B. Performance bond
• C. Bid bond
• D. Surety bond

Answer: C

Explanation:
A bid bond is a type of surety bond that guarantees the bidder will enter into a contract on the basis of their bid if they are awarded the contract. The purpose of a bid bond is to provide a financial guarantee to the project owner that the bidder will honor their bid and execute the contract at the bid price. If the bidder fails to do so, the bid bond compensates the owner for the difference between the bidder's price and the next lowest bid.
Option A: Surety bond is a broader category of bonds that includes bid bonds but is not specific to the bid guarantee.
Option B: Performance bond guarantees the completion of the project according to the contract terms but is issued after the bid is accepted.
Option D: Liability bond is related to covering legal liabilities, not bidding.
Thus, C. Bid bond is the correct answer as it specifically refers to the guarantee provided during the bidding process.

NEW QUESTION # 52
The process of stating goals and determining the most effective way of reaching them is the definition for:

• A. Implementing
• B. Mission Statement
• C. Managing
• D. Planning

Answer: D

NEW QUESTION # 53
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 main financial objective of many enterprises is:

• A. Subject to a well-conceived quality control plan
• B. To maximize the total long-term economic return
• C. To balance opportunities and risks
• D. Dependent on the backlog projects and the availability of resources

Answer: B

NEW QUESTION # 54
A _________contract allows the contractor to freely employ whatever methods and resources it chooses in order to complete the work.

• A. Lump-sum/Fixed price
• B. Guaranteed maximum price
• C. Cost reimbursable/Fixed fee
• D. Measured unit price

Answer: A

Explanation:
In a Lump-Sum/Fixed-Price contract, the contractor agrees to complete the work for a set price, regardless of the actual costs incurred. This type of contract is often used when the project scope is well-defined, and the contractor has the freedom to choose methods and resources to complete the work within the agreed price.
Key Points:
Lump-Sum/Fixed-Price Contract:
The contractor has full responsibility for carrying out the project within the agreed-upon price.
The contractor is incentivized to control costs and manage resources efficiently because any cost overruns will reduce their profit margin.
Other Contract Types:
Guaranteed Maximum Price (GMP): The contractor is reimbursed for costs up to a maximum limit. Any costs above this limit are the contractor's responsibility.
Cost Reimbursable/Fixed Fee: The contractor is reimbursed for actual costs incurred, plus an additional fee, which might be a fixed amount or a percentage of the costs.
Measured Unit Price: Payment is made based on the actual quantity of work completed, with predefined rates for each unit.
Conclusion: The correct answer is D. Lump-sum/Fixed price as this contract type gives the contractor the freedom to choose their methods and resources to complete the project, with a focus on efficiency to maximize profit within the fixed price.

NEW QUESTION # 55
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.
Five years from now it is required the company have $100,000. How much money should be invested at the end of each year to reach this?

• A. $13,168
• B. $15,397
• C. $15,937
• D. $16,380

Answer: D

NEW QUESTION # 56
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?

• A. The learning curve
• B. Productivity efficiency factor
• C. Cash flow
• D. Value engineering

Answer: A

NEW QUESTION # 57
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 return on investment at the end of the fifth year would be:

• A. Less than 10%
• B. Unknown
• C. Equal to 10%
• D. Greater than 10%

Answer: D

Explanation:
To calculate the return on investment (ROI) at the end of the fifth year, you consider the increase in income and the depreciation.
Depreciation per year:
Depreciation=Initial CostLife=125,0005=25,000\text{Depreciation} = \frac{\text{Initial Cost}}{\text{Life}} = \frac{125,000}{5} = 25,000Depreciation=LifeInitial Cost​=5125,000​=25,000 Given the income increase and cost increase, over five years, it's expected that the compounded growth and tax benefits through straight-line depreciation should yield a return greater than the required 10%. Therefore, the correct answer is A. Greater than 10%.

NEW QUESTION # 58
Any combination of unique letters, numbers, or blanks, which describes and identifies any activity or task shown on the schedule, is:

• A. WBS Code
• B. Activity ID
• C. Resource
• D. Account number

Answer: B

NEW QUESTION # 59
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