AACE International AACE-CCP Online Practice Questions and Exam Preparation

AACE International AACE-CCP Online Questions & Answers

• Question 1:

  When the project plan is implemented:

  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
  A. Activities are carefully monitored and controlled against the baseline

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  explanation:

  When a project plan is implemented, one of the primary objectives is to ensure that all activities are executed according to the plan. This involvesmonitoring and controllingactivities against the project baseline, which is the original plan plus any approved changes. Monitoring and control are critical processes in project management that involve tracking the progress of the project, identifying variances from the plan, and taking corrective actions when necessary.

  Key Points:

  Monitoring and Controlling:

  Activities are monitored against the project baseline to ensure they are on track in terms of scope, time, and cost.

  Control mechanisms are implemented to correct any deviations from the baseline, ensuring that the project objectives are met.

  Other Options:

  Formalizing Payment Applications:This is related to the financial aspect but not directly linked to the overall project monitoring and control.

  Forward and Backward Pass:These are scheduling techniques used during the planning phase, not during the implementation phase.

  CPI and SPI Calculation:These are performance metrics calculated during the project, but they are part of the monitoring and control process.

  Conclusion:The correct answer isA. Activities are carefully monitored and controlled against the baseline because this is the primary focus during the implementation phase of the project plan.

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

  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
  A. Using apprentice operators to save labor costs

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  explanation:

  Using apprentice operators to save labor costsis the least likely to improve a large earthmoving contractor's productivity. While it may reduce labor costs, apprentice operators are generally less experienced and less efficient than seasoned operators, which could lead to lower productivity and potentially higher costs due to mistakes or slower work. In contrast, options B, C, and D are all strategies that could directly improve productivity by optimizing working conditions or using more efficient equipment.

  Hence, the correct answer is A

• Question 3:

  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 calculations would not be needed to determine "net income?'

  A. Depreciation
  B. Taxes
  C. Present value
  D. Income before taxes
  C. Present value

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  explanation:

  To determine "net income," the calculations typically needed include Depreciation, Taxes, and Income Before Taxes.Present Valuecalculations are typically used in capital budgeting to assess the value of future cash flows today, not directly in the calculation of net income. Net income is determined by subtracting expenses, including depreciation and taxes, from revenues, but present value calculations would not be directly involved in this particular income calculation.

• Question 4:

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

  A. Optimization
  B. Net Present Worth
  C. Equivalent Uniform Annual Value
  D. Future Worth
  C. Equivalent Uniform Annual Value

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  explanation:

  When comparing two alternatives with different useful lives, the most appropriate method is to use theEquivalent Uniform Annual Value (EUAV). This method converts the net present worth (NPW) or the total cost of each alternative into an equivalent uniform annual cost or value over their respectivelives. By converting the costs into a common annual value, it allows for a straightforward comparison between alternatives with differing lifespans, ensuring that all costs (including maintenance, operation, and initial costs) are considered over a consistent time period.

• Question 5:

  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?

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

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  explanation:

  APerformance Bondis 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 asper 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 6:

  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?

  

  A. Option A
  B. Option B
  C. Option C
  D. Option D
  D. Option D

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  explanation:

  The question involves selecting the correct formula for present worth calculations.

  The present worth (or present value) formula is typically represented by: PV=FV(1+i)nPV = \frac{FV} {(1 + i)^n}PV=(1+i)nFV which is equivalent to Option D.

• Question 7:

  A small hole construction project has a baseline budget of $1,000,000. The project is scheduled to be constructed in 12 months. At the and of the first month, the project data is reported as below:

  

  The following question requires your selection of Scenario 1.4.162 from the right side of your split screen, using the drop down menu, to reference during your response/choice of response. The budgeted cost work performed is:

  A. $90,000
  B. $100,000
  C. $95,000
  D. $108,000
  A. $90,000

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  explanation:

  In this problem, the key is to determine theBudgeted Cost of Work Performed (BCWP), which refers to the portion of the budget allocated for the completed work as of a particular point in time. The BCWP is also known as theEarned Value (EV). It is a critical measure in project management, particularly in the Earned Value Management (EVM) system, as it allows for a comparison between the planned progress and the actual progress of the project. Given: Baseline budget (Total Planned Budget

  or BAC):$1,000,000 Project duration:12 months Budgeted Cost of Work Scheduled (BCWS) for the first month:$108,000 Actual Cost of Work Performed (ACWP) for the first month:$100,000 Total physical progress:9% Steps to determine the BCWP:

  Calculate the Planned Value (PV):

  This is the value of the work planned to be completed by a specific time. Here, PV for the first month is $108,000.

  Determine the Actual Cost (AC):

  The AC is the cost incurred for the actual work performed, which is $100,000 in this case.

  Calculate the Earned Value (EV) or BCWP:

  BCWP is calculated by multiplying the total physical progress by the Budget at Completion (BAC).

  Given that the physical progress is 9%, the BCWP can be computed as:

  BCWP=Physical.Progress譈AC\text{BCWP} = \text{Physical Progress} \times \text{BAC} BCWP=Physical.Progress譈AC BCWP=0.09?,000,000=$90,000\text{BCWP} = 0.09 \times 1,000,000 = \$90,000BCWP=0.09?,000,000=$90,000

  Conclusion:

  The Budgeted Cost of Work Performed (BCWP) for this project at the end of the first month is$90,000, which matches option A. This calculation is critical in project management for determininghow much of the budgeted work has been actually completed, enabling accurate performance assessment against the project baseline.

• Question 8:

  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?

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

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  explanation:

  The design phase is in the preliminary stages and involves new ride technology with no historical data available.

  Steps:

  Determine which class of estimate is used in this context.

  A Class 5 estimate, which is an order of magnitude estimate with +50%/-30% accuracy, is

  typically used for projects in the early design or concept stages where detailed data is unavailable. Answer:A. Class 5 - order of magnitude estimate with +50% / -30% accuracy

• 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%.

  A good description of quantitative data would be as follows:

  A. There is no difference between Qualitative data and Quantitative data
  B. Quantitative data can be categorized or summarized.
  C. Quantitative data can be described graphically or numerically.
  D. Quantitative data is a subset of data randomly selected from a population; the size of a sample is usually denoted by n.
  C. Quantitative data can be described graphically or numerically.

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  explanation:

  Quantitative datarefers to data that can be measured and expressed numerically. This type of data is often described using statistical methods, graphs, charts, and numerical summaries. It is distinct from qualitative data, which is descriptive and categorical. Thus, the most accurate description is thatQuantitative data can be described graphically or numerically.

• Question 10:

  Two of the most important things to know when planning a speech or lecture are the ______________and______________ of your audience.

  A. Motivation, professionalism
  B. Background, attitude
  C. Political preference, sense of humor
  D. Culture, understanding
  B. Background, attitude

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  explanation:

  When planning a speech or lecture, two of the most critical aspects to consider are thebackgroundandattitudeof your audience. Understanding the background of the audience helps tailor the content to their level of knowledge, ensuring that the material is neither too advanced nor too basic. Attitude reflects how the audience might react to the content, allowing the speaker to adjust the delivery style and engage the audience more effectively. These factors significantly influence how well the message is received and understood.