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AACE International Certified Cost Professional (CCP) Exam Sample Questions (Q31-Q36):

NEW QUESTION # 31
What relationship more accurately defines a situation model of parallel activities that require a partial start of one activity?

A. Start to start
B. Star to finish
C. Finish to start
D. Finish to finish

Answer: A

Explanation:
In project management, the relationship that defines a situation where one activity can partially start as another activity starts is known as Start to Start. This type of dependency is used when two activities need to begin at the same time or when one activity can start before the other finishes but cannot finish before the first activity starts.

NEW QUESTION # 32
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. Account number
C. Activity ID
D. Resource

Answer: C

NEW QUESTION # 33
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)?

A. ACWP-BCWP = 110,000-105,000 = 5,000
B. ACWP-BCWS = 110,000-100,000 = -10,000
C. BCWP-ACWP = 105,000-110,000 = -5,000
D. BCWS-ACWP = 100,000-110,000 = -10,000

Answer: C

Explanation:
Cost Variance (CV) is an EVM metric that indicates whether the project is under or over budget by comparing the earned value to the actual cost.
Key Points:
CV Formula:
CV = BCWP - ACWP
BCWP = 105,000 work hours
ACWP = 110,000 work hours
Calculation:
CV = 105,000 - 110,000 = -5,000 work hours
Interpretation:
A negative CV indicates that the project is over budget, as more work hours were paid for than were earned.
Conclusion: The correct answer is A. BCWP-ACWP = 105,000-110,000 = -5,000 because this calculation accurately reflects the cost variance of the project.

NEW QUESTION # 34
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?

A. $16,273
B. $15,687
C. $12,550
D. $9,412

Answer: A

NEW QUESTION # 35
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 $50 was invested at 6.0% on January 1, year 1, what would be the value of year-end withdrawals made in equal amounts each year for 10 years and leaving nothing in the fund after the tenth withdrawal?

A. $6.80
B. $5.35
C. $3.10
D. $2.22

Answer: B

Explanation:
To find the value of equal year-end withdrawals made for 10 years with an initial investment of $50 at 6% interest, you use the annuity formula:
A=PV×i×(1+i)n(1+i)n-1A = rac{PV imes i imes (1 + i)