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AACE International Certified Cost Professional (CCP) Exam Sample Questions (Q186-Q191):

NEW QUESTION # 186
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?

A. Some graphic methods tor describing qualitative data are range variance and
B. Only quantitative data can have means, medians and modes, as these require number rankings.
C. There is no difference between quantitative data, qualitative data and histogram data except in the manner in which it is presented.

Answer: B

Explanation:
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.

NEW QUESTION # 187
Some of the principles of good communication are:

A. Tell the other person what to do; give insincere praise; psychoanalyze the other person; make light of a serious problem; do not gain the trust of anyone; always have a hidden agenda
B. Seek to clarify your ideas before communicating; examine the true purpose of each communication; consider the total physical and human setting whenever you communicate; be mindful, while you communicate, of the overtones as well as the basic content of the message
C. The social process by which people in a specific situation construct meaning using symbolic behavior
D. Use short words; avoid jargon; avoid acronyms and abbreviations; use complete sentences; have a beginning, middle and end; be accurate; be interested in what topic is being communicated

Answer: D

NEW QUESTION # 188
A bond that guarantees the bidder will enter into a contract on the basis of his/her bid is referred to as:

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

Answer: D

NEW QUESTION # 189
You have been hired as the cost engineer for a mechanical contractor and have been provided the following information:

What is the schedule performance index (SPI)?

A. ACWP/BCWS= 110,000/100,000= 1.10
B. BCWS/ACWP = 100,000/110,000 = 0.91
C. BCWS/BCWP= 100,000/105,000-0.95
D. BCWP/BCWS = 105,000/100,000- 1.05

Answer: D

Explanation:
The Schedule Performance Index (SPI) is a key metric in Earned Value Management that measures how efficiently time is being used on a project.
Key Points:
SPI Calculation:
SPI = BCWP / BCWS
BCWP (Budgeted Cost of Work Performed) = $105,000
BCWS (Budgeted Cost of Work Scheduled) = $100,000
SPI = 105,000 / 100,000 = 1.05
Interpreting SPI:
An SPI greater than 1 indicates the project is ahead of schedule.
Conclusion: The correct answer is C. BCWP/BCWS = 105,000/100,000 = 1.05 because this accurately reflects the schedule performance index for the project.

NEW QUESTION # 190
You are analyzing historic unit costs for 18'' Class 5 reinforced concrete pipe is a database. The unit costs include all costs-material, labor, equipment, and other, for the excavation, bedding, pipe and backfill. Refer to the following table:

What is the median unit cost?

A. $48.35
B. $46.59
C. $48.22
D. $40.00

Answer: D

Explanation:
The median cost is found by ordering the unit costs and selecting the middle value. The ordered costs are:
$26.78, $34.50, $37.30, $40.00, $46.59, $55.00, $55.00, $65.00, $75.00
Since there are nine data points, the fifth value in this list is the median:
C . $40.00 is the median unit cost.

NEW QUESTION # 191
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