Free Practice Questions for AACE International CCP Exam

Postponed profitsrefer to profits that could not be recognized during a specific financial period because the goods or services did not fully satisfy the customer’s requirements, and thus the revenue could not be recognized according to accounting standards. This situation occurs when revenue recognition criteria have not been met, leading to a delay in recognizing profits. Hence, the correct answer isD. Postponed profits.

Given Scenario:

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.

In targeted marketing, themodeis often the best measure of central tendency because it identifies the most frequently occurring value in a data set. This can be crucial in marketing to determine the most common preferences or behaviors among a target audience, such as the most popular product size, color, or price point. Therefore, the correct answer isB. Mode.

Given Scenario:

Advantages of the Critical Path Method (CPM) are discussed.

TheCritical Path Method (CPM)is primarily used to identify critical activities and to calculate the minimum project duration. While CPM can show slippage and help allocate resources, it does not directly determine cost overruns.

Answer:A. The ability to determine cost overruns of critical path activities

The Budgeted Cost of Work Scheduled (BCWS) is a key concept in project management and cost accounting, particularly in the Earned Value Management (EVM) framework. BCWS represents the cumulative planned costs of work scheduled to be completed up to a specific point in time. It serves as a baseline for measuring performance and comparing actual progress against planned progress.

Explanation of Options:

Option A: Total costs incurred in accomplishing work in a given-time periodThis option is incorrect because BCWS does not represent the actual costs incurred; rather, it reflects the planned or budgeted costs for the work scheduled to be done. The actual costs incurred would be tracked under the Actual Cost of Work Performed (ACWP).

Option B: Baseline for performance measurementThis is a correct description of BCWS. It is used as a baseline to compare the budgeted costs with the actual costs and earned value, enabling performance measurement and variance analysis.

Option C: Sum of the budgets for work scheduledThis is also correct. BCWS is essentially the sum of the budgeted costs for all scheduled work up to a certain date.

Option D: Includes portion of the budget for level-of-effort workThis is correct as well. BCWS can include portions of the budget allocated to level-of-effort (LOE) tasks, which are support tasks that don’t directly contribute to the completion of specific project deliverables but are necessary for the overall project.

Therefore, the correct answer isA, as it inaccurately describes BCWS by confusing it with actual costs incurred, which are instead captured by ACWP.

Acyclical process modelwas chosen as the basis for Total Cost Management (TCM) becausestrategic assets and projects have inherent life cycles. The cyclical nature of TCM allows for continuous improvement and refinement throughout the project’s life, from conception through completion, enabling better management of costs over time. This approach is particularly effective for managing complex projects with evolving requirements, as it aligns with the natural progression of project phases and ensures that estimates, budgets, and schedules are updated regularly to reflect current conditions.

Thelearning curvedescribes the phenomenon where productivity increases with time as workers become more experienced and efficient in their tasks. This improvement is often associated with repetitive tasks where increased familiarity leads to greater speed and reduced errors, thereby enhancing overall productivity. The learning curve is a fundamental concept in project management and operations, as it predicts how labor efficiency improves as a function of cumulative production or time spent on a task. It is an important factor in cost estimation and scheduling as it can lead to reduced labor costs and shorter project timelines.

With the increase in the per unit selling price to $0.55, the new contribution margin per unit becomes:

New Contribution Margin=0.55−0.40=0.15\text{New Contribution Margin} = 0.55 - 0.40 = 0.15New Contribution Margin=0.55−0.40=0.15

The break-even point is then recalculated as:

Break-even units=6,0000.15=40,000 units\text{Break-even units} = \frac{6,000}{0.15} = 40,000 \text{ units}Break-even units=0.156,000​=40,000 units

Thus, based on the new contribution margin, the new break-even amount for sales in units is40,000 units.

Scheduling is the process of assigning resources (such as labor, materials, and equipment) to project activities and determining the timing and sequence of these activities. The term "scheduling" specifically refers to the application of total resources (including workers and support) and the activity durations outlined in a logic diagram. The logic diagram, often depicted as a network or Gantt chart, shows the sequence and dependencies of project activities, enabling planners to establish a timeline for the project.

Option A: Planningis broader and includes not only scheduling but also the development of strategies, policies, and procedures for achieving the project's objectives.

Option B: Forecastinginvolves predicting future project performance based on current data, not directly the application of resources and activity durations.

Option D: Modelingrefers to the creation of representations or simulations of the project, which may include scheduling but is not limited to it.

Thus,C. Schedulingis the correct answer as it accurately describes the application of resources and activity durations within a logic diagram.

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

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

Adjusted Schedule Duration=Original DurationSPI=16 weeks0.80=20 weeks\text{Adjusted Schedule Duration} = \frac{\text{Original Duration}}{\text{SPI}} = \frac{16 \text{ weeks}}{0.80} = 20 \text{ weeks}Adjusted Schedule Duration=SPIOriginal Duration​=0.8016 weeks​=20 weeks

Since 16 weeks have already passed, the project will require4 more weeksto complete. Hence, the correct answer isC. Project will be completed in 4 more weeks.