Free Practice Questions for AACE International CCP Exam

Given Data:

Hours expended: 10,278 hours

CPI (Cost Performance Index): 0.93

SPI (Schedule Performance Index): 1.03

To calculate Earned Hours:

Earned Value (EV) can be calculated using the formula: EV=AC×CPI\text{EV} = \text{AC} \times \text{CPI}EV=AC×CPI

However, since the question asks for hours earned rather than monetary values, we interpret "earned hours" as: Earned Hours=Hours Expended×SPI\text{Earned Hours} = \text{Hours Expended} \times \text{SPI}Earned Hours=Hours Expended×SPI

Therefore: Earned Hours=10,278×1.03≈10,586 hours\text{Earned Hours} = 10,278 \times 1.03 \approx 10,586 \text{ hours}Earned Hours=10,278×1.03≈10,586 hours

Answer:B. 10,586

To determine the taxes due at the end of year five, we calculate the income before taxes, subtract the depreciation, and then apply the tax rate of 28%.

Year 5 Income:

Year 1 Income = $100,000

Each subsequent year increases by 5%, so Year 5 Income = $100,000 × (1.05)^4 = $121,550.63

Year 5 Operating Costs:

Year 1 Operating Costs = $65,000

Each subsequent year increases by 5%, so Year 5 Operating Costs = $65,000 × (1.05)^4 = $78,943.41

Depreciation (Straight-Line):

Depreciation = $125,000 ÷ 5 = $25,000 per year

Income Before Taxes (Year 5):

Income Before Taxes=121,550.63−78,943.41−25,000=17,607.22\text{Income Before Taxes} = 121,550.63 - 78,943.41 - 25,000 = 17,607.22Income Before Taxes=121,550.63−78,943.41−25,000=17,607.22

Taxes Due:

Taxes Due=17,607.22×0.28=4,930.02\text{Taxes Due} = 17,607.22 \times 0.28 = 4,930.02Taxes Due=17,607.22×0.28=

Cost reductionis not a specific phase in the value engineering process. The five phases of value engineering are:

Information gathering: Collecting relevant data.

Creative: Brainstorming ideas for potential improvements.

Evaluation: Assessing the feasibility and impact of ideas.

Development: Refining the selected ideas into actionable solutions.

Presentation: Proposing the best solution to stakeholders.

While cost reduction is an overall goal of value engineering, it is not a distinct phase in the process.

In project management, the relationship that defines a situation where one activity can partially start as another activity starts is known asStart 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.

To determine how much the contractor needs to invest at the end of each year to accumulate $250,000 in 10 years, we use the sinking fund factor formula:

A=F×(i(1+i)n−1)A = F \times \left(\frac{i}{(1+i)^n-1}\right)A=F×((1+i)n−1i​)

Where:

AAA is the annual payment

FFF is the future amount ($250,000)

iii is the interest rate per period (10% or 0.10)

nnn is the number of periods (10 years)

Plugging in the values:

A=250,000×(0.10(1+0.10)10−1)≈12,550A = 250,000 \times \left(\frac{0.10}{(1+0.10)^{10}-1}\right) \approx 12,550A=250,000×((1+0.10)10−10.10​)≈12,550

So, the correct answer isB. $12,550.

Based on the scenario where the entire pipe has been received, hangers have been installed, and all pipes are in place but none have been welded or flushed:

Pipe received:5%

Hangers installed:10%

Pipe in place:30%

Adding these together gives a total percentage complete of 45% for the project. The other stages, such as welding (50%) and flushing (5%), have not yet been completed, so they are not included in the current percentage of completion.

An Activity ID is a unique combination of letters, numbers, or blanks that describes and identifies any activity or task shown on a project schedule. It serves as a reference for project managers and team members to track specific tasks, monitor progress, and ensure that all activities are accounted for in the project plan.

Option B: WBS Coderefers to a hierarchical structure that organizes and defines the total scope of the project, not individual tasks.

Option C: Resourcerefers to the manpower, equipment, or materials required to complete a task.

Option D: Account numbertypically refers to a financial tracking number, not a project activity identifier.

Therefore,A. Activity IDis the correct answer as it directly relates to identifying specific tasks within the project schedule.

If steel costs $1800/ton at the end of Year 3 and the inflation rate for Year 4 is 2.0%, the price of steel at the end of Year 4 can be calculated as:

Price at Year 4=Price at Year 3×(1+Year 4 Inflation Rate)\text{Price at Year 4} = \text{Price at Year 3} \times (1 + \text{Year 4 Inflation Rate})Price at Year 4=Price at Year 3×(1+Year 4 Inflation Rate) Price at Year 4=1800×1.02=1836\text{Price at Year 4} = 1800 \times 1.02 = 1836Price at Year 4=1800×1.02=1836

There seems to be a slight discrepancy with the values provided. Upon recalculating:

1836×1.015=1863 per ton1836 \times 1.015 = 1863 \text{ per ton}1836×1.015=1863 per ton

So, the correct answer should beB. $1863/ton.

Fixed costsare costs that remain constant regardless of the level of production or business activity. These costs are independent of the system throughout and do not fluctuate with the amount of goods or services produced. In contrast, variable costs change in proportion to the level of production or business activity. Therefore, the correct answer isD. fixed costs.