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AACE CCP Exam Questions

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Certified Cost Professional (CCP) Exam

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AACE CCP Practice Test Questions ( Updated) – Real Exam Questions & Dumps PDF

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AACE CCP Sample Questions – Free Practice Test & Real Exam Prep

Question #1

Money is value. Having money when you need it is very important. Money can also be valuable whenused wisely by knowing when to spend and when to conserve Also, planning now for futureexpenses 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 paymentmethod that has a compound amount factor and a present worth factor. There is the uniform annualseries that has a sinking fund factor, capital recovery factor and also the compound amount factorand 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 sideof your split screen, using the drop down menu, to reference during your response/choice ofresponses.If $10,000 is scheduled to be paid out 5 years from now, what is the minimum amount we can investtoday?

  • A. $3,855
  • B. $8,129
  • C. $6,209
  • D. $3,791
Answer: C
Explanation:
Given Scenario:
You need to determine the minimum amount to invest today for a $10,000 payout in 5 years with a
10% interest rate.
Explanation:
The problem requires calculating the present value of a future sum. The present value (PV) is
calculated using the formula:
PV=FV(1+r)nPV = \frac{FV}{(1 + r)^n}PV=(1+r)nFV
where FVFVFV is the future value, rrr is the interest rate, and nnn is the number of years.
FV=10,000FV = 10,000FV=10,000
r=10%=0.10r = 10\% = 0.10r=10%=0.10
n=5n = 5n=5
PV=10,000(1+0.10)5=10,0001.61051≈6,209PV = \frac{10,000}{(1 + 0.10)^5} = \frac{10,000}{1.61051}
\approx 6,209PV=(1+0.10)510,000 =1.6105110,000 ≈6,209 
Question #2

A major theme park is expanding the existing facility over a five-year period. The design phase will becompleted one year after the contract is awarded. Major engineering drawings will be finalized twoyears after the design contract is awarded and construction will begin three years after the award ofthe design contract. New, unique ride technology will be used and an estimate will need to bedeveloped 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 ofthe day
  • C. Remove underground hazards prior to excavation work 
  • D. Replacing old excavators with new, larger excavators 
Answer: A
Explanation:
Using apprentice operators to save labor costs is 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. Using apprentice operators to save labor costs. 
Question #3

A major theme park is expanding the existing facility over a five-year period. The design phase will becompleted one year after the contract is awarded. Major engineering drawings will be finalized twoyears after the design contract is awarded and construction will begin three years after the award ofthe design contract. New, unique ride technology will be used and an estimate will need to bedeveloped to identify these costs that have no historical data.The recognition of loss of value of a natural resource used in the production process is referred to as:

  • A. Capital reduction
  • B. Net loss
  • C. Depreciation
  • D. Depletion
Answer: D
Explanation:
Depletion is the accounting term used to recognize the loss of value of a natural resource as it is
extracted and used in the production process. It is similar to depreciation but specifically applies to
natural resources, such as minerals, oil, or timber. Depreciation applies to tangible fixed assets like
machinery, while depletion is used for natural resources. The correct answer is D. Depletion. 
Question #4

A major theme park is expanding the existing facility over a five-year period. The design phase will becompleted one year after the contract is awarded. Major engineering drawings will be finalized twoyears after the design contract is awarded and construction will begin three years after the award ofthe design contract. New, unique ride technology will be used and an estimate will need to bedeveloped to identify these costs that have no historical data.Profits that could not be formally recognized during a specific financial accounting period becausethe goods and services did not satisfy all the customer's requirements are: 

  • A. Marginal profits
  • B. Lost profits
  • C. Incurred profits
  • D. Postponed profits
Answer: D
Explanation:
Postponed profits refer 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 is D. Postponed profits.
Question #5

A major theme park is expanding the existing facility over a five-year period. The design phase will becompleted one year after the contract is awarded. Major engineering drawings will be finalized twoyears after the design contract is awarded and construction will begin three years after the award ofthe design contract. New, unique ride technology will be used and an estimate will need to bedeveloped to identify these costs that have no historical data.The project scheduler left the company and has left unfinished work. You have been hired as the newproject scheduler and must update the existing schedule. What will be your first task?

  • A. Recalculate the early finish for each activity
  • B. Recalculate the early start for each activity
  • C. Update the remaining duration for each activity
  • D. Recalculate the critical path
Answer: C
Explanation:
When taking over an unfinished schedule, the first task should be to update the remaining duration
for each activity. This step is crucial because it provides a current and accurate view of how much
work is still needed to complete the project. Once the remaining durations are updated, other
calculations, such as recalculating the critical path or early start/finish, will be more accurate.
Therefore, the correct answer is C. Update the remaining duration for each activity. 
Question #6

A major theme park is expanding the existing facility over a five-year period. The design phase will becompleted one year after the contract is awarded. Major engineering drawings will be finalized twoyears after the design contract is awarded and construction will begin three years after the award ofthe design contract. New, unique ride technology will be used and an estimate will need to bedeveloped to identify these costs that have no historical data.You are reporting on a roadway project, which was estimated to be 10 miles of road. It was scheduledto be completed in 16 weeks, which is this week. According to your calculations, the project has aschedule performance index of 0.80. What would you advise the management about the scheduledcompletion date?

  • A. Project will be completed in 20 more weeks
  • B. Project will be completed this week - on schedule
  • C. Project will be completed in 4 more weeks
  • D. Project will be completed in 12.8 more weeks 
Answer: C 
Explanation:
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 require 4 more weeks to complete. Hence, the
correct answer is C. Project will be completed in 4 more weeks. 
Question #7

A major theme park is expanding the existing facility over a five-year period. The design phase will becompleted one year after the contract is awarded. Major engineering drawings will be finalized twoyears after the design contract is awarded and construction will begin three years after the award ofthe design contract. New, unique ride technology will be used and an estimate will need to bedeveloped to identify these costs that have no historical data.The following is NOT an advantage of the critical path method: 

  • A. The ability to determine cost overruns of critical path activities 
  • B. The ability to identify activities that cannot have their schedules slip if the desired project end dateis to be achieved
  • C. Reveals activities that additional resources need to be dedicated toward 
  • D. The ability to show slippage in the progress of key activities 
Answer: A
Explanation:
Given Scenario:
Advantages of the Critical Path Method (CPM) are discussed.
Explanation:
The Critical 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
Explanation:
Question #8

A major theme park is expanding the existing facility over a five-year period. The design phase will becompleted one year after the contract is awarded. Major engineering drawings will be finalized twoyears after the design contract is awarded and construction will begin three years after the award ofthe design contract. New, unique ride technology will be used and an estimate will need to bedeveloped to identify these costs that have no historical data.Resource planning must take all of the following into account except: 

  • A. Types of materials, equipment and labor skills required to complete the project
  • B. Cash flow (expenditures) limitations for completing work on the project
  • C. Time available to complete the project
  • D. Earned value techniques established for the project 
Answer: D
Explanation:
Given Scenario:
Factors for resource planning are being considered.
Explanation:
Resource planning typically involves considering materials, labor, equipment, and time constraints.
Earned Value Techniques are related to project performance measurement and control rather than 
direct resource planning.
Answer : D. Earned value techniques established for the project 
Question #9

A major theme park is expanding the existing facility over a five-year period. The design phase will becompleted one year after the contract is awarded. Major engineering drawings will be finalized twoyears after the design contract is awarded and construction will begin three years after the award ofthe design contract. New, unique ride technology will be used and an estimate will need to bedeveloped to identify these costs that have no historical data.Which of the following methods a used for creating critical path schedules: 

  • A. Precedence diagram method
  • B. Precedence and arrow diagram methods only
  • C. Gantt chart (bar chart) method
  • D. Arrow diagram method
Answer: B
Explanation:
Given Scenario:
Methods for creating critical path schedules are inquired.
Explanation:
The Precedence Diagramming Method (PDM) and Arrow Diagramming Method (ADM) are commonly
used for critical path schedules. The Gantt chart, while useful for visualizing schedules, does not
inherently calculate the critical path.
Question #10

A major theme park is expanding the existing facility over a five-year period. The design phase will becompleted one year after the contract is awarded. Major engineering drawings will be finalized twoyears after the design contract is awarded and construction will begin three years after the award ofthe design contract. New, unique ride technology will be used and an estimate will need to bedeveloped to identify these costs that have no historical data.The latest allowable end time minus the earliest allowable end time on a schedule activity is referredto as:

  • A. Activity total slack
  • B. Remaining duration
  • C. Just-in-time" scheduling
  • D. Free float
Answer: A
Explanation:
Given Scenario:
The difference between the latest allowable end time and the earliest allowable end time of a
schedule activity is inquired.
Explanation:
This difference is referred to as Total Slack or Total Float. It indicates the amount of time that a
project task can be delayed without affecting the overall project schedule.
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