AACE International CCP Certified Cost Professional (CCP) Exam Practice Test

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Total 189 questions
Question 1

The measure of number of units completed divided by work-hours consumed is referred to as:



Answer : C

Productivity is defined as the measure of the number of units completed divided by the work-hours consumed. It is a key performance indicator in construction and other project-based industries, reflecting how efficiently resources are being used to produce outputs.

Key Points:

Productivity Calculation:

Productivity = Number of units completed / Work-hours consumed.

Higher productivity means more output is being generated per unit of time, indicating efficient use of resources.

Other Terms:

Lined Value: Not a standard term related to productivity.

Credit Work-Hours: A concept related to earned work-hours, not a direct measure of productivity.

Cost Performance Index (CPI): A measure in earned value management indicating the cost efficiency of budgeted resources, calculated as EV/AC.

Conclusion: The correct answer is C. Productivity because it directly refers to the efficiency of labor in terms of output per work-hour.


Question 2

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%.

Assuming the average life span of a lithium battery is two years and is normally distributed with a standard deviation of two months, what is the probability the battery will last between 20 months and 26 months?



Answer : D

Given that the average life span of the lithium battery is 24 months with a standard deviation of 2 months, we need to calculate the probability that the battery will last between 20 and 26 months.

Using the Z-score formula:

Z=XZ = \frac{X - \mu}{\sigma}Z=X

For 20 months: Z=20242=2Z = \frac{20 - 24}{2} = -2Z=22024=2

For 26 months: Z=26242=1Z = \frac{26 - 24}{2} = 1Z=22624=1

Looking up these Z-scores in the standard normal distribution table:

Z = -2 corresponds to approximately 2.28%

Z = 1 corresponds to approximately 84.13%

The probability that the battery will last between 20 and 26 months is approximately 84%.


Question 3

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%.

All of the following are characteristics of standard normal distribution, except:



Answer : A

The statement that the 'means and median are not equal' is incorrect for a standard normal distribution. In a standard normal distribution, the mean, median, and mode are all equal, as the distribution is perfectly symmetrical. The correct characteristics of a standard normal distribution are that approximately 68% of the values fall within one standard deviation of the mean, the total area under the curve is 1, and the curve shape is symmetrical.


Question 4

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%.

What Kind of optimization modeling is used in making investment analysis to evaluate the risks associated with the potential investment?



Answer : D

Monte Carlo Simulation is commonly used in investment analysis to evaluate risks associated with potential investments. This method involves running multiple simulations to predict the range of possible outcomes based on varying inputs and assumptions. In the context of investment, Monte Carlo simulations help in assessing the uncertainty and volatility of returns by simulating various scenarios of cash flows, costs, and economic conditions, making it an ideal tool for risk evaluation.


Question 5

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%.

Is a rise in the price level of a good or service, or market basket of goods and/or services.



Answer : D

Inflation is defined as a rise in the price level of goods or services, or a market basket of goods and/or services, over time. This term specifically refers to the general increase in prices and the corresponding decrease in the purchasing value of money. Therefore, the correct answer is D. inflation.

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Question 6

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 correct?



Answer : C

Histograms and frequency distributions are common graphical methods used to describe quantitative data, which involves numerical values that can be measured. These methods help visualize the distribution, frequency, and central tendency of the data. Qualitative data, on the other hand, is described using different methods such as bar charts and pie charts, not histograms or frequency distributions. Therefore, the correct answer is C. Some graphic methods for describing quantitative data are histograms and frequency distribution.


Question 7

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%.

A good description of quantitative data would be as follows:



Answer : C

Quantitative data refers to data that can be measured and expressed numerically. This type of data is often described using statistical methods, graphs, charts, and numerical summaries. It is distinct from qualitative data, which is descriptive and categorical. Thus, the most accurate description is that Quantitative data can be described graphically or numerically.


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Total 189 questions