CCP Exam Dumps - AACE International AACE Questions and Answers

Quality management encompasses several critical aspects that ensure a project's outputs meet the required standards and fulfill the client's needs. These aspects typically include:

Quality Assurance (QA):This refers to the systematic processes and procedures put in place to ensure that the project's outcomes meet the required quality standards. QA is proactive, focusing on preventing defects by improving processes.

Quality Planning:This involves identifying the quality standards relevant to the project and planning how to meet those standards. It is an essential early step in the project management process, ensuring that quality objectives are defined and documented.

Quality Control (QC):This is the process of monitoring specific project results to determine if they comply with relevant quality standards. QC is a reactive process that identifies and corrects defects in the final outputs.

Quality Checkingis not a standard term in the context of formal quality management processes. While checking may occur during quality control or assurance activities, it is not recognized as a distinct, formal component of quality management, making it the correct answer as the aspect that does not belong to the set.

Given Scenario:

Cost engineers feel completely satisfied and fulfilled by their work.

Maslow’s Hierarchy of Needs:

The stage where individuals feel fulfilled and have reached their full potential is calledSelf-actualization.

Given Scenario:

The scenario involves a unit price contract between the owner and the contractor.

A unit price contract stipulates that the owner will pay the contractor for the actual quantities used at the bid unit rates. Typically, the contractor agrees to perform at or below the bid unit rate, while the owner may account for the possibility that the quantities could exceed the estimated range. The scenario best fits with the concept that:

The contractor can perform at or below the bid unit rate.

The owner recognizes that quantities may vary but are expected to be within an estimated range.

You need to find the relative frequency of unit costs from Atlanta, GA.

Steps:

Identify the number of bids from Atlanta, GA:

8/31/05: 530 units at $55.00/unit

11/19/04: 308 units at $40.00/unit

1/26/05: 45 units at $26.78/unit

Total number of instances: 3

The compound interest factor used to determine the present value in year 5 with a 10% interest rate is calculated as:

PV=1(1+i)nPV = \frac{1}{(1 + i)^n}PV=(1+i)n1​

For i=10.5%i = 10.5\%i=10.5% and n=5n = 5n=5:

PV=1(1.105)5≈0.6209PV = \frac{1}{(1.105)^5} \approx 0.6209PV=(1.105)51​≈0.6209

Thus, the correct answer isB. 0.6209.

Based on the provided financials, the truck results in a positive net income after accounting for all expenses, including depreciation and taxes. Since the truck meets the desired 10% return on investment,the most financially sound decision would be topurchase the truck. This conclusion assumes the cash flows and return analysis align with the management's required rate of return.

To calculate the capital recovery costs for the new press machine, which includes the salvage value, the correct method is to use the approach inOption B:

Annual Depreciation:This represents the cost of the equipment spread over its useful life.

Annual Equivalent Interest:This accounts for the interest on the capital cost over time, which is necessary when considering the cost of capital.

Thus, the correct formulas provided inOption Bare:

(1) C.R. = annual depreciation + annual equivalent interest

(2) C.R. = P(A/P, i%, N) - F(A/F, i%, N)

These formulas are typically used in engineering economics to assess capital recovery when both depreciation and interest are considered, along with the salvage value. Therefore, the correct answer isB. Option B.

In the benefit/cost (B/C) method of analysis, the criterion for determining whether a proposed project is acceptable is if the Benefit/Cost ratio (B/C) is greater than 1.0. This indicates that the benefits of the project outweigh the costs, thus making the project economically viable. A B/C ratio of exactly 1.0 suggests that the benefits are just sufficient to cover the costs, while a ratio greater than 1.0 indicates a profitable investment.

Anactivityis a fundamental unit of work that must be performed over a specific period to complete a project. In project management, activities are the individual tasks or components that make up the project's work breakdown structure (WBS). Each activity is defined by its duration, required resources, and dependencies on other activities.

Activities are the building blocks of a project schedule, and understanding them is crucial for effective project planning, scheduling, and execution. By breaking down a project into activities, project managers can better estimate time and resources, monitor progress, and make adjustments as necessary to keep the project on track.

Bid shopping is an unethical practice where a prime contractor discloses a vendor's bid price to other vendors to encourage them to underbid the original price quoted. This practice can lead to lower quality work or unfair pricing pressures on vendors and is generally frowned upon in the construction industry.

Option A: Costingrefers to the process of determining the cost of a product or service, not the manipulation of bids.

Option B: Cost-price analysisinvolves evaluating the costs and prices of goods or services, not bid manipulation.

Option D: Negotiating a best and final offeris a legitimate practice in procurement to get the best price after initial bids are received but does not involve unethical disclosure of bid prices.

Therefore,C. Bid shoppingis the correct answer as it describes the specific practice of using one vendor’s bid to undercut prices from others.