CCP Exam Dumps - AACE International AACE Questions and Answers

To calculate the increase in copper prices over 30 months (which is 2.5 years), we apply the inflation rates for the first two years and half of the third year:

Year 1: 1.0%

Year 2: 1.5%

Year 3 (half-year): 1.5% / 2 = 0.75%

The total percentage increase is calculated as:

Total Increase=(1+0.01)×(1+0.015)×(1+0.0075)−1\text{Total Increase} = (1 + 0.01) \times (1 + 0.015) \times (1 + 0.0075) - 1Total Increase=(1+0.01)×(1+0.015)×(1+0.0075)−1 \text{Total Increase} = 1.01 \times 1.015 \times 1.0075 - 1 \approx 1.066 - 1 = 0.066 \text{ or 6.6%}

So, the correct answer isC. 6.6%.

To calculate the break-even point, we need to determine how many units must be sold to cover all fixed and variable costs. The formula to calculate the break-even point in units is:

Break-even units=Total Fixed CostsSelling Price per Unit−Variable Cost per Unit\text{Break-even units} = \frac{\text{Total Fixed Costs}}{\text{Selling Price per Unit} - \text{Variable Cost per Unit}}Break-even units=Selling Price per Unit−Variable Cost per UnitTotal Fixed Costs​

Given:

Selling Price per Unit = $0.55

Variable Cost per Unit = $0.45 + $0.02 = $0.47

Contribution Margin per Unit = $0.55 - $0.47 = $0.08

Total Fixed Costs:

Total Fixed Costs=1500+4000+500=6000\text{Total Fixed Costs} = 1500 + 4000 + 500 = 6000Total Fixed Costs=1500+4000+500=6000

Break-even units:

Break-even units=60000.08=75,000 units\text{Break-even units} = \frac{6000}{0.08} = 75,000 \text{ units}Break-even units=0.086000​=75,000 units

Therefore, the correct answer isC. 75,000 units.

In aLump-Sum/Fixed-Price contract, the contractor agrees to complete the work for a set price, regardless of the actual costs incurred. This type of contract is often used when the project scope is well-defined, and the contractor has the freedom to choose methods and resources to complete the work within the agreed price.

Key Points:

Lump-Sum/Fixed-Price Contract:

The contractor has full responsibility for carrying out the project within the agreed-upon price.

The contractor is incentivized to control costs and manage resources efficiently because any cost overruns will reduce their profit margin.

Other Contract Types:

Guaranteed Maximum Price (GMP):The contractor is reimbursed for costs up to a maximum limit. Any costs above this limit are the contractor's responsibility.

Cost Reimbursable/Fixed Fee:The contractor is reimbursed for actual costs incurred, plus an additional fee, which might be a fixed amount or a percentage of the costs.

Measured Unit Price:Payment is made based on the actual quantity of work completed, with predefined rates for each unit.

Conclusion:The correct answer isD. Lump-sum/Fixed priceas this contract type gives the contractor the freedom to choose their methods and resources to complete the project, with a focus on efficiency to maximize profit within the fixed price.

Given Scenario:

Methods for creating critical path schedules are inquired.

ThePrecedence Diagramming Method (PDM)andArrow 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.

Percent complete is a measure used in project management to quantify the progress of a project. It is defined as the earned work hours or dollars for all accounts divided by the budgeted work hours or dollars for all accounts. This metric provides an indication of how much work has been completed in relation to the total planned work.

Option B: Cost to completerefers to the estimated cost required to finish all remaining project work.

Option C: Earned valueis a key metric in Earned Value Management (EVM) that represents the value of the work actually performed.

Option D: Forecastrefers to predicting future project performance and outcomes based on current data and trends.

Therefore,A. Percent completeis the correct answer as it accurately describes the ratio of earned work hours or dollars to budgeted work hours or dollars.

Given Scenario:

The question asks about the system used in the U.S. for calculating depreciation.

The Modified Accelerated Cost Recovery System (MACRS) is the current system used in the United States for calculating depreciation for tax purposes.

The median cost is found by ordering the unit costs and selecting the middle value. The ordered costs are:

$26.78, $34.50, $37.30, $40.00, $46.59, $55.00, $55.00, $65.00, $75.00

Since there are nine data points, the fifth value in this list is the median:

C. $40.00is the median unit cost.

When writing, particularly in a professional setting, clarity and conciseness are paramount. The guidelines include:

Using short sentences and wordsto make the text easy to read and understand.

Avoiding jargon and abbreviationsto prevent confusion and ensure that the message is accessible to a broader audience.

Using complete sentencesto convey full thoughts.

Sticking to one idea per paragraphto maintain focus and clarity.

Having a clear structurewith a beginning, middle, and end to guide the reader through your argument or narrative.

Being accurateto ensure that the information communicated is reliable.

Option Brefers to a specific format for structuring a document but does not encompass general writing guidelines.

Option Cprovides good tips for the drafting process but lacks comprehensive writing principles.

Option Dlists purposes of writing rather than guidelines.

Thus,Ais the correct answer as it comprehensively covers essential writing guidelines.

Based on the capital recovery analysis and considering the salvage value and the cost of capital, if the calculated capital recovery value is favorable and meets the investment criteria, the correct conclusion is that the pressshould be purchased. Thus, the correct answer isD. Yes.

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To calculate how many years it will take to earn $400 in interest on $800 at 4% compounded annually, we need to solve for nnn in the future value formula:

FV=PV×(1+i)nFV = PV \times (1 + i)^nFV=PV×(1+i)n

Where:

FVFVFV is the future value ($1,200 = $800 + $400)

PVPVPV is the present value ($800)

iii is the interest rate (4% or 0.04)

nnn is the number of years

1,200=800×(1.04)n1,200 = 800 \times (1.04)^n1,200=800×(1.04)n

Dividing both sides by 800:

1.5=(1.04)n1.5 = (1.04)^n1.5=(1.04)n

Taking the logarithm of both sides:

log⁡(1.5)=n×log⁡(1.04)\log(1.5) = n \times \log(1.04)log(1.5)=n×log(1.04) n=log⁡(1.5)log⁡(1.04)≈12n = \frac{\log(1.5)}{\log(1.04)} \approx 12n=log(1.04)log(1.5)​≈12