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Question 24

When using a fixed-price./lump-sum contract, which of the following; situations can a payment be made for the adjustment of fluctuations in the cost of of construction resources?

Options:

For changes in prices calculated in accordance with a methodology proposed by the contractor at tender stage.

For changes in construction cost 'or varied works carried out beyond the original dale of completion

In no situation

For changes in The cost of resources beyond the control of either party

Question 25

An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.

Answer the question using a straight line depreciation and a 10% interest rate.

The following question requires your selection of CCC/CCE Scenario 17 (4.2.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

Assuming a 53% tax rate, how much cumulative depreciation will have been claimed at the end of the grain elevator's life span?

Options:

None

$42,400

$37,600

$80,000

Question 26

You have recently been appointed as the Cost Engineer to oversee process improvement projects for a Discrete Part Manufacturer. You have been asked to calculate the CPI on a project initiated to implement a Value Stream Mapping Initiative. The accountant is only able to provide you with BAC and EAC figures of $ 5000 and 57500 respectively. The CPI is:

unable to be calculated from the information given