AACE Certified Cost Technician (CCT)

Which AACE certification is the entry-level technician credential for cost engineering practitioners with limited industry experience?

• AAACE Certified Cost Professional (CCP)
• BAACE Certified Cost Technician (CCT)
• CAACE Certified Estimating Professional (CEP)
• DAACE Planning & Scheduling Professional (PSP)

According to AACE, which definition BEST describes cost engineering?

• ADesigning machinery and equipment so that it is cheaper to manufacture
• BApplying scientific principles to cost estimating, economic analysis, and scheduling
• CRecording and reporting completed financial transactions in the enterprise ledgers and st…
• DNegotiating supplier contracts and administering purchase orders on a project

Direct costs on a construction project would typically include which of the following?

• AProject office rent and corporate overhead
• BSite supervision and quality inspection labor
• CPermanent equipment installed in the facility
• DInsurance premiums for the prime contractor's bonds

Per AACE Recommended Practice 18R-97, a Class 5 estimate is BEST characterized by which level of project definition and accuracy?

• A0%-2% definition; used for concept screening
• B10%-40% definition; used for budget authorization
• C30%-75% definition; used for control or bid/tender
• D65%-100% definition; used for check estimate or bid

AACE defines contingency as an amount included in an estimate to address which of the following?

• AScope changes approved after the cost baseline is set
• BKnown-unknown risks within the defined project scope
• CProfit margin and the required return to shareholders
• DForce majeure events such as war or natural disaster

If $1,000 is invested today at 8% annual interest compounded annually, what is the future value at the end of 5 years (rounded)?

• A$1,400
• B$1,469
• C$1,500
• D$1,540

The straight-line depreciation method for an asset with a $100,000 cost, a $10,000 salvage value, and a 9-year life produces what annual depreciation expense?

• A$10,000
• B$11,111
• C$12,000
• D$9,000

Which depreciation method depreciates assets over recovery periods (3, 5, 7, 10, 15, 20, 27.5, 39 years) using IRS-specified percentages?

• AStraight-line
• BDouble Declining Balance (DDB)
• CModified Accelerated Cost Recovery System (MACRS)
• DSum-of-years-digits (SYD)

A project has an initial cost of $50,000 and generates net cash inflows of $15,000 per year for 5 years. What is the simple (non-discounted) payback period?

• A2.5 years
• B3.0 years
• C3.33 years
• D5.0 years

The Net Present Value (NPV) decision rule for a single project says ACCEPT the project when:

• ANPV > 0 at the firm's discount rate
• BNPV equals the initial investment
• CPayback is less than 1 year
• DInternal Rate of Return is less than the cost of capital

A Work Breakdown Structure (WBS) is BEST described as:

• AA list of project deliverables in time order
• BA hierarchical decomposition of the total project scope into manageable work packages
• CA network diagram showing logic relationships between activities
• DAn organizational chart of project personnel

The intersection of the WBS and the Organizational Breakdown Structure (OBS) creates which of the following?

• AA Gantt chart
• BA Cost Account / Control Account
• CA Risk Register
• DA schedule milestone

In a Critical Path Method (CPM) network, the critical path is BEST defined as:

• AThe path that contains the greatest number of individual activities
• BThe longest-duration path, which sets the minimum project duration
• CThe shortest continuous path from project start to project finish
• DAny path that runs through a contract milestone date

Total Float for an activity is BEST calculated as:

• ALate Finish minus Early Finish, or Late Start minus Early Start
• BEarly Finish minus Early Start, using the forward pass only
• CLate Finish minus Early Start, the entire available time window for the activity
• DHalf the activity duration, rounded to the nearest work day

Free Float (FF) differs from Total Float (TF) in that Free Float represents:

• ATime an activity can be delayed without delaying the project finish
• BTime an activity can be delayed without delaying the early start of any successor activity
• CTime an activity must be expedited
• DTime an activity can finish before its early finish

PERT three-point estimating computes the expected activity duration using which formula?

• A(O + M + P) / 3
• B(O + 4M + P) / 6
• C(O + 6M + P) / 8
• D(P - O) / 6

Schedule compression by adding resources to a critical path activity to reduce its duration (typically at additional cost) is called:

• AFast-tracking
• BCrashing
• CResource leveling
• DFloat consumption

Earned Value (EV) on a project is defined as:

• AThe authorized budget for the work scheduled to be completed
• BThe actual cost incurred for the work performed
• CThe authorized budget for the work that has actually been completed
• DThe forecasted cost at completion

The Cost Performance Index (CPI) is calculated as:

• AEV / AC
• BAC / EV
• CEV / PV
• DPV / EV

A project has BAC = $1,000,000, EV = $400,000, AC = $500,000. The forecast Estimate at Completion (EAC) assuming the current CPI will continue is:

• A$1,000,000
• B$1,100,000
• C$1,250,000
• D$1,500,000

The To-Complete Performance Index (TCPI) using the original BAC is:

• A(BAC - EV) / (BAC - AC)
• BBAC / CPI
• CEV / PV
• DEV / AC

Schedule Variance (SV) is calculated as:

• AEV - AC
• BEV - PV
• CPV - EV
• DAC - EV

The 50/50 percent-complete technique credits a work package as:

• A50% of the budget when started and the other 50% when completed
• B50% of the budget at the midpoint review and the rest at closeout
• CNo credit until finished, then the full budget at once
• DAn equal share of the budget in each reporting period

The Cost Baseline is BEST defined as:

• AThe base estimate plus a flat ten percent markup applied for overruns
• BThe approved, time-phased budget used to measure cost performance
• CThe actual cash outflow recorded by the project to date
• DThe contract price agreed with the customer, including profit

Which AACE TCM Framework process area focuses on Strategic Asset Management (SAM)?

• APortfolio, requirements, asset planning, and performance assessment
• BProject planning, project execution, and project control
• CCost accounting and financial reporting
• DProcurement and supply chain

Which of the following is a CONFORMANCE cost in Cost of Quality (COQ)?

• AInternal failure (rework, scrap)
• BExternal failure (warranty claims, recalls)
• CPrevention (training, design reviews, planning)
• DLost sales due to poor quality

Pareto analysis in quality management states approximately:

• A20% of causes produce 80% of effects
• B50% of defects are random
• CAll defects are equally important
• DSix sigma allows 6.8 defects per million

A Wright learning curve at 85% means that:

• AEach doubling of cumulative output reduces the cumulative average unit time by 85%
• BEach doubling of cumulative output reduces the cumulative average unit time TO 85% of the…
• CEach unit costs 85% of the previous unit
• DProductivity improves 85% per year

Resource leveling differs from resource smoothing in that resource leveling:

• AMaintains the project end date but moves resources within float
• BMay extend the project end date to address resource constraints
• CIncreases cost by adding resources
• DOnly applies to materials, not labor

Which contract type places the MOST cost risk on the seller/contractor?

• ACost Plus Fixed Fee (CPFF)
• BTime and Materials (T&M)
• CFirm Fixed Price (FFP)
• DCost Plus Award Fee (CPAF)

A Probability-Impact (P-I) matrix is used in which step of project risk management?

• ARisk identification
• BQualitative risk analysis
• CQuantitative risk analysis (Monte Carlo)
• DRisk closure

Which of the following is the BEST example of risk TRANSFER as a response strategy?

• ACancelling the high-risk activity
• BPurchasing insurance against a specific peril
• CAdding contingency to the budget
• DConducting additional engineering studies

Expected Monetary Value (EMV) for a single risk event is calculated as:

• ACost impact / Probability
• BProbability x Cost impact
• CCost impact + Probability
• DStandard deviation of impacts

A Class 4 estimate per AACE 18R-97 is typically used for:

• AConcept screening only
• BStudy or feasibility (1%-15% project definition)
• CBid or check estimating (65%-100% project definition)
• DFinal project closeout

Parametric estimating develops cost using:

• ADetailed take-off quantities priced at current crew, material and unit rates
• BA statistical relationship between a project parameter and historical cost
• CFirm vendor quotations obtained for every major equipment item
• DAn unweighted average of the total costs of all previous projects

The six-tenths rule for capacity-based cost estimating states that the cost of a similar facility at a different capacity is approximately:

• ACost B = Cost A x (Capacity B / Capacity A)^0.6
• BCost B = Cost A x (Capacity B / Capacity A)
• CCost B = Cost A x (Capacity B / Capacity A)^2
• DCost B = Cost A + Capacity B