In AACE terminology, which cost type is incurred even if no production occurs and does not vary with output volume?
Estimating Fundamentals
Question · Easy
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An estimator includes the cost of the project manager's salary across all jobs. Per AACE, this is best classified as which type of cost?
AACE Recommended Practice 18R-97 (Cost Estimate Classification — Process Industries) defines five estimate classes. Which class corresponds to the most preliminary, order-of-magnitude estimate with the lowest project definition?
Estimating Methods And Techniques
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An estimator scales the cost of a 100,000-bbl tank to estimate a 150,000-bbl tank using historical data and an exponent. Which estimating method is being used?
Using the AACE PERT (beta-distribution) three-point formula with optimistic = 80, most likely = 100, pessimistic = 150, what is the expected duration?
Question · Medium
Divide by twenty-seven
On the AACE CEP exam, an estimator builds up a project total by quantifying every work package, applying unit rates, and summing the result. This is best described as which method?
Per AACE RP 18R-97, what is the typical primary characteristic that distinguishes estimate classes from each other?
A project has BAC = $1,000,000, EV = $400,000, and AC = $500,000. What is the Cost Performance Index (CPI)?
Cost Analysis And Reporting
Given BAC = $2,000,000 and CPI = 0.80, what is the Estimate at Completion (EAC) using the most common formula that assumes the current cost performance continues?
Per AACE RP 40R-08 (Contingency Estimating — General Principles), contingency is intended to cover which of the following?
Risk And Uncertainty
The probability-weighted sum of cost outcomes is best described as the:
An estimator uses RSMeans data to develop an electrical estimate. RSMeans is best described as which type of resource?
Construction Specific
On a $1,000,000 building project, the contractor adds 10% overhead and 5% profit on the resulting subtotal. What is the total bid price?
Pricing And Material Takeoffs
A wall section requires 5,000 SF of drywall. Waste factor is 8%. What is the quantity to order?
Which AACE Code of Ethics canon most directly addresses the obligation to avoid conflicts of interest?
Project Organization Management And Ethics
During a building project bid, the design documents are 95% complete and the estimate is being prepared for the contractor's bid submission. Per AACE RP 18R-97, this is most consistent with which estimate class?
Cost Estimating During Project Phases
Schedule Variance (SV) in earned value analysis is calculated as:
An estimator runs a Monte Carlo simulation of a project's total cost using triangular distributions on each line item. What is the chief output of value?
On a process plant project, a quantity takeoff for piping shows 1,500 LF of 6-inch carbon steel piping. The unit installed price is $85/LF. What is the bare cost for this scope?
An installation crew has a baseline productivity of 100 units/day. Working in -20 F arctic conditions, a productivity factor of 0.65 applies. What is the adjusted daily output?
The Total Cost Management (TCM) Framework, published by AACE, organizes cost engineering practice around two main process areas: Strategic Asset Management and which other?
Which document is the standard mechanism for a contractor to obtain clarification on ambiguous design intent during the bidding or construction phase?
Which AACE Recommended Practice specifically addresses cost estimate classification for the Engineering, Procurement, and Construction (EPC) of buildings and general structures?
Question · Hard
A construction estimator must include sales tax on materials per the contract. The state sales tax is 7% and total material cost is $400,000. What sales tax should be added to the bid?
An owner wants to know the project total cost in 2028 dollars; the estimate is currently in 2026 dollars. The estimator applies a 4% annual escalation. By what factor should 2026 costs be multiplied?
A capacity-factored estimate uses an exponent of 0.7 to scale from 50,000 BPD to 100,000 BPD. If the 50,000 BPD plant cost $200 million, the 100,000 BPD plant cost is approximately:
The Schedule Performance Index (SPI) on a project is 0.90. The most accurate interpretation is:
Range estimating per AACE RP 41R-08 typically produces which output to support contingency setting?
Which type of cost is usually NOT included in a contractor's bid as a markup line?
An estimator is preparing a Class 4 estimate per AACE RP 18R-97. Which estimating method is MOST consistent with that class?
A site work estimate for cut-and-fill earthwork is best computed using which method?
The Lang factor used in process-industry estimating is best described as:
A change order on a construction contract typically requires which two negotiated items at minimum?
An estimator is performing sensitivity analysis on a project. What is the MOST common output deliverable?
During an EVA review, BAC = $5M, EV = $2M, AC = $2.5M. What is the Variance at Completion (VAC) using the EAC = BAC/CPI formula?
Which AACE certification typically focuses primarily on cost estimating practice and is the credential being addressed by the CEP exam?
A cost engineer separates 'capital expenditures' (CAPEX) from 'operating expenditures' (OPEX). Which item is typically OPEX rather than CAPEX?
An estimator computes that a $20,000 piece of equipment will be replaced at end of year 5. With a 6% discount rate, what is the present value (PV) factor for year 5? (Use PV = 1 / (1+i)^n)
Which AACE Recommended Practice covers cost estimating fundamentals and the general estimating process?
Material takeoff (MTO) and quantity takeoff (QTO) differ primarily in:
The accuracy range for a Class 1 estimate per AACE RP 18R-97 is typically:
A construction estimator includes a $100,000 line item for general conditions (job site overhead). This includes which of the following?
Per the AACE Code of Ethics, an estimator who finds a significant error in their employer's bid AFTER submission to the owner should:
A claim for differing site conditions on a unit-price contract is typically supported by which form of cost analysis?
A pessimistic = $250K, most likely = $200K, optimistic = $180K range on a line item produces what triangular-distribution mean?
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