AACE International Certified Cost Professional (CCP) (CCP) Free Practice Test
Question 1
If you deposit $100 per month for two (2) years and earn interest at 12% APR (Annual Percentage Rate) compounded monthly, how much will you have at the end of the period?
Correct Answer: A
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Question 2
A used concrete pumping truck can be purchased for $125,000. The operation costs are expected to be $65,000 the first year and increase 5% each year thereafter. As a result of the purchase, the company will see an increase in income of $100,000 the first year and 5% more each subsequent year. The company uses straight-line depreciation. The truck will have a useful life of five (5) years and no salvage value. Management would like to see a 10% return on any investment. The company's tax rate is 28%.
SCENARIO: A can manufacturing company requested you to provide data for their decision making. The unit prices of the can vary but an average selling price of $0.55 cents and average cost of $0.45 cents is estimated.
The monthly fixed costs are:
Rent-SI .600
Wages - $4.000
Miscellaneous fixed expenses - $500
Marketing team observed that factory can safely increase their unit selling price to S0.60 cents. The new break even units for the sales based on new contribution margin will be:
SCENARIO: A can manufacturing company requested you to provide data for their decision making. The unit prices of the can vary but an average selling price of $0.55 cents and average cost of $0.45 cents is estimated.
The monthly fixed costs are:
Rent-SI .600
Wages - $4.000
Miscellaneous fixed expenses - $500
Marketing team observed that factory can safely increase their unit selling price to S0.60 cents. The new break even units for the sales based on new contribution margin will be:
Correct Answer: B
Explanation: Only visible for TestSimulate members. You can sign-up / login (it's free).
Question 3
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.
Present worth calculations is represented by which of the following equations?
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.
Present worth calculations is represented by which of the following equations?
Correct Answer: A
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Question 4
The following question requires your selection of CCC/CCE Scenario 28 (3.7.50.1.7) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.
Given a unit price contract between the owner and contractor, each assumes the following:
Given a unit price contract between the owner and contractor, each assumes the following:
Correct Answer: B
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Question 5
A breach of contract can only occur when which of the following conditions is (are) present?
1. The item must be contrary to the intent of the parties
2. The item must be contrary to the contract terms and conditions
3. The injured party must actually sustain additional or excess costs
1. The item must be contrary to the intent of the parties
2. The item must be contrary to the contract terms and conditions
3. The injured party must actually sustain additional or excess costs
Correct Answer: D
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Question 6
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 main financial objective of many enterprises is:
Answer the question using a straight line depreciation and a 10% interest rate.
The main financial objective of many enterprises is:
Correct Answer: C
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Question 7
A major theme park is expanding the existing facility over a five-year period. The design phase will be completed one year after the contract is awarded. Major engineering drawings will be finalized two years after the design contract is awarded and construction will begin three years after the award of the design contract. New, unique ride technology will be used and an estimate will need to be developed to identify these costs that have no historical data.
Cost engineers who feel completely satisfied and fulfilled by their work as part of a project team are said to have reached the ______________ stage of Maslow's hierarchy of needs.
Cost engineers who feel completely satisfied and fulfilled by their work as part of a project team are said to have reached the ______________ stage of Maslow's hierarchy of needs.
Correct Answer: B
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Question 8
SCENARIO: A can manufacturing company requested you to provide data for their decision making The unit prices of the can varies but an average selling price of $0.55 cents and average cost of S45 cents is estimated.
The monthly fixed costs are:
Rant-$1,500
Wages - $4.000
Miscellaneous fixed expenses - $500
If the rent increases by 100% and the unit sales/other costs remain unchanged, the new break even amount is?
The monthly fixed costs are:
Rant-$1,500
Wages - $4.000
Miscellaneous fixed expenses - $500
If the rent increases by 100% and the unit sales/other costs remain unchanged, the new break even amount is?
Correct Answer: C
Explanation: Only visible for TestSimulate members. You can sign-up / login (it's free).
Question 9
SCENARIO: A can manufacturing company requested you to provide data for their decision making The unit prices of the can varies but an average selling price of $0.55 cents and average cost of SO 45 cents is estimated.
The monthly fixed costs are: Rant-$1,600
Wages - S4.000
Miscellaneous fixed expenses - $500
If the rent increases by 100% and the unit sales/other costs remain unchanged, the new break even amount is?
The monthly fixed costs are: Rant-$1,600
Wages - S4.000
Miscellaneous fixed expenses - $500
If the rent increases by 100% and the unit sales/other costs remain unchanged, the new break even amount is?
Correct Answer: A
Explanation: Only visible for TestSimulate members. You can sign-up / login (it's free).
Question 10
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
unable to be calculated from the information given
Correct Answer: A
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Question 11
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.
All of the following are included in "income tax" calculations except:
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.
All of the following are included in "income tax" calculations except:
Correct Answer: C
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Question 12
_____________is defined as the budget for the cost (work) account times the percent complete for that account.
Correct Answer: A
Explanation: Only visible for TestSimulate members. You can sign-up / login (it's free).
Question 13
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.
If you buy a lot for $3,000 and sell it for $6,000 at the end of 8 years, what is your annual rate of return?
Answer the question using a straight line depreciation and a 10% interest rate.
If you buy a lot for $3,000 and sell it for $6,000 at the end of 8 years, what is your annual rate of return?
Correct Answer: B
Explanation: Only visible for TestSimulate members. You can sign-up / login (it's free).