AACE CCT Primer Exam 2024 Questions
and Correct Answers Rated A+
The sum of the practices and processes that an enterprise uses to
manage the total life cycle cost investment in its portfolio of strategic
assets is called _________ -ANSWER-Total Cost Management
______ is the application of scientific principles and techniques to
problems of :
- estimation
- cost control
- business planning & management science
- profitability analysis
- project management
- planning & scheduling -ANSWER-Cost Engineering
_______ Is the value of an activity or asset. Generally, this value is
determined by the cost of the resources that are expended to
complete the activity or produce the asset. An example would be the
facilities needed to produce an activity or asset, which would include
the tooling, electricity, taxes, and maintenance, etc., necessary to
keep the facility available for use. Other costs might be office supplies,
communication costs, travel costs, and security costs -ANSWER-Cost
Any consumable, except time, required to accomplish an activity are
considered _______. From a total cost and asset management
perspective, _______ may include any real or potential investment in
strategic assets including time, monetary, human, and physical. -
ANSWER-Resources, Resources
A resource becomes a cost when it is ______ or consumed in an
_____or project -ANSWER-invested, project
Material, labor, and "other" are categories of _________. -ANSWER-
Resources
,The product lifecycle is the complete history of a product through its
______, definition, production, operation, and obsolescence /______
phases. -ANSWER-concept, disposal
The distinction between product life cycle and project life cycle is that
the latter does not include the ______ and ______. -ANSWER-
operation, disposal
___________ is the systematic numeric method of classifying various
categories of costs for accounting purposes -ANSWER-Code of
Accounts
______ is used used in situations where each job is different and is
performed to the customer's specifications. ______ involves keeping
an account of direct costs (labor, machine time, raw materials) and
indirect costs (overheads) -ANSWER-Job Costing, Job Costing
A process is a sequence or independent & linked procedures which
___________ to convert inputs into outputs. These outputs then serve
as inputs for the next stage until a known goal or end result is reached
-ANSWER-consume resources
A _____ is a good, idea, method, information, object, service, etc, that
is the end result of a process & serves as a need or want
satisfierProduct -ANSWER-Product
Product manufactured along with a different product, in a process in
which both are required in the production of another product are
considered _____ -ANSWER-Co-products
A key feature of a ____ is that it has low value in comparison with the
principal product(s) & may be discarded or sold -ANSWER-by-product
Types of Manufacturing Operations include _____, ______ run and
_____ shop -ANSWER-Process, Batch, Job
,This manufacturing operation runs almost continuously making the
same thing. Examples are refining and chemical plants, and very long
run assembly operations. -ANSWER-Process
A ______ characterized by setting up for one product, producing a set
quantity of product, and then shutting down to change over to
producing another product. -ANSWER-Batch Run
A _______ Similar to a batch run operation, except that you only
produce 1 of the item. Each job results in a customized product.
Examples are metal fabrication, prototype, fabrication. -ANSWER-job
shop
Roles such as executive/senior management, legal, HR, business
development, etc. These roles are the farthest removed from the
actual production of discrete product at the various facilities. They are
shared across many production locations and considered ______. -
ANSWER-overhead
______ are field/plant support personnel, located at the site. These
resources help the operation run smoothly. These are people like local
payroll, facility maintenance, site project controls, site senior (office-
based) supervisors and management who are shared across the
various products the particular location produces. -ANSWER-Indirects
_______are the remote location people directly involved in producing
the product. These are the easiest to correlate their effort to a
particular product. First line supervisors are also normally considered
______. -ANSWER-Directs
The owner approaches cost from a _____ point of view. Owners not
only consider the cost of the construction, or process, but ______
supervision
and overhead, implementation costs, cost of money, furniture, fixtures,
equipment( FFE) and other considerations -ANSWER-holistic, internal
, Contractors, subcontractors, suppliers only consider their part of the
_______ and are responsible for that alone. -ANSWER-Project costs
Appraising or estimating the worth of something having economic or
monetary value is the general description of ________. -ANSWER-
valuation
Valuation in _______ is the determination of the worth of the asset or
that which has been damaged or lost -ANSWER-insurance, insured
Valuation in ________ is the determination of the dutiable value of
imports by the customs authorities. -ANSWER-International Trade
A(n) _________ represents the foregone benefit by choosing one
alternative over another -ANSWER-Opportunity cost
There is a relationship between time and the opportunity to influence a
projects cost. The more time that has elapsed, the ____ the chance to
alter the cost. It is important to make the cost effective decisions
______ in a project or process to have the most influence on cost. -
ANSWER-less, early
________focuses on external reporting. Maintain the balance sheet
(assets and liabilities) and generate income (revenues less expenses)
and tax statements for the organization _________. Only look at
indirects costs as a whole, not broken out to individual products or
departments. -ANSWER-Managerial Accounting, as a whole
In cost accounting the focus is on ___________, and their product is
often proprietary. Determine how much it is costing the organization to
produce a particular product. Looks at appropriate allocation of
overhead and indirect costs to only include those ______ to the
product. -ANSWER-internal reporting, directly applicable
Impact of "One Size Fits All" Allocation -ANSWER-Easy to come up
with and ensure 100% allocation of the overhead costs, usually don't
reflect what is truly needed to produce that organizational deliverable.
and Correct Answers Rated A+
The sum of the practices and processes that an enterprise uses to
manage the total life cycle cost investment in its portfolio of strategic
assets is called _________ -ANSWER-Total Cost Management
______ is the application of scientific principles and techniques to
problems of :
- estimation
- cost control
- business planning & management science
- profitability analysis
- project management
- planning & scheduling -ANSWER-Cost Engineering
_______ Is the value of an activity or asset. Generally, this value is
determined by the cost of the resources that are expended to
complete the activity or produce the asset. An example would be the
facilities needed to produce an activity or asset, which would include
the tooling, electricity, taxes, and maintenance, etc., necessary to
keep the facility available for use. Other costs might be office supplies,
communication costs, travel costs, and security costs -ANSWER-Cost
Any consumable, except time, required to accomplish an activity are
considered _______. From a total cost and asset management
perspective, _______ may include any real or potential investment in
strategic assets including time, monetary, human, and physical. -
ANSWER-Resources, Resources
A resource becomes a cost when it is ______ or consumed in an
_____or project -ANSWER-invested, project
Material, labor, and "other" are categories of _________. -ANSWER-
Resources
,The product lifecycle is the complete history of a product through its
______, definition, production, operation, and obsolescence /______
phases. -ANSWER-concept, disposal
The distinction between product life cycle and project life cycle is that
the latter does not include the ______ and ______. -ANSWER-
operation, disposal
___________ is the systematic numeric method of classifying various
categories of costs for accounting purposes -ANSWER-Code of
Accounts
______ is used used in situations where each job is different and is
performed to the customer's specifications. ______ involves keeping
an account of direct costs (labor, machine time, raw materials) and
indirect costs (overheads) -ANSWER-Job Costing, Job Costing
A process is a sequence or independent & linked procedures which
___________ to convert inputs into outputs. These outputs then serve
as inputs for the next stage until a known goal or end result is reached
-ANSWER-consume resources
A _____ is a good, idea, method, information, object, service, etc, that
is the end result of a process & serves as a need or want
satisfierProduct -ANSWER-Product
Product manufactured along with a different product, in a process in
which both are required in the production of another product are
considered _____ -ANSWER-Co-products
A key feature of a ____ is that it has low value in comparison with the
principal product(s) & may be discarded or sold -ANSWER-by-product
Types of Manufacturing Operations include _____, ______ run and
_____ shop -ANSWER-Process, Batch, Job
,This manufacturing operation runs almost continuously making the
same thing. Examples are refining and chemical plants, and very long
run assembly operations. -ANSWER-Process
A ______ characterized by setting up for one product, producing a set
quantity of product, and then shutting down to change over to
producing another product. -ANSWER-Batch Run
A _______ Similar to a batch run operation, except that you only
produce 1 of the item. Each job results in a customized product.
Examples are metal fabrication, prototype, fabrication. -ANSWER-job
shop
Roles such as executive/senior management, legal, HR, business
development, etc. These roles are the farthest removed from the
actual production of discrete product at the various facilities. They are
shared across many production locations and considered ______. -
ANSWER-overhead
______ are field/plant support personnel, located at the site. These
resources help the operation run smoothly. These are people like local
payroll, facility maintenance, site project controls, site senior (office-
based) supervisors and management who are shared across the
various products the particular location produces. -ANSWER-Indirects
_______are the remote location people directly involved in producing
the product. These are the easiest to correlate their effort to a
particular product. First line supervisors are also normally considered
______. -ANSWER-Directs
The owner approaches cost from a _____ point of view. Owners not
only consider the cost of the construction, or process, but ______
supervision
and overhead, implementation costs, cost of money, furniture, fixtures,
equipment( FFE) and other considerations -ANSWER-holistic, internal
, Contractors, subcontractors, suppliers only consider their part of the
_______ and are responsible for that alone. -ANSWER-Project costs
Appraising or estimating the worth of something having economic or
monetary value is the general description of ________. -ANSWER-
valuation
Valuation in _______ is the determination of the worth of the asset or
that which has been damaged or lost -ANSWER-insurance, insured
Valuation in ________ is the determination of the dutiable value of
imports by the customs authorities. -ANSWER-International Trade
A(n) _________ represents the foregone benefit by choosing one
alternative over another -ANSWER-Opportunity cost
There is a relationship between time and the opportunity to influence a
projects cost. The more time that has elapsed, the ____ the chance to
alter the cost. It is important to make the cost effective decisions
______ in a project or process to have the most influence on cost. -
ANSWER-less, early
________focuses on external reporting. Maintain the balance sheet
(assets and liabilities) and generate income (revenues less expenses)
and tax statements for the organization _________. Only look at
indirects costs as a whole, not broken out to individual products or
departments. -ANSWER-Managerial Accounting, as a whole
In cost accounting the focus is on ___________, and their product is
often proprietary. Determine how much it is costing the organization to
produce a particular product. Looks at appropriate allocation of
overhead and indirect costs to only include those ______ to the
product. -ANSWER-internal reporting, directly applicable
Impact of "One Size Fits All" Allocation -ANSWER-Easy to come up
with and ensure 100% allocation of the overhead costs, usually don't
reflect what is truly needed to produce that organizational deliverable.
