AACE CCT Primer Exam Questions with
Correct Answers
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 _________ - Correct
Answers -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 - Correct Answers -Cost Engineering
ISO _______ is focused specifically on project management - Correct Answers -10006
A measurement and analysis process that compares practices, processes, and relevant
measures to those of a selected basis of comparison with the goal of improving
performance. The comparison basis includes internal or external competitive or best
practices, processes or measures. - Correct Answers -Benchmarking
The objective of the _____ ____ (__) study is to improve the value for the intended
project objectives. - Correct Answers -value analysis (VA)
Change Management - Correct Answers -The formal process through which changes to
the project plan are identified, assessed, reviewed, approved and introduced
Types of Value - Correct Answers -Cost Value, Exchange Value, Use Value, Esteem
Value, Satisfaction Value
This is the amount of money (or monetary equivalents) that must be spent to produce or
purchase an item [S&K 4th Ed., 23.1] - Correct Answers -Cost Value
Exchange Value is the value of an item on the ___ ___ should one try to sell or trade it.
- Correct Answers -open market
_______ 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 - Correct Answers -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. - Correct Answers -Resources, Resources
A resource becomes a cost when it is ______ or consumed in an _____or project -
Correct Answers -invested, project
Material, labor, and "other" are categories of _________. - Correct Answers -Resources
The product lifecycle is the complete history of a product through its ______, definition,
production, operation, and obsolescence /______ phases. - Correct Answers -concept,
disposal
The distinction between product life cycle and project life cycle is that the latter does not
include the ______ and ______. - Correct Answers -operation, disposal
___________ is the systematic numeric method of classifying various categories of
costs for accounting purposes - Correct Answers -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) - Correct Answers -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 - Correct Answers -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 - Correct Answers -Product
Product manufactured along with a different product, in a process in which both are
required in the production of another product are considered _____ - Correct Answers -
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 - Correct Answers -by-product
Types of Manufacturing Operations include _____, ______ run and _____ shop -
Correct Answers -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. -
Correct Answers -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. - Correct
Answers -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. - Correct Answers -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
______. - Correct Answers -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. - Correct Answers -
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 ______. - Correct Answers -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 - Correct Answers -holistic, internal
Contractors, subcontractors, suppliers only consider their part of the _______ and are
responsible for that alone. - Correct Answers -Project costs
Appraising or estimating the worth of something having economic or monetary value is
the general description of ________. - Correct Answers -valuation
Valuation in _______ is the determination of the worth of the asset or that which has
been damaged or lost - Correct Answers -insurance, insured
Valuation in ________ is the determination of the dutiable value of imports by the
customs authorities. - Correct Answers -International Trade
Correct Answers
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 _________ - Correct
Answers -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 - Correct Answers -Cost Engineering
ISO _______ is focused specifically on project management - Correct Answers -10006
A measurement and analysis process that compares practices, processes, and relevant
measures to those of a selected basis of comparison with the goal of improving
performance. The comparison basis includes internal or external competitive or best
practices, processes or measures. - Correct Answers -Benchmarking
The objective of the _____ ____ (__) study is to improve the value for the intended
project objectives. - Correct Answers -value analysis (VA)
Change Management - Correct Answers -The formal process through which changes to
the project plan are identified, assessed, reviewed, approved and introduced
Types of Value - Correct Answers -Cost Value, Exchange Value, Use Value, Esteem
Value, Satisfaction Value
This is the amount of money (or monetary equivalents) that must be spent to produce or
purchase an item [S&K 4th Ed., 23.1] - Correct Answers -Cost Value
Exchange Value is the value of an item on the ___ ___ should one try to sell or trade it.
- Correct Answers -open market
_______ 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 - Correct Answers -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. - Correct Answers -Resources, Resources
A resource becomes a cost when it is ______ or consumed in an _____or project -
Correct Answers -invested, project
Material, labor, and "other" are categories of _________. - Correct Answers -Resources
The product lifecycle is the complete history of a product through its ______, definition,
production, operation, and obsolescence /______ phases. - Correct Answers -concept,
disposal
The distinction between product life cycle and project life cycle is that the latter does not
include the ______ and ______. - Correct Answers -operation, disposal
___________ is the systematic numeric method of classifying various categories of
costs for accounting purposes - Correct Answers -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) - Correct Answers -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 - Correct Answers -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 - Correct Answers -Product
Product manufactured along with a different product, in a process in which both are
required in the production of another product are considered _____ - Correct Answers -
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 - Correct Answers -by-product
Types of Manufacturing Operations include _____, ______ run and _____ shop -
Correct Answers -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. -
Correct Answers -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. - Correct
Answers -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. - Correct Answers -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
______. - Correct Answers -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. - Correct Answers -
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 ______. - Correct Answers -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 - Correct Answers -holistic, internal
Contractors, subcontractors, suppliers only consider their part of the _______ and are
responsible for that alone. - Correct Answers -Project costs
Appraising or estimating the worth of something having economic or monetary value is
the general description of ________. - Correct Answers -valuation
Valuation in _______ is the determination of the worth of the asset or that which has
been damaged or lost - Correct Answers -insurance, insured
Valuation in ________ is the determination of the dutiable value of imports by the
customs authorities. - Correct Answers -International Trade
