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AACE CCT PRIMER 2025 UPDATED
ACTUAL EXAM WITH CORRECT
SOLUTIONS.
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 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 - correct 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
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use. Other costs might be office supplies, communication costs,
travel costs, and security costs - correct 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. - correct answer- Resources,
Resources
A resource becomes a cost when it is ______ or consumed in
an _____or project - correct answer- invested, project
Material, labor, and "other" are categories of _________. -
correct answer- Resources
The product lifecycle is the complete history of a product
through its ______, definition, production, operation, and
obsolescence /______ phases. - correct answer- concept,
disposal
The distinction between product life cycle and project life cycle
is that the latter does not include the ______ and ______. -
correct answer- operation, disposal
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___________ is the systematic numeric method of classifying
various categories of costs for accounting purposes - correct
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) - correct
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 - correct 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 - correct 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 _____ - correct answer- Co-products
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A key feature of a ____ is that it has low value in comparison
with the principal product(s) & may be discarded or sold -
correct answer- by-product
Types of Manufacturing Operations include _____, ______ run
and _____ shop - correct 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. - correct 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. - correct 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.
- correct answer- job shop
AACE CCT PRIMER 2025 UPDATED
ACTUAL EXAM WITH CORRECT
SOLUTIONS.
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 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 - correct 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
,2 | Page
use. Other costs might be office supplies, communication costs,
travel costs, and security costs - correct 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. - correct answer- Resources,
Resources
A resource becomes a cost when it is ______ or consumed in
an _____or project - correct answer- invested, project
Material, labor, and "other" are categories of _________. -
correct answer- Resources
The product lifecycle is the complete history of a product
through its ______, definition, production, operation, and
obsolescence /______ phases. - correct answer- concept,
disposal
The distinction between product life cycle and project life cycle
is that the latter does not include the ______ and ______. -
correct answer- operation, disposal
,3 | Page
___________ is the systematic numeric method of classifying
various categories of costs for accounting purposes - correct
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) - correct
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 - correct 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 - correct 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 _____ - correct answer- Co-products
, 4 | Page
A key feature of a ____ is that it has low value in comparison
with the principal product(s) & may be discarded or sold -
correct answer- by-product
Types of Manufacturing Operations include _____, ______ run
and _____ shop - correct 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. - correct 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. - correct 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.
- correct answer- job shop
