ACSM CEP CORRECT EXAM TEST PAPER
QUESTIONS AND ANSWERS SURE A+
✔✔Direct Costs - ✔✔The costs related to completing work that are directly attributable
to its performance and are necessary for its completion. It includes the supervision
directly involved in the physical
✔✔Indirect Costs - ✔✔The cost not directly attributable to the completion of an activity,
typically allocated across all activities on a predetermined basis.
✔✔Lang Factor - ✔✔It is a technique proposed by H. J. Lang. Lang suggested
multiplying the cost of the equipment by a factor (Lang Factor) to obtain total process
plant cost. Total plant Cost = Total equipment cost x Lang factor
✔✔Hand Factor - ✔✔Hand factor method uses different factor for different types of
equipment. Different from Lang factor method when the cost of the equipment are
multiplied by its factors we obtain the direct field costs. Indirect field costs, home office
costs and OSBL costs are excluded from the final result. Direct field Cost = Equipment
cost x Hand factor
✔✔Average crew Composite rate - ✔✔They are the same and consist in develop an
average rate between crafts of different experiences and wage rates.
, ✔✔Bureden - ✔✔It is the cost of maintaining an office with staff, other than operating
personnel. Also includes federal, state and local taxes, fringe benefits and other union
contract obligations
✔✔Bare Rate - ✔✔Bare labor rate is the gross direct wage paid to the worker
✔✔unbalance estimate technique - ✔✔It is a technique used to allocate estimate costs
to accounts whose definitions do not reflect the nature of the cost being allocated. The
objective is to achieve a desired business result, such improve cash flow.
✔✔estimate process steps - ✔✔Scoping Quantification Costing Pricing Conditioning
✔✔KSA - ✔✔Knowledge, skills and abilities
✔✔Cost Category - ✔✔A division in a system of classification for estimated and
expensed money for which cost are to be
summarized.
✔✔Why estimate classifications are important? - ✔✔Because they assist all parties in
gaining a mutual understanding of the basis of the estimate, as well as the expected
accuracy of the estimate
✔✔Indirect Costs - ✔✔Labor fringe benefits and taxes
✔✔fringe benefits - ✔✔Expenses of employment like holidays, sick leave, health and
welfare benefits, retirement funds and training.
✔✔unit cost - ✔✔Unit cost is the cost of a given unit of product or service.
✔✔unit hours - ✔✔Unit hours are the work hours per unit of production.
✔✔Distributable - ✔✔The portion of project's cost that cannot be associated with any
specific direct account in construction, it includes: Field non manual staff, field office,
office supplies, small tools, construction equipment, and labor burden.
✔✔Mark up - ✔✔General overhead, profit, and other indirect costs
✔✔Gross Profit - ✔✔Sales revenues less directs and indirect costs of goods sold
✔✔Operating Profits - ✔✔Gross Profits less expenses (selling, administrative,
depreciation)
✔✔Net Profits - ✔✔Operating Profits less Miscellaneous income and expenses (patent
royalties, interests, capital gains) and federal taxes
QUESTIONS AND ANSWERS SURE A+
✔✔Direct Costs - ✔✔The costs related to completing work that are directly attributable
to its performance and are necessary for its completion. It includes the supervision
directly involved in the physical
✔✔Indirect Costs - ✔✔The cost not directly attributable to the completion of an activity,
typically allocated across all activities on a predetermined basis.
✔✔Lang Factor - ✔✔It is a technique proposed by H. J. Lang. Lang suggested
multiplying the cost of the equipment by a factor (Lang Factor) to obtain total process
plant cost. Total plant Cost = Total equipment cost x Lang factor
✔✔Hand Factor - ✔✔Hand factor method uses different factor for different types of
equipment. Different from Lang factor method when the cost of the equipment are
multiplied by its factors we obtain the direct field costs. Indirect field costs, home office
costs and OSBL costs are excluded from the final result. Direct field Cost = Equipment
cost x Hand factor
✔✔Average crew Composite rate - ✔✔They are the same and consist in develop an
average rate between crafts of different experiences and wage rates.
, ✔✔Bureden - ✔✔It is the cost of maintaining an office with staff, other than operating
personnel. Also includes federal, state and local taxes, fringe benefits and other union
contract obligations
✔✔Bare Rate - ✔✔Bare labor rate is the gross direct wage paid to the worker
✔✔unbalance estimate technique - ✔✔It is a technique used to allocate estimate costs
to accounts whose definitions do not reflect the nature of the cost being allocated. The
objective is to achieve a desired business result, such improve cash flow.
✔✔estimate process steps - ✔✔Scoping Quantification Costing Pricing Conditioning
✔✔KSA - ✔✔Knowledge, skills and abilities
✔✔Cost Category - ✔✔A division in a system of classification for estimated and
expensed money for which cost are to be
summarized.
✔✔Why estimate classifications are important? - ✔✔Because they assist all parties in
gaining a mutual understanding of the basis of the estimate, as well as the expected
accuracy of the estimate
✔✔Indirect Costs - ✔✔Labor fringe benefits and taxes
✔✔fringe benefits - ✔✔Expenses of employment like holidays, sick leave, health and
welfare benefits, retirement funds and training.
✔✔unit cost - ✔✔Unit cost is the cost of a given unit of product or service.
✔✔unit hours - ✔✔Unit hours are the work hours per unit of production.
✔✔Distributable - ✔✔The portion of project's cost that cannot be associated with any
specific direct account in construction, it includes: Field non manual staff, field office,
office supplies, small tools, construction equipment, and labor burden.
✔✔Mark up - ✔✔General overhead, profit, and other indirect costs
✔✔Gross Profit - ✔✔Sales revenues less directs and indirect costs of goods sold
✔✔Operating Profits - ✔✔Gross Profits less expenses (selling, administrative,
depreciation)
✔✔Net Profits - ✔✔Operating Profits less Miscellaneous income and expenses (patent
royalties, interests, capital gains) and federal taxes
