AACE CCT PRIMER EXAM AND PRACTICE EXAM NEWEST 2025 COMPLETE 250 QUESTIONS AND
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 _________ - (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
,AACE CCT PRIMER EXAM AND PRACTICE EXAM NEWEST 2025 COMPLETE 250 QUESTIONS AND
ANSWERS
___________ 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
,AACE CCT PRIMER EXAM AND PRACTICE EXAM NEWEST 2025 COMPLETE 250 QUESTIONS AND
ANSWERS
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
, AACE CCT PRIMER EXAM AND PRACTICE EXAM NEWEST 2025 COMPLETE 250 QUESTIONS AND
ANSWERS
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.
In the "one size fits all" approach, overhead and indirect costs and forced DOWN onto the product.
Activity Based Costing - (answer) A production process is broken down into ACTIVITIES. Typical
nomenclature is an "action verb-adjective-noun" grammar convention(inspect defective products, open
new customer accounts).
Operating Costs - (answer) Expenses incurred during the normal operation of a facility including labor,
materials, utilities, and other related costs. Examples: fuel, lubricants, scheduled part changes, building
maintenance, cleaning services, taxes
Manufacturing Costs - (answer) Variable & fixed, direct & indirect costs chargeable to the production of
a given product, usually expressed in cents or dollars per unit of production, or dollars per year
Maintenance Costs - (answer) Labor, material, & other related costs incurred in conducting corrective
and preventative maintenance and repair on a facility
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 _________ - (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
,AACE CCT PRIMER EXAM AND PRACTICE EXAM NEWEST 2025 COMPLETE 250 QUESTIONS AND
ANSWERS
___________ 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
,AACE CCT PRIMER EXAM AND PRACTICE EXAM NEWEST 2025 COMPLETE 250 QUESTIONS AND
ANSWERS
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
, AACE CCT PRIMER EXAM AND PRACTICE EXAM NEWEST 2025 COMPLETE 250 QUESTIONS AND
ANSWERS
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.
In the "one size fits all" approach, overhead and indirect costs and forced DOWN onto the product.
Activity Based Costing - (answer) A production process is broken down into ACTIVITIES. Typical
nomenclature is an "action verb-adjective-noun" grammar convention(inspect defective products, open
new customer accounts).
Operating Costs - (answer) Expenses incurred during the normal operation of a facility including labor,
materials, utilities, and other related costs. Examples: fuel, lubricants, scheduled part changes, building
maintenance, cleaning services, taxes
Manufacturing Costs - (answer) Variable & fixed, direct & indirect costs chargeable to the production of
a given product, usually expressed in cents or dollars per unit of production, or dollars per year
Maintenance Costs - (answer) Labor, material, & other related costs incurred in conducting corrective
and preventative maintenance and repair on a facility
