AACE CCT Primer Questions With Complete
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 _________ - 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
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 _________ - 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
