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Prepare for the AACE International Certified Cost Professional (CCP) Exam exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.
QA4Exam focus on the latest syllabus and exam objectives, our practice Q&A are designed to help you identify key topics and solidify your understanding. By focusing on the core curriculum, These Questions & Answers helps you cover all the essential topics, ensuring you're well-prepared for every section of the exam. Each question comes with a detailed explanation, offering valuable insights and helping you to learn from your mistakes. Whether you're looking to assess your progress or dive deeper into complex topics, our updated Q&A will provide the support you need to confidently approach the AACE International CCP exam and achieve success.
The questions for CCP were last updated on Dec 21, 2024.
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As the leas cost engineer for the XYZ Services Company, you have been requested to provide pertinent for an equipment rental decision. The unit price of the food stuffs varies, but an average unit selling process has been determined to be $0.50 cents and the average unit acquisition cost is $0.40 cents.
The following revenue and expense relationships are predicted:
How many units are required per month to break even?
The break-even point is calculated by dividing the total fixed costs by the contribution margin per unit. Given the data:
Fixed Costs = $6,000
Contribution Margin per Unit = $0.10 ($0.50 - $0.40)
Break-evenunits=TotalFixedCostsContributionMarginperUnit=6,0000.10=60,000units\text{Break-even units} = \frac{\text{Total Fixed Costs}}{\text{Contribution Margin per Unit}} = \frac{6,000}{0.10} = 60,000 \text{ units}Break-evenunits=ContributionMarginperUnitTotalFixedCosts=0.106,000=60,000units
Therefore, 60,000 units must be sold per month to break even.
Money is value. Having money when you need it is very important. Money can also be valuable when used wisely by knowing when to spend and when to conserve Also, planning now for future expenses can be a plus to the company rather than a debit.
There are several ways to capitalize money and spending. Basically there is the single payment method that has a compound amount factor and a present worth factor. There is the uniform annual series that has a sinking fund factor, capital recovery factor and also the compound amount factor and present worth factor. At this point, we can assure money is worth 10%.
The following question requires your selection of CCC/CCE Scenario 7 (4.8.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.
If $20,000 is invested at the end of each fiscal year for the next 10 years, how much would our total investment be worth assuming the interest is at 10%?
Given Scenario:
You need to calculate the future value of a series of annual investments of $20,000 over 10 years at a 10% interest rate.
This requires calculating the future value of an annuity. The formula is:
FV=P((1+r)n1r)FV = P \times \left(\frac{(1 + r)^n - 1}{r}\right)FV=P(r(1+r)n1)
where:
P=20,000P = 20,000P=20,000 (annual payment)
r=0.10r = 0.10r=0.10 (interest rate)
n=10n = 10n=10 (number of years)
FV=20,000((1+0.10)1010.10)=20,000(2.593710.10)=20,00015.937318,740FV = 20,000 \times \left(\frac{(1 + 0.10)^{10} - 1}{0.10}\right) = 20,000 \times \left(\frac{2.5937 - 1}{0.10}\right) = 20,000 \times 15.937 \approx 318,740FV=20,000(0.10(1+0.10)101)=20,000(0.102.59371)=20,00015.937318,740
An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.
Answer the question using a straight line depreciation and a 10% interest rate.
If $100,000 is needed to purchase a piece of equipment 3 years from now, how much money needs to be invested today assuming a 10% rate of return (rounded to the nearest thousand)?
To determine how much money needs to be invested today to reach $100,000 in 3 years with a 10% rate of return, you use the present value formula:
PV=FV(1+i)nPV = \frac{FV}{(1 + i)^n}PV=(1+i)nFV
Where:
PVPVPV is the present value
FVFVFV is the future value ($100,000)
iii is the interest rate (10% or 0.10)
nnn is the number of periods (3 years)
PV=100,000(1+0.10)3=100,0001.33175,131PV = \frac{100,000}{(1 + 0.10)^3} = \frac{100,000}{1.331} \approx 75,131PV=(1+0.10)3100,000=1.331100,00075,131
An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.
Answer the question using a straight line depreciation and a 10% interest rate.
The main financial objective of many enterprises is:
The main financial objective of many enterprises is to maximize the total long-term economic return. This objective ensures that the company is focused on sustaining its profitability and growth over time, considering both current operations and future opportunities. This approach aligns with the overarching goal of increasing shareholder value and ensuring the financial health of the organization in the long term. Hence, the correct answer is A. To maximize the total long-term economic return.
The following question requires your selection of CCC/CCE Scenario 2 (2.3.50.1.2) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.
10,278 hours have been expended to date. The CPI at this point in time is 0.93. SPI is 1.03. How many hours were planned?
Planned Value (PV) can be interpreted in terms of hours as: PlannedHours=HoursExpendedSPI\text{Planned Hours} = \frac{\text{Hours Expended}}{\text{SPI}}PlannedHours=SPIHoursExpended
Therefore: PlannedHours=10,2781.039,979hours\text{Planned Hours} = \frac{10,278}{1.03} \approx 9,979 \text{ hours}PlannedHours=1.0310,2789,979hours
Answer : A. 9,979 (but option might not be available, so considering context, the closest
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