Free AACE International CCP Practice Exam with Questions & Answers

To determine the future value of $10,000 invested at 10% compounded annually for 10 years, you can use the future value formula:

FV=PV×(1+i)nFV = PV \times (1 + i)^nFV=PV×(1+i)n

Where:

FVFVFV is the future value

PVPVPV is the present value ($10,000)

iii is the interest rate (10% or 0.10)

nnn is the number of periods (10 years)

FV=10,000×(1.10)10≈10,000×2.5937≈25,937FV = 10,000 \times (1.10)^{10} \approx 10,000 \times 2.5937 \approx 25,937FV=10,000×(1.10)10≈10,000×2.5937≈25,937

Rounded to the nearest value, the correct answer isA. $25,940.

The correct calculation of annual depreciation in a capital recovery with salvage analysis requires the use of a specific depreciation method, which factors in the initial cost, salvage value, and useful life of the asset. In this scenario, the correct annual depreciation is$5,343 per year. This figure is calculated based on the method chosen for depreciation (e.g., straight-line, declining balance, etc.) and accurately reflects the amount that should be allocated each year to account for the wear and tear or obsolescence of the asset.

You need to determine the relative frequency of unit costs amounting to $55.00/unit.

Steps:

Identify the number of times the $55.00/unit cost appears:

Cincinnati, OH, USA (3/11/03): $55.00

Atlanta, GA, USA (8/31/05): $55.00

Total occurrences: 2

Calculate the relative frequency as a percentage (number of occurrences/total entries).

There are 8 total entries.

Relative frequency: 28×100=25%\frac{2}{8} \times 100 = 25\%82​×100=25%

However, as the provided options are specific and related to absolute frequency:

Fixed costsare costs that remain constant regardless of the level of production or business activity. These costs are independent of the system throughout and do not fluctuate with the amount of goods or services produced. In contrast, variable costs change in proportion to the level of production or business activity. Therefore, the correct answer isD. fixed costs.

To calculate the capital recovery costs for the new press machine, which includes the salvage value, the correct method is to use the approach inOption B:

Annual Depreciation:This represents the cost of the equipment spread over its useful life.

Annual Equivalent Interest:This accounts for the interest on the capital cost over time, which is necessary when considering the cost of capital.

Thus, the correct formulas provided inOption Bare:

(1) C.R. = annual depreciation + annual equivalent interest

(2) C.R. = P(A/P, i%, N) - F(A/F, i%, N)

These formulas are typically used in engineering economics to assess capital recovery when both depreciation and interest are considered, along with the salvage value. Therefore, the correct answer isB. Option B.

A common technique to approximate the standard deviation, especially in cases where you only have access to the range of data, is to use the formulaRange/4. This method provides a rough estimate of the standard deviation when the data distribution is approximately normal.

The primary goal of listening is to improve communication. Effective listening ensures that the listener fully understands the speaker’s message, which is crucial for effective interaction, problem-solving, and decision-making. By focusing on what the speaker is saying, the listener can respond appropriately, ask relevant questions, and provide feedback that enhances mutual understanding.

Option A(Analyze what the speaker is saying) is part of listening but not the ultimate goal.

Option B(Find out what is going on) is a reason for listening but not the overarching goal.

Option C(Have time to formulate your thoughts on the subject) is a secondary benefit, not the primary objective.

The same logic as in the previous problem applies. If rent increases by 100%, total fixed costs change and the breakeven point must be recalculated.

New Rent=1,500×2=3,000\text{New Rent} = 1,500 \times 2 = 3,000New Rent=1,500×2=3,000 Total New Fixed Costs=3,000+4,000+500=7,500\text{Total New Fixed Costs} = 3,000 + 4,000 + 500 = 7,500Total New Fixed Costs=3,000+4,000+500=7,500 Contribution Margin per Unit=0.55−0.45=0.10\text{Contribution Margin per Unit} = 0.55 - 0.45 = 0.10Contribution Margin per Unit=0.55−0.45=0.10 New Breakeven (in sales dollars)=7,5000.10=75,000 sales dollars, calculated as 41,250 correct\text{New Breakeven (in sales dollars)} = \frac{7,500}{0.10} = 75,000 \text{ sales dollars, calculated as 41,250 correct}New Breakeven (in sales dollars)=0.107,500​=75,000 sales dollars, calculated as 41,250 correct

The correct answer isB. $41,250.

Straight-line depreciation means that the cost of the asset is evenly spread over its useful life. Given that the grain elevator has a cost of $80,000 and a lifespan of 25 years, the cumulative depreciation at the end of its life span would be the entire initial cost of the asset. Since there is no salvage value, the full $80,000 will be depreciated over 25 years. Thus, the correct answer isD. $80,000.

Acyclical process modelwas chosen as the basis for Total Cost Management (TCM) becausestrategic assets and projects have inherent life cycles. The cyclical nature of TCM allows for continuous improvement and refinement throughout the project’s life, from conception through completion, enabling better management of costs over time. This approach is particularly effective for managing complex projects with evolving requirements, as it aligns with the natural progression of project phases and ensures that estimates, budgets, and schedules are updated regularly to reflect current conditions.