Free AACE International CCP Practice Exam with Questions & Answers | Set: 3

Given Scenario:

The question asks which of the following is not included in income tax calculations.

Income tax calculations typically include annual income, annual expenditures, and depreciation. The initial cost of investment is not directly included in income tax calculations but is used for calculating depreciation.

To determine the taxes due at the end of year five, we calculate the income before taxes, subtract the depreciation, and then apply the tax rate of 28%.

Year 5 Income:

Year 1 Income = $100,000

Each subsequent year increases by 5%, so Year 5 Income = $100,000 × (1.05)^4 = $121,550.63

Year 5 Operating Costs:

Year 1 Operating Costs = $65,000

Each subsequent year increases by 5%, so Year 5 Operating Costs = $65,000 × (1.05)^4 = $78,943.41

Depreciation (Straight-Line):

Depreciation = $125,000 ÷ 5 = $25,000 per year

Income Before Taxes (Year 5):

Income Before Taxes=121,550.63−78,943.41−25,000=17,607.22\text{Income Before Taxes} = 121,550.63 - 78,943.41 - 25,000 = 17,607.22Income Before Taxes=121,550.63−78,943.41−25,000=17,607.22

Taxes Due:

Taxes Due=17,607.22×0.28=4,930.02\text{Taxes Due} = 17,607.22 \times 0.28 = 4,930.02Taxes Due=17,607.22×0.28=

Effective communication involves several key principles:

Clarify your ideasbefore communicating to ensure your message is clear.

Examine the purposeof the communication to ensure it aligns with your goals.

Consider the total physical and human setting, as these factors can influence how your message is received.

Be mindful of overtones, which include non-verbal cues and implied meanings that accompany the basic content of your message.

Option Blists negative behaviors that are counterproductive to good communication.

Option Cprovides basic communication tips but lacks the depth and focus on the human elements.

Option Dis a general description of communication but does not outline specific principles.

The compound interest factor used to determine the present value in year 5 with a 10% interest rate is calculated as:

PV=1(1+i)nPV = \frac{1}{(1 + i)^n}PV=(1+i)n1​

For i=10.5%i = 10.5\%i=10.5% and n=5n = 5n=5:

PV=1(1.105)5≈0.6209PV = \frac{1}{(1.105)^5} \approx 0.6209PV=(1.105)51​≈0.6209

Thus, the correct answer isB. 0.6209.

Planning is the process of stating goals and determining the most effective way of reaching them. In project management, planning involves defining the project scope, objectives, and determining the steps necessary to achieve the desired outcomes. This includes identifying resources, establishing timelines, and creating a strategy to ensure that the project is completed on time, within budget, and to the required quality standards.

Option A: Implementingrefers to the execution phase, where the plans are put into action.

Option B: Mission Statementis a brief statement that defines the purpose or core values of an organization but is not a process.

Option C: Managinginvolves overseeing and coordinating the various aspects of a project, typically during the execution phase.

Thus,D. Planningis the correct answer as it is the process of stating goals and determining the methods to achieve them.

When estimating the cost of new, unique ride technology for which there is no historical data, the best approach is tobreak down the technology into components. This method involves dividing the new technology into smaller, more manageable parts, for which costs can be more easily estimated. By analyzing each component separately, you can apply known costing methods or seek specific vendor quotes for each part. This approach allows for a more accurate estimate when dealing with novel or complex technologies.

The median cost is found by ordering the unit costs and selecting the middle value. The ordered costs are:

$26.78, $34.50, $37.30, $40.00, $46.59, $55.00, $55.00, $65.00, $75.00

Since there are nine data points, the fifth value in this list is the median:

C. $40.00is the median unit cost.

Given Scenario:

The company needs to have $100,000 in five years, and you need to determine how much should be invested at the end of each year.

This involves calculating the annuity payment using the formula:

P=FV×r(1+r)n−1P = \frac{FV \times r}{(1 + r)^n - 1}P=(1+r)n−1FV×r​

where:

FV=100,000FV = 100,000FV=100,000

r=0.10r = 0.10r=0.10

n=5n = 5n=5

P=100,000×0.10(1+0.10)5−1=10,0000.61051≈15,937P = \frac{100,000 \times 0.10}{(1 + 0.10)^5 - 1} = \frac{10,000}{0.61051} \approx 15,937P=(1+0.10)5−1100,000×0.10​=0.6105110,000​≈15,937

Answer:A. $15,937

Given Data:

Hours expended: 10,278 hours

CPI (Cost Performance Index): 0.93

SPI (Schedule Performance Index): 1.03

To calculate Earned Hours:

Earned Value (EV) can be calculated using the formula: EV=AC×CPI\text{EV} = \text{AC} \times \text{CPI}EV=AC×CPI

However, since the question asks for hours earned rather than monetary values, we interpret "earned hours" as: Earned Hours=Hours Expended×SPI\text{Earned Hours} = \text{Hours Expended} \times \text{SPI}Earned Hours=Hours Expended×SPI

Therefore: Earned Hours=10,278×1.03≈10,586 hours\text{Earned Hours} = 10,278 \times 1.03 \approx 10,586 \text{ hours}Earned Hours=10,278×1.03≈10,586 hours

Answer:B. 10,586

In afixed price contract, the contractor agrees to deliver the project at a set price, regardless of the actual costs incurred. This means that the contractor assumes all the performance risk, as any cost overruns must be absorbed by the contractor. If the project costs more than the fixed price agreed upon, the contractor cannot charge the owner more. Conversely, if the project is completed under budget, the contractor benefits by retaining the difference.