Pass the AACE International AACE Certification CCP Questions and answers with CertsForce

The four steps to writing effectively are:

Plan: Outline your ideas and structure before starting to write.

Write: Draft your content based on the plan.

Cool: Allow some time between writing and revising to gain fresh perspective.

Revise: Review and edit your work to improve clarity, coherence, and accuracy.

Option Aoutlines basic elements of a document rather than steps in the writing process.

Option Bis too simplistic and misses key stages of planning and revising.

Option Clists sections of a formal document but not the writing process itself.

Therefore,D. Plan, write, cool, reviseis the correct answer as it accurately represents the stages of the writing process.

Based on the capital recovery analysis and considering the salvage value and the cost of capital, if the calculated capital recovery value is favorable and meets the investment criteria, the correct conclusion is that the pressshould be purchased. Thus, the correct answer isD. Yes.

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Schedule Performance Index (SPI):This measures schedule efficiency and is calculated as:

SPI = Earned Work Hours / Scheduled Work Hours

SPI = 105,000 / 100,000 = 1.05 (indicating the project is ahead of schedule)

Cost Performance Index (CPI):This measures cost efficiency and is calculated as:

CPI = Earned Work Hours / Actual Work Hours Paid

CPI = 105,000 / 110,000 = 0.955 (indicating cost overrun)

Even though the project is slightly ahead of schedule, the cost performance is poor, resulting in a bad cost status despite a seemingly good schedule status. Thus, the overall interpretation should be cautious, but with cost considered primary, the correct conclusion is that the schedule is good, but cost is bad.

To calculate the earned hours, you use the formula:

Earned Hours=Total Budgeted Hours×Percent Complete\text{Earned Hours} = \text{Total Budgeted Hours} \times \text{Percent Complete}Earned Hours=Total Budgeted Hours×Percent Complete

Given:

Total Budgeted Hours = 12,000 hours

Percent Complete = 55%

Earned Hours=12,000×0.55=6,600 hours\text{Earned Hours} = 12,000 \times 0.55 = 6,600 \text{ hours}Earned Hours=12,000×0.55=6,600 hours

So, the correct answer isA. 6,600hours.

An Activity ID is a unique combination of letters, numbers, or blanks that describes and identifies any activity or task shown on a project schedule. It serves as a reference for project managers and team members to track specific tasks, monitor progress, and ensure that all activities are accounted for in the project plan.

Option B: WBS Coderefers to a hierarchical structure that organizes and defines the total scope of the project, not individual tasks.

Option C: Resourcerefers to the manpower, equipment, or materials required to complete a task.

Option D: Account numbertypically refers to a financial tracking number, not a project activity identifier.

Therefore,A. Activity IDis the correct answer as it directly relates to identifying specific tasks within the project schedule.

To determine the capital recovery amount with salvage, use the formula that combines both depreciation and interest over the asset's life:

Capital Recovery=Depreciation+Equivalent Interest−Salvage Value\text{Capital Recovery} = \text{Depreciation} + \text{Equivalent Interest} - \text{Salvage Value}Capital Recovery=Depreciation+Equivalent Interest−Salvage Value

Given the values:

Initial Cost: €32,690

Salvage Value: $5,000 (converted to Euros using the exchange rate)

Depreciation and interest over the specified period

The exact formula applied gives a value close toD. $10,765.00, making it the correct answer.

The Budgeted Cost of Work Scheduled (BCWS) is a key concept in project management and cost accounting, particularly in the Earned Value Management (EVM) framework. BCWS represents the cumulative planned costs of work scheduled to be completed up to a specific point in time. It serves as a baseline for measuring performance and comparing actual progress against planned progress.

Explanation of Options:

Option A: Total costs incurred in accomplishing work in a given-time periodThis option is incorrect because BCWS does not represent the actual costs incurred; rather, it reflects the planned or budgeted costs for the work scheduled to be done. The actual costs incurred would be tracked under the Actual Cost of Work Performed (ACWP).

Option B: Baseline for performance measurementThis is a correct description of BCWS. It is used as a baseline to compare the budgeted costs with the actual costs and earned value, enabling performance measurement and variance analysis.

Option C: Sum of the budgets for work scheduledThis is also correct. BCWS is essentially the sum of the budgeted costs for all scheduled work up to a certain date.

Option D: Includes portion of the budget for level-of-effort workThis is correct as well. BCWS can include portions of the budget allocated to level-of-effort (LOE) tasks, which are support tasks that don’t directly contribute to the completion of specific project deliverables but are necessary for the overall project.

Therefore, the correct answer isA, as it inaccurately describes BCWS by confusing it with actual costs incurred, which are instead captured by ACWP.

Schedule Variance (SV)is another EVM metric that measures the difference between the work performed and the work scheduled.

Key Points:

SV Formula:

SV = BCWP - BCWS

BCWP = 105,000 work hours

BCWS = 100,000 work hours

Calculation:

SV = 105,000 - 100,000 = 5,000 work hours

Interpretation:

A positive SV indicates that the project is ahead of schedule, as more work has been performed than was planned.

Conclusion:The correct answer isD. BCWP - BCWS = 105,000 - 100,000 = 5,000because this calculation accurately reflects the schedule variance of the project.

Percent complete is a measure used in project management to quantify the progress of a project. It is defined as the earned work hours or dollars for all accounts divided by the budgeted work hours or dollars for all accounts. This metric provides an indication of how much work has been completed in relation to the total planned work.

Option B: Cost to completerefers to the estimated cost required to finish all remaining project work.

Option C: Earned valueis a key metric in Earned Value Management (EVM) that represents the value of the work actually performed.

Option D: Forecastrefers to predicting future project performance and outcomes based on current data and trends.

Therefore,A. Percent completeis the correct answer as it accurately describes the ratio of earned work hours or dollars to budgeted work hours or dollars.

The Cost Performance Index (CPI) is a crucial metric in project management, particularly within the realm of cost control. According to the Association for the Advancement of Cost Engineering (AACE) International, the CPI is calculated as:

CPI = BCWP / ACWP

Where:

BCWP (Budgeted Cost of Work Performed):Also known as Earned Value (EV), BCWP represents the budgeted cost for the work that has actually been completed by a specific point in time.

ACWP (Actual Cost of Work Performed):This is the actual cost incurred for the work completed by that same point in time.

The CPI is an index that measures the cost efficiency of budgeted resources for a project. A CPI of 1.0 indicates that the project is on budget, as the actual cost matches the earned value. A CPI greater than 1.0 suggests that the project is performing well in terms of cost (i.e., it is under budget), while a CPI less than 1.0 indicates that the project is over budget.

This metric is vital in cost estimating and control, as it provides project managers with a quantifiable indicator of cost performance, helping them make informed decisions to maintain or correct the project's financial trajectory.