AACE International Certified Cost Professional (CCP) Exam CCP Question # 27 Topic 3 Discussion

AACE International Certified Cost Professional (CCP) Exam CCP Question # 27 Topic 3 Discussion

CCP Exam Topic 3 Question 27 Discussion:
Question #: 27
Topic #: 3

A used concrete pumping truck can be purchased for $125,000. The operation costs are expected to be $65,000 the first year and increase 5% each year thereafter. As a result of the purchase, the company will see an increase in income of $100,000 the first year and 5% more each subsequent year. The company uses straight-line depreciation. The truck will have a useful life of five (5) years and no salvage value. Management would like to see a 10% return on any investment. The company's tax rate is 28%.

Which of the following statements of the measures of central tendency is correct?


A.

The mean is the measure that of the large data set


B.

The median is the measure that is mostly affected by extreme values


C.

The mode only uses the two extreme values and ignores the test of the data set


D.

The mode would be frequently applied in marketing to determine shirt sizes or shoes sizes


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