CCP AACE International Certified Cost Professional (CCP) Exam Free Practice Exam Questions (2025 Updated)

Look at the projected cumulative inflation rates.

Steps:

Manufacturing Labor cumulative inflation over 4 years is the highest as per the table:

2.5% + 3.0% + 3.5% = 9.0%

Compare this with the inflation rates of Steel and Copper:

Steel = 2.5% + 2.5% + 3.0% + 2.0% = 10%

Copper = 1.0% + 1.5% + 2.0% + 2.5% = 7%

Thus, Steel has the greatest projected price index increase over the 4 years.

Answer:C. Steel

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.

To determine whether the villa is a good investment, we need to calculate the net present value (NPV) of the cash flows. We can discount the future cash flows (rental income minus maintenance costs) and the sale price of the villa back to the present value using the investor’s required rate of return of 12%. The villa can be recommended for purchase if its NPV is positive, except for the case where the purchase price is$94,500, which yields a negative NPV.

According toMaslow's hierarchy of needs, the first level that should be satisfied isPhysiologicalneeds. These are the basic needs necessary for human survival, such as food, water, and shelter. Maslow’s hierarchy is a motivational theory in psychology that comprises a five-tier model of human needs, often depicted as hierarchical levels within a pyramid. The basic idea is that the most fundamental level of needs must be met before an individual can attend to higher-level needs such as safety, love/belonging, esteem, and self-actualization.

Given Data:

Present-day price of equipment: $350,000

Manufacturing labor: 40% of total cost

To calculate the cost of manufacturing labor today:Manufacturing Labor Cost=40%×350,000=$140,000\text{Manufacturing Labor Cost} = 40\% \times 350,000 = \$140,000Manufacturing Labor Cost=40%×350,000=$140,000

Answer:A. $140,000

To calculate how many years it will take to earn $400 in interest on $800 at 4% compounded annually, we need to solve for nnn in the future value formula:

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

Where:

FVFVFV is the future value ($1,200 = $800 + $400)

PVPVPV is the present value ($800)

iii is the interest rate (4% or 0.04)

nnn is the number of years

1,200=800×(1.04)n1,200 = 800 \times (1.04)^n1,200=800×(1.04)n

Dividing both sides by 800:

1.5=(1.04)n1.5 = (1.04)^n1.5=(1.04)n

Taking the logarithm of both sides:

log⁡(1.5)=n×log⁡(1.04)\log(1.5) = n \times \log(1.04)log(1.5)=n×log(1.04) n=log⁡(1.5)log⁡(1.04)≈12n = \frac{\log(1.5)}{\log(1.04)} \approx 12n=log(1.04)log(1.5)​≈12

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=100,0001.331≈75,131PV = \frac{100,000}{(1 + 0.10)^3} = \frac{100,000}{1.331} \approx 75,131PV=(1+0.10)3100,000​=1.331100,000​≈75,131

TheCost Performance Index (CPI)is a key metric in Earned Value Management (EVM) that measures the cost efficiency of the work performed on a project.

Key Points:

CPI Formula:

CPI = BCWP / ACWP

BCWP (Budgeted Cost of Work Performed) = 105,000 work hours

ACWP (Actual Cost of Work Performed) = 110,000 work hours

Calculation:

CPI = 105,000 / 110,000 = 0.95

Interpretation:

A CPI of less than 1 indicates that the project is over budget, as the actual cost incurred is higher than the value of the work performed.

Conclusion:The correct answer isA. BCWP/ACWP = 105,000/110,000 = 0.95because this calculation accurately reflects the cost efficiency of the project.

The range of estimated quantities is the difference between the largest and smallest quantities in the dataset.

Smallest Quantity = 45 Largest Quantity = 530

So, the range is from45 to 530, makingC. $45 to $530the correct answer.

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.

Anactivityis a fundamental unit of work that must be performed over a specific period to complete a project. In project management, activities are the individual tasks or components that make up the project's work breakdown structure (WBS). Each activity is defined by its duration, required resources, and dependencies on other activities.

Activities are the building blocks of a project schedule, and understanding them is crucial for effective project planning, scheduling, and execution. By breaking down a project into activities, project managers can better estimate time and resources, monitor progress, and make adjustments as necessary to keep the project on track.

In targeted marketing, themodeis often the best measure of central tendency because it identifies the most frequently occurring value in a data set. This can be crucial in marketing to determine the most common preferences or behaviors among a target audience, such as the most popular product size, color, or price point. Therefore, the correct answer isB. Mode.

If XYZ Services Company wants to achieve a net income of $550 per month, we first need to calculate the required contribution margin to cover both fixed costs and the desired profit:

Required Contribution Margin=Fixed Costs+Desired Profit=6,000+550=6,550\text{Required Contribution Margin} = \text{Fixed Costs} + \text{Desired Profit} = 6,000 + 550 = 6,550Required Contribution Margin=Fixed Costs+Desired Profit=6,000+550=6,550

Using the original contribution margin of $0.10 per unit:

Required Sales Units=6,5500.10=65,500 units\text{Required Sales Units} = \frac{6,550}{0.10} = 65,500 \text{ units}Required Sales Units=0.106,550​=65,500 units

Therefore,65,500 unitsmust be sold to achieve the desired net income of $550 per month.

For long-term, non-production accounts (such as overhead accounts), theRatio/level of effortmeasurement technique is best suited. This technique is used to measure work that doesn’t directly produce deliverables but contributes indirectly to project progress, such as administrative tasks, support activities, and management efforts. The level of effort is typically spread evenly over a time period and is often calculated based on the passage of time rather than specific work units or milestones.

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.