AACE CCT Primer Questions With
Complete Solutions
The sum of the practices and processes that an enterprise uses to manage the total life cycle cost investment in its portfolio of strategic assets is called _________ correct answer: Total Cost Management
______ is the application of scientific principles and techniques to problems of : - estimation - cost control - business planning & management science - profitability analysis - project management - planning & scheduling correct answer: Cost Engineering
_______ Is the value of an activity or asset. Generally, this value
is determined by the cost of the resources that are expended to complete the activity or produce the asset. An example would be
the facilities needed to produce an activity or asset, which would
include the tooling, electricity, taxes, and maintenance, etc., necessary to keep the facility available for use. Other costs might be office supplies, communication costs, travel costs, and security costs correct answer: Cost
Any consumable, except time, required to accomplish an activity
are considered _______. From a total cost and asset management perspective, _______ may include any real or potential investment in strategic assets including time, monetary,
human, and physical. correct answer: Resources, Resources
A resource becomes a cost when it is ______ or consumed in an _____or project correct answer: invested, project
Material, labor, and "other" are categories of _________. correct
answer: Resources
The product lifecycle is the complete history of a product through its ______, definition, production, operation, and obsolescence /______ phases. correct answer: concept, disposal
The distinction between product life cycle and project life cycle is that the latter does not include the ______ and ______. correct
answer: operation, disposal
___________ is the systematic numeric method of classifying various categories of costs for accounting purposes correct answer: Code of Accounts
______ is used used in situations where each job is different and
is performed to the customer's specifications. ______ involves keeping an account of direct costs (labor, machine time, raw materials) and indirect costs (overheads) correct answer: Job Costing, Job Costing
A process is a sequence or independent & linked procedures which ___________ to convert inputs into outputs. These outputs then serve as inputs for the next stage until a known goal
or end result is reached correct answer: consume resources A _____ is a good, idea, method, information, object, service, etc, that is the end result of a process & serves as a need or want satisfierProduct correct answer: Product
Product manufactured along with a different product, in a process in which both are required in the production of another product are considered _____ correct answer: Co-products
A key feature of a ____ is that it has low value in comparison with the principal product(s) & may be discarded or sold correct answer: by-product
Types of Manufacturing Operations include _____, ______ run and _____ shop correct answer: Process, Batch, Job
This manufacturing operation runs almost continuously making the same thing. Examples are refining and chemical plants, and very long run assembly operations. correct answer: Process
A ______ characterized by setting up for one product, producing
a set quantity of product, and then shutting down to change over to producing another product. correct answer: Batch Run
A _______ Similar to a batch run operation, except that you only produce 1 of the item. Each job results in a customized product. Examples are metal fabrication, prototype, fabrication. correct answer: job shop
Roles such as executive/senior management, legal, HR, business
development, etc. These roles are the farthest removed from the actual production of discrete product at the various facilities. They are shared across many production locations and considered ______. correct answer: overhead
______ are field/plant support personnel, located at the site. These resources help the operation run smoothly. These are people like local payroll, facility maintenance, site project controls, site senior (office-based) supervisors and management who are shared across the various products the particular location produces. correct answer: Indirects
_______are the remote location people directly involved in producing the product. These are the easiest to correlate their effort to a particular product. First line supervisors are also normally considered ______. correct answer: Directs
The owner approaches cost from a _____ point of view. Owners not only consider the cost of the construction, or process, but ______ supervision
and overhead, implementation costs, cost of money, furniture, fixtures, equipment( FFE) and other considerations correct answer: holistic, internal
Contractors, subcontractors, suppliers only consider their part of the _______ and are responsible for that alone. correct answer: Project costs
Appraising or estimating the worth of something having economic or monetary value is the general description of ________. correct answer: valuation
