CCP Exam Dumps - Certified Cost Professional (CCP) Exam

Given Scenario:

Methods for creating critical path schedules are inquired.

ThePrecedence Diagramming Method (PDM)andArrow Diagramming Method (ADM)are commonly used for critical path schedules. The Gantt chart, while useful for visualizing schedules, does not inherently calculate the critical path.

Passive listeningoccurs when a person hears the words being said but does not fully process or receive the message behind those words. This type of listening involves a lack of engagement with the speaker and often results in missing key points or failing to understand the intended message. In contrast to active listening, where the listener actively engages with the speaker's words and tries to understand the meaning, passive listening is superficial and often ineffective in communication.

The design phase is in the preliminary stages and involves new ride technology with no historical data available.

Steps:

Determine which class of estimate is used in this context.

A Class 5 estimate, which is an order of magnitude estimate with +50%/-30% accuracy, is typically used for projects in the early design or concept stages where detailed data is unavailable.

Answer:A. Class 5 - order of magnitude estimate with +50% / -30% accuracy

Given Scenario:

The question asks who can best use an unbalanced bid methodology.

In both organizational structures (Plan A and Plan B), subcontractors often work under contractors and can use unbalanced bids to improve their payment schedule, especially when working under contractors as shown in both plans.

If the owner's primary goal is completion within budget, afixed pricecontract for both the engineer and the contractor is the best option. This contract type ensures that the costs are controlled, and there is less risk of budget overruns since both the engineer and the contractor are incentivized to work within the agreed budget. Therefore, the correct answer isD. Engineer — fixed price, contractor fixed price.

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The weighted average unit cost takes into account both the cost and the quantity:

Weighted Average=∑(Unit Cost×Quantity)∑Quantities\text{Weighted Average} = \frac{\sum (\text{Unit Cost} \times \text{Quantity})}{\sum \text{Quantities}}Weighted Average=∑Quantities∑(Unit Cost×Quantity)​

Multiplying each unit cost by the respective quantity:

(55.00×147)+(34.50×143)+(37.30×462)+(55.00×530)+(40.00×308)+(26.78×45)+(46.59×256)+(75.00×176)+(65.00×80)(55.00 \times 147) + (34.50 \times 143) + (37.30 \times 462) + (55.00 \times 530) + (40.00 \times 308) + (26.78 \times 45) + (46.59 \times 256) + (75.00 \times 176) + (65.00 \times 80)(55.00×147)+(34.50×143)+(37.30×462)+(55.00×530)+(40.00×308)+(26.78×45)+(46.59×256)+(75.00×176)+(65.00×80)

Summing these and dividing by the total quantity:

Weighted Average=20941.6+4933.5+17247.6+29150.0+12320.0+1205.1+11926.1+13200.0+5200.02147\text{Weighted Average} = \frac{20941.6 + 4933.5 + 17247.6 + 29150.0 + 12320.0 + 1205.1 + 11926.1 + 13200.0 + 5200.0}{2147}Weighted Average=214720941.6+4933.5+17247.6+29150.0+12320.0+1205.1+11926.1+13200.0+5200.0​

This gives a weighted average of approximately$47.63, makingB. $47.63the correct answer.

To calculate the return on investment (ROI) at the end of the fifth year, you consider the increase in income and the depreciation.

Depreciation per year:

Depreciation=Initial CostLife=125,0005=25,000\text{Depreciation} = \frac{\text{Initial Cost}}{\text{Life}} = \frac{125,000}{5} = 25,000Depreciation=LifeInitial Cost​=5125,000​=25,000

Given the income increase and cost increase, over five years, it's expected that the compounded growth and tax benefits through straight-line depreciation should yield a return greater than the required 10%. Therefore, the correct answer isA. Greater than 10%.

Fixed costsare costs that remain constant regardless of the level of production or business activity. These costs are independent of the system throughout and do not fluctuate with the amount of goods or services produced. In contrast, variable costs change in proportion to the level of production or business activity. Therefore, the correct answer isD. fixed costs.