AACE CCT Primer questions and answers
2026\2027 A+ Grade
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
Valuation in _______ is the determination of the worth of the asset or that which has been damaged or
lost
- correct answer insurance, insured
Valuation in ________ is the determination of the dutiable value of imports by the customs authorities.
- correct answer International Trade
A(n) _________ represents the foregone benefit by choosing one alternative over another
- correct answer Opportunity cost
There is a relationship between time and the opportunity to influence a projects cost. The more time
that has elapsed, the ____ the chance to alter the cost. It is important to make the cost effective
decisions ______ in a project or process to have the most influence on cost.
- correct answer less, early
________focuses on external reporting. Maintain the balance sheet (assets and liabilities) and generate
income (revenues less expenses) and tax statements for the organization _________. Only look at
indirects costs as a whole, not broken out to individual products or departments.
- correct answer Managerial Accounting, as a whole
2026\2027 A+ Grade
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
Valuation in _______ is the determination of the worth of the asset or that which has been damaged or
lost
- correct answer insurance, insured
Valuation in ________ is the determination of the dutiable value of imports by the customs authorities.
- correct answer International Trade
A(n) _________ represents the foregone benefit by choosing one alternative over another
- correct answer Opportunity cost
There is a relationship between time and the opportunity to influence a projects cost. The more time
that has elapsed, the ____ the chance to alter the cost. It is important to make the cost effective
decisions ______ in a project or process to have the most influence on cost.
- correct answer less, early
________focuses on external reporting. Maintain the balance sheet (assets and liabilities) and generate
income (revenues less expenses) and tax statements for the organization _________. Only look at
indirects costs as a whole, not broken out to individual products or departments.
- correct answer Managerial Accounting, as a whole
