1 | Page
AACE CCT PRIMER 100% PASS ASSURED
EXAMINATION 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
,2 | Page
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
,3 | Page
/______ 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
, 4 | Page
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
AACE CCT PRIMER 100% PASS ASSURED
EXAMINATION 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
,2 | Page
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
,3 | Page
/______ 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
, 4 | Page
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
