1|Page
PRIMER AACE CCT EXAM AND
PRACTICE EXAM QUESTIONS WITH
COMPLETE SOLUTIONS GUARANTEED
PASS (2025/2026)
Fair Market Value-in-Exchange - ANSWER ->value of equipment in
terms of the money that can be expected to be exchanged in a
third-party transaction between a willing buyer, who is under no
compulsion to buy, and a willing seller, who is under no
compulsion to sell, both being fully aware of all relevant facts
(also referred to as retail value) [S&K 5th Ed.,
6.1].
Orderly Liquidation Value - ANSWER ->probable price for all
capital assets and equipment in terms of money that could be
realized from a properly executed orderly liquidation type of sale,
given a maximum time of six months to conduct such sale and
adequate funds available for the remarketing campaign.
(also referred to as wholesale value) [S&K 5th Ed., 6.1].
Forced Liquidation Value - ANSWER ->value of equipment in
terms of money that can be derived from a properly advertised
and conducted auction where time is of the essence (also
referred to as "under the hammer" or "blow-out" value) [S&K
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5th Ed.]
Salvage Value/Part-Out Value - ANSWER ->value of equipment in
terms of money that a buyer will pay to a seller, recognizing the
component value of parts of the equipment that can be used or
resold to end-users, usually for repair or replacement purposes
[S&K 5th Ed., 6.2].
Scrap Value - ANSWER ->is the value of equipment in terms of
money that relates to the equipment's basic commodity value
[S&K 5th Ed.,6.2].
Book Value (NET) - ANSWER ->(1) Current investment value on
the books calculated as original value less depreciated accruals.
2) New asset value for accounting use.
3) The value of an outstanding share of stock of a corporation at
any one time, determined by the number of shares of that
class outstanding [RP10S-90].
Residual or Economic Value - ANSWER ->The value of property in
view of all its expected economic uses, as distinct from its value
in view of any particular use. Also, economic value reflects the
importance of a property as an economic means to an end, rather
than as an end in itself [RP10S-90].
Operating Cost - ANSWER ->The expenses incurred during the
normal operation of a facility, or component, including labor,
materials, utilities, and other related costs. Includes all fuel,
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lubricants, and normally scheduled part changes in order to keep
a subsystem, system, particular item, or entire project
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
_________ - 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 - 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 - 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
, 4|Page
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 - 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. - 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 - 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) - ANSWER ->Job
Costing, Job Costing
PRIMER AACE CCT EXAM AND
PRACTICE EXAM QUESTIONS WITH
COMPLETE SOLUTIONS GUARANTEED
PASS (2025/2026)
Fair Market Value-in-Exchange - ANSWER ->value of equipment in
terms of the money that can be expected to be exchanged in a
third-party transaction between a willing buyer, who is under no
compulsion to buy, and a willing seller, who is under no
compulsion to sell, both being fully aware of all relevant facts
(also referred to as retail value) [S&K 5th Ed.,
6.1].
Orderly Liquidation Value - ANSWER ->probable price for all
capital assets and equipment in terms of money that could be
realized from a properly executed orderly liquidation type of sale,
given a maximum time of six months to conduct such sale and
adequate funds available for the remarketing campaign.
(also referred to as wholesale value) [S&K 5th Ed., 6.1].
Forced Liquidation Value - ANSWER ->value of equipment in
terms of money that can be derived from a properly advertised
and conducted auction where time is of the essence (also
referred to as "under the hammer" or "blow-out" value) [S&K
,2|Page
5th Ed.]
Salvage Value/Part-Out Value - ANSWER ->value of equipment in
terms of money that a buyer will pay to a seller, recognizing the
component value of parts of the equipment that can be used or
resold to end-users, usually for repair or replacement purposes
[S&K 5th Ed., 6.2].
Scrap Value - ANSWER ->is the value of equipment in terms of
money that relates to the equipment's basic commodity value
[S&K 5th Ed.,6.2].
Book Value (NET) - ANSWER ->(1) Current investment value on
the books calculated as original value less depreciated accruals.
2) New asset value for accounting use.
3) The value of an outstanding share of stock of a corporation at
any one time, determined by the number of shares of that
class outstanding [RP10S-90].
Residual or Economic Value - ANSWER ->The value of property in
view of all its expected economic uses, as distinct from its value
in view of any particular use. Also, economic value reflects the
importance of a property as an economic means to an end, rather
than as an end in itself [RP10S-90].
Operating Cost - ANSWER ->The expenses incurred during the
normal operation of a facility, or component, including labor,
materials, utilities, and other related costs. Includes all fuel,
,3|Page
lubricants, and normally scheduled part changes in order to keep
a subsystem, system, particular item, or entire project
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
_________ - 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 - 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 - 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
, 4|Page
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 - 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. - 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 - 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) - ANSWER ->Job
Costing, Job Costing
