In a fixed price contract the:
Answer(s): D
In a fixed price contract, the contractor is responsible for delivering the agreed scope for the contracted price and therefore assumes the performance risk associated with cost overruns, productivity, and execution efficiency.
When measuring progress using tasks that lack readily definable intermediate milestones and level of effort required is difficult to measure, the best methods to use is:
Answer(s): B
The start/finish method is best suited for tasks that lack measurable intermediate milestones and where effort is hard to quantify. This method allocates full progress credit at the end of the task, allowing simplified tracking when detailed progress measurement isn’t feasible.
A breach of contract can only occur when which of the following conditions is (are) present?1. The item must be contrary to the internet of the parties 2. The item must be contrary to the contract terms and conditions 3. The injured party must actually sustain additional or excess costs
Answer(s): C
For a breach of contract to be valid, the action must violate the contract's terms and conditions, and the injured party must incur actual damages or excess costs resulting from that breach. The intent of the parties (Item 1) is not a required legal condition for establishing breach.
Which if the following is not one of the requirements to form a contract?
A valid contract requires offer and acceptance, consideration, legality of purpose, and competent parties. An agent is not a required element to form a contract, though one may act on behalf of a party.
Which of the following comparisons is commonly used in forensics schedule analysis (FSA)?
The "as-planned vs as-built" comparison is a fundamental method in forensic schedule analysis. It compares the original project schedule to the actual progress achieved to identify delays, disruptions, and their causes.
_______________ refers to the process of calculating and reporting the non-monetary functions of the strategic asset portfolio.
Asset performance measurement refers to the process of quantifying and reporting how assets fulfill non-monetary strategic functions, such as reliability, availability, and service delivery — providing decision-makers with insights beyond just financial metrics.
A project’s data shows the budgeted cost of work scheduled as $27,000 and the actual cost of work performed as $25,000. If the baseline budget is $200,000 and the work progress is 12%, what is the cost performance index (CPI)?
Cost Performance Index is calculated by dividing earned value by actual cost. Earned value is determined from the baseline budget multiplied by percent complete, which gives $24,000. Dividing this by the actual cost of $25,000 results in a CPI of 0.96, indicating the project is slightly over budget.
You have recently been appointed as the Cost Engineer to oversee process improvement projects for a Discrete Part Manufacturer. You have been asked to calculate the CPI on a project initiated to implement a Value Stream Mapping Initiative. The accountant is only able to provide you with BAC and EAC figures of $5000 and $7500 respectively. The CPI is:
Cost Performance Index requires earned value and actual cost data. Budget at completion and estimate at completion alone do not provide sufficient information to determine cost efficiency, so the CPI cannot be calculated from the information given.
Post your Comments and Discuss AACE CCP-AACE exam prep with other Community members:
Our website is free, but we have to fight against AI bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the CCP-AACE content, but please register or login to continue.