Question 1

Which of the following is not an example of a variable?

Options :

A : Size

B : Weight

C : Shape

D : Stamping tool

Answer: D

Question 2

A Basis of Estimate (BOE)...

Options :

A : Will not address any anomalies or other shortcomings of the estimate or scoping documents

B : Should not describe the accuracy of the estimate, leaving that up to the independent judgment of the stakeholders

C : Should not discuss drawbacks or shortcomings of the scoping documents in order to not antagonize their developer

D : Will describe the primary estimating methodology used in preparation of the estimate

Answer: D

Question 3

If you suspect a contractor’s bid estimate is unbalanced, which of the following best describes what to look for in an estimate review?

Options :

A : Errors and omissions concentrated in only a few elements of the work breakdown or cost account structure

B : Items that will be purchased or installed early and seem to have very high cost values

C : Extremely high escalation costs, particularly for those items installed later in the project schedule

D : Allowances for overtime that on balance appear to be excessive

Answer: B

Question 4

Management perceives strong competition for the project being bid, but very much wants to be awarded the contract. As a result what action are they likely to take?

Options :

A : All of the Answers are correct

B : Direct the cost to be reduced

C : Reduce the general and administrative cost

D : Reduce the profit margin

Answer: A

Question 5

As a cost professional, you are requested to perform project screening in ten minutes. Which one of following projects is worthy of further review?

Options :

A : Project B requires $30 million investment, resulting in $14 million in benefits

B : Project A requires $50 million investment, resulting in $20 million in benefits

C : Project C requires $40 million investment, resulting in $15 million in benefits

D : Project D requires $20 million investment, resulting in $3 million in benefits

Answer: A

Free AACE-CEP Mock Exam – Practice Online Confidently

Buying Options: