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AACE CCT Primer Questions & 100%
Correct Answers
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
_________
✓ ~~> 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
✓ ~~> 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
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maintenance, etc., necessary to keep the facility available for use. Other
costs might be office supplies, communication costs, travel costs, and
security costs
✓ ~~> 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.
✓ ~~> Resources, Resources
A resource becomes a cost when it is ______ or consumed in an _____or
project
✓ ~~> invested, project
Material, labor, and "other" are categories of _________.
✓ ~~> Resources
The product lifecycle is the complete history of a product through its ______,
definition, production, operation, and obsolescence /______ phases.
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✓ ~~> concept, disposal
The distinction between product life cycle and project life cycle is that the
latter does not include the ______ and ______.
✓ ~~> operation, disposal
___________ is the systematic numeric method of classifying various categories
of costs for accounting purposes
✓ ~~> 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)
✓ ~~> 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
✓ ~~> consume resources
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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
✓ ~~> Product
Product manufactured along with a different product, in a process in which
both are required in the production of another product are considered _____
✓ ~~> 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
✓ ~~> by-product
Types of Manufacturing Operations include _____, ______ run and _____ shop
✓ ~~> 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.
✓ ~~> Process
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