AACE International CCP Exam With Confidence Using Practice Dumps

In this problem, the key is to determine theBudgeted Cost of Work Performed (BCWP), which refers to the portion of the budget allocated for the completed work as of a particular point in time. The BCWP is also known as theEarned Value (EV). It is a critical measure in project management, particularly in the Earned Value Management (EVM) system, as it allows for a comparison between the planned progress and the actual progress of the project.

Given:

Baseline budget (Total Planned Budget or BAC):$1,000,000

Project duration:12 months

Budgeted Cost of Work Scheduled (BCWS) for the first month:$108,000

Actual Cost of Work Performed (ACWP) for the first month:$100,000

Total physical progress:9%

Steps to determine the BCWP:

Calculate the Planned Value (PV):

This is the value of the work planned to be completed by a specific time.

Here, PV for the first month is $108,000.

Determine the Actual Cost (AC):

The AC is the cost incurred for the actual work performed, which is $100,000 in this case.

Calculate the Earned Value (EV) or BCWP:

BCWP is calculated by multiplying the total physical progress by the Budget at Completion (BAC).

Given that the physical progress is 9%, the BCWP can be computed as:

BCWP=Physical Progress×BAC\text{BCWP} = \text{Physical Progress} \times \text{BAC} BCWP=Physical Progress×BAC BCWP=0.09×1,000,000=$90,000\text{BCWP} = 0.09 \times 1,000,000 = \$90,000BCWP=0.09×1,000,000=$90,000

Conclusion:

The Budgeted Cost of Work Performed (BCWP) for this project at the end of the first month is$90,000, which matches option A. This calculation is critical in project management for determininghow much of the budgeted work has been actually completed, enabling accurate performance assessment against the project baseline.

Productivity lossin projects, particularly in construction, can be measured using various methods. TheEarned Value Management (EVM)system includes theEarned Formulato compare the work performed against the work planned.

Key Points:

Earned Formula:

This formula is used in EVM to calculate key performance indicators like the Cost Performance Index (CPI) and Schedule Performance Index (SPI), which help in understanding productivity loss.

By comparing earned value (the work actually performed) against planned value, project managers can assess whether the project is behind or ahead in terms of schedule and budget, indirectly measuring productivity loss.

Other Options:

Central Limit Theorem:This is a statistical concept, not directly used for measuring productivity loss.

Value Engineering:A process that seeks to improve the value of goods or products by using an examination of function, not directly related to measuring productivity loss.

Conclusion:The correct answer isC. Earned formulabecause it is directly linked to measuring productivity loss in project management through the EVM system.

Deliberate low bidding, sometimes referred to as "buying the job," is a strategy where a contractor bids below cost to win a contract, with the expectation of recouping losses through change orders, future projects, or other means.

Key Points:

Reasons for Low Bidding:

Survival:Contractors might low bid to secure work during tough economic times.

Reducing Competition:A low bid can push competitors out of the market.

Detecting Errors:Identifying significant errors in the purchaser's RFQ might lead to a strategic low bid.

Backing Out of Bid Competition:

This option does not align with the strategy of low bidding. Backing out would remove the contractor from the competition entirely, which is contrary to the purpose of low bidding.

Conclusion:The correct answer isB. Backing out of the bid competitionbecause this action is not a reason for low bidding—it is the opposite of participating in the bid.