AACE International CCP Exam With Confidence Using Practice Dumps

Cost Variance (CV)is an EVM metric that indicates whether the project is under or over budget by comparing the earned value to the actual cost.

Key Points:

CV Formula:

CV = BCWP - ACWP

BCWP = 105,000 work hours

ACWP = 110,000 work hours

Calculation:

CV = 105,000 - 110,000 = -5,000 work hours

Interpretation:

A negative CV indicates that the project is over budget, as more work hours were paid for than were earned.

Conclusion:The correct answer isA. BCWP-ACWP = 105,000-110,000 = -5,000because this calculation accurately reflects the cost variance of the project.

In a construction company, profitability analysis typically involves calculating theReturn on Investment (ROI)andRate of Return (ROR). ROI measures the profitability of an investment by comparing the gain from the investment to its cost, while ROR calculates the percentage return on each dollar invested. These metrics are critical in determining the financial performance and efficiency of investments in the construction industry.

The weighted average unit cost takes into account both the cost and the quantity:

Weighted Average=∑(Unit Cost×Quantity)∑Quantities\text{Weighted Average} = \frac{\sum (\text{Unit Cost} \times \text{Quantity})}{\sum \text{Quantities}}Weighted Average=∑Quantities∑(Unit Cost×Quantity)​

Multiplying each unit cost by the respective quantity:

(55.00×147)+(34.50×143)+(37.30×462)+(55.00×530)+(40.00×308)+(26.78×45)+(46.59×256)+(75.00×176)+(65.00×80)(55.00 \times 147) + (34.50 \times 143) + (37.30 \times 462) + (55.00 \times 530) + (40.00 \times 308) + (26.78 \times 45) + (46.59 \times 256) + (75.00 \times 176) + (65.00 \times 80)(55.00×147)+(34.50×143)+(37.30×462)+(55.00×530)+(40.00×308)+(26.78×45)+(46.59×256)+(75.00×176)+(65.00×80)

Summing these and dividing by the total quantity:

Weighted Average=20941.6+4933.5+17247.6+29150.0+12320.0+1205.1+11926.1+13200.0+5200.02147\text{Weighted Average} = \frac{20941.6 + 4933.5 + 17247.6 + 29150.0 + 12320.0 + 1205.1 + 11926.1 + 13200.0 + 5200.0}{2147}Weighted Average=214720941.6+4933.5+17247.6+29150.0+12320.0+1205.1+11926.1+13200.0+5200.0​

This gives a weighted average of approximately$47.63, makingB. $47.63the correct answer.