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CCP Questions Bank

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Total 189 questions

Certified Cost Professional (CCP) Exam Questions and Answers

Question 49

An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.

Answer the question using a straight line depreciation and a 10% interest rate.

The following question requires your selection of CCC/CCE Scenario 17 (4.2.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

Depreciation (in the United States) is calculated in accordance with which of the following?

Options:

A.

Modified Accelerated Cost Recovery System (MACRS)

B.

The Federal IRS Reform Act (FIRSRA)

C.

Generally Accepted Accounting Practices (GAAP)

D.

Accelerated Cost Recovery System (ACRS)

Question 50

Which of the following are used for profitability analysis in a construction company?

Options:

A.

Sum of years digits

B.

Return on Investment (ROI) and Rate of Return (ROR)

C.

Opportunity costs

D.

Booked costs

Question 51

A major theme park is expanding the existing facility over a five-year period. The design phase will be completed one year after the contract is awarded. Major engineering drawings will be finalized two years after the design contract is awarded and construction will begin three years after the award of thedesign contract. New, unique ride technology will be used and an estimate will need to be developed to identify these costs that have no historical data.

Which of the following percent complete measurement techniques is best suited for long-term non-production accounts (such as overhead accounts)?

Options:

A.

Ratio/level of effort

B.

Start/finish

C.

Units completed

D.

Incremental milestone

Question 52

An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.

Answer the question using a straight line depreciation and a 10% interest rate.

The following question requires your selection of CCC/CCE Scenario 17 (4.2.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

All of the following are included in "income tax" calculations except:

Options:

A.

Annual income

B.

Annual expenditures

C.

Depreciation

D.

Initial cost of investment

Page: 13 / 14
Total 189 questions