AACE International CCP Dumps Questions Answers

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.

Given Scenario:

The scenario involves a unit price contract between the owner and the contractor.

A unit price contract stipulates that the owner will pay the contractor for the actual quantities used at the bid unit rates. Typically, the contractor agrees to perform at or below the bid unit rate, while the owner may account for the possibility that the quantities could exceed the estimated range. The scenario best fits with the concept that:

The contractor can perform at or below the bid unit rate.

The owner recognizes that quantities may vary but are expected to be within an estimated range.

Based on the capital recovery analysis and considering the salvage value and the cost of capital, if the calculated capital recovery value is favorable and meets the investment criteria, the correct conclusion is that the pressshould be purchased. Thus, the correct answer isD. Yes.

Top of Form

Bottom of Form