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Exam Number : AACE-CCP
Exam Name : Certified Cost Professional (CCP)
Vendor Name : AACE
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Verified Technical Reference & Industry Insights


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AACE-CCP test Format | AACE-CCP Course Contents | AACE-CCP Course Outline | AACE-CCP test Syllabus | AACE-CCP test Objectives


Exam Code: AACE CCP
Exam Name: Certified Cost Professional (CCP)
Total number of questions: 119 simple and complex multiple-choice questions, plus one written memo question integrated in the exam.
Time Allotted: Candidates have up to 5 hours to complete the entire test (multiple-choice + memo).
Question Type: Multiple-choice
Passing Marks: You must achieve an overall result of at least 70% to pass the CCP exam.

1. Introduction and AACE CCP Certification Overview
This domain establishes the professional standards and the ethical framework for cost engineering.

- Total Cost Management (TCM): The systematic process of managing cost throughout the life cycle of any enterprise, program, facility, project, product, or service.
- Professional Ethics: AACE Code of Ethics, conflict of interest, and professional obligations.
- AACE Recommended Practices (RPs): Familiarity with standard documents like 10S-90 (Cost Engineering Terminology).

2. Cost Fundamentals
The building blocks of cost management, focusing on how costs are categorized and captured.

- Cost Elements: Direct vs. Indirect costs, Variable vs. Fixed costs, and Sunk costs.
- Labor Cost: Wage rates, fringe benefits, burdens, and labor productivity.
- Material Cost: Waste, spoilage, and freight/handling.
- Pricing vs. Costing: The difference between what it costs to produce and the market price charged.
- Activity-Based Costing (ABC): Assigning overhead and indirect costs to specific activities.

3. Cost Estimating
Focuses on the methodologies used to predict the cost of a project at various stages of development.

- AACE Estimate Classification: Class 5 (Conceptual) to Class 1 (Definitive/Check Estimate).
- Estimating Methods:
- Parametric: Using statistical relationships (e.g., cost per square foot).
- Analogous: Using historical data from similar past projects.
- Bottom-Up: Detailed breakdown of every component.
- Basis of Estimate (BOE): Documenting the scope, assumptions, and exclusions of an estimate.
- Factored Estimating: Using equipment-to-total cost ratios (e.g., Lang Factors).

4. Planning and Scheduling
The integration of time with cost, focusing on the Critical Path Method (CPM).

- Work Breakdown Structure (WBS): A hierarchical decomposition of the total scope of work.
- Network Logic: Precedence Diagramming Method (PDM), Lead/Lag, and Constraints.
- Float/Slack: Total Float (delay without affecting project finish) vs. Free Float.
- Schedule Compression: Crashing (adding resources) and Fast-Tracking (overlapping tasks).
- Resource Leveling: Adjusting the schedule to address resource over-allocation.

5. Project and Cost Control
The process of measuring performance against a baseline to drive decision-making.

- Earned Value Management (EVM):
- PV (Planned Value): Budgeted cost of work scheduled.
- EV (Earned Value): Budgeted cost of work performed.
- AC (Actual Cost): Cost actually incurred.
- Performance Indices: CPI (Cost Performance Index) and SPI (Schedule Performance Index).
- Forecasting: Estimate at Completion (EAC) and Estimate to Complete (ETC).
- Variance Analysis: Cost Variance (CV) and Schedule Variance (SV).

6. Project Management
Broader management principles that intersect with cost engineering.

- Contract Types: Fixed Price, Cost-Reimbursable, and Time & Materials (T&M).
- Change Management: Managing deviations from the project baseline (Change Orders).
- Value Engineering (VE): Improving value by analyzing function while maintaining quality and cost.
- Quality Management: The cost of quality (prevention, appraisal, and failure costs).
- Project Leadership: Organizational structures (Matrix, Functional, Projectized) and team dynamics.

7. Economic Analysis, Statistics, Probability and Risk
The quantitative side of decision-making and uncertainty management.

- Economic Analysis:
- Time Value of Money (TVM): Net Present Value (NPV), Internal Rate of Return (IRR), and Simple/Compound Interest.
- Depreciation: Straight-line vs. Accelerated methods (MACRS).
- Break-even Analysis: Finding the point where total cost equals total revenue.

- Statistics & Probability:
- Descriptive Statistics: Mean, Median, Mode, and Standard Deviation.
- Probability Distributions: Normal, Beta, and Triangular distributions used in estimating.

- Risk Management:
- Risk Identification: SWOT analysis and Risk Breakdown Structure (RBS).
- Quantitative Risk Analysis: Monte Carlo Simulation and Expected Monetary Value (EMV).
- Risk Response: Avoid, Transfer, Mitigate, or Accept.



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