Certified Cost Professional Certification Study Guide 2nd Ed. Revised

The Certified Cost Professional (CCP) Certification Study Guide, 2nd Edition (CSG-2) is a companion workbook to the Skills and Knowledge of Cost Engineering, 6th Edition (S&K-6). The design and layout of this study guide is intended to assist readers in testing their knowledge of cost engineering by offering practice problems and questions related to the subject matter addressed in S&K-6. First published in 1996 as the CCC/CCE Certification Study Guide, the CCP Certification Study Guide has gone through several revisions and changes. In 2013 the name of the study guide was changed to the CCP Certification Study Guide to reflect the consolidation of CCC/CCE credentials by AACE International. For the latest information on all of the AACE certifications, visit the AACE International website at: www.aacei.org How to Use this Book The chapters and topics presented in this publication correspond to specific chapters in the Skills and Knowledge of Cost Engineering (S&K-6). The reader should use this publication in conjunction with S&K-6. Together, these publications provide readers with the knowledge base expected of a cost-engineering professional as outlined in Recommended Practice 11R-88, Required Skills and Knowledge of Cost Engineering and the TCM Framework, 2nd Edition. This publication has two specific objectives: To provide a summary of specific knowledge areas and the associated key terms that a cost engineering professional should comprehend, at a minimum, when preparing for the Certified Cost Professional (CCP) certification exam. To provide sample problems and questions for each topic area, as well as the associated answers, to exercise the reader’s understanding of the concepts and skills presented in S&K-6. The S&K-6 and CCP CSG-2 are companion publications which serve as reference texts for individuals preparing for the Certified Cost Professional (CCP) and other AACE International certification examinations. To further assist in preparation, the reader should visit the AACE International website at www.aacei.org for updates to the CCP certification as well as Recommended Practice 10S-90, Cost Engineering Terminology. Readers should begin their examination preparation by first studying the material presented in S&K-6 and then working out the sample problems and questions in the CCP CSG-2. The summary and key terms found in each chapter offer a checklist of the comprehensive knowledge needed to fully prepare for the examination. Readers may have to go back and forth between the two publications to gain a full understanding of the subject matter as they attempt the exercise problems and questions. Please note that the actual certification examination questions are likely to address skills and knowledge from multiple chapters; therefore, a thorough understanding of the material is vitally important. In addition, the CCP CSG-2 includes several key appendices such as: (1) sample exam questions, (2) values of the standard normal distribution, and (3) the discrete compound interest tables. Acknowledgements This work is an undertaking of the AACE Education Board. A work of this magnitude and quality cannot be completed without dedicated contributions from (i) the Education Board champions/associate editors who identified subject matter experts and diligently followed up with them to write and/or revise the chapter summaries and the related questions, (ii) all the authors for their contribution to this publication, (iii) the reviewers who methodically evaluated each chapter for accuracy and depth of questions covered, as well as, (iv) my graduate students - Sayanti Mukhopadhyay and Saumyang Patel and all the AACE staff who worked with me and contributed countless hours in making this project successful. My special thanks are due to Mark Chen and John Hines for their support and dedication.