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AACE International AACE-PSP Exam - Topic 1 Question 53 Discussion

Based on the stated costs, what percentage of the total cost comes from the 2000 series of activities?
D) 2 4%
A) 3.3%
B) 2.2%
C) 23%

AACE International AACE-PSP Exam - Topic 1 Question 53 Discussion

Actual exam question for AACE International's AACE-PSP exam
Question #: 53
Topic #: 1
[All AACE-PSP Questions]

Based on the stated costs, what percentage of the total cost comes from the 2000 series of activities?

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Suggested Answer: D

Cost for 2000 Series Activities:

Activity 2001: $150,000.

Activity 2002: $25,000.

Activity 2003: $18,000.

Activity 2004: $96,000.

Total: 150,000+25,000+18,000+96,000=289,000150,000 + 25,000 + 18,000 + 96,000 = 289,000150,000+25,000+18,000+96,000=289,000.

Total Project Cost:

Total cost: $7,308,000 (sum of all activities in 'normal' schedule).

Percentage Contribution:

289,0007,308,0001003.95%frac{289,000}{7,308,000} times 100 approx 3.95%7,308,000289,0001003.95%.

Verification with PSP Guidelines: The PSP Study Guide emphasizes accuracy in percentage-based cost contributions as a critical analysis tool in project cost management (Ref: PSP Study Guide, Chapter 1B: Cost Breakdown Structure).


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Shelton
3 hours ago
I remember we did a similar question in class about calculating percentages from total costs, but I can't recall the exact formula we used.
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