Discuss AACE International CCP Exam Topic 1 Question 39

The following question requires your selection of CCC/CCE Scenario 4 (2.7.50.1.1) from the right side of your split screen, using the drop down menu, to reference during your response/choice of responses.

At the end of Year 4, the commodity which experienced the greatest projected percentage price index increase over today is:

ANone of the above

BManufacturing labor

CSteel

DCopper

Suggested Answer: C

Look at the projected cumulative inflation rates.

Steps:

Manufacturing Labor cumulative inflation over 4 years is the highest as per the table:

2.5% + 3.0% + 3.5% = 9.0%

Compare this with the inflation rates of Steel and Copper:

Steel = 2.5% + 2.5% + 3.0% + 2.0% = 10%

Copper = 1.0% + 1.5% + 2.0% + 2.5% = 7%

Thus, Steel has the greatest projected price index increase over the 4 years.

Answer : C . Steel

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16 comments · newest first

Kerry 2 months ago

But the trends show Copper leading.

Mila 3 months ago

I feel like none of the above could be right.

Britt 3 months ago

Steel has been rising too, though.

Ellsworth 3 months ago

Copper is in high demand for electronics.

Cherry 3 months ago

Why Copper? What's the reasoning?

Kerry 3 months ago

Really? I lean towards Steel.

Ellsworth 3 months ago

I think it's definitely Copper.

Jenelle 4 months ago

Yeah, copper makes sense, I’m with you all!

Laurena 4 months ago

Wait, copper? Really? That seems too high.

Salley 4 months ago

Steel has been pretty stable though, not sure about that.

Azalee 6 months ago

Definitely going with copper, it’s been trending up.

Blair 6 months ago

I heard copper is on the rise!

Carolynn 6 months ago

I vaguely recall that none of the options might be correct based on recent reports. Could "None of the above" actually be the answer?

Carrol 6 months ago

I feel uncertain about steel; I thought it was projected to stabilize rather than increase. Maybe I should double-check the trends.

Halina 7 months ago

I think we practiced a similar question where copper had a significant price rise due to supply issues. It might be the one to choose here.

Belen 7 months ago

I remember we discussed how manufacturing labor can fluctuate based on demand, but I’m not sure if it would have the highest increase.

AACE International CCP Exam - Topic 1 Question 39 Discussion