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AACE International CCP Exam - Topic 1 Question 39 Discussion

Actual exam question for AACE International's CCP exam
Question #: 39
Topic #: 1
[All CCP Questions]

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:

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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


Contribute your Thoughts:

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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.
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Belen
5 days 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.
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