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AACE International CCP Exam - Topic 1 Question 39 Discussion

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:
C) Steel
A) None of the above
B) Manufacturing labor
D) Copper

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:

Show Suggested Answer Hide Answer
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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Salley
4 hours ago
Steel has been pretty stable though, not sure about that.
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Azalee
2 months ago
Definitely going with copper, it’s been trending up.
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Blair
2 months ago
I heard copper is on the rise!
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Carolynn
2 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?
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Carrol
2 months ago
I feel uncertain about steel; I thought it was projected to stabilize rather than increase. Maybe I should double-check the trends.
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Halina
3 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.
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Belen
3 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.
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