AACE International Exam CCP Topic 4 Question 25 Discussion

Actual exam question for AACE International's CCP exam

Question #: 25
Topic #: 4

[All CCP Questions]

A used concrete pumping truck can be purchased for $125,000. The operation costs are expected to be $65,000 the first year and increase 5% each year thereafter. As a result of the purchase, the company will see an increase in income of $100,000 the first year and 5% more each subsequent year. The company uses straight-line depreciation. The truck will have a useful life of five (5) years and no salvage value. Management would like to see a 10% return on any investment. The company's tax rate is 28%.

Which of the following statements is correct?

AThe graph of a normal curve is bell-shaped and is symmetrical about the standard deviation.

BThe graph of a normal curve is bell-shaped and is symmetrical about the variance.

CSome graphic methods for describing quantitative data ate histograms and frequency distribution.

DSome graphic methods for describing qualitative data are histograms and frequency distribution.

Show Suggested Answer

Suggested Answer: C

Histograms and frequency distributions are common graphical methods used to describe quantitative data, which involves numerical values that can be measured. These methods help visualize the distribution, frequency, and central tendency of the data. Qualitative data, on the other hand, is described using different methods such as bar charts and pie charts, not histograms or frequency distributions. Therefore, the correct answer is C. Some graphic methods for describing quantitative data are histograms and frequency distribution.

by Zena at Mar 19, 2025, 09:19 PM

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1 months ago

This question is definitely not about normal curves or graphic methods. It's clearly a question about the financial analysis of a concrete pumping truck investment. The correct answer should be related to the net present value, payback period, or internal rate of return.

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Tony

23 days ago

I think the correct answer should be related to the net present value calculation.

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Tony

25 days ago

C) Some graphic methods for describing quantitative data are histograms and frequency distribution.

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Tony

27 days ago

A) The graph of a normal curve is bell-shaped and is symmetrical about the standard deviation.

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