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Exam CCP Topic 2 Question 149 Discussion

Actual exam question for AACE International's CCP exam
Question #: 149
Topic #: 2
In the application of the benefit/cost method of analysis, what are the criteria for determining whether a proposed project is acceptable?

Suggested Answer: D Vote an answer

In the benefit/cost (B/C) method of analysis, the criterion for determining whether a proposed project is acceptable is if the Benefit/Cost ratio (B/C) is greater than 1.0. This indicates that the benefits of the project outweigh the costs, thus making the project economically viable. A B/C ratio of exactly 1.0 suggests that the benefits are just sufficient to cover the costs, while a ratio greater than 1.0 indicates a profitable investment.

by Walter at Feb 20, 2025, 10:33 AM

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