SocietyofCostEstimatingandAnalysis CCEAExaminationPreparationHandbook

CCEA EXAMINATION PREPARATION HANDBOOK

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TableofContents
Introduction..................................................................................................................................................................................3

TheCCEAExamination..................................................................................................................................................................4

CertifiedCostEstimator/Analyst(CCEA)Examination..............................................................................................................4

PartI......................................................................................................................................................................................4

PartII.....................................................................................................................................................................................4

ExaminationAdministration..........................................................................................................................................................5

CCEAExaminationPreparationGuidance.....................................................................................................................................6

UnderstandingtheDerivationandConstructionoftheExam..................................................................................................6

CognitiveDomain..................................................................................................................................................................6

TheExaminationDevelopmentProcess................................................................................................................................7

TestableTopicsList...........................................................................................................................................................7

FoundationalKnowledge...............................................................................................................................................7

PracticalApplication......................................................................................................................................................7

AdvancedAnalysis.........................................................................................................................................................8

CaseStudy.....................................................................................................................................................................8

TopicDistribution..............................................................................................................................................................8

QuestionConstruction....................................................................................................................................................9

SampleQuestions....................................................................................................................................................................10

TrainingResources......................................................................................................................................................................15

ContactInformation....................................................................................................................................................................16

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Introduction
TheCertifiedCostEstimator/Analyst(CCEA)ExaminationPreparationHandbookisdesignedtofamiliarizethetest takerwithbothPartsoftheCCEAExamination,andtoprovideinstructiononhowtoprepareforthetestquestionsineach Part.

EligibilityRequirements
ToreceivetheCCEAdesignation,anapplicantmustfirstmeettheeducationalandexperientialeligibilityrequirements, andthenscore70%orbetteronbothPartsoftheexamination.PartItestsFoundationKnowledgeandPracticalApplication. PartIItestsAdvancedAnalysisandprovidesaCaseStudy. ApplicantshavingfiveormoreyearsofexperienceincostrelatedprofessionsmustsuccessfullypassPartIandPartIIto receivetheCertifiedCostEstimator/Analyst(CCEA)designation.Applicantshavingatleasttwobutlessthanfiveyearsof experienceinthecostfieldmustsuccessfullypassPartItoreceivetheProfessionalCostEstimator/Analyst(PCEA) designation. (Anapplicantwhohaslessthanfiveyearsofcostexperience,butsuccessfullypassesbothPartIandPartIIwill receivetheCertifiedCostEstimator/Analyst(CCEA)designationwhentheysubmitevidenceoffiveyearsofeligibleexperience. ThePCEAdesignationexpiresinthreeyearsandpractitionersarenoteligibleforPCEArecertification.TheCCEA designationexpiresinfiveyearsandpractitionersareeligibleforrecertificationeitherthroughtheaccumulationofre certificationpointsorthroughreexamination.

ExaminationPreparationHandbook
TheCCEAExaminationsectionofthishandbookgivesanoverviewofPartIandPartII,whiletheExamination Administrationsectionspecificallywalksyouthroughthetimelineandexpectationsoftheexamday. TheCCEAExamination PreparationGuidancesectionthendelvesintothedesignandconstructionoftheexamtoenabletesterstounderstandwhat isexpectedandhowtousethetestabletopicslisttopreparefortheexamination. TheTrainingResourcessection emphasizesthebenefitofusingCEBoKinpreparationfortheexam.Finally,theContactInformationsectionoutlinesthe varietyofwaysthattesterscancontacttheSCEANationalOffice.

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TheCCEAExamination
CertifiedCostEstimator/Analyst(CCEA)Examination
TheCCEA(CertifiedCostEstimator/Analyst)examinationhastwoparts. PartItestsFoundationKnowledge andPracticalApplication. ApplicantswhosuccessfullypassPartIandhaveatleasttwobutlessthanfiveyearsof experienceinthecostfieldwillreceivetheProfessionalCostEstimator/Analyst(PCEA)designation. PartIItests AdvancedAnalysisandprovidesaCaseStudy. ApplicantswhosuccessfullypassPartIandPartIIreceivetheCertified CostEstimator/Analyst(CCEA)designationuponcompletionofalleligibilityrequirements.

110question examgivenin5 hoursdividedin2 parts

CertifiedCostEstimator/Analyst (CCEA)
PartI(PCEA) ProfessionalCost Estimator/Analyst
BachelorsDegreeand2yearsexperience (or5yrswithoutdegree)

PartII

BachelorsDegreeand5years experience(or8yrswithoutdegree)

2hours*

3hours*
Foundational Knowledge Practical Application Advanced Analysis

CaseStudy

60MultipleChoice Questions@1point each 48MultipleChoice Questions@1pointeach and2ShortAnswer Questions@2points each

Figure1CCEACertificationExamination

PartI PartIconsistsof60multiplechoicequestionsworth1pointeach. TheapplicantmustpassPartIof theexaminationwithanoverallscoreof70%orgreatertoreceivecreditfortheexaminationorattain thePCEADesignationiftheaboveeligibilitycriteriaaremet.

PartII PartIIconsistsoftwosections.SectionCtestsAdvancedAnalysisknowledgewhile

4 SocietyofCostEstimatingandAnalysis Train,Attain,SustainCertificationMatters!

SectionDtestsknowledgeappliedinaCaseStudy. PartIIconsistsof48multiplechoicequestionsworth1 pointeachand2shortanswerquestionsworth2pointseach. TheapplicantmustpassPartIIofthe examinationwithanoverallscoreof70%orgreatertoreceivecreditfortheexamination.ToattaintheCCEA designation,theapplicantmustpassbothPartsIandIIwithscoresof70%orgreateroneachpartandmeet therequisiteeligibilityrequirements.

ExaminationAdministration
Regardlessoftheexaminationyouaretaking(PartI,PartIIorboth),theexaminationswillbeadministered followingthesameformat. Ontheexaminationday,thosetakingPartIshouldarriveatthetestsite30minutespriorto thescheduledexam,whichwillbereferredtoasThour,andfollowtheprescribedsequencebelow:

ACTIVTY 1. AtThour,theproctorwillhandoutInstructionsandhavetestersfillin personalinformation.Theproctorwillallowforupto30minutesfortesters toanswerthequestionsandreadtheinstructions. 2. AtT+30minutes,PartIwillbedistributedandtestershave2hourstofinish thispartoftheexam.Thetestermayansweranyquestionathisorher own paceandusewhatevertestingstrategiestheyprefer,buttheymustcomplete allexaminationquestionsbyT+2hoursand30minutes. 3. AfterT+2hoursand30minutes,theproctorwillcollectallexammaterials. 4. ForthosecontinuingontotakePartII,theproctorwillallowfora1hourand 15minutebreak. ForthoseonlytakingPartI,theymaybedismissedonceall exammaterialsandquestionnaireshavebeenturnedintotheproctor. 5. ThoseonlytakingPartIIshouldarriveatthetestsite45minutesprior totheexaminationtocheckin,readtheinstructionsandanswera questionnaire. 6. ForthosetakingPartII,testingwillbeginatT+3hoursand45minutes. Atthis timetheproctorwillpassoutPartII.Testerswillhave3hourstocompleteall ofPartII. 7. AfterT+6hoursand45minutes(where3fullhourshavebeenallocatedfor PartII),theproctorwillcollectallexammaterial.Onceatesterturnsinallof hisorhertestmaterial,heorshewillbedismissed.

SAMPLETIMELINE 9:00AM9:30AM

9:30AM11:30AM

11:30AM 11:30AM12:45PM

12:00PM

12:45PM1:45PM

3:45PM

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CCEAExaminationPreparationGuidance
TofullypreparefortheCCEAexamination,itisimportantforthetesttakertounderstandtheexamdevelopment process,toincludetherolecognitiveknowledgeplayedinthedevelopmentofthetestabletopicslist,thetestabletopics listlocation,thegeneralconstructofquestionsontheexamandtherelationshipofthetestabletopicslisttothe examinationquestions. Understandingtheaforementionedelementsshouldhelptesttakersfocustheirstudiesproperly. Inaddition,itisrecommendedthattesttakersstudyusingCEBoK,whichcanbeobtainedbycontactingtheSCEANational Office.

UnderstandingtheDerivationandConstructionoftheExam
CognitiveDomain Therearethreedomainsforknowledge:affective,psychomotor,andcognitive. Testableknowledgeresidesinthe cognitivedomain. UsingBloomstaxonomy(seeFigure2CognitiveDomain),SCEAreviewedboththeCEBoKandthebodies ofknowledgeofotherrelevantprofessionstogeneratetheCCEAexaminationTestableTopicsList. Tohelpthetesttaker, TheVerbsforEachLevel(seeFigure2CognitiveDomain)outlinescommonlyusedverbsforeachcognitivedomain,which progressivelyincreaseindepthandcomplexityofknowledgeasyoumovefromlefttoright.

Levels in the Cognitive Domain

Knowledge Lowest Level
Recall (Knowledge and Comprehension) Application (Application and Analysis) Developmental (Synthesis and Evaluation)

Verbs for each level

Knowledge Application Synthesis Highest Level
Application Application---Analysis Apply Demonstrate Display Employ Interpret Perform Schedule Translate Use Appraise Analyze Calculate Compute Compare Contrast Criticize Determine Differentiate Distinguish Examine Experiment Extrapolate Quantify Relate Review Solve Test Developmental Synthesis ----Evaluation Assemble Build Compose Construct Create Design Develop Formulate Manage Organize Plan Prepare Propose Appraise Assess Choose Critique Estimate Evaluate Judge Measure Revise Score Select Value

Application

Synthesis Highest Level

Lowest Level

Recall Knowledge -----Comprehension Describe Define Identify List Recall State Restate Discuss Describe Identify Locate Report Explain Express Recognize Review

Name three types of. Describe the components of What is the purpose of?

Critique the two alternatives Put together an estimate that would reduce fixed costs and maximize .

Calculate the unit cost Contrast one method with another. Given XXX, what is the cost of ?

Figure2.CognitiveDomain

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TheExaminationDevelopmentProcess TestableTopicsList OnceSCEAidentifiedboththecognitiveknowledgetopicsandlevelsthatcostestimatorsshouldknowbythetime theyhaveattained5yearsofcostestimatingexperience,SCEAdeterminedastructurefororganizingthesetopics. SCEA decidedtousethecategorytopics(moduleheadings)foundintheCEBoKtrainingtool. Theseknowledgetopicsorganized bytheCEBoKmoduleheadingmakeuptheTestableTopicsList.(Seestep#1inFigure4.CCEAExaminationDevelopment Process.)

COSTESTIMATINGBASICS TOPIC

CCEA PartIorPCEA Foundational Practical Knowledge Application X X X X X X PartII Advanced Case Analysis Study

Applications of Cost Estimating Budgeting, Investment, and Planning Analysis of Alternatives (AoA) Economic Analysis Cost Benefits Analysis Business Case Analysis

Figure3.ExampleofTestableTopicsmatchedtoCognitive Level

FoundationalKnowledge

TopicsdesignatedasFoundationalKnowledgetopicsfocusonanindividualsawareness, understanding,andrecognitionofthetopicitselfand/orhowthetopicrelatestotheoverallcost estimatingprocess. Anindividualmaybeaskedquestionsontheexaminationsuchas:

Namethethreetypesof Describethecomponentsof Whatisthepurposeof? Matchthetermtothecorrectdefinition.

PracticalApplication
TopicsdesignatedasPracticalApplicationtopicsfocusonanindividualsabilitytoapplyconceptsto numbers,situations,oreventsandtoconductsimpleanalysisandcalculations. Anindividualmaybeasked questionsontheexaminationsuchas:

Giventhefollowingevent/numbers/situation,whichmethodwouldyouapply? Giventhefollowingnumbers,howwouldtheybedisplayedIAW Giventhisevent/situation,whichtechniquewouldyourecommend? Giventhefollowingnumbers,whatisthe[mathematicalterm]? 7

SocietyofCostEstimatingandAnalysis Train,Attain,SustainCertificationMatters!

 AdvancedAnalysis

TopicsdesignatedasAdvancedAnalysisfocusbothanindividualsroteknowledgeaswellas knowledgelearnedonthejobtoanalyzeinformationtoanswerspecificquestions. Anindividualmaybe askedquestionsontheexaminationsuchas: Giventhefollowinginformation,performa[typeof]analysis Differentiatebetweenthetwofollowingmethods/techniques Extrapolate Quantifytheamountof Calculatethecostusing

CaseStudy

TopicsdesignatedasCaseStudytopicsfocusonthearrayofknowledgefromeachtopicareaasthey relatetorealworldscenariosandcontextualinformation. Anindividualmaybeaskedquestionsonthe examinationsuchas:

Inthecasestudy,theanalystdecidedtousewhichmethodtoanalyzeXXX? TheanalystinthecasestudydeterminedthatthecostatT3was$40,isthatcorrect?Which responsebelowbestdescribesyouranswer? Giventhechartonpage##,didtheanalystcorrectlyuse[inserttechnique]? Knowingthattheinflationrateforyear###isXXX,didtheanalystcorrectlydeterminethe costs?

TopicDistribution SCEAthendesignedthestructureoftheexamanddeterminedthetopicdistributionoftheTestableTopics List.PleasenotethattheCostEstimatingBodyofKnowledge(CEBoK)providesnotonlythetopics,butthecognitive levelordegreeofunderstandingthatisexpectedforcertification. TheTestableTopicslist(seetheCCEAProgram Handbook) iscomprisedof605topicsorganizedbythe16modulesofCEBoK. InanygivenPartoftheexamination, anindividualcanexpecttoseeatleastonequestionfromeachmoduleortopicarea.

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QuestionConstruction Giventhetopicdistribution,SCEAdevelopedquestionsthatassesstheappropriateknowledgeforthe associatedcognitivelevels. Althoughontheexaminationyouwillonlybegiventhequestionandfive(5)responses, Figure4 showsyouthebehindthescenesworkcompletedforeveryquestionontheexamination.

QuestionConstruction

1 Topic Category
4. [ParametricEstimating]:(CER)

2 Topic

QUESTION:IfaCER forSite Developmentwasdevelopedgiving therelationship,y(in $K)=31.765x+145.32(where xisthenumber ofworkstations)foradata set cost driverthat had arange minimumof2workstationsto52workstations,andthe independentvariablehas tested positivelyforsignificance,thepredictedcost forasite that had33workstationswould be:

3 Question

a. b. c. d. e.

$1,193.57 $1,193,565 $1,797.10 $1,797,100 $208,850

4 5multiple choice responses

ANSWER:B 5 TheAnswer SOLUTION:y=31.765*33+145.32=$1,193.57; Becausein$K,value is $1,193.57*1000=$1,193,565. TheSolution 6 REFERENCE:CostProfModule 3

7Reference

Figure4.QuestionConstruction

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SampleQuestions
Belowaresamplequestionswithassociatedanswersandsolutions. FOUNDATIONALKNOWLEDGESAMPLEQUESTION#1

[Cost Estimating Basics] (Work Breakdown Structure) QUESTION: Which of the following is NOT a purpose of the Work Breakdown Structure? a. To provide a lower level breakout of small tasks that are easy to identify, staff, schedule, and estimate b. c. d. e. To identify the organizational relationships and assign work responsibilities To reduce the possibility of overlap, duplication, or redundancy of tasks To provide a basis of comparison for the actual work completed versus the estimate. To furnish a convenient hierarchical structure for the accumulation of resources estimates

ANSWER: B SOLUTION: All of the provided responses support the purpose of the WBS except response B. REFERENCE: Stewart, Rodney. Cost Estimating: Second Edition. New York: John Wiley & Sons, Inc., 1991, p 35.
FOUNDATIONALKNOWLEDGESAMPLEQUESTION#2

[Learning Curve]: (Unit Learning Curve) QUESTION: The following example uses which type of LC theory to determine cost?
Unit Number (X) 1 2 4 8 16 Unit Cost (Y) $100.00 80.00 64.00 51.20 40.96

a. Wright (Cum Ave) b. Crawford (Unit) c. Heuristic Lot Midpoint d. Andelohr (Production Break) e. Straight-line deductions

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ANSWER: B SOLUTION: By definition REFERENCE: By definition

PRACTICALAPPLICATIONSAMPLEQUESTION#1

[Data Collection and Normalization]: (Reasonableness of Data-Data Quality) QUESTION: While collecting historical data to perform an estimate for a future aircraft, you discover that the ABC aircraft is similar to the proposed aircraft. You find that the ABC aircraft cost $2.2 billion (2007$) to develop, has an average recurring production cost of $90 million (2007$), weighs 30,000 lbs, and has a range of 2000 miles and maximum speed of 550 miles per hour. What major category of data is missing from this collection effort? a. b. c. d. e. Cost Technical Programmatic None of the above All of the above

ANSWER: C SOLUTION: Using the various terms addressed in Module 4 of CEBoK, programmatic is the best category for the missing data REFERENCE: Module 4 of CEBoK

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PRACTICALAPPLICATIONSAMPLEQUESTION#2

[Basic Data Analysis Principles] : (Standard Deviation) QUESTION: Given the following information and a sample mean of 1680, what is the sample standard deviation for monthly salary? Employee Abe Bob Cindy Doug Ellen

Monthly Salary 1500 1700 2500 1450 1250

a. b. c. d. e.

434.2 485.5 971.1 1680 0

ANSWER: B SOLUTION: Sample Data 1500 1700 2500 1450 1250 Sample Mean 1680 1680 1680 1680 1680 Delta Squared 32400 400 672400 52900 184900

Delta 180 -20 -820 230 430

Sample Mean=

1680

Differences 943000 Summed

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Sum divided by 235750 n-1

standard deviation of 485.5409355 sample Verified by Excel

485.5409355

REFERENCE: (Submitted by Exam Committee)

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ADVANCEDANALYSISSAMPLEQUESTION#1

[Data Collection and Normalization]: (Data Collection Process) QUESTION: Which of the following does not have the potential to impact the data collection process? a. b. c. d. e. New technologies Schedule Cost Reduction Initiatives Inflation Development of a new CER

ANSWER: D SOLUTION: Inflation doesn't impact the method of collection REFERENCE: Module 4 of CEBoK
ADVANCEDANALYSISSAMPLEQUESTION#2

[Economic Analysis]: (Real Interest Rate) QUESTION: Suppose the nominal interest rate is 9.0%. The rate of inflation is 6.0%. The real interest rate is approximately: a. b. c. d. e. 3.0% 1.5% -3.0% 15.0% Unknown

ANSWER: A SOLUTION: The real interest rate is approximately the nominal rate of interest minus the rate of inflation. REFERENCE: (Submitted by Committee)
CASESTUDYSAMPLEQUESTIONS BecausethequestionswithintheCaseStudysectionarerelatedtotheassociatedcasestudyandreferencematerial, wecannotprovideyousamplequestionsforthissection. Thepremiseofthecasestudystatesthatyouareasenior costestimatorwhomustreviewtheworkofajuniorcostestimator. TheCaseStudywillbeapproximately15pages inlengthtodescribetherequirements,andcontextualinformationthatwillbepertinenttoanswerthecase questions. Withinthissectionyouwillbegiveninformationandrequiredtojudgeandassesstheworkofthejunior analyst.

Forexample,youwillbegivenbackgroundinformationwithaseriesofexhibits.Eachquestionwillreferyoutoa specificpieceofinformationwithinthecasestudyoranexhibitandyoumustanswerthequestionusingonlythe referredinformation.

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TrainingResources
Trainingisthemostcriticalcomponentofthecostcareerfield. Withoutthoroughtrainingatalllevels,itwouldbe difficulttounderstandthebreadthanddepthofknowledgeandskillsrequiredtogeneratequalitycostestimatesandnearly impossibletokeepupwiththecontinualupdatesintheprofession. Inrecentyears,SCEAhadendorsedthecreationof CostPROF,whichwasanexcellentcosttrainingguide. However,withtheexpansivechangestothecostcertificationprogram andanincreasedneedforbettertrainingmaterialstopreparefortheCCEA,CEBoKhasbeendevelopedtoprovidea comprehensiveandauthoritativereferencetoolforcostestimators. ThefoundationsofCEBoKandtheinitialdevelopmentof theimprovedCCEAexaminationsharecommongroundincoveringthesameTestableTopicsListderivedfromtheSCEABody ofKnowledge. Therefore,utilizingCEBoKtoitsfullestpotentialwillenablecostestimatorstobestunderstandthe foundationalknowledgeandpracticalapplicationsofcostand,whencombinedwithactualcostexperience,willbestenable anindividualtopassboththeProfessionalCostEstimatorandAnalyst(PCEA)andtheCertifiedCostEstimatorandAnalyst (CCEA)exams.YoumayrequestacopyofCEBoKthroughtheSCEANationalOffice.

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ContactInformation
ForquestionspertainingtotheCertificationProgramandthePCEAorCCEAexams,pleaserefertotheSCEAwebsiteat: http://www.sceaonline.org/

Orcontactusdirectly:

SCEA/ISPAJointOffice 527MapleAvenueEast, Suite301, Vienna,VA 22180

Email: scea@sceaonline.org Phone: 7039385090 Fax 7039385091

Officehours:8:30am5:00pmET,MondaytoFriday

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