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Free CEP Practice Questions

10 free, exam-style Certified Estimating Professional (CEP) practice questions with answers and explanations. No signup required. Work through them below, then take the full free CEP practice test to study every exam domain.

These 10 free CEP questions are organized by exam domain, so you can see how each part of the Certified Estimating Professional blueprint is tested. Reveal the answer and explanation under each question.

Domain 1: Basic Estimating Knowledge (50 questions / 42%)

Question 1

Under the AACE cost estimate classification system, the PRIMARY basis for classifying an estimate into Classes 1 through 5 is the:

  1. Accuracy range expected from the estimating methodology applied
  2. Level of project definition at the time the estimate is prepared
  3. Total preparation effort expressed as a percentage of project cost
  4. Estimating methodology used to prepare the estimate
Show answer & explanation

Correct answer: B - Level of project definition at the time the estimate is prepared

Question 2

A cost estimator calculates a composite crew rate for a crew consisting of 2 pipefitters at $72/hour burdened, 1 welder at $84/hour burdened, and 1 helper at $38/hour burdened. All four workers are on the same 8-hour shift. The composite crew rate is closest to:

  1. $48.50 per crew-hour
  2. $66.50 per crew-hour
  3. $72.00 per crew-hour
  4. $64.67 per crew-hour
Show answer & explanation

Correct answer: B - $66.50 per crew-hour

Question 3

All of the following are required elements of a Basis of Estimate document per AACE RP 34R-05 EXCEPT:

  1. Assumptions, exclusions, and allowances
  2. Escalation basis and rate assumptions used
  3. Contractor fee structure and profit breakdown
  4. Contingency basis, method, rationale, and determination approach
Show answer & explanation

Correct answer: C - Contractor fee structure and profit breakdown

Question 4

Heat exchanger equipment costing $320,000 was purchased in 2017 when the CEPCI was 567.5. Using a 2025 CEPCI of 825.0, the escalated equipment cost is closest to:

  1. $465,200
  2. $438,600
  3. $392,800
  4. $219,800
Show answer & explanation

Correct answer: A - $465,200

Domain 2: Complex Estimating Problems (24 questions / 20%)

Question 5

A 40,000 barrel-per-day refinery was built for $600 million. Using the capacity-factored method with an exponent of 0.6, the estimated cost of a 70,000 barrel-per-day refinery of similar complexity is closest to:

  1. $890 million
  2. $1,050 million
  3. $505 million
  4. $840 million
Show answer & explanation

Correct answer: D - $840 million

Question 6

A Monte Carlo simulation on a project estimate produces a P50 value of $92 million and a P80 value of $108 million. The deterministic base estimate is $88 million. If the owner requires 80% confidence for budget authorization, the contingency amount should be:

  1. $4 million
  2. $16 million
  3. $12 million
  4. $20 million
Show answer & explanation

Correct answer: D - $20 million

Question 7

Using an 80% learning curve, a fabrication team completes the first modular unit in 5,000 labor hours. The labor hours required for the eighth unit are closest to:

  1. 2,560 hours
  2. 3,200 hours
  3. 2,048 hours
  4. 1,640 hours
Show answer & explanation

Correct answer: A - 2,560 hours

Domain 3: Estimating Process and Practices (45 questions / 38%)

Question 8

During a Class 3 estimate review, the ratio of indirect costs to direct costs is 14%, while benchmarks for similar projects range from 22% to 28%. The MOST appropriate action is to:

  1. Accept the lower indirect ratio as a competitive cost advantage for the project
  2. Increase the contingency provision by the difference to compensate for the gap
  3. Investigate whether indirect cost items have been omitted or underestimated
  4. Adjust the direct costs downward until the ratio falls within the benchmark range
Show answer & explanation

Correct answer: C - Investigate whether indirect cost items have been omitted or underestimated

Question 9

According to AACE RP 10S-90, what is the FUNDAMENTAL difference between contingency and management reserve?

  1. Contingency is a fixed percentage of direct cost applied during estimate preparation while management reserve is derived from a separate quantitative risk analysis
  2. Contingency addresses known unknowns within the project scope; management reserve addresses unknown unknowns outside the scope
  3. Contingency is controlled by the project manager while management reserve is controlled by the cost estimator
  4. Contingency applies to capital project costs while management reserve applies to both capital and operating costs
Show answer & explanation

Correct answer: B - Contingency addresses known unknowns within the project scope; management reserve addresses unknown unknowns outside the scope

Question 10

A project at month 10 has a Budget at Completion of $30 million, Earned Value of $12 million, Planned Value of $15 million, and Actual Cost of $14 million. The Cost Performance Index and the Estimate at Completion are closest to:

  1. CPI = 0.80 and EAC = $37.5 million
  2. CPI = 0.93 and EAC = $32.3 million
  3. CPI = 0.86 and EAC = $32.0 million
  4. CPI = 0.86 and EAC = $35.0 million
Show answer & explanation

Correct answer: D - CPI = 0.86 and EAC = $35.0 million

The rest of the CEP blueprint

The CEP exam also covers these domains. Drill them in the full free practice test:

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