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Title: VMA Vce Files & VMA Exam Bootcamp
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SAVE International Value Methodology Associate Sample Questions (Q26-Q31):NEW QUESTION # 26
Which of the following defines the effects of time, value, and money, converting all costs to a common reference point in today's dollars?
Answer: B
Explanation:
In Value Methodology, cost analysis often involves evaluating the economic impact of alternatives over time, which requires understanding the time value of money. The VMF 1 course, under Core Competency #4 (Cost Analysis), includes financial concepts like discounting cash flows to assess long-term value. The concept of converting all costs to a common reference point in today's dollars refers toPresent Worth (or Net Present Value, NPV). According to SAVE International's Value Methodology Standard, Present Worth (or NPV) is used to "evaluate the economic feasibility of alternatives by discounting future cash flows to their present value, accounting for the time value of money." This process converts all costs and benefits (adjusted for time, value, and money) to a single value in today's dollars using a discount rate, allowing for a fair comparison of alternatives.
* Option A (Return on Investment or ROI) is incorrect because ROI measures profitability as a percentage and does not convert costs to a present value.
* Option B (Present Worth or Net Present Value) is correct because NPV accounts for the effects of time, value, and money by discounting future cash flows to today's dollars.
* Option C (Discount Rate) is incorrect because the discount rate is the rate used in NPV calculations, not the method of converting costs itself.
* Option D (Simple Payback or Breakeven Point) is incorrect because payback measures the time to recover an investment and does not account for the time value of money or convert costs to present value.
:
SAVE International, "Value Methodology Standard and Body of Knowledge," available athttps://www.value- eng.org, section on cost analysis, referencing Present Worth (NPV) for economic evaluation.
SAVE International, VMF 1 Core Competency #4 (Cost Analysis), which includes discounting techniques for comparing alternatives.

NEW QUESTION # 27
Within the scope of a residential door (including the door frame, hinges, lock set, and door handle), which of the following does not contain activities?
Answer: A
Explanation:
In Value Methodology's Function Analysis, functions and activities are distinct concepts, as taught in the VMF 1 course (Core Competency #2: Function Analysis). According to SAVE International's Value Methodology Standard, "functions are what a product, process, or system does, expressed in a verb-noun format (e.g., 'restrict access'), while activities are tasks, actions, or operations that describe how a function is performed (e.g., 'install screws')" (as noted in Question 43). The question asks for the option that does not contain activities, meaning it should only include functions (verb-noun combinations) and no activities (specific tasks).
For a residential door:
* Option A (Restrict access, improve safety, transmit force):
* Restrict access (function: the door limits entry).
* Improve safety (function: the door enhances security).
* Transmit force (function: the handle or hinges transfer force to open/close).All are functions in verb-noun format, with no activities (specific tasks).
* Option B (Connect spaces, construct frame, attract user):
* Connect spaces (function: the door links rooms).
* Construct frame (activity: the task of building the frame).
* Attract user (function: the door's aesthetics draw attention).Contains an activity (construct frame).
* Option C (Rotate door, support load, grasp handle):
* Rotate door (function: the hinges enable rotation).
* Support load (function: the frame bears the door's weight).
* Grasp handle (activity: the action of holding the handle).Contains an activity (grasp handle).
* Option D (Install screws, separate spaces, secure space):
* Install screws (activity: the task of fastening screws).
* Separate spaces (function: the door divides rooms).
* Secure space (function: the lock protects the area).Contains an activity (install screws).
* Option A (Restrict access, improve safety, transmit force) is correct, as it contains only functions, with no activities.
* Option B is incorrect because "construct frame" is an activity.
* Option C is incorrect because "grasp handle" is an activity.
* Option D is incorrect because "install screws" is an activity.
:
SAVE International, VMF 1 Core Competency #2 (Function Analysis), distinguishing between functions (verb-noun) and activities (how functions are performed).
SAVE International, "Value Methodology Standard," section on Function Analysis, defining functions and activities (consistent with Question 43).

NEW QUESTION # 28
Which of the following defines the nominal rate of increase in the value of money over time, after subtracting for inflation?
Answer: A
Explanation:
In the context of Value Methodology, cost analysis often involves financial concepts to evaluate the economic impact of alternatives, including understanding the time value of money. The VMF 1 course, under Core Competency #4 (Cost Analysis), includes basic financial metrics relevant to value studies, such as discounting cash flows to assess long-term value. The nominal rate of increase in the value of money over time, after subtracting for inflation, refers to thereal discount rate. In financial terms, as per standard economic principles taught in VMF 1, the discount rate is the rate used to discount future cash flows to their present value, and thereal discount rateis the nominal discount rate adjusted for inflation (i.e., real discount rate = nominal discount rate # inflation rate). This measures the true increase in the value of money over time, excluding inflationary effects.
* Option A (Simple Payback or Breakeven Point) is incorrect because payback measures the time required to recover an investment, not the rate of increase in money's value.
* Option B (Return on Investment or ROI) is incorrect because ROI measures the profitability of an investment as a percentage, not the rate of increase in money's value over time.
* Option C (Discount Rate) is correct because the real discount rate, after subtracting inflation, defines the nominal rate of increase in the value of money over time, as used in financial analyses within VM studies.
* Option D (Present Worth or Net Present Value) is incorrect because NPV is the result of discounting future cash flows to their present value using a discount rate, not the rate itself.
:
SAVE International, VMF 1 Core Competency #4 (Cost Analysis), which includes financial concepts like discounting and the time value of money in value studies.
SAVE International, "Value Methodology Standard," section on cost analysis, referencing economic evaluation techniques such as discounting for long-term cost analysis.

NEW QUESTION # 29
Which function is located to the left of the left vertical line in a FAST diagram?
Answer: C
Explanation:
The Function Analysis System Technique (FAST) diagram is a key tool in Value Methodology's Function Analysis phase, as taught in the VMF 1 course (Core Competency #2). FAST diagrams map the relationships between functions, with the horizontal axis showing the "how-why" logic (critical path) and vertical lines called scope lines defining the study's boundaries. According to SAVE International's Value Methodology Standard, "the left vertical line in a FAST diagram is a scope line, and the function immediately to its right is typically the higher-order function, which represents the overarching goal or need for the system." The functionto the leftof the left scope line is outside the study's scope and often represents an even broader objective or external assumption that drives the higher-order function. However, in standard FAST diagramming, thehigher-order functionis the closest function to the left scope line within the scope, and functions to the left of the scope line (e.g., P in the diagram from Question 30) are external.
In the context of the VMA exam and VMF 1, the question likely tests the understanding of the higher-order function's position relative to the scope line. As established in Question 18, Function E (just inside the left scope line B) is the higher-order function. Functions to the left of the left scope line (e.g., P) are typically external assumptions or broader objectives, but the options provided (A, B, C, D) refer to standard function classifications within the FAST framework. Thehigher-order function(C) is the most relevant choice, as it is the function closest to the left scope line within the study's scope, and the question may be interpreted as asking for the function type associated with that position.
* Option A (Basic Function) is incorrect because the basic function is typically more central on the critical path, not at the far left.
* Option B (Secondary Function) is incorrect because secondary functions are vertical (supporting the critical path), not on the main path near the left scope line.
* Option C (Higher Order Function) is correct, as the higher-order function is located just to the right of the left scope line (e.g., Function E), and the question may be interpreted in this context based on standard FAST conventions.
* Option D (Lower Order Function) is incorrect because lower-order functions are to the right of the basic function, representing more specific outcomes, not near the left scope line.
:
SAVE International, VMF 1 Core Competency #2 (Function Analysis), defining the position of the higher- order function in FAST diagrams.
SAVE International, "Value Methodology Standard," section on Function Analysis, describing FAST diagramming conventions, including the role of scope lines and higher-order functions.

NEW QUESTION # 30
In which phase does one work to obtain a thorough understanding of the subject of the VM study?
Answer: A
Explanation:
The Value Methodology (VM) Job Plan, as outlined in the VMF 1 course and SAVE International's Value Methodology Standard, consists of six phases, starting with the Information Phase. According to VMF 1 Core Competency #3 (Value Methodology Job Plan), the Information Phase is where the VM team works to
"obtain a thorough understanding of the subject of the study by gathering and analyzing data on project scope, costs, constraints, objectives, and stakeholder needs." This phase involves collecting all relevant information-such as drawings, specifications, cost data, and performance requirements-to establish a baseline for the study, ensuring the team fully understands the project before proceeding to function analysis.
* Option A (Information Phase) is correct, as it is explicitly defined as the phase for gaining a thorough understanding of the VM study's subject.
* Option B (Creativity Phase) is incorrect because this phase focuses on generating ideas, not gathering information.
* Option C (Evaluation Phase) is incorrect because this phase involves assessing ideas, which occurs after the subject is already understood.
* Option D (Presentation Phase) is incorrect because this phase involves communicating recommendations, not studying the subject.
:
SAVE International, "Value Methodology Standard and Body of Knowledge," available athttps://www.value- eng.org, detailing the Information Phase in the VM Job Plan.
SAVE International, VMF 1 Core Competency #3 (Value Methodology Job Plan), emphasizing the role of the Information Phase in understanding the study subject.

NEW QUESTION # 31
......
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