CAADE Estimating Principles and Software 2 — Questions and Answers
Question 1: In estimating software, what does the term 'betterment' refer to?
- A credit applied when a new part improves upon the pre-loss condition of a worn part (Correct answer)
- The process of upgrading software to a newer version mid-estimate
- Additional labor time added for difficult access situations
- A surcharge applied to luxury vehicle repairs
Correct answer: A credit applied when a new part improves upon the pre-loss condition of a worn part
Betterment is a deduction applied when a replacement part (such as a new tire or battery) leaves the vehicle in better condition than it was before the loss.
Question 2: Which estimating method calculates damage costs by multiplying labor hours by a posted door rate?
- Flat-rate estimating (Correct answer)
- Time-and-materials estimating
- Parametric estimating
- Lump-sum estimating
Correct answer: Flat-rate estimating
Flat-rate estimating uses published labor time guides multiplied by the shop's door rate to calculate labor costs for each repair operation.
Question 3: What is the purpose of the 'not-included' operations list in estimating guides?
- To identify operations that must be added separately because they are not built into the listed labor time (Correct answer)
- To list operations the shop refuses to perform
- To document parts that are on backorder
- To flag operations requiring dealer authorization
Correct answer: To identify operations that must be added separately because they are not built into the listed labor time
Not-included operations are separate labor procedures that must be added to the base labor time because they are not factored into the guide's standard time.
Question 4: When an estimator uses CCC ONE, what does the 'condition report' feature primarily assist with?
- Documenting pre-existing damage and vehicle condition prior to the current loss (Correct answer)
- Calculating tax on parts and labor
- Ordering parts directly from a dealer
- Submitting the estimate to arbitration
Correct answer: Documenting pre-existing damage and vehicle condition prior to the current loss
The condition report in CCC ONE allows estimators to document and photograph pre-existing damage so it is clearly separated from the current claim's damage.
Question 5: Which of the following best describes 'overlap' in the context of collision estimating?
- A labor time reduction applied when two adjacent operations share common steps (Correct answer)
- The area where two panels physically overlap at a seam
- An insurance term for dual coverage on the same vehicle
- Extra clear coat applied at panel edges
Correct answer: A labor time reduction applied when two adjacent operations share common steps
Overlap is a deduction in labor time that acknowledges when two operations share the same steps, preventing double-charging for work done only once.
Question 6: In damage estimating software, OEM parts are distinguished from aftermarket parts primarily because:
- OEM parts are manufactured by or for the vehicle's original manufacturer and typically carry a higher list price (Correct answer)
- OEM parts are always cheaper due to bulk manufacturing
- Aftermarket parts are required by law for warranty repairs
- OEM parts do not require a labor time adjustment
Correct answer: OEM parts are manufactured by or for the vehicle's original manufacturer and typically carry a higher list price
OEM (Original Equipment Manufacturer) parts are sourced from the vehicle's maker or authorized suppliers and are priced at the manufacturer's suggested retail price.
Question 7: What does 'included operations' mean in a labor time guide?
- Operations whose time is already built into the listed labor time and should not be charged separately (Correct answer)
- Operations approved by the insurance carrier
- Parts that come pre-assembled from the manufacturer
- Tasks that are legally required before a vehicle can be road-tested
Correct answer: Operations whose time is already built into the listed labor time and should not be charged separately
Included operations are tasks already accounted for within the guide's published repair time and must not be added as separate line items.
CAADE Estimating Principles and Software 2
In estimating software, what does the term 'betterment' refer to?