CFCM NCMA STUDY MATERIAL QUIZ ITEMS
SOLUTIONS EXPLAINED 2026
COMPILATION RESOURCE GRADED A+
⩥ Performance and payment bonds are required or may be required for
a. construction contracts and services and supply contracts exceeding
$2,000.
b. construction contracts exceeding $150,000.
c. any contract for services,
d. construction contracts exceeding $150,000 and services and supply
contracts exceeding the SAT when necessary to protect the governments
interests..
Answer: d. construction contracts exceeding $150,000 and services and
supply contracts exceeding the SAT when necessary to protect the
governments interests.
FAR 28.102-1(a), 28.103-1(a), 28.103-2(a)
⩥ Cost Accounting Standards Board rules and regulations apply to
a. negotiated contracts and subcontracts.
b. sealed bid contracts.
,c. contracts with small business concerns.
d. bridge contracts..
Answer: a. negotiated contracts and subcontracts.
FAR 30.000
⩥ The head of the agency may waive the applicability of Cost
Accounting Standards (CAS) for a particular contract or subcontract
when one of these conditions exists:
a. The contract or subcontract is less than $50 million, primarily engaged
in the sale of commercial items, and has no contracts/subcontracts
subject to CAS.
b. The contract or subcontract is less than $15 million, primarily
engaged in the sale of commercial items, and has no
contracts/subcontracts subject to CAS.
c. The contract or subcontract is less than $7.5 million, primarily
engaged in the sale of commercial items.
d. The contract or subcontract is less than $5 million, primarily engaged
in the sale of commercial items, and has no contracts/subcontracts
subject to CAS..
Answer: b. The contract or subcontract is less than $15 million,
primarily engaged in the sale of commercial items, and has no
contracts/subcontracts subject to CAS.
,FAR 30.201-5
⩥ Which of the following statements about advance agreements is NOT
true?
a. Advance agreements may only be negotiated with a particular
contractor for a single contract.
b. Advance agreements may be negotiated either before or during a
contract.
c. The agreement must be in writing.
d. The agreements must be incorporated into applicable current and
future contracts..
Answer: a. Advance agreements may only be negotiated with a
particular contractor for a single contract.
FAR 31.109
⩥ A cost is reasonable if, in its nature and amount, it does not exceed
that which would be
a. incurred by a prudent person in the conduct of competitive business.
b. accrued by a prudent person in the conduct of competitive business.
c. determined to be allowable by the CO.
d. determined to be allocable by the CO..
, Answer: a. incurred by a prudent person in the conduct of competitive
business.
FAR 31.201-3
⩥ What definition best describes alternative dispute resolution?
a. Procedures used to resolve issues in controversy.
b. Procedures voluntarily used to resolve issues in controversy.
c. Procedures used for asserting and resolving claims.
d. Procedures voluntarily used for asserting and resolving claims..
Answer: b. Procedures voluntarily used to resolve issues in controversy.
FAR 33.214
⩥ The government's policy is to try to resolve all contractual issues in
controversy by
a. mutual agreement at the CO's level.
b. bilateral agreement at the CO's level.
c. mutual agreement at a level above the CO.
d. unilateral agreement at the CO's level..
SOLUTIONS EXPLAINED 2026
COMPILATION RESOURCE GRADED A+
⩥ Performance and payment bonds are required or may be required for
a. construction contracts and services and supply contracts exceeding
$2,000.
b. construction contracts exceeding $150,000.
c. any contract for services,
d. construction contracts exceeding $150,000 and services and supply
contracts exceeding the SAT when necessary to protect the governments
interests..
Answer: d. construction contracts exceeding $150,000 and services and
supply contracts exceeding the SAT when necessary to protect the
governments interests.
FAR 28.102-1(a), 28.103-1(a), 28.103-2(a)
⩥ Cost Accounting Standards Board rules and regulations apply to
a. negotiated contracts and subcontracts.
b. sealed bid contracts.
,c. contracts with small business concerns.
d. bridge contracts..
Answer: a. negotiated contracts and subcontracts.
FAR 30.000
⩥ The head of the agency may waive the applicability of Cost
Accounting Standards (CAS) for a particular contract or subcontract
when one of these conditions exists:
a. The contract or subcontract is less than $50 million, primarily engaged
in the sale of commercial items, and has no contracts/subcontracts
subject to CAS.
b. The contract or subcontract is less than $15 million, primarily
engaged in the sale of commercial items, and has no
contracts/subcontracts subject to CAS.
c. The contract or subcontract is less than $7.5 million, primarily
engaged in the sale of commercial items.
d. The contract or subcontract is less than $5 million, primarily engaged
in the sale of commercial items, and has no contracts/subcontracts
subject to CAS..
Answer: b. The contract or subcontract is less than $15 million,
primarily engaged in the sale of commercial items, and has no
contracts/subcontracts subject to CAS.
,FAR 30.201-5
⩥ Which of the following statements about advance agreements is NOT
true?
a. Advance agreements may only be negotiated with a particular
contractor for a single contract.
b. Advance agreements may be negotiated either before or during a
contract.
c. The agreement must be in writing.
d. The agreements must be incorporated into applicable current and
future contracts..
Answer: a. Advance agreements may only be negotiated with a
particular contractor for a single contract.
FAR 31.109
⩥ A cost is reasonable if, in its nature and amount, it does not exceed
that which would be
a. incurred by a prudent person in the conduct of competitive business.
b. accrued by a prudent person in the conduct of competitive business.
c. determined to be allowable by the CO.
d. determined to be allocable by the CO..
, Answer: a. incurred by a prudent person in the conduct of competitive
business.
FAR 31.201-3
⩥ What definition best describes alternative dispute resolution?
a. Procedures used to resolve issues in controversy.
b. Procedures voluntarily used to resolve issues in controversy.
c. Procedures used for asserting and resolving claims.
d. Procedures voluntarily used for asserting and resolving claims..
Answer: b. Procedures voluntarily used to resolve issues in controversy.
FAR 33.214
⩥ The government's policy is to try to resolve all contractual issues in
controversy by
a. mutual agreement at the CO's level.
b. bilateral agreement at the CO's level.
c. mutual agreement at a level above the CO.
d. unilateral agreement at the CO's level..
