CLC 056 ANALYZING CONTRACT COSTS
CERTIFICATION SCRIPT 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◍ Allocable Cost.
Answer: Assignable or chargeable to one or more cost objectives on the
basis of relative benefits received or other equitable relationship. It
must—(a) Be incurred specifically for the contract(b) Benefit both the
contract and other work, and can be distributed to them in reasonable
proportion to the benefits received; or(c) Be necessary to the overall
operation of the business
◍ Which of the following labor categories in a contractor's proposal for
Grounds Maintenance would raise concern?.
Answer: - Millwright
◍ This is the cost principle term that prefers to any cost that cannot be
included in prices, cost reimbursements, or settlements under a government
contract to which it is allocable..
Answer: Unallowable cost
◍ Price Analysis deals with the bottom line price of an item, while cost
analysis is concerned with the component elements of the total price..
Answer: True
◍ Why would an increase in BBOMS' sales projections affect the G&A rate?.
Answer: G&A rate was reduced because the indirect cost allocation base
increased.
◍ What clause in the FAR provides a remedy to the government in the event
the contractor submits defective certified cost or pricing data on this
modification?.
, Answer: FAR 52.215-11, Price Reduction for Defective Certified Cost or
Pricing Data - Modifications
◍ Costs not specifically addressed.
Answer: The fact that a cost is not specifically mentioned does not imply
that it is either allowable or unallowable. FAR 31.204(d) requires that the
determination of allowability shall be based on the contract cost principles
in FAR Part 31 and the treatment of similar or related selected items in FAR
Part 31.205.
◍ A "questioned cost" is one that has not yet been evaluated..
Answer: - False
◍ What is a Mean Square Error (MSE)?.
Answer: MSE = SSE / dfIn 2-variable linear regression, df for calculating
MSE is always n - 2. As a result, in simple regression, you can simplify the
equation for MSE to read:MSE = SSE (n - 2)
◍ Read the following situations in which statistical analysis might be used.
Which one of the situations is similar to analyzing the contractor's Bill of
Materials?.
Answer: Streamlining the evaluation of a large quantity of data
◍ For cost-type contracts, cost realism analysis is used to determine what?.
Answer: The most probable cost of contract performance to the
Government. The probable cost is determined by adjusting each offeror's
proposed cost (and fee when appropriate) to reflect any additions or
reductions in cost elements to realistic levels based on the results of the cost
realism analysis. The probable cost may differ from the proposed cost and
should reflect the Government's best estimate of the cost of any contract that
is most likely to result from the offeror's proposal. The probable cost is used
for evaluating contract proposals to determine the best value.
◍ You have been asked to procure seven high definition mobile cameras. You
determine that this is a commercial item. The prices for these items range
from approximately $400,000 to $650,000 each. You identify six vendors
CERTIFICATION SCRIPT 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◍ Allocable Cost.
Answer: Assignable or chargeable to one or more cost objectives on the
basis of relative benefits received or other equitable relationship. It
must—(a) Be incurred specifically for the contract(b) Benefit both the
contract and other work, and can be distributed to them in reasonable
proportion to the benefits received; or(c) Be necessary to the overall
operation of the business
◍ Which of the following labor categories in a contractor's proposal for
Grounds Maintenance would raise concern?.
Answer: - Millwright
◍ This is the cost principle term that prefers to any cost that cannot be
included in prices, cost reimbursements, or settlements under a government
contract to which it is allocable..
Answer: Unallowable cost
◍ Price Analysis deals with the bottom line price of an item, while cost
analysis is concerned with the component elements of the total price..
Answer: True
◍ Why would an increase in BBOMS' sales projections affect the G&A rate?.
Answer: G&A rate was reduced because the indirect cost allocation base
increased.
◍ What clause in the FAR provides a remedy to the government in the event
the contractor submits defective certified cost or pricing data on this
modification?.
, Answer: FAR 52.215-11, Price Reduction for Defective Certified Cost or
Pricing Data - Modifications
◍ Costs not specifically addressed.
Answer: The fact that a cost is not specifically mentioned does not imply
that it is either allowable or unallowable. FAR 31.204(d) requires that the
determination of allowability shall be based on the contract cost principles
in FAR Part 31 and the treatment of similar or related selected items in FAR
Part 31.205.
◍ A "questioned cost" is one that has not yet been evaluated..
Answer: - False
◍ What is a Mean Square Error (MSE)?.
Answer: MSE = SSE / dfIn 2-variable linear regression, df for calculating
MSE is always n - 2. As a result, in simple regression, you can simplify the
equation for MSE to read:MSE = SSE (n - 2)
◍ Read the following situations in which statistical analysis might be used.
Which one of the situations is similar to analyzing the contractor's Bill of
Materials?.
Answer: Streamlining the evaluation of a large quantity of data
◍ For cost-type contracts, cost realism analysis is used to determine what?.
Answer: The most probable cost of contract performance to the
Government. The probable cost is determined by adjusting each offeror's
proposed cost (and fee when appropriate) to reflect any additions or
reductions in cost elements to realistic levels based on the results of the cost
realism analysis. The probable cost may differ from the proposed cost and
should reflect the Government's best estimate of the cost of any contract that
is most likely to result from the offeror's proposal. The probable cost is used
for evaluating contract proposals to determine the best value.
◍ You have been asked to procure seven high definition mobile cameras. You
determine that this is a commercial item. The prices for these items range
from approximately $400,000 to $650,000 each. You identify six vendors
