CPCM Study Guide Questions with Correct Answers

CPCM Study Guide Questions with Correct Answers Trademark - Answer-word, name, symbol, or device that is used with goods to indicate the source of the goods and to distinguish from the goods of others. constructive acceleration - Answer-requirement that a contractor complete its work by a date earlier than one that would reflect the time extensions to which it's entitled because of an excusable delay. price analysis - Answer-process of examining & evaluating a price without the evaluation of the separate cost elements and proposed profit of the offeror- normally FFP deductive change - Answer-change resulting in the reduction in contract price because of a net reduction in the contractor's work information processing services organization (IPSO) - Answer-discrete set of personnel, it, and support equipment with the primary function of providing services to more than one agency on a reimbursable basis consignee - Answer-person, group of persons, or organization receiving supplies/services that is named on the bill of landing. abstract of title - Answer-a condensed history of the title to property based on past records current year dollars - Answer-level of cost, with inflation, in the year that actual cost will be incurred international commercial terms (INCOTERMS) - Answer-clarifies destination, risk & liability, point of title transfer, and cost inclusions. Enables parties contracting for the purchase of sale of goods internationally to simply and concisely allocate their responsibility for transportation, custom fees, documentation requirements, risk of loss or damage, and insurance Kanban System - Answer-production flow control that utilizes cards to pull in process where items are called for only as they are needed in the next step of the production. auxiliary technique - Answer-price analysis used to support results from primary or secondary comparions condition precedent - Answer-condition that activates a term in the contract. An event that must occur before a party must perform. cost variance - Answer-true measure of cost performance that compares the actual cost incurred to the value of work accomplished decentralization of purchasing - Answer-occurs when personnel from other functional areas decide on sources of supply, negotiate with vendors, or perform any of the other major functions of purchasing contractor purchasing system review (CPSR) - Answer-evaluation of the efficiency & effectiveness with which the prime spends government funds and complies with government policy when subcontracting. break even analysis - Answer-determines the point at which total revenues are exactly equal to the total fixed variable costs modular contracting - Answer-intended to reduce program risk and to incentive contractor performance while meeting the government's need for timely access to rapidly changing technology liabilities - Answer-the various claims against a firm, including accounts payable, notes payable, obligations under capital leases, and long-term debts. substantial performance - Answer-performance that deviates only in minor respects from contract requirements. cannot be terminated for default performance based acquisition - Answer-intended to ensure that required outcome quality levels are achieved and that total payment is related to the degree that outcomes achieved meet contract standards. cost estimating relationship (CER) - Answer-secondary comparison used in performing price analysis. used to adjust comparisons by establishing a common denominator between different items. free trade agreement - Answer-treaty between two or more countries that do not impose tariffs for commerce conducted across their borders. operating activities - Answer-company's cash flow from net income or loss constructive change - Answer-verbal or written act or omission by an authorized government official that has the same affect as a written change order. four corners doctrine - Answer-theory that the contract itself should include all of the terms and conditions that the parties wish to be a part of the agreement.