CLC 056 Analyzing Contract Costs Exam 100% 2022 latest update

CLC 056 Analyzing Contract Costs Exam 100% 1. Which of the following situations are considered exempt from the submission of Certified Cost or Pricing Data?  Prices are set by law or regulation  Sole source acquisition of $3.5M FFP effort; price determined using cost analysis  Price may be determined fair and reasonable based on price analysis proposal techniques  Non-commercial modification of a commercial item. Modification funded by DoD and constitutes 5% of value of modification 2. When given a set of data that appears to contain outliers, which measure of central tendency is most appropriate to use?  Median  Coefficient of Determination  Mean  Mode 3. What is an important driver to a successful negotiation?  Listen to understand  Ensure your position is heard  Maintain position of power  Obtain the lowest price for the government 4. Which of the following would be a proper method of determining the reasonableness of a contractor’s proposed labor hour estimate?  Compare proposed hours with a Government should-cost estimate  Compare proposed hours with all other contracts from the same contractor  Decrement labor hours estimate according to DCAA standard decrement  Use a stratified sampling techniques to evaluate contractor’s labor hour estimate 5. Which of the following situations would exempt a contract or subcontract from CAS coverage?  The contract or subcontract is with a small business  Value of the contract or subcontract is $7.5M or less  The Economic Price Adjustment clause for a commercial item is based on an index formulated with a contractor’s historical cost data  Sole source firm fixed price contract requiring submission of cost or pricing data 6. True or False: “Direct labor positions” share the same titles and pay levels.  True  False 7. Which situation below would you use improvement curve analysis to evaluating proposed costs?  Assembly line with high proportion of manual labor  Fabrication plant that generates 100,000 units per month  Production facility specializing in “one-off” or unique item production  Fully automated assembly line 8. Using a direct comparison with the cost of a similar contract effort is an acceptable summary This study source was downloaded by from CourseH on :52:59 GMT -05:00 estimating technique  True  False 9. Identify circumstances when cost analysis should be performed by answering the following question. “Unless an exception to certified cost or pricing data applies, you can perform cost analysis on which of the following procurements?"  The modification of any sealed bid or negotiated contract  The award of any negotiated contract (except for undefinitized actions such as letter contracts)  All of these are correct  The award of a subcontractor at any tier, if the contractor and each higher-tier subcontractor have been required to furnish certified cost or pricing data 10. Which sampling technique is used to focus on high-value items?  Stratified  Random  Cluster  Nonprobability 11. Which of the following is an effective use of stratified sampling?  Analyzing the items that make up 80% of the total material cost and 10% of the remaining items  Analyzing 20% of the items that are under $25,000  Analyzing 100% of the items  Analyzing 10% of the items selected randomly 12. Which of the following is a phase in the allocation cycle?  Interim Processing Phase  Adjustment on Rates Phase  Final Allocation Phase  Continuous Rate Application Phase 13. The purpose of an audit is to:  All of these are correct  Determine if the data is accurate and complete  Verify transaction legality  Determine the degree of compliance with established procedures 14. How may you request an audit?  All of these are correct  By telephone call  By mail  By e-mail 15. Which of the following is the best strategy to mitigate cost risk?  Conduct adequate market research prior to entering negotiations  Rely on the contractor’s proposed costs, supported by anecdotal data provided by the  contractor  Evaluate other contract actions awarded to the contractor you’re negotiating with  Establish a firm profit/fee percentage prior to entering negotiations This study source was downloaded by from CourseH on :52:59 GMT -05:00 16. What is the first step in conducting improvement curve analysis?  Determine the Theoretical value of the unit #1  Calculate the slope of the curve  Collect the historical data  Calculate the rate of improvement 17. The cost accounting systems that are used by a contractor manufacturing a number of identical units for multiple customers are:  Generally Accepted Accounting Practice  Cost Accounting Standards  Process Cost System  Job Order Accounting 18. Identify when cost analysis would be required.  When certified cost or pricing data are required  For all proposals exceeding the micropurchase threshold  To evaluate profit or fee  When certified cost or pricing data are required 19. Identify the primary issue you should consider when analyzing direct labor categories in a contractor's proposal.  Is the proposed skill mix identical to the independent government estimate?  Does the contractor compensate their employees for unpaid overtime?  Is the proposed skill mix reasonable for the work required?  Does the contractor currently employ workers in all proposed labor categories? 20. Which of the following is statements is true concerning profit/tree caluclations?  Profit/fee objectives are a product of risk  Profit/fee is calculated differently depending on DPAS rating of the contract  Profit/fee objectives are reduced by the cost efficiency factor  Profit/Fee is calculated once for the basic contract and must not be recalculated on subsequent modifications 21. True or False: Simple linear regression is most appropriate when there is more than one independent variable..  True  False 22. Which three elements are necessary for calculating a confidence interval?  Sample mean, t-value, standard error of the mean  Mean, median, and mode  Variance, t-value, sample mean  Sample mean, median, and mode 23. Which of the following factors is critical to successful negotiation?  Avoid being too friendly, in case the negotiations get diffuclt  The negotiation should be competitive  Set your opening positon extremely low to give room to negotiate This study source was downloaded by from CourseH on :52:59 GMT -05:00  Effectively prepare, plan and communicate 24. Which of the following labor classifications most likely involves fashioning parts from raw materials or purchased materials?  Fabrication  Quality Control  Assembly  Engineering 25. Which of the following is the preferred method for determining if a proposed cost is reasonable?  Comparing with other competitive proposals received in response to the solicitation  Performing a quantitative analysis of the proposed cost using multivariate regression  Evaluating the conditions surrounding the procurement. In cases of National Emergency or Contingency, any cost within 50% of the IGE is considered reasonable  Ensuring the proposed cost is no more than 25% greater than the last known procurement of the item 26. Each Price Negotiation Memorandum must contain which of the following?  Statement that the price is fair and reasonable  Statement that the FAR was consistently followed  Signature of the Contract Specialist  Signature of the Legal Counsel 27. What two costs elements are required to calculate an indirect cost rate?  Expense pool and Allocation base  Overhead rate and Expense base  Allocation Pool and Expense base  Allocation base and Overhead rate 28. Identify the situation where you would use simple linear regression.  Direct cost analysis  Labor classification analysis  Facilities Capital Cost of Money calculation  Profit objective calculation 29. What is the most common base for calculating the General and Administrative (G&A) overhead rate?  Total of all costs  Total management cost  Other direct costs  Total price 30. True or False: A contractor estimates labor rates using weighted averages. As a contacting officer, you are NOT required to consider any labor-management agreement when developing your labor rate objective.  True  False 31. What is the negotiation term that reflects each party emphasizing the long term effects and This study source was downloaded by from CourseH on :52:59 GMT -05:00 benefits as well as both parties defining their interests to be achieved in conjunction with the outcome?  Win-Win  Win-Lose  Lose-Lose  Win-Lose-Win 32. A Disclosure Statement ? Contractor receives a CAS covered contract or a subcontract valued at $60M in a cost accounting period  True  False 33. When is it most appropriate to document or model a contractor’s proposal?  When the value, importance, and complexity warrant  When analyzing multiple commercial supply proposals  Anytime you award a competitive contract  Whenever there are values in excess of $1M included in the proposal 34. Which of the following situations would you most likely employ linear regression techniques?  Estimating the cost of a new armored vehicle based on historical costs of similar procurements  Analyzing the accuracy of a should-cost analysis generated by a DCMA Industrial Engineer  Calculating the mean cost of one individual unit in a production run of 10,000 units  Comparing the proposed costs of a new computer database with the historical costs of all recentcontracts in your office 35. When calculating profile/fee, how is the “performance risk (composite)” calculated?  By adding the assigned weight and assigned value of the technical and management/cost control elements and dividing the sum by 2  By adding the assigned weights and assigned values of the technical and management/cost control elements  By multiplying the assigned weight and assigned value of the technical and management/cost control elements, and adding the two together  By multiplying the assigned values of the technical and management/cost controls elements 36. For which of the following procurements would you require certified cost or pricing data?  An offer of $2.1 million for an item from the only known source of an electronic system unique to Government requirements.  A single-source offer for $96,000 for Research and Development  A commercial item contract modification which indicates that $398,000 of work will be removed by the modification and $390,000 of work will be added. Even after the modification, the item  An offer of $525,000 for a catalog-priced commercial item 37. When the Contracting Officer has relied on certified cost or pricing data in the price determination, which of the following statements is true?  They must certify that they relied on that certified cost or pricing data in the Price Negotiation Memorandum  They must have had legal counsel review the cost or pricing data prior to negotiations This study source was downloaded by from CourseH on :52:59 GMT -05:00  They are not required to certify that they relied on that cost or pricing data in the Price Negotiation Memorandum  They acknowledge their reliance on that cost or pricing data by signing the Price Negotiation Memorandum 38. You are preparing to negotiate a service task for routine maintenance of Government equipment. A sample of 25 records for similar maintenance tasks indicates that the average time required to perform similar maintenance tasks has been six hours and 40 minutes. How can you use this  Developing a price negotiation objective for labor costs  Selecting the appropriate contract type  Evaluating the bill of materials  Assigning the risk factors for profit calculations 39. What is the “base” that used in the calculation of the performance risk, contract type risk, and cost efficiency factor when using the weighted guidelines to determine a profit/fee objective?  Total costs  Subtotal of costs  Total price  Direct and Indirect costs 40. When is it most appropriate to document or model a contractor’s proposal?  When the value, importance, and complexity warrant the modeling  When analyzing multiple commercial supply proposals  Anytime you award a competitive contract  Whenever there are values in excess of $1M included in the proposal 41. A cost is allowable if it is:  Reasonable, allocable and compliant with CAS/GAAP  Established, disclosed and allocated  According to the terms and conditions of the contract, compliant with CAS/GAAP and certified to be accurate, current and complete  Consistent, uniform, and reasonable 42. Which of the following is a factor used in calculating the Facilities Capital Cost of Money (FCCOM) amount  Division-wide allocation base amounts  Industry-wide allocation base amounts  Proposal allocation base amounts  Percentage of land, building, and profit distributions 43. Identify the correct definition of “Cost Analysis”.  The review and evaluation of individual cost elements and proposed profit/fee in and offeror's proposal  Independent review of vendor quotes, long term agreements, and overhead costs in a proposal  Analysis of “should cost” estimates compared to proposed costs  Factual, not judgmental, and verifiable details of a cost proposal This study source was downloaded by from CourseH on :52:59 GMT -05:00 44. The moving average inventory pricing method is being used when a company recalculates inventory prices every time that a new item is added to inventory.  True  False 45. Given the following data, calculate the sample median. Sample data: 17, 16, 17, 16, 17, 18, 18  17.5  17  18  16 46. Select the item below that would likely be categorized as a Indirect Material cost.  Marketing cost for the sale of a particular item  Frames that are fabricated for each individual unit  Washers and seals used in the assembly process for all of the manufacturer’s products  The purchase of 104 motor assemblies needed to manufacture vehicles 47. Given the improvement curve data, calculate the cost objective for unit #8. Labor hours for unit #4: 120 hours Labor hours for unit #1: 160 hours Rate of improvement: 10% Improvement curve slope: 90%  108  12  16  144 48. When a contract is subject to CAS, the Contracting Officer may not award a contract until a written adequacy determination has been made by the Cognizant Federal Agency Official  True  False 49. A contractor incurs costs for raw materials to be used in two different government contracts. Is the total value of this raw material allocable to one contract?  No, material must be used and charged specifically to the benefiting contract  Yes, because all the material is to be used for government contracts  Yes, due to the efficiency gained by procuring all the material at one time  No, raw material is always charged as an overhead expense 50. Identify the response below that correctly describes the term "Data other than certified cost or pricing data".  Pricing data, cost data, and judgmental information that is not certified, but is used to determine a fair and reasonable price  All facts that prudent buyers and sellers would reasonably expect to affect price negotiationssignificantly and are factual, not judgmental, and are verifiable through certification This study source was downloaded by from CourseH on :52:59 GMT -05:00  Pricing data and cost data that demonstrate an imbalance in unit pricing even though the overallproposed price appears to be fair and reasonable  Pricing data, cost data, and judgmental information that is not certified and therefore cannot be reliedupon to determine a fair and reasonable price 51. Which of the following type of costs would most likely be categorized as both direct costs and indirect costs, depending on the circumstance?  Travel Expense  Utilities  Direct Material  G&A Overhead 52. A “questioned cost” is one that has not yet been evaluated.  True  False 53. The first step when conducting stratified sampling is to identify the population of items to be sampled.  True  False 54. Which variable is also considered the independent variable?  X  Z  R  Y 55. In reviewing the proposal for the robotic surveillance vehicle you asked for clarification on the travel cost listed as an ODC. Which response would justify travel as an ODC?  The travel costs are for the project manager and the manufacturing supervisor to deliver the prototype to the Government testing site for final demonstration testing.  The travel costs are for several senior engineers to attend a conference on the latest development in manufacturing.  The travel costs are for the corporate vice president to attend the annual robotic association meeting.  The travel costs are for warehouse personnel to attend OSHA training on how to safely handle hazardous materials. This study source was downloaded by from CourseH on :52:59 GMT -05:00 Powered by TCPDF ()