CLC 056 Analyzing Contract Costs Study Guide Questions With 100% Correct

According to FAR 15.4, which of the following is one of the two most preferred price analysis techniques? - Comparison of proposed prices received in response to the solicitation * How may you request an audit? - All of these are correct A "questioned cost" is one that has not yet been evaluated. - False * True or False: "Direct labor positions" share the same titles and pay levels. - False * For which of the following procurements would you require certified cost or pricing data? - An offer of $800,000 for an item from the only known source of an electronic system unique to Government requirements. How is simple linear regression used? - To make predictions about one dependent variable based on one independent variable * Which of the following is a phase in the allocation cycle? - Final Allocation Phase 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? - Selecting the appropriate contract type Developing a price negotiation objective for labor costs * Evaluating the bill of materials Assigning the risk factors for profit calculations The purpose of an audit is to: - Verify transaction legalityDetermine if the data is accurate and complete All of these are correct * Determine the degree of compliance with established procedures Who has the authority to waive CAS applicability for a particular contract? - The Agency Head * A cost is allowable if it is: - Reasonable, allocable and compliant with CAS/GAAP * What is an important driver to a successful negotiation? - Listen to understand * Which regression method assumes a linear relationship between the dependent and independent variables? - Simple linear regression * What is the single most important decision the Contracting Officer must make to mitigate cost risk? - Selection of contract type * 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 Each Price Negotiation Memorandum must contain which one of the following? - Statement that the price is fair and reasonable * Select the item below that would likely be categorized as a Direct Material Cost. - The purchase of 104 motor assemblies needed to manufacture vehicles * Using a direct comparison with the cost of a similar contract effort is an acceptable summary estimating technique. - True * 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 *A Disclosure Statement is required when Contractor receives a CAS covered contract or a subcontract valued at $60 million in a cost accounting period. - True * Identify the ultimate objective of performing proposal analysis. - To ensure the final agreed to price is fair and reasonable * Identify the correct definition of "Cost Analysis". - The review and evaluation of individual cost elements and proposed profit/fee in and offeror's proposal * True or False: The national average mortgage rate is used in calculating Facilities Capital Cost of Money (FCCOM) - False * 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 When is it most appropriate to document or model a contractor's proposal? - When the value, importance, and complexity warrant the modeling * When is the working capital adjustment used while calculating profit/fee? - On all fixed price contracts with progress payments * 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 True or False: Special test equipment that is engineered, designed, fabricated, or modified to meet specific contract needs and cannot be used for other contracts can be categorized as "other direct costs". - True *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 *