Test - PMT 4910 PM Advanced Certification Exam Prep Course - Exam 2 | Completed questions and answers 100% Correct - DAU.

Test - PMT 4910 PM Advanced Certification Exam Prep Course - Exam 2 Recall the purpose and importance of Understanding Industry and Business Aspects. Question 1 0f 23. Which formula would you use to compare Return on Sales (ROS) between companies? O ROS = Gross Proft/Sales s (] Mark for follow up. Question 2 of 23. Which category of ratios indicates how a company is using debt to fund itself,its expansion plans, and its capital structure? O Proftabilty ratios O Ccapialization ratios O Liquidity ratios © Actiity ratios (5 mark for follow up Question 3 of 23. Which of the following are true about discount rate? (Select the two that apply.) 5 The discount rate does not carry uncertainty. (5 The discount rate is often referred to as the hurdie rate. [ The discount rate is highly subjective. [ The discount rate is reduced for high-isk investments. (I Mark for follow up Question 4 0f 23. Under which circumstance is a company most likely to price its product to cover only its non- fixed costs? O When itintends to take a loss on the sale ® Wheniitis trying to enter a dominant company’s market space O When ts production facilties are operating at capacity O When it believes it could Iater have a viable private sector market CIMark forfolow up @ Traning detat Curiculum X €« C A U VUMen It DelleVes IT COUID 1ater Nave @ Viaoie PIVale Secror market (CJMark for follow up Question 5 of 23. Why are quarterly earnings reports so important for a publicly traded company? O Proiit on Fixed Price Incentive Firm (FPIF) coniracts may decrease as the level of eamings decreases ® Shareholders put value on profitable and predictable retums on investment O Eamned Value Management reports could be impacted O Not achieving its forecast could affect its auditability (I Mark for follow up Question 6 of 23. A greater emphasis on shorter-term incentives is intended to guide behavior more toward which of the following? © Implementation of the strategic plan @ Excellent delivery of work in hand © Net positive cash flow across the company from one y O stock value growth rto the next (] Mark for follow up Question 7 of 23. Which of the following best describes a monopsony? © Many customers, many suppliers © Many customers, single supplier @ single customer, several suppliers © single customer, single supplier () mark for follow up Question 8 of 23. How are subcontractor costs captured in the prime’s price to the govemment? O As a separate contractually billed line item O As part of GBA ® hs direct material © As part of an indirect labor pool (CJMark for follow up Question 9 of 23. Which of the following is a true statement about cash flow? O cash flow is profitability * * @ Training detail: Curriculum X+ - 8 x € C @ % (I Mark for follow up Question 9 of 23. Which of the following is a true statement about cash flow? O cash flow is profitability O stock buy-backis a contributor to a company’s positive cash flow ® Cash flow is an indicator of a company's abilty to meet its short-term financial commitments O Positive cash flow is usually a cause of business failure (I Mark for follow up Question 10 of 23. What two costs have a major bearing on a company's decision to outsource? © Communications Cost and Business Cost O Production Cost and Disposal Cost @ Transaction Cost and Production Cost © Allocated Cost and Allowable Cost (] Mark for follow up Question 11 of 23. A contractor believes that an RFP contains extremely high technical risk, and the range of potential cost outcomes is very large. Which of the following contract types should the contractor pursue, assuming it wants zero cost risk and zero fee risk? O Cost Plus Award Fee O Cost Plus Incentive Fee ® Cost Plus Fixed Fee O Fixed Price Incentive Firm Target (I mark for follow up Question 12 of 23. Which of the following does not tend to drive differences between the contractor's and govermment's cost estimates? O Htems having major impact on program cost O Htems with a high variation i value ® tems for which a small change in value has litle impact on overall program cost O items with a high programmatic risk (I Mark for follow up Question 13 of 23. Which one of the following is best to exclude from a company’s Forward Pricing Rate Agreements (FPRA) proposal to DCMA? AL © Anew, funded program, ofor which my company has theST only, proprietary solution. @ Traning detat Curiculum X - 8 x €« C @ (CJMark for follow up Question 13 of 23. Which one of the following is best to exclude from a company’s Forward Pricing Rate Agreements (FPRA) proposal to DCMA? (© Anew, unded program, for wich my company has the ony proprietary souton O Are-competsof my contractat he end ofth perod of performance tht exceeded the customer's expectaons ® An opion yearofcutent work tht the HAG and SAC unfunded inthlr vrsion of next years appropration b © Increased employee raining, necessary 1o be complant with new ederal pocy. (I Mark for follow up Question 14 of 23. Which ratio indicates if a company carries excessive debt? O Asset Tumover ratio © Long-Term Deb to Capital ratio @ Financial Leverage Ratio © Retum on Equity ratio (2] Mark for follow up Question 15 of 23. Which of the following is a probable reason a company's total gross profit margin by the end of a fixed price contract was much higher than what it negotiated with the government? O Htsignificantly underestimated its overhead rates, which the govermment adjusted upward at the end of the first period of performance O it maintained the level of operational efficiency it forecast for doing the work @® it won unplanned work after award against which it was able to allocate some company fixed costs © 1t bid the work as a Loss Leader () mark for follow up Question 16 of 23. What financial report shows the book value of a company at a point in time? © statement of Cash Flows O Income statement ® Balance sheet O Rates shest (I Mark for follow up Question 17 of 23. What do profitability ratios indicate? O How efficiently and effectively a company is using its assetsto generate sales O How a company is using debt to fund itsefT ts expansion plans, and its capital structure@ Training detail: Curriculum X + € 2 C M () Mark for follow up Question 17 of 23. What do profitability ratios indicate? © How efficiently and effectively a company is using its assets to generate sales O Howa company is using debt to fund itself, its expansion plans, and its capital structure @® How much netincome is left to a company from its sales © How well the company is using its assets to create revenue (D) mark for follow up Question 18 of 23. Which of the following explains the purpose for examining an organization’s financial statements as part of a financial capability analysis? © To verify the organization is presenting its true financial status. © To calculate absolute numbers @ To examine the capabilities of a company in terms of financial resources and stability. OTo analyze the entity’s organizational structure. () Mark for follow up Question 19 of 23. A purpose of negotiating for what you hope to be a long-term relationship is: O to develop an association rooted in positional interests O towin @® to create value for both parties O to understand what the other side wants, without regard for why it wants it () Mark for follow up Question 20 of 23. What are two primary financial measures used by firms that can affect executive compensation? @® ROIC and Cash Flow O current Ratio and Return on Equity O Stock Turn and Price to Eamings Ratio O Debt and Equity Ratios () Mark for follow up Question 21 of 23. ct_url=%2fphnx%2fd! Given changes (budget cuts, schedule slip, etc.) to a planned government solicitation, what is one benefit of financial projections that is aided by a Cost-Volume-Profit analysis? @ A Cost-Volume-Profit analysis helps to calculate whether changes will affect a company's ability to cover its costs with its total sales revenue. © ACost-Volume-Profit analysis can accurately project changes over a period of many years. ct_url=%2fphnx%2fd! earning%2fC %2 6TargetUser%3d940166%2 @ Training detail: Curriculum X + €« C M 25 O towin ® to create value for both parties O to understand what the other side wants, without regard for why it wants it () Mark for follow up Question 20 of 23. What are two primary financial measures used by firms that can affect executive compensation? @® ROIC and Cash Flow O current Ratio and Return on Equity © stock Turn and Price to Earnings Ratio O Debt and Equity Ratios () Mark for follow up Question 21 of 23. Given changes (budget cuts, schedule slip, etc.) to a planned government solicitation, what is one benefit of financial projections that is aided by a Cost-Volume-Profit analysis? @ A Cost-Volume-Profit analysis helps to calculate whether changes will affect a company's ability to cover its costs with its total sales revenue. O ACost-Volume-Profit analysis can accurately project changes over a period of many years. © A Cost-Volume-Profit analysis can show how changes to a company’s sales can change its investment strategy. © A Cost-Volume-Profit analysis does not require the analyst to make any assumptions about how the changes might affect the company. () Mark for follow up Question 22 of 23. What do the Net Present Value tables provide for any combination of number of periods and discount rates? @® The present value of those projected future cash payments (@] A comparison of project risks © A comparison of investment alternatives O Dpiscount factors () Mark for follow up Question 23 of 23. Which of the following statements conceming contractor costs is true? @® GaAis part of the fully burdened cost of an employee © Overhead costs are those that are traceable to a single pr contract of a larg pany O Direct costs are the costs associated with operating the company or business unit as a whole © Machinist labor rates are usually an overhead cost () Mark for follow up [ Save / Return Later ] [ Summary Questions 2 and 3 laye! 6TargetUser%3d940166%26curric... * fu}@ Traning detat Curiculum X € C @ % Recall the purpose and importance of Understanding Industry and Business Aspects. Question 1 0f 23. Which formula would you use to compare Return on Sales (ROS) between companies? O ROS = Gross Profit/Sales ® ROS = EBIT/Total Sales O ROS = Net WorthiSales © ROS = Cost of Sales/Sales (T Mark for follow up Question 2 of 23. Which category of ratios indicates how a company is using debt to fund itself,its expansion plans, and its capital structure? O Proftabilty ratios @ Capitalization ratios O Liquity ratios © Actiiy ratios (] Mark for follow up Question 3 of 23. Which of the following are true about discount rate? (Select the two that apply.) (2) The discount rate does not carry uncertainty. The discount rate is often referred to as the hurdie rate. The discount rate is highly subjective. [ The discount rate is reduced for high-isk investments. (O mark for follow up. Question 4 of 23. Under which circumstance is a company most likely to price its product to cover only its non. fixed costs? © When itintends to take a loss on the sale ® Whenitis trying to enter a dominant company’s market space O When ts production facilties are operating at capacity (© When it believes it could later have a viable private sector market (I Mark for follow up Question 5 of 23. Why are quarterly earnings reports so important for a publicly traded company? () Drnfit an Eivant Brica Incantiva Eirm (EDIEY rantrarts may darraaca ac tha laval nf aaminns darrascas Questions on Test: 23 Questions Correct: 23 Questions Incorrect: 0 Percent Correct: 100% Passing Score: 85% Pass/F; Review Test: Review Passed Scores By Section Recall the purpose and importance of 100% (23 Out Of 23) i y and i Aspects.: Overall Score: 100% (23 Out Of 23) * O r €]