CCIFP Exam Actual Questions and
Correct Answers| Latest Update
a contractor has a claim for extended field overhead on a federal government
contract. the contract billings were $10 million. the contractor's total billings
during the contract period were $100 million. the contractors total overhead
cost during the contract period were $3 million. the contractor worked 1 year on
the project. the government caused the contractor to be delayed by 60 days on
this contract. using the Eichleay formula, what is the contractors claim for
overhead due to the delay?
- $42,353
- $49,315
- $493,151
- $59,016
$49,315
Contract billings / Total billings during contract period = Overhead %
$10,000,000 / $100,000,000 = 10%
Overhead % x Total overhead during contract period = Allocated overhead
10% x $3,000,000 = $300,000
Allocated overhead / Days of contract performance = Overhead per day
$300, = $821.92
,Overhead per day x Number of days delayed = Overhead due to delay
$821.92 x 60 = $49,315
On a typical construction project whereby the owner has requested
performance and payment bonds from the general contractor, the owner is
referred to as the...
- Principal
- Obligee
- Underwriter
- Obligor
obligee
when computing the taxable income for a proposed capital project, the financial
manager should use which tax rate?
- Average
- Base
- Marginal
- Capital Gains
marginal
,What coverage trigger is used with a commercial general liability policy when
the insurance policy in effect at the time the property damage loss occurs
responds to that loss, regardless of when the contractor learns about the loss or
when a claim is filed against the contractor?
- Limitation of liability trigger
- Stop loss trigger
- Occurrence trigger
- Claims made trigger
Occurrence trigger
Under an occurrence-based policy, coverage is triggered by the date the damage
or injury occurs, not when the claim is made or discovered. This means the policy
in force at the time of the incident will respond, even if the claim is filed years
later.
Claims made trigger applies when the policy only covers claims made during the
policy period, regardless of when the incident occurred. This is common in
professional liability insurance but not typical for standard CGL policies.
Pursuant to GAAP, which of the following methods of recognizing revenue is
most frequently used in construction accounting?
- Accrual (Billing) Method
- Cash Method
- Completed Contract Method
- Percentage of Completion Method
Percentage of Completion Method
, Contractors can maximize controls over cash disbursements by implementing
some of the following..... 15.06 [2]
1) Knowing vendor systems
2) Using Controlled Disbursement bank Accounts
3) Implementing an open purchase order/contract commitment system
4) Soliciting Cooperation from Project Management to minimize early Payments to
subcontractors and suppliers
What role do Domain Controllers Serve within an Active Directory?
To manage trust among the domains by granting access to users from one domain
to the other via a proper security authentication process.
a construction company should record interest rate swaps purchased for
business purposes using which method of valuation?
- Intrinsic value
- Fair market value
- Net present value
- Discounted value
Fair Market Value
Correct Answers| Latest Update
a contractor has a claim for extended field overhead on a federal government
contract. the contract billings were $10 million. the contractor's total billings
during the contract period were $100 million. the contractors total overhead
cost during the contract period were $3 million. the contractor worked 1 year on
the project. the government caused the contractor to be delayed by 60 days on
this contract. using the Eichleay formula, what is the contractors claim for
overhead due to the delay?
- $42,353
- $49,315
- $493,151
- $59,016
$49,315
Contract billings / Total billings during contract period = Overhead %
$10,000,000 / $100,000,000 = 10%
Overhead % x Total overhead during contract period = Allocated overhead
10% x $3,000,000 = $300,000
Allocated overhead / Days of contract performance = Overhead per day
$300, = $821.92
,Overhead per day x Number of days delayed = Overhead due to delay
$821.92 x 60 = $49,315
On a typical construction project whereby the owner has requested
performance and payment bonds from the general contractor, the owner is
referred to as the...
- Principal
- Obligee
- Underwriter
- Obligor
obligee
when computing the taxable income for a proposed capital project, the financial
manager should use which tax rate?
- Average
- Base
- Marginal
- Capital Gains
marginal
,What coverage trigger is used with a commercial general liability policy when
the insurance policy in effect at the time the property damage loss occurs
responds to that loss, regardless of when the contractor learns about the loss or
when a claim is filed against the contractor?
- Limitation of liability trigger
- Stop loss trigger
- Occurrence trigger
- Claims made trigger
Occurrence trigger
Under an occurrence-based policy, coverage is triggered by the date the damage
or injury occurs, not when the claim is made or discovered. This means the policy
in force at the time of the incident will respond, even if the claim is filed years
later.
Claims made trigger applies when the policy only covers claims made during the
policy period, regardless of when the incident occurred. This is common in
professional liability insurance but not typical for standard CGL policies.
Pursuant to GAAP, which of the following methods of recognizing revenue is
most frequently used in construction accounting?
- Accrual (Billing) Method
- Cash Method
- Completed Contract Method
- Percentage of Completion Method
Percentage of Completion Method
, Contractors can maximize controls over cash disbursements by implementing
some of the following..... 15.06 [2]
1) Knowing vendor systems
2) Using Controlled Disbursement bank Accounts
3) Implementing an open purchase order/contract commitment system
4) Soliciting Cooperation from Project Management to minimize early Payments to
subcontractors and suppliers
What role do Domain Controllers Serve within an Active Directory?
To manage trust among the domains by granting access to users from one domain
to the other via a proper security authentication process.
a construction company should record interest rate swaps purchased for
business purposes using which method of valuation?
- Intrinsic value
- Fair market value
- Net present value
- Discounted value
Fair Market Value
