CLC 056 ANALYZING CONTRACT COSTS STUDY
GUIDE QUESTIONS AND ANSWERS 100%
CORRECT!!
,According to FAR 15.4, which of the following is one of the two most preferred price
analysis techniques? - ANSWER Comparison of proposed prices received in response
to the solicitation *
How may you request an audit? - ANSWER All of these are correct
A "questioned cost" is one that has not yet been evaluated. - ANSWER False *
True or False: "Direct labor positions" share the same titles and pay levels. - ANSWER
False *
For which of the following procurements would you require certified cost or pricing data?
- ANSWER 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? - ANSWER To make predictions about one
dependent variable based on one independent variable *
Which of the following is a phase in the allocation cycle? - ANSWER 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? - ANSWER 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: - ANSWER Verify transaction legality
Determine 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? - ANSWER
The Agency Head *
, Select the item below that would likely be categorized as a Direct Material Cost. -
ANSWER 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. - ANSWER True *
Which of the following would be a proper method of determining the reasonableness of
a contractor's proposed labor hour estimate? - ANSWER -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. - ANSWER True *
Identify the ultimate objective of performing proposal analysis. - ANSWER To ensure
the final agreed to price is fair and reasonable *
Identify the correct definition of "Cost Analysis". - ANSWER 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) - ANSWER False *
Which of the following is an effective use of stratified sampling? - ANSWER 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? - ANSWER
When the value, importance, and complexity warrant the modeling *
When is the working capital adjustment used while calculating profit/fee? - ANSWER 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: - ANSWER -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". - ANSWER True *
GUIDE QUESTIONS AND ANSWERS 100%
CORRECT!!
,According to FAR 15.4, which of the following is one of the two most preferred price
analysis techniques? - ANSWER Comparison of proposed prices received in response
to the solicitation *
How may you request an audit? - ANSWER All of these are correct
A "questioned cost" is one that has not yet been evaluated. - ANSWER False *
True or False: "Direct labor positions" share the same titles and pay levels. - ANSWER
False *
For which of the following procurements would you require certified cost or pricing data?
- ANSWER 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? - ANSWER To make predictions about one
dependent variable based on one independent variable *
Which of the following is a phase in the allocation cycle? - ANSWER 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? - ANSWER 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: - ANSWER Verify transaction legality
Determine 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? - ANSWER
The Agency Head *
, Select the item below that would likely be categorized as a Direct Material Cost. -
ANSWER 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. - ANSWER True *
Which of the following would be a proper method of determining the reasonableness of
a contractor's proposed labor hour estimate? - ANSWER -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. - ANSWER True *
Identify the ultimate objective of performing proposal analysis. - ANSWER To ensure
the final agreed to price is fair and reasonable *
Identify the correct definition of "Cost Analysis". - ANSWER 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) - ANSWER False *
Which of the following is an effective use of stratified sampling? - ANSWER 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? - ANSWER
When the value, importance, and complexity warrant the modeling *
When is the working capital adjustment used while calculating profit/fee? - ANSWER 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: - ANSWER -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". - ANSWER True *
