CLC 056 Analyzing Contract Costs – Full
200-Question Exam Bank & Study
Guide (DAU 2026/2027) 100% correct |
verified questions and answers |
(newest)
DOMAIN 1: COST ANALYSIS PRINCIPLES AND
TECHNIQUES
1. Identify the circumstances when cost analysis should be performed.
• Answer: When certified cost or pricing data are required.
2. Unless an exception to certified cost or pricing data applies, you can perform
cost analysis on which of the following procurements?
• Answer: All of these are correct (award of a subcontract at any tier if certified
cost or pricing data are required; modification of any sealed bid or negotiated
contract; award of any negotiated contract except undefinitized actions).
3. What is the best method for determining an improvement curve slope?
• Answer: Using actual historical data.
4. True or False: Simple linear regression is most appropriate when there is
more than one independent variable.
, • Answer: False.
5. Which measure of central tendency is most appropriate when given a set of
data that appears to contain outliers?
• Answer: Median.
6. Which sampling technique is used to focus on high-value items?
• Answer: Stratified sampling.
7. Using a direct comparison with the cost of a similar contract effort is an
acceptable summary estimating technique.
• Answer: True.
8. 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.
9. What is cost realism analysis?
• Answer: Cost realism analysis is the process of evaluating whether the
proposed costs are realistic for the work to be performed, reflecting a clear
understanding of the requirements and providing for adequate performance.
10. What is the difference between cost analysis and price analysis?
• Answer: Cost analysis evaluates the individual cost elements (labor, materials,
overhead, profit) to determine if they are reasonable, while price analysis
evaluates the total price without examining individual cost components.
11. What is the primary purpose of a Price Negotiation Memorandum (PNM)?
, • Answer: To document the negotiation process and the basis for determining
that the price is fair and reasonable.
12. Each Price Negotiation Memorandum must contain which one of the
following?
• Answer: A statement that the price is fair and reasonable.
13. What is an improvement curve?
• Answer: An improvement curve (learning curve) reflects the phenomenon that
as production quantity increases, the time and cost per unit decrease at a
predictable rate.
14. What is the difference between a learning curve and an improvement curve?
• Answer: The terms are often used interchangeably; learning curve typically
refers to labor hours decreasing with production experience, while
improvement curve encompasses broader cost reductions.
15. What is the purpose of conducting a cost realism analysis?
• Answer: To assess whether the proposed costs are consistent with the
technical approach and provide reasonable assurance of successful
performance.
16. What is the significance of FAR 15.404-1?
• Answer: It provides guidance on proposal analysis techniques, including cost
analysis, price analysis, and cost realism analysis.
17. What is the role of the Defense Contract Audit Agency (DCAA) in cost
analysis?
200-Question Exam Bank & Study
Guide (DAU 2026/2027) 100% correct |
verified questions and answers |
(newest)
DOMAIN 1: COST ANALYSIS PRINCIPLES AND
TECHNIQUES
1. Identify the circumstances when cost analysis should be performed.
• Answer: When certified cost or pricing data are required.
2. Unless an exception to certified cost or pricing data applies, you can perform
cost analysis on which of the following procurements?
• Answer: All of these are correct (award of a subcontract at any tier if certified
cost or pricing data are required; modification of any sealed bid or negotiated
contract; award of any negotiated contract except undefinitized actions).
3. What is the best method for determining an improvement curve slope?
• Answer: Using actual historical data.
4. True or False: Simple linear regression is most appropriate when there is
more than one independent variable.
, • Answer: False.
5. Which measure of central tendency is most appropriate when given a set of
data that appears to contain outliers?
• Answer: Median.
6. Which sampling technique is used to focus on high-value items?
• Answer: Stratified sampling.
7. Using a direct comparison with the cost of a similar contract effort is an
acceptable summary estimating technique.
• Answer: True.
8. 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.
9. What is cost realism analysis?
• Answer: Cost realism analysis is the process of evaluating whether the
proposed costs are realistic for the work to be performed, reflecting a clear
understanding of the requirements and providing for adequate performance.
10. What is the difference between cost analysis and price analysis?
• Answer: Cost analysis evaluates the individual cost elements (labor, materials,
overhead, profit) to determine if they are reasonable, while price analysis
evaluates the total price without examining individual cost components.
11. What is the primary purpose of a Price Negotiation Memorandum (PNM)?
, • Answer: To document the negotiation process and the basis for determining
that the price is fair and reasonable.
12. Each Price Negotiation Memorandum must contain which one of the
following?
• Answer: A statement that the price is fair and reasonable.
13. What is an improvement curve?
• Answer: An improvement curve (learning curve) reflects the phenomenon that
as production quantity increases, the time and cost per unit decrease at a
predictable rate.
14. What is the difference between a learning curve and an improvement curve?
• Answer: The terms are often used interchangeably; learning curve typically
refers to labor hours decreasing with production experience, while
improvement curve encompasses broader cost reductions.
15. What is the purpose of conducting a cost realism analysis?
• Answer: To assess whether the proposed costs are consistent with the
technical approach and provide reasonable assurance of successful
performance.
16. What is the significance of FAR 15.404-1?
• Answer: It provides guidance on proposal analysis techniques, including cost
analysis, price analysis, and cost realism analysis.
17. What is the role of the Defense Contract Audit Agency (DCAA) in cost
analysis?
