CLC 056 ANALYZING CONTRACT COSTS
EXAM PREPARATION TEST BANK WITH
CORRECT ANSWERS
●● 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 *
, ●● A cost is allowable if it is:
Answer: Reasonable, allocable and compliant with CAS/GAAP *
●● What is an important driver to a successful negotiation?
Answer: Listen to understand *
●● Which regression method assumes a linear relationship between the
dependent and independent variables?
Answer: Simple linear regression *
●● What is the single most important decision the Contracting Officer
must make to mitigate cost risk?
Answer: 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.
Answer: True
●● Each Price Negotiation Memorandum must contain which one of the
following?
Answer: Statement that the price is fair and reasonable *
EXAM PREPARATION TEST BANK WITH
CORRECT ANSWERS
●● 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 *
, ●● A cost is allowable if it is:
Answer: Reasonable, allocable and compliant with CAS/GAAP *
●● What is an important driver to a successful negotiation?
Answer: Listen to understand *
●● Which regression method assumes a linear relationship between the
dependent and independent variables?
Answer: Simple linear regression *
●● What is the single most important decision the Contracting Officer
must make to mitigate cost risk?
Answer: 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.
Answer: True
●● Each Price Negotiation Memorandum must contain which one of the
following?
Answer: Statement that the price is fair and reasonable *
