CLC 056 Analyzing Contract Costs Study Guide

CLC 056 Analyzing Contract Costs Study Guide CLC 056 Analyzing Contract Costs Study Guide According to FAR 15.4, which of the following is one of the two most preferred price analysis techniques? How may you request an audit? A "questioned cost" is one that has not yet been evaluated. True or False: "Direct labor positions" share the same titles and pay levels. For which of the following procurements would you require certified cost or pricing data? How is simple linear regression used? Which of the following is a phase in the allocation cycle? 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? The purpose of an audit is to: Who has the authority to waive CAS applicability for a particular contract? A cost is allowable if it is: What is an important driver to a successful negotiation? Which regression method assumes a linear relationship between the dependent and independent variables? What is the single most important decision the Contracting Officer must make to mitigate cost risk? 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. Each Price Negotiation Memorandum must contain which one of the following? Select the item below that would likely be categorized as a Direct Material Cost. * Using a direct comparison with the cost of a similar contract effort is an acceptable summary estimating technique. Which of the following would be a proper method of determining the reasonableness of a contractor's proposed labor hour 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. Identify the ultimate objective of performing proposal analysis. Identify the correct definition of "Cost Analysis". 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) Which of the following is an effective use of stratified sampling? When is it most appropriate to document or model a contractor's proposal? When is the working capital adjustment used while calculating profit/fee? The cost accounting systems that are used by a contractor manufacturing a number of identical units for multiple customers are: 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". When the Contracting Officer has relied on certified cost or pricing data in the price determination, which of the following statements is true? The first step when conducting stratified sampling is to identify the population of items to be sampled. What is the most common base for calculating the General and Administrative (G&A) overhead rate? A measure of the amount of dispersion, or distance, between data points is the: Which of the following is the preferred method for determining if a proposed cost is reasonable? Which situation below would you use improvement curve analysis to evaluate proposed costs? Which of the following situations are considered exempt from the submission of Certified Cost or Pricing Data? When calculating the confidence interval, the sample standard deviation is used to derive the standard error of the mean. Identify the response below that correctly describes the term "Data other than certified cost or pricing data". Which sampling technique is used to focus on high-value items? Given the following data, calculate the standard deviation. Sample data: 13, 12, 9, 15, 11, 16, 17, 8, 12, 7, 12 When using simple linear regression to analyze the estimated price for a used car, which of the following independent variables would result in a realistic estimating equation? True of False: After completing the five-step Least-Best-Squares-Fit (LBSF) process when developing a regression equation, you must evaluate the "goodness" of the fit and the statistical significance. What is the negotiation term that reflects each party emphasizing the long term effects and benefits as well as both parties defining their interests to be achieved in conjunction with the outcome? What is the best method for determining an improvement curve slope? The moving average inventory pricing method is being used when a company recalculates inventory prices every time that a new item is added to inventory. What two costs elements are required to calculate an indirect cost rate? What is the government's primary objective in negotiations? Identify the primary issue you should consider when analyzing direct labor categories in a contractor's proposal. estimate? Which of the following must be true to properly classify a cost as an "other direct cost"? Which of the following labor classifications most likely involves fashioning parts from raw materials or purchased materials? Which of these situations warrants the use of a round-table estimate? When is it most appropriate to document or model a contractor's proposal? correct Which of the following are factors used in calculating the Facilities Capital Cost of Money (FCCOM) amount? What is the "base" that used in the calculation of the performance risk, contract type risk, and cost efficiency factor when using the weighted guidelines to determine a profit/fee objective? A cost is ALLOCABLE if it: Given the following improvement curve data, calculate the cost objective for unit #64. Labor hours for unit #32: 42,000 hours Labor hours for unit #1: 79,000 hours Rate of improvement: 20% Improvement curve slope: 80% A contractor incurs costs for raw materials to be used in two different government contracts. Is the total value of this raw material allocable to one contract? Which one of the choices below is the correct definition of other direct costs? A contractor incurs a cost which is determined to be unallowable. Other costs which would not have been incurred had the unallowable cost not been incurred are also unallowable. Which variable is also considered the independent variable? True or False: Simple linear regression is most appropriate when there is more than one independent variable. Which of the following labor categories in a contractor's proposal for Grounds Maintenance would raise concern? Identify when cost analysis would be required. True or False: "Position class" is a grouping of all positions that share the same title and pay level. Which of the following type of costs would most likely be categorized as both direct costs and indirect costs, depending on the circumstance? In reviewing the proposal for the robotic surveillance vehicle you asked for clarification on the travel cost listed as an ODC. Which response would justify travel as an ODC? What is Certified Cost or Pricing Data subsequently found to have been inaccurate, incomplete, or noncurrent known as? Which contract clause is inserted in contracts that are subject to full CAS coverage? When material prices may vary significantly from current inventory values, which estimating method should be used? Which of the following situations would the use of improvement curve analysis likely be useful in evaluating proposed costs? Identify the correct definition of "Cost Realism Analysis". Which of the following is a factor that most directly affects profit/fee calculations? The "questioned cost" is one that has not yet been evaluated. Identify the circumstances when cost analysis should be performed by answering the following question. "unless an exception to certified cost or pricing data applies, you can perform cost analysis on which of the following procurements?" Identify the situation where you would use simple linear regression. When certified cost pricing data is required, data showing that adequate price competition for acquisitions exceeding the TINA threshold was obtained is required as part of the contractor's proposal. Which of the following is an example of a cost estimating technique that would be used when producing a summary cost estimate? A contractor submits a cost proposal and includes support that its proposed costs are what it would actually incur during contract performance. In this case, the Government contracting officer is required to consider the proposed costs as reasonable. What is the definition of a Disclosure Statement? Which of the following is the best strategy to mitigate cost risk? The mean, median and mode are typically the same when a sample exhibits significant dispersion.