CON 170 TEST NUMBER 1 25 QUESTIONS/4 POINTS EACH

CON 170 TEST NUMBER 1 25 QUESTIONS/4 POINTS EACH 1. The term “cost or pricing data” means all facts that, as of the date of agreement on the price of a contract (or the price of a contract modification), or, if applicable consistent with subsection (e)(1)(B), another date agreed upon between the parties, a prudent buyer or seller would reasonably expect to affect price negotiations significantly. Such term does include information that is judgmental, but does not include the factual information from which a judgment was derived. • A. True • B. False 2. “Cost or pricing data” (10 U.S.C. 2306a(h)(1) and 41 U.S.C. 254b) means all facts that, as of the date of price agreement, or, if applicable, an earlier date agreed upon between the parties that is as close as practicable to the date of agreement on price, prudent buyers and sellers would reasonably expect to affect price negotiations significantly is covered in: • A. FAR 19.5 • B. FAR 22.101 • C. FAR 2.101 • D. FAR 21.01 3. Cost or pricing data are factual, not judgmental; and are verifiable. While they do not indicate the accuracy of the prospective contractor’s judgment about estimated future costs or projections, they do include the data forming the basis for that judgment. Cost or pricing data are more than historical accounting data; they are all the facts that can be reasonably expected to contribute to the soundness of estimates of future costs and to the validity of determinations of costs already incurred. They also include, but are not limited to, such factors as: • A. Vendor quotations • B. Non-reoccurring cost • C. Make-or-Buy decisions • D. Estimated resources to attain business goals. • E. All of the above. 4. Certified cost or pricing data” means “cost or pricing data” that were required to be submitted in accordance with FAR 15.403-4 and 15.403-5 and have been certified, or are required to be certified, in accordance with 15.406-2. • A. True • B. False 5. Which of the three key TINA Language does this statement apply, subsection (d) “Submission of Other Information”: “includes, at a minimum, appropriate information on the prices at which the same item or similar items have previously been sold that is adequate for evaluating the reasonableness of the price for the procurement.” • A. Certified cost or pricing data • B. Data other than certified cost or pricing data • C. Cost or pricing data • D. Data or pricing certified 6. According to FAR 15.402(a); who makes the determination that prices are fair and reasonable? • A. PCO and price analysts • B. Price analysts and KTR • C. There are multiple parties that decide • D. Only the Contracting Officer 7. According to FAR 15.403-4; the $750,000 threshold applies to modifications and awards. How frequent does the threshold change? • A. Every 3 years • B. Every 2 years • C. Every year • D. None of the above 8. What are the exceptions to the requirement for contractors to submit certified cost and pricing data? • A. (a)(1) • B. (a)(3)(A) • C. (b)(1) thru (b)(7) • D. a. and b. 9. According to FAR 31.103(b)(2) and Far subpart 42.7; indirect cost rate should not be negotiated. • A. True • B. False 10. While the total cost of a contract includes all costs properly allocable to the contract, the allowable costs to the Government are limited to those allocable costs which are allowable pursuant: • A. FAR 31.201-1(b) • B. FAR 31.101-1(b) • C. Part 31.1 • D. Part 31.2 11. Cost incurred specifically for the contract defines: • A. G & A cost • B. Direct cost • C. Cost of doing business • D. Indirect cost 12. Material Overhead cost include: • A. Inventory adjustments • B. Employee related expenses • C. Vendor quality assurance • D. All of the above 13. General & Administrative (G&A) expense cost include: • A. Inbound transportation • B. Indirect labor • C. Scrap sales credits • D. None of the above 14. Return on Assets (ROA) shows that ratio indicates operating profit margin, or how much profit earned per dollar. • A. True • B. False 15. How does the price today compare with the price twelve months ago when using price index numbers? • A. Inflate or deflate prices • B. Prices for direct comparison • C. A and B • D. Only B 16. How can we estimate what labor rates will be two years from today? • A. Historical data • B. Estimate • C. Project prices • D. B and C • 17. Current year dollars can never be adjusted according to pricing index: • A. True • B. False 18. Cost of living allowance (COLA) is mandated by OPM to help keep salaries at a “constant” level – without falling behind (or jumping ahead of) inflation. • A. True • B. False 19. The Government price index most commonly used in material pricing is: • A. Consumer Price Index (CPI) • B. Employment, Hours and Earning Survey • C. Producer Price Index (PPI) • D. Commercial Indexes 20. Indexing calculations for new price us which of the follow symbols: • A. NP • B. NC • C. NI • D. Only A and C 21. The main assumption in using price index numbers is: if the Index Numbers within 2 periods have changed by a certain percentage, then prices for the same period would change accordingly. • A. True • B. False 22. What is the relative difference between the offered price and the should-pay price? • A. Price indexes change • B. Should-pay price will rarely be exact to offered price • C. Actual price change • D. Price reasonableness 23. If a contractor produces zero units, or several hundred (up to max capacity), this an example of: • A. Direct cost • B. Fixed cost • C. Indirect cost • D. Level of activity 24. When considering the Break-even Point; our goal is to ensure the contractor is earning enough money to remain in business, and not pay prices that are irrationally low. This leads us to a study of “contribution income,” which helps us understand the relationship between selling price contributes to the contractor’s costs and profit. • A. True • B. False 25. DFARS 252.216-7002 Alternate A Para (c ) states: The offeror must establish fixed hourly rates using separate rates for each category of labor to be performed by each subcontractor and for each category of labor to be performed by the offeror, and for each category of labor to be transferred between divisions, subsidiaries, or affiliates of the offeror under a common control. Therefore, blended rates may be used: • A. True • B. False