2023 CLC 056 /CLC 056 Analyzing Contract Costs Exam QUESTIONS AND ANSWERS GRADED A 1. Identify the circumstances when cost analysis should be performed by answering the following question: “Unless an exception to certified cost or pricing data applies, yo

2023 CLC 056 /CLC 056 Analyzing Contract Costs Exam QUESTIONS AND ANSWERS GRADED A 1. 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? a. All of these are correct b. The award of a subcontract at any tier, if the contractor and each higher-tier subcontractor have been required to furnish certified cost or pricing data. c. The modification of any sealed bid or negotiated contract d. The award of any negotiated contract (except for undefinitized actions such as letter contracts. 2. What is the best method for determining an improvement curve slope? a. Using the median percentage from similar products b. Using established slopes from the Cost Estimator’s Reference Manual c. Using actual historical data d. Using averages derived from recent procurements 3. Each Price Negotiation Memorandum must contain which one of the following?a. Statement that the price is fair and reasonable b. Signature of the Contract Specialist c. Signature of the Legal Counsel d. Statement that the FAR was consistently followed. 4. Which sampling technique is used to focus on high-value items? a. Random b. Stratified c. Cluster d. Nonprobability 5. Which of the following type of costs would most likely be categorized as both direct costs and indirect costs, depending on the circumstance? a. G&A Overhead b. Utilities c. Direct Material d. Travel Expense 6. Using a direct comparison with the cost of a similar contract effort is an acceptable summary estimating technique. a. True b. False 7. Identify when cost analysis would be required. a. For all proposals exceeding the micro purchase threshold b. Whenever a price proposal is received c. When certified cost or pricing data are required d. To evaluate profit or fee 8. What two costs elements are required to calculate an indirect cost rate?a. Expense pool and Allocation base b. Overhead rate and Expense base c. Allocation Pool and Expense base d. Allocation base and Overhead rate 9. 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? a. The travel costs are for the project manager and the manufacturing supervisor to deliver the prototypeto the Government testing site for final demonstration testing. b. The travel costs are for several senior engineers to attend a conference on the latest development in manufacturing. c. The travel costs are for the corporate vice president to attend the annual robotic association meeting. d. The travel costs are for warehouse personnel to attend OSHA training on how to safely handle hazardous materials. 10. Which of the following is an indirect cost pool? a. Manufacturing labor b. Assembly labor c. General and Administrative Expenses d. Direct material 11. What is Certified Cost or Pricing Data subsequently found to have been inaccurate, incomplete, or noncurrent known as? a. Defective Pricing b. Data other than cost or pricing data c. Exception to certified cost or pricing data d. CICA Violation 12. How is simple linear regression used? a. To make predictions about one dependent variable based on one independent variable b. To make predictions about one dependent variable based on more than one independent variable. c. To calculate an estimate that demonstrates the most likely average value based on the data supplied d. To ensure contractor’s estimates properly capture the reduction of labor costs associated with repetitive production tasks. 13. What is the “base” that used in the calculation of the performance rick, contract type rick, and cost efficiency factor when using the weighted guidelines to determine a profit/fee objective? a. Indirect costs b. Total price c. Direct costs d. Total costs 14. What is an important driver to a successful negotiation? a. Obtain the lowest price for the government b. Ensure your position os heard c. Maintain position of power d. Listen to understand 15. How may you request an audit? a. By mail b. By email c. By telephone call d. All of these are correct 16. Which of the following would be a proper method of determining the reasonableness of a contractor’s proposed labor hour estimate? a. Request that the contractor provide a should-cost-estimate b. Decrement labor hours estimate according to DCAA standard decrement c. Compare proposed hours on all other contracts from the same contractord. Compare proposed hours with a government should-cost estimate 17. Identify the correct definition of “Cost Realism Analysis” a. The process of examining and evaluating a proposal to ensure all elements of cost are in line with the Independent Government Estimate b. The review and evaluation of individual cost elements, excluding profit, in a proposal. c. The process of independently reviewing and evaluating specific elements of cost, in part to determine whether they reflect a clear understanding of the requirement. d. The review of a proposal to ensure the contractor has properly documented adherence to their approved estimating system guidelines 18. Select the item below that would likely be categorized as a Direct Material Cost a. Extra material or items that are left over from the contract and cannot be used b. The purchase of 104 motor assemblies needed to manufacture vehicles c. Washers and seals used in the assembly process for all of the manufacturer’s products d. Rail transportation used to get the materials to the offeror’s facility 19. When given a set of data that appears to contain outliers, which measure of central tendency is most appropriate to use? a. Mean b. Mode c. Coefficient of Determination d. Median 20. The cost accounting systems that are used by a contractor manufacturing a number of identical units for multiple customers are: a. Process Cost System b. Generally Accepted Accounting Practice c. Job Order Accounting d. Cost Accounting Standards 21. A cost is allowable if it is: a. Established, disclosed and allocated b. Reasonable, allocable and compliant with CAS/GAAP c. Consistent, uniform and reasonable d. According to the terms and conditions of the contract, compliant with CAS/GAAP and certified to be accurate, current and complete 22. When is it most appropriate to document or model a contractor’s proposal? a. Whenever there are values in excess of $1 million included in the proposal b. When analyzing multiple commercial supply proposals c. When the value, importance and complexity warrant the modeling d. Anytime you award a competitive contract 23. When calculating the confidence interval, the sample standard deviation is used to derive the standard error of the mean a. True b. False 24. The purpose of an audit is to: a. Verify the transaction legality b. Determine the degree of compliance with established procedures c. Determine if the data is accurate and complete d. All of these are correct 25. Which variable is also considered the independent variable? a. X b. Y c. R d. Z 26. When material prices may vary significantly from current inventory values, which estimating method should be used? a. Government User Estimates b. Historical Quotes c. Long TermAgreement Pricing d. Current Supplier Quotes 27. When is the working capital adjustment used while calculating profit/fee? a. On all fixed price contracts with financing b. On all fixed price contracts c. On all cost reimbursement contracts d. On all fixed price contracts with progress payments 28. Which of the following factors is critical to a successful neg 1. 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? a. All of these are correct b. The award of a subcontract at any tier, if the contractor and each higher-tier subcontractor have been required to furnish certified cost or pricing data. c. The modification of any sealed bid or negotiated contract d. The award of any negotiated contract (except for undefinitized actions such as letter contracts. 2. What is the best method for determining an improvement curve slope? a. Using the median percentage from similar products b. Using established slopes from the Cost Estimator’s Reference Manual c. Using actual historical data d. Using averages derived from recent procurements 3. Each Price Negotiation Memorandum must contain which one of the following?a. Statement that the price is fair and reasonable b. Signature of the Contract Specialist c. Signature of the Legal Counsel d. Statement that the FAR was consistently followed. 4. Which sampling technique is used to focus on high-value items? a. Random b. Stratified c. Cluster d. Nonprobability 5. Which of the following type of costs would most likely be categorized as both direct costs and indirect costs, depending on the circumstance? a. G&A Overhead b. Utilities c. Direct Material d. Travel Expense 6. Using a direct comparison with the cost of a similar contract effort is an acceptable summary estimating technique. a. True b. False 7. Identify when cost analysis would be required. a. For all proposals exceeding the micro purchase threshold b. Whenever a price proposal is received c. When certified cost or pricing data are required d. To evaluate profit or fee 8. What two costs elements are required to calculate an indirect cost rate?a. Expense pool and Allocation base b. Overhead rate and Expense base c. Allocation Pool and Expense base d. Allocation base and Overhead rate 9. 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? a. The travel costs are for the project manager and the manufacturing supervisor to deliver the prototypeto the Government testing site for final demonstration testing. b. The travel costs are for several senior engineers to attend a conference on the latest development in manufacturing. c. The travel costs are for the corporate vice president to attend the annual robotic association meeting. d. The travel costs are for warehouse personnel to attend OSHA training on how to safely handle hazardous materials. 10. Which of the following is an indirect cost pool? a. Manufacturing labor b. Assembly labor c. General and Administrative Expenses d. Direct material 11. What is Certified Cost or Pricing Data subsequently found to have been inaccurate, incomplete, or noncurrent known as? a. Defective Pricing b. Data other than cost or pricing data c. Exception to certified cost or pricing data d. CICA Violation 12. How is simple linear regression used? a. To make predictions about one dependent variable based on one independent variable b. To make predictions about one dependent variable based on more than one independent variable. c. To calculate an estimate that demonstrates the most likely average value based on the data supplied d. To ensure contractor’s estimates properly capture the reduction of labor costs associated with repetitive production tasks. 13. What is the “base” that used in the calculation of the performance rick, contract type rick, and cost efficiency factor when using the weighted guidelines to determine a profit/fee objective? a. Indirect costs b. Total price c. Direct costs d. Total costs 14. What is an important driver to a successful negotiation? a. Obtain the lowest price for the government b. Ensure your position os heard c. Maintain position of power d. Listen to understand 15. How may you request an audit? a. By mail b. By email c. By telephone call d. All of these are correct 16. Which of the following would be a proper method of determining the reasonableness of a contractor’s proposed labor hour estimate? a. Request that the contractor provide a should-cost-estimate b. Decrement labor hours estimate according to DCAA standard decrement c. Compare proposed hours on all other contracts from the same contractord. Compare proposed hours with a government should-cost estimate 17. Identify the correct definition of “Cost Realism Analysis” a. The process of examining and evaluating a proposal to ensure all elements of cost are in line with the Independent Government Estimate b. The review and evaluation of individual cost elements, excluding profit, in a proposal. c. The process of independently reviewing and evaluating specific elements of cost, in part to determine whether they reflect a clear understanding of the requirement. d. The review of a proposal to ensure the contractor has properly documented adherence to their approved estimating system guidelines 18. Select the item below that would likely be categorized as a Direct Material Cost a. Extra material or items that are left over from the contract and cannot be used b. The purchase of 104 motor assemblies needed to manufacture vehicles c. Washers and seals used in the assembly process for all of the manufacturer’s products d. Rail transportation used to get the materials to the offeror’s facility 19. When given a set of data that appears to contain outliers, which measure of central tendency is most appropriate to use? a. Mean b. Mode c. Coefficient of Determination d. Median 20. The cost accounting systems that are used by a contractor manufacturing a number of identical units for multiple customers are: a. Process Cost System b. Generally Accepted Accounting Practice c. Job Order Accounting d. Cost Accounting Standards 21. A cost is allowable if it is: a. Established, disclosed and allocated b. Reasonable, allocable and compliant with CAS/GAAP c. Consistent, uniform and reasonable d. According to the terms and conditions of the contract, compliant with CAS/GAAP and certified to be accurate, current and complete 22. When is it most appropriate to document or model a contractor’s proposal? a. Whenever there are values in excess of $1 million included in the proposal b. When analyzing multiple commercial supply proposals c. When the value, importance and complexity warrant the modeling d. Anytime you award a competitive contract 23. When calculating the confidence interval, the sample standard deviation is used to derive the standard error of the mean a. True b. False 24. The purpose of an audit is to: a. Verify the transaction legality b. Determine the degree of compliance with established procedures c. Determine if the data is accurate and complete d. All of these are correct 25. Which variable is also considered the independent variable? a. X b. Y c. R d. Z 26. When material prices may vary significantly from current inventory values, which estimating method should be used? a. Government User Estimates b. Historical Quotes c. Long TermAgreement Pricing d. Current Supplier Quotes 27. When is the working capital adjustment used while calculating profit/fee? a. On all fixed price contracts with financing b. On all fixed price contracts c. On all cost reimbursement contracts d. On all fixed price contracts with progress payments 28. Which of the following factors is critical to a successful neg