Defense Acquisition University CLC CLC 056| CLC 056 (7 sets for the final exams) Complete questions and answers 23|24.

Analyzing Contract Costs ExamHere is your test result.The dots represent the choices you have made. The highlighted questions are the questions you have missed. Remediation Accessed shows whether you accessed those links.'N' represents links not visited and 'Y' representsvisited links. Back to Status pagecontains 55 Questions1) Which of the following types of costs might be found both as direct costs and indirect costs,depending on the circumstance? [Recognize concerns that affect the other direct costs proposed]Travel Direct Material G&A Overhead Utilities 2) Which of these statements below is correct regarding the criteria for classifying a special testequipment cost as an "other direct cost”? [Determine if the other direct costs are properly proposed]Engineered, designed, fabricated, or modified to meet specific contract needs and cannot be used forother contracts An item (e.g., fixture, pattern, or gauge) that is necessary in aiding the development of a unique productEngineered, designed, fabricated, or modified to meet not only the requirements of the current contractbut also the requirements of all other contracts Developed and engineered by a subcontractor who is not currently working on another contract3) Which of the following is an indirect cost pool? [Identify indirect cost pools and bases] General and Administrative Expenses Direct material Assembly labor Manufacturing labor 4) What two costs elements are required to calculate an indirect cost rate? [Identify the process ofcalculating indirect cost rates] Expense pool and Allocation base Overhead rate and Expense base Allocation Pool and Expense base Allocation base and Overhead rate DAU 5) Which of the following is a phase in the allocation cycle? [Identify the cost allocation cycle] Final Allocation Phase Interim Processing Phase Adjustment on Rates Phase Continuous Rate Application Phase 6) How is simple linear regression used? [Identify what regression analysis is] [Remediation Accessed:N] To make predictions about one dependent variable based on one independent variableTo make predictions about one dependent variable based on more than one independent variableTo calculate an estimate that demonstrates the most likely average value based on the data suppliedTo ensure contractor’s estimates properly capture the reduction of labor costs associated withrepetitive production tasks 7) Which regression method assumes a linear relationship between the dependent and independentvariables? [Identify the different regression analysis methods] Simple linear regression Local regression Segmented regression Curvilinear regression 8) Identify the situation where you would use simple linear regression. [Identify contract pricing situationswhere simple regression analysis should be considered] Indirect cost rate analysis Labor classification analysis Facilities Capital Cost of Money calculation Profit objective calculation 9) After completing the five-step Least-Best-Squares-Fit (LBSF) process in developing a regressionequation, you must evaluate which two aspects of the equation? [Identify the steps for using simpleregression analysis] [Remediation Accessed :N] "Goodness" of the fit and statistical significance Coefficient of determination and the median Prediction interval and significance level Standard error of the estimate and the mean 10) Which situation below would you use improvement curve analysis to evaluate proposed costs?[Identify situations where improvement curve analysis would be appropriate] Assembly line with high proportion of manual labor Fully automated assembly line Production facility specializing in “one-off” or unique item production Fabrication plant that generates 100,000 units per month DAU 11) What is the first step in conducting improvement curve analysis? [Identify the steps for usingimprovement curve analysis] Collect the historical data Calculate the rate of improvement Calculate the slope of the curve Determine the Theoretical value of unit #1 12) Given the improvement curve data, calculate the cost objective for unit #8. Labor hours for unit #4: 120 hours Labor hours for unit #1: 160 hours Rate of improvement: 10% Improvement curve slope: 90% [Calculate an objective using improvement curve analysis] 108 12 16 144 13) How is the Treasury Rate applied in calculating Facilities Capital Cost of Money (FCCOM)?[Recognize elements affecting facilities capital cost of money] [Remediation Accessed :N]Divided into the FCCOM total amount Treasury rate is not used in calculating FCCOM Multiplied by the FCCOM total amount Divided by the Weighted Guidelines profit objective 14) Which of the following statements is true concerning profit/fee calculations? [Identify the factorsaffecting profit/fee analysis] Profit/fee objectives are a product of risk Profit/fee is calculated differently depending on DPAS rating of the contract Profit/fee objectives are reduced by the cost efficiency factor Profit/Fee is calculated once for the basic contract and must not be recalculated on subsequentmodifications 15) When is the working capital adjustment used while calculating profit/fee? [Calculate a profit/fee usingthe appropriate structured approach] On all fixed price contracts with progress payments On all fixed price contracts On all fixed price contracts with financing On all fixed price contracts with performance based payments 16) What is the “base” that used in the calculation of the performance risk, contract type risk, and costefficiency factor when using the weighted guidelines to determine a profit/fee objective? [– Develop a prenegotiation position for profit or fee that is fair and reasonable.] Total costs DAU Subtotal of costs Total price Direct and Indirect costs 17) Which of the following factors is critical to a successful negotiation? [Identify factors that contribute tosuccess in any negotiation] Effectively prepare, plan, and communicate Avoid being too friendly, in case the negotiations get difficult Set your opening position extremely low to give room to negotiate The negotiation should be competitive 18) What is the negotiation term that reflects each party emphasizing the long term effects and benefits aswell as both parties defining their interests to be achieved in conjunction with the outcome? [Identify keyterms involved during a contract negotiation] Win-Win Win-Lose Lose-Lose Win-Lose-Win 19) What is an important driver to a successful negotiation? [Identify the importance of understanding costdrivers to ensure a successful outcome] Listen to understand Ensure your position is heard Maintain position of power Obtain the lowest price for the government 20) Which of the following is the best strategy to mitigate cost risk? [Identify strategies to mitigate cost risk]Conduct adequate market research prior to entering negotiations Rely on the contractor’s proposed costs, supported by anecdotal data provided by the contractorEvaluate other contract actions awarded to the contractor you’re negotiating withEstablish a firm profit/fee percentage prior to entering negotiations 21) Each Price Negotiation Memorandum must contain which of the following? [Identify the keycharacteristics of a price negotiation memorandum] Statement that the price is fair and reasonable Statement that the FAR was consistently followed Signature of the Contract Specialist Signature of the Legal Counsel 22) Identify the circumstances when cost analysis should be performed by answering the followingquestion. “Unless an exception to certified cost or pricing data applies, you can perform cost analysis onwhich of the following procurements?” [Identify cost analysis terms and techniques used when developing apre-negotiation position] DAU All of these are correct The award of any negotiated contract (except for undefinitized actions such as letter contractsThe award of a subcontract at any tier, if the contractor and each higher-tier subcontractor have beenrequired to furnish certified cost or pricing data The modification of any sealed bid or negotiated contract