©THEBRIGHT EXAM STUDY SOLUTIONS 8/21/2024 8:36 PM
NCMA CPCM Quiz - Contract Management
Body of Knowledge (CMBOK) Exam
Questions With Correct Answers
Recommended basic types of feedback - answer✔✔Corrective, confirmatory, motivating
A decisive leader is - answer✔✔Confident and effective
Which of the following is a leadership process competency? (-a. Character, -b. Credibility, -c.
Confidence, -d. Cooperation) - answer✔✔Character
Which of the following is not a step in the 6-step Decision-Making process to decisive decision
making? (-a. Provide feedback, -b. Implement the decision, -c. Collect internal and external
opinions , -d. Pre-plan strategies to make the decision) - answer✔✔Collect internal and external
opinions
What can reduce or even eliminate the creative process? - answer✔✔Forced consensus
In which decision-making step should one create objectives and goals? - answer✔✔Pre-plan
strategies
An integrative thinker is: - answer✔✔able to create innovative solutions to problems
Step 4 of the 6-step Decision-Making Process advises leaders to create a written plan that: -
answer✔✔Details the problem, determines the root cause, and lists criteria to help choose a
solution
What reflects a leadership activity for a contract manager? (-a. Resolving a dispute with a
supplier., -b. Quoting the Federal Acquisition Regulation., -c. Promptly responding to seller
inquiries., -d. Developing questions in response to a solicitation.) - answer✔✔Resolving a
dispute with a supplier.
Which of the following describes a leader who is developing new leaders? -a. Develops the
bottom 20% of the workforce, -b. Treats everyone the same, -c. Grows the organization by
addition, -d. Focuses on individual strengths) - answer✔✔Focuses on individual strengths
What best reflects the relationship between the leader and vision? - answer✔✔Leader + vision =
result
,©THEBRIGHT EXAM STUDY SOLUTIONS 8/21/2024 8:36 PM
Employee __________ is a major component of organizational success. - answer✔✔Motivation
_________ and _________ competencies support the technical application of contract
management.. - answer✔✔Leadership and Management
Assuring your organization adheres to high ethical standards is an example of what? -
answer✔✔A leader's focus on character
Which of the following can impede leaders from developing a vision? (Failing to consult others,
Focusing on the day-to-day, Being inflexible, Living in the past) - answer✔✔Living in the past
When a leader in your organization insists that you accomplish something that you believe is
unethical, it likely reflects what? - answer✔✔Abuse of power
Why would contract managers need vision? - answer✔✔To drive behaviors that achieve the
mission
Optimism is an important leadership tool, but it can be undermined by: - answer✔✔Inflexibility
You've read FAR 33.103 (Agency Protests) over and over and are still unable to determine if you
can go ahead and award the contract. This could be an example of _______________, and your
next step could be _______________. - answer✔✔Insufficient information; consult with
stakeholders
Character is composed of which three elements? - answer✔✔Integrity, optimism, decisiveness
When pre-planning strategies for making a decision, the leader should: - answer✔✔Dispel
assumptions that can negatively affect his/her leadership role
Which of the following is a principle required for an organizational culture of high ethical
standards? (-a. Documenting all decisions, -b. Providing rationale for all decisions, -c. Including
others in decisions, -d. Leading by example) - answer✔✔Leading by example
When your supervisor fails to delegate tasks to you, preferring to do it themselves, what is this
called? - answer✔✔Resisting force to achieving competence
Successful contract management depends on the leader's ability to integrate: - answer✔✔The
leadership process competencies
If you are an experienced contract management leader and you need to make a fast, high risk
decision in an uncertain situation, what is the best approach? - answer✔✔Intuition
Risk management is: - answer✔✔The ability to efficiently and cost-effectively mitigate
problems
,©THEBRIGHT EXAM STUDY SOLUTIONS 8/21/2024 8:36 PM
When tracking costs following the award of a contract, what is latency? - answer✔✔The delay
between when a cost is incurred and when it appears in the accounting system.
This costing method uses a two-step process: 1 - assign the resource costs of each activity, and 2
- assign activity costs to the output: - answer✔✔Activity-Based Costing System.
The process for creating the Resource-Loaded Schedule begins with: - answer✔✔...extracting a
Work Breakdown Structure from the Statement of Work.
When suppliers are being certified or pre-qualified they have been: - answer✔✔Screened
Regardless of an organization's contracting activity size and purpose, the following four key
functions of management are essential: - answer✔✔Planning, Organizing, Directing, Controlling
Analysis to measure the company's ability to meet current and long-term obligations would use
the following ratio: - answer✔✔Solvency Ratio.
Providing information to satisfy Federal contract reporting requires the comparison of current
accounting data and a time-phased program budget. One standard approach is the use of: -
answer✔✔An "S" Curve that represents how activities ramp up and tail off during a project.
Supply Chain Management: - answer✔✔Involves managing the activities to produce and deliver
a product or service from suppliers to the end user customer
A contracting officer is preparing to award a contract for Advisory & Assistance Services to a
small business. The contracting officer wants to make sure the small business is financially
capable of performing and managing the contract. The Contracting Officer requests the
contractors Balance Sheet from the most recently completed fiscal year.
What is an example of another item the Contracting Officer might consider requesting to make a
more informed decision? - answer✔✔Cash flow statement
Burn Rate funding analysis "spreads" the contract value over time in a level-loading scheme.
This technique: - answer✔✔fails to consider project phases, or the potential for programs to
"ramp-up" activity at the beginning, and "tail off" at the end of a project.
Which of the following could mitigate a performance risk?
a. Use appropriate cost estimating methods
b. Provide timely and appropriate performance feedback
c. Implement an effective earned value management system
, ©THEBRIGHT EXAM STUDY SOLUTIONS 8/21/2024 8:36 PM
d. Create an effective ethics and compliance internal control system - answer✔✔Create an
effective ethics and compliance internal control system
Which of the following best describes the project manager's role in financial management?
a. Verifying the work completed that needs to be invoiced for.
b. Preparing invoices and sending them to the buyer.
c. Analyzing corporate balance sheets and income statements.
d. Negotiating payment terms with the buyer. - answer✔✔Verifying the work completed that
needs to be invoiced for.
A firm fixed-price contract results in __________ buyer risk and __________seller risk. -
answer✔✔Low; high
A schedule that outlines what tasks will take place, when they are scheduled to begin and end,
and what resources are needed to accomplish them is typically created during the Project
Planning Phase and is called a ___________. - answer✔✔Resource-Loaded Schedule.
A Basis of Estimate is prepared for each work package (the lowest level of the Work Breakdown
Structure). It is: - answer✔✔...a description of how the work will be done, by whom, and the
effort or materials required.
Which of the following best describes project management?
a. The planning, organizing, directing and controlling of all aspects of a project.
b. Coordination between executive staff, financial staff and contracts staff to manage a project
effectively.
c. The maintenance of all project documents and timelines with the exception of contractual
document which are managed by the contracts manager.
d. Responsibility for all business functions of an organization including establishing procedures
and directing project completion. - answer✔✔The planning, organizing, directing and
controlling of all aspects of a project.
A purchase order has the following two step process that sometimes causes accounting data entry
delays: - answer✔✔1 - A commitment is made when the order is approved and funds are
deducted, similar to an accrued expense.
2 - The value of the commitment is reduced as the supplier invoices for goods/services.
The following is NOT true regarding a "Funds Thru" date:
NCMA CPCM Quiz - Contract Management
Body of Knowledge (CMBOK) Exam
Questions With Correct Answers
Recommended basic types of feedback - answer✔✔Corrective, confirmatory, motivating
A decisive leader is - answer✔✔Confident and effective
Which of the following is a leadership process competency? (-a. Character, -b. Credibility, -c.
Confidence, -d. Cooperation) - answer✔✔Character
Which of the following is not a step in the 6-step Decision-Making process to decisive decision
making? (-a. Provide feedback, -b. Implement the decision, -c. Collect internal and external
opinions , -d. Pre-plan strategies to make the decision) - answer✔✔Collect internal and external
opinions
What can reduce or even eliminate the creative process? - answer✔✔Forced consensus
In which decision-making step should one create objectives and goals? - answer✔✔Pre-plan
strategies
An integrative thinker is: - answer✔✔able to create innovative solutions to problems
Step 4 of the 6-step Decision-Making Process advises leaders to create a written plan that: -
answer✔✔Details the problem, determines the root cause, and lists criteria to help choose a
solution
What reflects a leadership activity for a contract manager? (-a. Resolving a dispute with a
supplier., -b. Quoting the Federal Acquisition Regulation., -c. Promptly responding to seller
inquiries., -d. Developing questions in response to a solicitation.) - answer✔✔Resolving a
dispute with a supplier.
Which of the following describes a leader who is developing new leaders? -a. Develops the
bottom 20% of the workforce, -b. Treats everyone the same, -c. Grows the organization by
addition, -d. Focuses on individual strengths) - answer✔✔Focuses on individual strengths
What best reflects the relationship between the leader and vision? - answer✔✔Leader + vision =
result
,©THEBRIGHT EXAM STUDY SOLUTIONS 8/21/2024 8:36 PM
Employee __________ is a major component of organizational success. - answer✔✔Motivation
_________ and _________ competencies support the technical application of contract
management.. - answer✔✔Leadership and Management
Assuring your organization adheres to high ethical standards is an example of what? -
answer✔✔A leader's focus on character
Which of the following can impede leaders from developing a vision? (Failing to consult others,
Focusing on the day-to-day, Being inflexible, Living in the past) - answer✔✔Living in the past
When a leader in your organization insists that you accomplish something that you believe is
unethical, it likely reflects what? - answer✔✔Abuse of power
Why would contract managers need vision? - answer✔✔To drive behaviors that achieve the
mission
Optimism is an important leadership tool, but it can be undermined by: - answer✔✔Inflexibility
You've read FAR 33.103 (Agency Protests) over and over and are still unable to determine if you
can go ahead and award the contract. This could be an example of _______________, and your
next step could be _______________. - answer✔✔Insufficient information; consult with
stakeholders
Character is composed of which three elements? - answer✔✔Integrity, optimism, decisiveness
When pre-planning strategies for making a decision, the leader should: - answer✔✔Dispel
assumptions that can negatively affect his/her leadership role
Which of the following is a principle required for an organizational culture of high ethical
standards? (-a. Documenting all decisions, -b. Providing rationale for all decisions, -c. Including
others in decisions, -d. Leading by example) - answer✔✔Leading by example
When your supervisor fails to delegate tasks to you, preferring to do it themselves, what is this
called? - answer✔✔Resisting force to achieving competence
Successful contract management depends on the leader's ability to integrate: - answer✔✔The
leadership process competencies
If you are an experienced contract management leader and you need to make a fast, high risk
decision in an uncertain situation, what is the best approach? - answer✔✔Intuition
Risk management is: - answer✔✔The ability to efficiently and cost-effectively mitigate
problems
,©THEBRIGHT EXAM STUDY SOLUTIONS 8/21/2024 8:36 PM
When tracking costs following the award of a contract, what is latency? - answer✔✔The delay
between when a cost is incurred and when it appears in the accounting system.
This costing method uses a two-step process: 1 - assign the resource costs of each activity, and 2
- assign activity costs to the output: - answer✔✔Activity-Based Costing System.
The process for creating the Resource-Loaded Schedule begins with: - answer✔✔...extracting a
Work Breakdown Structure from the Statement of Work.
When suppliers are being certified or pre-qualified they have been: - answer✔✔Screened
Regardless of an organization's contracting activity size and purpose, the following four key
functions of management are essential: - answer✔✔Planning, Organizing, Directing, Controlling
Analysis to measure the company's ability to meet current and long-term obligations would use
the following ratio: - answer✔✔Solvency Ratio.
Providing information to satisfy Federal contract reporting requires the comparison of current
accounting data and a time-phased program budget. One standard approach is the use of: -
answer✔✔An "S" Curve that represents how activities ramp up and tail off during a project.
Supply Chain Management: - answer✔✔Involves managing the activities to produce and deliver
a product or service from suppliers to the end user customer
A contracting officer is preparing to award a contract for Advisory & Assistance Services to a
small business. The contracting officer wants to make sure the small business is financially
capable of performing and managing the contract. The Contracting Officer requests the
contractors Balance Sheet from the most recently completed fiscal year.
What is an example of another item the Contracting Officer might consider requesting to make a
more informed decision? - answer✔✔Cash flow statement
Burn Rate funding analysis "spreads" the contract value over time in a level-loading scheme.
This technique: - answer✔✔fails to consider project phases, or the potential for programs to
"ramp-up" activity at the beginning, and "tail off" at the end of a project.
Which of the following could mitigate a performance risk?
a. Use appropriate cost estimating methods
b. Provide timely and appropriate performance feedback
c. Implement an effective earned value management system
, ©THEBRIGHT EXAM STUDY SOLUTIONS 8/21/2024 8:36 PM
d. Create an effective ethics and compliance internal control system - answer✔✔Create an
effective ethics and compliance internal control system
Which of the following best describes the project manager's role in financial management?
a. Verifying the work completed that needs to be invoiced for.
b. Preparing invoices and sending them to the buyer.
c. Analyzing corporate balance sheets and income statements.
d. Negotiating payment terms with the buyer. - answer✔✔Verifying the work completed that
needs to be invoiced for.
A firm fixed-price contract results in __________ buyer risk and __________seller risk. -
answer✔✔Low; high
A schedule that outlines what tasks will take place, when they are scheduled to begin and end,
and what resources are needed to accomplish them is typically created during the Project
Planning Phase and is called a ___________. - answer✔✔Resource-Loaded Schedule.
A Basis of Estimate is prepared for each work package (the lowest level of the Work Breakdown
Structure). It is: - answer✔✔...a description of how the work will be done, by whom, and the
effort or materials required.
Which of the following best describes project management?
a. The planning, organizing, directing and controlling of all aspects of a project.
b. Coordination between executive staff, financial staff and contracts staff to manage a project
effectively.
c. The maintenance of all project documents and timelines with the exception of contractual
document which are managed by the contracts manager.
d. Responsibility for all business functions of an organization including establishing procedures
and directing project completion. - answer✔✔The planning, organizing, directing and
controlling of all aspects of a project.
A purchase order has the following two step process that sometimes causes accounting data entry
delays: - answer✔✔1 - A commitment is made when the order is approved and funds are
deducted, similar to an accrued expense.
2 - The value of the commitment is reduced as the supplier invoices for goods/services.
The following is NOT true regarding a "Funds Thru" date:
