CLC 056 ANALYZING CONTRACT COSTS STUDY GUIDE/80
QUESTIONS AND ANSWERS/100% CORRECT
According to FAR 15.4, which of the following is one of the two most preferred price analysis
techniques? Correct ans - Comparison of proposed prices received in response to the
solicitation *
How may you request an audit? Correct ans - All of these are correct
A "questioned cost" is one that has not yet been evaluated. Correct ans - False *
True or False: "Direct labor positions" share the same titles and pay levels. Correct ans - False
*
For which of the following procurements would you require certified cost or pricing data?
Correct ans - An offer of $800,000 for an item from the only known source of an electronic
system unique to Government requirements.
How is simple linear regression used? Correct ans - To make predictions about one
dependent variable based on one independent variable *
Which of the following is a phase in the allocation cycle? Correct ans - Final Allocation Phase
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?
Correct ans - Selecting the appropriate contract type
Developing a price negotiation objective for labor costs *
Evaluating the bill of materials
Assigning the risk factors for profit calculations
The purpose of an audit is to: Correct ans - Verify transaction legality
Determine if the data is accurate and complete
All of these are correct *
Determine the degree of compliance with established procedures
Who has the authority to waive CAS applicability for a particular contract?
Correct ans - The Agency Head *
A cost is allowable if it is: Correct ans - Reasonable, allocable and compliant with CAS/GAAP
*
What is an important driver to a successful negotiation? Correct ans - Listen to understand *
Which regression method assumes a linear relationship between the dependent and
independent variables? Correct ans - Simple linear regression *
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, What is the single most important decision the Contracting Officer must make to mitigate cost
risk? Correct ans - Selection of contract type *
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.
Correct ans - True
Each Price Negotiation Memorandum must contain which one of the following? Correct ans -
Statement that the price is fair and reasonable *
Select the item below that would likely be categorized as a Direct Material Cost. Correct ans -
The purchase of 104 motor assemblies needed to manufacture vehicles *
Using a direct comparison with the cost of a similar contract effort is an acceptable summary
estimating technique. Correct ans - True *
Which of the following would be a proper method of determining the reasonableness of a
contractor's proposed labor hour estimate? Correct ans - -Compare proposed hours with a
Government should-cost 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. Correct ans - True *
Identify the ultimate objective of performing proposal analysis. Correct ans - To ensure the
final agreed to price is fair and reasonable *
Identify the correct definition of "Cost Analysis". Correct ans - The review and evaluation of
individual cost elements and proposed 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) Correct ans - False *
Which of the following is an effective use of stratified sampling? Correct ans - Analyzing the
items that make up 80% of the total material cost and 10% of the remaining items
When is it most appropriate to document or model a contractor's proposal? Correct ans -
When the value, importance, and complexity warrant the modeling *
When is the working capital adjustment used while calculating profit/fee? Correct ans - On all
fixed price contracts with progress payments *
The cost accounting systems that are used by a contractor manufacturing a number of identical
units for multiple customers are: Correct ans - -Generally Accepted Accounting Practice
-Cost Accounting Standards
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". Correct ans - True *
When the Contracting Officer has relied on certified cost or pricing data in the price
determination, which of the following statements is true? Correct ans - They must certify
that they relied on that certified cost or pricing data in the Price Negotiation Memorandum *
This study source was downloaded by 100000868844347 from CourseHero.com on 07-25-2023 05:33:06 GMT -05:00
https://www.coursehero.com/file/208733239/CLC-056-Analyzing-Contract-Costs-Study-Guidedocx/
QUESTIONS AND ANSWERS/100% CORRECT
According to FAR 15.4, which of the following is one of the two most preferred price analysis
techniques? Correct ans - Comparison of proposed prices received in response to the
solicitation *
How may you request an audit? Correct ans - All of these are correct
A "questioned cost" is one that has not yet been evaluated. Correct ans - False *
True or False: "Direct labor positions" share the same titles and pay levels. Correct ans - False
*
For which of the following procurements would you require certified cost or pricing data?
Correct ans - An offer of $800,000 for an item from the only known source of an electronic
system unique to Government requirements.
How is simple linear regression used? Correct ans - To make predictions about one
dependent variable based on one independent variable *
Which of the following is a phase in the allocation cycle? Correct ans - Final Allocation Phase
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?
Correct ans - Selecting the appropriate contract type
Developing a price negotiation objective for labor costs *
Evaluating the bill of materials
Assigning the risk factors for profit calculations
The purpose of an audit is to: Correct ans - Verify transaction legality
Determine if the data is accurate and complete
All of these are correct *
Determine the degree of compliance with established procedures
Who has the authority to waive CAS applicability for a particular contract?
Correct ans - The Agency Head *
A cost is allowable if it is: Correct ans - Reasonable, allocable and compliant with CAS/GAAP
*
What is an important driver to a successful negotiation? Correct ans - Listen to understand *
Which regression method assumes a linear relationship between the dependent and
independent variables? Correct ans - Simple linear regression *
This study source was downloaded by 100000868844347 from CourseHero.com on 07-25-2023 05:33:06 GMT -05:00
https://www.coursehero.com/file/208733239/CLC-056-Analyzing-Contract-Costs-Study-Guidedocx/
, What is the single most important decision the Contracting Officer must make to mitigate cost
risk? Correct ans - Selection of contract type *
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.
Correct ans - True
Each Price Negotiation Memorandum must contain which one of the following? Correct ans -
Statement that the price is fair and reasonable *
Select the item below that would likely be categorized as a Direct Material Cost. Correct ans -
The purchase of 104 motor assemblies needed to manufacture vehicles *
Using a direct comparison with the cost of a similar contract effort is an acceptable summary
estimating technique. Correct ans - True *
Which of the following would be a proper method of determining the reasonableness of a
contractor's proposed labor hour estimate? Correct ans - -Compare proposed hours with a
Government should-cost 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. Correct ans - True *
Identify the ultimate objective of performing proposal analysis. Correct ans - To ensure the
final agreed to price is fair and reasonable *
Identify the correct definition of "Cost Analysis". Correct ans - The review and evaluation of
individual cost elements and proposed 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) Correct ans - False *
Which of the following is an effective use of stratified sampling? Correct ans - Analyzing the
items that make up 80% of the total material cost and 10% of the remaining items
When is it most appropriate to document or model a contractor's proposal? Correct ans -
When the value, importance, and complexity warrant the modeling *
When is the working capital adjustment used while calculating profit/fee? Correct ans - On all
fixed price contracts with progress payments *
The cost accounting systems that are used by a contractor manufacturing a number of identical
units for multiple customers are: Correct ans - -Generally Accepted Accounting Practice
-Cost Accounting Standards
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". Correct ans - True *
When the Contracting Officer has relied on certified cost or pricing data in the price
determination, which of the following statements is true? Correct ans - They must certify
that they relied on that certified cost or pricing data in the Price Negotiation Memorandum *
This study source was downloaded by 100000868844347 from CourseHero.com on 07-25-2023 05:33:06 GMT -05:00
https://www.coursehero.com/file/208733239/CLC-056-Analyzing-Contract-Costs-Study-Guidedocx/
