CFCM EXAM QUESTIONS AND VERIFIED
ANSWER; 100% CORRECT; 2026- 2025 UPDATE
_______________ contracts are characterized by the employer-
employee relationship it creates between the Government and the
contractor's personnel. - correct answer- Personal services
A cash fund of fixed amount established by an advance of funds, for
disbursement in cash for relatively small amounts is called what? -
correct answer- Imprest fund
A contract for demolition of a public building, without any further
construction work, is subject to which of the following? - correct
answer- Only the Service Contract Labor Standards statute
A contract that is awarded using other than sealed bidding procedures is
what? - correct answer- A negotiated contract
A contractor has made an invention under a Federal research and
development contract. In which of the following cases may the
contractor be required to assign title to the invention to the
Government? - correct answer- The contractor does not have a
place of business in the United States
A contractor infringes on a copyright with the authorization of the
Government. What remedy is available to the copyright holder? -
,correct answer- A suit for monetary damages against the Government
in the Court of Federal Claims
A contractor receives a refund relating to an allowable cost. What shall
the contractor do with the applicable portion of the refund? - correct
answer- The contractor may credit it to the Government either as a
cost reduction or a cash refund
A contractor transfers its right to be paid by the Government for
contract performance to a trust company. What is this called? - correct
answer- Assignment of a claim
A contractor under a construction contract provides the Government
with a quantity of unit-priced items other than the quantity called for.
Can the Government or the contractor demand an adjustment in the
contract price? - correct answer- Yes, if the variation exceeds plus or
minus 15 percent of the expected quantity
A contractor's arrangement to pay contingent fees for soliciting or
obtaining Government contracts is considered contrary to public policy.
Which of the following statements explains why? - correct answer-
Such arrangements may lead to attempted or actual exercise of
improper influence
A defense subcontractor provides a gift of vehicles to a prime contractor,
and in return the prime contractor awards the subcontractor a valuable
military subcontract. Which of the following is true? - correct answer-
, The prime contractor and the subcontractor are subject to civil and
criminal penalties
A failure in estimating, accumulating, or reporting costs to comply with
applicable cost accounting standards is called what - correct answer-
Noncompliance
A legal instrument in which a contractor guarantees performance of the
contract, the obligations under the contract are assumed by a successor
in interest, and the government recognizes the transfer of the contract
and related assets is called what? - correct answer- Novation
agreement
A mineral required for production in performance of a contract is not
mined in the United States, but can be acquired from another country.
How does the Buy American statute apply in this case? - correct
answer- The mineral may be acquired from a foreign source if it is in
the best interest of the Government
A payment bond ... - correct answer- assures payments as required
by law to all persons supplying labor or material in the prosecution of
the work provided for in the contract.
A special form of written approval by an authorized official that is
required by statute or regulation as a prerequisite to taking certain
contract actions is called - correct answer- Determination and
Findings
ANSWER; 100% CORRECT; 2026- 2025 UPDATE
_______________ contracts are characterized by the employer-
employee relationship it creates between the Government and the
contractor's personnel. - correct answer- Personal services
A cash fund of fixed amount established by an advance of funds, for
disbursement in cash for relatively small amounts is called what? -
correct answer- Imprest fund
A contract for demolition of a public building, without any further
construction work, is subject to which of the following? - correct
answer- Only the Service Contract Labor Standards statute
A contract that is awarded using other than sealed bidding procedures is
what? - correct answer- A negotiated contract
A contractor has made an invention under a Federal research and
development contract. In which of the following cases may the
contractor be required to assign title to the invention to the
Government? - correct answer- The contractor does not have a
place of business in the United States
A contractor infringes on a copyright with the authorization of the
Government. What remedy is available to the copyright holder? -
,correct answer- A suit for monetary damages against the Government
in the Court of Federal Claims
A contractor receives a refund relating to an allowable cost. What shall
the contractor do with the applicable portion of the refund? - correct
answer- The contractor may credit it to the Government either as a
cost reduction or a cash refund
A contractor transfers its right to be paid by the Government for
contract performance to a trust company. What is this called? - correct
answer- Assignment of a claim
A contractor under a construction contract provides the Government
with a quantity of unit-priced items other than the quantity called for.
Can the Government or the contractor demand an adjustment in the
contract price? - correct answer- Yes, if the variation exceeds plus or
minus 15 percent of the expected quantity
A contractor's arrangement to pay contingent fees for soliciting or
obtaining Government contracts is considered contrary to public policy.
Which of the following statements explains why? - correct answer-
Such arrangements may lead to attempted or actual exercise of
improper influence
A defense subcontractor provides a gift of vehicles to a prime contractor,
and in return the prime contractor awards the subcontractor a valuable
military subcontract. Which of the following is true? - correct answer-
, The prime contractor and the subcontractor are subject to civil and
criminal penalties
A failure in estimating, accumulating, or reporting costs to comply with
applicable cost accounting standards is called what - correct answer-
Noncompliance
A legal instrument in which a contractor guarantees performance of the
contract, the obligations under the contract are assumed by a successor
in interest, and the government recognizes the transfer of the contract
and related assets is called what? - correct answer- Novation
agreement
A mineral required for production in performance of a contract is not
mined in the United States, but can be acquired from another country.
How does the Buy American statute apply in this case? - correct
answer- The mineral may be acquired from a foreign source if it is in
the best interest of the Government
A payment bond ... - correct answer- assures payments as required
by law to all persons supplying labor or material in the prosecution of
the work provided for in the contract.
A special form of written approval by an authorized official that is
required by statute or regulation as a prerequisite to taking certain
contract actions is called - correct answer- Determination and
Findings
