CLC 056 Analyzing Contract Costs Study
Guide
According to FAR 15.4, which of the following is one of the two most
preferred price analysis techniques? - -Comparison of proposed prices
received in response to the solicitation *
-How may you request an audit? - -All of these are correct
-A "questioned cost" is one that has not yet been evaluated. - -False *
-True or False: "Direct labor positions" share the same titles and pay levels. -
-False *
-For which of the following procurements would you require certified cost or
pricing data? - -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? - -To make predictions about one
dependent variable based on one independent variable *
-Which of the following is a phase in the allocation cycle? - -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? - -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: - -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? -
-The Agency Head *
-A cost is allowable if it is: - -Reasonable, allocable and compliant with
CAS/GAAP *
, -What is an important driver to a successful negotiation? - -Listen to
understand *
-Which regression method assumes a linear relationship between the
dependent and independent variables? - -Simple linear regression *
-What is the single most important decision the Contracting Officer must
make to mitigate cost risk? - -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. - -True
-Each Price Negotiation Memorandum must contain which one of the
following? - -Statement that the price is fair and reasonable *
-Select the item below that would likely be categorized as a Direct Material
Cost. - -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. - -True *
-Which of the following would be a proper method of determining the
reasonableness of a contractor's proposed labor hour estimate? - --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. -
-True *
-Identify the ultimate objective of performing proposal analysis. - -To ensure
the final agreed to price is fair and reasonable *
-Identify the correct definition of "Cost Analysis". - -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) - -False *
-Which of the following is an effective use of stratified sampling? - -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?
- -When the value, importance, and complexity warrant the modeling *
-When is the working capital adjustment used while calculating profit/fee? - -
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: - --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". - -True *
-When the Contracting Officer has relied on certified cost or pricing data in
the price determination, which of the following statements is true? - -They
must certify that they relied on that certified cost or pricing data in the Price
Negotiation Memorandum *
-The first step when conducting stratified sampling is to identify the
population of items to be sampled. - -True *
-What is the most common base for calculating the General and
Administrative (G&A) overhead rate? - -Total of all costs *
-A measure of the amount of dispersion, or distance, between data points is
the: - -Standard Deviation *
-Which of the following is the preferred method for determining if a
proposed cost is reasonable? - -Comparing with other competitive proposals
received in response to the solicitation *
-Which situation below would you use improvement curve analysis to
evaluate proposed costs? - -Assembly line with high proportion of manual
labor *
-Which of the following situations are considered exempt from the
submission of Certified Cost or Pricing Data? - -Prices are set by law or
regulation. *
-When calculating the confidence interval, the sample standard deviation is
used to derive the standard error of the mean. - -True
-Identify the response below that correctly describes the term "Data other
than certified cost or pricing data". - -Pricing data, cost data, and judgmental
Guide
According to FAR 15.4, which of the following is one of the two most
preferred price analysis techniques? - -Comparison of proposed prices
received in response to the solicitation *
-How may you request an audit? - -All of these are correct
-A "questioned cost" is one that has not yet been evaluated. - -False *
-True or False: "Direct labor positions" share the same titles and pay levels. -
-False *
-For which of the following procurements would you require certified cost or
pricing data? - -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? - -To make predictions about one
dependent variable based on one independent variable *
-Which of the following is a phase in the allocation cycle? - -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? - -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: - -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? -
-The Agency Head *
-A cost is allowable if it is: - -Reasonable, allocable and compliant with
CAS/GAAP *
, -What is an important driver to a successful negotiation? - -Listen to
understand *
-Which regression method assumes a linear relationship between the
dependent and independent variables? - -Simple linear regression *
-What is the single most important decision the Contracting Officer must
make to mitigate cost risk? - -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. - -True
-Each Price Negotiation Memorandum must contain which one of the
following? - -Statement that the price is fair and reasonable *
-Select the item below that would likely be categorized as a Direct Material
Cost. - -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. - -True *
-Which of the following would be a proper method of determining the
reasonableness of a contractor's proposed labor hour estimate? - --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. -
-True *
-Identify the ultimate objective of performing proposal analysis. - -To ensure
the final agreed to price is fair and reasonable *
-Identify the correct definition of "Cost Analysis". - -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) - -False *
-Which of the following is an effective use of stratified sampling? - -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?
- -When the value, importance, and complexity warrant the modeling *
-When is the working capital adjustment used while calculating profit/fee? - -
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: - --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". - -True *
-When the Contracting Officer has relied on certified cost or pricing data in
the price determination, which of the following statements is true? - -They
must certify that they relied on that certified cost or pricing data in the Price
Negotiation Memorandum *
-The first step when conducting stratified sampling is to identify the
population of items to be sampled. - -True *
-What is the most common base for calculating the General and
Administrative (G&A) overhead rate? - -Total of all costs *
-A measure of the amount of dispersion, or distance, between data points is
the: - -Standard Deviation *
-Which of the following is the preferred method for determining if a
proposed cost is reasonable? - -Comparing with other competitive proposals
received in response to the solicitation *
-Which situation below would you use improvement curve analysis to
evaluate proposed costs? - -Assembly line with high proportion of manual
labor *
-Which of the following situations are considered exempt from the
submission of Certified Cost or Pricing Data? - -Prices are set by law or
regulation. *
-When calculating the confidence interval, the sample standard deviation is
used to derive the standard error of the mean. - -True
-Identify the response below that correctly describes the term "Data other
than certified cost or pricing data". - -Pricing data, cost data, and judgmental
