CLC 056 ANALYZING CONTRACT COSTS
FINAL TEST 2026 QUESTIONS WITH
CORRECT ANSWERS GRADED A+
◍ A Disclosure Statement is required when Contractor receives a CAS
covered contract or a subcontract valued at $60 million in a cost accounting
period..
Answer: True *
◍ Which of the following items are examples of Other Direct Costs? Select all
of the correct answers.(Select all that apply).
Answer: Patent/data rightsTravelConsultant feeSpecial Test equipment
◍ Forward Pricing Rate Recommendations.
Answer: Rate recommendations developed by the cognizant ACO for all
Government buying activities
◍ Which of the following estimating methods produces estimates based on an
analysis of the methods and materials required to complete each element of
the work required by the contract? Round
TableComparisonDetailedStandard.
Answer: Detailed
◍ Market research has become less important in DoD contracting due to the
advantages of the Internet..
Answer: False
◍ What is the "base" that used in the calculation of the performance risk,
contract type risk, and cost efficiency factor when using the weighted
guidelines to determine a profit/fee objective?.
Answer: - Total Costs
,◍ Which of the following are key terms associated with TINA?(Select all that
apply).
Answer: Certified Cost or Pricing DataCost or Pricing DataData Other than
Certified Cost or Pricing Data
◍ Cost realism analysis.
Answer: The process of independently reviewing and evaluating specific
elements of each offeror's proposed cost estimate to determine whether the
estimated proposed cost elements: (i) are realistic for the work to be
performed; (ii) reflect a clear understanding of the requirements; and(iii) are
consistent with the various elements of the offeror's technical proposal. The
"probable cost" should reflect the Government's best estimate of the cost of
a contract that is likely to result from the offeror's proposal.Use when:
Determining the probable cost of performance for each offeror on a cost
reimbursement type contract. Cost realism analysis may be used on
competitive fixed-price incentive contracts or, in exceptional cases, on other
competitive fixed-price contracts when:(i) new requirements may not be
fully understood by competing offerors, (ii) there are quality concerns,
or(iii) past experience indicates that contractors proposed costs have resulted
in quality or service shortfalls.
◍ In reviewing a proposal for production of an unmanned aerial vehicle
contract, which travel cost would justify travel as an other direct cost?.
Answer: The travel costs are for the project manager and the manufacturing
supervisor to deliver the prototype to the government testing site for final
demonstration testing
◍ A cure notice.
Answer: advises the contractor that the contract will be terminated within 30
days if the failure in contract performance is not corrected within 7 working
days (WRONG)provides the contractor a period of 30 days to correct a
failure in contract performance (WRONG)
◍ Indirect cost.
Answer: Any cost not directly identified with a single final cost objective,
, but identified with two or more final cost objectives (i.e. contracts) or with
at least one intermediate cost objective.
◍ What is Certified Cost or Pricing Data subsequently found to have been
inaccurate, incomplete, or noncurrent known as?.
Answer: Defective Pricing *
◍ What is the most common base for calculating the General and
Administrative (G&A) overhead rate?.
Answer: - Total of all costs
◍ Which of the following must be true to properly classify a cost as an "other
direct cost"?.
Answer: - The offeror customarily treats similar costs as "other direct costs"
Under similar circumstances- The proposed cost benefits only the proposed
contract work- The contractor's accounting system segregates "other direct
costs" from similar indirect costs
◍ The purpose of an audit is to:.
Answer: - Determine if the data is accurate and complete- Verify transaction
legality- Determine the degree of compliance with established procedures
◍ What are among the exceptions to the requirement for obtaining certified
cost or pricing data above the TINA threshold?.
Answer: 1. When the contracting officer determines that prices agreed upon
are based on adequate price competition;2. When the contracting officer
determines that prices agreed upon are based on prices set by law or
regulation;3. When a commercial item is being acquired;4. When a waiver
has been granted by the Head of the Contracting Activity; or5. When
modifying a contract or subcontract for commercial items.
◍ Given the following improvement curve data, calculate the cost objective for
unit #64. Labor hours for unit #32: 42,000 hours Labor hours for unit #1:
79,000 hours Rate of improvement: 20% Improvement curve slope: 80%.
Answer: - 33,600
◍ When compared to fixed-price contract types, cost-reimbursement contracts
FINAL TEST 2026 QUESTIONS WITH
CORRECT ANSWERS GRADED A+
◍ A Disclosure Statement is required when Contractor receives a CAS
covered contract or a subcontract valued at $60 million in a cost accounting
period..
Answer: True *
◍ Which of the following items are examples of Other Direct Costs? Select all
of the correct answers.(Select all that apply).
Answer: Patent/data rightsTravelConsultant feeSpecial Test equipment
◍ Forward Pricing Rate Recommendations.
Answer: Rate recommendations developed by the cognizant ACO for all
Government buying activities
◍ Which of the following estimating methods produces estimates based on an
analysis of the methods and materials required to complete each element of
the work required by the contract? Round
TableComparisonDetailedStandard.
Answer: Detailed
◍ Market research has become less important in DoD contracting due to the
advantages of the Internet..
Answer: False
◍ What is the "base" that used in the calculation of the performance risk,
contract type risk, and cost efficiency factor when using the weighted
guidelines to determine a profit/fee objective?.
Answer: - Total Costs
,◍ Which of the following are key terms associated with TINA?(Select all that
apply).
Answer: Certified Cost or Pricing DataCost or Pricing DataData Other than
Certified Cost or Pricing Data
◍ Cost realism analysis.
Answer: The process of independently reviewing and evaluating specific
elements of each offeror's proposed cost estimate to determine whether the
estimated proposed cost elements: (i) are realistic for the work to be
performed; (ii) reflect a clear understanding of the requirements; and(iii) are
consistent with the various elements of the offeror's technical proposal. The
"probable cost" should reflect the Government's best estimate of the cost of
a contract that is likely to result from the offeror's proposal.Use when:
Determining the probable cost of performance for each offeror on a cost
reimbursement type contract. Cost realism analysis may be used on
competitive fixed-price incentive contracts or, in exceptional cases, on other
competitive fixed-price contracts when:(i) new requirements may not be
fully understood by competing offerors, (ii) there are quality concerns,
or(iii) past experience indicates that contractors proposed costs have resulted
in quality or service shortfalls.
◍ In reviewing a proposal for production of an unmanned aerial vehicle
contract, which travel cost would justify travel as an other direct cost?.
Answer: The travel costs are for the project manager and the manufacturing
supervisor to deliver the prototype to the government testing site for final
demonstration testing
◍ A cure notice.
Answer: advises the contractor that the contract will be terminated within 30
days if the failure in contract performance is not corrected within 7 working
days (WRONG)provides the contractor a period of 30 days to correct a
failure in contract performance (WRONG)
◍ Indirect cost.
Answer: Any cost not directly identified with a single final cost objective,
, but identified with two or more final cost objectives (i.e. contracts) or with
at least one intermediate cost objective.
◍ What is Certified Cost or Pricing Data subsequently found to have been
inaccurate, incomplete, or noncurrent known as?.
Answer: Defective Pricing *
◍ What is the most common base for calculating the General and
Administrative (G&A) overhead rate?.
Answer: - Total of all costs
◍ Which of the following must be true to properly classify a cost as an "other
direct cost"?.
Answer: - The offeror customarily treats similar costs as "other direct costs"
Under similar circumstances- The proposed cost benefits only the proposed
contract work- The contractor's accounting system segregates "other direct
costs" from similar indirect costs
◍ The purpose of an audit is to:.
Answer: - Determine if the data is accurate and complete- Verify transaction
legality- Determine the degree of compliance with established procedures
◍ What are among the exceptions to the requirement for obtaining certified
cost or pricing data above the TINA threshold?.
Answer: 1. When the contracting officer determines that prices agreed upon
are based on adequate price competition;2. When the contracting officer
determines that prices agreed upon are based on prices set by law or
regulation;3. When a commercial item is being acquired;4. When a waiver
has been granted by the Head of the Contracting Activity; or5. When
modifying a contract or subcontract for commercial items.
◍ Given the following improvement curve data, calculate the cost objective for
unit #64. Labor hours for unit #32: 42,000 hours Labor hours for unit #1:
79,000 hours Rate of improvement: 20% Improvement curve slope: 80%.
Answer: - 33,600
◍ When compared to fixed-price contract types, cost-reimbursement contracts
