CLC 056 Analyzing Contract Costs Study
Guide
1. Comparison of proposed prices received in response to the solicitation
*: According to FAR 15.4, which of the following is one of the two most
preferred price analysis techniques?
2. All of these are correct: How may you request an audit?
3. False *: A "questioned cost" is one that has not yet been evaluated.
4.False *: True or False: "Direct labor positions" share the same titles and
pay levels.
5. An offer of $800,000 for an item from the only known source of an
electronic system unique to Government requirements.: For which of the
following procure- ments would you require certified cost or pricing
data?
6. To make predictions about one dependent variable based on one
indepen- dent variable *: How is simple linear regression used?
7. Final Allocation Phase: Which of the following is a phase in the
allocation cycle?
8. 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: 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?
9. Verify transaction legality
Determine if the data is accurate and complete
All of these are correct *
Determine the degree of compliance with established procedures: The pur-
pose of an audit is to:
10.The Agency Head *: Who has the authority to waive CAS
applicability for a particular contract?
11.Reasonable, allocable and compliant with CAS/GAAP *: A cost is
allowable if it is:
12.Listen to understand *: What is an important driver to a successfu
negotiation?
13.Simple linear regression *: Which regression method assumes a
linear rela- tionship between the dependent and independent
variables?
, CLC 056 Analyzing Contract Costs Study
Guide
14.Selection of contract type *: What is the single most important
decision the Contracting Officer must make to mitigate cost risk?
15.True: 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.
16.Statement that the price is fair and reasonable *: Each Price
Negotiation Memorandum must contain which one of the following?
, CLC 056 Analyzing Contract Costs Study
Guide
17. The purchase of 104 motor assemblies needed to manufacture vehicles
*: Select the item below that would likely be categorized as a Direct
Material Cost.
18.True *: Using a direct comparison with the cost of a similar contract
effort is an acceptable summary estimating technique.
19.-Compare proposed hours with a Government should-cost estimate *: -
Which of the following would be a proper method of determining the
reasonableness of a contractor's proposed labor hour estimate?
20.True *: A Disclosure Statement is required when Contractor receives
a CAS covered contract or a subcontract valued at $60 million in a cost
accounting period.
21.To ensure the final agreed to price is fair and reasonable *: Identify
the ultimate objective of performing proposal analysis.
22.The review and evaluation of individual cost elements and proposed
prof- it/fee in and offeror's proposal *: Identify the correct definition of
"Cost Analysis".
23.False *: True or False: The national average mortgage rate is used in
calculating Facilities Capital Cost of Money (FCCOM)
24.Analyzing the items that make up 80% of the total material cost and
10% of the remaining items: Which of the following is an effective use of
stratified sampling?
25.When the value, importance, and complexity warrant the modeling *:
When is it most appropriate to document or model a contractor's
proposal?
26.On all fixed price contracts with progress payments *: When is the
working capital adjustment used while calculating profit/fee?
27. -Generally Accepted Accounting Practice
-Cost Accounting Standards: The cost accounting systems that are
used by a contractor manufacturing a number of identical units for
multiple customers are:
28.True *: 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".
29.They must certify that they relied on that certified cost or pricing data
in the Price Negotiation Memorandum *: When the Contracting Officer
has relied on certified cost or pricing data in the price determination,
which of the following statements is true?
30.True *: The first step when conducting stratified sampling is to
, CLC 056 Analyzing Contract Costs Study
Guide
identify the population of items to be sampled.
31.Total of all costs *: What is the most common base for calculating the
General and Administrative (G&A) overhead rate?
32.Standard Deviation *: A measure of the amount of dispersion, or
distance, between data points is the:
Guide
1. Comparison of proposed prices received in response to the solicitation
*: According to FAR 15.4, which of the following is one of the two most
preferred price analysis techniques?
2. All of these are correct: How may you request an audit?
3. False *: A "questioned cost" is one that has not yet been evaluated.
4.False *: True or False: "Direct labor positions" share the same titles and
pay levels.
5. An offer of $800,000 for an item from the only known source of an
electronic system unique to Government requirements.: For which of the
following procure- ments would you require certified cost or pricing
data?
6. To make predictions about one dependent variable based on one
indepen- dent variable *: How is simple linear regression used?
7. Final Allocation Phase: Which of the following is a phase in the
allocation cycle?
8. 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: 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?
9. Verify transaction legality
Determine if the data is accurate and complete
All of these are correct *
Determine the degree of compliance with established procedures: The pur-
pose of an audit is to:
10.The Agency Head *: Who has the authority to waive CAS
applicability for a particular contract?
11.Reasonable, allocable and compliant with CAS/GAAP *: A cost is
allowable if it is:
12.Listen to understand *: What is an important driver to a successfu
negotiation?
13.Simple linear regression *: Which regression method assumes a
linear rela- tionship between the dependent and independent
variables?
, CLC 056 Analyzing Contract Costs Study
Guide
14.Selection of contract type *: What is the single most important
decision the Contracting Officer must make to mitigate cost risk?
15.True: 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.
16.Statement that the price is fair and reasonable *: Each Price
Negotiation Memorandum must contain which one of the following?
, CLC 056 Analyzing Contract Costs Study
Guide
17. The purchase of 104 motor assemblies needed to manufacture vehicles
*: Select the item below that would likely be categorized as a Direct
Material Cost.
18.True *: Using a direct comparison with the cost of a similar contract
effort is an acceptable summary estimating technique.
19.-Compare proposed hours with a Government should-cost estimate *: -
Which of the following would be a proper method of determining the
reasonableness of a contractor's proposed labor hour estimate?
20.True *: A Disclosure Statement is required when Contractor receives
a CAS covered contract or a subcontract valued at $60 million in a cost
accounting period.
21.To ensure the final agreed to price is fair and reasonable *: Identify
the ultimate objective of performing proposal analysis.
22.The review and evaluation of individual cost elements and proposed
prof- it/fee in and offeror's proposal *: Identify the correct definition of
"Cost Analysis".
23.False *: True or False: The national average mortgage rate is used in
calculating Facilities Capital Cost of Money (FCCOM)
24.Analyzing the items that make up 80% of the total material cost and
10% of the remaining items: Which of the following is an effective use of
stratified sampling?
25.When the value, importance, and complexity warrant the modeling *:
When is it most appropriate to document or model a contractor's
proposal?
26.On all fixed price contracts with progress payments *: When is the
working capital adjustment used while calculating profit/fee?
27. -Generally Accepted Accounting Practice
-Cost Accounting Standards: The cost accounting systems that are
used by a contractor manufacturing a number of identical units for
multiple customers are:
28.True *: 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".
29.They must certify that they relied on that certified cost or pricing data
in the Price Negotiation Memorandum *: When the Contracting Officer
has relied on certified cost or pricing data in the price determination,
which of the following statements is true?
30.True *: The first step when conducting stratified sampling is to
, CLC 056 Analyzing Contract Costs Study
Guide
identify the population of items to be sampled.
31.Total of all costs *: What is the most common base for calculating the
General and Administrative (G&A) overhead rate?
32.Standard Deviation *: A measure of the amount of dispersion, or
distance, between data points is the:
