ADVANCED CONTRACTING EXAM WITH
CORRECT ANSWERS
The powner prequests pchanges pwhich pwill pcost pthe pcontractor p$2,500 pin plabor pand
pmaterials pand p$700 pin poverhead pcosts. pWith pthe pchange, pthe pcontractor pwould
pbe prelieved pof p$1,000 pin plabor pcosts pand p$280 pin poverhead pcosts pfrom pthe
poriginal pcontract. pThe poriginal pbid pincluded pprofit pof p10% pof pall pcosts. pThe
pcontractor pwants pto pmake pa pprofit pof p10% pof pall pcosts pon pthe pchanges. pThe
pamount pof pthe pchange porder pshould pinclude pa prequest pof pan padditional... p-
pcorrect panswers p-$2,112
A plump psum pcontract pon pa pproject phas pa ptotal pcontract pprice pof p$200,000.
pRetainage phas pbeen pheld pback pat p10%. pThe pcontractor phas preceived pprogress
ppayments pof p90% pof pthe pproject. pThe pcontractor psubmits pa prequest pfor pthe
, pfinal ppayment pfor pthe pnow pcompleted pproject. pThe pfinal ppayment pamount pshould
pbe pfor... p- pcorrect panswers p-between p$35,000 pand p$40,000
A pcontractor pagrees pto punit pprice pcontract pto pProduct pA pfor p$50 pper punit,
pProduct pB pfor p$50 pper punit, pand pProduct pC pfor p$375 pper punit. pThe pcontractor
pis palso pto padd p30% pfor poverhead pand pprofit. pHow pmuch pshould pthe pcontractor
pbe ppaid pfor pproducing p27 punits pof pProduct pA, p56 punits pof pProduct pB pand p78
punits pof pProduct pC? p- pcorrect panswers p-Between p$40,000 pand p$45,000
A pcontract pcalls pfor pliquidated pdamages pof p$500 pper pday. pThe pproject
pcompleted pfive pdays plate pbecause pit pwas pdelayed pby prain. pThe pcompletion
pwould phave pbeen pten pdays pearlier pif pit pwere pnot pfor pthe prain pdelay. pThere pwas
pa p$500 pbonus pper pday pfor pthe pcontractor pfor pearly pcompletion. pNo pextension pof
ptime pwas prequested por pgranted. pHow pmuch pdoes pthe pcontractor pearn por powe?
p- pcorrect panswers p-Owes p$2,500 pin pLiquidated pdamages
A pjob phas pa pbid pprice pof p165,000 pafter pdirect pcosts pand poverhead pare pfactored.
pWhat pwill pthe pfinal pbid pbe pif pthe pprofit pmarkup pis p11.5%? p- pcorrect panswers p-
$186,440
Given pthe pfollowing pinformation, pis pit padvantageous pto ppurchase por prent pthis
pparticular ppiece pof pequipment pif pit phas p3 puseful pyears? p- pcorrect panswers p-
Purchasing psaves p$3,160
In pa pcost pplus pcontract, pthe pcontractor preceives pdirect pcosts pfor plabor pand
pmaterials pwith pa p40% pmarkup, pa p10% pbonus pif pthe ptotal pcost pto pthe powner pis
pless pthan p$100,000, pand pa p$500 pbonus pfor peach pday pthat pthe pwork pis
pcompleted pearly. pThe pfinal pcost pof plabor pand pmaterials pis p$60,000 pand pthe
pwork pis pdone p5 pdays pearly. pHow pmuch pis pthe pcontractor pdue? p- pcorrect
panswers p-Between p$90,000 pand p$95,000
What pis pthe pbid pfor pthe pfollowing pwhen pthere pis pa pcombined pprofit pand
poverhead pof p30%?
- p10 punits pat p$75 peach
- p20 punits pat p$200 peach
- p30 punits pat p$290 peach p- pcorrect panswers p-$19,214
A pfirm phas pcurrent passets pof p$68,000, pfixed passets pof p$162,000, pcurrent
pliabilities pof p$45,000, pand plong pterm pliabilities pof p$72,000. pThe pfirm's pfinancial
pposition pwould pbe pconsidered pto pbe... p- pcorrect panswers p-Adequate pfor ptaking
pon pa pmajor pproject
The pcost pof pequipment pis p$1,000, pthe pcost pof pmaterials pis p$6,000, pand pdirect
plabor pis p$3,000. pProject poverhead pis p20% pof pdirect plabor, pgeneral poverhead pis
p10% pof pdirect plabor pand pmaterials, pand pprofit pis p10% pof pall pcost. pThe powner
CORRECT ANSWERS
The powner prequests pchanges pwhich pwill pcost pthe pcontractor p$2,500 pin plabor pand
pmaterials pand p$700 pin poverhead pcosts. pWith pthe pchange, pthe pcontractor pwould
pbe prelieved pof p$1,000 pin plabor pcosts pand p$280 pin poverhead pcosts pfrom pthe
poriginal pcontract. pThe poriginal pbid pincluded pprofit pof p10% pof pall pcosts. pThe
pcontractor pwants pto pmake pa pprofit pof p10% pof pall pcosts pon pthe pchanges. pThe
pamount pof pthe pchange porder pshould pinclude pa prequest pof pan padditional... p-
pcorrect panswers p-$2,112
A plump psum pcontract pon pa pproject phas pa ptotal pcontract pprice pof p$200,000.
pRetainage phas pbeen pheld pback pat p10%. pThe pcontractor phas preceived pprogress
ppayments pof p90% pof pthe pproject. pThe pcontractor psubmits pa prequest pfor pthe
, pfinal ppayment pfor pthe pnow pcompleted pproject. pThe pfinal ppayment pamount pshould
pbe pfor... p- pcorrect panswers p-between p$35,000 pand p$40,000
A pcontractor pagrees pto punit pprice pcontract pto pProduct pA pfor p$50 pper punit,
pProduct pB pfor p$50 pper punit, pand pProduct pC pfor p$375 pper punit. pThe pcontractor
pis palso pto padd p30% pfor poverhead pand pprofit. pHow pmuch pshould pthe pcontractor
pbe ppaid pfor pproducing p27 punits pof pProduct pA, p56 punits pof pProduct pB pand p78
punits pof pProduct pC? p- pcorrect panswers p-Between p$40,000 pand p$45,000
A pcontract pcalls pfor pliquidated pdamages pof p$500 pper pday. pThe pproject
pcompleted pfive pdays plate pbecause pit pwas pdelayed pby prain. pThe pcompletion
pwould phave pbeen pten pdays pearlier pif pit pwere pnot pfor pthe prain pdelay. pThere pwas
pa p$500 pbonus pper pday pfor pthe pcontractor pfor pearly pcompletion. pNo pextension pof
ptime pwas prequested por pgranted. pHow pmuch pdoes pthe pcontractor pearn por powe?
p- pcorrect panswers p-Owes p$2,500 pin pLiquidated pdamages
A pjob phas pa pbid pprice pof p165,000 pafter pdirect pcosts pand poverhead pare pfactored.
pWhat pwill pthe pfinal pbid pbe pif pthe pprofit pmarkup pis p11.5%? p- pcorrect panswers p-
$186,440
Given pthe pfollowing pinformation, pis pit padvantageous pto ppurchase por prent pthis
pparticular ppiece pof pequipment pif pit phas p3 puseful pyears? p- pcorrect panswers p-
Purchasing psaves p$3,160
In pa pcost pplus pcontract, pthe pcontractor preceives pdirect pcosts pfor plabor pand
pmaterials pwith pa p40% pmarkup, pa p10% pbonus pif pthe ptotal pcost pto pthe powner pis
pless pthan p$100,000, pand pa p$500 pbonus pfor peach pday pthat pthe pwork pis
pcompleted pearly. pThe pfinal pcost pof plabor pand pmaterials pis p$60,000 pand pthe
pwork pis pdone p5 pdays pearly. pHow pmuch pis pthe pcontractor pdue? p- pcorrect
panswers p-Between p$90,000 pand p$95,000
What pis pthe pbid pfor pthe pfollowing pwhen pthere pis pa pcombined pprofit pand
poverhead pof p30%?
- p10 punits pat p$75 peach
- p20 punits pat p$200 peach
- p30 punits pat p$290 peach p- pcorrect panswers p-$19,214
A pfirm phas pcurrent passets pof p$68,000, pfixed passets pof p$162,000, pcurrent
pliabilities pof p$45,000, pand plong pterm pliabilities pof p$72,000. pThe pfirm's pfinancial
pposition pwould pbe pconsidered pto pbe... p- pcorrect panswers p-Adequate pfor ptaking
pon pa pmajor pproject
The pcost pof pequipment pis p$1,000, pthe pcost pof pmaterials pis p$6,000, pand pdirect
plabor pis p$3,000. pProject poverhead pis p20% pof pdirect plabor, pgeneral poverhead pis
p10% pof pdirect plabor pand pmaterials, pand pprofit pis p10% pof pall pcost. pThe powner
