CGFM Test 3 (2) 2025 Questions and
Answers
Activity Measure - --Answer --A measure to monitor a credit program.
Indicates the volume of activity performed. Ex: # of loans outstanding, $ of loans
outstanding, volume of loans generated during the past year, quarter or month...
Effectiveness measures - --Answer --A measure to monitor a credit
program. Indicates the extent to which the program is achieving the intended
results and the effectiveness of different collection techniques. Ex: % of
enrollment increase per million dollars of student loans, # of jobs created per
million dollars of small business loans
Status Measures - --Answer --A measure to monitor a credit program.
Indicates the quantity and quality of the loans made and retained. Ex: # of
delinquent accounts, $ amount of delinquent accounts
Efficiency Measures - --Answer --A measure to monitor a credit program.
Indicators of the cost per unit of various operations, including the various
collection techniques. Ex: Cost per Loan processed, cost per dollar collected...
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Request for Qualification (RFQ) - --Answer --Used to pre-qualify vendors,
based on factors like level of experience to perform types of services, background
of employed staff, previous work, financial capacity. This allows the government to
limit the proposal it has to look at.
Blanket Purchase Agreement - --Answer --Individual govts. or agencies may
enter bulk purchases for specific items needed for a specified period of time.
Components then issue Purchase Orders against the contract.
Small Purchase Procedures - --Answer --Laws or regulations may define
small purchases as up to $10k as representing small purchases. Auditors should be
wary to circumvent the dollar amounts by splitting up large orders into several
small ones.
Fixed Price Contract - --Answer --Contracts in which prices are not subject
to adjustment, regardless of the contractor's cost experience
Cost Reimbursable Contract - --Answer --payment of allowable costs
incurred to the extent specified in the contract
Cost plus fixed fee - --Answer --Type of Cost Reimbursable Contract.
Contractor receives allowable costs plus a fixed amount of fee specified in the
contract.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, Cost plus Incentive Fee - --Answer --Type of Cost Reimbursable Contract.
Contractor receives allowable costs plus a fee that varies inversely with the amount
of cost incurred
Cost with no Fee - --Answer --Type of Cost Reimbursable Contract.
Contractor is reimbursed for only allowable costs (typical with universities, non-
profit, and R&D contracts)
Cost Sharing Contract - --Answer --Type of Cost Reimbursable Contract.
Contractor and government share the costs and the contractor receives no fees
Time and Materials Contract - --Answer --Type of Cost Reimbursable
Contract. Contractor receives flat rate per hour or day for labor, plus the costs of
materials. Risky for government because the contractor has no incentive to keep
the number of hours down.
Real Property - --Answer --Leased or owned and includes land, land rights
and anything else attached to the land (except natural resources), buildings and
infrastructure
Personal Property - --Answer --Equipment, furniture, fixtures, supplies,
hardware, software. It can include intellectual property like copyrights, bonds,
stocks...
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
Answers
Activity Measure - --Answer --A measure to monitor a credit program.
Indicates the volume of activity performed. Ex: # of loans outstanding, $ of loans
outstanding, volume of loans generated during the past year, quarter or month...
Effectiveness measures - --Answer --A measure to monitor a credit
program. Indicates the extent to which the program is achieving the intended
results and the effectiveness of different collection techniques. Ex: % of
enrollment increase per million dollars of student loans, # of jobs created per
million dollars of small business loans
Status Measures - --Answer --A measure to monitor a credit program.
Indicates the quantity and quality of the loans made and retained. Ex: # of
delinquent accounts, $ amount of delinquent accounts
Efficiency Measures - --Answer --A measure to monitor a credit program.
Indicators of the cost per unit of various operations, including the various
collection techniques. Ex: Cost per Loan processed, cost per dollar collected...
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Request for Qualification (RFQ) - --Answer --Used to pre-qualify vendors,
based on factors like level of experience to perform types of services, background
of employed staff, previous work, financial capacity. This allows the government to
limit the proposal it has to look at.
Blanket Purchase Agreement - --Answer --Individual govts. or agencies may
enter bulk purchases for specific items needed for a specified period of time.
Components then issue Purchase Orders against the contract.
Small Purchase Procedures - --Answer --Laws or regulations may define
small purchases as up to $10k as representing small purchases. Auditors should be
wary to circumvent the dollar amounts by splitting up large orders into several
small ones.
Fixed Price Contract - --Answer --Contracts in which prices are not subject
to adjustment, regardless of the contractor's cost experience
Cost Reimbursable Contract - --Answer --payment of allowable costs
incurred to the extent specified in the contract
Cost plus fixed fee - --Answer --Type of Cost Reimbursable Contract.
Contractor receives allowable costs plus a fixed amount of fee specified in the
contract.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, Cost plus Incentive Fee - --Answer --Type of Cost Reimbursable Contract.
Contractor receives allowable costs plus a fee that varies inversely with the amount
of cost incurred
Cost with no Fee - --Answer --Type of Cost Reimbursable Contract.
Contractor is reimbursed for only allowable costs (typical with universities, non-
profit, and R&D contracts)
Cost Sharing Contract - --Answer --Type of Cost Reimbursable Contract.
Contractor and government share the costs and the contractor receives no fees
Time and Materials Contract - --Answer --Type of Cost Reimbursable
Contract. Contractor receives flat rate per hour or day for labor, plus the costs of
materials. Risky for government because the contractor has no incentive to keep
the number of hours down.
Real Property - --Answer --Leased or owned and includes land, land rights
and anything else attached to the land (except natural resources), buildings and
infrastructure
Personal Property - --Answer --Equipment, furniture, fixtures, supplies,
hardware, software. It can include intellectual property like copyrights, bonds,
stocks...
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
