CLC 056 Analyzing Contract Costs Study Guide With Complete Solution

According to FAR 15.4, which of the following is one of the two most preferred price analysis techniques? - Answer Comparison of proposed prices received in response to the solicitation * How may you request an audit? - Answer All of these are correct A "questioned cost" is one that has not yet been evaluated. - Answer False * True or False: "Direct labor positions" share the same titles and pay levels. - Answer False * For which of the following procurements would you require certified cost or pricing data? - Answer 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? - Answer To make predictions about one dependent variable based on one independent variable * Which of the following is a phase in the allocation cycle? - Answer 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? - Answer 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: - Answer 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? - Answer The Agency Head * A cost is allowable if it is: - Answer Reasonable, allocable and compliant with CAS/GAAP * What is an important driver to a successful negotiation? - Answer Listen to understand * Which regression method assumes a linear relationship between the dependent and independent variables? - Answer Simple linear regression * What is the single most important decision the Contracting Officer must make to mitigate cost risk? - Answer 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. - Answer True Each Price Negotiation Memorandum must contain which one of the following? - Answer Statement that the price is fair and reasonable * Select the item below that would likely be categorized as a Direct Material Cost. - Answer 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. - Answer True * Which of the following would be a proper method of determining the reasonableness of a contractor's proposed labor hour estimate? - Answer -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. - Answer True * Identify the ultimate objective of performing proposal analysis. - Answer To ensure the final agreed to price is fair and reasonable * Identify the correct definition of "Cost Analysis". - Answer 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) - Answer False * Which of the following is an effective use of stratified sampling? - Answer 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? - Answer When the value, importance, and complexity warrant the modeling *