CLC 056 ANALYZING CONTRACT COSTS
EXAM COMPREHENSIVE TEST 2026
QUESTIONS AND ANSWERS
◉ The cost accounting systems that are used by a contractor
manufacturing a number of identical units for multiple customers
are: Answer: -Generally Accepted Accounting Practice
-Cost Accounting Standards
◉ 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". Answer: True *
◉ When the Contracting Officer has relied on certified cost or
pricing data in the price determination, which of the following
statements is true? Answer: They must certify that they relied on
that certified cost or pricing data in the Price Negotiation
Memorandum *
◉ The first step when conducting stratified sampling is to identify
the population of items to be sampled. Answer: True *
,◉ What is the most common base for calculating the General and
Administrative (G&A) overhead rate? Answer: Total of all costs *
◉ A measure of the amount of dispersion, or distance, between data
points is the: Answer: Standard Deviation *
◉ Which of the following is the preferred method for determining if
a proposed cost is reasonable? Answer: Comparing with other
competitive proposals received in response to the solicitation *
◉ Which situation below would you use improvement curve analysis
to evaluate proposed costs? Answer: Assembly line with high
proportion of manual labor *
◉ Which of the following situations are considered exempt from the
submission of Certified Cost or Pricing Data? Answer: Prices are set
by law or regulation. *
◉ When calculating the confidence interval, the sample standard
deviation is used to derive the standard error of the mean. Answer:
True
◉ Identify the response below that correctly describes the term
"Data other than certified cost or pricing data". Answer: Pricing data,
,cost data, and judgmental information that is not certified, but is
used to determine a fair and reasonable price
◉ Which sampling technique is used to focus on high-value items?
Answer: Stratified *
◉ Given the following data, calculate the standard deviation. Sample
data: 13, 12, 9, 15, 11, 16, 17, 8, 12, 7, 12 Answer: 3.19 *
◉ When using simple linear regression to analyze the estimated
price for a used car, which of the following independent variables
would result in a realistic estimating equation? Answer: Mileage of
all similar cars
Weight of all similar cars
Color of all similar cars
◉ True of False: After completing the five-step Least-Best-Squares-
Fit (LBSF) process when developing a regression equation, you must
evaluate the "goodness" of the fit and the statistical significance.
Answer: True
◉ What is the negotiation term that reflects each party emphasizing
the long term effects and benefits as well as both parties defining
their interests to be achieved in conjunction with the outcome?
Answer: Win-Win *
, ◉ What is the best method for determining an improvement curve
slope? Answer: -Using actual historical data *
◉ The moving average inventory pricing method is being used when
a company recalculates inventory prices every time that a new item
is added to inventory. Answer: True *
◉ What two costs elements are required to calculate an indirect cost
rate? Answer: Expense Pool and Allocation base *
◉ What is the government's primary objective in negotiations?
Answer: -To establish profit/fee percentage that is in line with
previous contracts with the particular contractor
-To agree on each element of cost with the contractor
-To agree on a price that is fair and reasonable to the government
and contractor
◉ Identify the primary issue you should consider when analyzing
direct labor categories in a contractor's proposal. Answer: -Is the
proposed skill mix identical to the independent government
estimate?
-Does the contractor compensate their employees for unpaid
overtime?
-Is the proposed skill mix reasonable for the work required?
EXAM COMPREHENSIVE TEST 2026
QUESTIONS AND ANSWERS
◉ The cost accounting systems that are used by a contractor
manufacturing a number of identical units for multiple customers
are: Answer: -Generally Accepted Accounting Practice
-Cost Accounting Standards
◉ 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". Answer: True *
◉ When the Contracting Officer has relied on certified cost or
pricing data in the price determination, which of the following
statements is true? Answer: They must certify that they relied on
that certified cost or pricing data in the Price Negotiation
Memorandum *
◉ The first step when conducting stratified sampling is to identify
the population of items to be sampled. Answer: True *
,◉ What is the most common base for calculating the General and
Administrative (G&A) overhead rate? Answer: Total of all costs *
◉ A measure of the amount of dispersion, or distance, between data
points is the: Answer: Standard Deviation *
◉ Which of the following is the preferred method for determining if
a proposed cost is reasonable? Answer: Comparing with other
competitive proposals received in response to the solicitation *
◉ Which situation below would you use improvement curve analysis
to evaluate proposed costs? Answer: Assembly line with high
proportion of manual labor *
◉ Which of the following situations are considered exempt from the
submission of Certified Cost or Pricing Data? Answer: Prices are set
by law or regulation. *
◉ When calculating the confidence interval, the sample standard
deviation is used to derive the standard error of the mean. Answer:
True
◉ Identify the response below that correctly describes the term
"Data other than certified cost or pricing data". Answer: Pricing data,
,cost data, and judgmental information that is not certified, but is
used to determine a fair and reasonable price
◉ Which sampling technique is used to focus on high-value items?
Answer: Stratified *
◉ Given the following data, calculate the standard deviation. Sample
data: 13, 12, 9, 15, 11, 16, 17, 8, 12, 7, 12 Answer: 3.19 *
◉ When using simple linear regression to analyze the estimated
price for a used car, which of the following independent variables
would result in a realistic estimating equation? Answer: Mileage of
all similar cars
Weight of all similar cars
Color of all similar cars
◉ True of False: After completing the five-step Least-Best-Squares-
Fit (LBSF) process when developing a regression equation, you must
evaluate the "goodness" of the fit and the statistical significance.
Answer: True
◉ What is the negotiation term that reflects each party emphasizing
the long term effects and benefits as well as both parties defining
their interests to be achieved in conjunction with the outcome?
Answer: Win-Win *
, ◉ What is the best method for determining an improvement curve
slope? Answer: -Using actual historical data *
◉ The moving average inventory pricing method is being used when
a company recalculates inventory prices every time that a new item
is added to inventory. Answer: True *
◉ What two costs elements are required to calculate an indirect cost
rate? Answer: Expense Pool and Allocation base *
◉ What is the government's primary objective in negotiations?
Answer: -To establish profit/fee percentage that is in line with
previous contracts with the particular contractor
-To agree on each element of cost with the contractor
-To agree on a price that is fair and reasonable to the government
and contractor
◉ Identify the primary issue you should consider when analyzing
direct labor categories in a contractor's proposal. Answer: -Is the
proposed skill mix identical to the independent government
estimate?
-Does the contractor compensate their employees for unpaid
overtime?
-Is the proposed skill mix reasonable for the work required?
