CLC 056 ANALYZING CONTRACT COSTS
EXAM EXAM SCRIPT 2026 COMPLETE
QUESTIONS AND SOLUTIONS
◉ 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?
EXAM EXAM SCRIPT 2026 COMPLETE
QUESTIONS AND SOLUTIONS
◉ 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?
