CLC 056 ANALYZING CONTRACT COSTS
EXAM PRACTICE TEST 2026 QUESTIONS WITH
ANSWERS
◉ 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 *
, ◉ When is the working capital adjustment used while calculating
profit/fee? Answer: On all fixed price contracts with progress
payments *
◉ 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 *
EXAM PRACTICE TEST 2026 QUESTIONS WITH
ANSWERS
◉ 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 *
, ◉ When is the working capital adjustment used while calculating
profit/fee? Answer: On all fixed price contracts with progress
payments *
◉ 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 *
