CLC 056 Analyzing Contract Costs Exam (98% grade) 54/55 answered correct
Identify strategies to mitigate cost risk
Which of the following is the best strategy to mitigate cost risk?
• Conduct adequate market research prior to entering negotiations
Differentiate between the measures of central tendency and the methods for
measuring dispersion
When given a set of data that appears to contain outliers, which measure of
central tendency is most appropriate to use?
• Median
Determine if an exception to the Truth-in-Negotiations Act applies
Which of the following situations are considered exempt from the submission
of certified cost or pricing data?
• Prices are set by law or regulation
Identify key terms involved during a contract negotiation
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?
• Win-Win
Identify factors that contribute to success in any negotiation
Which of the following factors is critical to a successful negotiation?
• Effectively prepare, plan, and communicate
Calculate an objective using improvement curve analysis
Given the improvement curve data, calculate the cost objective for unit
#64. Labor hours for unit #32; 42,000 hours Labor ours for unit #1: 79,000
hours Rate of improvement: 20% improvement curve slope: 80% (question
6)
• 33,600
Identify cost analysis terms and techniques used when developing a pre-
negotiation position
According to FAR 15.4, which of the following is one of the two most preferred
price analysis techniques?
• Comparison of proposed prices received in response to the solicitation
Identify situations when an audit should be requested
The purpose of an audit is
to?
• All of these are correct
, Determine the fairness and reasonableness of summary level cost estimates
Using a direct comparison with the cost of a similar contract effort is an
acceptable summary estimating technique.
• True
Identify contract situations where statistical analysis is an appropriate tool for
developing a pre-negotiation objective
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?
• Developing a price negotiation objective for labor costs
Identify the required cost elements in FAR Table 15-2
When certified cost or pricing data is required, data showing that adequate
price competition for acquisitions exceeding the TINA threshold was
obtained is required as part of the contractor’s proposal.
• True
Examine proposed labor rates to determine a fair and reasonable pre-
negotiation position
Which of these situations warrants the use of a round-table estimate?
• A contract is for a unique item, and there is no historical data
available (i.e., detailed drawings, bill of materials, firm
specifications).
Identify indirect cost pools and bases
Which of the following is an indirect cost pool?
• General and Administrative Expenses
Establish the fairness and reasonableness of detailed quantity estimates
Which of the following is an effective use of stratified sampling?
• Analyzing the items that make up 80% of the total material cost and
10% of the remaining items
Calculate a profit/fee using the appropriate structured approach
When is the working capital adjustment used while calculating profit/fee?
• all fixed price contracts with progress payments
Identify contract pricing situations where simple regression analysis should be
considered
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?
• Mileage of all similar cars
Identify strategies to mitigate cost risk
Which of the following is the best strategy to mitigate cost risk?
• Conduct adequate market research prior to entering negotiations
Differentiate between the measures of central tendency and the methods for
measuring dispersion
When given a set of data that appears to contain outliers, which measure of
central tendency is most appropriate to use?
• Median
Determine if an exception to the Truth-in-Negotiations Act applies
Which of the following situations are considered exempt from the submission
of certified cost or pricing data?
• Prices are set by law or regulation
Identify key terms involved during a contract negotiation
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?
• Win-Win
Identify factors that contribute to success in any negotiation
Which of the following factors is critical to a successful negotiation?
• Effectively prepare, plan, and communicate
Calculate an objective using improvement curve analysis
Given the improvement curve data, calculate the cost objective for unit
#64. Labor hours for unit #32; 42,000 hours Labor ours for unit #1: 79,000
hours Rate of improvement: 20% improvement curve slope: 80% (question
6)
• 33,600
Identify cost analysis terms and techniques used when developing a pre-
negotiation position
According to FAR 15.4, which of the following is one of the two most preferred
price analysis techniques?
• Comparison of proposed prices received in response to the solicitation
Identify situations when an audit should be requested
The purpose of an audit is
to?
• All of these are correct
, Determine the fairness and reasonableness of summary level cost estimates
Using a direct comparison with the cost of a similar contract effort is an
acceptable summary estimating technique.
• True
Identify contract situations where statistical analysis is an appropriate tool for
developing a pre-negotiation objective
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?
• Developing a price negotiation objective for labor costs
Identify the required cost elements in FAR Table 15-2
When certified cost or pricing data is required, data showing that adequate
price competition for acquisitions exceeding the TINA threshold was
obtained is required as part of the contractor’s proposal.
• True
Examine proposed labor rates to determine a fair and reasonable pre-
negotiation position
Which of these situations warrants the use of a round-table estimate?
• A contract is for a unique item, and there is no historical data
available (i.e., detailed drawings, bill of materials, firm
specifications).
Identify indirect cost pools and bases
Which of the following is an indirect cost pool?
• General and Administrative Expenses
Establish the fairness and reasonableness of detailed quantity estimates
Which of the following is an effective use of stratified sampling?
• Analyzing the items that make up 80% of the total material cost and
10% of the remaining items
Calculate a profit/fee using the appropriate structured approach
When is the working capital adjustment used while calculating profit/fee?
• all fixed price contracts with progress payments
Identify contract pricing situations where simple regression analysis should be
considered
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?
• Mileage of all similar cars
