CLC 056 Analyzing Contract Costs Exam
1. Identify the circumstances when cost analysis should be performed by answering the following question:
“Unless an exception to certified cost or pricing data applies, you can perform cost analysis on which of
the following procurements?
a. All of these are correct
b. The award of a subcontract at any tier, if the contractor and each higher-tier subcontractor have
been required to furnish certified cost or pricing data.
c. The modification of any sealed bid or negotiated contract
d. The award of any negotiated contract (except for undefinitized actions such as letter contracts.
2. What is the best method for determining an improvement curve slope?
a. Using the median percentage from similar products
b. Using established slopes from the Cost Estimator’s Reference
Manual c. Using actual historical data
d. Using averages derived from recent procurements
3. Each Price Negotiation Memorandum must contain which one of the
following? a. Statement that the price is fair and reasonable
b. Signature of the Contract Specialist
c. Signature of the Legal Counsel
d. Statement that the FAR was consistently followed.
4. Which sampling technique is used to focus on high-value items?
a. Random
b. Stratified
c. Cluster
d. Nonprobability
5. Which of the following type of costs would most likely be categorized as both direct costs and indirect
costs, depending on the circumstance?
a. G&A Overhead
b. Utilities
c. Direct Material
d. Travel Expense
6. Using a direct comparison with the cost of a similar contract effort is an acceptable summary
estimating technique.
a. True
b. False
7. Identify when cost analysis would be required.
a. For all proposals exceeding the micro purchase threshold
b. Whenever a price proposal is received
c. When certified cost or pricing data are required
d. To evaluate profit or fee
8. What two costs elements are required to calculate an indirect cost
rate? a. Expense pool and Allocation base
b. Overhead rate and Expense base
c. Allocation Pool and Expense
base
d. Allocation base and Overhead rate
9. In reviewing the proposal for the robotic surveillance vehicle you asked for clarification on the travel cost
listed as an ODC. Which response would justify travel as an ODC?
a. The travel costs are for the project manager and the manufacturing supervisor to deliver the prototype
to the Government testing site for final demonstration testing.
b. The travel costs are for several senior engineers to attend a conference on the latest development
in manufacturing.
c. The travel costs are for the corporate vice president to attend the annual robotic association meeting.
, CLC 056 Analyzing Contract Costs Exam
d. The travel costs are for warehouse personnel to attend OSHA training on how to safely handle
hazardous materials.
10. Which of the following is an indirect cost pool?
a. Manufacturing labor
b. Assembly labor
c. General and Administrative Expenses
d. Direct material
11. What is Certified Cost or Pricing Data subsequently found to have been inaccurate, incomplete, or
noncurrent known as?
a. Defective Pricing
b. Data other than cost or pricing data
c. Exception to certified cost or pricing data
d. CICA Violation
12. How is simple linear regression used?
a. To make predictions about one dependent variable based on one independent variable
b. To make predictions about one dependent variable based on more than one independent variable.
c. To calculate an estimate that demonstrates the most likely average value based on the data supplied
d. To ensure contractor’s estimates properly capture the reduction of labor costs associated with
repetitive production tasks.
13. What is the “base” that used in the calculation of the performance rick, contract type rick, and cost
efficiency factor when using the weighted guidelines to determine a profit/fee objective?
a. Indirect costs
b. Total price
c. Direct costs
d. Total costs
14. What is an important driver to a successful negotiation?
a. Obtain the lowest price for the government
b. Ensure your position os heard
c. Maintain position of
power d. Listen to understand
15. How may you request an audit?
a. By mail
b. By email
c. By telephone call
d. All of these are correct
16. Which of the following would be a proper method of determining the reasonableness of a contractor’s
proposed labor hour estimate?
a. Request that the contractor provide a should-cost-estimate
b. Decrement labor hours estimate according to DCAA standard decrement
c. Compare proposed hours on all other contracts from the same
contractor d. Compare proposed hours with a government should-cost
estimate
17. Identify the correct definition of “Cost Realism Analysis”
a. The process of examining and evaluating a proposal to ensure all elements of cost are in line with
the Independent Government Estimate
b. The review and evaluation of individual cost elements, excluding profit, in a proposal.
c. The process of independently reviewing and evaluating specific elements of cost, in part to determine
whether they reflect a clear understanding of the requirement.
d. The review of a proposal to ensure the contractor has properly documented adherence to
their approved estimating system guidelines
18. Select the item below that would likely be categorized as a Direct Material Cost
1. Identify the circumstances when cost analysis should be performed by answering the following question:
“Unless an exception to certified cost or pricing data applies, you can perform cost analysis on which of
the following procurements?
a. All of these are correct
b. The award of a subcontract at any tier, if the contractor and each higher-tier subcontractor have
been required to furnish certified cost or pricing data.
c. The modification of any sealed bid or negotiated contract
d. The award of any negotiated contract (except for undefinitized actions such as letter contracts.
2. What is the best method for determining an improvement curve slope?
a. Using the median percentage from similar products
b. Using established slopes from the Cost Estimator’s Reference
Manual c. Using actual historical data
d. Using averages derived from recent procurements
3. Each Price Negotiation Memorandum must contain which one of the
following? a. Statement that the price is fair and reasonable
b. Signature of the Contract Specialist
c. Signature of the Legal Counsel
d. Statement that the FAR was consistently followed.
4. Which sampling technique is used to focus on high-value items?
a. Random
b. Stratified
c. Cluster
d. Nonprobability
5. Which of the following type of costs would most likely be categorized as both direct costs and indirect
costs, depending on the circumstance?
a. G&A Overhead
b. Utilities
c. Direct Material
d. Travel Expense
6. Using a direct comparison with the cost of a similar contract effort is an acceptable summary
estimating technique.
a. True
b. False
7. Identify when cost analysis would be required.
a. For all proposals exceeding the micro purchase threshold
b. Whenever a price proposal is received
c. When certified cost or pricing data are required
d. To evaluate profit or fee
8. What two costs elements are required to calculate an indirect cost
rate? a. Expense pool and Allocation base
b. Overhead rate and Expense base
c. Allocation Pool and Expense
base
d. Allocation base and Overhead rate
9. In reviewing the proposal for the robotic surveillance vehicle you asked for clarification on the travel cost
listed as an ODC. Which response would justify travel as an ODC?
a. The travel costs are for the project manager and the manufacturing supervisor to deliver the prototype
to the Government testing site for final demonstration testing.
b. The travel costs are for several senior engineers to attend a conference on the latest development
in manufacturing.
c. The travel costs are for the corporate vice president to attend the annual robotic association meeting.
, CLC 056 Analyzing Contract Costs Exam
d. The travel costs are for warehouse personnel to attend OSHA training on how to safely handle
hazardous materials.
10. Which of the following is an indirect cost pool?
a. Manufacturing labor
b. Assembly labor
c. General and Administrative Expenses
d. Direct material
11. What is Certified Cost or Pricing Data subsequently found to have been inaccurate, incomplete, or
noncurrent known as?
a. Defective Pricing
b. Data other than cost or pricing data
c. Exception to certified cost or pricing data
d. CICA Violation
12. How is simple linear regression used?
a. To make predictions about one dependent variable based on one independent variable
b. To make predictions about one dependent variable based on more than one independent variable.
c. To calculate an estimate that demonstrates the most likely average value based on the data supplied
d. To ensure contractor’s estimates properly capture the reduction of labor costs associated with
repetitive production tasks.
13. What is the “base” that used in the calculation of the performance rick, contract type rick, and cost
efficiency factor when using the weighted guidelines to determine a profit/fee objective?
a. Indirect costs
b. Total price
c. Direct costs
d. Total costs
14. What is an important driver to a successful negotiation?
a. Obtain the lowest price for the government
b. Ensure your position os heard
c. Maintain position of
power d. Listen to understand
15. How may you request an audit?
a. By mail
b. By email
c. By telephone call
d. All of these are correct
16. Which of the following would be a proper method of determining the reasonableness of a contractor’s
proposed labor hour estimate?
a. Request that the contractor provide a should-cost-estimate
b. Decrement labor hours estimate according to DCAA standard decrement
c. Compare proposed hours on all other contracts from the same
contractor d. Compare proposed hours with a government should-cost
estimate
17. Identify the correct definition of “Cost Realism Analysis”
a. The process of examining and evaluating a proposal to ensure all elements of cost are in line with
the Independent Government Estimate
b. The review and evaluation of individual cost elements, excluding profit, in a proposal.
c. The process of independently reviewing and evaluating specific elements of cost, in part to determine
whether they reflect a clear understanding of the requirement.
d. The review of a proposal to ensure the contractor has properly documented adherence to
their approved estimating system guidelines
18. Select the item below that would likely be categorized as a Direct Material Cost
