CLC 056 Analyzing Contract Costs Exam (98% grade) 54/55 answered correct | 2022 latest update

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 prenegotiation 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 Develop a pre-negotiation position for profit or fee that is fair and reasonable. What is the “base” that used in the calculation of the performance risk, contract type risk, and cost efficiency factor when using the weighted guidelines to determine a profit/fee objective?  Total costs Calculate a pre-negotiation objective using the appropriate statistical analysis techniques Given the following data, calculate the sample median data: 17, 16, 17, 16, 17, 18, 18,  17 Determine if a cost is reasonable A contractor submits a cost proposal and includes support that its proposed costs are what it would actually incur during contract performance. In this case, the government contracting officer is required to consider the proposed costs as reasonable.  False Evaluate the reasonableness of unit cost estimates When material prices may vary significantly from current inventory values, which estimating method should be used?  Current supplier quotes Identify the factors affecting profit/fee analysis True or False: The national average mortgage rate is used in calculating facilities capital cost of Money (FCCOM)  False Identify the process for requesting an audit and the key players involved with the process How may you request an audit?  All of these are correct Identify the remedy to the Government in the event that a contractor submits defective data When the Contracting Officer has relied on certified cost or pricing data in the price determination, which of the following statements is true?  They must certify that they relied on that certified cost or pricing data in the Price Negotiation Memorandum Identify terms associated with the Truth-in-Negotiations Act (TINA) What is certified cost or pricing data subsequently found to have been inaccurate, incomplete, or noncurrent known as?  Defective Pricing Recognize elements affecting facilities capital cost of money Which of the following are factors used in calculating the Facilities Capital Cost of Money (FCCOM) amount?  Proposal allocation base amounts Identify the fundamentals of cost analysis Identify the ultimate objective of performing proposal analysis. (  To ensure the final agreed to price is fair and reasonable Recognize concerns that affect the other direct costs proposed Which of the following types of costs might be found both as direct costs and indirect costs, depending on the circumstance?  Travel Expense Identify the Exemptions to Cost Accounting Standards (CAS) Coverage Which of the following situations would exempt a contract or subcontract from CAS coverage?  The contract or subcontract is with a small business Distinguish between cost analysis, price analysis, and cost realism analysis. Identify the correct definition of ”cost Realism Analysis”.  The process of independently reviewing and evaluating specific elements of cost, in part to determine whether they reflect a clear understanding of the requirement. Identify what regression analysis is How is simple linear regression used?  To make predictions about one dependent variable based on one independent variable. Determine the appropriateness of the offeror’s cost estimating methodology Which sampling technique is used to focus on high-value items?  Stratified Determine if a cost is allowable A cost is allowable if it is:  Reasonable, allocable and compliant with CAS/GAAP Identify the different regression analysis methods Which regression method assumes a linear relationship between the dependent and independent variables?  Simple linear regression Identify the rationale for modeling a contractor’s cost proposal When is it most appropriate to document or model a contractor’s proposal?  When the value, importance, and complexity warrant the modeling Identify the various types of audits A “questioned cost” is one that has not yet been evaluated.  False Identify labor classifications Which of the following labor classifications most likely involves fashioning parts from raw material’s or purchased materials?  Fabrication Select the appropriate authority for requiring an offeror to provide cost or pricing data For which of the following procurements would you require certified cost or pricing data?  An offer of $800,000 for an item from the only known source of an electronic system unique to Government requirements. Identify the steps for using improvement curve analysis What is the best method for determining an improvement curve slope?  Using actual historical data Relate proposed labor hours to work requirements to determine reasonableness of direct labor costs Which of the following would be a proper method of determining the reasonableness of a contractor’s proposed labor hour estimate?  Compare proposed hours with a Government should-cost estimate Identify the two commonly used systems for cost accounting The cost accounting systems that are used by a contractor manufacturing a number of identical units for multiple customers are:  Job Order  Process Cost Identify proposed direct labor mix Identify the primary issue you should consider when analyzing direct labor categories in a contractor’s proposal.  Is the proposed skill mix reasonable for the work required? Determine if a cost is allocable A contractor incurs costs for raw materials to be used in two different government contracts. Is the total value of this raw material allocable to one contract?  No, material must be used and charged specifically to the benefiting contract Determine if the other direct costs are properly proposed In reviewing the proposal