CLC 056 Analyzing Contract Costs Exam 100%
1. Which of the following situations are considered exempt from the submission of Certified Cost
or Pricing Data?
Prices are set by law or regulation
Sole source acquisition of $3.5M FFP effort; price determined using cost analysis
Price may be determined fair and reasonable based on price analysis proposal
techniques
Non-commercial modification of a commercial item. Modification funded by DoD and
constitutes 5% of value of modification
2. When given a set of data that appears to contain outliers, which measure of central tendency
is most appropriate to use?
Median
Coefficient of Determination
Mean
Mode
3. What is an important driver to a successful negotiation?
Listen to understand
Ensure your position is heard
Maintain position of power
Obtain the lowest price for the government
4. 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
Compare proposed hours with all other contracts from the same contractor
Decrement labor hours estimate according to DCAA standard decrement
Use a stratified sampling techniques to evaluate contractor’s labor hour estimate
5. Which of the following situations would exempt a contract or subcontract from CAS
coverage?
The contract or subcontract is with a small business
Value of the contract or subcontract is $7.5M or less
The Economic Price Adjustment clause for a commercial item is based on an index
formulated with a contractor’s historical cost data
Sole source firm fixed price contract requiring submission of cost or pricing data
6. True or False: “Direct labor positions” share the same titles and pay levels.
True
False
7. Which situation below would you use improvement curve analysis to evaluating proposed
costs?
Assembly line with high proportion of manual labor
Fabrication plant that generates 100,000 units per month
Production facility specializing in “one-off” or unique item production
Fully automated assembly line
8. Using a direct comparison with the cost of a similar contract effort is an acceptable summary
This study source was downloaded by 100000822442696 from CourseHero.com on 05-26-2022 00:01:51 GMT -05:00
https://www.coursehero.com/file/51760938/CLC-056-Analyzing-Contract-Costs-Examdocx/
, estimating technique
True
False
9. Identify 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?"
The modification of any sealed bid or negotiated contract
The award of any negotiated contract (except for undefinitized actions such as letter
contracts)
All of these are correct
The award of a subcontractor at any tier, if the contractor and each higher-tier
subcontractor have been required to furnish certified cost or pricing data
10. Which sampling technique is used to focus on high-value items?
Stratified
Random
Cluster
Nonprobability
11. 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
Analyzing 20% of the items that are under $25,000
Analyzing 100% of the items
Analyzing 10% of the items selected randomly
12. Which of the following is a phase in the allocation cycle?
Interim Processing Phase
Adjustment on Rates Phase
Final Allocation Phase
Continuous Rate Application Phase
13. The purpose of an audit is to:
All of these are correct
Determine if the data is accurate and complete
Verify transaction legality
Determine the degree of compliance with established procedures
14. How may you request an audit?
All of these are correct
By telephone call
By mail
By e-mail
15. Which of the following is the best strategy to mitigate cost risk?
Conduct adequate market research prior to entering negotiations
Rely on the contractor’s proposed costs, supported by anecdotal data provided by the
contractor
Evaluate other contract actions awarded to the contractor you’re negotiating with
Establish a firm profit/fee percentage prior to entering negotiations
This study source was downloaded by 100000822442696 from CourseHero.com on 05-26-2022 00:01:51 GMT -05:00
https://www.coursehero.com/file/51760938/CLC-056-Analyzing-Contract-Costs-Examdocx/
1. Which of the following situations are considered exempt from the submission of Certified Cost
or Pricing Data?
Prices are set by law or regulation
Sole source acquisition of $3.5M FFP effort; price determined using cost analysis
Price may be determined fair and reasonable based on price analysis proposal
techniques
Non-commercial modification of a commercial item. Modification funded by DoD and
constitutes 5% of value of modification
2. When given a set of data that appears to contain outliers, which measure of central tendency
is most appropriate to use?
Median
Coefficient of Determination
Mean
Mode
3. What is an important driver to a successful negotiation?
Listen to understand
Ensure your position is heard
Maintain position of power
Obtain the lowest price for the government
4. 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
Compare proposed hours with all other contracts from the same contractor
Decrement labor hours estimate according to DCAA standard decrement
Use a stratified sampling techniques to evaluate contractor’s labor hour estimate
5. Which of the following situations would exempt a contract or subcontract from CAS
coverage?
The contract or subcontract is with a small business
Value of the contract or subcontract is $7.5M or less
The Economic Price Adjustment clause for a commercial item is based on an index
formulated with a contractor’s historical cost data
Sole source firm fixed price contract requiring submission of cost or pricing data
6. True or False: “Direct labor positions” share the same titles and pay levels.
True
False
7. Which situation below would you use improvement curve analysis to evaluating proposed
costs?
Assembly line with high proportion of manual labor
Fabrication plant that generates 100,000 units per month
Production facility specializing in “one-off” or unique item production
Fully automated assembly line
8. Using a direct comparison with the cost of a similar contract effort is an acceptable summary
This study source was downloaded by 100000822442696 from CourseHero.com on 05-26-2022 00:01:51 GMT -05:00
https://www.coursehero.com/file/51760938/CLC-056-Analyzing-Contract-Costs-Examdocx/
, estimating technique
True
False
9. Identify 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?"
The modification of any sealed bid or negotiated contract
The award of any negotiated contract (except for undefinitized actions such as letter
contracts)
All of these are correct
The award of a subcontractor at any tier, if the contractor and each higher-tier
subcontractor have been required to furnish certified cost or pricing data
10. Which sampling technique is used to focus on high-value items?
Stratified
Random
Cluster
Nonprobability
11. 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
Analyzing 20% of the items that are under $25,000
Analyzing 100% of the items
Analyzing 10% of the items selected randomly
12. Which of the following is a phase in the allocation cycle?
Interim Processing Phase
Adjustment on Rates Phase
Final Allocation Phase
Continuous Rate Application Phase
13. The purpose of an audit is to:
All of these are correct
Determine if the data is accurate and complete
Verify transaction legality
Determine the degree of compliance with established procedures
14. How may you request an audit?
All of these are correct
By telephone call
By mail
By e-mail
15. Which of the following is the best strategy to mitigate cost risk?
Conduct adequate market research prior to entering negotiations
Rely on the contractor’s proposed costs, supported by anecdotal data provided by the
contractor
Evaluate other contract actions awarded to the contractor you’re negotiating with
Establish a firm profit/fee percentage prior to entering negotiations
This study source was downloaded by 100000822442696 from CourseHero.com on 05-26-2022 00:01:51 GMT -05:00
https://www.coursehero.com/file/51760938/CLC-056-Analyzing-Contract-Costs-Examdocx/
