CLC 056-Analyzing Contract Costs Exam-graded A+- WITH 55 Q&A.

CLC 056-Analyzing Contract Costs Exam-graded A+- WITH 55 Q&A Here is your test result.The dots represent the choices you have made. The highlighted questions are the questions you have missed. Remediation Accessed shows whether you accessed those links.'N' represents links not visited and 'Y' represents visited links. Back to Status page contains 55 Questions 1) Which of the following must be true to properly classify a cost as an “other direct cost”? [Recognize concerns that affect the other direct costs proposed] All of these The proposed cost benefits only the proposed contract work The offeror customarily treats similar costs as “other direct costs” under similar circumstances The contractor’s accounting system segregates “other direct costs” from similar indirect costs 2) Which of these statements below is correct regarding the criteria for classifying a special test equipment cost as an "other direct cost”? [Determine if the other direct costs are properly proposed] Engineered, designed, fabricated, or modified to meet specific contract needs and cannot be used for other contracts An item (e.g., fixture, pattern, or gauge) that is necessary in aiding the development of a unique product Engineered, designed, fabricated, or modified to meet not only the requirements of the current contract but also the requirements of all other contracts Developed and engineered by a subcontractor who is not currently working on another contract 3) Which of the following is an indirect cost pool? [Identify indirect cost pools and bases] General and Administrative Expenses Direct material Assembly labor Manufacturing labor 4) What two costs elements are required to calculate an indirect cost rate? [Identify the process of calculating indirect cost rates] Expense pool and Allocation base Overhead rate and Expense base Allocation Pool and Expense base Allocation base and Overhead rate 5) In which of the following phases does the contractor determine actual indirect cost rates? [Identify the cost allocation cycle] Final Allocation Phase Beginning Payment Phase Forward Pricing Phase Billing Phase 6) How is simple linear regression used? [Identify what regression analysis is] To make predictions about one dependent variable based on one independent variable To make predictions about one dependent variable based on more than one independent variable To calculate an estimate that demonstrates the most likely average value based on the data supplied To ensure contractor’s estimates properly capture the reduction of labor costs associated with repetitive production tasks 7) Which regression method would be used when there is more than one independent variable? [Identify the different regression analysis methods] Multivariate regression Simple linear regression Curvilinear regression Segmented regression 8) Identify the situation where you would use simple linear regression. [Identify contract pricing situations where simple regression analysis should be considered] Indirect cost rate analysis Labor classification analysis Facilities Capital Cost of Money calculation Profit objective calculation 9) Which variable is also considered the independent variable? [Identify the steps for using simple regression analysis] X Z R Y 10) Which of the following situations would the use of improvement curve analysis likely be useful in evaluating proposed costs? [Identify situations where improvement curve analysis would be appropriate] Assembly line repair of a turret assembly for an M1/A2 Abrams tank Assembly of two prototype aerial refueling airplanes Fabrication of a single jet engine frame assembly Fabrication of a new aircraft carrier 11) What is the best method for determining an improvement curve slope? [Identify the steps for using improvement curve analysis] Using actual historical data Using the median percentage from similar products Using established slopes from the Cost Estimator’s Reference Manual Using established slopes derived on recent procurements 12) Given the improvement curve data, calculate the cost objective for unit #8. Labor hours for unit #4: 120 hours Labor hours for unit #1: 160 hours Rate of improvement: 10% Improvement curve slope: 90% [Calculate an objective using improvement curve analysis] 108 12 16 144 13) Which of the following are factors used in calculating the Facilities Capital Cost of Money (FCCOM) amount? [Recognize elements affecting facilities capital cost of money] Proposal allocation base amounts Percentage of land, building, and profit distributions Company-wide allocation base amounts Division-wide allocation base amounts 14) Which of the following is a factor that affects profit/fee calculations? [Identify the factors affecting profit/fee analysis] Contract type Distribution of equipment percentage Magnitude of the contract in dollars Profit/fee percentage historically paid to contractor 15) When is the working capital adjustment used while calculating profit/fee? [Calculate a profit/fee using the appropriate structured approach] On all fixed price contracts with progress payments On all fixed price contracts On all fixed price contracts with financing On all fixed price contracts with performance based payments 16) 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? [– Develop a pre-negotiation position for profit or fee that is fair and reasonable.] Total costs Subtotal of costs Total price Direct and Indirect costs 17) What is the government’s primary objective in negotiations? [Identify factors that contribute to success in any negotiation] To agree on a price that is fair and reasonable to the government and the contractor To establish a profit/fee percentage that is in line with previous contracts with the particular contractor To agree on each element of cost with the contractor To ensure the agreed to price is the same, or lower, than the government’s objective 18) 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? [Identify key terms involved during a contract negotiation] Win-Win Win-Lose Lose-Lose Win-Lose-Win 19) What is an important driver to a successful negotiation? [Identify the importance of understanding cost drivers to ensure a successful outcome] Listen to understand Ensure your position is heard Maintain position of power Obtain the lowest price for the government 20) Which of the following is the best strategy to mitigate cost risk? [Identify strategies 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 21) Each Price Negotiation Memorandum must contain which of the following? [Identify the key characteristics of a price negotiation memorandum] Statement that the price is fair and reasonable Statement that the FAR was consistently followed Signature of the Contract Specialist Signature of the Legal Counsel 22) 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?” [Identify cost analysis terms and techniques used when developing a pre-negotiation position] All of these are correct The award of any negotiated contract (except for undefinitized actions such as letter contracts 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 The modification of any sealed bid or negotiated contract 23) What is Certified Cost or Pricing Data subsequently found to have been inaccurate, incomplete, or noncurrent known as? [Identify terms associated with the Truth-in-Negotiations Act (TINA)] Defective Pricing CICA Violation Data other than cost or pricing data Exception to certified cost or pricing data 24) Which of the following situations are considered exempt from the submission of Certified Cost or Pricing Data? [Determine if an exception to the Truth-in-Negotiations Act applies] 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 25) When the Contracting Officer has relied on certified cost or pricing data in the price determination, which of the following statements is true? [Identify the remedy to the Government in the event that a contractor submits defective data] They must certify that they relied on that certified cost or pricing data in the Price Negotiation Memorandum They must have had legal counsel review the cost or pricing data prior to negotiations They are not required to certify that they relied on that cost or pricing data in the Price Negotiation Memorandum They acknowledge their reliance on that cost or pricing data by signing the Price Negotiation Memorandum CLC 056-Analyzing Contract Costs Exam-graded A+- WITH 55 Q&A Here is your test result.The dots represent the choices you have made. The highlighted questions are the questions you have missed. Remediation Accessed shows whether you accessed those links.'N' represents links not visited and 'Y' represents visited links. Back to Status page contains 55 Questions 1) Which of the following must be true to properly classify a cost as an “other direct cost”? [Recognize concerns that affect the other direct costs proposed] All of these The proposed cost benefits only the proposed contract work The offeror customarily treats similar costs as “other direct costs” under similar circumstances The contractor’s accounting system segregates “other direct costs” from similar indirect costs 2) Which of these statements below is correct regarding the criteria for classifying a special test equipment cost as an "other direct cost”? [Determine if the other direct costs are properly proposed] Engineered, designed, fabricated, or modified to meet specific contract needs and cannot be used for other contracts An item (e.g., fixture, pattern, or gauge) that is necessary in aiding the development of a unique product Engineered, designed, fabricated, or modified to meet not only the requirements of the current contract but also the requirements of all other contracts Developed and engineered by a subcontractor who is not currently working on another contract 3) Which of the following is an indirect cost pool? [Identify indirect cost pools and bases] General and Administrative Expenses Direct material Assembly labor Manufacturing labor 4) What two costs elements are required to calculate an indirect cost rate? [Identify the process of calculating indirect cost rates] Expense pool and Allocation base Overhead rate and Expense base Allocation Pool and Expense base Allocation base and Overhead rate 5) In which of the following phases does the contractor determine actual indirect cost rates? [Identify the cost allocation cycle] Final Allocation Phase Beginning Payment Phase Forward Pricing Phase Billing Phase 6) How is simple linear regression used? [Identify what regression analysis is] To make predictions about one dependent variable based on one independent variable To make predictions about one dependent variable based on more than one independent variable To calculate an estimate that demonstrates the most likely average value based on the data supplied To ensure contractor’s estimates properly capture the reduction of labor costs associated with repetitive production tasks 7) Which regression method would be used when there is more than one independent variable? [Identify the different regression analysis methods] Multivariate regression Simple linear regression Curvilinear regression Segmented regression 8) Identify the situation where you would use simple linear regression. [Identify contract pricing situations where simple regression analysis should be considered] Indirect cost rate analysis Labor classification analysis Facilities Capital Cost of Money calculation Profit objective calculation 9) Which variable is also considered the independent variable? [Identify the steps for using simple regression analysis] X Z R Y 10) Which of the following situations would the use of improvement curve analysis likely be useful in evaluating proposed costs? [Identify situations where improvement curve analysis would be appropriate] Assembly line repair of a turret assembly for an M1/A2 Abrams tank Assembly of two prototype aerial refueling airplanes Fabrication of a single jet engine frame assembly Fabrication of a new aircraft carrier 11) What is the best method for determining an improvement curve slope? [Identify the steps for using improvement curve analysis] Using actual historical data Using the median percentage from similar products Using established slopes from the Cost Estimator’s Reference Manual Using established slopes derived on recent procurements 12) Given the improvement curve data, calculate the cost objective for unit #8. Labor hours for unit #4: 120 hours Labor hours for unit #1: 160 hours Rate of improvement: 10% Improvement curve slope: 90% [Calculate an objective using improvement curve analysis] 108 12 16 144 13) Which of the following are factors used in calculating the Facilities Capital Cost of Money (FCCOM) amount? [Recognize elements affecting facilities capital cost of money] Proposal allocation base amounts Percentage of land, building, and profit distributions Company-wide allocation base amounts Division-wide allocation base amounts 14) Which of the following is a factor that affects profit/fee calculations? [Identify the factors affecting profit/fee analysis] Contract type Distribution of equipment percentage Magnitude of the contract in dollars Profit/fee percentage historically paid to contractor 15) When is the working capital adjustment used while calculating profit/fee? [Calculate a profit/fee using the appropriate structured approach] On all fixed price contracts with progress payments On all fixed price contracts On all fixed price contracts with financing On all fixed price contracts with performance based payments 16) 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? [– Develop a pre-negotiation position for profit or fee that is fair and reasonable.] Total costs Subtotal of costs Total price Direct and Indirect costs 17) What is the government’s primary objective in negotiations? [Identify factors that contribute to success in any negotiation] To agree on a price that is fair and reasonable to the government and the contractor To establish a profit/fee percentage that is in line with previous contracts with the particular contractor To agree on each element of cost with the contractor To ensure the agreed to price is the same, or lower, than the government’s objective 18) 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? [Identify key terms involved during a contract negotiation] Win-Win Win-Lose Lose-Lose Win-Lose-Win 19) What is an important driver to a successful negotiation? [Identify the importance of understanding cost drivers to ensure a successful outcome] Listen to understand Ensure your position is heard Maintain position of power Obtain the lowest price for the government 20) Which of the following is the best strategy to mitigate cost risk? [Identify strategies 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 21) Each Price Negotiation Memorandum must contain which of the following? [Identify the key characteristics of a price negotiation memorandum] Statement that the price is fair and reasonable Statement that the FAR was consistently followed Signature of the Contract Specialist Signature of the Legal Counsel 22) 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?” [Identify cost analysis terms and techniques used when developing a pre-negotiation position] All of these are correct The award of any negotiated contract (except for undefinitized actions such as letter contracts 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 The modification of any sealed bid or negotiated contract 23) What is Certified Cost or Pricing Data subsequently found to have been inaccurate, incomplete, or noncurrent known as? [Identify terms associated with the Truth-in-Negotiations Act (TINA)] Defective Pricing CICA Violation Data other than cost or pricing data Exception to certified cost or pricing data 24) Which of the following situations are considered exempt from the submission of Certified Cost or Pricing Data? [Determine if an exception to the Truth-in-Negotiations Act applies] 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 25) When the Contracting Officer has relied on certified cost or pricing data in the price determination, which of the following statements is true? [Identify the remedy to the Government in the event that a contractor submits defective data] They must certify that they relied on that certified cost or pricing data in the Price Negotiation Memorandum They must have had legal counsel review the cost or pricing data prior to negotiations They are not required to certify that they relied on that cost or pricing data in the Price Negotiation Memorandum They acknowledge their reliance on that cost or pricing data by signing the Price Negotiation Memorandum