According to FAR 15.4, which of the following is one of the two most preferred price analysis techniques? - ANSWER Comparison of proposed prices received in response to the solicitation *
How may you request an audit?
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According to FAR 15.4, which of the following is one of the two most preferred price analysis techniques? - ANSWER Comparison of proposed prices received in response to the solicitation *
How may you request an audit? - ANSWER All of these are correct
A "questioned cost" is one that has not yet been evaluated. - ANSWER False *
True or False: "Direct labor positions" share the same titles and pay levels. - ANSWER False *
For which of the following procurements would you require certified cost or pricing data? - ANSWER An offer of $800,000 for an item from the only known source of an electronic system unique to Government requirements.
How is simple linear regression used? - ANSWER To make predictions about one dependent variable based on one independent variable *
Which of the following is a phase in the allocation cycle? - ANSWER Final Allocation Phase
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? - ANSWER Selecting the appropriate contract type
Developing a price negotiation objective for labor costs *
Evaluating the bill of materials
Assigning the risk factors for profit calculations
The purpose of an audit is to: - ANSWER Verify transaction legality
Determine if the data is accurate and complete
All of these are correct *
Determine the degree of compliance with established procedures
Who has the authority to waive CAS applicability for a particular contract? - ANSWER The Agency Head *
A cost is allowable if it is: - ANSWER Reasonable, allocable and compliant with CAS/GAAP *
What is an important driver to a successful negotiation? - ANSWER Listen to understand *
Which regression method assumes a linear relationship between the dependent and independent variables? - ANSWER Simple linear regression *
What is the single most important decision the Contracting Officer must make to mitigate cost risk? - ANSWER Selection of contract type *
When a contract is subject to CAS, the Contracting Officer may not award a contract until a written adequacy determination has been made by the cognizant Federal agency official. - ANSWER True
Each Price Negotiation Memorandum must contain which one of the following? - ANSWER Statement that the price is fair and reasonable *
Select the item below that would likely be categorized as a Direct Material Cost. - ANSWER The purchase of 104 motor assemblies needed to manufacture vehicles *
Using a direct comparison with the cost of a similar contract effort is an acceptable summary estimating technique. - ANSWER True *
Which of the following would be a proper method of determining the reasonableness of a contractor's proposed labor hour estimate? - ANSWER -Compare proposed hours with a Government should-cost estimate *
A Disclosure Statement is required when Contractor receives a CAS covered contract or a subcontract valued at $60 million in a cost accounting period. - ANSWER True *
Identify the ultimate objective of performing proposal analysis. - ANSWER To ensure the final agreed to price is fair and reasonable *
Identify the correct definition of "Cost Analysis". - ANSWER The review and evaluation of individual cost elements and proposed profit/fee in and offeror's proposal *
True or False: The national average mortgage rate is used in calculating Facilities Capital Cost of Money (FCCOM) - ANSWER False *
Which of the following is an effective use of stratified sampling? - ANSWER Analyzing the items that make up 80% of the total material cost and 10% of the remaining items
When is it most appropriate to document or model a contractor's proposal? - ANSWER When the value, importance, and complexity warrant the modeling *
When is the working capital adjustment used while calculating profit/fee? - ANSWER On all fixed price contracts with progress payments *
The cost accounting systems that are used by a contractor manufacturing a number of identical units for multiple customers are: - ANSWER -Generally Accepted Accounting Practice
-Cost Accounting Standards
True or False: Special test equipment that is engineered, designed, fabricated, or modified to meet specific contract needs and cannot be used for other contracts can be categorized as "other direct costs". - ANSWER True *
When the Contracting Officer has relied on certified cost or pricing data in the price determination, which of the following statements is true? - ANSWER They must certify that they relied on that certified cost or pricing data in the Price Negotiation Memorandum *
The first step when conducting stratified sampling is to identify the population of items to be sampled. - ANSWER True *
What is the most common base for calculating the General and Administrative (G&A) overhead rate? - ANSWER Total of all costs *
A measure of the amount of dispersion, or distance, between data points is the: - ANSWER Standard Deviation *
Which of the following is the preferred method for determining if a proposed cost is reasonable? - ANSWER Comparing with other competitive proposals received in response to the solicitation *
Which situation below would you use improvement curve analysis to evaluate proposed costs? - ANSWER Assembly line with high proportion of manual labor *
Which of the following situations are considered exempt from the submission of Certified Cost or Pricing Data? - ANSWER Prices are set by law or regulation. *
When calculating the confidence interval, the sample standard deviation is used to derive the standard error of the mean. - ANSWER True
Identify the response below that correctly describes the term "Data other than certified cost or pricing data". - ANSWER Pricing data, cost data, and judgmental information that is not certified, but is used to determine a fair and reasonable price
Which sampling technique is used to focus on high-value items? - ANSWER Stratified *
Given the following data, calculate the standard deviation. Sample data: 13, 12, 9, 15, 11, 16, 17, 8, 12, 7, 12 - ANSWER 3.19 *
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? - ANSWER Mileage of all similar cars
Weight of all similar cars
Color of all similar cars
True of False: After completing the five-step Least-Best-Squares-Fit (LBSF) process when developing a regression equation, you must evaluate the "goodness" of the fit and the statistical significance. - ANSWER True
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? - ANSWER Win-Win *
What is the best method for determining an improvement curve slope? - ANSWER -Using actual historical data *
The moving average inventory pricing method is being used when a company recalculates inventory prices every time that a new item is added to inventory. - ANSWER True *
What two costs elements are required to calculate an indirect cost rate? - ANSWER Expense Pool and Allocation base *
What is the government's primary objective in negotiations? - ANSWER -To establish 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 agree on a price that is fair and reasonable to the government and contractor
Identify the primary issue you should consider when analyzing direct labor categories in a contractor's proposal. - ANSWER -Is the proposed skill mix identical to the independent government estimate?
-Does the contractor compensate their employees for unpaid overtime?
-Is the proposed skill mix reasonable for the work required?
Which of the following must be true to properly classify a cost as an "other direct cost"? - ANSWER The proposed cost benefits only the proposed contract work *
Which of the following labor classifications most likely involves fashioning parts from raw materials or purchased materials? - ANSWER Fabrication
Which of these situations warrants the use of a round-table estimate? - ANSWER A contract is for a unique item, and there is no historical data available (i.e., detailed drawings, bill of materials, firm specifications).
When is it most appropriate to document or model a contractor's proposal? - ANSWER When the value, importance, and complexity warrant the modeling
Which of the following are factors used in calculating the Facilities Capital Cost of Money (FCCOM) amount? - ANSWER -Proposal allocation base amounts
-Division-wide allocation base amounts
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? - ANSWER Total costs
A cost is ALLOCABLE if it: - ANSWER -Is distributed equally among the benefiting contracts
-Is incurred specifically for the contract being considered
-Results in an inequitable allocation costs.
Given the following improvement curve data, calculate the cost objective for unit #64. Labor hours for unit #32: 42,000 hours Labor hours for unit #1: 79,000 hours Rate of improvement: 20% Improvement curve slope: 80% - ANSWER 62,200
33,600 *
8,400
155,800
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? - ANSWER -No, material must be used and charged specifically to the benefiting contract *
Which one of the choices below is the correct definition of other direct costs? - ANSWER -Costs that can be identified with a specific contract and which the offeror does not treat as a direct material cost or a direct labor cost *
A contractor incurs a cost which is determined to be unallowable. Other costs which would not have been incurred had the unallowable cost not been incurred are also unallowable. - ANSWER True *
Which variable is also considered the independent variable? - ANSWER R
X *
Y
Z
True or False: Simple linear regression is most appropriate when there is more than one independent variable. - ANSWER True
Which of the following labor categories in a contractor's proposal for Grounds Maintenance would raise concern? - ANSWER Millwright *
Identify when cost analysis would be required. - ANSWER When certified cost or pricing data are required *
True or False: "Position class" is a grouping of all positions that share the same title and pay level. - ANSWER True
Which of the following type of costs would most likely be categorized as both direct costs and indirect costs, depending on the circumstance? - ANSWER Travel Expense *
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? - ANSWER -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. *
What is Certified Cost or Pricing Data subsequently found to have been inaccurate, incomplete, or noncurrent known as? - ANSWER Defective Pricing *
Which contract clause is inserted in contracts that are subject to full CAS coverage? - ANSWER -FAR 52.230-2 Cost Accounting Standards *
When material prices may vary significantly from current inventory values, which estimating method should be used? - ANSWER Current Supplier Quotes *
Which of the following situations would the use of improvement curve analysis likely be useful in evaluating proposed costs? - ANSWER -Assembly line repair of a turret assembly for an M1/A2 Abrams tank *
Identify the correct definition of "Cost Realism Analysis". - ANSWER The process of independently reviewing and evaluating specific elements of cost, in part to determine whether they reflect a clear understanding of the requirement
Which of the following is a factor that most directly affects profit/fee calculations? - ANSWER Contract type *
The "questioned cost" is one that has not yet been evaluated. - ANSWER False *
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?" - ANSWER -All of these are correct
-The award of any negotiated contract (except for undefinitized actions such as letter contracts)
-The modification of any sealed bid or negotiated contract
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