CLC56 EXAM Analyzing Contract Costs Exam Questions And Answers( Rated A)

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DAU Page lofli Analyzing Contract Costs Exam ~ Here is your test result.The dots represent the choices you have made. i The highlighted questions are the questions you have missed. ~ Remediation A... ccessed 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 proposedi [Remediation Accessed :N] OAll of these o The proposed cost benefits only the proposed contract work OThe 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 j 2) True or False: Special test equipment that is engineered, designed, fabricated, or modified to ‘V meet specific contract needs and cannot be used for other contracts can be categorized as “other direct costs.” [Determine if the other direct costs are properly proposedi ®True 0 False j 3) What is the most common base for calculating the General and Administrative (G&A) overhead ‘V rate? [Identify indirect cost pools and basesi ® Total of all costs 0 Total price o Other direct costs 0 Total management cost v 4) What two costs elements are required to calculate an indirect cost rate? [Identify the process of calculating indirect cost ratesi [Remediation Accessed :NJ o Expense pool and Allocation base OOverhead rate and Expense base QAllocation Pool and Expense base ®Allocation base and Overhead rate https ://leam.dau.milIAtlas2/htmL/testengine/TestGeneration/test review.j sp 2/16/2018 DAU Page2ofll j 5) In which of the following phases does the contractor determine actual indirect cost rates? ~ identify the cost allocation cyclel ® Final Allocation Phase o Beginning Payment Phase C Proposal Phase OBilling Phase 6) Which of the following situations would you most likely employ linear regression techniques? ildentify what regression analysis isi [Remediation Accessed :N) o Estimating the cost of a new armored vehicle based on historical costs of similar procurements C Analyzing the accuracy of a should­cost analysis generated by a DCMA Industrial Engineer ® Calculating the mean cost of one individual unit in a production run of 10,000 units o Comparing the proposed costs of a new computer database with the historical costs of all recent contracts in your office j 7) Which regression method assumes a linear relationship between the dependent and “~ independent variables? Ildentifv the different repression analysis methodsi ®Simple linear regression o Local regression o Segmented regression o Curvilinear regression 8) Identify the situation where you would use simple linear regression. lidentify contract pricing situations where simple repression analysis should be consideredi [Remediation Accessed :N] o Direct cost analysis ® Labor classification analysis o Facilities Capital Cost of Money calculation OProfit objective calculation ~ 9) True or FaIse~ After completing the five­step Least­Best­Squares­Fit (LBSF) process when developing a regression equation, you must evaluate the “goodness” of the fit and the statistical significance. fldentify the steps for using simple repression analysisi [Remediation Accessed :N] ®False OTrue ~ 10) Which of the following situations would the use of improvement curve analysis likely be “ useful in evaluating proposed costs? fldentify situations where improvement curve analysis would be appropriatel [Remediation Accessed :N] QAssembly line repair of a turret assembly for an MIIA2 Abrams tank OAssembly of two new, prototype aerial refueling airplanes https ://leam.dau.mil/Atlas2/html/testengine/TestGenerationltest_review.j sp 2/16/2018 DAU Page3ofll 0 Fabrication of a single jet engine frame assembly ®Fabrication of a new aircraft carrier j 11) What is the best method for determining an improvement curve slope? rldentifv the steps for ‘V using improvement curve analysisi ® Using actual historical data o Using the median percentage from similar products o Using established slopes from the Cost Estimator’s Reference Manual 0 Using averages derived from recent procurements j 12) Given the following improvement curve data, calculate the cost objective for unit #64. Labor ‘V hours for unit #32: 42,000 hours Labor hours for unit #1: 79,000 hours Rate of improvement: 20% Improvement curve slope: 80% [Calculate an obiective using improvement curve analysisi ® 33,600 062,200 0155,800 08,400 x 13) True or False: The U.S. Treasury Rate is used in calculating FacilitIes Capital Cost of Money (FCCOM) [Recognize elements affecting facilities capital cost of moneyl [Remediation Accessed :N] C True ®False j 14) Which of the following is a factor that most directly affects profitlfee calculations? [Identify the ‘V factors affecting profitlfee analysisi ® Contract type 0 Distribution of equipment percentage 0 Magnitude of the contract in dollars 0 Profitlfee percentage historically paid to contractor ~ 15) When is the working capital adjustment used while calculating profitlfee? [Calculate a profitifee ‘V using the appropriate structured approachl ® On all fixed price contracts with progress payments COn all fixed price contracts OOn all fixed price contracts with financing OOn all cost reimbursement contracts ~ 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 pre­negotiation position for profit or fee that is fair and reasonable.1 [Remediation Accessed :N] https ://leam.dau.mil/Atlas2/html/testengine/TestGeneration/test review.j sp 2/16/2018 DAU Pagc4ofll 0 Total costs ® Direct costs o Total price o Indirect costs j 17) Which of the following factors is critical to a successful negotiation? fldentifv factors that ~ contribute to success in any negotiationi ® Effectively prepare, plan, and communicate 0 Avoid being too friendly, in case the negotiations get difficult o Set your opening position extremely low to give room to negotiate OThe negotiation should be competitive j 18) What is the negotiation term that reflects each party emphasizing the long term effects and ‘V benefits as well as both parties defining their interests to be achieved in conjunction with the outcome? Fldentifv key terms involved during a contract negotiationi ®Win­Win o Win­Lose o Lose­Lose o Win­Lose­Win 19) What is an important driver to a successful negotiation? (Identify the importance of understanding cost drivers to ensure a successful outcomel [Remediation Accessed :N] 0 Listen to understand ® Ensure your position is heard o Maintain position of power o Obtain the lowest price for the government ~ 20) What is the single most important decision the Contracting Officer must make to mitigate —~ cost risk? [Identify strategies to mitigate cost riski [Remediation Accessed :N] o Selection of contract type ® The profitlfee percentage objective Orhe selection of a the awardee OWhether to solicit to large business, or set aside for small business only 21) Each Price Negotiation Memorandum must contain which one of the following? [Identify the key characteristics of a price negotiation memorandumi [Remediation Accessed :N] 0 Statement that the price is fair and reasonable ® Statement that the FAR was consistently followed o Signature of the Contract Specialist https ://learn.dau.mil/Atlas2/html/testengine/TestGeneration/test_review.jsp 2/16/2018 DAU Page5ofll OSignature of the Legal Counsel ~ 22) According to FAR 15.4, which of the following is one of the two most preferred price analysis techniques? [Identify cost analysis terms and techniques used when developing a pre negotiation positioni [Remediation Accessed :N] 0 Comparison of proposed prices received in response to the solicitation o Comparison with competitive published price lists Olise of parametric estimating methods to highlight significant inconsistencies ® Comparison of proposed prices with Independent Government Estimates (IGE) j 23) Identify the response below that correctly describes the term “Data other than certified cost or “V pricing data.” [Identify terms associated with the Truth­in­Negotiations Act (TINA)1 ®Pricing data, cost data, and judgmental information that is not certified, but is used to determine a fair and reasonable price OAll facts that prudent buyers and sellers would reasonably expect to affect price negotiations significantly and are factual, not judgmental, and are verifiable through certification o Pricing data and cost data that demonstrate an imbalance in unit pricing even though the overall proposed price appears to be fair and reasonable o Pricing data, cost data, and judgmental information that is not certified and therefore cannot be relied upon to determine a fair and reasonable price ~ 24) Which ofthe following situations are considered exempt from the submission of Certified Cost or Pricing Data? [Determine if an exception to the Truth­in­Negotiations Act appliesi [Remediation Accessed :N] o Prices are set by law or regulation OSole source acquisition of $35 million FFP effort; price determined using cost analysis o Price may be determined fair and reasonable based on price analysis proposal techniques ® Non­commercial modification of a commercial item. Modification funded by DoD and constitutes 5% of value of modification j 25) When the Contracting Officer has relied on certified cost or pricing data in the price ‘V determination, which of the following statements is true? [Identify the remedy to the Government in the event that a contractor submits defective datal ­ ® They must certify that they relied on that certified cost or pricing data in the Price Negotiation Memorandum 0 They must have had legal counsel review the cost or pricing data prior to negotiations 0 They are not required to certify that they relied on that cost or pricing data in the Price Negotiation Memorandum 0 They must have the agency’s Small Business Administration representative concur if the contract is with a small business j 26) Which of the following situations would exempt a contract or subcontract from GAS coverage? “~“ [Identify the exemptions to Cost Accounting Standards (CAS) coveragel ®The contract or subcontract is with a small business https://learn.dau.mil/Atlas2/html/testengine/TestGeneration/testreview.jsp 2/16/2018 DAU Page6ofll OValue of the contract or subcontract is $10 million or less OThe Economic Price Adjustment clause for a commercial item is based on an index formulated with a contractor’s historical cost data OSole source firm fixed price contract requiring submission of cost or pricing data ~g 27) 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. IDetermine the level of GAS coverage that appliesi [Remediation Accessed :N] ®False OTrue j 28) What is the definition of a Disclosure Statement? fldentifv the purpose of a Disclosure ~ Statementi ®Written description of a contractor’s cost accounting practices and procedures QA statement submitted by the contractor identifying the basis of estimate for their profit rate 0 Confidential document identifying all potential conflicts of interest that may arise as a result of a particular contract award o Certified record of all internal contractor rates and factors ~ 29) 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. IDetermine if a àost is allowablel ® True OFalse x 30) 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? IDetermine if a cost is allocablel [Remediation Accessed :N] o No,. material must be used and charged specifically to the benefiting contract o Yes, because all the material is to be used for government contracts 0 Yes, due to the efficiency gained by procuring all the material at one time ® No, raw material is always charged as an overhead expense 6 31) Which of the following is the preferred method for determining if a proposed cost is ‘V reasonable? Ioetermine if a cost is reasonablel ®Comparing with other competitive proposals received in response to the solicitation O Performing a quantitative analysis of the proposed cost using multivariate regression O Evaluating the conditions surrounding the procurement. In cases of National Emergency or Contingency, any cost within 50% of the IGE is considered reasonable O Ensuring the proposed cost is no more than 25% greater than the last known procurement of the item https://learn.dau.mil/Atlas2/htmlltestengine/TestGeneratiom/test review.j sp 2/16/2018 DAU Page7ofll j 32) The pre­negotiation objective establishes the government’s initial negotiation position and ‘~ assists the contracting officer in determining a fair and reasonable price. How does proposal modeling assist the contracting officer in achieving these objectives? (Choose all that apply) [Identify the rationale for modeling a contractor’s cost proposall ~ Facilitates update of pre­negotiation position upon receipt of updates from the contractor (e.g. updated quotes, subcontractor submissions, change in rates) ~ Allows real time calculation of offers and counteroffers during negotiations ~?i Validates the contractor’s computations ~ Validates the contractor’s proposal summary with detailed back­up data worksheets 33) 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. [Identify the required cost elements in FAR Table 15­21 [Remediation Accessed :N] ®False 0 True ~ 34) The cost accounting systems that are used by a contractor manufacturing a number of ~ identical units for multiple customers are: (Identify the two commonly used systems for cost accountinqi [Remediation Accessed :N] ~i Job Order Accounting U Cost Accounting Standards U Generally Accepted Accounting Practice U Process Cost System 35) The purpose of an audit is to: [Identify situations when an audit should be requested~ ®AlI of these are correct o Determine if the data is accurate and complete o Determine the degree of compliance with established procedures 0 Verify transaction legality )C 36) How may you request an audit? (Identify the process for requesting an audit and the key players involved with the processi [Remediation Accessed :N] OAll of these are correct ® By telephone call OBy mail o By e­mail j 37) Select the item below that would be categorized as an Indirect Material cost. [Identify the ~ different types of material costsl ®Washers and seals used in the assembly process for all of the manufacturer’s products https://leam.dau.milIAtlas2/html/testengine/TestGenerationltestreview.j sp 2/16/2018 DAU Page8ofll o Marketing costs for the sale of a particular item OThe purchase of 104 motor assemblies needed to manufacture vehicles o Frames that are fabricated for each individual unit 38) Using a direct comparison with the cost of a similar contract effort is an acceptable summary estimating technique. FDetermine the fairness and reasonableness of summary level cost estimatesi [Remediation Accessed :N] 0 True ®False 39) Identify when cost analysis would be required. [Identify the fundamentals of cost analysisi ®When certified cost or pricing data are required 0 Whenever a price proposal is received o To evaluate profit or fee o For all proposals exceeding the micropurchase threshold 40) Identify the correct definition of “Cost Realism Analysis.” [Distinguish between cost analysis. price analysis, and cost realism analysisi ®The process of independently reviewing and evaluating specific elements of cost, in part to determine whether they reflect a clear understanding of the requirement OThe review of a proposal to ensure the contractor has properly documented adherence to their approved estimating system guidelines OThe review and evaluation of individual randomly selected cost elements, excluding profit, in a proposal OThe process of examining and evaluating a proposal to ensureall elements of cost are in line with the Independent Government Estimate 41) A “questioned cost” is one that has not yet been evaluated. [Identify the various types of auditsi ®False C True ~j 42) Which sampling technique is used to focus on high­value items? [Determine the ‘~‘ appropriateness of the offeror’s cost estimating methodologyl ® Stratified 0 Random C Cluster O Nonprobability j 43) You are preparing to negotiate a service task for routine maintenance of Government ~‘V 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 https://Iearn.dau.mil/Atlas2/htmlltestengine/TestGenerationitestreview.jsp 2/16/2018 DAU Page9ofll use this [Identify contract situations where statistical analysis is an appropriate tool for developing a pre negotiation objectivel ® Developing a price negotiation objective for labor costs OSelecting the appropriate contract type o Evaluating the bill of materials OAssigning the risk factors for profit calculations ~ 44) Which of the following is an effective use of stratified sampling? [Establish the fairness and reasonableness of detailed quantity estimatesi [Remediation Accessed :N] OAnalyzing the items that make up 80% of the total material cost and 10% of the remaining items 0 Analyzing 20% of the items that are under $25,000 ®Analyzing 100% of the items OAnalyzing 10% of the items selected randomly 4 45) 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. [Evaluate the reasonableness of unit cost estimatesi 0 False ®True 46) A measure of the amount of dispersion, or distance, between data points is the: [Differentiate between the measures of central tendency and the methods for measuring dispersioni [Remediation Accessed :N] o Standard Deviation ®Absolute dispersion o Relative dispersion o Coefficient of variation •~ 47) The mean, median and mode are typically the same when a sample exhibits significant ~ dispersion. [Identify the process for establishing a confidence intervall [Remediation Accessed :N] 0 False ®True x 48) The first step when conducting stratified sampling is to identify the population of items to be sampled. [Identify the process for using stratified samplingi [Remediation Accessed :N] ®False OTrue 4 49) Given the following data, calculate the standard deviation. Sample data: 13, 12,9, 15, 11, 16,17, ‘V 8, 12,7, 12 [Calculate a pre­neciotiation obiective using the appropriate statistical analysis techniguesi ®319 https://learn.dau.milJAtlas2/htmlltestengine/TestGeneration]testreviewjsp 2/16/2018 DAU PagelOofli 03.os 04.12 04.21 ~ø 50) Which of the following would be a proper method of determining the reasonableness of a r’~ contractor’s proposed labor hour estimate? Relate proposed labor hours to work requirements to determine reasonableness of direct labor costsl [Remediation Accessed :N] 0 Compare proposed hours with a Government should­cost estimate 0 Compare proposed hours on all other contracts from the same contractor ® Decrement labor hours estimate according to DCAA standard decrement 0 Request that the contractor provide a should­cost estimate ~ 51) Which of these situations warrants the use of a round­table estimate? rExamine proposed labor ~ rates to determine a fair and reasonable pre­neqotiation positioni QA contract is for a service that has been provided in the past, and offerors will need to submit data detailing the time it will take for each worker to complete a specific task. OA contract is for a service that has been provided in the past, and offerors will need to submit data detailing the time it will take for each worker to complete a specitic task. OA contract is for $900,000 and there have been several similar contracts performed in the past. Usually, offerors will use comparison estimates for this type of work. ®A contract is for a unique item, and there is no historical data available (i.e., detailed drawings, bill of materials, firm specifications). 52) Which of the following labor categories in a contractor’s proposal for Grounds Maintenance would raise concern? lidentifv proposed direct labor mixi [Remediation Accessed :N] 0 Millwright 0 Maintenance technician ® Project manager C Quality control manager j 53) True or False: “Position class” is a grouping of all positions that share the same title and pay ‘~ level. Ildentify labor classificationsi ®True 0 False j 54) Which one of the choices below is the correct definition of other direct costs? Fldentify types of ~ other direct costsl ®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 0 Costs that will benefit the proposed contract as well as other contracts https://learn.dau.milIAtlas2/htmlltestengine/TestGeneration/test review.] sp 2/16/2018 DAU Pagellofil o Costs that have already been charged as direct material costs and direct labor costs for the same task o Costs that can be identified with specific multiple contracts and which the offeror treats as a direct material cost but not a direct labor cost j 55) The statutory authority for requiring certified cost or pricing data relies primarily on ~ Department of Defense contract policy. [Select the appropriate authority for requiring an offeror to provide cost or pricing datal OTrue ®False Back to Status page~ https://leam.dau.mil/Atlas2/html/testengine/TestGeneration/test_review.j sp 2/16/2018 ‘I­ DAU Page lofIl Analyzing Contract Costs Exam ~ Here is your test result.The dots represent the choices you have made. i 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 type of costs would most likely be categorized as both direct ~ costs and indirect costs, depending on the circumstance? rRecognize concerns that affect the other direct costs proposedi [Remediation Accessed :N] OTravel Expense ® Direct Material OG&A Overhead o Utilities 2) 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.” rDetermine if the other direct costs are properly proposedi [Remediation Accessed ~N] 0 True ®False 3) Which of the following is an indirect cost pool? [Identify indirect cost pools and baseS) ® General and Administrative Expenses o Direct material OAssembly labor OManufacturing labor j 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 O Overhead rate and Expense base OAllocation Pool and Expense base OAllocation base and Overhead rate https ://leam.dau.mil/Atlas2/htmlltestengine/TestGenerationltest review.] sp 2/16/2018 DAU Page2ofll 4 5) Which of the following is a phase in the allocation cycle? [Identify the cost allocation cyclel ® Final Allocation Phase o Interim Processing Phase OAdjustmenton Rates Phase o Continuous Rate Application Phase 6) Which of the following situations would you most likely employ linear regression techniques? [Identify what regression analysis isi [Remediation Accessed :N] o Estimating the cost of a new armored vehicle based on historical costs of similar procurements ®Analyzing the accuracy of a should­cost analysis generated by a DCMA Industrial Engineer o Calculating the mean cost of one individual unit in a production run of 10,000 units OComparing the proposed costs of a new computer database with the historical costs of all recent contracts in your office 7) True or False: Simple linear regression is most appropriate when there is more than one independent variable. [Identify the different regression analysis methodsi [Remediation Accessed :N] OTrue ®False ~ 8) When using simple linear regression to analyze the estimated price for a used car, which of the following independent variables would most likely result in the most accurate estimating equation? [Identify contract pricing situations where simple regression analysis should be consideredi ® Mileage of all similar cars o Interior color of all similar cars o Body style of all similar cars o Exterior color of all similar cars j 9) True or False: After completing the five­step Least­Best­Squares­Fit (LBSF) process when ~ developing a regression equation, you must evaluate the “goodness” of the fit and the statistical significance. [Identify the steps for using simple regression analysisi ®True 0 False _j 10) Which situation below would you use improvement curve analysis to evaluate proposed costs? ~ [Identify situations where improvement curve analysis would be aporopriatel ®Assembly line with high proportion of manual labor 0 Fully automated assembly line 0 Production facility specializing in “one­off” or unique item production OFabrication plant that generates a standard 100,000 units per month https://leam.dau.mil/Atlas2/htmlltestengine/TestGeneration/test_review.jsp 2/16/2018 DAU Page3ofll ~ 11) What is the first step in conducting improvement curve analysis? Ildentify the steps for using improvement curve analysis] [Remediation Accessed :N] o Collect the historical data ®Calculate the rate of improvement 0 Calculate the slope of the curve o Determine the Theoretical value of unit #1 j 12) 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% rCalculate an obiective using improvement curve analysisi ®33,600 062,200 0155,800 08,400 ~ 13) Which of the following are factors used in calculating the Facilities Capital Cost of Money ~ (FCCOM) amount? fRecoanize elements affecting facilities capital cost of moneyl [Remediation Accessed :N] 0 Proposal allocation base amounts ® Percentage of profit distributions 0 Industry­wide allocation base amounts 0 Division­wide allocation base amounts j 14) True or False: The national average mortgage rate is used in calculating Facilities Capital Cost ‘~ of Money (FCCOM) fldentify the factors affecting profitlfee analysisi 0 True ®False .~ 15) When calculating profit/fee, how is the “performance risk (composite)” calculated? rCalculate a profitlfee using the appropriate structured approachi [Remediation Accessed :N] OBy multiplying the assigned weight by the assigned value of the technical and the managementlcost control element, and adding the two together 0 By adding the assigned weights and assigned values of the technical and managementlcost control elements o By multiplying the assigned values of the technical and managementlcost control elements ® By adding the assigned weight and assigned value of the technical and managementlcost control elements and dividing the sum by 2 j 16) What would be the maximum fee you might negotiate for a cost plus fixed fee contract for V advisory and assistance services contract? f—Develop a pre­negotiation position for profit or fee that is fair and reasonable.] ®10% https://leam.dau.mil/Atlas2/html/testengine/TestGenerationltest review.] sp 2/16/2018 DAU Page4ofll 01% 06% 015% 17) What is the government’s primary objective in negotiations? [Identify factors that contribute to success in any negotiationi ®To agree on a price that is fair and reasonable to the government and the contractor OTo establish a profitlfee percentage that is in line with previous contracts with the particular contractor 0 To agree on each element of cost with the contractor OTo ensure the agreed to price is the same, or lower, than the government’s objective j 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? fidentify key terms involved during a contract negotiationi ®Win­Win 0 Win­Lose 0 Lose­Lose 0 Win­Lose­Win j~ 19) What is an important driver to a successful negotiation? [Identify the importance of .‘~ understanding cost drivers to ensure a successful outcomel ®Listen to understand CEnsure your position is heard 0 Maintain position of power 0 Obtain the lowest price for the government ~* 20) Which of the following is the best strategy to mitigate cost risk? rldentifv strategies to mitigate cost riskI [Remediation Accessed :N] OConduct adequate market research prior to entering negotiations 0 Rely on the contractor’s proposed costs, supported by anecdotal data provided by the contractor 0 Evaluate other contract actions awarded to the contractor you’re negotiating with ® Establish a firm profitlfee percentage prior to entering negotiations ~ 21) Each Price Negotiation Memorandum must contain which one of the following? [Identify the ‘~ key characteristics of a price negotiation memorandumi ® Statement that the price is fair and reasonable 0 Statement that the FAR was consistently followed 0 Signature of the Contract Specialist https://leam.dau.mil/Atlas2/htmlltestengine/TestGenerationltest_review.jsp 2/16/2018 DAU Page5ofll Osignature of the Legal Counsel j 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 pre­neqotiation position] ®All of these are correct o The award of any negotiated contract (except for undefinitized actions such as letter contracts o The award of a subcontract at any tier, if the contractor and each higher­tier subcontractor have been required to furnish certified cost or pricing data o The modification of any sealed bid or negotiated contract j 23) Identify the response below that correctly describes the term “Data other than certified cost or ‘~ pricing data.” [Identify terms associated with the Truth­in­Negotiations Act (TINAH ® Pricing data, cost data, and judgmental information that is not certified, but is used to determine a fair and reasonable price o All facts that prudent buyers and sellers would reasonably expect to affect price negotiations significantly and are factual, not judgmental, and are verifiable through certification o Pricing data and cost data that demonstrate an imbalance in unit pricing even though the overall proposed price appears to be fair and reasonable o Pricing data, cost data, and judgmental information that is not certified and therefore cannot be relied upon to determine a fair and reasonable price j 24) Which of the following is an exception to the requirement to provide certified cost or pricing ~ data? [Determine if an exception to the Truth­in­Negotiations Act appliesi ®Adequate price competition o Repetitive buy of same or similar item where certified cost or pricing data had been provided in past 0 When the contracting officer determines the prices agreed upon are based on identical forecasting methods utilized in the Independent Government Estimate (IGE) 0 Proposal is less than $10 million j 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 0 They must have had legal counsel review the cost or pricing data prior to negotiations 0 They are not required to certify that they relied on that cost or pricing data in the Price Negotiation Memorandum OThey must have the agency’s Small Business Administration representative concur if the contract is with a small business y 26) Who has the authority to waive CAS applicability for a particular contract? [Identify the exemptions to Cost Accounting Standards (CAS) coverage] [Remediation Accessed :N] https:/Jlearn.dau.mil/Atlas2/htmlltestengine/TestGeneration/testreview.j sp 2/16/2018 DAU Page6ofll OThe Agency Head OA level above the contracting officer ®The Contracting Officer’s Representative 0 Agency Legal Counsel j 27) Which contract clause is inserted in contracts that are subject to full CAS coverage? ‘V [Determine the level of CAS coverage that appliesi ® FAR 52,230­2 Cost Accounting Standards o FAR 52.230­5 Cost Accounting Standards — Educational Institutions o FAR 62.230­3 Disclosure and Consistency of Cost Accounting Practices 052.230­4 — Disclosure and Consistency of Cost Accounting Practices­­Foreign Concerns j 28) What is the definition of a Disclosure Statement? [Identify the purpose of a Disclosure ‘V Statemenfi ®Written description of a contractor’s cost accounting practices and procedures OA statement submitted by the contractor identifying the basis of estimate for their profit rate 0 Confidential document identifying all potential conflicts of interest that may arise as a result of a particular contract award 0 Certified record of all internal contractor rates and factors 29) A contractor incurs a cost which is determined to be unallowable. Other costs which would not ‘f have been incurred had the unallowable cost not been incurred are also unallowable. [Determine if a cost is allowablel ®True 0 False 30) 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? [Determine if a cost is allocablel [Remediation Accessed :N] 0 No, material must be used and charged specifically to the benefiting contract ®Yes, because all the material is to be used for government contracts OYes, due to the efficiency gained by procuring all the material at one time 0 No, raw material is always charged as an overhead expense ~j 31) Which of the following is the preferred method for determining if a proposed cost is ‘V reasonable? [Determine if a cost is reasonablel ® Comparing with other competitive proposals received in response to the solicitation OPerforming a quantitative analysis of the proposed cost using multivariate regression 0 Evaluating the conditions surrounding the procurement. In cases of National Emergency or Contingency, any cost within 50% of the IGE is considered reasonable https://leam.dau.milIAtlas2/html/testengine/TestGeneration/test review.j sp 2/16/2018 DAU Page7ofll 0 Ensuring the proposed cost is no more than 25% greater than the last known procurement of the item j 32) The pre­negotiation objective establishes the government’s initial negotiation position and “~ assists the contracting officer in determining a fair and reasonable price. How does proposal modeling assist the contracting officer in achieving these objectives? (Choose all that apply) rldentify the rationale for modeling a contractor’s cost proposall ~ Validates the contractor’s computations ~ Allows real time calculation of offers and counteroffers during negotiations ~?1 Validates the contractor’s proposal summary with detailed back­up data worksheets ~ Facilitates update of pre­negotiation position upon receipt of updates from the contractor (e.g. updated quotes, subcontractor submissions, change in rates) j 33) When certified cost or pricing data is required, data showing that adequate price competition ‘V~ for acquisitions exceeding the TINA threshold was obtained is required as part of the contractor’s proposal. rldentifv the required cost elements in FAR Table 15­21 ®True 0 False j 34) The cost accounting systems that are used by a contractor manufacturing a number of ~ identical units for multiple customers are: rldentifv the two commonly used systems for cost accountincfl I~1 Job Order Accounting L Generally Accepted Accounting Practice C Cost Accounting Standards ~ Process Cost System 35) The purpose of an audit is to: rldentify situations when an audit should be requestedi ®All of these are correct o Determine if the data is accurate and complete o Determine the degree of compliance with established procedures 0 Verify transaction legality ~j 36) How may you request an audit? Ildentifv the process for requesting an audit and the key players ~ involved with the processi ®All of these are correct OBy telephone call OBy mail 0 By e­mail j 37) Select the item below that would be categorized as an Indirect Material cost. [Identify the ‘V different types of material costsl https://leam.dau.mil/Atlas2/htmL’testengine/TestGenerationltestreview.j sp 2/16/2018 DAU Page8ofll ®Washers and seals used in the assembly process for all of the manufacturer’s products OMarketing costs for the sale of a particular item OThe purchase of 104 motor assemblies needed to manufacture vehicles o Frames that are fabricated for each individual unit j 38) Using a direct comparison with the cost of a similar contract effort is an acceptable summary ‘V estimating technique. [Determine the fairness and reasonableness of summary level cost estimatesi 0 False ®True 4, 39) Identify when cost analysis would be required. [Identify the fundamentals of cost analysisi ®When certified cost or pricing data are required OWhenever a price proposal is received OTo evaluate profit or fee OFor all proposals exceeding the micropurchase threshold 40) Identify the correct definition of “Cost Analysis.”. [Distinguish between cost analysis, price analysis, and cost realism analysisi ®The review and evaluation of individual cost elements and proposed profitlfee in an offeror’s proposal OFactual, not judgmental, and verifiable details of a cost proposal o Independent review of vendor quotes, long term agreements, and overhead costs in a proposal 0 Analysis of “should cost” estimates compared to proposed costs 41) A “questioned cost” is one that has not yet been evaluated. [Identify the various types of auditsi ®False OTrue ~ 42) Which sampling technique is used to focus on high­value items? [Determine the ‘V appropriateness of the offeror’s cost estimating methodologyl ® Stratified 0 Random OCluster o Nonprobability ~ 43) You are preparing to negotiate a service task for routine maintenance of Government ‘V 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 [Identify contract situations where statistical analysis is an appropriate tool for deyeloping a orenegotiation obiectivel https://leam.dau.mil/Atlas2/htmlltestengine/TestGenerationltest review.j sp 2/16/2018 DAU Page9ofll ® Developing a price negotiation objective for labor costs OSelecting the appropriate contract type OEvaluating the bill of materials 0 Assigning the risk factors for profit calculations ~ 44) which of the following is an effective use of stratified sampling? [Establish the fairness and reasonableness of detailed quantity estimatesi [Remediation Accessed :N] 0 Analyzing the items that make up 80% of the total material cost and 10% of the remaining items 0 Analyzing 20% of the items that are under $25,000 OAnalyzing 100% of the items ®Analyzing 10% of the items selected randomly j 45) The moving average inventory pricing method is being used when a company recalculates ‘V inventory prices every time that a new item is added to inventory. [Evaluate the reasonableness of unit cost estimatesi ®True OFalse j 46) A measure of the amount of dispersion, or distance, between data points is the: [Differentiate ‘V between the measures of central tendency and the methods for measuring dispersionl ®Standard Deviation 0 Absolute dispersion o Relative dispersion o Coefficient of variation j 47) The mean, median and mode are typically the same when a sample exhibits significant ‘V dispersion. [Identify the process for establishing a confidence intervafl 0 True ®False ,4 48) The first step when conducting stratified sampling is to identify the population of items to be ‘V sampled. [Identify the process for using stratified samplingi ®True 0 False j 49) Given the following data, calculate the standard deviation. Sample data: 13, 12,9, 15,1.1, 16, 17, “V 8, 12, 7, 12 [Calculate a pro­negotiation obiective using the appropriate statistical analysis techniguesi ®3.19 03.05 04.12 https ://learn.dau.mil/Atlas2/htmlltestengine/TestGenerationltest_review.j sp 2/16/2018 DAU PagelOofli 04.21 n .~ 50) Which of the following would be a proper method of determining the reasonableness of a contractor’s proposed labor hour estimate? rRelate proposed labor hours to work réquirèmentsto determine reasonableness of direct labor costs] [Remediation Accessed ~N] OCompare proposed hours with a Government should­cost estimate ® Compare proposed hours on all other contracts from the same contractor o Decrement labor hours estimate according to DCAA standard decrement 0 Request that the contractor provide a should­cost estimate j 51) True or False: A contractor estimates labor rates using weighted averages. As a contracting ‘V officer, you are NOT required to consider any labor­management agreement when developing your labor rate objective. [Examine proposed labor rates to determine a fair and reasonable gre­negotiation position] OTrue ®False ~ 52) Which of the following labor categories in a contractor’s proposal for Grounds Maintenance ‘V would raise concern? [Identify proposed direct labor mix] ® Millwright 0 Maintenance technician 0 Project manager o Quality control manager j 53) Which of the following labor classifications most likely involves fashioning parts from raw ‘V materials or purchased materials? [Identify labor classifications] ® Fabrication 0 Assembly 0 Quality Control 0 Engineering j 54) Which one of the choices below is the correct definition of other direct costs? [Identify types of ‘V other direct costs] ® 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 0 Costs that will benefit the proposed contract as well as other contracts 0 Costs that have already been charged as direct material costs and direct labor costs for the same task 0 Costs that can be identified with specific multiple contracts and which the offeror treats as a direct material cost but not a direct labor cost ~ 55) For which of the following procurements would you require certified cost or pricing data? ‘V [Select the appropriate authority for requiring an offeror to provide cost or pricing data] https://learn.dau.mil/Atlas2/htmlitestengine/Testoeneration/test_reviewjsp 2/16/2018 DAU Page 11 ofli ®An offer of $800,000 for an item from the only known source of an electronic system unique to Government requirements OA single­source offer for $96,000 for Research and Development Qp. commercial item contract modification which indicates that $398,000 of work will be removed by modification and $390,000 of work will be added. QAn offer of $525,000 for a catalog­priced commercial item Back to Status page~ https://leam.dau.mil/Atlas2/htmlltestengine/TestGeneration/test_review.jsp 2/16/2018 I­ ~AU Page lof3 Analyzing Contract Costs Exam ~ 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 12 Questions j 1) Which of the following must be true to properly classify a cost as an “other direct cost”? ‘V [Recognize concerns that affect the other direct costs proposedi ®All of these OThe proposed cost benefits only the proposed contract work OThe offeror customarily treats similar costs as “other direct costs” under similar circumstances OThe contractor’s accounting system segregates “other direct costs” from similar indirect costs ­ j 2) 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? [Determine if the other direct costs are properly proposedi ® 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. OThe travel costs are for several senior engineers to attend a conference on the latest development in manufacturing. OThe travel costs are for the corporate vice president to attend the annual robotic association meeting. o The travel costs are for warehouse personnel to attend OSHA training on how to safely handle hazardous materials. 3) How is simple linear regression used? [Identify what regression analysis isi [Remediation Accessed :N] OTo make predictions about one dependent variable based on one independent variable o 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 OTo ensure contractor’s estimates properly capture the reduction of labor costs associated with repetitive production tasks https://leam.dau.mil/Atlas2/html/testengine/TestGenerationltestreview.j sp 2/16/2018 DAU Page2of3 j 4) Which regression method assumes a linear relationship between the dependent and ~‘ independent variables? rldentifv the different regression analysis methodsi ®Simple linear regression 0 Local regression o Segmented regression ­ OCurvilinear regression j 5) What is the best method for determining an improvement curve slope? [Identify the steps for “!t’ using improvement curve analysisi ®Using actual historical data o Using the median percentage from similar products o Using established slopes from the Cost Estimator’s Reference Manual o Using averages derived from recent procurements j 6) True or False: The U.S. Treasury Rate is used in calculating Facilities Capital Cost of Money ‘~ (FCCOM) [Recognize elements affecting facilities capital cost of moneyl 0 False ®True j 7) When is the working capital adjustment used while calculating profitlfee? [Calculate a orofitlfee ~ using the appropriate structured approachi ® On all fixed price contracts with progress payments o On all fixed price contracts o On all fixed price contracts with financing OOn all cost reimbursement contracts v 8) What is the single most important decision the Contracting Officer must make to mitigate cost risk? fidentify strategies to mitigate cost riski [Remediation Accessed :N] o Selection of contract type o The profitlfee percentage objective ® The selection of a the awardee 0 Whether to solicit to large business, or set aside for small business only j 9) Which of the following situations would exempt a contract or subcontract from CAS coverage? ~ fldentify the exemptions to Cost Accounting Standards (CAS) coveragel ®The contract or subcontract is with a small business OValue of the contract or subcontract is $10 million or less Ome Economic Price Adjustment clause for a commercial item is based on an index formulated with a contractor’s historical cost data OSole source firm fixed price contract requiring submission of cost or pricing data httns ://leam.dau.mil/Atlas2/htmlltestengine/TestGenerationltest review.i sp 2/16/2018 DAU Page3of3 10) A cost is ALLOCAIBE if it: [Determine if a cost is allocablel [Remediation Accessed :N] o Is incurred specifically for the contract being considered ® Is reasonable and allowable o Is distributed equally among the benefiting contracts o Results in an inequitable allocation of costs. ~ 11) Which of the following is an effective use of stratified sampling? [Establish the fairness and reasonableness of detailed quantity estimatesi [Remediation Accessed :N] 0 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 QAnalyzing 100% of the items OAnalyzing 10% of the items selected randomly ~ 12) Which of the following would be a proper method of determining the reasonableness of a ~ contractor’s proposed labor hour estimate? [Relate proposed labor hours to work requirements to determine reasonableness of direct labor costsl [Remediation Accessed :N] o Compare proposed hours with a Government should­cost estimate 0 Compare proposed hours on all other contracts from the same contractor o Decrement labor hours estimate according to DCAA standard decrement ® Request that the contractor provide a should­cost estimate Back to Status page~ https://leam.dau.mil/Atlas2/htmlltestengine/TestGeneration/testrevicw.j sp 2/16/2018 DAU Pagelof6 Analyzing Contract Costs Exam ~ Here is your test result.The dots represent the choices you have made. i 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 25 Questions ~ 1) Which of the following type of costs would most likely be categorized as both direct ~ costs and indirect costs, depending on the circumstance? rRecognize concerns that affect the other direct costs proposedi [Remediation Accessed :N] OTravel Expense ~~cLDirecLMatefia~ ® G&A Overhead o Utilities x 2) Identify the formula for calculating indirect cost rates. Ildentify the process of calculating indirect cost ratesi [Remediation Accessed :N] o Expense Pool divided by Allocation Base ®Allocation Base divided by Expense Pool 0 Overhead Rate multiplied by Allocation Base 0 Allocation Base multiplied by Expense Pool 3) How is simple linear regression used? [Identify what regression analysis ill ®To make predictions about one dependent variable based on one independent variable OTo make predictions about one dependent variable based on more than one independent variable ­ OTo calculate an estimate that demonstrates the most likely average value based on the data supplied OTo ensure contractor’s estimates properly capture the reduction of labor costs associated with repetitive production tasks j 4) When using simple linear regression to analyze the estimated price for a used car, which of the “V following independent variables would most likely result in the most accurate estimating equation? Ildentify contract pricing situations where simple regression analysis should be consideredi ® Mileage of all similar cars https://leam.dau.mil/Atlas2thtml!testengine/TestGeneration/testreview.jsp 2/16/2018 DAU Page2pf6 o Interior color of all similar cars o Body style of all similar cars o Exterior color of all similar cars ~ 5) Which variable is also considered the independent variable? [Identify the steps for using simple “~ regression analysisi Oz OR OY j 6) Which situation below would you use improvement curve analysis to evaluate proposed costs? ~ [Identify situations where improvement curve analysis would be appropriatel ®Assembly line with high proportion of manual labor 0 Fully automated assembly line O Production facility specializing in “one­off” or unique item production OFabrication plant that generatesastandard 100,000 units per month 2~ 7) Which of the following are factors used in calculating the Facilities Capital Cost of Money —~ (FCCOM) amount? [Recognize elements affecting facilities capital cost of moneyl [Remediation Accessed :N] OProposal allocation base amounts ­ ® Percentage of profit distributions Olndustry­wide allocation base amounts ODivision­wide allocation base amounts ~ 8) What would be the maximum fee you might negotiate for a cost plus fixed fee contract for “ advisory and assistance services contract? [— Develop a pre­negotiation position for profit or fee that is fair and reasonable.j ®10% 01% 06% 015% ~j 9) What is an important driver to a successful negotiation? [Identify the importance of understanding ~ cost drivers to ensure a successful outcomel ® Listen to understand 0 Ensure your position is heard 0 Maintain position of power OObtain the lowest price for the government https://learn.dau.mil/Atlas2/html/testengine/TestGenerationitest review.i sp 2/16/2018 DAU Page 3 of 6 10) Which of the following is the best strategy to mitigate cost risk? [Identify strategies to mitigate cost riski [Remediation Accessed :N] o Conduct adequate market research prior to entering negotiations o Rely on the contractor’s proposed costs, supported by anecdotal data provided by the contractor o Evaluate other contract actions awarded to the contractor you’re negotiating with ®Establish a firm profitlfee percentage prior to entering negotiations ~ 11) Each Price Negotiation Memorandum must contain which one of the following? [Identify the ~ key characteristics of a price negotiation memorandumi ® Statement that the price is fair and reasonable 0 Statement that the FAR was consistently followed o Signature of the Contract Specialist OSignature of the Legal Counsel j 12) 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 pre­negotiation Dositioni ®All of these are correct o The award of any negotiated contract (except for undefinitized actions such as letter contracts OThe award of a subcontract at any tier, if the contractor and each higher­tier subcontractor have been required to furnish certified cost or pricing data OThe modification of any sealed bid or negotiated contract j 13) Which of the following is an exception to the requirement to provide certified cost or pricing ~ data? [Determine if an exception to the Truth­in­Negotiations Act appliesi ®Adequate price competition o Repetitive buy of same or similar item where certified cost or pricing data had been provided in past OWhen the contracting officer determines the prices agreed upon are based on identical forecasting methods utilized in the Independent Government Estimate (IGE) 0 Proposal is less than $10 million j 14) Which contract clause is inserted in contracts that are subject to full CAS coverage? ~‘V [Determine the level of GAS coverage that appliesi ® FAR 52.230­2 Cost Accounting Standards 0 FAR 52.230­5 Cost Accounting Standards — Educational Institutions 0 FAR 52.230­3 Disclosure and Consistency of Cost Accounting Practices 052.2304 — Disclosure and Consistency of Cost Accounting Practices­­Foreign Concerns https://learn.dau.mil/Atlas2/htmlltestengine/TestGeneration/testreviewj sp 2/16/2018 DAU Page4of6 15) A cost is ALLOCALBE if it: [Determine if a cost is allocablel [Remediation Accessed :N] o Is incurred ecifically for the contract being considered o Is distributed equally among the benefiting contracts ® Results in an inequitable allocation of costs. ~v 16) When is it most appropriate to document or model a contractor’s proposal? [Identify the required cost elements in FAR Table 15­21 [Remediation Accessed :N] 0 When the value, importance, and complexity warrant the modeling ®When analyzing multiple commercial supply proposals OAnytime you award a competitive contract OWhenever there are values in excess of $1 million included in the proposal j 17) The two cost accounting systems that are used by a contractor manufacturing a number of “ specifically identifiable physical units and whose costs are normally accumulated under separate orders is: [Identify the two commonly used systems for cost accountinqi L~1 Job Order Accounting C Cost Accounting Standards LI Generally Accepted Accounting Practice ~ Process Cost System ~j 18) How may you request an audit? [Identify the process for requesting an audit and the key players ~ involved with the processi ®All of these are correct o By telephone call OBy mail OBy e­mail ~j 19) Which of the following is an example of a cost estimating technique that would be used when ~ producing a summary cost estimate? [Determine the fairness and reasonableness of summary level cost estimatesi ®Cost Estimating Relationship (CER) 0 Stratified sampling o Bill of Materials analysis OVendor Quotes comparison 20) Which of the following is an effective use of stratified sampling? [Establish the fairness and reasonableness of detailed quantity estimatesi ®Analyzing the items that make up 80% of the total material cost and 10% of the remaining items httvs ://leam.dau.mil/Atlas2/html/testenaine/TestGeneration/test review.i SD 2/16/201 8 DAU Page5of6 OAnalyzing 20% of the items that are under $25,000 OAnalyzing 100% of the items OAnalyzing 10% of the items selected randomly ~. 21) When given a set of data that appears to contain outliers, which measure of central tendency is most appropriate to use? rDifferentiate between the measures of central tendency and the methods for measuring dispersioni [Remediation Accessed :N) o Median o Coefficient of Determination OMean ®Mode j 22) Which three elements are necessary for calculating a confidence interval? [Identify the process ‘~ for establishing a confidence intervall ­ ®Sample mean, t­value, standard error of the mean 0 Mean, median, and mode OVariance, t­value, sample mean OSample mean, median, and mode ~ 23) How do you apply the decrement factor if you find that the contractor appears to have overestimated the proposal price? [Identify the process for using stratified samplingi [Remediation Accessed :N] o Multiply the decrement factor by the total cost of all sampled items ® Subtract the decrement factor from all sampled items o Increase the government objective by the decrement factor o Decrease the government objective by the decrement factor standard deviation of the sample ~ 24) Which of the following would be a proper method of determining the reasonableness of a ~ contractor’s proposed labor hour estimate? [Relate proposed labor hours to work requirements to determine reasonableness of direct labor costsl ® Compare proposed hours with a Government should­cost estimate o Compare proposed hours on all other contracts from the same contractor o Decrement labor hours estimate according to DCAA standard decrement o Request that the contractor provide a should­cost estimate j 25) Identify the primary issue you should consider when analyzing direct labor categories in a ~ contractor’s proposal. [Identify proposed direct labor mixi ® Is the proposed skill mix reasonable for the work required? o Does the contractor currently employ workers in all proposed labor categories? o Is the proposed skill mix identical to the independent government estimate? https://leam.dau.milJAtIas2/htmlltestengine/TestGenerationltestreview.jsp 2/16/2018 DAU Page6of6 0 Does the contractor compensate their employees for unpaid overtime? Back to Status pagej https://leam.dau.milJAtlas2/htmlltestengine/TestGenerationJtest review.j so 2/16/2018 DAU Page 1 of 2 Analyzing Contract Costs Exam ~ 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 5 Questions 1) Which of the following situations would you most likely employ linear regression techniques? [Identify what regression analysis 151 [Remediation Accessed :N] o Estimating the cost of a new armored vehicle based on historical costs of similar procurements 0 Analyzing the accuracy of a should­cost analysis generated by a DCMA Industrial Engineer 0 Calculating the mean cost of one individual unit in a production run of 10,000 units ® Comparing the proposed costs of a new computer database with the historical costs of all recent contracts in your office j 2) What is the single most important decision the Contracting Officer must make to mitigate cost ~ risk? [Identify strategies to mitigate cost riski ® Selection of contract type o The profitlfee percentage objective OThe selection of a the awardee 0 Whether to solicit to large business, or set aside for small business only x 3) A cost is ALLOCAL.BE if it: [Determine if a cost is allocablel [Remediation Accessed :NJ QIs incurred specifically for the contract being considered o Is reasonable and allowable ® Is distributed equally among the benefiting contracts o Results in an inequitable allocation of costs. j 4) Which of the following is an effective use of stratified sampling? [Establish the fairness and “s” reasonableness of detailed quantity estimatesi ®Analyzing the items that make up 80% of the total material cost and 10% of the remaining items o Analyzing 20% of the items that are under $25,000 OAnalyzing 100% of the items https://leam.dau.milIAtlas2/htnilltestengine/TestGenerationltestreview.j sp 2/16/2018 DAU Page2of2 OAnalyzing 10% of the items selected randomly ~ 5) Which of the following would be a proper method of determining the reasonableness of a ~‘ contractor’s proposed labor hour estimate? Relate proposed labor hours to work requirements to determine reasonableness of direct labor costsl [Remediation Accessed :N] OCompare proposed hours with a Government should­cost estimate OCompare proposed hours on all other contracts from the same contractor ® Decrement labor hours estimate according to DCAA standard decrement 0 Request that the contractor provide a should­cost estimate Back to Status pagej httos://1eam.dau.mi1JAt1as2/htm1Jtesten~ine/TestGeneratioti/test review.i si, 2/16/201 R DAU Pagelof2 Analyzing Contract Costs Exam ~ 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. Sack to Status page contains 8 Questions j 1) Which of the following type of costs would most likely be categorized as both direct costs ~V and indirect costs, depending on the circumstance? fRecognize concerns that affect the other direct costs proposed! ®Travel Expense o Direct Material OG&A Overhead o Utilities j 2) What two costs elements are required to calculate an indirect cost rate? rldentitv the process of ‘~‘ calculating indirect cost ratesi ® Expense pool and Allocation base o Overhead rate and Expense base o Allocation Pool and Expense base 0 Allocation base and Overhead rate ~ 3) How is the Treasury Rate applied in calculating Facilities Capital Cost of Money (FCCOM)? rRecognize elements affecting facilities capital cost of moneyl [Remediation Accessed :N] o Divided into the FCCOM total amount OTreasury rate is not used in calculating FCCOM ®Multiplied by the FCCOM total amount o Divided by the Weighted Guidelines profit objective j 4) What is the single most important decision the Contracting Officer must make to mitigate cost ~ risk? fldentify strategies to mitigate cost riski ® Selection of contract type o The profitlfee percentage objective OThe selection of a the awardee Owhether to solicit to large business, or set aside for small business only https://learn.dau.mil/Atlas2/htmlltestengine/TestGeneration/test_review.jsp 2/16/2018 DAU Page2of2 I 5) 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? IDetermine if a cost is allocablel [Remediation Accessed :N] o No, material must be used and charged specifically to the benefiting contract o Yes, because all the material is to be used for government contracts ®Yes, due to the efficiency gained by procuring all the material at one time o No, raw material is always charged as an overhead expense j 6) When is it most appropriate to document or model a contractor’s proposal? [Identify the ~yr required cost elements in FAR Table 15­21 ®When the value, importance, and complexity warrant the modeling OWhen analyzing multiple commercial supply proposals OAnytime you award a competitive contract OWhenever there are values in excess of SI million included in the proposal ~C 7) A measure of the amount of dispersion, or distance, between data points is the: [Differentiate •‘V between the measures of.central tendency and the methods for measuring dispersioni ®Standard Deviation 0 Absolute dispersion o Relative dispersion o Coefficient of variation 8) 110w do you apply the decrement factor if you find that the contractor appears to have overestimated the proposal price? [Identify the process for using stratified samplinqi [Remediation Accessed :N] o Multiply the decrement factor by the total cost of all sampled items o Subtract the decrement factor from all sampled items o Increase the government objective by the decrement factor ® Decrease the government objective by the decrement factor standard deviation of the sample Back to Status page~ httvs://leam.dau.mil/Atlas2/html/testeiwine/TestGenérationJtest review.i si, 2/1 6/2fl I R DAU Page 1 of 1 Analyzing Contract Costs Exam ~ 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 3 Questions j 1) True or False: The U.S. Treasury Rate is used in calculating Facilities Capital Cost of Money ‘V (FCCOM) FRecognize elements affecting facilities capital cost of money] ®True 0 False 2) A cost is ALLOCALBE if it: iDetermine if a cost is allocable] ® Is incurred specifically for the contract being considered o Is reasonable and allowable Ols distributed equally among the benefiting contracts 0 Results in an inequitable allocation of costs. j 3) The first step when conducting stratified sampling is to identify the population of items to be ‘V sampled. fldentifv the process for using stratified sampling] ® True 0 False Back to Status pagef https://learn.dau.miL’Atlas2/htmlltestengine/TestGeneration/test_reviewj sp 2/16/2018 S ­__7• [Show More]

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