CPCM Cost and Price Analysis 3

Question 1

Which of the following best describes a 'make-or-buy' analysis?

Accepted Answer

An analysis determining whether to produce items in-house or procure them from subcontractors

Answer

A contractor decision on whether to hire more staff or use overtime

Answer

The government's decision between sole-source and competitive procurement

Answer

A cost comparison between cost-type and fixed-price contracts

Question 2

Catalog price analysis is most appropriate when:

Accepted Answer

A vendor offers standard commercial items at published prices available to the general public

Answer

The contractor has no established pricing history

Answer

The government needs certified cost or pricing data

Answer

The contract is for services with no defined deliverables

Question 3

The concept of 'cost realism' analysis is used in source selection to:

Accepted Answer

Verify that the offeror understands the work and can perform at the proposed cost

Answer

Determine whether the offeror has adequate financial reserves

Answer

Confirm that proposed costs comply with FAR cost principles

Answer

Assess whether the offeror's overhead rates are below industry average

Question 4

G&A (General and Administrative) expenses are typically allocated to contracts using which base?

Accepted Answer

Total cost input or cost of sales

Answer

Direct labor hours

Answer

Number of contract employees

Answer

Square footage of office space used

Question 5

Under TINA, 'cost or pricing data' is defined as all facts that:

Accepted Answer

A prudent buyer or seller would reasonably expect to significantly affect price negotiations

Answer

Were known to the contractor's estimating team at the time of award

Answer

Appear in the contractor's audited financial statements for the prior fiscal year

Answer

Were disclosed to competitors during the source selection process

Question 6

Which of the following is an example of a direct cost as defined under FAR 31.202?

Accepted Answer

Salary of an engineer working exclusively on a specific contract

Answer

Company-wide IT infrastructure costs

Answer

Depreciation on corporate headquarters building

Answer

HR department salaries allocated across all contracts