CPCM Cost and Price Analysis

Question 1

When is certified cost or pricing data required under the Truth in Negotiations Act (TINA)?

Accepted Answer

For negotiated contracts above the threshold (currently $2 million) unless an exception applies

Answer

For all government contracts regardless of value

Answer

Only for cost-reimbursement contracts

Answer

Only when a contractor is a large business

Question 2

Price analysis differs from cost analysis in that price analysis:

Accepted Answer

Compares offered prices to market benchmarks without examining underlying cost elements

Answer

Evaluates each cost element individually using the contractor's data

Answer

Requires certified cost or pricing data in all cases

Answer

Is only applicable to sole-source awards

Question 3

Which of the following costs is generally unallowable under FAR Part 31?

Accepted Answer

Interest and financing charges on contractor borrowing

Answer

Direct labor costs for work performed on the contract

Answer

Fringe benefits paid to employees working on government contracts

Answer

Depreciation on equipment used for contract performance

Question 4

The term 'allocable cost' under FAR 31.201-4 means the cost:

Accepted Answer

Is assignable to one or more cost objectives in accordance with the relative benefits received

Answer

Is reasonable in amount and nature

Answer

Is permitted by the contract or applicable law

Answer

Does not exceed the contract ceiling

Question 5

A should-cost analysis is performed by the government to:

Accepted Answer

Identify opportunities for the contractor to reduce costs through improved efficiency and management

Answer

Determine the contractor's historical profit margins

Answer

Calculate the fair market price for commercial off-the-shelf items

Answer

Assess whether a contractor meets small business size standards

Question 6

Defective pricing occurs when a contractor provides cost or pricing data that is:

Accepted Answer

Not current, accurate, or complete at the time of price agreement

Answer

Higher than the market average

Answer

Submitted without proper certification

Answer

Based on historical costs more than three years old