Government Procurement Certification Audit & Accountability 3

Question 1

Which Federal Acquisition Regulation (FAR) clause requires contractors to maintain adequate cost accounting standards compliance?

Accepted Answer

FAR 52.230-2

Answer

FAR 52.230-2 requires contractors subject to CAS to comply with all applicable cost accounting standards.

Question 2

A contractor charges costs for a company picnic to a government contract. This is an example of what type of unallowable cost?

Accepted Answer

Entertainment cost

Answer

Entertainment costs, including company picnics, are expressly unallowable under FAR 31.205-14 and cannot be charged to government contracts.

Question 3

What is the purpose of a 'closeout audit' in government contracting?

Accepted Answer

To reconcile all incurred costs and ensure final payment accuracy before contract closeout

Answer

A closeout audit reconciles final costs, verifies allowability, and ensures the government pays only what is owed before the contract is officially closed.

Question 4

Under FAR 15.403, cost or pricing data is NOT required when the acquisition is for:

Accepted Answer

Commercial items or when adequate price competition exists

Answer

FAR 15.403-1 exempts commercial items and acquisitions with adequate price competition from the requirement to submit certified cost or pricing data.

Question 5

What is a 'billing rate' versus a 'final indirect cost rate' in contractor accounting?

Accepted Answer

Billing rates are provisional rates used during contract performance; final rates are established after year-end audit

Answer

Billing rates are provisional rates allowing interim payments; final rates are established after the fiscal year ends and incurred cost audits are completed.

Government Procurement Certification Practice Test

Government Procurement Certification Practice Test

Government Procurement Certification Audit & Accountability 3