Practice Test Geeks(SSO) Ship Security Officer Practice Test
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Cost & Pricing Analysis Flashcards

7 cards from real SSO practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Cost & Pricing Analysis flashcards as text

  1. A port facility charges $500 per ship call for security screening. If a vessel makes 24 port calls annually, what is the annual security screening cost?

    Answer: $12,000

    $500 × 24 port calls = $12,000 annual security screening cost.

  2. When performing a cost-benefit analysis for an access control system, which benefit category is hardest to quantify?

    Answer: Deterrence effect on security incidents

    The deterrence effect—incidents that did not occur because of the system—is inherently difficult to measure since it involves hypothetical prevented losses.

  3. An SSO compares two alarm systems: System A costs $8,000 upfront with $500/year maintenance; System B costs $3,000 upfront with $1,500/year maintenance. After how many years does System A become more cost-effective?

    Answer: 5 years

    The crossover point occurs when 8,000 + 500x = 3,000 + 1,500x, solving to x = 5 years.

  4. Which document is the primary reference for establishing security-related budget line items in a Ship Security Plan?

    Answer: ISPS Code Part A, Section 9

    ISPS Code Part A, Section 9 specifies the required contents of the Ship Security Plan, which frames the budgetary scope for security measures.

  5. A company negotiates a 15% discount on bulk purchase of security equipment costing $20,000 at list price. What is the discounted purchase price?

    Answer: $17,000

    $20,000 × (1 − 0.15) = $20,000 × 0.85 = $17,000.

  6. In the context of ship security budgeting, what does 'life-cycle costing' primarily consider?

    Answer: Total costs from acquisition through disposal over the equipment's useful life

    Life-cycle costing encompasses all costs—acquisition, operation, maintenance, and disposal—across the full useful life of an asset.

  7. Which method is most appropriate for forecasting security training costs for the next fiscal year when historical data is available for the past five years?

    Answer: Trend analysis using historical data

    Trend analysis of multi-year historical data provides a statistically grounded forecast baseline, making it the most reliable method when past data is available.