SSO Cost & Pricing Analysis 3

Question 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?

Accepted Answer

$12,000

Answer

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

Question 2

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

Accepted Answer

Deterrence effect on security incidents

Answer

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

Question 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?

Accepted Answer

5 years

Answer

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

Question 4

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

Accepted Answer

ISPS Code Part A, Section 9

Answer

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

Question 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?

Accepted Answer

$17,000

Answer

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

(SSO) Ship Security Officer Practice Test

(SSO) Ship Security Officer Practice Test

SSO Cost & Pricing Analysis 3