Question 12: refers to the development of cost estimates by using cost estimating relationships. (a) Parametric cost estimating (b) Round table estimating (c) Estimating by comparison (d) Detailed estimating

Question 14: Which of the following statements about price index construction is untrue? (a) Price index numbers are price relatives, usually expressed as percentages (b) The selection of a base period is usually an arbitrary process (c) In constructing price index numbers, it is important to express a price in dollars for measure of quantity (d) A single simple index number will often suffice for pricing purposes

Question 18: Which of the following statements about direct materials is untrue? (a) The contractor may use a statistical approach, a grass roots approach, or some combination of both to estimate material costs (b) A final product must contain a basic minimum quantity of materials equal to the quantity required by the specifications (c) Scrap is avoidable (d) Raw materials are estimated by comparison with similar pieces whenever possible (e) None of the above

Question 19: is a method used to estimate and display direct material costs. (a) Statistical estimate (b) A priced bill of materials that purports to develop the average unit material costs for the procurement (c) A projection of the average material cost per unit on a preceding lot or contract (d) All of the above

Question 20: A is a quantity of parts that a contractor receives and pays for at one time. (a) Purchase lot (b) Production lot (c) Neither of the above

Question 21: Which of the following engineering efforts are nonrecurring? (a) Initial design development (b) Writing procedures (c) Reviewing schedules and manufacturing methods (d) Organizing work stations (e) None of the above

Question 22: The danger of the approach to analyzing an engineering estimate is that it tends to perpetuate cost levels without regard for whether the contributing expenditures were reasonable and necessary. (a) Task (b) Ratio of support (c) Availability (d) Learning curve (e) Production engineering ratio

Question 23: Which of the following statements concerning complexity is untrue? (a) The complexity factor should be applied to labor estimates developed from labor standards (b) Complexity factor can be considered a factor applied to labor estimates (c) Product complexity differs from product newness only in degree (d) Sometimes contractors compensate for complexity by simple addition to the technical support estimate (e) None of the above

Question 24: Tooling does not include: (a) Jigs (b) Dies (c) Fixtures (d) Small hand tools (e) None of the above

Question 26: is test equipment that can be used for more than one contract and charged to overhead. (a) Capital or general purpose equipment (b) Special test equipment

Question 27: are those costs beyond the development phase to introduce new systems or a new capability into use. (a) Research and development costs (b) Investment costs (c) Operations

Question 28: are essentially insensitive to the number of units that will be produced. (a) Research and development costs (b) Investment costs (c) Operations

Question 29: The first order of business in the parametric pricing of a program is: (a) Developing technical baselines (b) Selecting a data base (c) Definition of overall program requirements, interfaces, scope, and definition (d) Developing grass roots estimates

Question 30: Which of the following best describes indirect costs? (a) Costs which are incurred for the benefit of two or more cost objectives (b) Costs which do not benefit Government contracts (c) Costs which are impractical to trace to a specific cost objective (d) (a) and (c) both describe indirect costs

Question 31: Distributed overhead costs are: (a) Costs related to outgoing freight (b) Costs incurred for the benefit of two or more primary cost pools (c) Costs which cannot be related to any cost objective (d) Costs which can be attributed to one primary indirect cost pool

Question 32: In indirect cost analysis, the break-even point is that point at which: (a) There is no over or under application (absorption) of indirect costs (b) Fixed and variable costs are fully recovered (c) Actual indirect costs equal standard indirect costs (d) Total revenue equals total cost

Question 33: Material overhead includes costs related to: (a) Depreciation (b) Insurance (c) Unemployment taxes (d) Transportation (incoming) (e) All of the above

Question 34: A contractors profit percentage estimated for a specific contract will result in actual profit: (a) Seven out of ten times (b) Three out of ten times (c) Only if all assumptions made with reference to a specific contract and all other contracts during a particular period are realized (d) If he uses the new weighted guidelines method

Question 35: There is no limitation imposed by statute or regulation on profit negotiated on contracts. (a) Fixed price (b) Cost-type

Question 36: CAS establishes criteria for measuring and allocating, as an element of contract cost, the cost of capital committed to facilities used on a contract. (a) 411 (b) 412 (c) 414 (d) 415

Question 37: (e) The 417 requirement for submission of cost or pricing data by the prime contractor extends to: (a) Only the prime contractors in-house work (b) The first tier subcontractors (c) All tiers of subcontractors (d) The first and second tier subcontractors

Question 38: The prime contractor will normally be required to submit cost data on each subcontract item from: (a) All potential subcontractors (b) The subcontractor most likely to be selected (c) The subcontractor offering the best technical proposal (d) Those subcontractors with whom the prime contractor has had previous experience

Question 39: The purpose of post award audits of firm fixed price contracts is to determine: (a) Whether or not defective cost or pricing data was submitted (b) Profit-cost relationships (c) Whether contingencies cited by the contractor materialized (d) All of the above

Question 40: If a subcontractor accepts an indemnification clause which provides that he is liable to the prime contractor for any reduction in the prime contract price arising out of defective data which he furnishes, the clause should contain provisions which: (a) Provide the subcontractor with a method of appeal (b) Disclaim any liability on the part of the subcontractor (c) Make the subcontractor who ultimately receives the contract liable (d) Provide for payment directly to the Government