About cost plus fixed fee contract

Assignment Help Financial Management

Reference no: EM132068633

1) The Service Assistant Secretary (Financial Management and Comptroller):

a) Reviews a program's life-cycle cost estimate or Economic Analysis to identify program funding issues early in the cost estimating review process

b) Prepares independent life-cycle cost estimates for ACAT ID programs

C) Designates an independent activity to perform the Analysis of Alternatives for an ACAT I program

D) Prepares the Component Cost Analysis

2) Which one of the following best reflects when the Component Cost Estimate (CCE) must be prepared for an ACAT IA program?

A) At Milestone A and whenever the Economic Analysis is required/updated

B) Only at Program Initiation

C) At every milestone and decision review point

D) At Milestones B, C, and the Full Rate Production Decision Review

3) An Army helicopter program has initiated a product improvement effort to make the helicopter easier to maintain. This effort will not enhance the system's performance capability and extensive/independent testing will not be required. The production line is not currently active. According to DoD budget guidance, the proper appropriation account in which to budget for the development and testing of this product improvement is:

A) Operations & Maintenance, Army

B) Military Personnel, Army

C) Aircraft Procurement, Army

D) RDT&E, Army

4) What funding policy applies to procurement appropriations?

A) Full Funding

B) Escalation Funding

C) Annual Funding

D) Incremental Funding

5) The contract type which allows the negotiated price to be adjusted based on economic conditions identified in the contract is:

A) Fixed Price Incentive, Firm Target

B) Firm Fixed Price

C) Fixed Price-Economic Price Adjustment

D) Cost Plus Incentive Fee

6) A cost estimate prepared using the engineering method uses:

A) A one-to-one comparison of the new system to a similar existing system

B) A detailed work breakdown structure to enable a bottom-up determination of costs

C) Statistical analysis to derive cost estimating relationships

D) Projections based on cost data from past experience with the same system

7) What cost estimating technique would be most appropriate for the following situation?A DoD Component is trying to budget for the overhaul of 10 air refueling tankers. Cost data is available from five similar recent overhauls of the same model aircraft.

A) Analogy

B) Actual Costs

C) Parametric

D) Engineering

8) Which of the following categories of appropriations should be used to fund $150,000 of computer equipment for a Local Area Network?

A) Military Personnel

B) Procurement

C) Military Construction

D) Operations & Maintenance

9) Which of the following characteristics is FALSE about a Cost Plus Fixed Fee contract?

A) Most risky for government and least risky for contractor

B) Contains no incentives

C) Provides for fee including a base fee and an award fee

D) Contractor is reimbursed for all allowable costs

10) DoD funding policy states that the RDT&E appropriation budget request for a fiscal year should be restricted to the budget authority necessary to cover all:

A) expenditures expected to be made during that fiscal year

B) costs expected to be incurred during that fiscal year

C) commitments expected to be made during that fiscal year

D) outlays expected to be made during that fiscal year

11) DoD funding policy states that the RDT&E appropriation budget request for a fiscal year should be restricted to the budget authority necessary to cover all:

A) expenditures expected to be made during that fiscal year

B) costs expected to be incurred during that fiscal year

C) commitments expected to be made during that fiscal year

D) outlays expected to be made during that fiscal year

12) Which one of the following best reflects how a DoD acquisition program manager should go about implementing the CAIV philosophy?

A) Trading off cost to achieve objective levels of system performance

B) Trading off schedule parameters to achieve objective levels of system performance

C) Trading off specific performance parameters of the system to achieve program cost objectives

D) Trading off cost to achieve program schedule objectives

13) A program that wants to reduce the procurement cost of its system by reducing the cost of materials and labor could do so by making use of this type of funding policy exception:

A) Working Capital Funds

B) Services contract crossing fiscal years

C) Multiyear procurement

D) Advance procurement

Reference no: EM132068633

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