ECONOMICS 204 Analyzing Contract Costs Exam1

A nontechnical introduction to economic concepts such as scarcity, costs and benefits, supply and demand, trade, employment, and growth, with applications to current economic issues and policies ECONOMICS 204 Analyzing Contract Costs Exam1 (55 QUESTIONS AND CORRECT ANSWERS FOR GUARANTEED A) 1) Which of the following must be true to properly classify a cost as an “other direct cost”? [Recognize concerns that affect the other direct costs proposed] All of these The proposed cost benefits only the proposed contract work The offeror customarily treats similar costs as “other direct costs” under similar circumstances The contractor’s accounting system segregates “other direct costs” from similar indirect costs 2) True or False: Special test equipment that is engineered, designed, fabricated, or modified to meet specific contract needs and cannot be used for other contracts can be categorized as “other direct costs.” [Determine if the other direct costs are properly proposed] True False