CCIFP FINAL EXAM 2024 WITH ACTUAL
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |FREQUENTLY
TESTED QUESTIONS AND SOLUTIONS
|ALREADY GRADED A+|BRAND
NEW!!|GUARANTEED ASS |LATEST
UPDATE
What are acceptable measurement standards when using percentage of completion method? Describe
each measurement.
1) Cost to cost - costs incurred
2) Efforts method - labor hours incurred
3) Output method - completed miles of highway "as a example" used when uniformity of output
When does the look back requirement not apply?
1) Contract completed within 2 years
2) Gross contract price lesser of 1 million or 1% of annual gross receipts for prior 3 years
What is the IRS definition of a "residential construction contract"?
More than 4 dwellings, excluding row houses and townhouses as they considered separate dwellings.
Excluded from IRC 460
List 6 external users of finacials
1) Owners
2) Sureties
3) Banks
4) Vendors
5) Customers
6) Licening
What is the deductibility of a per diet paid to an employee?
Treasury takes the position that 40% of per diet is meal expense and only 50% deductible to employer
1|Page
, What are 2 methods used as measurement of completion for percentage of completion method?
1) Input - measures costs
2) Output - measures results
What is Alternate Dispute Resolution in contract law?
Doesn't include litigation or arbitration
Could be mediation, mini-trial negotiation
What are the two definitions of contract completion on IRS 460?
The earlier of:
1) Use by customer & 95% of allocable costs incurred or
2) Final completion and acceptance
What is the eichleay formula and what is it used for?
Used to calculate home office O/H costs for claims - government contracts
Allocation of basis of ratio
1) Contract billings of disputed contract/Total billings (during contract period) = O/H%
2) O/H% x Total O/H (during contract period) = allocated O/H
3) Allocated O/H / Days of contract performance = O/H per day
What is "force majeure"?
Excusable delay
What is new authoritative GAAP literature & when was it implemented?
Accounting Standards Codification (ASC)
Implemented June 2099
According to SOP 81-1 what is a profit center?
Profit centers:
1) remediation
2) operation, maintenance and monitoring. Earn revenue from fixed-price, time-and-materials and cost-
plus contracts as described below.
What are combined and segmented contracts?
Presumption is each contract however, could be
1) Combine contracts - group of closely related contracts negotiated as a package
2) Segmenting - phases negotiated separately and all may not be performed
What are the 2 methods of accounting for losses and/or changes in estimates?
1) Cumulative catch-up method - accounts for adjusted gross profit in current period (we use this
method)
2) Reallocation method - accounts for adjusted gross profit from prior periods ratably in current and
future periods
2|Page
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |FREQUENTLY
TESTED QUESTIONS AND SOLUTIONS
|ALREADY GRADED A+|BRAND
NEW!!|GUARANTEED ASS |LATEST
UPDATE
What are acceptable measurement standards when using percentage of completion method? Describe
each measurement.
1) Cost to cost - costs incurred
2) Efforts method - labor hours incurred
3) Output method - completed miles of highway "as a example" used when uniformity of output
When does the look back requirement not apply?
1) Contract completed within 2 years
2) Gross contract price lesser of 1 million or 1% of annual gross receipts for prior 3 years
What is the IRS definition of a "residential construction contract"?
More than 4 dwellings, excluding row houses and townhouses as they considered separate dwellings.
Excluded from IRC 460
List 6 external users of finacials
1) Owners
2) Sureties
3) Banks
4) Vendors
5) Customers
6) Licening
What is the deductibility of a per diet paid to an employee?
Treasury takes the position that 40% of per diet is meal expense and only 50% deductible to employer
1|Page
, What are 2 methods used as measurement of completion for percentage of completion method?
1) Input - measures costs
2) Output - measures results
What is Alternate Dispute Resolution in contract law?
Doesn't include litigation or arbitration
Could be mediation, mini-trial negotiation
What are the two definitions of contract completion on IRS 460?
The earlier of:
1) Use by customer & 95% of allocable costs incurred or
2) Final completion and acceptance
What is the eichleay formula and what is it used for?
Used to calculate home office O/H costs for claims - government contracts
Allocation of basis of ratio
1) Contract billings of disputed contract/Total billings (during contract period) = O/H%
2) O/H% x Total O/H (during contract period) = allocated O/H
3) Allocated O/H / Days of contract performance = O/H per day
What is "force majeure"?
Excusable delay
What is new authoritative GAAP literature & when was it implemented?
Accounting Standards Codification (ASC)
Implemented June 2099
According to SOP 81-1 what is a profit center?
Profit centers:
1) remediation
2) operation, maintenance and monitoring. Earn revenue from fixed-price, time-and-materials and cost-
plus contracts as described below.
What are combined and segmented contracts?
Presumption is each contract however, could be
1) Combine contracts - group of closely related contracts negotiated as a package
2) Segmenting - phases negotiated separately and all may not be performed
What are the 2 methods of accounting for losses and/or changes in estimates?
1) Cumulative catch-up method - accounts for adjusted gross profit in current period (we use this
method)
2) Reallocation method - accounts for adjusted gross profit from prior periods ratably in current and
future periods
2|Page
