Cost and Price Analysis
Cost and Bulk Assay Instructor:Name: Class:Finance 230Date: Period:Results: 1)Why is it important for the government to exercise able budgetary acumen back spending funds? Government advisers are captivated amenable for use of able acumen so those boundless prices are not paid. 2)List and call four types of bazaar based pricing. Be abiding to accommodate at atomic one (1) archetype of anniversary type.
Competitive Offers – acknowledgment to address auspicious aggressive offers Accustomed Archive Bulk – Appear by the agent in a consistently maintained archive or bulk annual Accustomed Bazaar Bulk – embodied from sources absolute of the seller: and are accepted sales prices accustomed in the accustomed advance of barter amid buyers and sellers chargeless to arrangement in the bazaar place. Accustomed by Law or Regulation – barter are consistently impacted by the accustomed prices. )List 3 affidavit that government buyers accept cogent advantages in accepting fair and reasonable prices. The government is the alone client – which has a able negotiating position on pricing. Aerial aggregate acquirement – suppliers like to accord with aerial aggregate buyers and are absorbed to accord bigger prices to such buyers. Anit-Deficiency Act - requires the government agencies accept the money to pay for the arrangement assignment afore signing the contract. 4)Compare and adverse cost, bulk and profit. Bulk refers to the bulk of money that consumers accept to accord up to access appurtenances or service.
Profit is what anytime budgetary bulk is larboard afterwards all bulk has been paid. 5)List and explain the two able procedures for accepting aggressive prices. Closed Behest - A action by which government needs are fabricated accepted by a address alleged and Invitation for Bids (IFB). Negotiation is the application acclimation that ma be acclimated back closed behest is inappropriate. Aggressive Proposals A action by which government needs are fabricated accepted by a address alleged a Request for Quotation (RFQ) 6)Compare and adverse bulk and banking accounting.
List two (2) examples anniversary of altitude that accreditation the use of bulk and banking accounting procedures. Bulk accounting – is a action which enables firms to accumulate clue of the costs that administer to anniversary alone arrangement or aloft assignment they beneath take. Ex bulk acct. – appraisal the bulk of assignment afore absolutely adventure it. Banking accounting – is the accession of advice that enables the close to apperceive how abundant absolute bulk and accession they fabricated in a accurate aeon of time. Ex. 7)What are the three aloft classifications of costs?
Reasonable, allowable, and allocable bulk Variable fixed, and semi-variable bulk Absolute and aberrant bulk 8)Compare absolute and aberrant costs. Absolute bulk – absolute labor, absolute materials, and some alternative costs accurately associated with accurate affairs are classified as absolute costs. Aberrant bulk – are any bulk that are not direct. Bulk that administer beyond the lath to ample genitalia not calmly accountable to one accurate contract. How does the government application administrator ensure the costs are reasonable, acceptable and allocable?
Reasonable Bulk – in its attributes and amount, it does not beat that which would be incurred by a advisable actuality in the conduct of a aggressive business. Acceptable Bulk – allowability of a accurate bulk beneath bulk attempt charge be actuate application FAR Allotment 3. Anniversary assumption is based on laws and policies. The accommodation for determing acceptable of a accurate bulk blow with the Application Officer. Allocable Costs – alloacable if I is assignable or accountable to one or added bulk objectives on the base of about allowances accustomed or alternative candid relationship. )When may certified bulk or appraisement abstracts be required? The arch of an bureau shall crave offerors, contractors, and subcontractors to accomplish bulk or appraisement abstracts accessible as follows: An offeror for a prime arrangement entered into application procedures alternative than sealed-bid procedures shall be appropriate to abide bulk or appraisement abstracts afore the accolade of a arrangement if— in the case of a prime contract, the bulk of the arrangement to the is accepted to beat $500,000; and in the case of a prime arrangement entered into on or before, the bulk of the arrangement to the United States is accepted to beat $100,000. n the case of a change or modification fabricated to a prime arrangement referred to in subparagraph the bulk acclimation is accepted to beat $500,000; in the case of a change or modification, to a prime arrangement that was entered , the bulk acclimation is accepted to beat $500,000; and in the case of a change or modification not covered by article (i) or (ii), the bulk acclimation is accepted to beat $100,000. 10)If the government were to actuate that cogent overpricing occurred because of abnormal bulk or appraisement data, what options may the application administrator analyze above-mentioned to award?
What may the application administrator accede afterwards award? The Truth in Negoatation Act - an assay of abnormal appraisement in government application 11)Explain the akin of accent associated with the abundant assay of absolute activity costs back free a fixed-price contract. Bulk assay shall be acclimated back bulk or appraisement abstracts are not appropriate in free the acumen of the prime arrangement price. Some firm-fixed-price affairs may entail essentially beneath bulk accident than that of absolute costs, such as absolute and labor, and associated aberrant costs. 2)When free proposed alternate allowance rates, annual three (3) options an offeror explore. Plantwide rate, Departmental Rate, and Ante by Activity Category 13)List, in comparison, what action improvements allowances accomplished from the acquirements ambit and advance curve. What are the expectations of anniversary curve? Theroy alleged acquirements ambit because it is belived thath acquirements workers acquired best of the time saving, Studies showed that alternative factors, such as accessories and accoutrement improvements, additionally advice abate assemblage assembly time.
It is alleged assorted names advance curve, acquaintance ambit and time abridgement curve. 14)How does a aggregation finer administer the aerial expense? What are the archetypal costs included in overhead? Aerial costs are those assembly and nonproduction costs not readily traceable to specific jobs or processes. Aerial costs beset three accepted areas: aberrant materials, aberrant labor, and all alternative assorted assembly expenses, such as taxes, insurance, depreciation, supplies, utilities, and repairs.
Therefore, aerial bulk is allotment of the absolute costs of advancement and staffing a business. 15)Categorize the afterward costs as either Aerial or Accepted & Administrative: a. Lease b. Entertainment Bulk c. Travel Bulk d. Payroll Bulk e. Marketing Bulk f. Mileage g. Professional Development h. Utilities i. Communications Bulk j. Goodwill k. Research and Development Costs l. Taxes m. Patent Costs n. Bad Debts o. Lobbying and alternative Political Costs 16)The atom allowance includes accident and shrinkage. Annual two (2) similarities and differences amid the three categories.
Scrape allowance is added bulk of absolute or genitalia appropriate to be abiding that abundant absolute will be avaible to accomplish the final product. Atom is unadvoidable. Accident is a altered from scrape because it is the absolute aftereffect of addition authoritative a aberration or a apparatus accepting out of acclimation or a agnate problem. Abbreviating is addition factor. This can be the aftereffect of nature. 17)Explain the afterward concepts: a. Underabsorption beneath assimilation is back the absolute approaching aerial is beneath than the planned aerial b. Overabsorption
Occurrence of acclaim antithesis in factory-overhead account, consistent from balance of aerial activated to work-in-process account over the bulk of aerial absolutely incurred. c. Exact Assimilation The affairs of arresting the exact absolute bulk of aerial by a alternation of abounding chump billings throughout the year are nil. 18)Describe the afterward methods in administering bulk analysis: a. Allegory of proposed prices accustomed in acknowledgment to the address These methods abide of comparing offered prices to anniversary alternative to adjudge which are reasonable b.
Comparison of above-mentioned proposed prices and arrangement prices with accepted proposed prices Acclimation best frequently acclimated for government bulk assay back bureau has had a history of application for the aforementioned articles or services. c. Allegory with aggressive appear bulk lists Catalogs are accustomed as adequately reliable guides on accepted prices actuality paid by consumers in general. Accustomed archive or bazaar price. The bulk paid for bartering items prices for items awash in substantial. Accustomed archive price, Accustomed bazaar price, and Bulk paid for Bartering items. . Visual Assay FAR 5. 404-1(b) (4) says amount assay can accord acumen into the about account of a product, and government may use it in affiliation with alternative bulk assay techniques. 20)Facilities bulk of basic is acceptable if the contractor's accept which of the following: (a) Basic advance is measured, allocated to affairs and bulk as appropriate by CAS 414 (b) Architect has able annal to appearance acquiescence with CAS 414 (c) Estimated accessories basic bulk of money is accurately proposed for the arrangement beneath which it is claimed (d) All of the aloft 1) Compare and adverse Distributed Accessories and Undistributed Facilities. Distributed accessories are those that are acutely and anon assigned to specific aerial or G accounts. Undistribute Accessories are accessories basic costs incurred for added than one aberrant bulk pool. The bulk of these accessories charge be allocated to the aberrant bulk pools that bebefit from them. 22) Accessories basic bulk of money is an a. Allocatable bulk b. Acceptable bulk c. Variable bulk d. Imputed bulk e. Both b and d 23).
What does the acronym CASB beggarly in Accessories Basic Bulk of Money a, Basic Accounting Arrangement Branch b. Bulk Accounting Standards Lath c. Bulk Assay Standards Lath d. Both a & b 24) Which anatomy is acclimated to account the basic bulk of money: a. Anatomy CASB-CMF b. DD 1861 c. SF 182 d. All of the above. 25) In which (1) one of the three means can a arrangement accountant abetment the application administrator in arrangement pricing? Reviewing and evaluating proposed or incurred costs 26) Application Admiral will generally ascertain that the contractor’s accounting arrangement meets this claim by allotment a ______________________?
Pre-award Survey of -to-be Architect Accounting Arrangement ( PSPCAS) 27) Arrangement accountant is alleged on by a application administrator to actuate if the -to-be arrangement meets what? Amenable banking adequacy accepted of FAR 9. 104-1 28) What bottomless costs are proposed or incurred costs on which the accountant is clumsy to cede an opinion? Regarding reasonable, allowability, or allocability. 29) What does the acronym DCAA mean? Defense arrangement Audit Bureau 30) What is the absolute Bulk Approach? How is it used?
It shows all bulk incurred in the aboriginal arrangement appraisal and were the attributes to the arrangement were changed. It shows the government at accountability and recognizes that neither the architect nor any third affair is at fault. 31) Annual the two attempt that abound in barometer candid adjustment. Some bulk appulse charge aftereffect from the arrangement change The arrangement and government are to abide whole. 32) Why is there a architecture for appointment proposals for candid adjustments and back is it used. This academic procedures is a methodical way o certificate the abacus of the candid adjustment.
When contractors abide certified bulk or appraisement abstracts if the accepted amount of the arrangement modification exceeds $650,00. 00. 33) What is the name of the blueprint that is broadly acclimated back accretion unabsorbed aerial consistent from government acquired delays? Eichleay Blueprint 34) How can contractors choose the bulk of assuming afflicted work? They usually accredit specials accounting codes to the affairs attributed to the afflicted work. 35) What is the capital delusion about accession and fee? Negotiated accession or fee is what the architect will absolutely get. 6) What three aloft requirements charge government application admiral attach to according to the Application Administrator Responsibilities (FAR 15. 404-4)? Accession fee Pre-negotiation objective, Accessories Basic Bulk of Money, Statutory Limitations of Prices or Fees 37) Name six aloft factors address on accession levels for government contracts. Architect Effort, Arrangement bulk rack, Federal Socioeconomic programs, Basic Investments, Bulk Control and alternative Past Accomplishments, Absolute Development. 38) What is the accepted access acclimated by all the structured accession systems.
The structured accession systems authorize a absolute accession cold by abacus accession increments for assorted aloft bulk inputs and for alternative arrangement factors. 39) What are the aloft categories listed beneath the access of Accession Determination – Overhead? Aerial accomplishment supervision, accounting and support, abrasion or hire (complex) abrasion or hire (routine), binding allowances administrative, accepted expense, and absolute aerial costs. 40) Annual three important factors that every business charge accede afore accomplishing business with the government.
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