Chapter 2 Management

Question 1

This financial statement documents what a company owns and owes at a specific point in time by providing detailed information about assets, liabilities, and Shareholder’s Equity:

Answer 1

Balance Sheet

Question 2

A schedule that outlines what tasks will take place, when they are scheduled to begin and end, and what resources are needed to accomplish them is typically created during the Project Planning Phase and is called a ___________.

Answer 2

Resource-Loaded Schedule

Question 3

Asking the question “What can we learn and immediately apply?” is an example of which knowledge management tool applied to risk management?

Answer 3

Learning During

Question 4

The underlying foundation of the Earned Value Management System is:

Answer 4

The relationship between work completed, and the cost of doing the work.

Question 5

The following is NOT true regarding a “Funds Thru” date:

Answer 5

The Antideficiency Act allows the contracting officer to instruct contractors to work when funds are no longer available

Question 6

Risk management is:

Answer 6

The ability to efficiently and cost-effectively mitigate problems

Question 7

Categorizing purchases according to dollar value is done in:

Answer 7

Pareto Analysis

Question 8

Incremental funding requires all of the following EXCEPT:

Answer 8

Instructions from the contracting officer to work when funds are not available

Question 9

When tracking costs following the award of a contract, what is latency?

Answer 9

The delay between when a cost is incurred and when it appears in the accounting system.

Question 10

An Estimate at Completion may be obtained by:

Answer 10

Adding the cost of work remaining to the cost of work accomplished to date.

Question 11

Which of the following best describes the project manager’s role in financial management?

Answer 11

Verifying the work completed that needs to be invoiced for.

Question 12

The ORM 6-step model includes:

Answer 12

Identifying, analyzing, and prioritizing risks

Question 13

__________is usually responsible for monitoring project performance.

Answer 13

Project Manager

Question 14

FedBizOpps is:

Answer 14

A web portal that allows vendors to review Federal business opportunities

Question 15

Which best describes the relationship between the project scope and the contract scope?

Answer 15

There is often direct correlation between the two, but the project scope may also be broader

Question 16

Which of the following best describes project management?

Answer 16

The planning, organizing, directing and controlling of all aspects of a project

Question 17

Which of the following four levels of planning is defined as a focus on short-term (e.g., one- to two-year) goals that involves evaluating economic and environmental issues such as competition (for sellers), and requirements planning (for buyers)?

Answer 17

Tactical Planning

Question 18

Portfolio Management is most focused on which of the following?

Answer 18

Business goal alignment, value alignment and program selection

Question 19

A firm fixed-price contract results in __________ buyer risk and __________seller risk.

Answer 19

Low; High

Question 20

As the first step in the financial management process, this individual is responsible for estimating how much funding the contract will require over time, and for marrying those costs with the schedule to identify when expenses will occur:

Answer 20

The program manager or contract manager.

Question 21

This costing method uses a two-step process: 1 - assign the resource costs of each activity, and 2 - assign activity costs to the output:

Answer 21

Activity-Based Costing System.

Question 22

The process for creating the Resource-Loaded Schedule begins with:

Answer 22

…extracting a Work Breakdown Structure from the Statement of Work.

Question 23

Analysis to measure the company’s ability to meet current and long-term obligations would use the following ratio:

Answer 23

Solvency Ratio

Question 24

Categorizing suppliers into Transactional, Collaborative, and Strategic Alliance categories represents

Answer 24

Supplier Relationship Model

Question 25

What is the most likely direct cause of a project dispute related to failed delivery?

Answer 25

Quality issues with deliverables and performance due to vague definitions and lack of acceptance criteria.

Question 26

Which of the following focuses on multiple projects?

Answer 26

Program

Question 27

The following are intangible assets because their value comes from a legal claim or additional earning power:

Answer 27

Patents, Trademarks.

Question 28

When suppliers are being certified or pre-qualified they have been:

Answer 28

Screened

Question 29

Which of the following is not a responsibility of Supply Chain Management?

Answer 29

Achieve low cost contracts

Question 30

Supply Chain Management:

Answer 30

Involves managing the activities to produce and deliver a product or service from suppliers to the end user customer.

Question 31

A Basis of Estimate is prepared for each work package (the lowest level of the Work Breakdown Structure). It is:

Answer 31

…a description of how the work will be done, by whom, and the effort or materials required.

Question 32

To obtain Federal Government information formerly located in the Central Contractor Registration, Online Representations and Certifications, and the Excluded Parties List System, you would navigate to the following website:

Answer 32

System for Award Management.

Question 33

A purchase order has the following two step process that sometimes causes accounting data entry delays:

Answer 33

1- A commitment is made when the order is approved and funds are deducted, similar to an accrued expense.
2 - The value of the commitment is reduced as the supplier invoices for goods/services.

Question 34

An RFQ placed in a competitive environment described as a “Monopsony” will result in what type of pricing outcome?

Answer 34

Quotes from many sellers at low prices.

Question 35

Which is NOT true of the accounting codes that are created following the award of a contract?

Answer 35

They are standardized for all Work Breakdown Structures to allow project comparisons.

Question 36

Put the following in order from broadest to narrowest.

Answer 36

Portfolio, Program, Project

Question 37

A contracting officer is preparing to award a contract for Advisory & Assistance Services to a small business. The contracting officer wants to make sure the small business is financially capable of performing and managing the contract. The Contracting Officer requests the contractors Balance Sheet from the most recently completed fiscal year. What is an example of another item the Contracting Officer might consider requesting to make a more informed decision?

Answer 37

Cash flow statement

Question 38

When a party to a contract fails to enforce a term of the contract, we may have an example of:

Answer 38

Behavior of the Parties

Question 39

What actions would an operations manager take to improve administrative lead time (also known as procurement lead time)?

Answer 39

Measure how long it takes to award contracts, and determine whether the requesting department has provided full and accurate information to the acquisition office.

Question 40

Which of the following could mitigate a performance risk?

Answer 40

Create an effective ethics and compliance internal control system

Question 41

The act of moving goods out of one’s internal organization to another organization due to loss of value is:

Answer 41

Disposition

Question 42

Regardless of an organization’s contracting activity size and purpose, the following four key functions of management are essential:

Answer 42

Planning, Organizing, Directing, Controlling

Question 43

The statement “The probability of a delivery failure is only 10%, but the impact on our mission would be catastrophic” is an example of _________________.

Answer 43

Components of risk

Question 44

Providing information to satisfy Federal contract reporting requires the comparison of current accounting data and a time-phased program budget. One standard approach is the use of:

Answer 44

An “S” Curve that represents how activities ramp up and tail off during a project.

Question 45

The four essential elements of any marketing program consist of:

Answer 45

Products/Services, Price, Promotion, Place

Question 46

The SCOR model:

Answer 46

Reflects the basic functions of a supply chain operation

Question 47

Burn Rate funding analysis “spreads” the contract value over time in a level-loading scheme. This technique:

Answer 47

….fails to consider project phases, or the potential for programs to “ramp-up” activity at the beginning, and “tail off” at the end of a project.