Certification Exam Practice Questions

These practice exams and question sets are designed to help you prepare to take the NCMA certificationi exams. The questions included will not appear on any exam; they are intended to illustrate some of the types of questions you will encounter in the live exam environment.

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Certification Exam Practice Questions

• Business Knowledge Module
• Commercial Knowledge Module
• Federal Knowledge Module

Federal Mini-Exam
Federal Mini-Exam Answers
General Business Mini-Exam
General Business Mini-Exam Answers

Practice Questions
Business Knowledge Module - NOTE: Questions on the actual examination may be similar, but these specific questions will not appear on the examination and are to be used for study/information purposes only.

1. The US Constitution provides for
   
   
   1. freedom of contract
   
   
   
   2. written contracts
   
   
   
   3. oral contracts
   
   
   
   4. government contracts
   
   
   



2. Issues such as "What is data?" and "What is complete, current, and accurate?" often arise when considering the
   
   
   1. Contract Disputes Act
   
   
   
   2. Truth in Negotiation Act
   
   
   
   3. Law of the Sea
   
   
   
   4. Clinger-Cohen Act
   
   
   



3. In matrix management organizations, the employees are "owned" by
   
   
   1. the project manager, not any home-shop
   
   
   
   2. the home organization, not the project
   
   
   
   3. outside companies
   
   
   
   4. an entity that is dependent solely on the corporate environment
   
   
   



4. Keeping accounting records in accordance with generally accepted accounting procedures and making accounting records available to the buyer is
   
   
   1. only applicable to federal government contracts
   
   
   
   2. applicable when specified in an audit clause in the contract
   
   
   
   3. a standard business practice
   
   
   
   4. only applicable to high dollar purchases
   
   
   



5. Which of the following is the least preferred method of computing an equitable adjustment?
   
   
   1. Total Costs
   
   
   
   2. Actual costs
   
   
   
   3. Actual costs, reasonably incurred
   
   
   
   4. Reasonable value to buyer approach
   
   
   



6. One critical component for successful communication is
   
   
   1. allowing dominant speakers to say all they want to before others do
   
   
   
   2. listening
   
   
   
   3. ensuring that meetings can go as long as necessary to make sure everyone has said their piece
   
   
   
   4. taking turns in order so no one gets missed
   
   
   



7. Asset friendly terms for a buyer include
   
   
   1. minimum order quantities and commitments
   
   
   
   2. avoidance of extended acceptance terms and extended warranties
   
   
   
   3. penalties for late payment.
   
   
   
   4. 30 day or more payment terms.
   
   
   



8. An overt communication of an intention or an action which renders performance impossible or demonstrates a clear determination not to continue with performance of an existing contract is known as
   
   
   1. rejection of an offer
   
   
   
   2. failure of consideration
   
   
   
   3. anticipatory repudiation
   
   
   
   4. a request for adequate assurances
   
   
   



9. The salary costs of the corporate accounting department are usually an example of
   
   
   1. general and Administrative costs
   
   
   
   2. variable and direct costs
   
   
   
   3. overhead and interdivisional costs
   
   
   
   4. other direct costs
   
   
   



10. Revenue recognition is possible under what conditions?
    
    
    1. Orders are on hand, vendors are requesting payment
    
    
    
    2. Collectibility is possible, the product exists, the company projection statement
    
    
    
    3. Delivery, persuasive evidence of the condition, and price is fixed or determinable
    
    
    
    4. No damages exist and invoice has been sent
    
    
    



11. The following applies to both commercial and government contracts
    
    
    1. Parol evidence rule
    
    
    
    2. Termination for convenience
    
    
    
    3. Change orders
    
    
    
    4. Prohibition of CPPC contract type
    
    
    



12. Organizational conflict of interest means
    
    
    1. the person/firm is involved in litigation with the contracting agency..
    
    
    
    2. because of other activities or relationships with other persons, a person is unable or potentially unable to render impartial assistance or advice to the Government.
    
    
    
    3. the person's placement in his/her firm's organizational structure would result in bad management of the contract.
    
    
    
    4. a Government technical advisor's role in source selection must be limited.
    
    
    



13. Account Receivables are important because
    
    
    1. delinquent receivables rarely become uncollectible
    
    
    
    2. Contract Managers can not influence receivables.
    
    
    
    3. receivables do not represent cash someone owes us.
    
    
    
    4. delinquent receivables increase capital costs, i.e., we are forced to borrow more.
    
    
    



14. An accounts payable ratio may be expressed as
    
    
    1. sales/accountable receivables
    
    
    
    2. sales/revenue
    
    
    
    3. sales/accounts payable
    
    
    
    4. accounts payable/sales
    
    
    



15. When the commitment of team members is considered very important, yet time is limited, the most appropriate decision making technique would be
    
    
    1. consensus
    
    
    
    2. unilateral
    
    
    
    3. majority
    
    
    
    4. unanimous
    
    
    

KEY 1. A, 2. B, 3. B, 4. C, 5. A, 6. B, 7. D, 8. C, 9. A, 10. C, 11. A, 12. B, 13. D, 14. C, 15. A

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Commercial Knowledge Module - NOTE: Questions on the actual examination may be similar, but these specific questions will not appear on the examination and are to be used for study/information purposes only.

1. An offer, in order to give rise to a valid contract, must
   
   
   1. be timely accepted by the intended offeree
   
   
   
   2. be stated orally
   
   
   
   3. be specifically permitted by statute or regulation
   
   
   
   4. be limited as to form of acceptance
   
   
   



2. A person acting primarily for the benefit of another in a matter connected with that action is a
   
   
   1. federalist
   
   
   
   2. fiduciary
   
   
   
   3. filibuster
   
   
   
   4. feudalist
   
   
   



3. In contract disputes, a claimant is
   
   
   1. a person who has a demand made against them
   
   
   
   2. a person who asserts a right or demand
   
   
   
   3. a person who countersues
   
   
   
   4. a third party who makes a demand against the seller
   
   
   



4. In a breach of contract, court-awarded expectation damages to a plaintiff (for injuries within the contemplation of the parties at the time the contract was made) are characterized as
   
   
   1. injurious
   
   
   
   2. reasonable
   
   
   
   3. foreseeable
   
   
   
   4. conditional
   
   
   



5. The concept of consideration in contract law requires that
   
   
   1. a benefit flows to both the offeror and the offeree
   
   
   
   2. only the offeree receives a benefit
   
   
   
   3. only the offeror receives a benefit
   
   
   
   4. no benefit can flow to either party
   
   
   



6. When a party's rights under a contract do not become enforceable until the occurrence of a specific event, that event is said to be a
   
   
   1. condition subsequent
   
   
   
   2. condition precedent
   
   
   
   3. ambiguous condition
   
   
   
   4. constructive change
   
   
   



7. A seller's "cure" of tendered nonconforming goods
   
   
   1. must conform to the specific provisions of the code defining "cure"
   
   
   
   2. must occur prior to the original tender date
   
   
   
   3. is a breach for which the seller is liable for damages
   
   
   
   4. must occur within a reasonable time of notice of rejection
   
   
   



8. A mistake in the basic assumption of fact can be identified if the offeror, offeree, and a reasonable person
   
   
   1. have differing expressed opinions of the contract
   
   
   
   2. perceive the same true facts
   
   
   
   3. perceive the contract to mean the same thing
   
   
   
   4. agreed post signature as to the true facts
   
   
   



9. A principal may ratify an unauthorized act of his or her agent only if
   
   
   1. the principal could have acted for himself or herself at the time the agent took the action
   
   
   
   2. the agent is sorry
   
   
   
   3. the principal later gets the authority to do so
   
   
   
   4. the injured party requests it
   
   
   



10. The legal concept that exists between the employer or business owner and the employee working on that employer's behalf is one of
    
    
    1. actual authority
    
    
    
    2. quid pro quo
    
    
    
    3. agency
    
    
    
    4. approval
    
    
    



11. In contract formation, an acceptance that does not conform to the terms of the offer is not truly an acceptance, but will be treated
    
    
    1. as a counter-offer
    
    
    
    2. with indifference
    
    
    
    3. as acceptance if the price is higher
    
    
    
    4. as an offer unrelated to the original offer
    
    
    



12. UCITA, the uniform computer information transactions act, actually creates implied elements of a contract. They are warranties for
    
    
    1. viruses, malfeasance, and email
    
    
    
    2. data accuracy and non-infringement
    
    
    
    3. server time
    
    
    
    4. disabled people
    
    
    



13. Article 2 of the UCC superceded the
    
    
    1. Uniform Bills of Lading Act of 1909
    
    
    
    2. Uniform Warehouse Receipts Act
    
    
    
    3. Uniform Stock Transfer Act
    
    
    
    4. Uniform Sales Act
    
    
    



14. The doctrine applicable only to losses which the plaintiff could have avoided or gains the plaintiff could have received given that plaintiff exercised reasonable effort without undue risk or undue humiliation is the doctrine of
    
    
    1. reservation of rights
    
    
    
    2. advantageous contracts
    
    
    
    3. avoidable consequences
    
    
    
    4. foreseeability
    
    
    



15. Advance agreements regarding cost principles should be negotiated
    
    
    1. before costs are incurred
    
    
    
    2. before the solicitation is issued
    
    
    
    3. before the contract is signed
    
    
    
    4. during fact-finding
    
    
    

KEY 1. A, 2. B, 3. B, 4. C, 5. A, 6. B, 7. D, 8. C, 9. A, 10. C, 11. A, 12. B, 13. D, 14. C, 15. A

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Federal Knowledge Module - NOTE: Questions on the actual examination may be similar, but these specific questions will not appear on the examination and are to be used for study/information purposes only.

1. A bid may be accepted after the exact time of bid opening when the
   
   
   1. secretary at the designated office left the bid in the restroom on the way to the bid box before bid opening.
   
   
   
   2. post office failed to deliver the package overnight to the right building before bid opening.
   
   
   
   3. bid box was locked during the regular lunch break without notice to all bidders before bid opening.
   
   
   
   4. contractor's fax machine broke just before the last page of the bid' price schedule before bid opening.
   
   
   



2. A contractor who fails to meet a delivery date
   
   
   1. may be terminated for default only after being given a 10-day grace period.
   
   
   
   2. may be terminated for default immediately.
   
   
   
   3. may be terminated for default at any time within two years.
   
   
   
   4. may not be terminated until the Government assures itself of the contractor's fault.
   
   
   



3. Selection of the type of contract to be used for a particular procurement
   
   
   1. is always mandated by the FAR depending on whether goods, services, R&D, or construction is being purchased.
   
   
   
   2. usually is a matter of negotiation between the contracting officer and the supplier.
   
   
   
   3. is dictated by the buyer based solely on its internal requirements.
   
   
   
   4. is determined by administrative ease.
   
   
   



4. If a proposed contractor was discovered to have insufficient financial resources to perform the proposed contract, it would be determined to be not
   
   
   1. responsive.
   
   
   
   2. reasonable.
   
   
   
   3. responsible.
   
   
   
   4. authorized.
   
   
   



5. The primary means of ensuring that the Government receives the benefit of its bargain is the
   
   
   1. inspection.
   
   
   
   2. negotiation.
   
   
   
   3. acceptance.
   
   
   
   4. termination.
   
   
   



6. The Anti-Deficiency Act prohibits, among other things,
   
   
   1. spending money unwisely.
   
   
   
   2. obligating money not appropriated.
   
   
   
   3. spending money in excess of that required to meet the Government's minimum needs.
   
   
   
   4. spending money not required by the bona fide needs of the Government.
   
   
   



7. A form of written approval signed by an authorized government official that is required by statute or regulation as a prerequisite to taking certain contracting actions is/are
   
   
   1. Determination of the Facts.
   
   
   
   2. Justification and approval.
   
   
   
   3. Accord and satisfaction.
   
   
   
   4. Determination and Findings.
   
   
   



8. Special contracting methods include
   
   
   1. multi-year contracting, bridge contracting, and small business contracting.
   
   
   
   2. multi-year contracting, options, and small business contracting.
   
   
   
   3. multi-year contracting, options, and leader company contracting.
   
   
   
   4. multi-year contracting, bridge contracting, and leader company contracting.
   
   
   



9. This type of contract is acceptable for commercial contracts but NOT for US government contracts. The contract is
   
   
   1. cost plus a percentage of cost.
   
   
   
   2. cost plus economic price adjustment.
   
   
   
   3. cost sharing.
   
   
   
   4. cost plus incentive fee.
   
   
   



10. The Government-wide commercial purchase card shall be the preferred method to purchase and pay for
    
    
    1. office equipment.
    
    
    
    2. personal services.
    
    
    
    3. micro-purchases.
    
    
    
    4. non-personal services.
    
    
    



11. The work effort is over and the Government and Contractor are negotiating the final actual costs to be paid. Which statement is true?
    
    
    1. The Government will pay all actual costs that are allowable, allocable and reasonable on this cost reimbursement contract.
    
    
    
    2. No need to negotiate anything. The Government always pays the contractor the price found on the contract cover page, Section A.
    
    
    
    3. The Government will pay all allowable, allocable and reasonable direct labor and material costs and the indirect costs negotiated in the Forward Pricing Rate Agreement
    
    
    
    4. In a cost reimbursement contract, the Government pays all actual costs invoiced by the contractor. This negotiation is to determine the interest expense to be paid to the contractor.
    
    
    



12. Which of the following would NOT be a cost that would be considered in making an equitable adjustment under the Changes clause?
    
    
    1. additional incurred labor costs caused by a change to the material specifications
    
    
    
    2. the costs of prosecuting a claim or appeal against the Government
    
    
    
    3. the costs of preparing the request for equitable adjustment
    
    
    
    4. the costs of shipping or packing supplies
    
    
    



13. A contracting officer includes financing terms in a commercial solicitation. An offer is received that states the contracting officer-specified contract financing terms will not be used by the offeror. The effect is:
    
    
    1. the contracting officer may consider the offer only after adjusting the offeror's proposed prices
    
    
    
    2. any resulting contract to the offeror will not contain the contracting officer-specified contract financing terms
    
    
    
    3. the offer may be considered, but the evaluation of the offer is altered
    
    
    
    4. the offer is rendered nonresponsive
    
    
    



14. If a Government inspector misunderstood the contract and required a contractor to alter its method of performance, the contractor may be able to recover under the
    
    
    1. mutual mistake doctrine
    
    
    
    2. bone fide needs doctrine
    
    
    
    3. constructive change doctrine
    
    
    
    4. anticipatory repudiation doctrine
    
    
    



15. Funding instability is a serious problem for major systems acquisition professionals. Name 3 things a contracting officer can recommend to mitigate funding instability:
    
    
    1. Multi-year procurement authority, priced options, CAIV
    
    
    
    2. Government Purpose Rights, POM Reclamas, Earned Value
    
    
    
    3. Other Transactions, Grants, Cooperative Agreements
    
    
    
    4. Forward Pricing Rate Agreements, Performance Based Contracting, Cost Reimbursement Contracts
    
    
    

KEY 1. A, 2. B, 3. B, 4. C, 5. A, 6. B, 7. D, 8. C, 9. A, 10. C, 11. A, 12. B, 13. D, 14. C, 15. A

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