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Financial Certified Professional Contracts Manager (CPCM) CPCM Dumps in PDF

Free Financial CPCM Real Questions (page: 17)

CPCM PDF — 144 Questions

The formula to calculate the Point of Total Assumption (PTA) is:

  1. PTA = (Floor price ­ Target price / seller share ratio) + Target cost
  2. PTA = (Target price ­ Ceiling price / Buyer share ratio) + Target cost
  3. PTA = (Target price ­ Ceiling price / seller share ratio) + Target cost
  4. PTA = (Ceiling price ­ Target price / Buyer share ratio) + Target cost

Answer(s): D



Liquidated damages are a negative incentive (penalty) for:

  1. Over budget
  2. Late delivery
  3. Do not achieve requirements
  4. Requirements gap

Answer(s): B



A critical aspect in the success of performance-based incentive contracting is called:

  1. Creativity
  2. Timeliness
  3. Achievement
  4. Standardization

Answer(s): A



An agreement on a set of criteria and procedures to be applied by the buyer in determining how well the seller has performed and how much fee the seller has earned is called:

  1. Inducement plans
  2. Awarded-plans
  3. Award-free plans
  4. Contract incentive plans

Answer(s): C



A fixed fee that the seller will earn no matter how its performance is evaluated in known as:

  1. incurred fee
  2. award fee
  3. period fee
  4. base fee

Answer(s): D



Which contracts allow overrun or under-run sharing of cost through a predetermined formula for fee adjustments that apply to incentives for cost category contracts?

  1. fixed price incentive
  2. cost-plus-incentive fee
  3. special incentive fee
  4. pros and cons of award fee

Answer(s): B



Which of the following is Correct?

  1. cost-plus-award fee contracts include subjective incentives, in which the profit the seller earns depends on how well the seller satisfies a buyer's subjective desires.
  2. cost-plus-incentive fee contracts include subjective incentives, in which the profit the seller earns depends on how well the seller satisfies a buyer's objective desires.
  3. cost-plus-award fee contracts include objective incentives, in which the profit the buyer earns depends on how well the seller satisfies a buyer's objective desires.
  4. cost-plus-incentive fee contracts include objective incentives, in which the profit the buyer earns depends on how well the buyer satisfies a seller's subjective desires.

Answer(s): A



Time and Material contracts typically involve higher levels of risks for sellers.

  1. True
  2. False

Answer(s): B



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