CPCM

CPCM practice questions, page 4 of 6, with answer review and explanations.

Question 16

The point at which sharing changes to 0/100 is called the _____________, which represents a cost figure.

  1. Point of configuration
  2. Point of total assumption
  3. Pattern point
  4. Prototype point

Question 17

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

Question 18

Liquidated damages are a negative incentive (penalty) for:

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

Question 19

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

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

Question 20

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