Free Financial CPCM Exam Questions (page: 5)

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

Answer(s): B



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



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