Free CRA Exam Braindumps (page: 8)

Page 8 of 61

Which of the following is a method of funding contracts which provides specific spending limits below the total estimated costs?

  1. Incremental Funding
  2. Decremental Funding
  3. Accumulated Funding
  4. None of the choices.

Answer(s): A

Explanation:

Encumbrance Funds are simply funds that have been set aside for projected expenses pending actual expenditure of the funds. Incremental Funding is a method of funding contracts which provides specific spending limits below the total estimated costs, that these limits may be exceeded ONLY at the contractor's own risk. With Incremental Funding, each increment is in essence a funding action.



With Incremental Funding, spending limits can NEVER be exceeded.

  1. True
  2. False

Answer(s): B

Explanation:

Encumbrance Funds are simply funds that have been set aside for projected expenses pending actual expenditure of the funds. Incremental Funding is a method of funding contracts which provides specific spending limits below the total estimated costs, that these limits may be exceeded ONLY at the contractor's own risk. With Incremental Funding, each increment is in essence a funding action.



With Incremental Funding, each increment is in essence:

  1. a funding action.
  2. a bidding action.
  3. a request.
  4. None of the choices.

Answer(s): A

Explanation:

Encumbrance Funds are simply funds that have been set aside for projected expenses pending actual expenditure of the funds. Incremental Funding is a method of funding contracts which provides specific spending limits below the total estimated costs, that these limits may be exceeded ONLY at the contractor's own risk. With Incremental Funding, each increment is in essence a funding action.



Continuation Project (Non-Competing) is basically applicable to:

  1. grants only.
  2. cooperative agreements only.
  3. non-cooperative agreements only.
  4. grants and cooperative agreements only.
  5. None of the choices.

Answer(s): A,B

Explanation:

Continuation Project (Non-Competing) is basically applicable to grants and cooperative agreements only. A project approved for multiple-year funding, although funds are typically committed only one year at a time. At the end of the initial budget period, progress on the project is assessed. If satisfactory, an award is made for the next budget period, subject to the availability of funds. Continuation projects do not compete with new project proposals and are not subjected to peer review beyond the initial project approval.



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