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RACC CRA Exam
Certified Research Administrator (CRA) (Page 7 )

Updated On: 1-Feb-2026
Page 7 of 49
PDF with 240 Questions

Cost plus net fee compensation is basically a combination of a consultant's actual allowable costs and:

  1. the net fee
  2. all depreciation expenses
  3. all government taxes and rates
  4. None of the choices.

Answer(s): A

Explanation:

Cost plus net fee compensation is a form of reimbursement very popular for consultant contracts. It is basically a combination of a consultant's actual allowable costs and the net fee as set forth in the agreement. You would want to go for this when the extent of the work cannot be well defined. Payment would be based on the actual allowable costs incurred and the completion percentage times the applicable net fee.



Which of the following is a type of remuneration which establishes a specific rate of pay in the agreement applicable for each classification of employee?

  1. rate of pay compensation
  2. unit of work compensation
  3. cash sum payment
  4. lump sum compensation
  5. cost plus net fee compensation
  6. None of the choices.

Answer(s): A

Explanation:

Rate of pay compensation is a type of remuneration which establishes a specific rate of pay in the agreement applicable for each classification of employee. You would want to use this if the indirect costs and profit would be tied directly to extent of services utilized. For this to work the contractual rates for each classification must be carefully defined.



Which of the following refers to the status of a debtor arising from a pledge by the debtor of his or her personal services or of those of a person under his or her control as a security for debt?

  1. Debt bondage
  2. Debt fund
  3. Debt refund
  4. Debt caption
  5. None of the choices.

Answer(s): A

Explanation:

Debt bondage refers to the status of a debtor arising from a pledge by the debtor of his or her personal services or of those of a person under his or her control as a security for debt, if the value of those services as reasonably assessed is not applied toward the liquidation of the debt or the length and nature of those services are not respectively limited and defined.



Rate of pay compensation is preferable when:

  1. the indirect costs and profit would be tied directly to extent of services utilized.
  2. the indirect costs and profit would be tied indirectly to extent of services utilized.
  3. the indirect costs and profit would NOT be tied directly to extent of services utilized.
  4. overheads are hard to measure.
  5. performance measurement is desired.
  6. None of the choices.

Answer(s): A

Explanation:

Rate of pay compensation is a type of remuneration which establishes a specific rate of pay in the agreement applicable for each classification of employee. You would want to use this if the indirect costs and profit would be tied directly to extent of services utilized. For this to work the contractual rates for each classification must be carefully defined.



that dictate the way in which a contractor must maintain its It is the
accounting system.

  1. CAS
  2. GASB
  3. GSP
  4. IAS
  5. None of the choices.

Answer(s): A

Explanation:

It is the Cost Accounting Standards (CAS) that dictate the way in which a contractor must maintain its accounting system. In particular it tells how contractors should account for certain types of costs. They generally apply to any negotiated contract over $500, 000. Sealed bid contracts, HOWEVER, are not subject to the CAS. The two types of CAS coverage are "modified" coverage and "full" coverage.



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