Module 4 Assignment

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Athens State University *

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361

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Accounting

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Apr 3, 2024

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docx

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Module 4 Assignment Before beginning this homework assignment, please make sure you have gone through all materials under Reading, Lecture Notes, and Lecture Video. There are 10 homework questions that will walk you through the Module 4 slides. Type your answers in this document, and submit as a Word document in Canvas. MacKenzie Maddox 1. The set of indirect cost rates for future periods that contractors use for contract proposals is called what? a. Indirect cost submission  b. Indirect proposal c. Indirect rate forecast d. Indirect cost analysis 2. Historical and forecast data are both needed for estimating costs for proposals.     ( True or False?) ______ a. True b. False 3. Developing indirect rate forecasts for cost estimate proposals is something that the government contract accountant should do alone.   (True or False?) a. True b. False 4. What is the government concerned about in a cost and pricing data examination? Select all that apply A. forecasted labor hours B. direct and indirect costs
C. how the contractor made the estimates D. how forecasted labor dollars were escalated 5. Price is composed of ____ cost____________ and _______ markup___________. (Fill in the blanks.) 6. Rates should be analyzed at least ____ quarterly __________ and _____ adjusted ________ for major discrepancies between actuals and those _____ billed ________. (Fill in the blanks. Choose from the following words: quarterly, annually, daily, adjusted, final, initial, target, billed) 7. After settlement of final indirect rates, the contractor submits a completion invoice and the ____________.     (Choose one.) a. indirect cost electronically b. incurred cost electronically c. indirect rate forecast d. historical cost rationale 8. Label each description with its respective indirect rate: (Choose from the following terms: Provisional, Target, Interim Billing, Final, Actual) a. Computed by dividing the total amount of the cost pool by the total amount of the direct cost element(s). Dynamic and changes with each period as costs are incurred and recorded in the General Ledger. _ Actual Indirect Rate ___________ b. The rate determined by budgets or forward pricing and approved by audit of an outside firm or agency. This rate is static and only changes with authorization from the outside firm or agency. This rate is normally used in proposals and in billing for Cost Plus type contracts. ___ Provisional Indirect Rate ____________ c. The rate determined by the company as a goal rate based on budgets. This rate may be the same as the provisional rate and is usually a static rate, only changing once or twice a year. ______ Target Indirect Rate _______________ 9. Contractors are ____ responsible _________ and ___ liable _________ for any government property in their possession, unless otherwise provided by the contract. (Fill in the blanks.) 10. If the final actual indirect rates are ____ greater _______ than the provisional billing rates, the contractor may be able to recover additional money from the government. If the final actual indirect rates are ____ lower _______ than the provisional billing rates, the contractor owes the variance back to the government. (Fill in the blanks.)
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