Assignment:
Question 1 The procedures for review of subcontract costs are identical to those used in reviewing the prime contractor's total proposal. (T or F)
Question 2 Where a number of contracts are being performed simultaneously, or where contracts and commercial work are being performed in the same plant, the government generally desires that overtime be included in direct labor. (T or F)
Question 3. Start-up costs should always be treated as direct cost. (T or F)
Question 4 Should cost analysis assumes the use of the contractor's existing work force, methods, materials, facilities or management and operating system. (T or F)
Question 5 As the contractor's work force gains experience with the item, spoilage costs should increase. (T or F)
Question 6 The most acceptable way to allocate general and administrative expense is as a percentage of total manufacturing cost or some other cost input base representing the total business activity of the business unit. (T or F)
Question 7 Price justification is the same as price analysis. (T or F)