Part 2b Chat GPT FAR Questions Flashcards
FAR 31, 37, 42, 44, 46, 53
- Which of the following costs is generally considered unallowable under FAR Part 31?
A) Direct labor costs
B) Advertising costs
C) Material costs
D) Fringe benefits
B) Advertising costs
- What is the general principle under FAR 31.201-2 regarding the allowability of costs?
A) All costs are allowable if incurred by the contractor
B) Costs must be reasonable, allocable, and comply with cost accounting standards
C) Only direct costs are allowable
D) The government will pay all costs, regardless of allowability
B) Costs must be reasonable, allocable, and comply with cost accounting standards
- Under FAR 31.205-6, what type of cost is compensation for personal services?
A) Unallowable unless approved by the contracting officer
B) Allowable, provided the compensation is reasonable for the work performed
C) Always unallowable
D) Allowable only for senior executives
B) Allowable, provided the compensation is reasonable for the work performed
- Which of the following is considered an unallowable cost under FAR 31.205-1?
A) Public relations costs
B) Employee morale and welfare costs
C) Lobbying costs
D) Professional services
C) Lobbying costs
- FAR 31.205-19 addresses the allowability of insurance costs. Which type of insurance cost is unallowable?
A) Insurance for contractor-owned property
B) Insurance for Government-owned property in the contractor’s possession
C) Insurance against fines and penalties
D) Liability insurance for third-party claims
C) Insurance against fines and penalties
- Under FAR Part 31, what is the allowability of legal costs associated with claims against the government?
A) Allowable, provided they are reasonable
B) Unallowable
C) Allowable only if the claim is successful
D) Allowable only with contracting officer approval
B) Unallowable
- Which cost is considered expressly unallowable under FAR 31.205-20?
A) Contributions to employee pension plans
B) Travel expenses
C) Interest on borrowings
D) Direct material costs
C) Interest on borrowings
- According to FAR 31.205-35, relocation costs for employees are:
A) Always unallowable
B) Allowable with restrictions, such as limits on temporary living costs and house-hunting trips
C) Fully allowable without restrictions
D) Allowable only for high-ranking employees
B) Allowable with restrictions, such as limits on temporary living costs and house-hunting trips
- Under FAR 31.205-47, which type of legal expense is allowable?
A) Defense costs in fraud proceedings
B) Legal costs of patent infringement claims against the contractor
C) Costs of litigation resulting from contract disputes with the government
D) Legal expenses for environmental clean-up claims
D) Legal expenses for environmental clean-up claims
- Which of the following fringe benefit costs is allowable under FAR 31.205-6?
A) Employee stock options
B) Employer contributions to pension plans
C) Personal gifts to employees
D) Employer-paid recreational expenses
B) Employer contributions to pension plans
- Under FAR 31.205-16, gains or losses on disposition of depreciable property are:
A) Unallowable
B) Allowable only if the asset is sold for less than book value
C) Allowable based on how the gain or loss is allocated
D) Allowable only if approved by the contracting officer
C) Allowable based on how the gain or loss is allocated
- Which of the following costs related to charitable contributions is addressed under FAR 31.205-8?
A) Always unallowable
B) Allowable if below a certain threshold
C) Allowable if approved by the contracting officer
D) Allowable for non-profit organizations only
A) Always unallowable
- FAR 31.205-13 addresses employee morale costs. Which of the following is allowable?
A) Costs of company-wide employee parties
B) Gifts to individual employees
C) Luxury retreats for high-performing employees
D) Employee awards for performance
D) Employee awards for performance
- Under FAR 31.205-27, which cost related to organization or reorganization is unallowable?
A) Recruiting costs for senior management
B) Severance pay for laid-off employees
C) Costs of incorporation fees
D) Costs related to mergers and acquisitions
D) Costs related to mergers and acquisitions
- FAR 31.205-14 addresses entertainment costs. Which of the following is an allowable entertainment cost?
A) Tickets to sporting events
B) Meals with potential business partners
C) Company-sponsored team-building events
D) None of the above
D) None of the above
- Which of the following types of losses is unallowable under FAR 31.205-23?
A) Losses from bad debts
B) Losses from fluctuations in currency exchange rates
C) Losses from direct labor inefficiencies
D) Losses from accidents
A) Losses from bad debts
- Under FAR 31.205-38, royalties are allowable if:
A) Paid to a foreign entity
B) Necessary for contract performance
C) Paid to related parties
D) Paid in excess of market value
B) Necessary for contract performance
- Which of the following costs of employee stock plans is addressed in FAR 31.205-6?
A) Allowable if the stock is publicly traded
B) Unallowable under all circumstances
C) Allowable only as part of a compensation package
D) Allowable only for small businesses
C) Allowable only as part of a compensation package
- According to FAR 31.205-52, which costs related to asset valuations are unallowable?
A) Appraisal costs for company-owned real estate
B) Depreciation costs on assets
C) Revaluation costs associated with asset sales
D) Costs for routine maintenance of assets
C) Revaluation costs associated with asset sales
. What does FAR Part 37 primarily cover?
A) Acquisition of commercial items
B) Service contracting
C) Procurement of construction services
D) Research and development
B) Service contracting
- Which of the following is not an example of a service contract under FAR Part 37?
A) Janitorial services
B) Landscaping services
C) Equipment lease agreements
D) Advisory and assistance services
C) Equipment lease agreements
- FAR 37.104 provides guidance on personal services contracts. Which of the following is true about personal services contracts?
A) They are prohibited by FAR Part 37
B) They are allowed only when authorized by statute
C) They are the preferred type of service contract
D) They can be used without restrictions
B) They are allowed only when authorized by statute
- According to FAR Part 37, non-personal services contracts are distinguished by which of the following?
A) The government supervises the contractor’s employees
B) The contractor supervises its employees
C) The government directly hires contractor employees
D) The contractor has no control over its employees
B) The contractor supervises its employees
- What is the primary distinction between personal and non-personal services contracts under FAR Part 37?
A) The government’s involvement in contract performance
B) The use of government-furnished property
C) The cost of services
D) The location of the contractor
A) The government’s involvement in contract performance