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NCMA Certified Professional Contracts Manager Sample Questions (Q124-Q129):

NEW QUESTION # 124
The cost-plus-a-percentage-of-cost contract provides for the seller to receive reimbursement for its actual cost and a profit component, called __________, equal to some predetermined percentage of its actual costs.

Answer: A


NEW QUESTION # 125
Knowing how to capture, document, and share knowledge is an example of _________.

Answer: C

Explanation:
The correct answer is A because the ability to capture, document, and share knowledge is most closely associated with situational assessment within the CMBOK Learn domain. In contract management, situational assessment involves understanding the operating environment, recognizing what information is important, preserving lessons learned, and making that knowledge available for future decision-making. This includes collecting experience from prior contracts, documenting outcomes, identifying what worked or failed, and sharing those insights across the organization so contract managers can improve future planning, performance oversight, and risk responses.
This concept fits the Learn domain because NCMA emphasizes that contract management is not only about executing transactions, but also about building organizational capability through knowledge management , continuous improvement, and informed judgment. Captured knowledge supports stronger acquisition planning, better solicitation development, more effective negotiations, and improved post-award administration.
Option B is incorrect because regulatory compliance focuses on following laws, regulations, and policy requirements, not on preserving and transferring organizational knowledge. Option C is incorrect because roles and responsibilities define who performs which contract management functions, rather than how knowledge is retained and shared. Option D is incorrect because contract principles concern foundational concepts governing contract relationships, not the operational practice of knowledge capture and dissemination.
In CMBOK terms, this question reflects the importance of learning systems, lessons learned, and organizational awareness as part of effective professional contract management.


NEW QUESTION # 126
The program management discipline is strengthened and program management tools are improved during which phase?

Answer: A


NEW QUESTION # 127
The __________ activities section of a cash flow statement identifies a company's cash flow from net income or losses.

Answer: B

Explanation:
The correct answer is A (operating) because, in financial management concepts referenced within the NCMA Contract Management Body of Knowledge (CMBOK), the operating activities section of a cash flow statement reflects the cash generated or used by a company's core business operations. This section begins with net income or loss and adjusts for non-cash items (such as depreciation) and changes in working capital to determine actual cash flow.
Operating activities are critical for contract managers because they provide insight into the financial health and sustainability of an organization or contractor. A company with strong operating cash flow is generally better positioned to meet contractual obligations, manage performance requirements, and sustain long-term projects.
Option B ( financing activities ) relates to cash flows from borrowing, repaying debt, or issuing equity, not from net income. Option C ( investing activities ) involves cash used for acquiring or disposing of long-term assets, such as equipment or investments. Option D ( business ) is not a standard classification used in cash flow statements.
Within the CMBOK management competency, understanding financial statements-especially cash flow-is essential for evaluating contractor capability, assessing risk, and ensuring effective financial oversight.
Operating cash flow, in particular, provides a direct link between accounting profit and actual liquidity, making it a key indicator in contract management decision-making.


NEW QUESTION # 128
Which of the following is Correct?

Answer: B


NEW QUESTION # 129
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