Preview Questions Defense Contract Manager | Role Specific Skill

Question 1: In aerospace and defense contracts, how does "SOX" (Sarbanes-Oxley Act) affect regulatory compliance and financial reporting?

Which action should you take?

Choose only one option

SOX is focused only on IT compliance, not on contract management

SOX mandates internal controls and financial reporting transparency, ensuring defense contractors comply with financial and auditing standards

SOX does not apply to contracts funded by the Department of Defense

SOX applies only to publicly traded companies, not defense contractors

Question 2: What role does "Regulatory Reporting" play in maintaining compliance in long-term defense contracts?

Which action should you take?

Choose only one option

Regulatory reporting is irrelevant when working with subcontracts

Regulatory reporting simplifies compliance by eliminating documentation

Regulatory reporting ensures that contractors provide accurate and timely documentation on compliance with laws and contract terms

Regulatory reporting only applies to audit findings, not compliance

Question 3: How do you address cost overruns in a defense contract when managing financial risk?

Which action should you take?

Choose only one option

By minimizing the number of contractors to reduce cost variability

By ignoring cost overruns as long as they do not impact deadlines

By reducing the scope of work to lower the project costs

By negotiating cost ceilings, implementing regular cost audits, and setting financial penalties for non-compliance

Question 4: What is the significance of "Earned Value Management" (EVM) in tracking financial performance in defense projects?

Which action should you take?

Choose only one option

EVM is only applicable in the software industry

EVM integrates project scope, schedule, and cost data to provide a clear picture of financial performance and project status

EVM focuses solely on tracking costs, ignoring performance and schedule

EVM is irrelevant in defense projects where costs are fixed

Question 5: How does "ITAR Compliance" impact the handling of sensitive information in aerospace defense contracts?

Which action should you take?

Choose only one option

ITAR ensures that sensitive military data and technology are controlled and not disclosed to unauthorized foreign entities

ITAR only applies to software, not hardware or physical systems

ITAR is irrelevant if the contractor is located outside the U.S.

ITAR compliance focuses only on export control regulations, not on internal security measures

Question 6: When negotiating terms for cost-plus contracts in the aerospace defense sector, what key element should a defense contract manager focus on?

Which action should you take?

Choose only one option

Assuming that the contractor will manage costs without oversight

Ignoring cost overruns and only focusing on project milestones

Setting an arbitrary profit margin without any cost monitoring

Ensuring that the profit margin is clearly defined and that cost overruns are monitored closely