NAS 4

Question 1

1. Which of the following is not part of project overhead?

A. Permits
B. Bonds
C. Clerical pay
D. Site cleanup

Answer 1

1. C 6-6

Question 2

2. is an accurate estimate of all the costs that are associated with the project similar.

A. Quantity takeoff
B. Cost plus
C. Percent completion
D. Unit price method

Answer 2

2. A 6-3

Question 3

3. Use information from to help determine accurate job costs.

A. Software packages
B. Subcontractors
C. Owners
D. Previous jobs

Answer 3

3. D 6-3; 6-4

Question 4

4. Which of the following is not a key characteristic of a partnership?

A. May be orally committed
B. Keep separate bank accounts for business necessities
C. All owners have personal responsibility
D. Continuance of organization is case of death of a partner

Answer 4

4. D 2-2

Question 5

5. A job has direct costs of $198,325, project overhead of 9.2% company overhead of 13.9%, and a desired profit of 10.7%. What will the correct bid be?
   A. $265,358
   B. $246,325
   C. $288,914
   D. $299,584

Answer 5

5. D 9.2% + 13.9% + 10.7% = 33.8%
   Therefore, the direct costs are 66.2% of the bid. $198,325 ÷ .662 = $299,584

Question 6

6. A sole proprietor is taxed on .

A. Ordinary income
B. Pass through wages
C. Cost plus fees
D. Gross revenues

Answer 6

6. A 2-1

Question 7

7. The requires performance and payment bonds on federal jobs.

A. Miller Act
B. Haley Act
C. Soros Act
D. Kennedy Act

Answer 7

7. A 3-8

Question 8

8. Generally, oral agreements are just as binding as written agreements except for .

A. contracts involving personal property
B. contracts involving the sale or purchase of land
C. contracts over $1,500
D. contracts over $5,000

Answer 8

8. B 7-9

Question 9

9. is an advantage of leasing equipment.

A. Duration of payments over a longer period making them lower
B. Usually costs are less than purchasing in the long run
C. Certain tax benefits
D. Salvage value

Answer 9

9. A 6-5

Question 10

10. Which of the following is an ineffective selling skill?

A. Listening
B. Interrupt when needed
C. Ask questions
D. Body language

Answer 10

10. B 5-3

Question 11

11. Ethics has to do with all but which of the following?

A. Showing up on the job on time
B. Do what you say you are going to do
C. Doing the right thing
D. Lying to the customer to get the job

Answer 11

11. D 4-2

Question 12

12. For a short term job, the best option is to equipment.

A. Rent
B. Purchase
C. Lease
D. Procure

Answer 12

12. A 6-4; 6-5

Question 13

13. Who is responsible for an employee’s time cards?

A. Property owner
B. Building contractor
C. Employer
D. Employee

Answer 13

13. C 13-12

Question 14

14. The most important aspect of a contract is .

A. Signature
B. Consideration
C. Date
D. Understanding

Answer 14

14. D 7-2

Question 15

15. A contractor is going to purchase the following from a local hardware store.

• 15 feet of ½” Schedule 40 PVC at $0.50 per foot
• 30 feet of 1” Schedule 40 PVC at $0.90 per foot
• 10 feet of 2” Schedule 40 PVC at $1.50 per foot

Answer 15

15. A 15’ x $0.50 per foot = $7.50
    30’ x $0.90 per foot = $27.00
    $7.50 + $27.00 = $15.00 = $49.50
    $49.50 – 3 % = $1.49 discount
    $49.50 - $1.49 = $48.01

Question 16

16. Which of the following is not considered as acceptance to a contract?

A. Signature
B. Consideration
C. Date
D. Counteroffer

Answer 16

16. D 7-2

Question 17

17. To be legal, a contract must not do which of the following?

A. Be possible to perform
B. Non harmful to anyone
C. Non illegal act
D. Be impossible to perform

Answer 17

17. D 7-2

Question 18

18. When starting a business the first thing one should decide is .

A. The legal structure of the business
B. To hire an accountant
C. To hire a lawyer
D. To pay revenues

Answer 18

18. A 2-1

Question 18

19. Who is responsible for FLSA recordkeeping?

A. Architect
B. Employer
C. Lawyer
D. Accountant

Answer 18

19. B 10-4

Question 19

20. You are a monthly tax depositor if your total payroll tax liability for the previous four quarters was less than .

A. $100,000
B. $75,000
C. $25,000
D. $50,000

Answer 19

20. D 14-4

Question 20

21. A partnership is .

A. A relationship between two or more people
B. Shares characteristics of a sole proprietorship and corporate identity
C. Shares generally
D. Contains nonexistence clauses

Answer 20

21. A 2-2

Question 21

22. A is used as a cost model from previous jobs.

A. Conceptual estimate
B. Cost plus method
C. Percent completion method
D. Unit price method

Answer 21

22. A 6-7

Question 22

23. When forming a partnership, potential partners should be asked all of the following except
    before deciding to go into business together.

A. Are we to grow and operate the company long-term?
B. How will profits be distributed?
C. Who is permitted to sign debt instruments?
D. Do partners agree on the nature of the business?

Answer 22

23. C 2-2

Question 23

24. An employer is liable to pay both state and federal employment taxes if wages to employees total
    or more in any quarter of a calendar year.

A. $500
B. $1,000
C. $1,500
D. $7,000

Answer 23

24. C 14-5

Question 24

26. A permit is obtained on Friday, August 1. The materials are to be delivered August 8. The materials are needed when labor begins on August 11. It is estimated that 15 days of labor are required. The crew will work every day, including weekends and holidays. The project is scheduled to be completed on September 8. How may float days are available for the labor for this project? A. 14 B. 16 C. 15 D. 13

Answer 24

26. A The easiest way to solve this is by drawing a calendar on scrap paper. Indicate the project start date and mark off through the actual project completion date. Begin counting with the first day after completion and continue through the original scheduled completion date.

Question 25

25. What is the total project overhead for a project that lasts for months and has he following costs? Labor is $5,000; materials are $10,500; equipment rentals are $2,200; superintendent’s annual salary is $46,000; office rent is $1,800 per month; and office utilities are $750 per month. A. Between $13,001 and $17,000 B. Less than $13,000 C. More than $21,000 D. Between $17,001 and $21,000

Answer 25

25. A $46,000 ÷ 12 months $3,833.33 x 4 months

Question 26

27. Using a straight line depreciation method, what is the yearly depreciation amount for a truck that has an initial cost of $10,000, a salvage cost of $3,000, and a useful life years of 10? A. $700 B. $7,000 C. $1,000 D. $550

Answer 26

27. A 13-10; 13-11

Question 27

28. Which of the following reports demonstrates items completed, in progress and outstanding? A. Daily reports B. Status reports C. Contemporary reports D. Tracking reports

Answer 27

28. B 8-8; 8-9

Question 28

30. A major source of tracking costs is because can indicate a possible problem. A. Overruns B. Under runs C. Profit D. Cutting corners

Answer 28

30. A 8-9; 8-10

Question 29

29. Which of the following establishes a buffer between tasks? A. Contingency time B. Float time C. Continuous time D. Proposed time

Answer 29

29. A 8-2

Question 30

31. When evaluating a subcontractor, one should consider all the following except? A. Are they reliable B. Do they have good customer service skills C. Are they competitively priced D. Are they all men?

Answer 30

31. D 12-1

Question 31

32. Which of the following would typically be covered by a contractor’s comprehensive general liability insurance policy? A. Damage to adjoining property from a dozer accident B. A concrete sidewalk that is cracking due to improper finishing C. Pollution of a river stream due to poor erosion control practices D. Damage to crane that is both rented and operated by you for use on a project

Answer 31

32. A 3-4

Question 32

33. When filing a bond claim, the process is outlined in the language for . A. Common-law bonds B. Government statues C. The sales contract D. The sales agreement

Answer 32

33. A 3-7; 3-8

Question 33

34. Where should depreciation of equipment be first entered? A. General journal B. General ledger C. Disbursement journals D. Job cost records

Answer 33

34. A 13-2

Question 34

35. S corporation taxes are recognized as wages. A. Ordinary income B. Pass through wages C. Cost plus D. Revenues

Answer 34

35. B 2-3

Question 35

36. Of the following, which is not considered the best way to maximize marketing potential? A. My customers B. Competitive advantage C. Growth opportunities D. All listed here are the best

Answer 35

36. D 5-1

Question 36

37. The requires employers to give 60 day notice prior to the closing of a plant and/or massive layoffs. A. USERRA B. CCPA C. ADEA D. WARN

Answer 36

37. D 10-8

Question 37

38. What is used when a sale is charged to a customer or when cash comes in? A. Cash receipts B. Cash receipts and sales journal C. Circular E D. Sales journal

Answer 37

38. B 13-2

Question 38

39. Which of the following is used to obtain an EIN? A. I-9 B. W-2 C. W-4 D. SS-4

Answer 38

39. D 14-1

Question 39

41. Medical treatment means which of the following? A. Visits to physician B. Conducting diagnostic procedures C. First aid D. Management and care of patient

Answer 39

41. D 11-4

Question 39

40. Which of the following items are not added after estimating materials and labor? A. Labor burden B. Subcontractor fees C. Profit D. Material consumption

Answer 39

40. D 6-3

Question 40

42. Which of the following is not an element of a business plan? A. Cover page B. Executive summary employee C. Employee schedule D. Marketing strategy

Answer 40

42. C 1-2

Question 41

43. OSHA records must be kept by an employer if more than employees. A. 1 B. 8 C. 10 D. 11

Answer 41

43. C 11-3

Question 42

44. shows the activity of duration and sequence of tasks to be completed. A. Gantt chart B. Critical Path C. Bar chart D. Float chart

Answer 42

44. C 8-4

Question 43

45. A is used when an owner contracts with one company to complete the construction process from start to finish and purchase land. A. Single prime B. Design/build C. Turnkey D. Fast-track

Answer 43

45. C 7-6