AGA Exam CGFM Topic 4 Question 43 Discussion

Actual exam question for AGA's Certified Government Financial Manager exam

Question #: 43
Topic #: 4

[All Certified Government Financial Manager Questions]

The feasibility study assures investors and rating agencies necessary and fiscally sound. Consulting engineers are compensated in following ways:

AA lump-sum payment when a project is clearly defined

BCost-plus-fixed-fee basis when a project is not

CA percentage of construction costs, the percentage being based on a scale of civil engineers

DAll of these

Show Suggested Answer

Suggested Answer: D

by Dominque at Apr 10, 2024, 02:30 AM

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Cassi

12 days ago

Ah, I see what you mean. Option C is too narrowly focused on the percentage-based compensation, whereas the question is asking for a more complete answer that covers the various compensation models.

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Well, I was initially thinking option C might be the answer, since it specifically mentions the percentage of construction costs. But then again, that's just one scenario, and the question is asking about the 'following ways' of compensation, implying multiple possibilities.

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Mitsue

15 days ago

Yeah, that's a good point. Option D does seem to be the most comprehensive answer. But I'm curious to hear what the others think. Any other perspectives on this?

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Jerlene

16 days ago

Hmm, I'm leaning towards option D. It seems to encompass all the scenarios described in the question, from a clearly defined project to one that is not well-defined.

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Rashad

18 days ago

I agree. The question is trying to assess our knowledge of the common compensation models used in the industry. We need to carefully analyze each option and determine which one covers the various situations mentioned.

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Glory

19 days ago

This question is definitely testing our understanding of how consulting engineers are typically compensated. I think the key here is to identify which of the options best captures the different scenarios that can arise.

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AGA Exam CGFM Topic 4 Question 43 Discussion

Contribute your Thoughts:

Cassi

Lino

Mitsue

Jerlene

Rashad

Glory