CDFM Module 2 Practice Questions

What law identifies the Chairman of the Joint Chiefs of Staff as the Senior ranking member of the Armed Forces?

The military operational chain of command runs from the President to whom?

The Commanders of the Combatant Commands are responsible to [blank_start]whom[blank_end] for accomplishing the assigned military mission.

The Chairman of the Joint Chiefs of Staff is the principal military advisor to which officials and or organizations?

The [blank_start]President[blank_end] serves as the Chairman of the National Security Council.

Name the three major phases of the PPBE process that result in the DoD portion of the President's Budget that is submitted to Congress?

[blank_start]What[blank_end] is the name of the process used by DoD to determine the dollar amounts for programs to be submitted to Congress as part of the President's Budget.

What is the title of the senior OSD official responsible for the planning phase of the PPBE process?

What is the title of the senior OSD official responsible for issuing programming guidance?

What is the title of the senior OSD official who is the principal advisor and assistant to the SECDEF for budget and fiscal matters?

The Under Secretary of Defense (Acquisition, Technology & Logistics) serve as the Chairman of the [blank_start]Defense Acquisition Board.[blank_end]

Assume today's date is 1 March 2014 and your organization knows about a new project requirement that will require its initial funding in FY 2021. What is the first PPBE-related document in which you could identify resources for that requirement?

What is the title of the final document of the planning phase?

[blank_start]What[blank_end] is the title of the document prepared by the D, CAPE and USD(C) in the May to June time frame that provides guidance to Components for preparation of their POM and BES submissions.

Future Years Defense Program (FYDP) is the name of the automated database that summarizes all forces, resources, and equipment associated with programs approved by the Secretary of Defense.

What is the phase of the PPBE process in which programmatic decisions are translated into requested resources in an appropriations format?

What is the name of the document prepared by the Joint Staff after its review of POMs submitted by the Military Departments that focuses on the balance and capabilities contained in those POMS?

Following review of a Component's budget submission and a potential budget hearing in the fall timeframe, the reviewing USD(C) budget analyst prepares a draft document that is submitted to the DEPSECDEF or SECDEF for a decision. Once signed by one of those senior officials, what is that document called?

After all resource-related decisions have been made by the DEPSECDEF or SECDEF to determine the Defense portion of the President's Budget, the USD(C) posts final decisions into a database in the proper appropriation account format. What is the title of that database?

Advance Procurement is an exception to what funding policy?

There are two primary methods, [blank_start]expense[blank_end] and [blank_start]investment[blank_end], by which DoD obligates the vast majority of its appropriations.

Assume an agency has issued an Economy Act order to another Federal agency for specific services, the cited appropriation has gone into an expired status, and the servicing agency has neither provided the ordered services nor has entered into an authorized contract with another entity to provide the ordered services. The agency cannot deobligate the funds.

[blank_start]Transfer of funds[blank_end] is the term used for shifting funds between appropriations.

What is the long -term financial goal of a working capital fund?

A working capital fund has an officer (O-4) properly assigned to the organization and that officer is doing the work that would normally be performed by a GS-13. For managerial cost accounting purposes, is the "cost" of that officer's pay and benefits "charged" at the military O-4 rate or the civilian GS-13 rate?

Assume your organization overpaid a contractor on a contract awarded with an appropriation that is now in the cancelled status, and the contractor has sent in a check for that overpayment. What can your organization legally do with that refund from the contractor?

Monies not appropriated by Congress that are generated primarily from the sale of goods and services are known as what?

Fill in the blanks.

Label the diagram.

A key DoD principal is the [blank_start]USD(C),[blank_end] who as the Chief Financial Officer (CFO) of Defense, acts as resource consultant and advisor the Secretary of Defense, as well as manager and arbiter of the Defense resource management process.

The OSD is the principal staff element used by the Secretary and Deputy Secretary of Defense to exercise authority, direction and control over the Department of Defense. It includes the offices of the Under Secretaries:

Who are the standing Principal Members of the National Security Council?

Who are the National Security Council Statutory Advisers?

Who are the standing Participants on the National Security Counsel?

The [blank_start]National Security Strategy[blank_end] emerges from the National Security Council.

The Quadrennial Defense Review is required by law to be submitted to Congress in February of the year the President takes office.

The National Military Strategy addresses objectives in the DoD Strategic Plan that require a military response. It is developed by:

Both the JCS and Combatant Commanders play a major part in the planning phase PPBE. The Joint Staff develop the [blank_start]National Military Strategy[blank_end] from which the [blank_start]Defense Planning guidance[blank_end] is developed. Each Combatant Commander prepares an [blank_start]Integrated Priority List[blank_end] of resource requirements that are prioritized across service lines.

What are the three key support systems that must work in concert to ensure consistent decision making while delivering timely cost effective capability solutions to the warfighter community?

The [blank_start]JCIDS[blank_end] is a systematic method established by the Joint Chiefs of Staff to assess gaps in the military joint warfighting capabilities and to recommend solutions to fill these gaps.

The final document in the planning phase is the _________________________ , which promulgates Defense policy, strategy, force planning, resource planning, and fiscal guidance.

The planning process begins about [blank_start]a year and a half[blank_end] in advance of the fiscal year in which the budget authority will be requested.

Combatant Commands submit their Program Objective Memorandum (POM) and Budget Estimate Submission (BES) directly to OSD.

The Joint Staff conducts a review of the POMs at the same time the OSD staff is conducting its review. The review focuses on the balance and capabilities of the forces contained in the POMs. What is the title of this review?

Place the correct document title on the description.

Place the appropriation category on the description/attributes.

The [blank_start]Full[blank_end] Funding Policy applies to O&M and MILPERS. The intent is provide only those funds required to obligate for expenses associated with normal operations of DoD activities for a 12 month period.

The [blank_start]Incremental[blank_end] Funding Policy applies to RDT&E. This policy provides only those fund required for work in a given fiscal year are to be included in the RDT&E budget request for the fiscal year.

The rule governing the computation for procurement and military construction appropriations is called the [blank_start]full[blank_end] funding policy.

[blank_start]Advanced Procurement[blank_end] can be described as funds to procure certain components, material, or effort in advance of the end item buy, to preclude serious and costly fluctuation in program continuity. It may be used to maintain critical skills that would otherwise be lost between [blank_start]Engineering and Manufacturing[blank_end] Development and Full-Rate Production and or to protect the schedule by providing necessary components at the right time for incorporation into the production of the weapon system. The authorization for the use of [blank_start]advance procurement[blank_end] funds limits the [blank_start]Milestone Decision Authority's[blank_end] flexibility so it should only be used when the economic benefits are significant.

What is defined as the process, planning and ultimate contract but which the government may contract for the purchase of supplies or services for more than one, but normally not more than five program years?

Enter the number of years that correspond to the status of funds (columns) and the appropriation.

If an appropriation is a CURRENT phase, it is available for new obligations, increased scope on existing obligations, payments and adjustments.

If an appropriation is in an Expired phase, it is NO LONGER AVAILABLE for payments and adjustments to existing obligations made when account was "current".

If an appropriation is in CANCELLED status, it is available to make adjustments to and expenditures to liquidate previously made obligations.

What are the most common types of obligation documents?

A [blank_start]project order[blank_end] is used to order work or services from another DoD entity for effort that extends beyond the fiscal year for maintenance or production. [blank_start]Economy Act Orders[blank_end] are intragovernmental orders that will produce a useful service or item by the end of the fiscal year. The unexecuted portion of the order must be deobligated when the cited appropriation expires.

When the funds are shifted within the same appropriation account, it is a [blank_start]reprogramming[blank_end] action. When the funds are shifted between appropriation accounts, it is a [blank_start]transfer[blank_end] action.

Place the reprogramming and transfer of funds limits along with the level of control and obligation available amounts on the chart.

[blank_start]Stock Funds[blank_end] dealt with procuring material in volume from commercial sources and holding it in inventory. [blank_start]Industrial Funds[blank_end] were funds that provided industrial and commercial goods and services, such as depot maintenance, transportation, and research and development.

During the five-year period in which accounts remain in an expired state, obligations may be adjusted upward or downward and disbursements made.

[blank_start]Category A[blank_end] - [blank_start]Mission Sustaining Programs[blank_end] - These programs are considered most essential in meeting the organizational objectives of the Military Services. The programs shall be supported almost entirely with appropriated funds (APF) with the use of NAF limited to specific instances where APF are prohibited or where NAF is essential for the operation of a facility or program. [blank_start]Category B[blank_end] - [blank_start]Community Support Programs[blank_end] - These programs satisfy the basic physiological and psychological needs of Service members and families, providing, to the extent possible, the community support systems that make DoD installations temporary home towns for a mobile military population. [blank_start]Category C[blank_end] - [blank_start]Revenue Generating Programs[blank_end] - Activities in this group have the business capability of generating income to cover most of their operating expenses, but lack the ability to sustain themselves based purely on their business activity.

The Defense Acquisition System is the management process that guides DoD acquisition programs and is basically the process by which programmatic risk is managed. What are the three programmatic risks that must be successfully managed?

What are the appropriations that may be used to fund an acquisition program?

What is the acquisition approach that delivers capability to the war fighter in a set of increments spread over time - with a known desired end-state capability - rather than in a single effort, because technology is not yet available to provide that end-state capability?

What is the term used to describe dollars shown in the life-cycle cost estimate wherein the effects of inflation are not considered?

What is the term used to describe dollars used for programming and budgeting purposes wherein the effects of inflation are considered?

What cost structure does MIL-STD-881C represent?

[blank_start]Cost as an Independent Variable[blank_end] is the concept is based on the axiom that the best time to reduce cost is early in the process.

Which cost estimating method is based on direct comparison with historical information of one similar system?

Which cost estimating method is known as a statistical top-down method?

Which cost estimating method requires extensive knowledge other product or process?

What are the methods/steps in conducting the Delphi Technique ? 1. [blank_start]____________[blank_end] 2. [blank_start]____________[blank_end] 3. [blank_start]____________[blank_end] 4. [blank_start]____________[blank_end] 5. [blank_start]____________[blank_end]

[blank_start]What[blank_end] is the theory that as the quantity of output doubles, the man-hours required to produce the quantity decreases at a fixed rate.

What is the name of the integrated management tool intended to relate contract actual performance on a contract to the contractor's planned cost and schedule, that measures the work progress in objective terms, and that states the value of the work completed in dollars?

What is the EVM-related term when there is a difference between budgeted cost of work performance (BCWP) and actual cost of work performed (ACWP) on a cost reimbursable contract?

[blank_start]Cost-benefit Analysis[blank_end] is a systematic approach to the problem of choosing the best method of allocating scarce resource to achieve a given objective.

Which of the below are examples of Quantifiable Benefits?

[blank_start]Mean[blank_end] is the arithmetic average. [blank_start]Mode[blank_end] is the most frequent score in a distribution of scores. [blank_start]Median[blank_end] is the middle of arrayed values.

[blank_start]Correlation[blank_end] measures the degree of relationship between two or more variables.

For a perfect correlation to exist, what would be the coefficient?

When evaluating a proposed investment or project with costs and benefits occurring not only in the current year but also future years, it is necessary to "bring back to today's dollars" all those costs and benefits. What is the process determining?

Place the DoD Decision Support Systems in the correct bubble given their oversight.

The [blank_start]JCIDS[blank_end] is a systematic method established by the Joint Chiefs of Staff for assessing gaps in military joint warfighting capabilities and recommending solutions to resolve these gaps.

Fill in the blanks using the titles and terms below.

Pick the overarching Acquisition policy that matches the description: [blank_start]Flexibility.[blank_end] There is no best way to structure a program. Strategies and oversight shall be tailored to fir the particular conditions of the program [blank_start]Responsiveness.[blank_end] Advanced technology should be integrated at the earliest possible time. [blank_start]Innovation.[blank_end] Initiatives and practices that reduce cycle time and cost should be adopted and teamwork should be encouraged. [blank_start]Discipline.[blank_end] The program should comply with applicable statutes and regulations and program goals should be identified in terms of cost, schedule and performance parameters. [blank_start]Streamlined and Effective Management.[blank_end] Responsibilities should be decentralized and credibility of cost, schedule, and performance reporting maximized.

The foundation of a sound and credible cost estimate is a well-defined program; it is essential to know the details of what is to constitute that acquisition program in order to prepare a valid estimate of its lifecycle cost. The document used to capture that detailed information is known as the [blank_start]Cost Analysis Requirements Description.[blank_end]

Match the life cycle cost categories to the description: [blank_start]Research & Development.[blank_end] Costs of all research and development, from program initiation through the Full Rate Production Decision. [blank_start]Investment.[blank_end] Total cost of procuring the prime equipment; related support equipment, initial training, initial and war reserve spares, pre-planned product improvements, and military construction. [blank_start]Operations and Support.[blank_end] Direct and indirect costs incurred in using the system, e.g. personnel maintenance, and sustaining investment. [blank_start]Disposal.[blank_end] Includes demilitarization, detoxification, long-term waste storage, environmental restoration, and related costs.

For ACAT I programs, there are normally three life cycle cost estimates prepared: 1. The initial cost estimate is normally done by the [blank_start]Program Management Office[blank_end]. This initial Estimate is known as the [blank_start]Program Office Estimate[blank_end] 2. The second cost estimate is normally done by the [blank_start]Service/Component Cost Analysis Agency[blank_end], who is independent of the acquisition chain of command. This estimate is known as the [blank_start]Component Cost Estimate.[blank_end] 3. The third cost estimate is normally done by the [blank_start]D, CAPE[blank_end]. This estimate is know as the [blank_start]Independent Cost Estimate[blank_end]. Title 10, US Code Chapter 144 Section 2434 requires that SECDEF consider an independent estimate of the lifecycle cost of a MDAP prior to granting Milestone B and C approval.

The [blank_start]program acquisition unit cost[blank_end] is defined by USC 2432 as the amount found by dividing the total cost for development and procurement of, and system specific military construction for, the acquisition program by the number of fully configured end items to be produced for the acquisition program. The [blank_start]average procurement unit cost[blank_end] is the amount found by dividing the total of funds programmed to be available for obligation for procurement by the number of fully-configured end items to be procured.

[blank_start]Development Cost.[blank_end] Includes all RDT&E contract and in-house activities needed to design and test the system. Flyaway Cost. Refers to the cost of procuring prime mission equipment. [blank_start]Weapon System Cost.[blank_end] Includes costs for Prime Mission and Support Equipment, along with warranties, engineering changes, and the first destination transport costs. [blank_start]Procurement Cost.[blank_end] Includes all Weapon System Costs, plus costs for initial spares and repair parts. Used to compute APUC. [blank_start]Program Acquisition Cost.[blank_end] Refers to the complete cost of a ready-to-operate system, including Development Costs and Procurement and Facilities Costs. Used to compute PAUC. [blank_start]Operating and Support Cost.[blank_end] All costs associated with operating, modifying and maintaining and supporting a system in the DoD inventory. [blank_start]Life Cycle Cost.[blank_end] The total cost to the Government of a program over its full, useful life.

Place the steps for the economic analysis process in the correct order: 1. [blank_start]Establish Objective[blank_end] 2. [blank_start]Formulate Assumptions[blank_end] 3. [blank_start]Identify Constraints[blank_end] 4. [blank_start]Determine/identify alternatives[blank_end] 5. [blank_start]Est. Cost & Benefits for Alternatives[blank_end] 6. [blank_start]Compare Alternatives[blank_end] 7. [blank_start]Perform Sensitivity Analysis[blank_end] 8. [blank_start]Report Results[blank_end]

If Actual Cost of Work Performed (ACWP) is less than Budgeted Cost of Work Performed the Cost Variance is: [blank_start]Favorable[blank_end]

If the Budgeted Cost of Work Scheduled (BCWS) is more than the Budgeted Cost of Work Planned (BCWP) , the schedule variance is: [blank_start]Favorable[blank_end]

Because it is not always known if the work done or not ye done is on the contract's critical path, it is not possible with certainty whether the contract is "behind, ahead, or on" schedule without having more information.

What is radical redesign of key business processes that involves examination of the fundamental process itself?

What is the process of measuring and comparing one's performance against "Best-in-class" organizations and then adapting the best practices of those organizations to improve one's own performance?

In Federal agencies, how often must strategic plans required under the GPRA Modernization Act of 2010 be updated? [blank_start]4 years[blank_end]

Federal agencies are required to submit to OMB and Congress several financial-related reports on an annual basis. If the agency chooses to submit a consolidated report to satisfy that requirement it is called the Performance and Accountability Report (PAR). Alternatively, the agency may submit separate financial reports. What report or reports has DoD chosen to submit to satisfy the requirement?

What is the term for anything produced by an organization that can be tabulated, calculated, or recorded and can be expressed in a quantitative or qualitative measure?

What is the name of the process in which the intent is to shift functions and responsibilities, in whole or in part, from the Government to the private sector? [blank_start]Privatization[blank_end]