ACQ1010 Module 5 ACTUAL UPDATED QUESTIONS AND CORRECT ANSWERS
Budget Authority (BA) Authority provided by law to enter into obligations that will result in immediate or
future outlays. In the program office, prior to releasing a Request for Proposal
(RFP), the comptroller must verify that you have sufficient BA in the correct
appropriation and fiscal year.
Commitment Is the administrative reservation of funds usually by the local comptroller, in
anticipation of a future obligation. A commitment is the response to a request for a
spending action and ensures that funds are available in the amount requested,
correct FY, and proper appropriation.
Obligation Is the legal reservation of funds to make a future payment of money.
Expenditure Is a charge against available funds and results from a voucher, claim, or other
document approved by competent authority.
Outlay Occurs when the vendor cashes the expenditure check and money flows from the
Treasury to the vendor or supplier.
Defense Staff Level At this level cost estimate is referred to as an Independent Cost Estimate.
Budget Authority (BA) Authority provided by law to enter into obligations that will result in immediate or
future outlays. In the program office, prior to releasing a Request for Proposal
(RFP), the comptroller must verify that you have sufficient BA in the correct
appropriation and fiscal year.
Commitment Is the administrative reservation of funds usually by the local comptroller, in
anticipation of a future obligation. A commitment is the response to a request for a
spending action and ensures that funds are available in the amount requested,
correct FY, and proper appropriation.
Obligation Is the legal reservation of funds to make a future payment of money.
Expenditure Is a charge against available funds and results from a voucher, claim, or other
document approved by competent authority.
Outlay Occurs when the vendor cashes the expenditure check and money flows from the
Treasury to the vendor or supplier.
Defense Staff Level At this level cost estimate is referred to as an Independent Cost Estimate.
