CDFM Module 2- Ideal 550 Questions
and Correct Answers for CDFM Module 2
Exam Prep Latest (New!)
Section 1: PPBE Process and Budget Formulation
1. The Planning, Programming, Budgeting, and Execution (PPBE) process is:
A. A biennial process managed by Congress
B. An annual process managed by the President
C. A cyclical resource allocation process linking national strategy to defense
programs and budgets
D. A procurement planning system for major weapons systems
Rationale: PPBE is the DoD's resource allocation process that links national security
strategy to defense programs and budgets through a structured, cyclical approach. It
replaces the earlier Planning, Programming, and Budgeting System (PPBS) .
2. The Defense Planning Guidance (DPG) concludes which phase of the PPBE
process?
A. Budgeting Phase
B. Programming Phase
C. Planning Phase
D. Execution Phase
Rationale: The DPG, issued by the Secretary of Defense, concludes the Planning phase.
It translates the National Defense Strategy into specific planning priorities, capability
requirements, and fiscal guidance for the Programming phase .
,3. The Program Objective Memorandum (POM) is submitted by:
A. The Secretary of Defense
B. Each DoD Component
C. The President through OMB
D. The Chairman of the Joint Chiefs
Rationale: Each DoD Component submits a Program Objective Memorandum (POM) at
the end of the Programming phase. The POM proposes how the Component intends to
allocate fiscal resources across its programs to meet defense requirements .
4. What document records the approved DoD program and resources for the
budget year plus four out-years?
A. Program Objective Memorandum (POM)
B. Budget Estimate Submission (BES)
C. Future Years Defense Program (FYDP)
D. Defense Planning Guidance (DPG)
Rationale: The FYDP is the official database that records the approved DoD program
across the budget year plus the four out-years (five years total). It is the principal output
that links resources to programs in the PPBE process .
5. The Budget Estimate Submission (BES) is submitted during which phase?
A. Planning Phase
B. Programming Phase
C. Budgeting Phase
D. Execution Phase
Rationale: The BES is the Component's detailed budget request submitted to OSD
during the Budgeting phase of PPBE. It provides the detailed justification for the
program and resource requirements .
,6. Program Budget Decisions (PBDs) are issued by:
A. GAO
B. Congress
C. OSD analysts during the Budget Review process
D. Each DoD Component
Rationale: Program Budget Decisions reflect SECDEF decisions regarding appropriate
program and funding levels. They are drafted by OSD analysts during the Budget Review
(or Fall Review) and provide direction to Components for incorporation into the
President's Budget .
7. The Chairman's Program Assessment is prepared by:
A. OMB
B. The Chairman of the Joint Chiefs of Staff
C. The Secretary of Defense
D. Each Service
Rationale: The Chairman's Program Assessment (CPA) is prepared by the Chairman of
the Joint Chiefs of Staff. It checks the balance and capabilities of composite force and
support levels recommended by Service POMs .
8. The Defense Resources Board (DRB) is responsible for:
A. Auditing financial statements
B. Reviewing major budget and program issues and developing decision options
C. Approving all acquisition contracts
D. Setting federal accounting standards
Rationale: The DRB is a senior-level forum that considers the effects of resource
decisions on baseline cost, schedule, and performance of major acquisition programs. It
identifies major issues, analyzes them, and develops decision options for the Secretary
of Defense .
, 9. A Major Budget Issue Review is conducted when:
A. All budget issues are resolved
B. SECDEF and DEPSEC need to resolve Component policy or budget issues that
displace other programs
C. The budget is submitted to Congress
D. The fiscal year ends
Rationale: Major Budget Issue Reviews are conducted when SECDEF and DEPSEC must
resolve Component policy or budget issues that have not yet been resolved. Resolution
of these issues may displace other programs within the fixed DoD topline .
10. Supplemental appropriations are:
A. Part of the regular annual budget
B. Requests for funds in addition to amounts already appropriated
C. Permanent appropriations
D. Continuing resolutions
Rationale: Supplemental appropriations are requests for funds in addition to amounts
already appropriated for the fiscal year. They cover unanticipated needs that arise
during the execution year .
Section 2: Budget Execution and Fiscal Control
11. Which OMB Circular governs the instruction of budget execution?
A. OMB Circular A-11
B. OMB Circular A-34
C. OMB Circular A-76
D. OMB Circular A-123
and Correct Answers for CDFM Module 2
Exam Prep Latest (New!)
Section 1: PPBE Process and Budget Formulation
1. The Planning, Programming, Budgeting, and Execution (PPBE) process is:
A. A biennial process managed by Congress
B. An annual process managed by the President
C. A cyclical resource allocation process linking national strategy to defense
programs and budgets
D. A procurement planning system for major weapons systems
Rationale: PPBE is the DoD's resource allocation process that links national security
strategy to defense programs and budgets through a structured, cyclical approach. It
replaces the earlier Planning, Programming, and Budgeting System (PPBS) .
2. The Defense Planning Guidance (DPG) concludes which phase of the PPBE
process?
A. Budgeting Phase
B. Programming Phase
C. Planning Phase
D. Execution Phase
Rationale: The DPG, issued by the Secretary of Defense, concludes the Planning phase.
It translates the National Defense Strategy into specific planning priorities, capability
requirements, and fiscal guidance for the Programming phase .
,3. The Program Objective Memorandum (POM) is submitted by:
A. The Secretary of Defense
B. Each DoD Component
C. The President through OMB
D. The Chairman of the Joint Chiefs
Rationale: Each DoD Component submits a Program Objective Memorandum (POM) at
the end of the Programming phase. The POM proposes how the Component intends to
allocate fiscal resources across its programs to meet defense requirements .
4. What document records the approved DoD program and resources for the
budget year plus four out-years?
A. Program Objective Memorandum (POM)
B. Budget Estimate Submission (BES)
C. Future Years Defense Program (FYDP)
D. Defense Planning Guidance (DPG)
Rationale: The FYDP is the official database that records the approved DoD program
across the budget year plus the four out-years (five years total). It is the principal output
that links resources to programs in the PPBE process .
5. The Budget Estimate Submission (BES) is submitted during which phase?
A. Planning Phase
B. Programming Phase
C. Budgeting Phase
D. Execution Phase
Rationale: The BES is the Component's detailed budget request submitted to OSD
during the Budgeting phase of PPBE. It provides the detailed justification for the
program and resource requirements .
,6. Program Budget Decisions (PBDs) are issued by:
A. GAO
B. Congress
C. OSD analysts during the Budget Review process
D. Each DoD Component
Rationale: Program Budget Decisions reflect SECDEF decisions regarding appropriate
program and funding levels. They are drafted by OSD analysts during the Budget Review
(or Fall Review) and provide direction to Components for incorporation into the
President's Budget .
7. The Chairman's Program Assessment is prepared by:
A. OMB
B. The Chairman of the Joint Chiefs of Staff
C. The Secretary of Defense
D. Each Service
Rationale: The Chairman's Program Assessment (CPA) is prepared by the Chairman of
the Joint Chiefs of Staff. It checks the balance and capabilities of composite force and
support levels recommended by Service POMs .
8. The Defense Resources Board (DRB) is responsible for:
A. Auditing financial statements
B. Reviewing major budget and program issues and developing decision options
C. Approving all acquisition contracts
D. Setting federal accounting standards
Rationale: The DRB is a senior-level forum that considers the effects of resource
decisions on baseline cost, schedule, and performance of major acquisition programs. It
identifies major issues, analyzes them, and develops decision options for the Secretary
of Defense .
, 9. A Major Budget Issue Review is conducted when:
A. All budget issues are resolved
B. SECDEF and DEPSEC need to resolve Component policy or budget issues that
displace other programs
C. The budget is submitted to Congress
D. The fiscal year ends
Rationale: Major Budget Issue Reviews are conducted when SECDEF and DEPSEC must
resolve Component policy or budget issues that have not yet been resolved. Resolution
of these issues may displace other programs within the fixed DoD topline .
10. Supplemental appropriations are:
A. Part of the regular annual budget
B. Requests for funds in addition to amounts already appropriated
C. Permanent appropriations
D. Continuing resolutions
Rationale: Supplemental appropriations are requests for funds in addition to amounts
already appropriated for the fiscal year. They cover unanticipated needs that arise
during the execution year .
Section 2: Budget Execution and Fiscal Control
11. Which OMB Circular governs the instruction of budget execution?
A. OMB Circular A-11
B. OMB Circular A-34
C. OMB Circular A-76
D. OMB Circular A-123
