Army Acquisition Exam 2 Diverse Questions with
Correct Solutions Compiled by Global Authorities
Handpicked from Elite Universities Expert-
Reviewed Questions and Answers
Administrative reservation of funds, usually by the local comptroller, in anticipation of a
future obligation? - CORRECT ANSWER- -Commitment
When you sign a purchase slip for your credit Card - CORRECT ANSWER- -Obligation
Serve as the cost input for decisions on whether to start, continue, modify, or terminate
development, production, and fielding of a system. - CORRECT ANSWER- -Life Cycle Cost
Estimates
What are the two purposes of a LCCE - CORRECT ANSWER- -1. Serve as a cost input for
decisions on where to start
2. Provide the basis for budget requests to Congress
What are the four cost estimating techniques - CORRECT ANSWER- -Analogy
Parametric
Engineering
Actual Costs
This estimating technique compares a new system with one or more existing, similar
system - CORRECT ANSWER- -Analogy
This method of estimating cost is the most detailed of all techniques and the most costly to
implement. Bottoms up approach that is very accurate. - CORRECT ANSWER- -Engineering
,What are the three program cost estimates - CORRECT ANSWER- -Program Office Estimate
(POE)
Component Cost Estimate (CCE)
Independent Cost Estimate (ICE)
What is a CARD - CORRECT ANSWER- -Cost Analysis Requirements Description (CARD)
Is used to develop the Program Office Estimate (POE), Component Cost Estimate (CCE),
and Independent Cost Estimate (ICE). - CORRECT ANSWER- -Cost Analysis Requirements
Description (CARD)
What is a CCE - CORRECT ANSWER- -Component Cost Estimate
The total cost of procuring the prime equipment, its related support equipment, facilities,
initial spares, and fielding of the system. - CORRECT ANSWER- -Investment Costs
costs include all costs incurred in using the system
such as:
Personnel
Fuel
Maintenance (unit and depot)
Sustaining investment (replenishment spares)
Training - CORRECT ANSWER- -Operations and Support Costs
requires the program office to prepare a life cycle cost estimate for all ACAT I and ACAT IA
programs, which should cover all costs from program initiation through disposal. -
CORRECT ANSWER- -POE Program Office Estimate
, The Army, Navy, and Air Force Service headquarters have a cost analysis agency that may
be required to prepare a separate and distinct cost estimate on programs. - CORRECT
ANSWER- -CCE - This will be listed as a Component Cost Analysis instead
Is used to develop the Program Office Estimate (POE), Component Cost Estimate (CCE),
and Independent Cost Estimate (ICE). - CORRECT ANSWER- -CARD Cost Analysis
Requirements Description
Five Major Appropriations Category - CORRECT ANSWER- -Research, Development, Test,
and Evaluation (RDT&E)
Procurement
Operation and Maintenance (O&M)
Military Personnel (MILPERS)
Military Construction (MILCON) *
Which funding policy governs: Usable End Items
12-Month Delivery Period
Budget for Fiscal Year of Contract Award - CORRECT ANSWER- -Full Funding
Which documents are produced in PPBE activities - CORRECT ANSWER- -POM and PDM
FYDP covers how many years - CORRECT ANSWER- -10 Years
What is the primary purpose of the FYDP - CORRECT ANSWER- -Force Structure, Personnel
Strength, and resources of DoD
Correct Solutions Compiled by Global Authorities
Handpicked from Elite Universities Expert-
Reviewed Questions and Answers
Administrative reservation of funds, usually by the local comptroller, in anticipation of a
future obligation? - CORRECT ANSWER- -Commitment
When you sign a purchase slip for your credit Card - CORRECT ANSWER- -Obligation
Serve as the cost input for decisions on whether to start, continue, modify, or terminate
development, production, and fielding of a system. - CORRECT ANSWER- -Life Cycle Cost
Estimates
What are the two purposes of a LCCE - CORRECT ANSWER- -1. Serve as a cost input for
decisions on where to start
2. Provide the basis for budget requests to Congress
What are the four cost estimating techniques - CORRECT ANSWER- -Analogy
Parametric
Engineering
Actual Costs
This estimating technique compares a new system with one or more existing, similar
system - CORRECT ANSWER- -Analogy
This method of estimating cost is the most detailed of all techniques and the most costly to
implement. Bottoms up approach that is very accurate. - CORRECT ANSWER- -Engineering
,What are the three program cost estimates - CORRECT ANSWER- -Program Office Estimate
(POE)
Component Cost Estimate (CCE)
Independent Cost Estimate (ICE)
What is a CARD - CORRECT ANSWER- -Cost Analysis Requirements Description (CARD)
Is used to develop the Program Office Estimate (POE), Component Cost Estimate (CCE),
and Independent Cost Estimate (ICE). - CORRECT ANSWER- -Cost Analysis Requirements
Description (CARD)
What is a CCE - CORRECT ANSWER- -Component Cost Estimate
The total cost of procuring the prime equipment, its related support equipment, facilities,
initial spares, and fielding of the system. - CORRECT ANSWER- -Investment Costs
costs include all costs incurred in using the system
such as:
Personnel
Fuel
Maintenance (unit and depot)
Sustaining investment (replenishment spares)
Training - CORRECT ANSWER- -Operations and Support Costs
requires the program office to prepare a life cycle cost estimate for all ACAT I and ACAT IA
programs, which should cover all costs from program initiation through disposal. -
CORRECT ANSWER- -POE Program Office Estimate
, The Army, Navy, and Air Force Service headquarters have a cost analysis agency that may
be required to prepare a separate and distinct cost estimate on programs. - CORRECT
ANSWER- -CCE - This will be listed as a Component Cost Analysis instead
Is used to develop the Program Office Estimate (POE), Component Cost Estimate (CCE),
and Independent Cost Estimate (ICE). - CORRECT ANSWER- -CARD Cost Analysis
Requirements Description
Five Major Appropriations Category - CORRECT ANSWER- -Research, Development, Test,
and Evaluation (RDT&E)
Procurement
Operation and Maintenance (O&M)
Military Personnel (MILPERS)
Military Construction (MILCON) *
Which funding policy governs: Usable End Items
12-Month Delivery Period
Budget for Fiscal Year of Contract Award - CORRECT ANSWER- -Full Funding
Which documents are produced in PPBE activities - CORRECT ANSWER- -POM and PDM
FYDP covers how many years - CORRECT ANSWER- -10 Years
What is the primary purpose of the FYDP - CORRECT ANSWER- -Force Structure, Personnel
Strength, and resources of DoD
