CDFM - MODULE 2 Questions with Correct Solutions
Question:
1. What law identifies the Chairman of the Joint Chiefs of Staff as the senior ranking member
of the Armed Forces?
Answer:
The Goldwater-Nichols DoD Reorganization Act of 1986.
Question:
2. What is the title of the senior OSD official who is the principal advisor and assistant to the
SECDEF for budget and fiscal matters?
Answer:
Undersecretary of Defense (Comptroller)/Chief Financial Officer
Question:
3. What is the title of the final document of the planning phase?
Answer:
Defense Planning Guidance (DPG)
Question:
4. What is the name of the automated database that summarizes all forces, resources, and
equipment associated with programs approved by the Secretary of Defense?
Answer:
Future Years Defense Program (FYPD)
Question:
5. Following a 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 the senior
officials, what is the document called?
Answer:
Resource Management Decision
Question:
6. Advance Procurement is an exception to what funding policy?
Answer:
Full Funding
,Question:
7. 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. What must now be done with those obligated
funds?
Answer:
De-obligate (p. 2.1.67)
Question:
8. What is the term used for shifting funds between appropriations?
Answer:
Transfer action
Question:
9. A working capital fund has an officer (O-4) properly assigned to the organization and the
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?
Answer:
Civilian GS-13 rate (and the proper MILPER account is reimbursed for the amount)
Question:
10. What is the acquisition approach that delivers capability to the warfighter 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?
Answer:
Evolutionary Acquisition
Question:
11. What is the term used to describe dollars shown in the life-cycle cost estimate wherein the
effects of inflation are not considered?
Answer:
Base year dollars or Constant year dollars
Question:
12. What is the term used to describe dollars used for programming and budgeting purposes
wherein the effects of inflation are considered?
,Answer:
Then-year dollars or Current year dollars
Question:
13. What cost structure does MIL-STD-881C represent?
Answer:
Work Breakdown Structure (WBS)
Question:
14. What concept is based on the axiom that the best time to reduce cost is early in the
process?
Answer:
Cost As an Independent Variable (CAIV)
Question:
15. Which cost estimating method is known as a statistical method or top-down method?
Answer:
Parametric Approach
Question:
16. Which cost estimating method extensive knowledge of the product or process?
Answer:
Engineering Approach
Question:
17. What is the theory that as the quantity or output doubles, the man-hours required to
produce the quantity decreases at a fixed rate?
Answer:
Learning Curve Theory
Question:
18. What is the name of the integrated management tool intended to relate contractor 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?
Answer:
Earned Value Management System (EVMS)
, Question:
19. What is the EVM-related term when there is a difference between budgeted cost of work
performed (BCWP) and actual cost of work performed (ACWP) on a cost reimbursement
contract?
Answer:
Cost Variance
Question:
20. Cost Savings, Cost Avoidance, and Productivity Improvements are examples of what type
cost benefits?
Answer:
Quantifiable Benefits
Question:
21. In regards to measures of central tendency, what is a mean? A mode? A median?
Answer:
Mean is the arithmetic average, Mode is the most frequent score in a distribution of scores,
Median is the middle of arrayed values
Question:
22. What does correlation measure?
Answer:
Correlation measures the degree of relationship between two or more variables
Question:
23. For a perfect correlation to exist, what would be the coefficient?
Answer:
1.0
Question:
24. What is a radical redesign of key business processes that involves examination of the
fundamental process itself?
Answer:
Business Process Reengineering (also called Business Process Innovation)
Question:
25. What is the suggested maximum number of participants on a reengineering team?
Answer:
Fewer than 10
Question:
1. What law identifies the Chairman of the Joint Chiefs of Staff as the senior ranking member
of the Armed Forces?
Answer:
The Goldwater-Nichols DoD Reorganization Act of 1986.
Question:
2. What is the title of the senior OSD official who is the principal advisor and assistant to the
SECDEF for budget and fiscal matters?
Answer:
Undersecretary of Defense (Comptroller)/Chief Financial Officer
Question:
3. What is the title of the final document of the planning phase?
Answer:
Defense Planning Guidance (DPG)
Question:
4. What is the name of the automated database that summarizes all forces, resources, and
equipment associated with programs approved by the Secretary of Defense?
Answer:
Future Years Defense Program (FYPD)
Question:
5. Following a 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 the senior
officials, what is the document called?
Answer:
Resource Management Decision
Question:
6. Advance Procurement is an exception to what funding policy?
Answer:
Full Funding
,Question:
7. 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. What must now be done with those obligated
funds?
Answer:
De-obligate (p. 2.1.67)
Question:
8. What is the term used for shifting funds between appropriations?
Answer:
Transfer action
Question:
9. A working capital fund has an officer (O-4) properly assigned to the organization and the
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?
Answer:
Civilian GS-13 rate (and the proper MILPER account is reimbursed for the amount)
Question:
10. What is the acquisition approach that delivers capability to the warfighter 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?
Answer:
Evolutionary Acquisition
Question:
11. What is the term used to describe dollars shown in the life-cycle cost estimate wherein the
effects of inflation are not considered?
Answer:
Base year dollars or Constant year dollars
Question:
12. What is the term used to describe dollars used for programming and budgeting purposes
wherein the effects of inflation are considered?
,Answer:
Then-year dollars or Current year dollars
Question:
13. What cost structure does MIL-STD-881C represent?
Answer:
Work Breakdown Structure (WBS)
Question:
14. What concept is based on the axiom that the best time to reduce cost is early in the
process?
Answer:
Cost As an Independent Variable (CAIV)
Question:
15. Which cost estimating method is known as a statistical method or top-down method?
Answer:
Parametric Approach
Question:
16. Which cost estimating method extensive knowledge of the product or process?
Answer:
Engineering Approach
Question:
17. What is the theory that as the quantity or output doubles, the man-hours required to
produce the quantity decreases at a fixed rate?
Answer:
Learning Curve Theory
Question:
18. What is the name of the integrated management tool intended to relate contractor 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?
Answer:
Earned Value Management System (EVMS)
, Question:
19. What is the EVM-related term when there is a difference between budgeted cost of work
performed (BCWP) and actual cost of work performed (ACWP) on a cost reimbursement
contract?
Answer:
Cost Variance
Question:
20. Cost Savings, Cost Avoidance, and Productivity Improvements are examples of what type
cost benefits?
Answer:
Quantifiable Benefits
Question:
21. In regards to measures of central tendency, what is a mean? A mode? A median?
Answer:
Mean is the arithmetic average, Mode is the most frequent score in a distribution of scores,
Median is the middle of arrayed values
Question:
22. What does correlation measure?
Answer:
Correlation measures the degree of relationship between two or more variables
Question:
23. For a perfect correlation to exist, what would be the coefficient?
Answer:
1.0
Question:
24. What is a radical redesign of key business processes that involves examination of the
fundamental process itself?
Answer:
Business Process Reengineering (also called Business Process Innovation)
Question:
25. What is the suggested maximum number of participants on a reengineering team?
Answer:
Fewer than 10
