Defense Acquisition University BCF 110 FORMULATION EXAM Introduction to Budgeting Exam

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FORMULATION EXAM: Introduction to Budgeting Exam 1) In late December, the Components revise their final budgets and begin preparing supporting documentation to incorporate the effects of all Resourc... e Management Decisions (RMDs) for inclusion in the President's Budget. True False 2) Advanced Procurement funding information shown on the P-5 budget exhibit should be consistent with that shown on the _________ budget exhibit. P-10 (Advanced Procurement Requirements Analysis) P-3a (Individual Modification) P-1 (Procurement Program) P-21 (Production Schedule) 3) Which one of the following best describes the purpose of the P-3a budget exhibit? Provide budget justification for a particular Procurement line item Provide detailed information regarding monthly production of ACAT I program items Summarize the funding requirements for a particular Procurement appropriation account Provide budget justification for a particular Procurement-funded weapon system modification program 4) The President's Budget that is submitted to Congress on the first Monday in February is for fiscal year that will begin _____. The current fiscal year Two years out In eight months (i.e., 1 October) Four years out 5) Which one of the following best describes the conditions under which a P-1 budget exhibit is required to be submitted? When the program element funding is $1 million or more in any budget year covered by the budget request When any funding is requested under a particular Procurement appropriation When the line item funding is $5 million or more in any of the budget years covered by the budget request When it covers a weapon system modification program whose costs exceed $5 million in any year covered by the budget request 6) Which one of the following best describes the conditions under which an R-4 budget exhibit is required to be submitted? When a major program milestone is scheduled to occur during any budget year covered by the budget request When any funding is requested for a project that is part of a program element in RDT&E budget activities 1, 2, or 3 When a project is part of a program element in RDT&E budget activities 4, 5, or 7 and requires $5 million or more of funding in any budget year covered by the budget request When a project is part of a program element in RDT&E budget activities 4, 5, or 7 and requires $1 million or more of funding in any budget year covered by the budget request 7) What activities would a program office using the Resource Allocation Process shown be involved in during the July 2017 timeframe when allocating its RDT&E funds? (MAGE DESCRIPTION: This chart is associated with the text on the main page. It illustrates the overlap in the management of program resources. As shown here, in July 2017 (FY17), a program office using only Procurement funds might be: - Managing the execution of its FY15, FY16 and FY17 funds; - Tracking the Congressional enactment of its FY18 budget request; - Preparing its portion of the Integrated Program and Budget Review documentation for its FY19-23 funding requirements.) Managing the execution of its RDT&E funds for FY 16 (first year of availability). Preparing its portion of the Program and Budget Review documentation for its FY20-24 POM submission. Managing the execution of its RDT&E funds for FY 17 (second year of availability). Managing the execution of its RDT&E funds for FY 17 (first year of availability). 8) Use the Table of Raw and Weighted Indexes and the Windows Calculator under Accessories to help select the correct answer. An item to be financed by Appropriation A cost $100M in constant FY13 dollars. The program will not be contracting for the item until FY18. Fiscal Year Raw Index (FY13 Base year) Weighted Index (FY13 Base Year) 2012 0.09833 1.0066 2013 1.0000 1.0223 2014 1.0130 1.0395 2015 1.0302 1.0585 2016 1.0488 1.0785 2017 1.0687 1.0990 2018 1.0890 1.1198 2019 1.1097 1.1411 What is the amount that should be budgeted for this item in FY18? 111.9800M 102.2300M 100.6600M 114.1100M 9) Which one of the following is displayed in the P-5a budget exhibit? Production lead time for each end item Initial Spares funding for 1 or 2 budget years and the two years preceding the first budget year Contract award information for each applicable Work Breakdown Structure element Narrative justification for a line item's budget request 10) When is the President's Budget produced in the Budgeting Phase of PPBE cycle? February August-December Spring of each calendar year July/August 11) Which of the following information is displayed in the P-10 budget exhibit? Production and contract forecasts related to each "Advance Procurement" item found on the P-1 Funding information only for the budget year (1 year) 8-year funding details on each "ACAT I" program items listed on the P-21. Forecast details on all the procurement line items that are on the P-1. 12) Which of the following statements is better for the Impact Statement? A. Will lose one man-year of contractor support needed to produce ICBM modernization kits. B. Operational test (OT) of the ICBM modernization program will be delayed 8 months because of delays in producing the ICBM modernization kits; delay in OT will delay fielding of the system for at least one year, delaying the combat readiness of the modified ICBM to the warfighter A Neither statement is appropriate for Impact Statements They are both equal as Impact Statements B 13) DoD funding policies are the ground rules, derived from Congressional direction, concerning the __________ for various budget requests for various appropriations. Reclama Congressional language Programming Amount & timing 14) All of the following are considered a principle player of the Budgeting phase EXCEPT: Service/Component PPBE Action Officers (PEM, RO, DASC) Component Staffs Under Secretary of Defense (Policy) Deputy Secretary of Defense 15) Which one of the following best describes the conditions under which an R-2a budget exhibit is required to be submitted? When an RDT&E program element consists of more than one project When the program element funding is $1 million or more in any budget year covered by the budget request When funding is requested for a particular RDT&E program element When the program element is part of RDT&E budget activities 4, 5, or 7 16) Which one of the following best describes the conditions under which an R-1 budget exhibit is required to be submitted? When it covers a weapon system modification program whose costs exceed $5 million in any year covered by the budget request When any funding is requested under a particular RDT&E appropriation When the program element is part of RDT&E budget activities 4, 5, or 7 When the program element funding is $1 million or more in any budget year covered by the budget request 17) Which one of the following is NOT normally involved in reviewing the information in budget exhibits? OSD Comptroller Staff Component Staff USD Policy Staff Program Office 18) Which one of the following best describes the conditions under which an R-3 budget exhibit is required to be submitted? When the program element is part of RDT&E budget activities 4, 5, or 7 When it covers a weapon system modification program whose costs exceed $5 million in any year covered by the budget request When any funding is requested under a particular RDT&E appropriation When the program element is part of RDT&E budget activities 1, 2, 3, or 6 19) Which of the following is a significant issue of concern for the OSD Budget Analyst during review of budget justification documentation? System quality Program pricing Program milestones System support 20) Which of the following products of the Budgeting Phase includes the component's final budget revisions and supporting documentation that incorporates the effects of all RMDs? Resource Management Decisions (RMD) Budget Review w/OSD-C and OMB President's Budget (PB) Major Budget Issues (MBI) 21) What is the purpose of the Financial Management Regulation, 7000.14-R? Authorizes the type and amounts of appropriations to support defense programs, sets military personnel end strength levels, and establishes policies pertaining to specific programs and to the defense establishment. Provides authorization for major weapon system acquisition programs and military construction projects and establishes procurement quantity ceilings for major weapon systems. Direct statutory and regulatory financial management requirements, systems, and functions for all appropriated and non-appropriated, working capital, revolving, and trust fund activities. 22) The R-1 budget exhibit summarizes the budget requirements for a specific RDT&E appropriation account. Each R-1 budget exhibit line item (program element) is supported by an _____. R-3 (Program Element/Project Cost Analysis) R-4 (Schedule Profile) R-4a (RDT&E Schedule Detail) R-2 (Budget Item Justification) 23) Which of the following is a reason that acquisition programs may lose funding during the PPBE process? The applicable appropriation is unclear No system quality factors Missing system support concept Excessive risk 24) Perform a conversion to compare costs between the two programs below, to find out which is the more expensive program. (Use the Windows Calculator under Accessories to help select the correct answer.) Program A estimated cost in constant FY13 dollars: $14M Program B estimated cost in constant FY18 dollars: $20M FY 2013 Raw Index (Base Year 2013): 1.0000 FY 2018 Raw Index (Base Year 2013): 1.0890 Which program is more expensive? Fiscal Year Raw Index (FY13 Base year) 2012 0.9833 2013 1.0000 2014 1.0130 2015 1.0302 2016 1.0488 2017 1.0687 2018 1.0890 2019 1.1097 Program A Program B 25) What entity is charged with the task of providing answers to "advanced questions?" Members of Congress The SECDEF OSD staff Components 26) Which of the following information is displayed in the P-5 budget exhibit? Lesson 5.8 Production lead time for each end item Unit costs for flyaway cost elements Contract award information for each applicable Work Breakdown Structure element Detailed Work Breakdown Structure elements and cost on advance procurement and modifications 27) Which of the following are one of the primary inputs of the Budgeting Phase? Program Office Estimate (POE) Budget Review USD(C) Leads Chairman's Program Recommendations (CPR) Will Cost 28) All of the following information is displayed in the P-40 budget exhibit, EXCEPT: Funding information for the 2 years prior to the first budget year and 4 out-years following the last budget year Specific quantities of end items funded each year Funding information for 1 or 2 budget years Status for each individual modification 29) Which of the following information is displayed in the P-21 budget exhibit? Contract award information for each applicable Work Breakdown Structure element Minimum, economical, and maximum production rates Contract history (prior year or last procurement, current year, budget years 1 and 2) Listing of all items that will be purchased with advance procurement funds 30) The Annual Funding Policy applies to which of the following categories of appropriations? Procurement Military Construction Research, Development, Test & Evaluation Operations & Maintenance [Show More]

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