CDFM - Module 2 Exam Questions and Answers

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A line chart is called what? - ANSWER Frequency Polygon What acquisition process category(s) has an independent cost estimate performed (by CAPE, in OSD) and prepared to check the accuracy and obje... ctivity of the estimate? - ANSWER ACAT 1 & ID PPBE Planning Phase provides information to who? - ANSWER SECDEF What are the 3 Quantifiable Benefits? - ANSWER (1) Cost Savings (2) Cost Avoidance (3) Productivity Improvement Who/Where are Integrated Priority Lists submitted to? - ANSWER (1) SECDEF (2) Chairmain of Joint Chiefs of Staff and (3) Military Department Chairman of the Joint Chiefs of Staff is the principal military advisor to? - ANSWER (1) The President (2) The national Security Council and (3) The SECDEF What are the 8 steps to the Economic Analysis? - ANSWER Objective, assumptions, constrains, alternatives, cost & benefits, compare alternatives risk analysis, report results What is the Percentage Changes Formula? - ANSWER (New#)-(Old#) divided by (Old#) x100 What is the Unit Cost Calculation? - ANSWER (Unit #) x (Learning Curve %) Correlation Coefficient ranges from _____________? - ANSWER 0 to 1 0 = no correlation, 1= perfect correlation The QDR (strategic plan) is published by ___________? - ANSWER SECDEF What process sets realistic but aggressive cost objectives early in acquisition program, performs cost performance analyses before operational requirements are finalized, and empowers the user to make effective choices by establishing trade-offs up front? - ANSWER Cost as an independent Variable (CAIV) __________ is when funds are shifted within the same appropriation (O&M to O&M). No statutory (Congress) authority required but Congress sets a maximum limit. - ANSWER Reprogramming Which Quantifiable Benefit is a reduction or elimination of some future resource requirement and has not been included in an approved program, budgeted for, and not yet in the POM? - ANSWER Cost Avoidance What is the Coefficient of Variation looking for? The Higher or Smaller value? - ANSWER Smaller Value What is the Coefficient of Determination look for? Higher or Smaller Value? - ANSWER Higher Value The goal of the __________ is to improve federal program effectiveness and public accountability, it is a strategic plan (QDR) which must contain outcome related goals and objectives. Goals should be objective, quantifiable and measurable (what are we going to get as a result). - ANSWER Government Performance & Results Act (GPRA) What is the Learning Curve Calculation? - ANSWER (Small #) divided by (Large #) What are the Descriptive Statistics; Measures of Dispersion; Standard Deviation; Normal Distribution? - ANSWER (A) +/-1=68% of population (B) +/-2= 95.5% of population (C) +/-3 = 99.7% of population What is the Break Even Calculation? - ANSWER Investment divided by Savings (savings = old cost minus new cost) Example: 100/25=4. 4 years to break even What are the 3 Major DoD Decision Support Systems? - ANSWER (1) PPBE (2) Joint Capabilities Integration & Development System (3) Defense Acquisition Management System Who maintains the Future Years Defense Program (FYDP)? - ANSWER Cost Assessment Program Evaluation (CAPE) What Statistical Method describes a collection of quantiative information in a way that is easy to understand nd interpret. Most common types are (1) measures of central tendency, (2) measures of dispersion, (3) Frequency distribution? - ANSWER Descriptive Statistics List 3 life cycle cost estimates for ACAT 1 programs. - ANSWER (1) Program Office Estimate (2) Component Cost Estimate (3) Independent Cost Estimate Two revolving fund categories? - ANSWER (1) Stock Funds (Inventory) and (2) Industrial Funds (Goods and Services) Constant Dollars means what? - ANSWER Inflation has been removed A bar chart is called what? - ANSWER Histogram Cost estimating approach based on direct comparison w/historical information - ANSWER Analogy approach ____________ is achieved through the incremental Development Process, and requires collaboration among war fighter, tester, and developer. In this process the capability is identified, end state requirement is know, and the requirement is met over time in several increments. - ANSWER Evolutionary acquisition How many steps are in the Economic analysis? - ANSWER (1) objective, (2) assumptions, (3) alternatives, (4) costs & benefits, (5) compare alternatives, (6) risk analysis (7) report results, and (8) constraints What measures the degree of a relationship between 2 or more variables? - ANSWER Correlation Coefficient What are the Below the Threshold Reprogramming (BTRs) for Procurement for Max In and Max Out? - ANSWER Max In = lesser of +20M or +20% Max Out = lesser of -20 M or -20% of line item USC 10 pertains to what? - ANSWER Misc Source of Funds Revolving Fund Authority Agricultural & grazing, recycling, sale, and out-lease, fish & wildlife, and energy savings are all type of funding? - ANSWER Misc Sources of Funds Anything produced that can be measured (calculated/recorded/tabulated), like invoices is called ____________? - ANSWER Output measures Working Capital Funds utilizes a __________ accounting system. - ANSWER Cost What are the 2 types of Reimbursable work orders? - ANSWER Voluntary and Involuntary The __________, composed of senior acquisition personnel is DoD's senior-level forum for advising the USD (AT&L) on critical decision regarding Major Defense Acquisition Programs. - ANSWER Defense Acquisition Board (DAB) A vehicle for acquiring multiple years of requirements with a single contract, up to a maximum of 5 years, contact, obligates the govt for full 5 years but is funded annually? - ANSWER Multi-Year Procurement The Budget goes to Congress broken down by __________, the lowest level of detail in the budget is the _______________. - ANSWER appropriation, object class What is the Comptroller Informaiton System (CIS)? - ANSWER An automated budget database What type of Correlation =both variable moving in downward pattern? - ANSWER Negative Correlation No Correlation means what? - ANSWER No Pattern What type of Correlation = both variables moving in upward pattern? - ANSWER Positive Correlation Average Procurement Unit Cost - does or does not include prototype cost? - ANSWER Does not Program Acquisition Unit Cost includes what? - ANSWER Prototype Costs What is the DoD's principle resource management process? - ANSWER PPBE What is the top level to acquire weapons systems? - ANSWER Defense Acquisition Board (DAB) No cost agreements should be executed utilizing ________________? - ANSWER MOAs and MOUs Are Economy Orders severable or non severable? - ANSWER Severable Are Project Orders severable or non severable? - ANSWER Non Severable Examples of Revolving Funds & Working Capital Funds are? - ANSWER (1) DECA (2) DLA and (3) DFAS List 3 Defense related appropriations. - ANSWER (1) RDT&E (2) MILCON and (3) Energy and Water Working Capital Funds billing rates are established during the _______________? - ANSWER Budget Process Economic analysis are performed on all programs over $ ____________? - ANSWER $1 Million Economic Order Quanity falls under the advance procurement exception to ______________? - ANSWER Full Spending Advance Procurement is an exception to what policy? - ANSWER Full Spending Policy In FY14 the __________POM is approved, the _________POM is working. - ANSWER FY15-19/FY1620 Which Act consolidated the 3 service departments under the Secretary's direct control and made the SECDEF the only military Representative on the President's cabinet? - ANSWER National Security Act Who is the principal advisor to the SECDEF for budget/fiscal matters such as a resource allocation, financial management & accounting , and budget formulation & execution. - ANSWER Under Secretary of Defense (Comptroller/CFO) The SECDEF is the principle defense policy advisor to? - ANSWER The President Which Act created the Navy Dept and Air Force, established the National Security Council, the CIA, a civilian SECDEF, OSD and the Joint Chiefs of Staff and changed the War Dept to Department of Defense? - ANSWER National Security Act Approximate DoD Funding Level? - ANSWER $500 Billion What is a list of high priority need, prioritized across service and functional lines and considers fiscal constraints, and prepared by each combatant commanders? - ANSWER Integrated Priority List (IPL) Refunds must be recorded and credited into __________? - ANSWER the same appropriation the original payment was made from. When a contractor defaults on a contract, can the unobligated funds be cited on a replacement contract? - ANSWER Yes with 3 conditions; (1) The new contract must be done without delay (2) It must be awarded on the same basis, and (3) It must be similar in its scope and size of the original contract. In what circumstance could you have a Contingent Liability accrued? - ANSWER Fixed price contract called for steel, new requirements is titanium, therefore there is a price difference that will require a commitment on the books. Reimbursable work orders must credit reimbursement to ___________? - ANSWER The same appropriation work performed was charged to. Working Capital Funds - when setting prices, military personnel are charged as if they were ___________? - ANSWER Civilian What regulation/instruction requires every acquisition program to establish an Acquisition Program Baseline (APB) to document cost, schedule, and performance objectives, as well as thresholds? - ANSWER DoDI 5000.02 Revolving Funds & Working Capital Funds are _________ appropriations, and the goal is to __________? - ANSWER No Year, Break Even Working Capital Funds - big business, approximately _____% of total DoD Appropriations? - ANSWER 20% 121 Billion No Year Appropriations do not __________? - ANSWER Expire What type of funding is not given all at one time, only those funds needed in that FY? - ANSWER Incremental What is the Procurement Investment threshold? - ANSWER $250K RDT&E does not fund what? - ANSWER HQ management (funded by O&M) POMs cover how many years? - ANSWER Five (5) O&M can fund up to $_________ in MILCON? - ANSWER $750K Middle of arrayed values? - ANSWER Median Most frequent score in a distribution of scores? - ANSWER Mode The arithmetic average, represented by an "X" with a line over it is called an X-Bar? - ANSWER Mean Misc Sources of Funds - must be approved by _________? - ANSWER Congress Defense Working Capital Funds generates approx how much sales annually? - ANSWER $120 Billion Annually Requires extensive knowledge of product/process? - ANSWER Engineering Approach Which Cost Estimating Method is very precise, bottom up method? - ANSWER Engineering Approach (engineers build you from bottom up) What are the 3 NAF Categories and what is the AFP/NAF breakdown? - ANSWER CAT A = 100% APF/0% Naf (library) CAT B = 65% APF/35% NAF (hobby stores) CAT C = 0% APF/100% NAF (golf course) Working Capital Funds - must have how many days funding on hand? - ANSWER 10 days Which cost estimating method is based on direct comparison which is historical information? - ANSWER Analogy Approach Th more you do something, the more efficient you get at it is called what? - ANSWER Learning Curve The government remains responsible, maintains control over management decisions, but another entity operates or provides the services? - ANSWER Outsourcing The process aimed at shifting functions & responsibilities (in whole or part) from government to private sector (i.e. family housing)? - ANSWER Privatization Cost estimating approach, statistical method, top down approach? - ANSWER Parametric Appraoch Re-Engineering team should be no more than ____ people, and should include a mix of competencies and experiences. - ANSWER 10 What is measuring performance against the "best" and adapting best practices called? - ANSWER Bench Marking What Business Process is a radical redesign of key business processes? - ANSWER Re-Engineering Database that summaries forces, resources, & equipment associated with programs approved by SECDEF? Backbone of the PPZB&E. - ANSWER Future Years Defense Program (FYDP) Actual Cost of Work Performed < Budgeted Cost of Work Performed = Favorable or Non Favorable? - ANSWER Favorable Actual Cost of Work Performed>Budgeted Cost of Work Performed = Favorable or Non Favorable? - ANSWER Non-Favorable [Show More]

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