CDFM - Certified Defense Financial Manager Budget Formulation and Execution Questions and Answers

Question 1

During the Budgeting phase of the Planning, Programming, Budgeting, and Execution (PPBE) process, what is the primary document submitted by DoD Components to the Office of the Secretary of Defense (OSD)?

Accepted Answer

Budget Estimate Submission (BES)

Answer

Program Objective Memorandum (POM)

Answer

National Defense Strategy (NDS)

Answer

Future Years Defense Program (FYDP)

Question 2

A DoD agency is operating under a Continuing Resolution Authority (CRA) for the first quarter of the fiscal year. Which of the following actions is most likely restricted under the CRA?

Accepted Answer

Initiating a new major weapons system program.

Answer

Paying civilian personnel salaries.

Answer

Continuing existing service contracts.

Answer

Obligating funds for mission-critical travel.

Question 3

Which of the following represents the correct flow of budgetary authority from the Office of Management and Budget (OMB) down to an executing activity within the DoD?

Accepted Answer

Apportionment -> Allotment -> Commitment -> Obligation

Answer

Allotment -> Apportionment -> Commitment -> Obligation

Answer

Commitment -> Obligation -> Apportionment -> Allotment

Answer

Apportionment -> Commitment -> Allotment -> Obligation

Question 4

A program manager has identified a need to shift funds within the same appropriation account from one project to another to cover an unforeseen cost increase. This action is best described as:

Accepted Answer

A reprogramming.

Answer

An apportionment.

Answer

An allotment.

Answer

A rescission.

Question 5

The execution review phase of the PPBE process primarily focuses on what activity?

Accepted Answer

Translating programming decisions into detailed budget justifications.

Answer

Developing long-range strategic goals for the military.

Answer

Comparing actual program performance and resource expenditure against planned figures.

Answer

Submitting the five-year resource plan known as the POM.

Question 6

In the DoD's budget formulation process, the Defense Planning Guidance (DPG) serves what primary purpose?

Accepted Answer

It provides fiscal and policy guidance for the development of the Program Objective Memoranda (POMs).

Answer

It is the final submission of the President's Budget to Congress.

Answer

It provides the detailed cost estimates for all major acquisition programs.

Answer

It is the Combatant Commanders' formal input on their operational needs.