CDFM Cheat Sheet 2026

The 30 highest-yield CDFM facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. A Defense agency transfers $500,000 of excess equipment to another federal entity at no cost. How should the transferring agency record this transaction? → Debit net position; credit equipment at net book value
2. Under the Joint Travel Regulations (JTR), the 'constructive cost' principle limits travel reimbursement to: → What the government would have paid for the authorized mode of transportation
3. The NDS concept of 'defending the homeland' includes which of the following financial management considerations? → Funding missile defense systems, National Guard readiness, and cybersecurity investments
4. Which of the following is the correct sequence of steps in the DoD financial system transaction lifecycle? → Budget Authority → Commitment → Obligation → Expenditure → Disbursement
5. Under what authority does a WCF activity provide goods or services to non-DoD federal agencies? → Economy Act orders
6. Which financial statement is most critical for assessing the cash position and liquidity of a DoD WCF business area? → Statement of Cash Flows
7. Which DoD instruction primarily governs Working Capital Fund financial management policies? → DoDI 7000.14-R (DoD Financial Management Regulation)
8. Which DoD planning document translates strategic guidance into specific program and budget recommendations across the Future Years Defense Program (FYDP)? → Program Objective Memorandum (POM)
9. What does 'data standardization' mean in the context of DoD financial system modernization? → Establishing common data definitions, formats, and codes across all DoD financial systems
10. A DoD auditor finds that disbursements were recorded in the wrong appropriation account. This error most directly affects which financial statement assertion? → Accuracy and valuation
11. Which document formally establishes the baseline cost, schedule, and technical performance parameters for a major defense acquisition program? → Acquisition Program Baseline (APB)
12. In the context of DoD performance measurement, 'obliquity' refers to the risk that: → Managers optimize measured metrics while missing the underlying mission objective
13. Which of the following is an example of a compensating control in a DoD environment where full segregation of duties cannot be achieved due to limited staffing? → Supervisory review of all transactions processed by one individual
14. A DoD official knowingly violates the Antideficiency Act by obligating funds in excess of an apportionment. What is the maximum criminal penalty? → Two years imprisonment and a fine
15. Which document serves as the primary link between the National Defense Strategy and the DoD budget request? → Defense Planning Guidance
16. The Cost as an Independent Variable (CAIV) concept in DoD acquisition primarily aims to: → Set an affordability cap and drive design trade-offs to meet it
17. Which document formally captures an organization's approved military and civilian manpower authorizations by grade and skill? → Unit Manning Document (UMD)
18. Which of the following best describes the role of the Defense Contract Audit Agency (DCAA) in the acquisition process? → Auditing contractor financial records and cost proposals
19. A CDFM candidate reviews a program where actual obligations are 40% below the performance plan midpoint. What is the most appropriate initial corrective action? → Conduct a variance analysis to identify the root cause
20. In DoD performance management, a 'lagging indicator' for a logistics program would BEST be described as: → Total equipment readiness rates reported at fiscal year end
21. Which of the following is a major business area of the Defense-Wide Working Capital Fund? → Defense Finance and Accounting Service (DFAS)
22. Under DoD financial management policy, what is an 'obligation'? → A definite commitment that creates a legal liability to pay
23. A DoD component finds that its accounting system cannot produce reliable data for year-end closing. This represents a weakness in which COSO component? → Information and Communication
24. What is the primary purpose of conducting a sensitivity analysis in cost estimation? → To identify the most significant cost drivers and assess their impact on total cost
25. The NDS identifies 'acute threats' as distinct from 'pacing challenges.' Which nation is identified as an acute threat in the 2022 NDS? → Russia
26. Under the PPBE process, during which phase are manpower requirements first formally linked to resource allocations? → Programming
27. Which type of contract provides the greatest incentive for a contractor to control costs by sharing both savings and overruns with the government? → Cost-plus-incentive-fee (CPIF)
28. What is the primary purpose of the Federal Accounting Standards Advisory Board (FASAB)? → To establish and improve federal financial accounting standards
29. What is the primary purpose of the Nuclear Posture Review (NPR) in relation to the NDS? → To detail nuclear weapons policy and strategy aligned with broader NDS objectives
30. Which of the following is a key principle of Competition in Contracting Act (CICA)? → The government must use full and open competition to the maximum extent practicable