CDFM Performance Management and Metrics 2

Question 1

What is the primary tool DoD uses to track program cost, schedule, and technical performance on major defense acquisition programs?

Accepted Answer

Earned Value Management (EVM)

Answer

Earned Value Management (EVM) integrates cost, schedule, and technical performance data to give program managers an early warning of variances and forecast final program costs.

Question 2

In Earned Value Management, what does a negative Cost Variance (CV) indicate?

Accepted Answer

The program is over budget relative to work accomplished

Answer

A negative Cost Variance (CV = Earned Value minus Actual Cost) indicates that the program has spent more than the value of work actually accomplished, meaning it is over budget.

Question 3

What is a 'key performance parameter' (KPP) in DoD acquisition and performance management?

Accepted Answer

A mandatory threshold that a system must meet; failure to meet it triggers program review or restructuring

Answer

A Key Performance Parameter (KPP) is a critical capability attribute that a system must meet; failing to achieve a KPP threshold is a significant event that typically triggers a program review or restructuring.

Question 4

Under the Planning, Programming, Budgeting, and Execution (PPBE) process, what phase focuses on assessing program execution against planned performance?

Accepted Answer

Execution

Answer

The Execution phase of PPBE focuses on implementing approved programs, assessing actual performance against plans, and feeding lessons learned back into future planning cycles.

Question 5

What is the purpose of a 'Program Budget Decision' (PBD) issued by OSD during the PPBE process?

Accepted Answer

To direct specific funding adjustments to military department budgets during the budgeting phase

Answer

A Program Budget Decision (PBD) is an OSD document that makes specific adjustments to military department or defense agency budget submissions during the budgeting phase of PPBE.

CDFM - Certified Defense Financial Manager Practice Test

CDFM - Certified Defense Financial Manager Practice Test

CDFM Performance Management and Metrics 2