CDFM Performance Management and Metrics

Question 1

What federal law requires executive agencies, including DoD, to establish strategic plans, performance goals, and annual performance reports?

Accepted Answer

Government Performance and Results Act (GPRA)

Answer

The Government Performance and Results Act (GPRA) of 1993, modernized in 2010 (GPRA-MA), requires agencies to establish strategic plans, set performance goals, and report annual results.

Question 2

What is an 'efficiency measure' in the context of DoD performance management?

Accepted Answer

A metric that relates outputs produced to inputs consumed, such as cost per unit of output

Answer

An efficiency measure relates outputs produced to the resources (inputs) consumed, helping managers determine whether the organization is producing results at an acceptable cost.

Question 3

In DoD performance budgeting, what is the purpose of a Program Objective Memorandum (POM)?

Accepted Answer

To document a military department's proposed resource allocation across the Future Years Defense Program (FYDP)

Answer

The POM documents a military department's or defense agency's proposed allocation of resources across the six-year Future Years Defense Program (FYDP) in support of defense strategy.

Question 4

What is the primary purpose of DoD's Balanced Scorecard approach to performance management?

Accepted Answer

To link strategic objectives to measurable outcomes across financial, internal process, learning, and mission perspectives

Answer

The Balanced Scorecard links strategic objectives to measurable performance outcomes across multiple perspectives—financial, internal processes, learning/growth, and mission—providing a comprehensive management view.

Question 5

What does the term 'cost-effectiveness analysis' mean in DoD financial management?

Accepted Answer

Analysis that compares alternatives achieving the same objective by their relative costs when benefits cannot be monetized

Answer

Cost-effectiveness analysis compares alternative approaches to achieving a given objective by their costs when the benefits are the same or cannot be expressed in monetary terms, helping decision-makers choose the most efficient option.

CDFM - Certified Defense Financial Manager Practice Test

CDFM - Certified Defense Financial Manager Practice Test

CDFM Performance Management and Metrics