CDFM Defense Resource Management 4

Question 1

Which of the following best describes 'working capital funds' (WCF) in the DoD financial management context?

Accepted Answer

Revolving funds that finance business-like operations by charging customers for goods and services provided

Answer

DoD Working Capital Funds are revolving funds that operate on a break-even basis, recovering costs from customer orders so that funding recycles without annual appropriations.

Question 2

Under the Goldwater-Nichols Act, how did resource management authority shift within the DoD?

Accepted Answer

Joint duty and combatant command authority were strengthened, increasing the influence of joint requirements on resource decisions

Answer

Goldwater-Nichols (1986) strengthened combatant commanders and the Chairman of the Joint Chiefs, shifting resource emphasis toward joint warfighting requirements over individual service priorities.

Question 3

When a defense program manager receives an 'issue paper' during the programming phase, what does this document typically represent?

Accepted Answer

A formal challenge to a service's POM submission identifying resource shortfalls or excesses

Answer

Issue papers (also called program issue papers or PIPs) are used by OSD and the Joint Staff to formally challenge or question service POM submissions during program review.

Question 4

What does 'full funding' policy require for major defense acquisition programs?

Accepted Answer

Total procurement cost of a complete, usable end item must be funded in the year of obligation

Answer

The full funding policy requires that procurement appropriations include the total cost of a complete and usable item, preventing incremental or partial funding of production units.

Question 5

In defense resource management, what is 'budget execution' primarily concerned with?

Accepted Answer

Managing and controlling the actual obligation and expenditure of appropriated funds during the fiscal year

Answer

Budget execution covers the period during which appropriated funds are actually obligated and expended, requiring managers to track spending against authorizations and report variances.

CDFM - Certified Defense Financial Manager Practice Test

CDFM - Certified Defense Financial Manager Practice Test

CDFM Defense Resource Management 4