CDFM Defense Resource Management 5

Question 1

What is the primary distinction between 'budget authority' and 'outlays' in federal financial management?

Accepted Answer

Budget authority is the legal authority to obligate funds; outlays are the actual cash payments made

Answer

Budget authority (BA) is the legal power to enter into obligations, while outlays represent actual cash disbursements that may occur in the same or future fiscal years after obligations are incurred.

Question 2

Under the DoD financial management framework, what are 'unobligated balances' subject to after an appropriation's period of availability expires?

Accepted Answer

They enter a five-year expired account period during which they can still pay previously incurred obligations but cannot fund new ones

Answer

After an appropriation expires, unobligated balances enter a five-year expired account where they remain available to liquidate valid prior obligations but cannot support new obligations.

Question 3

Which of the following is a key feature of 'multiyear procurement' authority in defense acquisitions?

Accepted Answer

It authorizes contracts for more than one year but requires appropriated funding annually, with cancellation ceilings limiting termination liability

Answer

Multiyear procurement allows DoD to contract for multiple years of production while still requiring annual appropriations, but it includes a cancellation ceiling that limits the government's termination liability.

Question 4

In the context of DoD resource management, what is a 'program budget decision' (PBD)?

Accepted Answer

An OSD document that directs changes to service or agency programs during the program and budget review process

Answer

A PBD is issued by OSD during the program and budget review to direct adjustments to service or agency programs, reflecting decisions made by senior DoD leadership.

Question 5

What is the primary purpose of the Defense Acquisition Board (DAB) in the resource management context?

Accepted Answer

To review and recommend milestone decisions for major defense acquisition programs, ensuring cost and schedule are aligned with resources

Answer

The DAB reviews major defense acquisition programs at key milestones, ensuring that program requirements, cost estimates, and funding plans are realistic and aligned before committing additional resources.

CDFM - Certified Defense Financial Manager Practice Test

CDFM - Certified Defense Financial Manager Practice Test

CDFM Defense Resource Management 5