Free CDFM Budget and Cost Analysis Questions and Answers

Question 1

What is the primary goal of the Program Budget Review (PBR) process in the Department of Defense?

Accepted Answer

To ensure alignment of budget proposals with strategic priorities

Answer

To assess the performance of defense programs against their objectives

Answer

To identify cost savings and efficiencies within defense programs

Answer

To all allocate alignment of budget proposals with strategic

Question 2

Which of the following is a key component of the Life Cycle Cost (LCC) estimate in defense budgeting?

Accepted Answer

Development, procurement , operations, maintenance, and disposal costs.

Answer

Initial procurement cost only

Answer

Maintenance and operations costs only

Answer

Disposal costs only

Question 3

What is the primary purpose of conducting a sensitivity analysis in cost estimation?

Accepted Answer

To identify the most significant cost drivers and assess their impact on total cost

Answer

To determine the exact cost of a defense program

Answer

To compare costs between different defense programs

Answer

To justify budget increases to Congress

Question 4

In the context of defense budgeting, what is a "funding wedge"?

Accepted Answer

An increase in funding required to sustain a program beyond the current budget

Answer

A method to allocate funds incrementally over multiple years

Answer

A budget shortfall that must be addressed in future fiscal years

Answer

A reduction in funding allocated to specific defense program

Question 5

Which cost estimation technique involves comparing the cost of a new program to similar existing programs?

Accepted Answer

Analogous estimating

Answer

Parametric estimating

Answer

Bottom-up estimating

Answer

Top-down estimating