Question 1: What is the 'Cost Accounting Standards (CAS)' and what is their purpose for Army contracts?

• CAS determine which contract types (fixed-price vs. cost-plus) can be used on Army programs
• CAS are standards issued by the CAS Board requiring defense contractors to consistently measure, assign, and allocate costs to government contracts, ensuring comparability and auditability (Correct answer)
• CAS are Army standards for preparing cost estimates in a consistent format
• CAS are GAAP accounting rules specifically applied to government contractors

Correct answer: CAS are standards issued by the CAS Board requiring defense contractors to consistently measure, assign, and allocate costs to government contracts, ensuring comparability and auditability

CAS ensure that contractors allocate costs consistently and fairly to government contracts, preventing practices that shift costs from commercial work to government contracts or distort reported costs.

Question 2: What is the 'wrap rate' concept used in engineering build-up estimates?

• A factor applied to direct labor to account for fringe benefits, overhead, and general and administrative expenses, converting direct labor cost to total burdened cost (Correct answer)
• A fee percentage added to cost-plus contracts to ensure contractor profit
• The escalation rate applied to wrap up current-year costs into future years
• The ratio of indirect to direct labor in a contractor's accounting system

Correct answer: A factor applied to direct labor to account for fringe benefits, overhead, and general and administrative expenses, converting direct labor cost to total burdened cost

The wrap rate bundles all indirect costs into a single multiplier on direct labor, simplifying the calculation of total labor cost from direct labor hours.

Question 3: Which Army document formally establishes the life cycle cost estimate used to support milestone decision reviews?

• Acquisition Program Baseline (APB)
• Defense Acquisition Executive Summary (DAES)
• Program Objective Memorandum (POM)
• Program Life Cycle Cost Estimate (PLCCE) (Correct answer)

Correct answer: Program Life Cycle Cost Estimate (PLCCE)

The PLCCE is the official cost estimate document that captures all life cycle costs and is reviewed at milestone decisions to ensure funding adequacy.

Question 4: What is the purpose of a Significant Variance Threshold (SVT) in EVM reporting?

• To determine when a contract modification is required for cost growth
• To trigger mandatory written variance analysis when cost or schedule deviations exceed defined limits (Correct answer)
• To establish the level at which management reserve can be drawn down
• To identify technical deficiencies requiring corrective action reports

Correct answer: To trigger mandatory written variance analysis when cost or schedule deviations exceed defined limits

SVTs define the cost or schedule variance levels that obligate the contractor to provide written analysis explaining the cause, impact, and corrective action in the CPR.

Question 5: What is a 'Milestone Decision Authority (MDA)' and what cost documentation must be in place before a Milestone B decision?

• The MDA is the Army Comptroller who certifies funding availability before contract award
• The MDA is the official authorized to approve program entry into a new acquisition phase; before Milestone B, an approved program cost estimate, affordability assessment, and CAPE ICE must be in place (Correct answer)
• The MDA is required only for ACAT I programs and approves the program's should-cost targets
• Before Milestone B, only the program office cost estimate is required; CAPE ICE is optional

Correct answer: The MDA is the official authorized to approve program entry into a new acquisition phase; before Milestone B, an approved program cost estimate, affordability assessment, and CAPE ICE must be in place

DODI 5000.02 specifies the documentation package required before each milestone; at Milestone B (entering System Development and Demonstration), the MDA must have independent cost and schedule estimates to make an informed decision.

Question 6: What is 'affordability analysis' and how has it been incorporated into DoD acquisition policy?

• Affordability analysis is the DoD process for determining commercial item prices in competitive markets
• Affordability analysis determines the minimum number of units the Army must purchase to achieve acceptable unit cost
• Affordability analysis assesses whether projected program costs fit within DoD's top-line budget constraints and requires programs to establish unit cost caps at Milestone A (Correct answer)
• Affordability analysis is conducted by OMB to determine whether a program should be included in the President's Budget

Correct answer: Affordability analysis assesses whether projected program costs fit within DoD's top-line budget constraints and requires programs to establish unit cost caps at Milestone A

DoD policy requires programs to demonstrate affordability by establishing and maintaining should-cost targets and unit cost goals tied to the portfolio's available funding, not just the program's own requirements.

Question 7: What is the coefficient of variation (CV) used for in cost risk analysis?

• To calculate the risk-adjusted budget
• To determine the most likely cost outcome
• To measure relative variability of a cost estimate as standard deviation divided by the mean (Correct answer)
• To compare schedule variance to cost variance

Correct answer: To measure relative variability of a cost estimate as standard deviation divided by the mean

The CV normalizes variability by the mean, allowing analysts to compare uncertainty levels across cost elements of different magnitudes.

Question 8: List of objects or entities characterized as protected from the affects of military operations under international law and/or ROE

• No-Strike Entities (NSEs)
• No-Strike List is...
• Outline method
• Cdm product is an..

The correct answer is the formal term for the official roster of locations and entities legally protected from attack under international law and applicable ROE — a specific designation distinct from the No-Strike List (which appears in the wrong answers as a definition prompt) and No-Strike Entities. The term reflects the protected, off-limits status these targets hold during military operations.

Question 9: Which risk percentile does DoD policy typically require programs to budget to when using probabilistic cost estimates?

• 95th percentile
• 50th percentile
• 65th percentile
• 80th percentile (Correct answer)

Correct answer: 80th percentile

DoD Instruction 5000.02 and related guidance direct programs to budget to the 80th percentile of the cost risk distribution to provide adequate funding confidence.

Question 10: A Cost Performance Index (CPI) of 0.85 on a defense program indicates which of the following?

• The program has a 15% cost underrun
• The program is completing work 15% faster than planned
• For every dollar spent, only $0.85 of budgeted work has been accomplished (Correct answer)
• The contractor is earning 85 cents of profit per dollar of cost

Correct answer: For every dollar spent, only $0.85 of budgeted work has been accomplished

CPI = EV / AC; a CPI of 0.85 means the program is overrunning costs — only $0.85 of planned work is completed per $1.00 spent.

Question 11: What is a Work Breakdown Structure (WBS) and why is it critical to cost data collection?

• A list of contract line items for billing purposes
• A breakdown of the contractor's labor categories
• A schedule showing when each task will be completed
• A hierarchical decomposition of program scope used to organize and collect costs at consistent, comparable levels across programs (Correct answer)

Correct answer: A hierarchical decomposition of program scope used to organize and collect costs at consistent, comparable levels across programs

The WBS provides a common framework so that costs from different programs and contractors are collected at the same structural level, enabling meaningful comparison and analysis.

Question 12: What is the purpose of a 'cost model validation' in Army cost analysis?

• To confirm that the model's inputs match the contractor's proposed costs
• To obtain OSD approval before using a parametric model in a program estimate
• To ensure the model is consistent with the program's acquisition strategy
• To verify that the cost model produces accurate results by testing it against known historical data and comparing its outputs to actuals (Correct answer)

Correct answer: To verify that the cost model produces accurate results by testing it against known historical data and comparing its outputs to actuals

Validation checks whether the model's predictions match actual historical outcomes, providing confidence that it will produce reliable estimates for new programs.

Question 13: In EVM, what is Management Reserve (MR)?

• Funds allocated to the PMB for known schedule risks
• The difference between the contract ceiling price and the BAC
• Contingency funds earmarked for out-of-scope contract modifications
• Budget withheld from the PMB and held for unplanned but in-scope work (Correct answer)

Correct answer: Budget withheld from the PMB and held for unplanned but in-scope work

Management Reserve is budget held outside the PMB by program management for unknown, unplanned — but in-scope — risks.

Question 14: What is the formula for the Schedule Performance Index (SPI)?

• SPI = EV / AC
• SPI = EV / PV (Correct answer)
• SPI = EV - PV
• SPI = AC / PV

Correct answer: SPI = EV / PV

SPI = EV / PV; a value below 1.0 indicates the program is behind schedule relative to plan.

Question 15: What is the primary objective of the Integrated Baseline Review (IBR)?

• To review technical specifications against contract requirements
• To jointly validate that the PMB is technically achievable, realistic, and measurable (Correct answer)
• To verify contractor compliance with earned value accounting standards
• To conduct an annual audit of contractor financial statements

Correct answer: To jointly validate that the PMB is technically achievable, realistic, and measurable

The IBR is a joint government-contractor review that validates the PMB is logically structured, technically sound, and measurable.

Question 16: Which EVM term describes distributing a program's total budget across specific time periods to reflect planned resource expenditures?

• Rubber baselining
• Budget loading
• Time-phasing (Correct answer)
• Rolling wave planning

Correct answer: Time-phasing

Time-phasing spreads authorized budgets across the program schedule by time period, creating the time-based spending plan that forms the PMB.

Question 17: What is the primary purpose of a Cost Data Requirements (CDR) clause in a DoD contract?

• To require contractors to submit actual cost data so the government can validate estimates and track performance (Correct answer)
• To authorize access to contractor facilities for audits
• To define the contractor's accounting system requirements
• To establish the contractor's ceiling price on a cost-plus contract

Correct answer: To require contractors to submit actual cost data so the government can validate estimates and track performance

CDR clauses obligate contractors to provide actual cost data in a standardized format, giving the government visibility into incurred costs for future estimating and oversight.

Question 18: What does a 'tornado chart' display in cost risk analysis?

• Correlation matrix between cost elements
• Probability of cost overrun at various thresholds
• Cumulative cost growth over program phases
• Ranked sensitivity of total cost to each individual input variable (Correct answer)

Correct answer: Ranked sensitivity of total cost to each individual input variable

A tornado chart ranks input variables from most to least impactful on the output, with the widest bars at the top, showing where analysts should focus risk reduction efforts.

Question 19: What is the 'three-point estimate' technique and how is it used in Army cost analysis?

• An estimate requiring review and approval at three organizational levels
• An estimate developed at three different program phases for comparison
• A methodology using three separate independent estimates averaged together
• Using optimistic, most likely, and pessimistic cost values to characterize uncertainty for a cost element, often combined via PERT formula to estimate expected value and variance (Correct answer)

Correct answer: Using optimistic, most likely, and pessimistic cost values to characterize uncertainty for a cost element, often combined via PERT formula to estimate expected value and variance

The PERT formula [E = (O + 4M + P)/6] weights the three points to compute expected cost and derives variance for risk analysis, providing more information than a single point estimate.

Question 20: Which Army regulation governs the collection, management, and reporting of cost data for Army acquisition programs?

• AR 25-1 (Army Information Technology)
• AR 700-127 (Integrated Logistics Support)
• AR 37-1 (Army Financial Management and Accounting)
• AR 70-13 (Management and Oversight of Defense Acquisition Programs) (Correct answer)

Correct answer: AR 70-13 (Management and Oversight of Defense Acquisition Programs)

AR 70-13 establishes Army policy for cost management and data reporting within the Army acquisition system, including cost estimating and analysis requirements.

Question 21: What does an amperemeter measure?

• The Resistance
• The voltage
• The current (Correct answer)
• The power

Correct answer: The current

The correct answer is B. An amperemeter measures amperes (A). Since the ampere measures current, the correct answer is B.

Question 22: What is the purpose of a 'Budget Estimate Submission (BES)' in the Army PPBE process?

• The BES is the Army's report to Congress on how prior year funds were spent
• The BES is the EVM baseline submitted at contract award
• The BES is the Army's formal budget request submitted to OSD that translates the POM into the President's Budget request, with detailed cost justifications for each program (Correct answer)
• The BES is a contractor's budget proposal submitted during source selection

Correct answer: The BES is the Army's formal budget request submitted to OSD that translates the POM into the President's Budget request, with detailed cost justifications for each program

The BES represents the Army's refined budget position submitted to OSD after POM review, incorporating any changes and providing the cost basis for the President's Budget submission.

Question 23: What is 'multiyear procurement (MYP)' authority and how does it affect Army cost estimates?

• MYP requires Congress to appropriate all contract years' funding simultaneously before award
• MYP applies only to sustainment contracts and has no impact on procurement cost estimates
• MYP automatically triggers a Nunn-McCurdy review due to increased cost commitment
• MYP allows the Army to contract for multiple years of production in a single contract, enabling contractor investments that reduce unit cost; estimates must reflect learning curve and economic order quantity savings (Correct answer)

Correct answer: MYP allows the Army to contract for multiple years of production in a single contract, enabling contractor investments that reduce unit cost; estimates must reflect learning curve and economic order quantity savings

MYP contracts provide contractor stability that enables investments in tooling and labor efficiency, and cost estimates must reflect the resulting unit cost reductions compared to annual contracting.

Question 24: Under what circumstances can an Army program use 'incremental funding' rather than full funding for a procurement contract?

• Incremental funding is always available for Army programs with costs over $1B
• Incremental funding is the standard for all cost-reimbursement contracts regardless of program size
• Incremental funding is generally prohibited for procurement contracts under full funding policy but may be authorized by Congress for specific programs through appropriations language (Correct answer)
• Incremental funding is authorized whenever the program manager certifies adequate funds will be available in future years

Correct answer: Incremental funding is generally prohibited for procurement contracts under full funding policy but may be authorized by Congress for specific programs through appropriations language

Full funding policy is the DoD standard for procurement, but Congress occasionally authorizes incremental funding for specific major programs through specific statutory authority or appropriations language.

Question 25: What is a 'Cost Estimating Relationship (CER)' and what data is required to develop one?

• A contractual relationship defining how contractor costs will be reimbursed
• A lookup table of historical unit costs organized by system type
• A factor converting engineering estimates to contractor bid prices
• A mathematical equation relating cost to one or more technical or program parameters, developed using regression analysis of historical cost and technical data (Correct answer)

Correct answer: A mathematical equation relating cost to one or more technical or program parameters, developed using regression analysis of historical cost and technical data

CERs are derived through statistical regression of historical data, with cost as the dependent variable and technical characteristics (weight, power, speed) as independent variables.

Question 26: In EVM terminology, what does Planned Value (PV) — also called Budgeted Cost of Work Scheduled (BCWS) — represent?

• The contractor's projected final cost
• The budgeted cost of work scheduled to be completed by a given date (Correct answer)
• The actual cost of work performed to date
• The total contract budget at completion

Correct answer: The budgeted cost of work scheduled to be completed by a given date

PV/BCWS represents the authorized budget planned to be accomplished by a specific point in time on the schedule.

Question 27: What is the 'Army Cost Position (ACP)' and how does it relate to the PLCCE?

• The ACP is the cumulative cost charged to a program's appropriation
• The ACP is a contractor-proposed cost used to negotiate contract prices
• The ACP is the Army's official cost position for a program, typically derived from the ACEA's independent estimate and used as the basis for budget submissions (Correct answer)
• The ACP is identical to the program office's own cost estimate

Correct answer: The ACP is the Army's official cost position for a program, typically derived from the ACEA's independent estimate and used as the basis for budget submissions

The Army Cost Position represents the Army's official view of expected costs for budget and planning purposes, and is developed independently to provide objective oversight of program office estimates.

Question 28: What is the 'Technology Readiness Level (TRL)' scale and how does TRL affect cost estimating?

• TRL is a DoD contract performance metric used to evaluate contractor technical progress
• TRL 9 systems are too mature to estimate parametrically and require only engineering build-up
• TRL is a 1-9 scale measuring technology maturity; lower TRLs indicate higher technical risk and greater cost uncertainty, requiring larger risk reserves in estimates (Correct answer)
• TRL measures production readiness and is used only to estimate manufacturing costs

Correct answer: TRL is a 1-9 scale measuring technology maturity; lower TRLs indicate higher technical risk and greater cost uncertainty, requiring larger risk reserves in estimates

Immature technologies (TRL 1-5) have higher uncertainty and historical cost growth, so cost analysts apply larger risk factors; mature technologies (TRL 7-9) can be estimated with greater confidence.

Question 29: What is the 'Should-Cost' review concept in Army acquisition?

• A review confirming the contractor's proposed cost is within budget
• A congressional review of program cost growth
• An audit comparing should-cost to will-cost estimates
• A government-led analysis to identify what a program should cost if managed efficiently, used to challenge contractor proposals (Correct answer)

Correct answer: A government-led analysis to identify what a program should cost if managed efficiently, used to challenge contractor proposals

Should-Cost reviews challenge baseline assumptions and inefficiencies to determine the achievable cost under optimal management, and are used to negotiate better contract prices.

Question 30: Under DFARS, which contract types and dollar threshold generally require a contractor to maintain a compliant Earned Value Management System (EVMS)?

• Cost or incentive contracts with a value of $20 million or more (Correct answer)
• Fixed-price contracts over $100 million
• All defense contracts over $1 million
• All contracts requiring a Work Breakdown Structure

Correct answer: Cost or incentive contracts with a value of $20 million or more

DFARS 252.234-7002 requires EVMS compliance for cost or incentive contracts valued at $20 million or more.

Question 31: How many possible explanations are offered for pay - TV's fall?

• 2 (Correct answer)
• 3
• None
• 1

Correct answer: 2

The correct answer is C. The passage offers two explanations for the decline of pay TV: the rise of internet-delivered films and television firms such as Netflix and Amazon and the high ate of subscriptions.

Question 32: Which distribution is most commonly used to represent a cost element's uncertainty when only minimum, most likely, and maximum values are known?

• Normal distribution
• Uniform distribution
• Triangular distribution (Correct answer)
• Log-normal distribution

Correct answer: Triangular distribution

The triangular distribution requires only three expert-supplied parameters (min, mode, max) and is widely used when historical data are limited.

Question 33: What is 'program uncertainty' as distinguished from 'estimating uncertainty' in cost risk analysis?

• Program uncertainty stems from unknown future events; estimating uncertainty stems from imprecision in the cost model itself (Correct answer)
• Program uncertainty is always larger than estimating uncertainty
• Program uncertainty applies only to EMD phase programs
• Estimating uncertainty is irreducible while program uncertainty can be managed

Correct answer: Program uncertainty stems from unknown future events; estimating uncertainty stems from imprecision in the cost model itself

Program uncertainty reflects future events (requirements changes, technology immaturity) while estimating uncertainty reflects the analyst's limited knowledge of the true cost relationship.

Question 34: What is the 'COCOMO II' model used for in Army cost analysis?

• Estimating software development costs based on source lines of code, scale factors, and cost drivers (Correct answer)
• Estimating combat systems operational and maintenance costs
• Estimating contractor overhead rates for cost-type contracts
• Estimating communications equipment procurement costs

Correct answer: Estimating software development costs based on source lines of code, scale factors, and cost drivers

COCOMO II (Constructive Cost Model) is a widely used parametric software cost estimating model that uses SLOC and adjustment factors to estimate software development effort and cost.

Question 35: What does the Nunn-McCurdy Act require when a major defense acquisition program (MDAP) breaches its cost thresholds?

• The program's MDA must personally approve all future contract awards
• The program must reduce its scope by 25% to bring costs back within the baseline
• The program must be certified to Congress as still essential to national security and that no less costly alternative exists, or it must be terminated (Correct answer)
• The program must undergo a mandatory should-cost review within 60 days

Correct answer: The program must be certified to Congress as still essential to national security and that no less costly alternative exists, or it must be terminated

Nunn-McCurdy requires Congress to be notified of significant cost growth and, for critical breaches, the program must be recertified or terminated, ensuring congressional oversight of cost overruns.

Question 36: What threshold defines a Major Defense Acquisition Program (MDAP) under US law?

• RDT&E costs exceeding $525M or procurement costs exceeding $3.065B in FY2020 constant dollars (Correct answer)
• Programs with more than 10,000 units procured
• Any program requiring congressional notification of cost growth
• Any program managed at the PEO level or above

Correct answer: RDT&E costs exceeding $525M or procurement costs exceeding $3.065B in FY2020 constant dollars

10 USC 2430 (now 10 USC 4201) defines MDAPs by cost thresholds (adjusted periodically for inflation), triggering the most stringent acquisition oversight including SAR reporting and Nunn-McCurdy.

Question 37: What is 'should-cost management' under the Better Buying Power initiative and how does it differ from traditional cost estimating?

• Should-cost management requires using CAPE's estimates instead of program office estimates
• Should-cost management challenges program and contractor teams to identify and achieve specific cost reduction targets, rather than simply predicting what costs will be (Correct answer)
• Should-cost management is a procurement strategy limiting contractor fee to 10% of costs
• Should-cost management is an OSD mandate replacing all parametric cost models with engineering build-up

Correct answer: Should-cost management challenges program and contractor teams to identify and achieve specific cost reduction targets, rather than simply predicting what costs will be

Better Buying Power elevated should-cost from an occasional review to an ongoing management discipline, requiring program managers to actively drive costs down rather than accept historical cost trends.

Question 38: Which Estimate at Completion (EAC) formula assumes current cost efficiency will continue for the remainder of the program?

• EAC = AC + (BAC - EV)
• EAC = AC + ETC
• EAC = BAC - EV + AC
• EAC = BAC / CPI (Correct answer)

Correct answer: EAC = BAC / CPI

EAC = BAC / CPI projects final cost assuming the cumulative CPI experienced to date will persist throughout the remaining work.

Question 39: A ball thrown horizontally slows due to:

• Friction (Correct answer)
• Mass
• Gravity
• Inertia

Correct answer: Friction

The correct answer is D. Friction is the force that opposes the motion of two surfaces sliding or trying to slide across each other.

Question 40: What is a 'Selected Acquisition Report (SAR)' and who receives it?

• A quarterly EVM performance report submitted by the prime contractor
• A report submitted by the program office to ACEA summarizing current cost estimates
• An annual report submitted to Congress on the cost, schedule, and performance status of each major defense acquisition program, required by law (Correct answer)
• An internal Army report summarizing the year's acquisition awards

Correct answer: An annual report submitted to Congress on the cost, schedule, and performance status of each major defense acquisition program, required by law

SARs are legally mandated by 10 USC and provide Congress with standardized cost and schedule data on MDAPs, ensuring legislative oversight of major defense investments.

Question 41: Why is 'actual cost data' preferred over 'budgeted cost data' when developing cost estimating relationships (CERs)?

• Actual costs reflect what was truly spent, avoiding budget optimism or political adjustments that distort real cost drivers (Correct answer)
• Actual data is always available from DACIMS without normalization
• Budgeted data is classified and cannot be used in unclassified estimates
• Actual data requires no inflation adjustments before use

Correct answer: Actual costs reflect what was truly spent, avoiding budget optimism or political adjustments that distort real cost drivers

Budgets are often set optimistically or politically adjusted, while actuals represent real resource consumption, making them a more reliable basis for future predictions.

Question 42: What is the key difference between 'then-year' dollars and 'base-year' dollars in Army cost data management?

• Then-year dollars are higher because they include fee and profit; base-year dollars exclude those
• Then-year dollars apply only to O&S costs, not development costs
• Then-year dollars include the effects of inflation to the year costs will actually be incurred; base-year dollars remove inflation to a fixed reference year (Correct answer)
• Base-year dollars are always the year the program was approved

Correct answer: Then-year dollars include the effects of inflation to the year costs will actually be incurred; base-year dollars remove inflation to a fixed reference year

Converting between then-year and base-year requires applying inflation indices; base-year dollars enable comparison across programs while then-year dollars are needed for budget submissions.

Question 43: Mathematics - Sample Question <br> <br> 7.4 x 102 decimeters equal:

• 74 centimeters
• 740,000
• 740 centimeters
• 74,000
• 7,400 centimeters (Correct answer)

Correct answer: 7,400 centimeters

A decimeter is a tenth of a meter or ten centimeters. 7.4 x 102 = 740 x 10 = 7,400 (centimeters).

Question 44: What does the Budget at Completion (BAC) represent in an EVM framework?

• The remaining funds available after management reserve drawdown
• The total authorized budget for the entire program scope (Correct answer)
• The actual cost incurred to complete all authorized work
• The projected final cost based on current cost performance

Correct answer: The total authorized budget for the entire program scope

BAC is the total authorized budget for all work in the program — the sum of all budgets allocated in the PMB plus management reserve.

Question 45: What is a 'data call' in Army cost analysis?

• A notification to Congress requesting cost data for oversight
• A teleconference held to discuss cost estimate assumptions
• An automated query run against DACIMS to extract historical data
• A formal request sent to program offices or contractors to collect specific cost and technical data needed for an estimate (Correct answer)

Correct answer: A formal request sent to program offices or contractors to collect specific cost and technical data needed for an estimate

A data call is a structured request that specifies exactly what information is needed, in what format, and by what date, ensuring consistent and complete data collection.

Question 46: What is the 'Defense Acquisition Workforce Improvement Act (DAWIA)' and how does it affect Army cost analysts?

• DAWIA established the Army Cost Review Board as the primary oversight mechanism
• DAWIA established competency standards and certification requirements for the defense acquisition workforce, requiring cost analysts to achieve specific education, training, and experience credentials (Correct answer)
• DAWIA mandates that cost analysts prepare independent estimates for all contracts over $10M
• DAWIA created the position of Cost Analysis Center director within each military service

Correct answer: DAWIA established competency standards and certification requirements for the defense acquisition workforce, requiring cost analysts to achieve specific education, training, and experience credentials

DAWIA professionalized the acquisition workforce by requiring certification in specific career fields; cost analysts must meet DAWIA requirements for their career level in the business/cost estimating functional area.

Question 47: What does CSDR stand for in DoD cost data reporting?

• Contractor Submission and Data Review
• Central System Data Repository
• Cost and Software Data Reporting (Correct answer)
• Cost Summary and Documentation Report

Correct answer: Cost and Software Data Reporting

CSDR is the DoD framework requiring contractors on major programs to submit standardized actual cost, software metrics, and technical data to support future estimates.

Question 48: What does Earned Value (EV), also called Budgeted Cost of Work Performed (BCWP), measure?

• The difference between planned and actual costs
• The budgeted amount for the work that has actually been completed (Correct answer)
• The actual cost incurred for work performed to date
• The contractor's fee earned under an award fee arrangement

Correct answer: The budgeted amount for the work that has actually been completed

EV/BCWP is the budget value assigned to the work that has actually been accomplished, regardless of what it actually cost.

Question 49: What is a 'point estimate' in the context of cost analysis?

• The midpoint of a cost range
• The 50th percentile of a Monte Carlo simulation
• A single deterministic value representing expected cost (Correct answer)
• A cost estimate prepared at a single program milestone

Correct answer: A single deterministic value representing expected cost

A point estimate is a single value used to represent the expected cost without explicitly capturing uncertainty or range.

Question 50: How many guidelines does ANSI/EIA-748 define for a compliant Earned Value Management System?

• 32 (Correct answer)
• 16
• 25
• 48

Correct answer: 32

ANSI/EIA-748 establishes 32 EVMS guidelines across five process areas: organization, planning and budgeting, accounting, analysis, and revisions.

Question 51: What does 'data maturity' mean when assessing historical cost data for use in an Army estimate?

• The age of the data in years since it was collected
• Whether the data has been approved by the Army Cost Review Board
• The number of data points available in the historical database
• How complete and final the data is—early-phase data is less mature and more subject to revision than data from completed programs (Correct answer)

Correct answer: How complete and final the data is—early-phase data is less mature and more subject to revision than data from completed programs

Immature data from programs still in development may change significantly before completion, reducing its reliability as a basis for new estimates compared to data from completed programs.

Question 52: In DoD cost risk analysis, what is the 'most likely cost' (MLC)?

• The 50th percentile of the S-curve
• The mode of the cost probability distribution (Correct answer)
• The budget authority approved by Congress
• The arithmetic mean of all cost scenarios

Correct answer: The mode of the cost probability distribution

The most likely cost is the modal value—the peak of the probability density function—representing the single most probable cost outcome.

Question 53: What is the 'Adaptive Acquisition Framework (AAF)' and how many acquisition pathways does it include?

• The AAF is a flexible DoD acquisition model with six pathways tailored to different product types and urgency levels (Correct answer)
• The AAF is a single streamlined acquisition process replacing all prior DoD acquisition regulations
• The AAF includes three pathways: development, production, and sustainment
• The AAF is an Army-specific acquisition model separate from the broader DoD framework

Correct answer: The AAF is a flexible DoD acquisition model with six pathways tailored to different product types and urgency levels

The AAF's six pathways (Urgent Capability Acquisition, Middle Tier of Acquisition, Major Capability Acquisition, Software Acquisition, Defense Business Systems, and Acquisition of Services) allow tailoring to program type.

Question 54: What is the primary function of a Work Breakdown Structure (WBS) in an EVM environment?

• To decompose total program scope into manageable elements for cost, schedule, and performance control (Correct answer)
• To establish the sequence and dependencies of contract deliverables
• To identify contract award fee evaluation criteria by milestone
• To define the contractor's organizational reporting hierarchy

Correct answer: To decompose total program scope into manageable elements for cost, schedule, and performance control

The WBS product-oriented decomposition of program scope forms the fundamental framework for planning, budgeting, and measuring EVM performance.

Question 55: What is 'risk-adjusted cost estimate' in Army cost analysis?

• An estimate that has been escalated to then-year dollars
• An estimate reflecting contractor-proposed risk fees
• An estimate approved by the Army Cost Review Board
• An estimate that incorporates probability distributions for uncertain inputs rather than single point values (Correct answer)

Correct answer: An estimate that incorporates probability distributions for uncertain inputs rather than single point values

A risk-adjusted estimate replaces point values with probability distributions and propagates uncertainty to produce a range of likely costs rather than a single number.

Question 56: What is 'data normalization' when building a historical cost database for Army programs?

• Converting costs from foreign currencies to US dollars
• Removing duplicate records from the database
• The process of adjusting historical cost data to a common basis (base year, quantity, scope) for valid cross-program comparison (Correct answer)
• Organizing data records into relational database tables

Correct answer: The process of adjusting historical cost data to a common basis (base year, quantity, scope) for valid cross-program comparison

Normalization removes extraneous factors—inflation, quantity differences, scope variations—so that data points from different programs can be compared and used in cost models.

Question 57: Which Army organization is responsible for providing independent cost estimates (ICEs) for major Army programs?

• Army Materiel Command (AMC)
• Program Executive Office (PEO)
• Defense Contract Management Agency (DCMA)
• Army Cost and Economic Analysis Center (ACEA) (Correct answer)

Correct answer: Army Cost and Economic Analysis Center (ACEA)

ACEA (formerly SCEA/ACAA) produces independent cost estimates for Army programs, providing an objective check on program office and contractor estimates.

Question 58: What is the purpose of Technical Performance Measures (TPMs) in the context of data collection for cost analysis?

• To document the required operational capabilities of the system
• To track technical parameters that drive cost, allowing analysts to correlate technical progress with cost growth (Correct answer)
• To set contract performance incentives for the contractor
• To measure the contractor's manufacturing quality rates

Correct answer: To track technical parameters that drive cost, allowing analysts to correlate technical progress with cost growth

TPMs capture the technical attributes (e.g., weight, power, processing speed) that serve as cost drivers, enabling analysts to build and validate cost estimating relationships.

Question 59: Which statistical technique is most commonly used in DoD cost risk analysis to model the probability distribution of a program's total cost?

• Chi-square test
• Monte Carlo simulation (Correct answer)
• Moving average
• Linear regression

Correct answer: Monte Carlo simulation

Monte Carlo simulation is the standard DoD method for propagating input uncertainties through a cost model to produce a probability distribution of total program cost.

Question 60: What does 'allowable cost' mean under FAR Part 31 in the context of cost-type Army contracts?

• A cost that is reasonable, allocable to the contract, conforms to applicable CAS standards, and is not expressly unallowable under FAR 31.201-6 (Correct answer)
• A cost that has been approved in advance by the contracting officer
• Any cost below the contract's negotiated ceiling price
• A cost that appears in the contractor's proposal and has not been challenged by DCAA

Correct answer: A cost that is reasonable, allocable to the contract, conforms to applicable CAS standards, and is not expressly unallowable under FAR 31.201-6

Allowability under FAR Part 31 determines what costs the government will reimburse on cost-type contracts; unallowable costs (e.g., entertainment, advertising) must be excluded from billings.

Question 61: What does a negative Schedule Variance (SV = EV - PV) indicate on a program?

• The program is ahead of schedule
• The program has exceeded its management reserve
• The program is under budget
• The program is behind schedule (Correct answer)

Correct answer: The program is behind schedule

A negative SV (EV < PV) means less work has been earned than was planned, indicating the program is behind schedule.

Question 62: What is the Estimate to Complete (ETC) in EVM, and how does it relate to EAC?

• ETC is the expected cost to finish remaining work; EAC = AC + ETC (Correct answer)
• ETC is the budgeted cost of remaining work; EAC = ETC - AC
• ETC is the management reserve balance; EAC = BAC - ETC
• ETC is the cost incurred to date; EAC = ETC + BAC

Correct answer: ETC is the expected cost to finish remaining work; EAC = AC + ETC

ETC is the expected cost to complete all remaining work; adding actual costs to date (AC) yields the Estimate at Completion (EAC).

Question 63: What is the 'PRICE H' model and for what type of cost does it estimate?

• PRICE H estimates only software costs using hardware parameters as proxies
• PRICE H is a life cycle cost tool for estimating housing and facility costs
• PRICE H is a parametric hardware cost estimating model that estimates development and production costs of electronic and mechanical hardware systems (Correct answer)
• PRICE H is a DoD-mandated cost estimating model for Army helicopter programs specifically

Correct answer: PRICE H is a parametric hardware cost estimating model that estimates development and production costs of electronic and mechanical hardware systems

PRICE H (now part of the PRICE True suite) is a widely used parametric model that estimates hardware development and manufacturing costs based on physical and complexity parameters.

Question 64: What is the main challenge of using 'analogous data' from a prior program for a new Army cost estimate?

• Prior program data is always more expensive than the new program
• Differences in technical complexity, quantity, schedule, and inflation require extensive adjustments to make the analogy valid (Correct answer)
• Analogous data is classified and cannot be accessed by program office analysts
• The WBS structure from old programs never matches the new program

Correct answer: Differences in technical complexity, quantity, schedule, and inflation require extensive adjustments to make the analogy valid

Analogous data must be carefully scrubbed and adjusted for differences in scope, technology, schedule, and time period before it is a reliable basis for a new estimate.

Question 65: Which monthly report do contractors submit to provide EVM data to the government program office?

• Selected Acquisition Report (SAR)
• Contract Performance Report (CPR) (Correct answer)
• Defense Contract Audit Report (DCAR)
• Program Deviation Report (PDR)

Correct answer: Contract Performance Report (CPR)

The Contract Performance Report (CPR) is the primary monthly EVM data submission from the contractor to the government, covering five reporting formats.

Question 66: What is 'cost realism analysis' and when is it performed during source selection?

• A review of proposed costs against the IGCE to identify any arithmetic errors
• An analysis comparing offeror prices to determine the most competitive bid
• An assessment of whether proposed costs are realistic for the work, performed on cost-reimbursement proposals to determine the probable cost of contract performance (Correct answer)
• An audit by DCAA of the contractor's accounting system before award

Correct answer: An assessment of whether proposed costs are realistic for the work, performed on cost-reimbursement proposals to determine the probable cost of contract performance

Cost realism is mandatory on cost-type solicitations; the government adjusts unrealistically low proposed costs to probable cost for evaluation purposes to avoid awarding to a contractor that cannot perform for the proposed amount.

Question 67: What is 'other transaction authority (OTA)' and how does it affect cost visibility for Army programs?

• OTA is a special contracting authority requiring enhanced CSDR reporting
• OTA agreements always require EVM reporting at the same level as traditional contracts
• OTA provides other agencies with the authority to manage Army cost estimates
• OTA allows DoD to use agreements outside FAR/DFARS for research and prototype activities; it reduces standard cost reporting requirements, limiting the government's visibility into contractor costs (Correct answer)

Correct answer: OTA allows DoD to use agreements outside FAR/DFARS for research and prototype activities; it reduces standard cost reporting requirements, limiting the government's visibility into contractor costs

OT agreements can streamline acquisition and access non-traditional contractors, but the absence of standard contract clauses (like CDR) means less standardized cost data is collected for future estimating.

Question 68: Which DFARS clause implements Earned Value Management System (EVMS) requirements for defense acquisition contracts?

• DFARS 252.231-7000
• DFARS 252.234-7002 (Correct answer)
• DFARS 252.215-7002
• DFARS 252.242-7005

Correct answer: DFARS 252.234-7002

DFARS 252.234-7002 (Earned Value Management System) is the clause that implements EVMS requirements on applicable defense contracts.

Question 69: What is the primary purpose of Earned Value Management (EVM) in defense acquisition programs?

• To manage subcontractor relationships
• To track contractor profit margins
• To integrate cost, schedule, and technical performance measurement (Correct answer)
• To estimate future contract award fees

Correct answer: To integrate cost, schedule, and technical performance measurement

EVM integrates cost, schedule, and technical performance to provide objective, data-driven project performance measurement.

Question 70: What is the Performance Measurement Baseline (PMB)?

• The final cost estimate at program completion
• The original contract price before any modifications
• The time-phased budget plan against which project performance is measured (Correct answer)
• The contractor's negotiated profit margin schedule

Correct answer: The time-phased budget plan against which project performance is measured

The PMB is the time-phased budget baseline against which actual project performance is measured using EVM metrics.

Question 71: What is the 'Independent Government Cost Estimate (IGCE)' and when is it required?

• The IGCE is the government's pre-solicitation estimate of contract cost, required by FAR before issuing a solicitation to ensure the government can evaluate reasonableness of contractor proposals (Correct answer)
• The IGCE is prepared by the contracting officer after contract award to verify contractor invoices
• The IGCE is prepared by ACEA and replaces the program office estimate at milestone decisions
• The IGCE is a classified estimate used only for contracts above the SAT threshold

Correct answer: The IGCE is the government's pre-solicitation estimate of contract cost, required by FAR before issuing a solicitation to ensure the government can evaluate reasonableness of contractor proposals

FAR requires an IGCE before solicitation so the contracting officer has an independent basis to assess the competitiveness and reasonableness of offerors' proposed prices.

Question 72: What is 'labor rate' and how does it affect engineering build-up cost estimates?

• The ratio of labor cost to material cost in a production contract
• The hourly cost of labor including wages, benefits, and overhead; it directly multiplies labor hours to produce labor cost in build-up estimates (Correct answer)
• The escalation percentage applied to contractor labor in future years
• The rate at which engineers complete tasks measured in tasks per hour

Correct answer: The hourly cost of labor including wages, benefits, and overhead; it directly multiplies labor hours to produce labor cost in build-up estimates

Fully burdened labor rates capture total employee cost (base pay, benefits, and indirect overhead), and when multiplied by estimated labor hours yield the labor cost component of the estimate.

Question 73: What is the purpose of a 'cost data normalization worksheet' in Army cost analysis?

• To track changes to the program's work breakdown structure
• To document all adjustments made to raw historical data, ensuring transparency and reproducibility of the normalization process (Correct answer)
• To record contractor cost submissions before entry into DACIMS
• To establish the program's base year for inflation calculations

Correct answer: To document all adjustments made to raw historical data, ensuring transparency and reproducibility of the normalization process

The worksheet creates an auditable trail showing exactly what adjustments were made and why, allowing reviewers to verify or challenge the normalized data used in CER development.

Question 74: Under AR 11-18, when is an economic analysis (EA) required for Army decisions?

• Only when required by OMB Circular A-94 for civilian-agency investments
• Whenever a program's costs exceed $10 million in any single year
• Only for ACAT I programs above the MDAP threshold
• When proposed actions involve acquiring, constructing, leasing, or retaining government assets or when comparing alternative courses of action with significant resource implications (Correct answer)

Correct answer: When proposed actions involve acquiring, constructing, leasing, or retaining government assets or when comparing alternative courses of action with significant resource implications

AR 11-18 requires EAs across a broad range of Army resource decisions to ensure that alternatives are objectively compared on a life cycle cost and benefit basis before committing resources.

Question 75: In economic analysis of Army system alternatives, what is 'cost-effectiveness analysis' used for?

• Calculating the return on investment for a weapon system
• Ranking alternatives by their NPV of costs alone
• Determining whether a program's benefits exceed its costs in dollar terms
• Comparing alternatives when benefits cannot be monetized, by relating costs to non-monetary measures of effectiveness (Correct answer)

Correct answer: Comparing alternatives when benefits cannot be monetized, by relating costs to non-monetary measures of effectiveness

Cost-effectiveness analysis is used when benefits like combat capability cannot be expressed in dollars, allowing comparison of how much capability each dollar of investment buys.

Question 76: In Army cost data management, what is a 'data anomaly' and how should it be handled?

• A data point that deviates significantly from the expected pattern due to special circumstances; it should be investigated, documented, and potentially excluded or separately analyzed (Correct answer)
• A data submission rejected by DACIMS due to formatting errors
• Cost data that has not been inflation-adjusted
• Any data older than 10 years in the cost database

Correct answer: A data point that deviates significantly from the expected pattern due to special circumstances; it should be investigated, documented, and potentially excluded or separately analyzed

Anomalies may reflect unique program events rather than typical cost behavior, so they must be understood before deciding whether to include them in analysis or treat them separately.

Question 77: What is 'budget authority' and how is it different from appropriations in Army cost planning?

• Budget authority is the legal authority to obligate funds; appropriations are the specific acts by which Congress provides budget authority (Correct answer)
• Budget authority is set by the Army; appropriations are set by OSD
• They are synonymous terms in the federal budget process
• Budget authority applies to multi-year funds; appropriations are single-year

Correct answer: Budget authority is the legal authority to obligate funds; appropriations are the specific acts by which Congress provides budget authority

Appropriations are one form of budget authority; Congress provides budget authority primarily through annual appropriations acts, but also through contract authority, borrowing authority, and other mechanisms.

Question 78: What is the Planning, Programming, Budgeting, and Execution (PPBE) process and what role does cost analysis play in it?

• PPBE is the Army's contract award process; cost estimates determine award fees
• PPBE is the DoD resource allocation process; cost analysis informs each phase by providing estimates that support planning decisions, program justifications, and budget requests (Correct answer)
• PPBE is a schedule management system; cost analysis ensures programs stay within schedule constraints
• PPBE is a contractor cost management process; cost analysts review contractor compliance with it

Correct answer: PPBE is the DoD resource allocation process; cost analysis informs each phase by providing estimates that support planning decisions, program justifications, and budget requests

Cost analysts provide estimates that feed the Army's POM submission in the programming phase and budget exhibits in the budgeting phase, directly shaping how resources are allocated across programs.

Question 79: What is a 'Should-Cost Review' under FAR 15.407-4 and when is it conducted?

• An annual audit of contractor overhead rates required by DCAA
• A government team analysis of a contractor's work to identify and reduce costs before negotiation of a significant contract or modification; conducted when there is potential for significant cost reduction (Correct answer)
• A review conducted after contract award to verify the contractor is performing at proposed cost
• A review of the government's IGCE to ensure it reflects realistic market costs

Correct answer: A government team analysis of a contractor's work to identify and reduce costs before negotiation of a significant contract or modification; conducted when there is potential for significant cost reduction

FAR 15.407-4 authorizes should-cost reviews to challenge contractor cost structures and identify opportunities for cost reduction that the government can capture in negotiations.

Question 80: The Word Knowledge - Sample Question <br> <br> Hungry is the opposite of:

• Ugly
• Happy
• Full (Correct answer)
• Tasty

Correct answer: Full

The correct answer is B. Hungry is a word used to describe someone who has a desire for food, while full is a word used to describe someone whose appetite is satisfied.

Question 81: What is 'residual value' in Army life cycle costing?

• The depreciated book value of a military asset on the DoD balance sheet
• The estimated salvage or reuse value of a system or its components at the end of service life, which can offset disposal costs in the LCC (Correct answer)
• The value of spare parts remaining in the supply chain after system retirement
• The remaining budget authority at the end of a fiscal year

Correct answer: The estimated salvage or reuse value of a system or its components at the end of service life, which can offset disposal costs in the LCC

Residual value represents what the government can recover through sale or reuse of a system after it is retired, reducing the net cost of ownership in the LCC.

Question 82: What is the purpose of the To-Complete Performance Index (TCPI)?

• To measure technical performance against contract specifications
• To calculate the contractor's award fee percentage
• To calculate schedule float on the critical path
• To determine the cost efficiency required to complete remaining work within a specified budget goal (Correct answer)

Correct answer: To determine the cost efficiency required to complete remaining work within a specified budget goal

TCPI = (BAC - EV) / (BAC - AC) or (EAC - AC); it shows the future cost efficiency needed to meet the BAC or EAC goal.

Question 83: An area formed by measuring a CER from either the edge of a target/element outline, the aim point for a point target, or edge of an engagement zone or artillery sheaf for an area target.

• Collateral Effects Radius (cer)
• Collateral Hazard Area (CHA)
• Collateral Objects
• Collateral Damage

The correct answer names the specific geometric zone defined by projecting the CER outward from a target's edge, aim point, or engagement zone boundary. This is distinct from the CER itself (which is just a radius value), from Collateral Damage (a broader outcome term), and from Collateral Objects (things that might be damaged). The zone name captures the resulting area of potential hazard, not the measurement used to construct it.

Question 84: Mitigates against the Blast, Penetration, Debris and Cratering effects of warheads

• Shielding
• Aimpoint offset
• VT Fusing or air burst (Correct answer)
• Delay fusing

Correct answer: VT Fusing or air burst

VT (Variable Time) fuzing detonates the warhead above the surface as an air burst, which eliminates ground-contact effects — penetration, cratering, and surface debris — while also mitigating blast at ground level. Delay fuzing does the opposite, increasing penetration and cratering. Shielding reduces effects but cannot address all four categories. Aimpoint offset changes the impact location but does not alter how or where the weapon detonates relative to the surface.

Question 85: Definition: 1) Weapons malfunctions. 2) Unknown delivery errors. 3) Altered delivery tactics based operator judgement 4) Unknown transient civilian or noncombat personnel and/or equipment in the vicinity of a target area. 5) Secondary explosions (CDRs should remain cognizant of additional risk due to secondary explosions). 6) The use of cluster or ICM beyond CDE Level 3. 7) Unguided RAPs 8) Enhanced/Extended range artillery, mortar and naval guns are not addressed beyond CDE Level 3 (except 549 HERA w/ PGK fuze).

• As CDE levels increase....
• CDM is balance of..
• CDE Level 4 CERs are calculated
• CDM does not account for: (Correct answer)

Correct answer: CDM does not account for:

The CDM is a structured analytical tool, but it cannot model unpredictable real-world variables. Weapons malfunctions, human operator judgment calls, unknown civilians near targets, secondary explosions, and the use of certain munitions (cluster/ICM, unguided RAPs, extended-range artillery) beyond CDE Level 3 all fall outside what the CDM's inputs can account for. The other answer choices describe things the CDM does do — calculate CERs, balance risk, and support progressive planning across CDE levels.

Question 86: What does the Variance at Completion (VAC) formula calculate?

• VAC = EV - AC
• VAC = EAC - BAC
• VAC = BAC - EAC (Correct answer)
• VAC = PV - EV

Correct answer: VAC = BAC - EAC

VAC = BAC - EAC; a negative VAC signals a projected cost overrun at program completion.

Question 87: What is the concept of 'sunk cost' and how should it affect Army acquisition decisions?

• Sunk costs must be reported to Congress before milestone decisions
• Sunk costs are included in life cycle cost estimates to reflect total program investment
• Sunk costs are past expenditures that cannot be recovered; they should NOT influence future investment decisions, which should be based only on future costs and benefits (Correct answer)
• Sunk costs represent the value of prior investment and should always be recovered before terminating a program

Correct answer: Sunk costs are past expenditures that cannot be recovered; they should NOT influence future investment decisions, which should be based only on future costs and benefits

Economic rationality requires that sunk costs be ignored in forward-looking decisions; only incremental future costs and benefits should determine whether to continue or terminate a program.

Question 88: Which software metric is collected under CSDR requirements to help estimate future software development costs?

• Number of software defects found in testing
• Number of software engineers on the program
• Source Lines of Code (SLOC) and equivalent SLOC (ESLOC) (Correct answer)
• Software release frequency

Correct answer: Source Lines of Code (SLOC) and equivalent SLOC (ESLOC)

SLOC and ESLOC quantify the size of the software product, which is the primary technical driver used in software cost estimating relationships.

Question 89: What is 'Operations and Support (O&S) cost' in Army life cycle costing?

• All costs incurred after fielding to operate, maintain, sustain, and support the system throughout its service life (Correct answer)
• Costs for training Army personnel to use the new system
• Sustainment costs covered under a contract with the original manufacturer
• Costs for developing the operations and support manuals

Correct answer: All costs incurred after fielding to operate, maintain, sustain, and support the system throughout its service life

O&S costs typically represent the largest portion of LCC (often 60–80%) and include personnel, fuel, maintenance, repairs, and other sustainment activities throughout the system's operational life.

Question 90: What is the 'Program Objective Memorandum (POM)' and how is it used in Army budgeting?

• The POM is the Army Chief of Staff's annual directive on program priorities
• The POM is the Army's six-year resource plan submitted to OSD, identifying funding requirements for all programs based on cost estimates and priorities (Correct answer)
• The POM is a memo documenting a program office's should-cost review results
• The POM is a contract vehicle used to obligate multi-year program funds

Correct answer: The POM is the Army's six-year resource plan submitted to OSD, identifying funding requirements for all programs based on cost estimates and priorities

The POM covers a six-year Future Years Defense Program (FYDP) and is the Army's primary vehicle for requesting resources from OSD during the programming phase of PPBE.

Question 91: Which DoD database is the primary repository for contractor cost and software data collected under CSDR reporting requirements?

• PMRT (Program Manager's Resource Tool)
• DACIMS (Defense Automated Cost Information Management System) (Correct answer)
• EVM Central Repository
• DAES (Defense Acquisition Executive Summary)

Correct answer: DACIMS (Defense Automated Cost Information Management System)

DACIMS stores Cost and Software Data Reporting (CSDR) submissions from contractors, making them available to cost analysts government-wide for historical reference.

Question 92: What is the 'floor price' concept related to data quality in Army cost analysis?

• The minimum credible cost below which an estimate is considered unrealistically optimistic given historical program performance (Correct answer)
• The minimum contract value requiring CSDR reporting
• The base year cost before applying inflation factors
• The lowest bid price accepted during source selection

Correct answer: The minimum credible cost below which an estimate is considered unrealistically optimistic given historical program performance

Cost analysts establish a floor to sanity-check estimates against historical data, flagging any estimate that falls implausibly below what similar programs have actually cost.

Question 93: Weaponeering Analysis

• CDE Level 1
• CDE Level 3 (Correct answer)
• Cde Level 5
• CDE Level 1 (Correct answer)

Correct answer: CDE Level 3

CDE Level 3 is the threshold where weaponeering analysis is formally introduced, requiring planners to perform detailed technical calculations about weapon effects rather than relying on broader estimates. CDE Level 1 involves initial rough assessments that precede formal weaponeering, while CDE Level 5 represents the highest level of scrutiny well beyond where weaponeering analysis first enters the process.

Question 94: The new program was sanctioned by the board of education. <br> You can replace the bold word with:

• Explained
• Divided
• Offered
• Authorized (Correct answer)

Correct answer: Authorized

The correct answer is B. The word sanctioned has two meanings: (1) An action that has been given official approval (in this case, by the educational board), (2) The imposition of a sanction or a penalty.

Question 95: Which DoD instruction establishes the primary policy framework for the defense acquisition system?

• DoDD 5000.01 (The Defense Acquisition System)
• DoDI 5000.01 (The Defense Acquisition System)
• DoDI 5000.02 (Operation of the Adaptive Acquisition Framework) (Correct answer)
• FAR Part 15 (Contracting by Negotiation)

Correct answer: DoDI 5000.02 (Operation of the Adaptive Acquisition Framework)

DoDI 5000.02 implements the Adaptive Acquisition Framework, establishing the policy, processes, and roles for managing defense acquisition programs including major systems.

Question 96: What does 'normalizing' data mean in the context of preparing inputs for a cost risk model?

• Scaling all cost elements to the same order of magnitude
• Converting costs to a standard normal distribution
• Adjusting historical cost data to remove the effects of inflation, quantity, and other non-recurring factors before using it to set uncertainty ranges (Correct answer)
• Removing outlier data points from the dataset

Correct answer: Adjusting historical cost data to remove the effects of inflation, quantity, and other non-recurring factors before using it to set uncertainty ranges

Normalization ensures that historical comparisons are valid by placing all data on a common basis (same year dollars, same quantity, same scope) before deriving uncertainty parameters.

Question 97: The TE90 from either the Observer Adjusted (OA) or Predicted (P) method of engagement at less than 1/2 maximum range to target for each weapon system, shell, and fuze combination plus the WCER

• The 3A CER Reference Table provides two columns of individual warhead CERs
• Circular Error of Probability (CEP) (Correct answer)
• The 3C CER Reference Table provides CERs based on
• The 3B CER Reference Table provides CERs based on the combination of

Correct answer: Circular Error of Probability (CEP)

CEP (Circular Error of Probability) is calculated by combining the TE90 delivery error from the OA or Predicted method with the WCER to define the probability zone around the target. The 3A, 3B, and 3C CER Reference Tables are reference inputs that provide individual and combined warhead data used in the calculation — they are lookup tools, not the probability measure itself.

Question 98: What is the 'coefficient of determination (R²)' and what does it indicate about a CER?

• It measures the correlation between two independent cost drivers
• It measures the proportion of variance in cost explained by the independent variable(s); a higher R² indicates a better statistical fit (Correct answer)
• It measures the ratio of explained cost to total program budget
• It indicates the number of data points used to develop the CER

Correct answer: It measures the proportion of variance in cost explained by the independent variable(s); a higher R² indicates a better statistical fit

R² ranges from 0 to 1; an R² of 0.90 means 90% of the variability in cost is explained by the CER, with a higher value indicating a more reliable relationship.

Question 99: Which type of CSDR report captures recurring and non-recurring costs broken down by cost element and work breakdown structure?

• Software Resources Data Report (SRDR)
• Should-Cost Review report
• Earned Value Management System (EVMS) report
• Contractor Cost Data Report (CCDR) (Correct answer)

Correct answer: Contractor Cost Data Report (CCDR)

The CCDR (DD Form 1921 series) provides a detailed WBS-based breakdown of actual contractor costs and is the cornerstone of DoD cost data collection.

Question 100: Fuzed for mitigation (delay fuze) and can include a heading recommendation.

• At CDE 4, the weapon must be (Correct answer)
• Causes of Collateral Damage:
• Principal Categories of Risk
• What is mitigation:

Correct answer: At CDE 4, the weapon must be

At CDE Level 4, the weapon must be fuzed for mitigation using a delay fuze, and a heading recommendation may be included to further reduce collateral effects. This represents a mandatory configuration requirement triggered at that specific analysis level — lower CDE levels do not impose these same fuze and heading constraints as a condition of the engagement.