Cost and Economic Analysis

Question 1

The Defense Acquisition System is the management process that guides DoD acquisition programs and is basically the process by which programmatic risk is managed. What are the three programmatic risks that must be successfully managed?

Answer 1

Cost, Schedule, and Performance Risk

Question 2

What are the appropriations that may be used to fund an acquisition program?

Answer 2

RDT&E, Procurement, O&M, MILCOM, and MILPERS

Question 3

What is the acquisition approach that delivers capability to the war fighter and a set of increments spread over time – with a known desired in-state capability rather than in a single effort, because technology is not yet available to provide that in-state capability?

Answer 3

Evolutionary Acquisition

Question 4

What is the term used to describe dollar show in the lifecycle cost estimate wherein the effects of inflation are not considered?

Answer 4

Base year dollars; constant year dollars

Question 5

What is the term used to describe dollars used for programming and budgeting purposes wherein the infects of inflation are considered?

Answer 5

Then year dollars; current year dollars

Question 6

What is the cost structure does MIL-STD-881C represent?

Answer 6

Work Breakdown Structure (Commodity)

Question 7

Which cost estimating method is based on direct comparison with historical information of one similar system?

Answer 7

Analogy Method

Question 8

What concept is based on the axiom that the best time to reduce cost is early in the process?

Answer 8

Cost as an independent variable (CAIV)

Question 9

Which cost estimating method is known as a statistical method or a top-down method?

Answer 9

Parametric Approach

Question 10

Which cost estimating method requires extensive knowledge of the product or the process?

Answer 10

Engineering Approach

Question 11

What are the methods/steps in conducting the Delphi technique?

Answer 11

1. Query expert opinion to
2. Seek supporting rationale or information from each expert
3. Summarize results for
4. Gather second opinion
5. Continue iteration until consensus or near consensus is reached

Question 12

What is the theory that as the quantity of output doubles, the man hours required to produce the quantity decreases at a fixed rate?

Answer 12

Learning Curve Theory

Question 13

What is the name of the integrated management tool intended to relate contractor actual performance on a contract to the contractors planned cost and schedule, that measures the work progress in object terms, and that states the value of the work completed in dollars?

Answer 13

Earned Value Management System (EVMS)

Question 14

What is the EVM-related term when there is a difference between budgeted cost of work performed (BCWP) and actual cost of work performed (ACWP) on a cost reimbursable contract?

Answer 14

Cost Variance

Question 15

What is a systematic approach to the problem of choosing the best method of allocating scarce resources to achieve a given objective?

Answer 15

Economic Analysis

Question 16

Cost savings, cost avoidance, and productivity improvements are examples of what type of cost-benefits?

Answer 16

Quantifiable Benefits

Question 17

In regards to measures of central tendency, what is a mean? a mode? a median?

Answer 17

1. Mean is the arithmetic average
2. Mode is the most frequent score and a distribution of scores
3. Median is the middle of arrayed values

Question 18

What does correlation measure?

Answer 18

Correlation measures the degree of relationship between two or more variables

Question 19

For a perfect correlation to exist, what would be the coefficient?

Answer 19

1.0

Question 20

When evaluating a proposed investment or project with cost and benefits occurring not only in the current year but also future years, it is necessary to bring back to today’s dollars all those costs and benefits. What is the process determining?

Answer 20

Net present value of the proposed investment or project