Module 2 Competency 2: Cost and Economic Analysis Flashcards
The Defense Acquisition 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?
Cost, Schedule, and Performance Risks
What are the appropriations that may be used to fund an acquisition program?
RDT&E, Procurement, O&M, MILCON, and MILPERS
What is the acquisition approach that delivers capability to the warfighter in set of increments spread over time - with a known desired end-state capability - rather than in a single effort, because technology is not yet available to provide that end-state capability?
Evolutionary acquisition
What is the term used to describe dollars shown in the life-cycle cost estimate wherein the effects of inflation are not considered?
Base Year Dollar or Constant Year Dollars
What is the term used to describe dollars used for programming and budgeting purposes wherein the effects of inflation are considered?
Then-year dollars or current year dollars
What cost structure does MIL-STD-881C represent?
Work Breakdown Structure (WBS)
What concept is based on the axiom that the best time to reduce cost is early in the process?
Cost As an Independent Variable (CAIV)
Which cost estimating method is based on direct comparison with historical information of one similar system?
Analogy Method
Which cost estimating method is known as a statistical method or top-down method?
Parametric Approach
Which cost estimating method requires extensive knowledge of the product or process?
Engineering Approach
What are the methods/steps in conducting the Delphi Technique?
1) Query expert opinion
2) Seek supporting rational or information from each expert
3) Summarize Results
4) Gather second opinion
5) Continue iteration until consensus or near-consensus is reached
What is the theory that as the quantity of output doubles, the man-hours required to produce the quantity decreases at a fixed rate?
Learning Curve Theroy
What is the name of the integrated management tool intended to relate contractor actual performance on a contract to the contractor’s planned cost and schedule, that measure the work in progress in objective terms, and that states the value of the work completed in dollars?
Earned Value Management System (EVMS)
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?
Cost Variances
Cost savings, cost avoidance, and Productivity Improvements are examples of what type of cost benefits?
Quantifiable Benefits
In regards to measures of central tendency, what is a mean? A Mode? A Median?
Mean is arithmetic average
Mode is the most frequent score in a distribution of scores
Median is the middle of arrayed values
What does correlation measure?
Measure the degree of relationship between two or more variables`
For a perfect correlation to exist, what would be the coefficient?
1.0
When evaluating a proposed investment or project with costs and benefits occurring not only in the current year but also future years, it is necessary to “bring back today’s dollars” all those costs and benefits. What is the process determining?
Net Present Value of the proposed investment or project
What is used to craft the plans and programs that satisfy the demands of the National Security Strategy within resource constraints, to develop budgets to be submitted to the Congress and manage the execution of those resources?
Planning, Programming, Budgeting, and Execution Process (PPB&E)
What is a systematic method established by the Joint Chiefs of Staff for assessing gaps in military joint warfighting capabilities and recommendation solutions to resolve these gaps?
Joint Capabilities Integration and Development System (JCIDS)
What is the management process that guides all DoD acquisition programs?
Defense Acquisition System
Which DoD Directive is the Defense Acquisition System?
5000.01
What establishes the management framework that implements the Defense Acquisition Program; it emphasizes innovation and flexibility in the acquisition process and focuses on required outcomes and statutory requirements?
DoDI 5000.03: Operation of the Defense Acquisition System