2) The Service Assistant Secretary (Financial Management and Comptroller):

2) The Service Assistant Secretary (Financial Management and Comptroller):

   Prepares the Component Cost Analysis

   Designates an independent activity to perform the Analysis of Alternatives for an ACAT I program

   Reviews a program's life-cycle cost estimate or Economic Analysis to identify program funding issues early in the cost estimating review process

   Prepares independent life-cycle cost estimates for ACAT ID programs

3) Your acquisition program expects to award a production contract in FY 2015 for 60 missiles funded with FY 2015 procurement appropriations. The first missile from this contract is planned be delivered in January 2016. To comply with the "funded delivery period" rule, all 60 missiles on this contract should be delivered by the end of:

   The 24th month following the first item delivery (December 2018)

   The last month that the funds are available for new obligations (September 2018)

   The 12th month following the first item delivery (December 2016)

   The last month of the fiscal year in which the first item is delivered (September 2016)

4) Which one of the following statements about an Economic Analysis (EA) is true?

   An EA must be updated at all milestones and decision review points

   An EA contains information about both costs and benefits of a program

   The Component Cost Agency prepares only the EA for ACAT IAC programs

   An EA is required only at the Full Rate Production Decision Review for an ACAT ID program

5) Which one of the following contract types contains a negotiated share ratio indicating the government and contractor will share in cost overruns or underruns:

   Cost Plus Award Fee

   Cost Plus Fixed Fee

   Firm Fixed Price

   Fixed Price Incentive, Firm Target

6) Your acquisition program expects to award a vehicle production contract in April 2016. The first item from this contract is expected to be delivered in January 2017. The estimated unit cost for each vehicle is $1 million (then-year dollars) and the contractor can deliver exactly 3 items per month beginning in January 2017. No advance procurement will be used for this contract. What is the maximum amount that may be budgeted for the FY 2016 vehicle production contract that still complies with applicable DoD funding policies?

   $36 million

   $1 million

   $3 million

   $12 million

7) The Full Funding Policy applies to which of the following categories of appropriations? Select all that apply.

   Operations & Maintenance

   Procurement

   Military Construction

   Research, Development, Test & Evaluation

   Military Personnel

8) A budget request that includes funding for certain long-lead components of an end item in a year prior to the contract award for the end item is most likely making use of this type of funding policy exception:

 Services contract crossing fiscal years

   Advance procurement

   Working Capital Funds

   Multiyear procurement

9) A cost estimate prepared using the actual cost method uses:

Projections based on cost data from past experience with the same system

   Statistical analysis to derive cost estimating relationships

   A one-to-one comparison of the new system to a similar existing system

   A detailed work breakdown structure to enable a bottom-up determination of costs

10) A DoD Component Cost Agency is attempting to estimate the cost of the engine for a new tank. The new engine is similar to that used in one other type of existing tank. What cost estimating technique would be most appropriate in this case?

   Actual Costs

   Analogy

   Engineering

   Parametric