PFMC CLASS 23A EXAM #2
QUESTIONS AND ANSWERS
Word: (3600) Unit Type Code - ANSWER-Definition: IDs/provides mission capability
(MISCAP)
Word: (3600) General Types of UTCs - ANSWER-Definition:
Manpower/Equipment/Both
Word: (71XX) Final document & purpose of Budgeting phase - ANSWER-Definition:
Budget Estimate Submission for submitting Defense Service/Agency budgetary detailed
information, such as program's pricing, phasing, and overall capability to be executed
on time/budget
Word: (71XX) Final document & purpose of Execution phase - ANSWER-Definition:
Operating Budget Authority Documents (OBAD) that IDs annual/cumulative quarterly
program and limitation
Word: (71XX) What is meant by Ceiling? - ANSWER-Definition: Maximum amount that
can be spent in a certain area
Word: (71XX) Who legally imposes Floors/Ceilings? Congress imposes Floors/Ceilings
- ANSWER-
Word: (7000) What does GAAP do for us? - ANSWER-Definition: Standard framework
of guidelines for financial accounting that guides accountants in recording & reporting
financial information
Word: (7000) What is budgetary account code? - ANSWER-Definition: Facilitates
compliance with legal constraints/controls over federal fund use (e.g. budget authority,
commitment, obligation, and disbursement) and
Word: (71XX) 3 things needed to develop the POM - ANSWER-Definition: 1) Baseline
2) Fiscal Guidance 3) Program Guidance.
Word: (5400) Why conduct an Economic Analysis? - ANSWER-Definition: Provide
analytic and uniform foundation upon which sound decisions can be made
Word: (5400) What is evaluated in Economic Analysis? - ANSWER-Definition: Approach
to use scarce resources to meet objective, weigh costs, benefits, and uncertainty for
each alternative.
, Word: (5420) What is CostBenefit Analysis? - ANSWER-Definition: Analyzing monetary
and non-monetary impacts of the status quo or alternatives
Word: (5420) What is inflation? - ANSWER-Definition: Rise in general level of prices
unaccompanied by a rise in output
Word: (5420) Why do we normalize costs that occurred over time? - ANSWER-
Definition: To make an "apples-to-apples" comparison among alternatives
Word: (71XX) What is purpose of the PPBE process? - ANSWER-Definition: PROVIDE
BEST MIX OF FORCES/EQUIPMENT/MANPOWER/SUPPORT ATTAINABLE WITHIN
FISCAL CONSTRAINTS
Word: (71XX) High-level purpose of Planning phase - ANSWER-Definition: ID capability
requirements
Word: (71XX) High-level purpose of Programming phase - ANSWER-Definition: Match
requirements to available resources
Word: (71XX) High-level purpose of Budgeting phase - ANSWER-Definition: Translate
programs into budget proposals
Word: (71XX) High-level purpose of Execution phase - ANSWER-Definition: Expend
resources and evaluate how we achieve desired capabilities
Word: (71XX) Final document & purpose of Planning phase - ANSWER-Definition: Plan-
to-Program Guidance for linking planning to programming;
Word: (71XX) Final document & purpose of Programming phase - ANSWER-Definition:
Program Objective Memorandum for framing program proposals, analysis of mission,
objectives, alternative methods, and allocation of resources
Word: (71XX) Primary function of the Air Force Corporate Structure (AFCS) - ANSWER-
Definition: Assess currently funded activities compared to competing new requirements
and make resource alignment recommendations to Senior Leadership (rack & stack)
Word: (71XX) 3 things that happen in preparation for submitting the PB to Congress? -
ANSWER-Definition: 1) AF Budget Analysts ID situations where programs have put AF
resources at risk of OSD/Congressional reduction ("marks") 2) AF Comptroller applies
inflation from OSD guidance (flying hours/manpower rates) 3) Reconfigure POM in OSD
Budget "Exhibits" and prepare budget "J-Books"
Word: (71XX) What role does Corporate Structure play? - ANSWER-Definition:
Evaluate the relative importance of currently funded activities compared to competing
new requirements and Make resource realignment recommendations to Senior
Leadership
QUESTIONS AND ANSWERS
Word: (3600) Unit Type Code - ANSWER-Definition: IDs/provides mission capability
(MISCAP)
Word: (3600) General Types of UTCs - ANSWER-Definition:
Manpower/Equipment/Both
Word: (71XX) Final document & purpose of Budgeting phase - ANSWER-Definition:
Budget Estimate Submission for submitting Defense Service/Agency budgetary detailed
information, such as program's pricing, phasing, and overall capability to be executed
on time/budget
Word: (71XX) Final document & purpose of Execution phase - ANSWER-Definition:
Operating Budget Authority Documents (OBAD) that IDs annual/cumulative quarterly
program and limitation
Word: (71XX) What is meant by Ceiling? - ANSWER-Definition: Maximum amount that
can be spent in a certain area
Word: (71XX) Who legally imposes Floors/Ceilings? Congress imposes Floors/Ceilings
- ANSWER-
Word: (7000) What does GAAP do for us? - ANSWER-Definition: Standard framework
of guidelines for financial accounting that guides accountants in recording & reporting
financial information
Word: (7000) What is budgetary account code? - ANSWER-Definition: Facilitates
compliance with legal constraints/controls over federal fund use (e.g. budget authority,
commitment, obligation, and disbursement) and
Word: (71XX) 3 things needed to develop the POM - ANSWER-Definition: 1) Baseline
2) Fiscal Guidance 3) Program Guidance.
Word: (5400) Why conduct an Economic Analysis? - ANSWER-Definition: Provide
analytic and uniform foundation upon which sound decisions can be made
Word: (5400) What is evaluated in Economic Analysis? - ANSWER-Definition: Approach
to use scarce resources to meet objective, weigh costs, benefits, and uncertainty for
each alternative.
, Word: (5420) What is CostBenefit Analysis? - ANSWER-Definition: Analyzing monetary
and non-monetary impacts of the status quo or alternatives
Word: (5420) What is inflation? - ANSWER-Definition: Rise in general level of prices
unaccompanied by a rise in output
Word: (5420) Why do we normalize costs that occurred over time? - ANSWER-
Definition: To make an "apples-to-apples" comparison among alternatives
Word: (71XX) What is purpose of the PPBE process? - ANSWER-Definition: PROVIDE
BEST MIX OF FORCES/EQUIPMENT/MANPOWER/SUPPORT ATTAINABLE WITHIN
FISCAL CONSTRAINTS
Word: (71XX) High-level purpose of Planning phase - ANSWER-Definition: ID capability
requirements
Word: (71XX) High-level purpose of Programming phase - ANSWER-Definition: Match
requirements to available resources
Word: (71XX) High-level purpose of Budgeting phase - ANSWER-Definition: Translate
programs into budget proposals
Word: (71XX) High-level purpose of Execution phase - ANSWER-Definition: Expend
resources and evaluate how we achieve desired capabilities
Word: (71XX) Final document & purpose of Planning phase - ANSWER-Definition: Plan-
to-Program Guidance for linking planning to programming;
Word: (71XX) Final document & purpose of Programming phase - ANSWER-Definition:
Program Objective Memorandum for framing program proposals, analysis of mission,
objectives, alternative methods, and allocation of resources
Word: (71XX) Primary function of the Air Force Corporate Structure (AFCS) - ANSWER-
Definition: Assess currently funded activities compared to competing new requirements
and make resource alignment recommendations to Senior Leadership (rack & stack)
Word: (71XX) 3 things that happen in preparation for submitting the PB to Congress? -
ANSWER-Definition: 1) AF Budget Analysts ID situations where programs have put AF
resources at risk of OSD/Congressional reduction ("marks") 2) AF Comptroller applies
inflation from OSD guidance (flying hours/manpower rates) 3) Reconfigure POM in OSD
Budget "Exhibits" and prepare budget "J-Books"
Word: (71XX) What role does Corporate Structure play? - ANSWER-Definition:
Evaluate the relative importance of currently funded activities compared to competing
new requirements and Make resource realignment recommendations to Senior
Leadership
