PFMC EXAM 2 QUESTIONS WITH VERIFIED
ANSWERS
High level familiarity with what a UTC does for us - answer-Identifies a potential capability
focused on accomplishment of a specific mission the military service provides; FM has seven
UTCs (officer, enlisted, equipment)
Introduction to the Economic Analysis Approach: you should understand at the high level why
we do an economic analysis and what we're evaluating when we conduct an economic analysis -
answer-Why? provides an analytic and uniform foundation upon which sound decisions can be
made What is being evaluated? Costs, benefits, uncertainty
At a high level what do we mean by a cost benefit analysis? - answer-Costs analysis, depicted in
dollars, reflect the monetary impacts (good/bad) of the status quo or alternatives. Benefit
analysis is generally limited to the non-monetary impacts of the status quo or alternatives
(quantitative or qualitative)
What is inflation? - answer-a rise in the general level of prices unaccompanied by a rise in
output
Why do we normalize costs that occurred over time? - answer-in order to make an "apples-to-
apples" comparison among alternatives. Allows meaningful comparison of projects funded in
different time periods
What are the phases of PPBE? - answer-Planning Identify capability requirements
Programming Match requirements to available resource
Budgeting Translate programs into budget proposals
1
, Execution Expend resources and evaluate how we achieved desired capabilities
What is the final Document of each phase of PPBE? - answer-Planning: Plan to program
guidance.
Programming: Program Objective Memorandum (POM).
Budget: PB
Execution: none
3 things needed in order to develop the POM - answer-Baseline. fiscal guidance. program
guidance
Know the primary function of the Air Force Corporate Structure. - answer-Principle function in
the budget build: Assess relative importance of currently funded activities compared to
competing new requirements; Make resource realignment recommendations to senior
leadership
What are the 3 things that happen in preparation for submitting the PB to Congress? -
answer-1. AF budget analysts identify situations where programs have put AF resources at risk
of OSD or Congressional reduction
2. AF Comptroller applies the latest inflation figures typically defined in OSD guidance (e.g. flying
hours and manpower rates)
3. Reconfigure POM into OSD budget "exhibits" and prepare budget justification documentation
What role does the Corporate Structure play - answer-Principle function in the budget build:
Assess relative importance of currently funded activities compared to competing new
requirements; Make resource realignment recommendations to senior leadership
What does the AF submits to Congress as support for the budget request - answer-Justification
2
ANSWERS
High level familiarity with what a UTC does for us - answer-Identifies a potential capability
focused on accomplishment of a specific mission the military service provides; FM has seven
UTCs (officer, enlisted, equipment)
Introduction to the Economic Analysis Approach: you should understand at the high level why
we do an economic analysis and what we're evaluating when we conduct an economic analysis -
answer-Why? provides an analytic and uniform foundation upon which sound decisions can be
made What is being evaluated? Costs, benefits, uncertainty
At a high level what do we mean by a cost benefit analysis? - answer-Costs analysis, depicted in
dollars, reflect the monetary impacts (good/bad) of the status quo or alternatives. Benefit
analysis is generally limited to the non-monetary impacts of the status quo or alternatives
(quantitative or qualitative)
What is inflation? - answer-a rise in the general level of prices unaccompanied by a rise in
output
Why do we normalize costs that occurred over time? - answer-in order to make an "apples-to-
apples" comparison among alternatives. Allows meaningful comparison of projects funded in
different time periods
What are the phases of PPBE? - answer-Planning Identify capability requirements
Programming Match requirements to available resource
Budgeting Translate programs into budget proposals
1
, Execution Expend resources and evaluate how we achieved desired capabilities
What is the final Document of each phase of PPBE? - answer-Planning: Plan to program
guidance.
Programming: Program Objective Memorandum (POM).
Budget: PB
Execution: none
3 things needed in order to develop the POM - answer-Baseline. fiscal guidance. program
guidance
Know the primary function of the Air Force Corporate Structure. - answer-Principle function in
the budget build: Assess relative importance of currently funded activities compared to
competing new requirements; Make resource realignment recommendations to senior
leadership
What are the 3 things that happen in preparation for submitting the PB to Congress? -
answer-1. AF budget analysts identify situations where programs have put AF resources at risk
of OSD or Congressional reduction
2. AF Comptroller applies the latest inflation figures typically defined in OSD guidance (e.g. flying
hours and manpower rates)
3. Reconfigure POM into OSD budget "exhibits" and prepare budget justification documentation
What role does the Corporate Structure play - answer-Principle function in the budget build:
Assess relative importance of currently funded activities compared to competing new
requirements; Make resource realignment recommendations to senior leadership
What does the AF submits to Congress as support for the budget request - answer-Justification
2
