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SDFM CDFM Module 2 Exam - Budget and Cost Analysis (2024-2)

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Vendor

SDFM

Certification

Defense Financial Management

Content

80 Qs

Status

Verified

Updated

10 hours ago

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Exam Overview

The SDFM CDFM Module 2 Exam, "Budget and Cost Analysis," is a pivotal step for financial professionals operating within the Department of Defense (DoD) and federal government. This certification validates your expertise in critical areas such as budget formulation, execution, and the intricate methodologies of cost analysis essential for sound financial stewardship. Mastering these concepts is not merely an academic exercise; it directly translates into enhanced capability for strategic resource allocation, informed decision-making, and ensuring fiscal accountability across complex defense programs. Earning this module signifies a deep understanding of the financial principles that underpin national security operations, positioning you as a highly valued asset capable of navigating the challenging fiscal landscape of government finance.

Questions

90

Passing Score

700/1000

Duration

110 Minutes

Difficulty

Expert

Level

Professional

Skills Measured

Budget Formulation and Execution: Understanding the DoD budget process, including planning, programming, budgeting, and execution (PPBE) phases, appropriations law, and congressional authorization and appropriation.
Cost Analysis Methodologies: Proficiency in various cost estimation techniques (e.g., analogy, parametric, engineering build-up), life cycle cost analysis, cost-benefit analysis, and risk assessment in cost projections.
Performance Measurement and Analysis: Ability to utilize metrics and indicators to evaluate program efficiency, effectiveness, and financial performance, including earned value management (EVM) principles.
Resource Allocation Strategies: Expertise in optimizing the allocation of financial resources to achieve mission objectives, considering fiscal constraints, competing priorities, and strategic imperatives.
Financial Management Regulations and Policy: Comprehensive knowledge of key financial regulations, policies, and directives governing federal and DoD budgeting, accounting, and financial reporting.

Career Path

Target Roles

Budget Analyst Financial Management Specialist Program Manager (Defense)

Common Questions

Is the material up to date?

Yes. We update our question bank weekly to match the latest SDFM standards. You get free updates for 90 days.

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Is there a guarantee?

Absolutely. If you fail the 2024-2 exam using our materials, we offer a full money-back guarantee.

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Free Study Guide Samples

Previewing updated 2024-2 bank (16 Questions).

QUESTION 1

Automated information systems (AIS) fall into what ACAT category?

A
ACAT I
B
ACAT II
C
ACAT III
D
ACAT IA

Correct Option:

QUESTION 2

What identifies the control structure that is tailored to address risks to data quality in federal spending data?

A
Access control logs for information systems
B
Data quality plan
C
Reliability assessment of data
D
Data risk management system

Correct Option:

QUESTION 3

When Congress completes their annual appropriation process, the total amount appropriated in that year represents the:

A
expected outlays for that fiscal year.
B
expected obligations for that fiscal year.
C
obligational authority for the life of the appropriations in the act.
D
accrued expenditures for that year.

Correct Option:

QUESTION 4

What act has the purpose to provide a more effective, efficient, and responsive government primarily for federal human resources and financial management?

A
Inspector General Act of 1978, as amended
B
Government Management Reform Act of 1994
C
Federal Information Security Management Act of 2002
D
Federal Managers Financial Integrity Act of 1982

Correct Option:

QUESTION 5

The National Intelligence Program is governed by which title of the United States Code?

A
Title 6 - Domestic Security
B
Title 10 - Armed Forces
C
Title 22 - Foreign Relations and Intercourse
D
Title 50 - War and National Defense

Correct Option:

QUESTION 6

According to the Cost as an Independent Variable (CAIV) costing principle, if the cost estimate for a major weapon system rises during the system demonstration period of development, what is DoD expected to do?

A
Add funding in the next Program Objective Memorandum (POM) submission to obtain a decision from OSD in the Program/Budget process.
B
Add funding to the overall cost of the program since the system is needed.
C
Submit the change to Congress in the next budget for decision by the Congressional Committees.
D
Hold funding level by reducing the number of units or the performance characteristics of the system.

Correct Option:

QUESTION 7

Which term means dividing a lump-sum appropriation into parts that are designated for specific organizations?

A
Sub-Appropriation
B
Reprogram
C
Authorization
D
Allocation

Correct Option:

QUESTION 8

If a major weapon system development program is intended to span three years, the first year budget should:

A
fund two years of effort.
B
fund only the work to be performed in the first year.
C
fully fund total development.
D
fund one-third of total development.

Correct Option:

QUESTION 9

Which of the following is not a DoD Component Enterprise Resource Planning (ERP) System?

A
Financial Improvement and Audit Readiness (FIAR)
B
Defense Enterprise Accounting and Management System (DEAMS)
C
Logistics Modernization Program (LMP)
D
General Fund Enterprise Business System (GFEBS)

Correct Option:

QUESTION 10

What is an indirect cost?

A
Cost not directly identified with a single final cost objective and often referred to as overhead costs
B
Cost that can be directly tracked or identified in the cost data for a specific work or material function with a particular definable acquisition item or program
C
Cost incurred in the past that will not be affected by any present or future decision
D
Cost for items and services that are expended one time or otherwise shortened time-period transaction that is not repeated at regular intervals

Correct Option:

QUESTION 11

Who is responsible for setting the discount rates for lease-purchase and cost-effectiveness analyses in the Federal Government?

A
Director of the Office of Management and Budget
B
Under Secretary of Defense (Comptroller)
C
Secretary of the Treasury
D
Chairman of the Joint Chiefs of Staff

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QUESTION 12

All of the following statements are true concerning the National Intelligence Program (NIP) except:

A
NIP resource management is overseen by the Director of National Intelligence.
B
NIP is governed by U.S.
C
NIP funds are reviewed, approved, and managed as a distinct entity.
D
NIP resource details are displayed in the President's Budget.

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QUESTION 13

Which tool should all Department of Defense (DoD) Components use to improve the operating effectiveness of their organizations across operational, administrative, science and technology, and support functions?

A
Total Quality Management
B
Continuous Process Improvement (CPI)/Lean Six Sigma (LSS) Program
C
Government Management Reform Act of 1994 (GMRA)
D
Process mapping

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QUESTION 14

In an Economy Act transaction, if an agency or unit filling the order has not incurred obligations before the end of the appropriation's availability period:

A
the appropriation must remain available for future obligations until the agreement is terminated.
B
the amount originally obligated must be deobligated in the same amount as the original obligation.
C
the amount originally obligated remains available for adjustments.
D
estimated obligations should be made prior to the end of the appropriation's availability period to cover the amounts which are anticipated after the availability period ends.

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QUESTION 15

The Secretary of Defense shall take action as is necessary to reform the Department of Defense to improve the efficacy and efficiency of the Department, and to improve the ability of the Department to prioritize among and assess the costs and benefits of covered elements of reform; which of the following is not a covered element of reform under 10 U.S.

C
Development and implementation of a uniform methodology for tracking and assessing cost savings and cost avoidance from reform initiatives
A
Tracking and implementation of technological approaches to improve management decision-making, such as artificial intelligence tools
B
Streamline and remove barriers to communication and develop sensible government processes
D
Business systems modernization

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QUESTION 16

Agencies are required to submit initial apportionment requests to the Office of Management and Budget (OMB) via SF-132 within how many days after approval of the act to provide new budget authority?

A
10 days
B
15 days
C
30 days
D
45 days

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Certification Path

Related Certifications

SDFM 2024-1 Updated: Aug 19, 2026 SDFM 2024-3 Updated: Aug 19, 2026
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