Which statement about costs in the APB is FALSE?

Which statement about costs in the APB is FALSE?

• A. Will-Cost refers to life-cycle cost estimates used for program budget input, reporting to Congress and the cost thresholds and objectives in the APB.
• B. PMs develop, own, track and report against Should-Cost estimates at each major milestone.
• C. The APB is the agreement that specifies the program's cost and schedule performance baselines, and is used for tracking.
• D. Should-Cost is the official cost position of the DoD.

Answer: (D)

This question tests how cost concepts in the APB are defined and used. In DoD program management, the Acquisition Program Baseline (APB) sets the agreed-upon cost and schedule baselines used to track progress. Within that framework, there are two key cost positions: Will-Cost and Should-Cost. Will-Cost is the funded, official cost position—the amount the program is authorized and budgeted to spend, and it’s the baseline used for budgeting input, reporting to Congress, and monitoring cost thresholds in the APB. Should-Cost, on the other hand, is the target cost the program aims to achieve if efficient management and execution occur; PMs develop, own, track, and report Should-Cost estimates at major milestones to drive cost optimization. Therefore, Should-Cost is not the official cost position of the DoD; the official position is Will-Cost.

This question tests how cost concepts in the APB are defined and used. In DoD program management, the Acquisition Program Baseline (APB) sets the agreed-upon cost and schedule baselines used to track progress. Within that framework, there are two key cost positions: Will-Cost and Should-Cost. Will-Cost is the funded, official cost position—the amount the program is authorized and budgeted to spend, and it’s the baseline used for budgeting input, reporting to Congress, and monitoring cost thresholds in the APB. Should-Cost, on the other hand, is the target cost the program aims to achieve if efficient management and execution occur; PMs develop, own, track, and report Should-Cost estimates at major milestones to drive cost optimization. Therefore, Should-Cost is not the official cost position of the DoD; the official position is Will-Cost.