100+ Free CDFM Module 2 Practice Questions
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Key Facts: CDFM Module 2 Exam
80
Multiple-Choice Questions
SDFM CDFM Candidate Handbook v25.05
2 hours
Exam Time Limit
SDFM CDFM Candidate Handbook v25.05
$119
Exam Fee (per module)
SDFM CDFM Candidate Handbook v25.05
34.9%
Largest Domain (Fiscal Law)
2024 CDFM Module 2 Exam Blueprint
33.6%
Defense Budget Process Weight
2024 CDFM Module 2 Exam Blueprint
2 years
Window to Pass Modules 1-3
SDFM CDFM Candidate Handbook v25.05
80 CPEs
Recertification (every 2 years)
SDFM CDFM Candidate Handbook v25.05
CDFM Module 2 is a 2-hour, 80-question Pearson VUE exam (OnVUE or test center) that costs $119 per attempt under the 2026 SDFM fee schedule. The blueprint weights Defense Budget Process at 33.6%, Fiscal Law at 34.9%, Strategic Planning and Organizational Performance Management at 17.1%, and Cost and Economic Analysis at 14.4%. Candidates pass Modules 1-3 within a 2-year window to earn the CDFM, which is recognized by OUSD(C) and accepted in lieu of any DFMCP level.
Sample CDFM Module 2 Practice Questions
Try these sample questions to test your CDFM Module 2 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1What does the acronym PPBE stand for in the DoD resource allocation process?
2Which document is produced at the end of the Planning phase of PPBE and provides strategic guidance for the Programming phase?
3How many years of program data does the Future Years Defense Program (FYDP) typically display?
4Which appropriation category funds research, development, test, and evaluation activities in the DoD?
5How many years is RDT&E typically available for new obligation under the Bona Fide Need rule?
6How long are Procurement appropriations available for new obligation in the DoD?
7Which DoD appropriation is one-year money used to fund civilian pay, training, fuel, spare parts, and base support?
8Which appropriation funds construction of military facilities and is generally available for five years of new obligation?
9Under DoD rules, which appropriation category is used to buy a system that costs more than the established Procurement threshold and is a centrally managed end item?
10What is the primary product Components submit at the end of the Programming phase of PPBE?
About the CDFM Module 2 Exam
CDFM Module 2 — Budget and Cost Analysis — is the second of three required exams for the Certified Defense Financial Manager designation awarded by SDFM (formerly ASMC). The exam tests the DoD Planning, Programming, Budgeting, and Execution (PPBE) system, appropriation categories and color-of-money rules, fiscal law (Anti-Deficiency Act, Purpose Statute, Bona Fide Need rule), reprogramming and transfer authority, cost analysis and estimating techniques, Earned Value Management, Analysis of Alternatives, OMB Circular A-94 economic analysis, the Government Performance and Results Act, and DoD Working Capital Fund operations.
Questions
80 scored questions
Time Limit
2 hours
Passing Score
Not publicly disclosed
Exam Fee
$119 (Society of Defense Financial Management (SDFM))
CDFM Module 2 Exam Content Outline
Defense Budget Process
PPBE phases, DPG, POM, FYDP, RMD program review, congressional process (NDAA + DoD Appropriations Act), J-Books, CRs, appropriation categories and color-of-money rules, expense/investment threshold, and President's Budget transmission under OMB Circular A-11.
Cost and Economic Analysis
DoD cost analysis under OSD CAPE, life-cycle cost (RDT&E, Procurement, O&S, disposal), cost categories (sunk, opportunity, fixed, variable, marginal), estimating techniques (analogy, parametric, engineering build-up), learning curves, cost-risk Monte Carlo, S-curve confidence levels, EVM, AoA, and OMB A-94 BCA / NPV / payback / discount rates.
Strategic Planning and Organizational Performance Management
Government Management Reform Act of 1994, GPRA (1993) and GPRA Modernization Act of 2010, agency strategic plans and performance reports, Lean Six Sigma / Continuous Process Improvement, Enterprise Resource Planning (ERP) systems, DATA Act of 2014, and big-data management for DoD.
Fiscal Law
Constitutional authority to obligate funds; the Big Three statutes (31 USC §1301 Purpose, §1502 Time / Bona Fide Need, §1341 Amount / ADA); §1517 sub-allotment ADA; §1501 Recording Statute; §3302 Miscellaneous Receipts; §1535 Economy Act; appropriation life cycle (current, expired, closed) and 1% rule; reprogramming vs transfer; CRs; revolving funds; certifying-officer and disbursing-officer liability.
How to Pass the CDFM Module 2 Exam
What You Need to Know
- Passing score: Not publicly disclosed
- Exam length: 80 questions
- Time limit: 2 hours
- Exam fee: $119
Keys to Passing
- Complete 500+ practice questions
- Score 80%+ consistently before scheduling
- Focus on highest-weighted sections
- Use our AI tutor for tough concepts
CDFM Module 2 Study Tips from Top Performers
Frequently Asked Questions
What is the format of CDFM Module 2?
CDFM Module 2 — Budget and Cost Analysis — is a closed-book Pearson VUE exam delivered either at a test center or online via OnVUE. The exam contains 80 multiple-choice questions and has a 2-hour time limit. Restroom breaks are not permitted during the exam window. The exam is one of three CDFM modules required for certification.
How much does CDFM Module 2 cost in 2026?
Per the SDFM Candidate Handbook (v25.05), each CDFM module exam costs $119, the same fee for SDFM members and non-members. Together with the application fee, the total CDFM (3 modules) is $406 for SDFM members and $446 for non-members. Each retake also costs $119.
What topics does Module 2 cover?
The SDFM Module 2 blueprint weights four competency areas: Defense Budget Process (33.6%), Fiscal Law (34.9%), Strategic Planning and Organizational Performance Management (17.1%), and Cost and Economic Analysis (14.4%). Key content includes the PPBE process, appropriation categories and color-of-money rules, Anti-Deficiency Act and Purpose Statute, EVM, Analysis of Alternatives, OMB A-94 economic analysis, and DoD Working Capital Funds.
What is the CDFM Module 2 passing score?
SDFM does not publicly publish a numeric pass score for CDFM Module 2. Candidates receive a pass/fail result at the testing center along with diagnostic feedback on relative performance by competency area. Each module is scored independently, and the three modules must be passed within a 2-year window to earn the CDFM.
Can I take Module 2 online?
Yes. SDFM offers Module 2 either at Pearson VUE test centers worldwide (including some military installations) or online through OnVUE proctoring. OnVUE requires a stable internet connection, a webcam, and a private, quiet testing space, and you should run the Pearson VUE system test before scheduling. Test-center appointments may be rescheduled at no cost up to 4 business days in advance.
Who is eligible to sit for CDFM Module 2?
Any candidate enrolled in the CDFM Program may sit for Module 2 in any order. To earn the full CDFM, candidates must hold a high school diploma plus 3 years of defense FM experience, or an associate's degree plus 2 years of defense or 4 years of federal FM experience, and submit a signed Verification of Financial Management Experience (VFME) form.
How long should I study for CDFM Module 2?
SDFM recommends a minimum of 3 months of study per module based on the exam blueprint. Most successful candidates report 60-100 hours of focused study using the SDFM CDFM Module 2 Study Guide, the DoD FMR (Vols 2-3 and 11B for WCFs), OMB Circulars A-11 and A-94, and timed 80-question 2-hour practice tests.