Which one of the following statements about an Economic Analysis (EA) is true? A

Question

Which one of the following statements about an Economic Analysis (EA) is true? A)  An EA must be updated at all milestones and decision review points B)  The Component Cost Agency prepares only the EA for ACAT IAC programs C) An EA contains information about both costs and benefits of a program D) An EA is required only at the Full Rate Production Decision Review for an ACAT ID program Which one of the following statements about an Economic Analysis (EA) is true? A)  An EA must be updated at all milestones and decision review points B)  The Component Cost Agency prepares only the EA for ACAT IAC programs C) An EA contains information about both costs and benefits of a program D) An EA is required only at the Full Rate Production Decision Review for an ACAT ID program

Explanation / Answer

Answer is option (C)

A)False. The EA is updated whenever directed by the Milestone Decision Authority, usually whenever program cost, schedule, or performance parameters significantly deviate from the approved Acquisition Program Baseline (APB).

B)False. Component Cost Estimate process may involve the component cost agency simply evaluating and recommending adjustments to the POE or in developing its own independent estimate (sometimes called the Component Cost Analysis (CCA).

C)True

D)False.The word "only" is erroneous.

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