Will-Cost refers to which of the following in the APB context?

Will-Cost refers to which of the following in the APB context?

• A. Should-Cost refers to life-cycle costs used for budgeting.
• B. Will-Cost refers to the life-cycle cost estimates used for program budget input, reporting to Congress and cost thresholds.
• C. APB defines only the schedule, not costs.
• D. Should-Cost is the official DoD cost position.

Answer: (B)

Will-Cost in the APB context is the life-cycle cost estimate that is used for program budgeting input, reporting to Congress, and establishing cost thresholds. It represents the amount the program is expected to require to complete under current plans and risks, and it forms the official budget baseline used for approvals and oversight. This is why it’s the figure you see in budget submissions and in the thresholds that govern funding decisions. Should-Cost, by contrast, is a planning target that captures possible cost savings or efficiency opportunities; it’s not the formal budget input or the figure reported to Congress. The APB indeed covers costs as well as schedule and performance, so the statement that APB defines only the schedule is inaccurate. And the official DoD cost position is represented by the Will-Cost baseline, not Should-Cost.

Will-Cost in the APB context is the life-cycle cost estimate that is used for program budgeting input, reporting to Congress, and establishing cost thresholds. It represents the amount the program is expected to require to complete under current plans and risks, and it forms the official budget baseline used for approvals and oversight. This is why it’s the figure you see in budget submissions and in the thresholds that govern funding decisions.

Should-Cost, by contrast, is a planning target that captures possible cost savings or efficiency opportunities; it’s not the formal budget input or the figure reported to Congress. The APB indeed covers costs as well as schedule and performance, so the statement that APB defines only the schedule is inaccurate. And the official DoD cost position is represented by the Will-Cost baseline, not Should-Cost.