When financial managers adjust for cost inflation in programming and budgeting, they usually:

Answer:

• Prepare initial estimates in base-year (constant) dollars and escalate costs into then-year (current) dollars

Wrong Answers:

• Refer to Federal Reserve Board guidelines on outlay rates and income flows
• Expect investment appropriations, such as Procurement and RDTE, to have quick outlay rates
• Revise their POM submission based on the Program Budget Decision (PBD) released by the Deputy Secretary of Defense

Link:  ELO: 10d. Identify the concept of escalation in submitting program and budget documents