O&M and ____ are expense appropriations?

O&M and ____ are expense appropriations?

• A. MILPERS
• B. MILCON
• C. RDT&E
• D. Procurement

Answer: (A)

Distinguishing expense (operating) appropriations from investment appropriations. O&M funds day-to-day operations and maintenance, while MILPERS covers pay and benefits for military personnel. Both are ongoing, recurring costs needed to run the force, so they are classified as expense appropriations. The others—RDT&E, Procurement, MILCON—fund development, acquisition, construction, and modernization efforts and are treated as investment or capital appropriations. Thus, MILPERS is the appropriate match with O&M as an expense appropriation.

Distinguishing expense (operating) appropriations from investment appropriations. O&M funds day-to-day operations and maintenance, while MILPERS covers pay and benefits for military personnel. Both are ongoing, recurring costs needed to run the force, so they are classified as expense appropriations. The others—RDT&E, Procurement, MILCON—fund development, acquisition, construction, and modernization efforts and are treated as investment or capital appropriations. Thus, MILPERS is the appropriate match with O&M as an expense appropriation.