CERTIFIED PURCHASING PROFESSIONAL
(CPP) EXAM QUESTION AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2026 Q&A INSTANT
DOWNLOAD PDF
1. The primary objective of purchasing management is to
A. Minimize inventory
B. Reduce supplier profits
C. Ensure uninterrupted production
D. Centralize decision-making
Answer: C
Rationale: Purchasing ensures materials are available when needed to
avoid production stoppages.
2. Which document formally authorizes a supplier to provide goods or
services?
A. Purchase requisition
B. Request for quotation
C. Purchase order
D. Receiving report
Answer: C
Rationale: A purchase order is a legal document authorizing the supplier
to deliver goods or services.
3. A purchase requisition is best described as
A. A supplier’s invoice
B. An internal request to buy goods
, C. A delivery confirmation
D. A payment authorization
Answer: B
Rationale: A requisition is an internal document requesting the purchasing
department to procure items.
4. Which purchasing approach emphasizes long-term supplier relationships?
A. Spot buying
B. Tactical buying
C. Strategic sourcing
D. Emergency procurement
Answer: C
Rationale: Strategic sourcing focuses on long-term value and supplier
partnerships.
5. The term “total cost of ownership” includes
A. Purchase price only
B. Purchase price and taxes
C. All costs from acquisition to disposal
D. Transportation costs only
Answer: C
Rationale: TCO accounts for all lifecycle costs associated with an item.
6. Which inventory system triggers replenishment at a fixed stock level?
A. Periodic review
B. ABC analysis
C. Just-in-time
D. Perpetual system
Answer: D
Rationale: A perpetual system tracks inventory continuously and triggers
replenishment at reorder points.
7. ABC analysis classifies inventory based on
A. Weight
B. Volume
, C. Value and usage
D. Supplier location
Answer: C
Rationale: ABC analysis prioritizes items based on their value and
consumption.
8. A request for quotation (RFQ) is used when
A. Specifications are unclear
B. Price is the main factor
C. Negotiation is prohibited
D. Suppliers are unknown
Answer: B
Rationale: RFQs are appropriate when specifications are clear and price
comparison is key.
9. Ethical purchasing requires buyers to
A. Accept gifts freely
B. Favor long-term suppliers regardless of cost
C. Avoid conflicts of interest
D. Share confidential bids
Answer: C
Rationale: Ethical standards require impartiality and avoidance of
conflicts of interest.
10.Which Incoterm places maximum responsibility on the buyer?
A. CIF
B. FOB
C. DDP
D. EXW
Answer: D
Rationale: Ex Works transfers responsibility to the buyer at the seller’s
premises.
(CPP) EXAM QUESTION AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2026 Q&A INSTANT
DOWNLOAD PDF
1. The primary objective of purchasing management is to
A. Minimize inventory
B. Reduce supplier profits
C. Ensure uninterrupted production
D. Centralize decision-making
Answer: C
Rationale: Purchasing ensures materials are available when needed to
avoid production stoppages.
2. Which document formally authorizes a supplier to provide goods or
services?
A. Purchase requisition
B. Request for quotation
C. Purchase order
D. Receiving report
Answer: C
Rationale: A purchase order is a legal document authorizing the supplier
to deliver goods or services.
3. A purchase requisition is best described as
A. A supplier’s invoice
B. An internal request to buy goods
, C. A delivery confirmation
D. A payment authorization
Answer: B
Rationale: A requisition is an internal document requesting the purchasing
department to procure items.
4. Which purchasing approach emphasizes long-term supplier relationships?
A. Spot buying
B. Tactical buying
C. Strategic sourcing
D. Emergency procurement
Answer: C
Rationale: Strategic sourcing focuses on long-term value and supplier
partnerships.
5. The term “total cost of ownership” includes
A. Purchase price only
B. Purchase price and taxes
C. All costs from acquisition to disposal
D. Transportation costs only
Answer: C
Rationale: TCO accounts for all lifecycle costs associated with an item.
6. Which inventory system triggers replenishment at a fixed stock level?
A. Periodic review
B. ABC analysis
C. Just-in-time
D. Perpetual system
Answer: D
Rationale: A perpetual system tracks inventory continuously and triggers
replenishment at reorder points.
7. ABC analysis classifies inventory based on
A. Weight
B. Volume
, C. Value and usage
D. Supplier location
Answer: C
Rationale: ABC analysis prioritizes items based on their value and
consumption.
8. A request for quotation (RFQ) is used when
A. Specifications are unclear
B. Price is the main factor
C. Negotiation is prohibited
D. Suppliers are unknown
Answer: B
Rationale: RFQs are appropriate when specifications are clear and price
comparison is key.
9. Ethical purchasing requires buyers to
A. Accept gifts freely
B. Favor long-term suppliers regardless of cost
C. Avoid conflicts of interest
D. Share confidential bids
Answer: C
Rationale: Ethical standards require impartiality and avoidance of
conflicts of interest.
10.Which Incoterm places maximum responsibility on the buyer?
A. CIF
B. FOB
C. DDP
D. EXW
Answer: D
Rationale: Ex Works transfers responsibility to the buyer at the seller’s
premises.
