CPPO ACTUAL 2026 CORE EXAM TEST QUESTIONS AND
SOLUTIONS GRADED A+
✔✔According to Maslow's Hierarchy of Needs, which of the following is considered to
be the ultimate human need?
According to Maslow's Hierarchy of Needs, which of the following is considered to be
the ultimate human need? - ✔✔Self Actualization
✔✔The costs of maintaining an inventory of supplies (e.g. the costs of invested funds,
insurance, storage, obsolescence, deterioration, equipment and labor) are known as: -
✔✔Carrying Costs
✔✔One of the benefits of using Requests for Proposals is recognizing that the best
solutions can come from field experts who deal on a daily basis with conflicts we are
trying to solve. This benefit is known as: - ✔✔Value Engineering
✔✔In preparing to write a specification or scope of work, we may want to consider one
of two methods of gathering facts or details from potential vendors. We can invite
several of them to come to our agency and make a presentation or we can cast a wider
net with this technique. - ✔✔Request for Information
✔✔The city has had a term contract in place for two years. The original term of the
contract was for up to three years. Usage of the contract has declined to almost nothing.
The city purchasing manager has decided to cancel the contract. Which of the following
methods best addresses this action? - ✔✔Termination for convenience
✔✔Laws governing public records, open meetings and freedom of information are
known by this illuminating phrase. - ✔✔Sunshine law
✔✔Requesting a contractor provide information as to why a contract should not be
terminated for default is the purpose of a: - ✔✔Show cause notice
✔✔Why is the Request for Proposal (RFP) process often perceived as problematic by
an agency's leadership? - ✔✔The award decision is based on qualitative variables.
✔✔Examples of audits are: - ✔✔Financial, compliance and management
✔✔Examples of three types of audit reports are:* - ✔✔Intradepartmental,
interdepartmental, higher level management
✔✔Intradepartmental means:* - ✔✔Designed to inform the management in your
department concerning departmental matters.
,✔✔Interdepartmental means: * - ✔✔Distribution to other departments, outside of your
department, on a need to know basis.
✔✔Higher Level Management:* - ✔✔reports issued to senior management and other
key personnel.
✔✔eCommerce means: - ✔✔The integration of Electronic Data Interchange (EDI),
electronic funds transfer (EFT) and similar techniques into a comprehensive electronic
based system of procurement functions.
✔✔eProcurement or eSourcing - ✔✔Is the process of using electronic technologies for
purchasing goods and services and includes conducting all or some of the functions
over the internet.
✔✔The promise of eProcurement makes it an attractive option to consider. Anticipated
benefits may include: - ✔✔Cost savings through reduced data entry errors in
procurement systems
Savings in cycle time within the procurement process
The ability to negotiate best value with suppliers
Increased opportunities for streamlining and re-engineering business processes
The potential for improving and monitoring supplier relationships
Fewer misunderstandings and errors between purchasing staff and departments
✔✔The internet is instrumental in providing significant and useful tools for public
organizations to engage in eProcurement and eCommerce using real-time technology.
Some of those benefits include: - ✔✔Greater effectiveness and efficiency
Making significant benefits in the process and output improvements
Reduction in operating costs
Improved customer service
Up-to-date information that enhances decision making
Ability to electronically solicit bids, quotes and proposals
electronically transmit information to a supplier, place order and pay.
✔✔Purchase Cards (pCards) is defined as: - ✔✔A fast and flexible purchasing and
payment tool that provides an efficient and effective method for acquiring goods and
services.
✔✔Smart Card is defined as: - ✔✔A card to make small purchases, but is considered
an "electronic wallet" because it's embedded with a chip that stores data for a variety of
uses including an individuals complete personnel and medical records.
✔✔Socioeconomic is defined as: - ✔✔Whats going on in a social environment that
effects business such as "Green Procurement."
,✔✔Set-Asides is defined as: - ✔✔A previous term used by agencies to designate
certain contracts for competition by disadvantaged business's. The current term used is
"goals"
✔✔Purchase history files contain the following types of files: - ✔✔Commodity files,
agency files, vendor files, purchase order or contract files, inventory files.
✔✔Purchasing Policy is defined as: - ✔✔A course of action adopted by the public
agency that provides guidance relative to procurement actions. The purchasing policy of
an agency reflects:
-policies and practices used to acquire goods
-the state's legal system
-the goals and values of an agency
✔✔Policies and Procedures are maintained at several levels: - ✔✔Policy Manual
Procedures Manual
Vendor Manual
✔✔Policy manuals are defined as: - ✔✔Centrally written, controlled and used to guide
behavior towards specific organizational objectives.
✔✔Procedures manuals are defined as: - ✔✔manuals written at a finer level of detail
that sets out processes, forms and steps. Used primarily by the end using department
and procurement staff.
✔✔Vendor Manuals are defined as: - ✔✔Manuals that provide formal and extensive
information for vendors seeking to do business with the organization.
✔✔Purchasing managers involved in the establishment of policy must: - ✔✔Be
responsive and adaptive to their environment
Act in the best interest of the government
Be well-informed about the information associated with regulations
Provide the support to perform functions within established policies and procedures
✔✔What is the difference in an Operating and Capital Budgeting function? -
✔✔Operating budget is what it takes to run day to day operations and capital budgeting
is high dollar permanent improvements.
✔✔Budgeting is defined as: - ✔✔The allocation of scarce resources among competing
demands and entails aspects of planning and fiduciary relationships to ensure that
sufficient cash resources will be available to support the expenditure when the
commitment is made.
✔✔Budgeting Cycle** - ✔✔Planning
Formalization
, Implementation
Evaluation
✔✔Adoption in procurement terms is defined as: - ✔✔The approval of the budget for a
governing body. This includes legal adoption of expenditures and revenues which
normally involve public hearings.
✔✔Budget Implementation is defined as: - ✔✔The execution of the budget during the
budgeting period. Involves collecting the revenues and expending the proceeds for the
purposes intended.
✔✔An allotment is defined as: - ✔✔Controlling the rate of spending authorized by an
appropriation.
✔✔Allocation is defined as: - ✔✔Controls specific use of the monies appropriated.
✔✔Budget Evaluation is defined as: - ✔✔Assessing the results of a budget. includes
monitoring various budget reports and conducting and publishing performance audit
results.
✔✔Two common accounting methods used in industry and government to keep track of
income and expenses: - ✔✔Cash basis accounting and accrual basis accounting
✔✔Cash basis accounting is defined as: - ✔✔Income is not counted until cash is
actually received and expenses are not counted until they are actually paid.
✔✔Accrual basis accounting is defined as: - ✔✔A system by which transactions are
recognized at the time they are incurred, as opposed to when cash is received or spent.
This is the most commonly used method.
✔✔A budget can be evaluated in four ways: - ✔✔As a policy document-a good budget
should articulate the program priorities and goals.
As an operations guide- a good budget should indicate the allocation of resources and
the performance objectives and measures of various departments, programs and
activities.
As a financial plan-a good financial plan or budget should indicate the sources of
revenue or any debt financing.
As a communications device-a good budget should stimulate dialogue among the public
about important budget issues.
✔✔A fund is defined as: - ✔✔An independent fiscal entity with assets, liabilities,
reserves a residual balance or equity, and revenues and expenditures for undertaking
activities. Funds may be expendable, non-expendable or revolving.
SOLUTIONS GRADED A+
✔✔According to Maslow's Hierarchy of Needs, which of the following is considered to
be the ultimate human need?
According to Maslow's Hierarchy of Needs, which of the following is considered to be
the ultimate human need? - ✔✔Self Actualization
✔✔The costs of maintaining an inventory of supplies (e.g. the costs of invested funds,
insurance, storage, obsolescence, deterioration, equipment and labor) are known as: -
✔✔Carrying Costs
✔✔One of the benefits of using Requests for Proposals is recognizing that the best
solutions can come from field experts who deal on a daily basis with conflicts we are
trying to solve. This benefit is known as: - ✔✔Value Engineering
✔✔In preparing to write a specification or scope of work, we may want to consider one
of two methods of gathering facts or details from potential vendors. We can invite
several of them to come to our agency and make a presentation or we can cast a wider
net with this technique. - ✔✔Request for Information
✔✔The city has had a term contract in place for two years. The original term of the
contract was for up to three years. Usage of the contract has declined to almost nothing.
The city purchasing manager has decided to cancel the contract. Which of the following
methods best addresses this action? - ✔✔Termination for convenience
✔✔Laws governing public records, open meetings and freedom of information are
known by this illuminating phrase. - ✔✔Sunshine law
✔✔Requesting a contractor provide information as to why a contract should not be
terminated for default is the purpose of a: - ✔✔Show cause notice
✔✔Why is the Request for Proposal (RFP) process often perceived as problematic by
an agency's leadership? - ✔✔The award decision is based on qualitative variables.
✔✔Examples of audits are: - ✔✔Financial, compliance and management
✔✔Examples of three types of audit reports are:* - ✔✔Intradepartmental,
interdepartmental, higher level management
✔✔Intradepartmental means:* - ✔✔Designed to inform the management in your
department concerning departmental matters.
,✔✔Interdepartmental means: * - ✔✔Distribution to other departments, outside of your
department, on a need to know basis.
✔✔Higher Level Management:* - ✔✔reports issued to senior management and other
key personnel.
✔✔eCommerce means: - ✔✔The integration of Electronic Data Interchange (EDI),
electronic funds transfer (EFT) and similar techniques into a comprehensive electronic
based system of procurement functions.
✔✔eProcurement or eSourcing - ✔✔Is the process of using electronic technologies for
purchasing goods and services and includes conducting all or some of the functions
over the internet.
✔✔The promise of eProcurement makes it an attractive option to consider. Anticipated
benefits may include: - ✔✔Cost savings through reduced data entry errors in
procurement systems
Savings in cycle time within the procurement process
The ability to negotiate best value with suppliers
Increased opportunities for streamlining and re-engineering business processes
The potential for improving and monitoring supplier relationships
Fewer misunderstandings and errors between purchasing staff and departments
✔✔The internet is instrumental in providing significant and useful tools for public
organizations to engage in eProcurement and eCommerce using real-time technology.
Some of those benefits include: - ✔✔Greater effectiveness and efficiency
Making significant benefits in the process and output improvements
Reduction in operating costs
Improved customer service
Up-to-date information that enhances decision making
Ability to electronically solicit bids, quotes and proposals
electronically transmit information to a supplier, place order and pay.
✔✔Purchase Cards (pCards) is defined as: - ✔✔A fast and flexible purchasing and
payment tool that provides an efficient and effective method for acquiring goods and
services.
✔✔Smart Card is defined as: - ✔✔A card to make small purchases, but is considered
an "electronic wallet" because it's embedded with a chip that stores data for a variety of
uses including an individuals complete personnel and medical records.
✔✔Socioeconomic is defined as: - ✔✔Whats going on in a social environment that
effects business such as "Green Procurement."
,✔✔Set-Asides is defined as: - ✔✔A previous term used by agencies to designate
certain contracts for competition by disadvantaged business's. The current term used is
"goals"
✔✔Purchase history files contain the following types of files: - ✔✔Commodity files,
agency files, vendor files, purchase order or contract files, inventory files.
✔✔Purchasing Policy is defined as: - ✔✔A course of action adopted by the public
agency that provides guidance relative to procurement actions. The purchasing policy of
an agency reflects:
-policies and practices used to acquire goods
-the state's legal system
-the goals and values of an agency
✔✔Policies and Procedures are maintained at several levels: - ✔✔Policy Manual
Procedures Manual
Vendor Manual
✔✔Policy manuals are defined as: - ✔✔Centrally written, controlled and used to guide
behavior towards specific organizational objectives.
✔✔Procedures manuals are defined as: - ✔✔manuals written at a finer level of detail
that sets out processes, forms and steps. Used primarily by the end using department
and procurement staff.
✔✔Vendor Manuals are defined as: - ✔✔Manuals that provide formal and extensive
information for vendors seeking to do business with the organization.
✔✔Purchasing managers involved in the establishment of policy must: - ✔✔Be
responsive and adaptive to their environment
Act in the best interest of the government
Be well-informed about the information associated with regulations
Provide the support to perform functions within established policies and procedures
✔✔What is the difference in an Operating and Capital Budgeting function? -
✔✔Operating budget is what it takes to run day to day operations and capital budgeting
is high dollar permanent improvements.
✔✔Budgeting is defined as: - ✔✔The allocation of scarce resources among competing
demands and entails aspects of planning and fiduciary relationships to ensure that
sufficient cash resources will be available to support the expenditure when the
commitment is made.
✔✔Budgeting Cycle** - ✔✔Planning
Formalization
, Implementation
Evaluation
✔✔Adoption in procurement terms is defined as: - ✔✔The approval of the budget for a
governing body. This includes legal adoption of expenditures and revenues which
normally involve public hearings.
✔✔Budget Implementation is defined as: - ✔✔The execution of the budget during the
budgeting period. Involves collecting the revenues and expending the proceeds for the
purposes intended.
✔✔An allotment is defined as: - ✔✔Controlling the rate of spending authorized by an
appropriation.
✔✔Allocation is defined as: - ✔✔Controls specific use of the monies appropriated.
✔✔Budget Evaluation is defined as: - ✔✔Assessing the results of a budget. includes
monitoring various budget reports and conducting and publishing performance audit
results.
✔✔Two common accounting methods used in industry and government to keep track of
income and expenses: - ✔✔Cash basis accounting and accrual basis accounting
✔✔Cash basis accounting is defined as: - ✔✔Income is not counted until cash is
actually received and expenses are not counted until they are actually paid.
✔✔Accrual basis accounting is defined as: - ✔✔A system by which transactions are
recognized at the time they are incurred, as opposed to when cash is received or spent.
This is the most commonly used method.
✔✔A budget can be evaluated in four ways: - ✔✔As a policy document-a good budget
should articulate the program priorities and goals.
As an operations guide- a good budget should indicate the allocation of resources and
the performance objectives and measures of various departments, programs and
activities.
As a financial plan-a good financial plan or budget should indicate the sources of
revenue or any debt financing.
As a communications device-a good budget should stimulate dialogue among the public
about important budget issues.
✔✔A fund is defined as: - ✔✔An independent fiscal entity with assets, liabilities,
reserves a residual balance or equity, and revenues and expenditures for undertaking
activities. Funds may be expendable, non-expendable or revolving.
