CPPO ACTUAL 2026 STUDY GUIDE QUESTIONS AND
SOLUTIONS GRADED A+
✔✔Demand Analysis - ✔✔A government agency is preparing to tender for their supply
of light standards. What
would be the most likely first step the agency should perform in order to determine
whether to tender for a spot purchase or term contract?
A. Cost/Benefit Analysis
B. Forecasting
C. Demand Analysis
D. Value Analysis
✔✔Demurrage - ✔✔The entity ordered two truckloads of gravel. When the trucks
arrived at the
designated time and place, the entity was not able to accept the gravel for 3 hours,
holding up the supplier's trucks. The entity was charged a penalty fee. What is this
fee called?
A. Detention
B. Dispatch fine
C. Demurrage
D. Demand deposit
✔✔Apparent authority - ✔✔Facilities Management Office of a public agency rented a
sea container from a
supplier for $600.00. The container was delivered after the business hours, and a
security officer on duty signed off on a delivery receipt and a Property Damage
Release at the request of the truck driver. 10 days after delivery of the container, the
supplier sent the invoice to the agency for payment. What type of authority did the
security officer assume?
A. Express authority
B. Implied authority
C. Apparent authority
D. Inherent authority
✔✔$171,481.00 - ✔✔The Fleet Department is considering purchasing four vehicles for
the Parks
Department and has requested Purchasing's assistance in determining the total cost
of ownership. The lifecycle of each vehicle is estimated at five years. The purchase
price of each vehicle is $22,499.00. Yearly maintenance cost per vehicle is
approximately $1,250. Fuel is estimated at approximately $2,650 per vehicle per
year. Insurance per vehicle is $874.25 per year. Salvage value is determined to be
$3,500 per unit. What is the total cost of ownership for this purchase?
A. $157,493.00
B. $190,511.00
C. $171,481.00
D. $193,996.00
, ✔✔Document instances of performance problems - ✔✔When an employee's
performance problem is initially suspected, what should the
manager do?
A. Look for evidence of alcohol or drug use
B. Call a meeting with the employee and the HR Manager
C. Place the employee on the performance improvement process
D. Document instances of performance problems
✔✔The supplier is protected against unusual price increases - ✔✔What is the benefit of
using a fixed price with escalation contract?
A. The supplier is protected against unusual price increases
B. Procurement has less contract administration by using this type of contract
C. The supplier has increased contract risk and procurement has decreased contract
risk
D. Procurement can change the escalation indexation at any time during the contract
✔✔Avoid unduly disrupting or delaying the procurement process - ✔✔In response to a
protest a governmental agency may grant a request in full or in part
for a hearing. If the governmental agency grants a request, it will usually hold a
prehearing
conference to clarify procedural issues and substantive questions. What is
the purpose of this hearing?
A. Avoid unduly disrupting or delaying the procurement process
B. Create an atmosphere of trust between the bidder and governmental agency
C. Decrease the speed at which a protest takes place
D. Ensure the governmental agency can participate in a hearing
✔✔ISO 9000 certification - ✔✔In an effort to upgrade the reliability of its suppliers, the
agency wants to do business
only with suppliers who are committed to Total Quality Management. What should
be added to the supplier requirements?
A. Zero Defects Program certification
B. ISO 9000 certification
C. Six Sigma certification
D. Life Cycle Assessment practices (LCA)
✔✔Creates a green initiative through the resources of a supplier - ✔✔An agency has a
large contract with a major printer/copier company. The supplier
has offered to provide training on power management features, and training on how
to do simple cleaning of the copiers/printers that will extend the life of the equipment.
What strategic benefit does this offer?
A. Creates awareness of the power consumption of the copiers and printers
B. Creates a green initiative through the resources of a supplier
C. Creates in-house capability to increase up-time of copiers and printers
D. Provides training agency does not have to deliver
SOLUTIONS GRADED A+
✔✔Demand Analysis - ✔✔A government agency is preparing to tender for their supply
of light standards. What
would be the most likely first step the agency should perform in order to determine
whether to tender for a spot purchase or term contract?
A. Cost/Benefit Analysis
B. Forecasting
C. Demand Analysis
D. Value Analysis
✔✔Demurrage - ✔✔The entity ordered two truckloads of gravel. When the trucks
arrived at the
designated time and place, the entity was not able to accept the gravel for 3 hours,
holding up the supplier's trucks. The entity was charged a penalty fee. What is this
fee called?
A. Detention
B. Dispatch fine
C. Demurrage
D. Demand deposit
✔✔Apparent authority - ✔✔Facilities Management Office of a public agency rented a
sea container from a
supplier for $600.00. The container was delivered after the business hours, and a
security officer on duty signed off on a delivery receipt and a Property Damage
Release at the request of the truck driver. 10 days after delivery of the container, the
supplier sent the invoice to the agency for payment. What type of authority did the
security officer assume?
A. Express authority
B. Implied authority
C. Apparent authority
D. Inherent authority
✔✔$171,481.00 - ✔✔The Fleet Department is considering purchasing four vehicles for
the Parks
Department and has requested Purchasing's assistance in determining the total cost
of ownership. The lifecycle of each vehicle is estimated at five years. The purchase
price of each vehicle is $22,499.00. Yearly maintenance cost per vehicle is
approximately $1,250. Fuel is estimated at approximately $2,650 per vehicle per
year. Insurance per vehicle is $874.25 per year. Salvage value is determined to be
$3,500 per unit. What is the total cost of ownership for this purchase?
A. $157,493.00
B. $190,511.00
C. $171,481.00
D. $193,996.00
, ✔✔Document instances of performance problems - ✔✔When an employee's
performance problem is initially suspected, what should the
manager do?
A. Look for evidence of alcohol or drug use
B. Call a meeting with the employee and the HR Manager
C. Place the employee on the performance improvement process
D. Document instances of performance problems
✔✔The supplier is protected against unusual price increases - ✔✔What is the benefit of
using a fixed price with escalation contract?
A. The supplier is protected against unusual price increases
B. Procurement has less contract administration by using this type of contract
C. The supplier has increased contract risk and procurement has decreased contract
risk
D. Procurement can change the escalation indexation at any time during the contract
✔✔Avoid unduly disrupting or delaying the procurement process - ✔✔In response to a
protest a governmental agency may grant a request in full or in part
for a hearing. If the governmental agency grants a request, it will usually hold a
prehearing
conference to clarify procedural issues and substantive questions. What is
the purpose of this hearing?
A. Avoid unduly disrupting or delaying the procurement process
B. Create an atmosphere of trust between the bidder and governmental agency
C. Decrease the speed at which a protest takes place
D. Ensure the governmental agency can participate in a hearing
✔✔ISO 9000 certification - ✔✔In an effort to upgrade the reliability of its suppliers, the
agency wants to do business
only with suppliers who are committed to Total Quality Management. What should
be added to the supplier requirements?
A. Zero Defects Program certification
B. ISO 9000 certification
C. Six Sigma certification
D. Life Cycle Assessment practices (LCA)
✔✔Creates a green initiative through the resources of a supplier - ✔✔An agency has a
large contract with a major printer/copier company. The supplier
has offered to provide training on power management features, and training on how
to do simple cleaning of the copiers/printers that will extend the life of the equipment.
What strategic benefit does this offer?
A. Creates awareness of the power consumption of the copiers and printers
B. Creates a green initiative through the resources of a supplier
C. Creates in-house capability to increase up-time of copiers and printers
D. Provides training agency does not have to deliver
