MCPPO EXAM SCRIPT VERIFIED
QUESTIONS WITH ACCURATE ANSWERS
●● The principal objectives of public purchasing are to:
Answer: -Obtain the materials, services, and facilities required by public
organizations
-When and where the materials, services, and facilities are needed
-At the best price reasonably available
-Through open, fair competition
-At a reasonable cost
●● Price=
Answer: is the amount actually paid to a vendor for materials, services
or facilities
●● Cost=
Answer: to obtain materials, services or facilities is inevitably higher
than the price paid to the vendor. That cost included the cost of
preparing specifications, advertising for bids or proposals, dealing with
vendor inquires, evaluating vendor's bids or proposals, dealing with any
bid protests, contracting and contract administration.
●● Competitive Marketplace:
,Answer: Pressures vendors to offer competitive quality at competitive
prices.
●● Open, fair competition:
Answer: is very important purchasing objective to both the public and
private sectors.
●● Affirmative Market Program
Answer: reserves contracts or portions of contracts for groups of vendors
that historically have been disadvantaged through discrimination
●● Establishing Authority for Approval of Transactions
Answer: The organization should clearly establish and document which
positions within the organization have the authority to approve specific
transactions.
●● Establishing Responsibility for Executing Transactions
Answer: The organization should clearly establish and document which
positions within the organization are responsible for carrying out
specific transactions and should provide a detailed description of the
procedures for carrying out and documenting each type of transaction.
●● Segregation of Duties
, Answer: Segregation of duties means that no employee should be in a
position to carry out an improper transaction and then conceal it. In other
words, a single individual should not have the ability to authorize a
transaction, carry out the transaction, record the transaction, maintain
custody of the assets resulting from the transaction, and control the
books and records relating to the transaction.
-Ex. in reading
●● Control of Access to Assets and Records
Answer: A public organization should take reasonable care to maintain
physical security over assets. The term "assets" refers generally to items,
equipment and furnishings that are the property of the public
organization. Inventories should generally be maintained in locked
storage areas accessible only to designated individuals. The organization
should establish a sign-out system to keep track of valuable items, such
as tools that are needed temporarily by employees. Items such as laptop
computers can be assigned on a long-term basis to employees who need
them, and a designated individual should be responsible for maintaining
records pertaining to these assignments. The internal control system
should ensure that the organization can hold employees are held
accountable for valuable equipment that they use in connection with
their jobs.
●● Monitoring
Answer: A public or private organization should monitor its internal
control system. To do this, the organization should designate an
individual to periodically review the work of each employee involved in
QUESTIONS WITH ACCURATE ANSWERS
●● The principal objectives of public purchasing are to:
Answer: -Obtain the materials, services, and facilities required by public
organizations
-When and where the materials, services, and facilities are needed
-At the best price reasonably available
-Through open, fair competition
-At a reasonable cost
●● Price=
Answer: is the amount actually paid to a vendor for materials, services
or facilities
●● Cost=
Answer: to obtain materials, services or facilities is inevitably higher
than the price paid to the vendor. That cost included the cost of
preparing specifications, advertising for bids or proposals, dealing with
vendor inquires, evaluating vendor's bids or proposals, dealing with any
bid protests, contracting and contract administration.
●● Competitive Marketplace:
,Answer: Pressures vendors to offer competitive quality at competitive
prices.
●● Open, fair competition:
Answer: is very important purchasing objective to both the public and
private sectors.
●● Affirmative Market Program
Answer: reserves contracts or portions of contracts for groups of vendors
that historically have been disadvantaged through discrimination
●● Establishing Authority for Approval of Transactions
Answer: The organization should clearly establish and document which
positions within the organization have the authority to approve specific
transactions.
●● Establishing Responsibility for Executing Transactions
Answer: The organization should clearly establish and document which
positions within the organization are responsible for carrying out
specific transactions and should provide a detailed description of the
procedures for carrying out and documenting each type of transaction.
●● Segregation of Duties
, Answer: Segregation of duties means that no employee should be in a
position to carry out an improper transaction and then conceal it. In other
words, a single individual should not have the ability to authorize a
transaction, carry out the transaction, record the transaction, maintain
custody of the assets resulting from the transaction, and control the
books and records relating to the transaction.
-Ex. in reading
●● Control of Access to Assets and Records
Answer: A public organization should take reasonable care to maintain
physical security over assets. The term "assets" refers generally to items,
equipment and furnishings that are the property of the public
organization. Inventories should generally be maintained in locked
storage areas accessible only to designated individuals. The organization
should establish a sign-out system to keep track of valuable items, such
as tools that are needed temporarily by employees. Items such as laptop
computers can be assigned on a long-term basis to employees who need
them, and a designated individual should be responsible for maintaining
records pertaining to these assignments. The internal control system
should ensure that the organization can hold employees are held
accountable for valuable equipment that they use in connection with
their jobs.
●● Monitoring
Answer: A public or private organization should monitor its internal
control system. To do this, the organization should designate an
individual to periodically review the work of each employee involved in
