CPPA MODULE 3 EXAM QUESTIONS
WITH CORRECT ANSWERS
When should items in Category A be ordered and why? - Answer-They should be
ordered frequently to reduce the dollar value of inventory in stock account
What level should the Safety Stock be for Category A stock account? - Answer-It should
low as possible without risking stock outages
What does Category B account for in the ABC plan in a stock account? - Answer-B
category accounts for approximately 15% of the dollar value of the warehouse demand
and about 15% of the stock records.
Moderate management attention should be applied to these items due to their low
impact on both dollar investment and inventory turnover is smaller
When should items in Category B be ordered? - Answer-May be ordered two to six
times per year depending on demand
What level should the Safety Stock be for Category B stock account? - Answer-Safety
stock should be at a moderate level, 30 to 60 days
What does Category C account for in the ABC plan in a stock account? - Answer-C
Category accounts for only 10% to 15% of the dollar value but makes up the remaining
75% of the items in the stock records.
Items in this category receive the least management attention due to their low impact
When should items in Category C be ordered? - Answer-once or twice a year
What level should the Safety Stock be for Category C stock account? - Answer-Safety
stock maybe large since the dollar investment in inventory is low
When should the ROPs and ROQs for each category in the ABC Selective Stock Plan
be reviewed? - Answer-A - Quarterly
B - Quarterly or semi-annually
C- Updated at least annually
,When should Sample Inventories be conducted on Category A items? - Answer-They
should be done throughout the year with inventory conducted once a week or once a
month
Which items are not included in the ABC plan control? - Answer-Pilferable items such
as film, compact disks, and electronic media.
...... They are kept in a controlled area and inventoried often
What are Insured Items in the stock plan? - Answer-They are those items that are
retained regardless of their lack of demand or their surplus stock position
They may include:
- Items with a high dollar unit cost
- Items with a long lead time
- Items with an unpredictable demand rate
- Items whose lack of would have a significant detrimental impact on mission
performance
To be an effective Property Manager, what is important when administering their portion
of a contract or an agreement? - Answer-They must fully understand the terms of the
contract and contract administration process
Who is responsible for incorporating provisions into the contract covering the control,
use, disposition, etc., of contract-accountable property? - Answer-Contracting Officer
Under what authority are Federal Government contracts awarded? - Answer-under the
authority of Federal Acquisition Regulation (FAR)
Under what authority are local Government o commercial business contracts awarded?
- Answer-under the Uniform Commercial Code (UCC)
What are at the heart of adding value to an organization? - Answer-Understanding how
a contract is formed and knowing where to look for essential information concerning
property management
Contract wise, what is the most important part of the job for a Property Manager? -
Answer-How to interpret the contract for the benefit of the organization
What factors determine what type of agreement to be selected for a given project? -
Answer-- Work to be performed
, - Methods of financing
- Billing
- Payment to be used
- Purpose of the project
What are some of the common types of agreements - Answer-- Contract (most familiar)
- Grants
- Cooperative agreements
- Sub-awards
- Bailment agreements
What are parts of a contract? - Answer-First part - design of the equipment followed by
the phases of development, test, evaluation, and finally production
What must the contract types accommodate? - Answer-They must accommodate the
entire spectrum of possible transactions and their associated risks to each party
involved
What is the main determination when selecting which contract is best? - Answer-Which
contract type will diminish the risk and increase the benefits to both parties involved
Contracts are divided into what two broad families? - Answer-1. Fixed-price
2. Cost reimbursement
Where does the greatest financial risk fall in a Firm-Fixed-Price (FFP) contract? -
Answer-On the vendor
Where does the greatest financial risk fall in a Cost-Plus-Fixed-Fee (CPFF) contract? -
Answer-on the acquiring organization
Between Firm-Fixed-Price (FFP) and Cost-Plus-Fixed-Fee (CPFF) contracts, which one
is the easiest to understand and administer and why? - Answer-- FFP
- Even with subsequent contract modifications, both parties know at the start what the
price will be and precisely what the deliverable will be.
Conversely, when is a CPFF contract used? - Answer-When uncertainty exists as to the
nature of the product to be delivered and the ultimate cost
WITH CORRECT ANSWERS
When should items in Category A be ordered and why? - Answer-They should be
ordered frequently to reduce the dollar value of inventory in stock account
What level should the Safety Stock be for Category A stock account? - Answer-It should
low as possible without risking stock outages
What does Category B account for in the ABC plan in a stock account? - Answer-B
category accounts for approximately 15% of the dollar value of the warehouse demand
and about 15% of the stock records.
Moderate management attention should be applied to these items due to their low
impact on both dollar investment and inventory turnover is smaller
When should items in Category B be ordered? - Answer-May be ordered two to six
times per year depending on demand
What level should the Safety Stock be for Category B stock account? - Answer-Safety
stock should be at a moderate level, 30 to 60 days
What does Category C account for in the ABC plan in a stock account? - Answer-C
Category accounts for only 10% to 15% of the dollar value but makes up the remaining
75% of the items in the stock records.
Items in this category receive the least management attention due to their low impact
When should items in Category C be ordered? - Answer-once or twice a year
What level should the Safety Stock be for Category C stock account? - Answer-Safety
stock maybe large since the dollar investment in inventory is low
When should the ROPs and ROQs for each category in the ABC Selective Stock Plan
be reviewed? - Answer-A - Quarterly
B - Quarterly or semi-annually
C- Updated at least annually
,When should Sample Inventories be conducted on Category A items? - Answer-They
should be done throughout the year with inventory conducted once a week or once a
month
Which items are not included in the ABC plan control? - Answer-Pilferable items such
as film, compact disks, and electronic media.
...... They are kept in a controlled area and inventoried often
What are Insured Items in the stock plan? - Answer-They are those items that are
retained regardless of their lack of demand or their surplus stock position
They may include:
- Items with a high dollar unit cost
- Items with a long lead time
- Items with an unpredictable demand rate
- Items whose lack of would have a significant detrimental impact on mission
performance
To be an effective Property Manager, what is important when administering their portion
of a contract or an agreement? - Answer-They must fully understand the terms of the
contract and contract administration process
Who is responsible for incorporating provisions into the contract covering the control,
use, disposition, etc., of contract-accountable property? - Answer-Contracting Officer
Under what authority are Federal Government contracts awarded? - Answer-under the
authority of Federal Acquisition Regulation (FAR)
Under what authority are local Government o commercial business contracts awarded?
- Answer-under the Uniform Commercial Code (UCC)
What are at the heart of adding value to an organization? - Answer-Understanding how
a contract is formed and knowing where to look for essential information concerning
property management
Contract wise, what is the most important part of the job for a Property Manager? -
Answer-How to interpret the contract for the benefit of the organization
What factors determine what type of agreement to be selected for a given project? -
Answer-- Work to be performed
, - Methods of financing
- Billing
- Payment to be used
- Purpose of the project
What are some of the common types of agreements - Answer-- Contract (most familiar)
- Grants
- Cooperative agreements
- Sub-awards
- Bailment agreements
What are parts of a contract? - Answer-First part - design of the equipment followed by
the phases of development, test, evaluation, and finally production
What must the contract types accommodate? - Answer-They must accommodate the
entire spectrum of possible transactions and their associated risks to each party
involved
What is the main determination when selecting which contract is best? - Answer-Which
contract type will diminish the risk and increase the benefits to both parties involved
Contracts are divided into what two broad families? - Answer-1. Fixed-price
2. Cost reimbursement
Where does the greatest financial risk fall in a Firm-Fixed-Price (FFP) contract? -
Answer-On the vendor
Where does the greatest financial risk fall in a Cost-Plus-Fixed-Fee (CPFF) contract? -
Answer-on the acquiring organization
Between Firm-Fixed-Price (FFP) and Cost-Plus-Fixed-Fee (CPFF) contracts, which one
is the easiest to understand and administer and why? - Answer-- FFP
- Even with subsequent contract modifications, both parties know at the start what the
price will be and precisely what the deliverable will be.
Conversely, when is a CPFF contract used? - Answer-When uncertainty exists as to the
nature of the product to be delivered and the ultimate cost
