CPPO EXAM SET QUESTIONS AND
ANSWERS
Economic order quantity - ANSWER-What calculation Is used to determine the most
cost effective quantity of an Item to keep In stock?
a. Inventory carrying cost
b. Economic order quantity
c. Acquisition cost per order
d. Average inventory value
Obsolete - ANSWER-The entity is replacing its computer equipment due to new
technology. The equipment to be replaced is four years old. While it still has a useful
life, new upgrades to current programs cannot run on the current computers. Which
term best describes this equipment?
a. Fully depreciated
b. Surplus
c. Obsolete
d. Disposable
Expedite - ANSWER-Procurement has received word that the entity needs an item
much sooner than thought. The order has already been placed. What action should be
taken?
a. Expedite
b. Follow-up
c. Reorder
d. Improved routing
Contracting for just-in-time delivery - ANSWER-If the procurement department wanted
to reduce inventory costs, it would be best for them to consider which of the following
options?
a. Reducing inventory and giving less service/support to the end user
b. Having the end user procure the goods
c. Waiting until the need arises, order the goods and wait until they arrive
d. Contracting for just-in-time delivery
High usage low value items - ANSWER-Which of the following best describes the "C"
classification of ABC valued inventory items?
a. Capital equipment
b. Important items for organization operation
c. High usage low value items
d. Inventory items with a dated shelf life
Sell it to employees - ANSWER-Which of the following is the LEAST desirable method
to dispose of surplus property?
,a. Public auction
b. Sealed bid
c. Sell it to employees
d. Donate it through inter-governmental programs
Following up - ANSWER-When procurement personnel are regularly communicating
with the supplier to review the status of a transaction, what are they doing?
a. Managing assets
b. Routing
c. Inspecting
d. Following up
Trade it in - ANSWER-The entity is replacing its computer equipment due to new
technology. The equipment that is being replaced is approximately two years old, still
has a useful life and is not damaged. The new computers will be purchased from the
same supplier. What is the best method to dispose of this equipment?
a. Trade it in
b. Donate it through inter-governmental programs
c. Sell it at a public auction
d. Dispose of it as scrap
Class A - ANSWER-The wastewater treatment facility requires six specialized chlorine
valves that can withstand very caustic and dangerous chemicals. The facility maintains
a couple of these in stock. How would this item most likely be classified?
a. Class A
b. Class B
c. Class B
d. Unclassified
FIFO - ANSWER-The bunao-rings in the inventoried safety valves have a shelf life of 2
years, and the entity uses 3 or 4 of these valves a year. What methodology should be
used to issue these rings?
a. LIFO
b. FIFO
c. JIT
d. Purchase cards
Supply chain management - ANSWER-The identification, acquisition, access,
positioning and management of resources the organizations needs can best be
described as what?
a. Economic Order Quantity
b. Asset management
c. Supply chain management
d. Forecasting
, Calculate costs reasonably incurred by the contractor plus a reasonable profit -
ANSWER-The Purchasing Department awarded a contract for the construction of three
52-floor office buildings. Construction was delayed one year for excusable political
reasons. The contracting officer approved a change order to add one floor to each
building to house a cafeteria, a health center, and a gymnasium for the wellness
program. Which of the following is most appropriate for determining an equitable
adjustment?
a. Calculate costs incurred by other contractors in similar circumstances plus a
reasonable profit
b. Calculate costs equal to the market value of the additional floor
c. Calculate costs reasonably incurred by the contractor plus a reasonable profit
d. Calculate actual cost of the additional floor plus a reasonable profit
Contact the Scrubbies CEO regarding the problem - ANSWER-An entity contracted with
the Scrubbies cleaning company to provide cleaning services in an entity office building.
Over the past two months, the purchasing agent has received multiple reports from the
Building Manager that the office building hasn't been cleaned according to the contract
requirements. Upon receipt of the first such report, the purchasing agent contacted the
Scrubbies on-site crew supervisor to express concern, but the problem has continued.
What should the purchasing officer do next?
a. Tell the jurisdiction's Accounting Department to withhold payments to Scrubbies
b. Contact the Scrubbies CEO regarding the problem
c. Schedule a meeting with the Scrubbies CEO, the Scrubbies on-site crew supervisor
and the jurisdiction's Building Manager to discuss the problem
d. Pursue termination of the Scrubbies contract
Identifying a model compatible with the resources available in the agency to implement
it - ANSWER-An entity wants to improve its techniques for evaluating supplier
compliance. In the search for a new compliance model which of the following
considerations should be given the most importance?
a. Identifying a model compatible with the resources available in the agency to
implement it
b. Identifying the most objective of the potential models
c. Identifying a model that combines both qualitative and quantitative factors
d. Identifying a model that considers the total cost of doing business with a supplier
including non-performance costs
The terms of renewal - ANSWER-An entity is soliciting bids for recycling and the
resulting contracts will be candidates for renewal. For a successful renewal, what
provision must be included in the terms and conditions of the solicitation?
a. Required good relations with renewing suppliers
b. The need for the contract to be renewed
c. The terms of renewal
d. The enabling legislation that allows for renewals
ANSWERS
Economic order quantity - ANSWER-What calculation Is used to determine the most
cost effective quantity of an Item to keep In stock?
a. Inventory carrying cost
b. Economic order quantity
c. Acquisition cost per order
d. Average inventory value
Obsolete - ANSWER-The entity is replacing its computer equipment due to new
technology. The equipment to be replaced is four years old. While it still has a useful
life, new upgrades to current programs cannot run on the current computers. Which
term best describes this equipment?
a. Fully depreciated
b. Surplus
c. Obsolete
d. Disposable
Expedite - ANSWER-Procurement has received word that the entity needs an item
much sooner than thought. The order has already been placed. What action should be
taken?
a. Expedite
b. Follow-up
c. Reorder
d. Improved routing
Contracting for just-in-time delivery - ANSWER-If the procurement department wanted
to reduce inventory costs, it would be best for them to consider which of the following
options?
a. Reducing inventory and giving less service/support to the end user
b. Having the end user procure the goods
c. Waiting until the need arises, order the goods and wait until they arrive
d. Contracting for just-in-time delivery
High usage low value items - ANSWER-Which of the following best describes the "C"
classification of ABC valued inventory items?
a. Capital equipment
b. Important items for organization operation
c. High usage low value items
d. Inventory items with a dated shelf life
Sell it to employees - ANSWER-Which of the following is the LEAST desirable method
to dispose of surplus property?
,a. Public auction
b. Sealed bid
c. Sell it to employees
d. Donate it through inter-governmental programs
Following up - ANSWER-When procurement personnel are regularly communicating
with the supplier to review the status of a transaction, what are they doing?
a. Managing assets
b. Routing
c. Inspecting
d. Following up
Trade it in - ANSWER-The entity is replacing its computer equipment due to new
technology. The equipment that is being replaced is approximately two years old, still
has a useful life and is not damaged. The new computers will be purchased from the
same supplier. What is the best method to dispose of this equipment?
a. Trade it in
b. Donate it through inter-governmental programs
c. Sell it at a public auction
d. Dispose of it as scrap
Class A - ANSWER-The wastewater treatment facility requires six specialized chlorine
valves that can withstand very caustic and dangerous chemicals. The facility maintains
a couple of these in stock. How would this item most likely be classified?
a. Class A
b. Class B
c. Class B
d. Unclassified
FIFO - ANSWER-The bunao-rings in the inventoried safety valves have a shelf life of 2
years, and the entity uses 3 or 4 of these valves a year. What methodology should be
used to issue these rings?
a. LIFO
b. FIFO
c. JIT
d. Purchase cards
Supply chain management - ANSWER-The identification, acquisition, access,
positioning and management of resources the organizations needs can best be
described as what?
a. Economic Order Quantity
b. Asset management
c. Supply chain management
d. Forecasting
, Calculate costs reasonably incurred by the contractor plus a reasonable profit -
ANSWER-The Purchasing Department awarded a contract for the construction of three
52-floor office buildings. Construction was delayed one year for excusable political
reasons. The contracting officer approved a change order to add one floor to each
building to house a cafeteria, a health center, and a gymnasium for the wellness
program. Which of the following is most appropriate for determining an equitable
adjustment?
a. Calculate costs incurred by other contractors in similar circumstances plus a
reasonable profit
b. Calculate costs equal to the market value of the additional floor
c. Calculate costs reasonably incurred by the contractor plus a reasonable profit
d. Calculate actual cost of the additional floor plus a reasonable profit
Contact the Scrubbies CEO regarding the problem - ANSWER-An entity contracted with
the Scrubbies cleaning company to provide cleaning services in an entity office building.
Over the past two months, the purchasing agent has received multiple reports from the
Building Manager that the office building hasn't been cleaned according to the contract
requirements. Upon receipt of the first such report, the purchasing agent contacted the
Scrubbies on-site crew supervisor to express concern, but the problem has continued.
What should the purchasing officer do next?
a. Tell the jurisdiction's Accounting Department to withhold payments to Scrubbies
b. Contact the Scrubbies CEO regarding the problem
c. Schedule a meeting with the Scrubbies CEO, the Scrubbies on-site crew supervisor
and the jurisdiction's Building Manager to discuss the problem
d. Pursue termination of the Scrubbies contract
Identifying a model compatible with the resources available in the agency to implement
it - ANSWER-An entity wants to improve its techniques for evaluating supplier
compliance. In the search for a new compliance model which of the following
considerations should be given the most importance?
a. Identifying a model compatible with the resources available in the agency to
implement it
b. Identifying the most objective of the potential models
c. Identifying a model that combines both qualitative and quantitative factors
d. Identifying a model that considers the total cost of doing business with a supplier
including non-performance costs
The terms of renewal - ANSWER-An entity is soliciting bids for recycling and the
resulting contracts will be candidates for renewal. For a successful renewal, what
provision must be included in the terms and conditions of the solicitation?
a. Required good relations with renewing suppliers
b. The need for the contract to be renewed
c. The terms of renewal
d. The enabling legislation that allows for renewals
