CPPB - INTRO TO PUBLIC
PROCUREMENT EXAM QUESTIONS
AND ANSWERS
Name 4 benefits of centralized procurement. - ANSWER-1. Minimizes the duplication
of effort and disorderly procurement practices.
2. Assures accountability and consistency in regards to procurement policy.
3. Maximizes competition.
4. Provides volume discounts by taking advantage of economies of scale.
5. Consolidates orders resulting in savings.
6. More effective inventory control.
7. It frees departments from doing procurement tasks.
8. Reduces procurement costs through order consolidation.
9. Better management control.
What is economies of scale? - ANSWER-It refers to the volume or quantity of a large
purchase and the cost savings realized by the size of that purchase.
As the quantity of output increases, the cost per unit decreases. However, one must
monitor the average cost because there is a point at which the unit cost reaches a
point of diminishing returns regardless of the quantity purchased. What concept does
this describe? - ANSWER-Economies of Scale
What is procurement decentralization? - ANSWER-It is when certain procurement
authority or activities are delegated to smaller units of management by a central
authority that retains overarching policy direction and responsibility.
Name 4 advantages of decentralized procurement. - ANSWER-1. Easier
coordination within departments.
2. Access to local supply sources.
3. Independence.
4. Expedited procurement process.
5. Sensitivity to the unique priorities of the departments (regions).
6. Clear project management responsibilities.
In the United States, which government branch influences the Federal procurement
system through laws, budget appropriations, and its oversight power?
A. Executive Branch
B. Judicial Branch
C. Legislative Branch - ANSWER-Legislative Branch
Which government branch investigates and examines all legal cases that involve the
Federal procurement practices such as terms and conditions when disputes cannot
be settled through administrative processes? - ANSWER-Judicial Branch
PROCUREMENT EXAM QUESTIONS
AND ANSWERS
Name 4 benefits of centralized procurement. - ANSWER-1. Minimizes the duplication
of effort and disorderly procurement practices.
2. Assures accountability and consistency in regards to procurement policy.
3. Maximizes competition.
4. Provides volume discounts by taking advantage of economies of scale.
5. Consolidates orders resulting in savings.
6. More effective inventory control.
7. It frees departments from doing procurement tasks.
8. Reduces procurement costs through order consolidation.
9. Better management control.
What is economies of scale? - ANSWER-It refers to the volume or quantity of a large
purchase and the cost savings realized by the size of that purchase.
As the quantity of output increases, the cost per unit decreases. However, one must
monitor the average cost because there is a point at which the unit cost reaches a
point of diminishing returns regardless of the quantity purchased. What concept does
this describe? - ANSWER-Economies of Scale
What is procurement decentralization? - ANSWER-It is when certain procurement
authority or activities are delegated to smaller units of management by a central
authority that retains overarching policy direction and responsibility.
Name 4 advantages of decentralized procurement. - ANSWER-1. Easier
coordination within departments.
2. Access to local supply sources.
3. Independence.
4. Expedited procurement process.
5. Sensitivity to the unique priorities of the departments (regions).
6. Clear project management responsibilities.
In the United States, which government branch influences the Federal procurement
system through laws, budget appropriations, and its oversight power?
A. Executive Branch
B. Judicial Branch
C. Legislative Branch - ANSWER-Legislative Branch
Which government branch investigates and examines all legal cases that involve the
Federal procurement practices such as terms and conditions when disputes cannot
be settled through administrative processes? - ANSWER-Judicial Branch
