CPCM EXAM QUESTIONS AND ANSWERS
100% ACCURATE!!
,Accountability - ANSWER An obligation or willingness to accept responsibility for one's
actions
Character - ANSWER A leadership competency that says that contract leaders must be
able to perform contract management with the highest standards of ethical behavior and
with integrity, decisiveness and optimism
Collaboration - ANSWER Working jointly with others or together, especially in an
intellectual endeavor
Competence - ANSWER A leadership competency that says that a contract leader must
be technically proficient in contract management with a broad understanding of the
practices, policies, and procedures inherent to contract management
Consensus - ANSWER General agreement; group solidarity in sentiment and belief
Decisiveness - ANSWER The capacity to make decisions even when the decision may
not be popular or may pose risk
Ethics - ANSWER The principles of conduct governing n individual or a group
Feedback - ANSWER Information about reactions to a person's performance of a task,
used as a basis for
Improvement
Integrative thinking - ANSWER The ability to face constructively the tension of opposing
ideas and, instead of choosing one at the expense of the other, to create a resolution in
the form of a new, superior idea that contains elements of each of the ideas
Integrity - ANSWER Having the courage to do what you say you will do; following
through on promises in a manner that promotes trustworthiness
Intuition - ANSWER The ability to assess a situation and know instinctively what to do,
by blending fact with instinct and other intangible factors
Letter of the Law - ANSWER The literal interpretation of a rule or standard, but not
necessarily the intent of those who wrote it
,Mentoring - ANSWER The development by leaders of other leaders
Accounting - ANSWER The way an organization collects, organizes, and records
financial information for making management decisions; the way to report a company's
transactions and to maintain accountability for its assets and liabilities.
Accounting System - ANSWER A formal communications network that supplies relevant
information for planning, control, decision-making, and evaluation.
Acid test ratio - ANSWER The ratio determining how well the company's current
liabilities can be satisfied by its current assets less inventory.
Activity-based costing system - ANSWER An accounting system focused on production
cycle and based on the principles that an output needs activities to produce it and that
those activities use certain resources; assigns costs through cost drivers that the
activities use to create the outputs.
Administrative lead time - ANSWER A measurement used by some organizations of
howling it takes to award a contract,starting when a procurement request is received
and ending when the contract is awarded.
Asset - ANSWER Something a company owns that has value and that can be sold or
used by the company to make products or provide services that can be sold
Balance sheet - ANSWER Provides detailed information about a company's assets,
liabilities, and shareholder equity
Bottom line - ANSWER A company's total earnings or losses over a specific time period,
after accounting for costs and expenses; also called net income.
Burn rate - ANSWER An average of the estimated costs per month, often based on
staffing estimates, used for estimating funding requirements.
Cash flow statement - ANSWER A statement reporting a company's inflow and outflow
of cash; generally includes operating activities, investing activities, and financing
activities.
Competition - ANSWER The effort or action of two or more commercial companies to
obtain the same business from a third party
, Contingency planning - ANSWER Involves "what if?" Analysis to look at various
situations if certain environmental or economic conditions change
Current - ANSWER Current assets are assets which can be converted into cash within
one year; current liabilities are obligations that a business must pay within one year.
Current ratio - ANSWER The ratio of current assets to current liabilities
Debt-to-Equity Ratio - ANSWER The ratio measuring the relationship of debt and
shareholder equity used to finance the company's operations
Demand - ANSWER Describes how buyers shave in the marketplace; the quantity a
buyer demands is what a buyer is willing to buy at a particular price
Directing - ANSWER The management of people and processes to accomplish
objectives
Economics - ANSWER The science concerned with making decisions with scarce
resources such as labor, capital goods, and natural resources
Electronic government (e-government) - ANSWER The use by the government.m of the
Internet and other information technologies, together with the processes and people
needed to implement them, to enhance the delivery of information and services to the
public and others to make improvements in government operations
Equity - ANSWER The amount of money that would be left if a company sold all of its
assets and paid off all of its liabilities; this amount, also called capital or net worth,
belongs to the owner(s) of the company
FedBizOpps - ANSWER A we -based portal (www.fbo.gov) that allows vendors to
review federal business opportunities, and buyers to create opportunity notices and
awards, using secured accounts.
Financial analysis - ANSWER An assessment of the viability, stability, and profitability of
a business
Generally Accepted Accounting Principles (GAAP) - ANSWER A set of uniform
accounting rules for assigning and measuring contract data to accurately represent an
organization's financial condition; no regulatory guidance developed and used by
certified public accountants
100% ACCURATE!!
,Accountability - ANSWER An obligation or willingness to accept responsibility for one's
actions
Character - ANSWER A leadership competency that says that contract leaders must be
able to perform contract management with the highest standards of ethical behavior and
with integrity, decisiveness and optimism
Collaboration - ANSWER Working jointly with others or together, especially in an
intellectual endeavor
Competence - ANSWER A leadership competency that says that a contract leader must
be technically proficient in contract management with a broad understanding of the
practices, policies, and procedures inherent to contract management
Consensus - ANSWER General agreement; group solidarity in sentiment and belief
Decisiveness - ANSWER The capacity to make decisions even when the decision may
not be popular or may pose risk
Ethics - ANSWER The principles of conduct governing n individual or a group
Feedback - ANSWER Information about reactions to a person's performance of a task,
used as a basis for
Improvement
Integrative thinking - ANSWER The ability to face constructively the tension of opposing
ideas and, instead of choosing one at the expense of the other, to create a resolution in
the form of a new, superior idea that contains elements of each of the ideas
Integrity - ANSWER Having the courage to do what you say you will do; following
through on promises in a manner that promotes trustworthiness
Intuition - ANSWER The ability to assess a situation and know instinctively what to do,
by blending fact with instinct and other intangible factors
Letter of the Law - ANSWER The literal interpretation of a rule or standard, but not
necessarily the intent of those who wrote it
,Mentoring - ANSWER The development by leaders of other leaders
Accounting - ANSWER The way an organization collects, organizes, and records
financial information for making management decisions; the way to report a company's
transactions and to maintain accountability for its assets and liabilities.
Accounting System - ANSWER A formal communications network that supplies relevant
information for planning, control, decision-making, and evaluation.
Acid test ratio - ANSWER The ratio determining how well the company's current
liabilities can be satisfied by its current assets less inventory.
Activity-based costing system - ANSWER An accounting system focused on production
cycle and based on the principles that an output needs activities to produce it and that
those activities use certain resources; assigns costs through cost drivers that the
activities use to create the outputs.
Administrative lead time - ANSWER A measurement used by some organizations of
howling it takes to award a contract,starting when a procurement request is received
and ending when the contract is awarded.
Asset - ANSWER Something a company owns that has value and that can be sold or
used by the company to make products or provide services that can be sold
Balance sheet - ANSWER Provides detailed information about a company's assets,
liabilities, and shareholder equity
Bottom line - ANSWER A company's total earnings or losses over a specific time period,
after accounting for costs and expenses; also called net income.
Burn rate - ANSWER An average of the estimated costs per month, often based on
staffing estimates, used for estimating funding requirements.
Cash flow statement - ANSWER A statement reporting a company's inflow and outflow
of cash; generally includes operating activities, investing activities, and financing
activities.
Competition - ANSWER The effort or action of two or more commercial companies to
obtain the same business from a third party
, Contingency planning - ANSWER Involves "what if?" Analysis to look at various
situations if certain environmental or economic conditions change
Current - ANSWER Current assets are assets which can be converted into cash within
one year; current liabilities are obligations that a business must pay within one year.
Current ratio - ANSWER The ratio of current assets to current liabilities
Debt-to-Equity Ratio - ANSWER The ratio measuring the relationship of debt and
shareholder equity used to finance the company's operations
Demand - ANSWER Describes how buyers shave in the marketplace; the quantity a
buyer demands is what a buyer is willing to buy at a particular price
Directing - ANSWER The management of people and processes to accomplish
objectives
Economics - ANSWER The science concerned with making decisions with scarce
resources such as labor, capital goods, and natural resources
Electronic government (e-government) - ANSWER The use by the government.m of the
Internet and other information technologies, together with the processes and people
needed to implement them, to enhance the delivery of information and services to the
public and others to make improvements in government operations
Equity - ANSWER The amount of money that would be left if a company sold all of its
assets and paid off all of its liabilities; this amount, also called capital or net worth,
belongs to the owner(s) of the company
FedBizOpps - ANSWER A we -based portal (www.fbo.gov) that allows vendors to
review federal business opportunities, and buyers to create opportunity notices and
awards, using secured accounts.
Financial analysis - ANSWER An assessment of the viability, stability, and profitability of
a business
Generally Accepted Accounting Principles (GAAP) - ANSWER A set of uniform
accounting rules for assigning and measuring contract data to accurately represent an
organization's financial condition; no regulatory guidance developed and used by
certified public accountants
