CPCM EXAM QUESTIONS & VERIFIED
CORRECT ANSWERS PASSED
Accountability - Correct Answer ✔✔ An obligation or willingness to accept responsibility
for one's actions
Character - Correct 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 - Correct Answer ✔✔ Working jointly with others or together, especially in
an intellectual endeavor
Competence - Correct 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 - Correct Answer ✔✔ General agreement; group solidarity in sentiment and
belief
Decisiveness - Correct Answer ✔✔ The capacity to make decisions even when the
decision may not be popular or may pose risk
Ethics - Correct Answer ✔✔ The principles of conduct governing n individual or a group
Feedback - Correct Answer ✔✔ Information about reactions to a person's performance
of a task, used as a basis for
Improvement
Integrative thinking - Correct 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 - Correct Answer ✔✔ Having the courage to do what you say you will do;
following through on promises in a manner that promotes trustworthiness
Intuition - Correct 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 - Correct Answer ✔✔ The literal interpretation of a rule or standard,
but not necessarily the intent of those who wrote it
,Mentoring - Correct Answer ✔✔ The development by leaders of other leaders
Optimism - Correct Answer ✔✔ The ability to give hope and instill confidence in others;
giving followers something to look forward to and helping them see the way through
chaos and complexity
Spirit of the Law - Correct Answer ✔✔ The intended interpretation of a rule or standard,
but. Or necessarily what is conveyed in the literal wording
Succession planning - Correct Answer ✔✔ Empowering others and helping them
develop, so they become capable of taking over the leader's job
Values - Correct Answer ✔✔ Individual or personal standards of what is valuable or
important
Vision - Correct Answer ✔✔ Being able to see the possibilities for a better future and
guiding others on getting there
Accounting - Correct 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 - Correct Answer ✔✔ A formal communications network that
supplies relevant information for planning, control, decision-making, and evaluation.
Acid test ratio - Correct Answer ✔✔ The ratio determining how well the company's
current liabilities can be satisfied by its current assets less inventory.
Activity-based costing system - Correct 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 - Correct 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 - Correct 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 - Correct Answer ✔✔ Provides detailed information about a company's
assets, liabilities, and shareholder equity
Bottom line - Correct 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 - Correct Answer ✔✔ An average of the estimated costs per month, often
based on staffing estimates, used for estimating funding requirements.
Cash flow statement - Correct Answer ✔✔ A statement reporting a company's inflow
and outflow of cash; generally includes operating activities, investing activities, and
financing activities.
Competition - Correct Answer ✔✔ The effort or action of two or more commercial
companies to obtain the same business from a third party
Contingency planning - Correct Answer ✔✔ Involves "what if?" Analysis to look at
various situations if certain environmental or economic conditions change
Current - Correct 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 - Correct Answer ✔✔ The ratio of current assets to current liabilities
Debt-to-Equity Ratio - Correct Answer ✔✔ The ratio measuring the relationship of debt
and shareholder equity used to finance the company's operations
Demand - Correct 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 - Correct Answer ✔✔ The management of people and processes to
accomplish objectives
Economics - Correct Answer ✔✔ The science concerned with making decisions with
scarce resources such as labor, capital goods, and natural resources
Electronic government (e-government) - Correct 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 - Correct 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 - Correct 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 - Correct Answer ✔✔ An assessment of the viability, stability, and
profitability of a business
Generally Accepted Accounting Principles (GAAP) - Correct 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
Gross Profit - Correct Answer ✔✔ The subtotal of total revenue made during an
accounting period, minus any returns or discounts and the costs of goods sold, before
deducting operating expenses
Income statement - Correct Answer ✔✔ A report that shows how much revenue a
company earned over a specific time period, and the costs and expenses associated
with earning that revenue
Information science - Correct Answer ✔✔ The field concerned with collecting,
organizing, storing, retrieving, and protecting recorded data
Intangible assets - Correct Answer ✔✔ Assets whose value comes from a legal claim or
additional earning power from a business transaction, such as goodwill, patents, or
trademarks
Job-order cost system - Correct Answer ✔✔ An accounting system under which the
company accounts for output by identifying specific physical units; the costs for each job
or contract are accumulated under separate job orders
Latency - Correct Answer ✔✔ The delay between when a cost is incurred and when
that cost appears in the accounting system
Liability - Correct Answer ✔✔ An amount of money owed by a company to another; may
require a specific sum of money paid to a particular party at a specified time, or may be
indefinite
Long-term - Correct Answer ✔✔ Long-term assets are assets that a business cannot
easily turn into cash and that are not used within one year; long-term liabilities are
liabilities that will mature over one year from the balance sheet date
Monopoly - Correct Answer ✔✔ A type of competition that exists when there is only one
company in the marketplace and it has no competitors
Monopsony - Correct Answer ✔✔ A type of competition that exists when there is only
one buyer, such as when certain supplies or services can only be bought by a single
entity
CORRECT ANSWERS PASSED
Accountability - Correct Answer ✔✔ An obligation or willingness to accept responsibility
for one's actions
Character - Correct 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 - Correct Answer ✔✔ Working jointly with others or together, especially in
an intellectual endeavor
Competence - Correct 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 - Correct Answer ✔✔ General agreement; group solidarity in sentiment and
belief
Decisiveness - Correct Answer ✔✔ The capacity to make decisions even when the
decision may not be popular or may pose risk
Ethics - Correct Answer ✔✔ The principles of conduct governing n individual or a group
Feedback - Correct Answer ✔✔ Information about reactions to a person's performance
of a task, used as a basis for
Improvement
Integrative thinking - Correct 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 - Correct Answer ✔✔ Having the courage to do what you say you will do;
following through on promises in a manner that promotes trustworthiness
Intuition - Correct 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 - Correct Answer ✔✔ The literal interpretation of a rule or standard,
but not necessarily the intent of those who wrote it
,Mentoring - Correct Answer ✔✔ The development by leaders of other leaders
Optimism - Correct Answer ✔✔ The ability to give hope and instill confidence in others;
giving followers something to look forward to and helping them see the way through
chaos and complexity
Spirit of the Law - Correct Answer ✔✔ The intended interpretation of a rule or standard,
but. Or necessarily what is conveyed in the literal wording
Succession planning - Correct Answer ✔✔ Empowering others and helping them
develop, so they become capable of taking over the leader's job
Values - Correct Answer ✔✔ Individual or personal standards of what is valuable or
important
Vision - Correct Answer ✔✔ Being able to see the possibilities for a better future and
guiding others on getting there
Accounting - Correct 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 - Correct Answer ✔✔ A formal communications network that
supplies relevant information for planning, control, decision-making, and evaluation.
Acid test ratio - Correct Answer ✔✔ The ratio determining how well the company's
current liabilities can be satisfied by its current assets less inventory.
Activity-based costing system - Correct 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 - Correct 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 - Correct 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 - Correct Answer ✔✔ Provides detailed information about a company's
assets, liabilities, and shareholder equity
Bottom line - Correct 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 - Correct Answer ✔✔ An average of the estimated costs per month, often
based on staffing estimates, used for estimating funding requirements.
Cash flow statement - Correct Answer ✔✔ A statement reporting a company's inflow
and outflow of cash; generally includes operating activities, investing activities, and
financing activities.
Competition - Correct Answer ✔✔ The effort or action of two or more commercial
companies to obtain the same business from a third party
Contingency planning - Correct Answer ✔✔ Involves "what if?" Analysis to look at
various situations if certain environmental or economic conditions change
Current - Correct 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 - Correct Answer ✔✔ The ratio of current assets to current liabilities
Debt-to-Equity Ratio - Correct Answer ✔✔ The ratio measuring the relationship of debt
and shareholder equity used to finance the company's operations
Demand - Correct 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 - Correct Answer ✔✔ The management of people and processes to
accomplish objectives
Economics - Correct Answer ✔✔ The science concerned with making decisions with
scarce resources such as labor, capital goods, and natural resources
Electronic government (e-government) - Correct 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 - Correct 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 - Correct 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 - Correct Answer ✔✔ An assessment of the viability, stability, and
profitability of a business
Generally Accepted Accounting Principles (GAAP) - Correct 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
Gross Profit - Correct Answer ✔✔ The subtotal of total revenue made during an
accounting period, minus any returns or discounts and the costs of goods sold, before
deducting operating expenses
Income statement - Correct Answer ✔✔ A report that shows how much revenue a
company earned over a specific time period, and the costs and expenses associated
with earning that revenue
Information science - Correct Answer ✔✔ The field concerned with collecting,
organizing, storing, retrieving, and protecting recorded data
Intangible assets - Correct Answer ✔✔ Assets whose value comes from a legal claim or
additional earning power from a business transaction, such as goodwill, patents, or
trademarks
Job-order cost system - Correct Answer ✔✔ An accounting system under which the
company accounts for output by identifying specific physical units; the costs for each job
or contract are accumulated under separate job orders
Latency - Correct Answer ✔✔ The delay between when a cost is incurred and when
that cost appears in the accounting system
Liability - Correct Answer ✔✔ An amount of money owed by a company to another; may
require a specific sum of money paid to a particular party at a specified time, or may be
indefinite
Long-term - Correct Answer ✔✔ Long-term assets are assets that a business cannot
easily turn into cash and that are not used within one year; long-term liabilities are
liabilities that will mature over one year from the balance sheet date
Monopoly - Correct Answer ✔✔ A type of competition that exists when there is only one
company in the marketplace and it has no competitors
Monopsony - Correct Answer ✔✔ A type of competition that exists when there is only
one buyer, such as when certain supplies or services can only be bought by a single
entity
