CPCM LATEST 2026 TEST PAPER QUESTIONS AND
ANSWERS GRADED A+
✔✔Deliverable - ✔✔any measurable, tangible, verifiable outcome, result, or item that
must be produced to complete a project or part of a project disposition * The process by
which commodities move to final customers, including return of goods.
✔✔Earned value - ✔✔A method for measuring project performance that compares the
amount of work that was planned with what was actually accomplished to determine if
cost and schedule performance went as planned
✔✔inventory control - ✔✔The management of inventories, including: decisions about
which items to stock at each location; how much stock to keep on hand at various levels
of operation; when to buy; how much to buy; controlling pilferage and damage; and
managing shortages and back orders.
✔✔Kraljic Matrix - ✔✔A tool for portfolio analysis: a four-box matrix that reflects the
segmentation of spend based on an assessment of the value of the spend relative to
the market risk to acquire.
✔✔Logistics - ✔✔The process of planning, implementing and controlling the efficient,
cost-effective flow and storage of raw materials, in-process inventory, finished goods
and related information from point of origin to point of consumption for the purpose of
conforming to customer requirements
✔✔Manufacturing - ✔✔Planning, managing and performing the processing of materials
into intermediate or final products, usually in large quantities
✔✔Materials management - ✔✔Involves the planning, acquisition, flow and distribution
of production materials from the raw state to the finished product state
✔✔Opportunity - ✔✔The measure of the probability of a positive desired change
occurring and the desired impact of the event
✔✔Opportunity and risk management (ORM) - ✔✔An iterative approach to managing
opportunities and risks that may occur during the course of business that could affect
the success or failure of the project, in which the probability of each event's occurrence
and it's potential effect on the project are analyzed and prioritized or ranked from
highest to lowest; beginning with the highest prioritized events and working down, the
project management team determines what options and strategies are available and
chooses the best strategy to maximize opportunities and reduce or prevent the
identified risks from occurring
✔✔Pareto analysis - ✔✔Analysis (also known as ABC analysis or 80:20 rule) which can
be used to categorize purchases according to dollar value; for example, 20 percent of
,the total number of items bought may account for 80 percent of the total value of the
purchasing
✔✔Portfolio - ✔✔Includes all of the programs and projects in an organization; may be
for the organization as a whole, or for individual lines of business
✔✔Product development - ✔✔A series of integrated processes in new product
development chronicling steps from idea conception to commercialization
✔✔Program - ✔✔A group of projects and sub projects that are interdependent for the
program's success, which happen in parallel, or in different stages, phases, or
sequences
✔✔Project - ✔✔A unique endeavor undertaken to produce a product, service, or an
organizational change; projects are one-time occurrences that have a defined start and
finish point
✔✔Project management - ✔✔The discipline of initiating, planning, executing,
controlling, and closing the work of a team to achieve specific goals and meet specific
success criteria
✔✔Receiving - ✔✔The business function that is responsible for verifying that the goods
received are the goods that the organization ordered; involves inspecting and accepting
incoming shipments
✔✔Risk - ✔✔The measure of the probability of an unwanted change occurring and the
associated effect of that event; consists of three components: a risk event (an unwanted
change), the probability of occurrence (uncertainty), and the significance of the impact
(the amount at stake)
✔✔Scope - ✔✔All the work required to deliver the product or outcome of a project
✔✔Scope creep - ✔✔Continuous or uncontrolled growth in a project's scope, resulting
from changes after the project begins; can occur when the scope of a project is not
properly defined, documented, or controlled
✔✔Spend analysis - ✔✔Analysis of the historical spending patterns in an organization,
usually by commodity or category
✔✔Sponsor - ✔✔The individual or group that provides the financial resources, in cash
or in kind, for the project
✔✔Stakeholder - ✔✔The individuals and organic who are involved in or may be
affected by project activities
, ✔✔Strategic sourcing - ✔✔The selection and management of suppliers with a focus on
achieving the long-term goal of a business
✔✔Supply Chain Operations Reference (SCOR) - ✔✔A model which shows the supply
chain operation as three basic functions: "Source," "Make," and "Deliver," using his
model, these three basic functions of a company's organization are linked to both the
customer's organization and company's suppliers
✔✔Supply management - ✔✔The identification, acquisition, access, positioning and
management of resources and related capabilities the organization needs or potentially
needs in the attainment of its strategic objectives
✔✔Term - ✔✔In terms and conditions, a part of the contract that addresses a specific
subject; in most contracts, terms address payment, delivery, product quality, warranty of
goods or services, termination of the agreement, resolution of disputes, and other
subjects
✔✔Traffic management - ✔✔The management of activities associated with buying and
controlling transportation services for a shipper or consignee or both
✔✔Warehousing - ✔✔The storage and movement of internal materials and finished
products
✔✔Acceptance - ✔✔The act, either verbal or written, that conveys assent to contractual
terms and conditions
✔✔Actual Authority - ✔✔An agent's (see principal-agent relationship) specific authority
that the principal intentionally confers on the agent; confers a power to he agent to
affect legal relations of the principals with third parties.
✔✔Apparent authority - ✔✔The appearance of being a principal's agent (see principal-
agent relationship) with the power to act for the principal; corporations are liable for an
employee's acts and promises to third party of it appears to the third party that the
employee has been granted authority by his or her corporate employer (principal) to do
those acts that bind the corporation
✔✔Appropriation - ✔✔The act of setting aside money for specific federal government
departments, agencies, and programs
✔✔Authorization - ✔✔Establishing or continuing one or more federal agencies or
programs, establishing the terms and conditions under which they operate, authorizing
the enactment of appropriations, and specifying how appropriated funds are to be used
✔✔Boilerplate - ✔✔Printed terms and conditions that are frequently found on the back
of purchase order forms in contracts, usually attached as "general provisions"
ANSWERS GRADED A+
✔✔Deliverable - ✔✔any measurable, tangible, verifiable outcome, result, or item that
must be produced to complete a project or part of a project disposition * The process by
which commodities move to final customers, including return of goods.
✔✔Earned value - ✔✔A method for measuring project performance that compares the
amount of work that was planned with what was actually accomplished to determine if
cost and schedule performance went as planned
✔✔inventory control - ✔✔The management of inventories, including: decisions about
which items to stock at each location; how much stock to keep on hand at various levels
of operation; when to buy; how much to buy; controlling pilferage and damage; and
managing shortages and back orders.
✔✔Kraljic Matrix - ✔✔A tool for portfolio analysis: a four-box matrix that reflects the
segmentation of spend based on an assessment of the value of the spend relative to
the market risk to acquire.
✔✔Logistics - ✔✔The process of planning, implementing and controlling the efficient,
cost-effective flow and storage of raw materials, in-process inventory, finished goods
and related information from point of origin to point of consumption for the purpose of
conforming to customer requirements
✔✔Manufacturing - ✔✔Planning, managing and performing the processing of materials
into intermediate or final products, usually in large quantities
✔✔Materials management - ✔✔Involves the planning, acquisition, flow and distribution
of production materials from the raw state to the finished product state
✔✔Opportunity - ✔✔The measure of the probability of a positive desired change
occurring and the desired impact of the event
✔✔Opportunity and risk management (ORM) - ✔✔An iterative approach to managing
opportunities and risks that may occur during the course of business that could affect
the success or failure of the project, in which the probability of each event's occurrence
and it's potential effect on the project are analyzed and prioritized or ranked from
highest to lowest; beginning with the highest prioritized events and working down, the
project management team determines what options and strategies are available and
chooses the best strategy to maximize opportunities and reduce or prevent the
identified risks from occurring
✔✔Pareto analysis - ✔✔Analysis (also known as ABC analysis or 80:20 rule) which can
be used to categorize purchases according to dollar value; for example, 20 percent of
,the total number of items bought may account for 80 percent of the total value of the
purchasing
✔✔Portfolio - ✔✔Includes all of the programs and projects in an organization; may be
for the organization as a whole, or for individual lines of business
✔✔Product development - ✔✔A series of integrated processes in new product
development chronicling steps from idea conception to commercialization
✔✔Program - ✔✔A group of projects and sub projects that are interdependent for the
program's success, which happen in parallel, or in different stages, phases, or
sequences
✔✔Project - ✔✔A unique endeavor undertaken to produce a product, service, or an
organizational change; projects are one-time occurrences that have a defined start and
finish point
✔✔Project management - ✔✔The discipline of initiating, planning, executing,
controlling, and closing the work of a team to achieve specific goals and meet specific
success criteria
✔✔Receiving - ✔✔The business function that is responsible for verifying that the goods
received are the goods that the organization ordered; involves inspecting and accepting
incoming shipments
✔✔Risk - ✔✔The measure of the probability of an unwanted change occurring and the
associated effect of that event; consists of three components: a risk event (an unwanted
change), the probability of occurrence (uncertainty), and the significance of the impact
(the amount at stake)
✔✔Scope - ✔✔All the work required to deliver the product or outcome of a project
✔✔Scope creep - ✔✔Continuous or uncontrolled growth in a project's scope, resulting
from changes after the project begins; can occur when the scope of a project is not
properly defined, documented, or controlled
✔✔Spend analysis - ✔✔Analysis of the historical spending patterns in an organization,
usually by commodity or category
✔✔Sponsor - ✔✔The individual or group that provides the financial resources, in cash
or in kind, for the project
✔✔Stakeholder - ✔✔The individuals and organic who are involved in or may be
affected by project activities
, ✔✔Strategic sourcing - ✔✔The selection and management of suppliers with a focus on
achieving the long-term goal of a business
✔✔Supply Chain Operations Reference (SCOR) - ✔✔A model which shows the supply
chain operation as three basic functions: "Source," "Make," and "Deliver," using his
model, these three basic functions of a company's organization are linked to both the
customer's organization and company's suppliers
✔✔Supply management - ✔✔The identification, acquisition, access, positioning and
management of resources and related capabilities the organization needs or potentially
needs in the attainment of its strategic objectives
✔✔Term - ✔✔In terms and conditions, a part of the contract that addresses a specific
subject; in most contracts, terms address payment, delivery, product quality, warranty of
goods or services, termination of the agreement, resolution of disputes, and other
subjects
✔✔Traffic management - ✔✔The management of activities associated with buying and
controlling transportation services for a shipper or consignee or both
✔✔Warehousing - ✔✔The storage and movement of internal materials and finished
products
✔✔Acceptance - ✔✔The act, either verbal or written, that conveys assent to contractual
terms and conditions
✔✔Actual Authority - ✔✔An agent's (see principal-agent relationship) specific authority
that the principal intentionally confers on the agent; confers a power to he agent to
affect legal relations of the principals with third parties.
✔✔Apparent authority - ✔✔The appearance of being a principal's agent (see principal-
agent relationship) with the power to act for the principal; corporations are liable for an
employee's acts and promises to third party of it appears to the third party that the
employee has been granted authority by his or her corporate employer (principal) to do
those acts that bind the corporation
✔✔Appropriation - ✔✔The act of setting aside money for specific federal government
departments, agencies, and programs
✔✔Authorization - ✔✔Establishing or continuing one or more federal agencies or
programs, establishing the terms and conditions under which they operate, authorizing
the enactment of appropriations, and specifying how appropriated funds are to be used
✔✔Boilerplate - ✔✔Printed terms and conditions that are frequently found on the back
of purchase order forms in contracts, usually attached as "general provisions"
