CPPO EXAM 4 2026 EXAM PREPARATION
WORKBOOK COMPREHENSIVE QUESTIONS
AND ANSWERS HIGH SCORE A+
◉ 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?
WORKBOOK COMPREHENSIVE QUESTIONS
AND ANSWERS HIGH SCORE A+
◉ 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?
