CPPO Practice Test Questions With Correct Answers

Market - Answer A buyer wants to spot buy propane. Which analysis process should be used to determine when to buy? a. Demand b. Supply c. Performance d. Market Mean Absolute Deviation - Answer Forecasts are never completely accurate. Which calculation demonstrates the degree of accuracy? a. Weighted moving average b. Absolute value of errors c. Mean Absolute Deviation d. Economic Order Quantity Developing alternate procurement operations locations - Answer An entity located on the Gulf of Mexico is developing their continuity of operations plan. Which of the following is most important for the Procurement Services Department to consider? a. Assembly of emergency rations, including potable water, for use in the EOC b. Determining the GPS coordinates for all of the County warehouses c. Developing an emergency purchasing card program d. Developing alternate procurement operations locations Emergency Operations Plan - Answer In order for the entity Procurement Services' Continuity of Operations Plan (COOP) to be effective, it must be in accordance with which of the following? a. The entity Procurement Procedures b. The entity Emergency Support Functional Plan c. The entity Emergency Operations Plan d. The entity Manager's Emergency Directive Draft a mission statement - Answer The strategic planning team has identified its stakeholders and conducted a SWOT analysis. What is its next step in creating a strategic plan? a. Establish performance measures b. Draft a mission statement c. Identify strategies to achieve goals and objectives d. Monitor progress and gather data Supply positioning - Answer An entity is planning to allocate staff based on the time and effort required for its various procurements. Which analysis approach will support this strategy? a. The Pareto principle b. Inventory forecasting c. Projecting expenditures d. Supply positioning Weighted moving average - Answer A school district wants to determine how many reams of printer paper to carry in inventory. Accurate monthly records of paper purchases exist for the past 108 months. Which forecasting method should be used for the school district? a. Fixed period b. Weighted moving average c. Moving average d. Trend estimation Realistic - Answer The plan describes an objective in detail, specifies the outcome, when it should be finished and who is responsible. Which objective attribute is missing? a. Realistic b. Assignable c. Measurable d. Time-related Cost/benefit analysis - Answer The entity is trying to determine whether to use solar generated lighting or go with LED lighting for the outdoor lighting in its new central services building. What tool should be used to advise this decision? a. Cost analysis b. Value analysis c. Spend analysis d. Cost/benefit analysis Economic order quantity - Answer What calculation Is used to determine the most cost effective quantity of an Item to keep In stock? a. Inventory carrying cost b. Economic order quantity c. Acquisition cost per order d. Average inventory value Obsolete - Answer The entity is replacing its computer equipment due to new technology. The equipment to be replaced is four years old. While it still has a useful life, new upgrades to current programs cannot run on the current computers. Which term best describes this equipment? a. Fully depreciated b. Surplus c. Obsolete d. Disposable Expedite - Answer Procurement has received word that the entity needs an item much sooner than thought. The order has already been placed. What action should be taken? a. Expedite b. Follow-up c. Reorder d. Improved routing 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? a. Tell the jurisdiction's Accounting Department to withhold payments to Scrubbies b. Contact the Scrubbies CEO regarding the problem c. Schedule a meeting with the Scrubbies CEO, the Scrubbies on-site crew supervisor and the jurisdiction's Building Manager to discuss the problem d. Pursue termination of the Scrubbies contract Identifying a model compatible with the resources available in the agency to implement it - Answer An entity wants to improve its techniques for evaluating supplier compliance. In the search for a new compliance model which of the following considerations should be given the most importance? a. Identifying a model compatible with the resources available in the agency to implement it b. Identifying the most objective of the potential models c. Identifying a model that combines both qualitative and quantitative factors d. Identifying a model that considers the total cost of doing business with a supplier including non-performance costs The terms of renewal - Answer An entity is soliciting bids for recycling and the resulting contracts will be candidates for renewal. For a successful renewal, what provision must be included in the terms and conditions of the solicitation? a. Required good relations with renewing suppliers b. The need for the contract to be renewed c. The terms of renewal d. The enabling legislation that allows for renewals Develop and follow a detailed transition plan - Answer An entity did not renew its contract with a cleaning service but has awarded the contract to another service provider. What should the contract manager do to ensure a smooth change? a. Facilitate a meeting between the two contractors b. Make sure he collects all the keys and gives them to the new contractor c. Issue a Notice of Substantial Compliance d. Develop and follow a detailed transition plan Begin the process of building documentation of the issues by issuing a Cure Notice - Answer A procurement officer was asked by his entity to terminate a contract in the middle of its 5 year contract term and re-solicit the service. The reasons given were legitimate contract deficiencies, and failure to perform. After review of the contract file, the procurement officer determines that this is the first documented issue with this contractor. When the procurement officer asks about measures taken to remedy the contract performance concerns, the program manager stated that she had several phone calls with the contractor's staff and she has not gotten the results they promised in those phone calls. What should the procurement officer do? a. Terminate the contract for failure to perform and send a letter to the surety of the contract demanding performance bond b. Set a meeting with the contractor to discuss the termination of the contract c. Begin the process of building documentation of the issues by issuing a Cure Notice d. Ask that the program manager set up a mediation date with the contractor Independent technical testing - Answer The entity has a contract with a hazardous material management company to remove asbestos from 83 school buildings. What is the best method for the entity to employ to ensure compliance with the contract specifications? a. Random sampling b. Independent technical testing c. Spot inspection d. 50% inspection by the agency's project Liquidated Damages - Answer In contracts where delinquent performance can result in damage, which provision would be most useful? a. Performance Bond b. Contract Warranties c. Termination for Default d. Liquidated Damages Terminate for Convenience - Answer The entity awarded a contract to complete a four hundred mile repaving project. After an economic downturn, the entity had to use the funds allotted for this project for other purposes. What should the entity do? a. Terminate for Cause b. Terminate for Convenience c. Issue a Cure Notice d. Issue a No-Progress Notice Performance Assessment Plan (PAP) - Answer This element of contract administration describes how evaluators will observe, test, evaluate and document supplier performance. a. Contract Administration Plan (CAP) b. Program Evaluation and Review Technique (PERT) c. Quality Assurance (QA) d. Performance Assessment Plan (PAP) Establish a BATNA - Answer The negotiation team Is concerned that it is entering the negotiation In a relatively weak position. What preparation should It take to mitigate this problem? a. Rehearse the negotiation b. Agree to stonewall the supplier c. Establish a BATNA d. Develop a list of possible concessions