CPCM Wk 2 - Management (Practice Exam)

CPCM Wk 2 - Management (Practice Exam) Dispositon -Answer-The act of moving goods out of one's internal organization to another organization due to loss of value. A contracting officer is preparing to award a contract for Advisory & Assistance Services to a small business. The contracting officer wants to make sure the small business is financially capable of performing and managing the contract. The Contracting Officer requests the contractors Balance Sheet from the most recently completed fiscal year. What is an example of another item the CO might consider requesting to make a more informed decision? -Answer- Cash flow statement When a party to a contract fails to enforce a term of the contract, we may have an example of: - Answer-Behavior of the Parties This costing method uses a two-step process; 1-assign the resource costs of each activity, and 2- assign activity costs to the output: -Answer-Activity-Based Costing System. Portfolio analysis diagram -Answer-Risk to Acquire Bottleneck Strategic Low Non critical Leverage High As the first step in the financial management process, this individual is responsible for estimating how much funding the contract will require over time, and for marrying those costs with the schedule to identify when expenses will occur: -Answer-The program manager or contract manager A firm fixed-price contract results in ________ buyer risk and __________seller risk -Answer- Low; high Categorizing suppliers into Transactional Collaborative, and Strategic Alliance categories represents -Answer-Supplier Relationship Model What actions would an operations manager take to improve administrative lead time (also known as procurement lead time)? -Answer-Measure how long it takes to award contracts, and determine whether the requesting department has provided full and accurate information to the acquisition office. When tracking costs following the award of a contract, what is latency? -Answer-The delay between when a cost is incurred and when it appears in the accounting system. The process for creating the Resource-Loaded Schedule begins with: -Answer-extracting a Work Breakdown Structure from the SOW. When suppliers are being certified or pre-qualified they have been: -Answer-Screened Which of the following could mitigate a performance risk? -Answer-Create an effective ethics and compliance internal control system. Best describes project management? -Answer-The planning, organizing, directing and controlling of all aspects of a project. Risk management is: -Answer-The ability to efficiently and cost-effectively mitigate problems. What level of planning is defined as a focus on short-term (e.g., one to two-year) goals that involves evaluating economic and environmental issues such as competition (for sellers), and requirements planning (for buyers)? -Answer-Tactical Planning What level of planning is defined as a focus on very short-term (e.g., a few months) -Answer- Operational Planning What level of planning is defined as "what if" -Answer-Contingency Planning What level of planning is defined as longer than 5 years -Answer-Strategic Planning A PO has the following two step process that sometimes causes accounting data entry delays: - Answer-1-A commitment is made when the order is approved and funds are deducted, similar to an accrued expense. 2-The value of the commitment is reduced as the supplier invoices for goods/services. Portfolio Management is most focused on what? -Answer-Business goal alignment, value alignment and program selection. Asking the question "what can we learn and immediately apply?" is an example of which knowledge management tool applied to risk management? -Answer-Learning During Categorizing purchases according to dollar value is done in this type of analysis? -Answer-Pareto Analysis What could mitigate a process risk? -Answer-Implement an effective earned value management syste