CPPB PREP COURSE – PRACTICE TEST
QUESTIONS AND ANSWERS
FIXED-PRICE WITH ESCALATION/DE-ESCALATION - ANSWER The
governmental agency's buying officer has expressed major concerns about the
number of repetitive requisitions, solicitations, and purchase orders being
handled to purchase gasoline for the organization. Every new order generates a
new requisition, and the prices paid by each department vary depending on
competition and scheduling. The buyer suggests that the solution is to employ
what form of contract?
INSTITUTING A PURCHASING CARD PROGRAM - ANSWER A
government entity with a centralized purchasing department has a $1000
threshold for modest purchases and requires three quotes above that amount.
The quantity of requisitions has steadily increased, and internal consumers have
recently complained that it is taking too long to purchase what they require.
Which of the following actions is most likely to have a long-term impact on cost
reduction and time savings?
ADDRESS W/ON-SITE SUPVSR/CONTRACTOR - ANSWER A government
agency has been dissatisfied with a supplier's performance and may terminate
their contract with the supplier. Which of the following is the best initial step
toward resolving the issue with the supplier?
LINE ITEM BUDGET - ANSWER An agency has a budget in which
allocations are approved for various types of spending. Each class is subdivided
into subclasses against which financing for services and commodities can be
allocated. This budget strategy maximizes management while ensuring financial
accountability. What kind of budget is this?
B) $268,000 - ANSWER: The procurement department is considering
purchasing ten high-volume multi-function printers for $20,000. The printers
have an anticipated useful life of 8 years and require the following annual costs:
, $350 for consumable supplies, $150 for electricity, and $350 for maintenance.
What is the total cost of ownership for the printers? A) $264,000, B) $268,000,
C) $256,000, D) $260,000
USE THE "CURE NOTICE" PROCEDURES TO NOTIFY THE SUPPLIER
OF THE FAILURES - ANSWER The supplier of a performance-based contract
with an initial three-year term and two one-year extensions upon good
performance has failed to perform by the stated delivery schedules. They also
do not address quality complaints promptly. The supplier has not received
formal notice of the problems. The internal user does not want the contract
extended for the two remaining one-year periods and wishes to terminate it
immediately for cause. What should the contract administrator do?
D) FORMING - ANSWER The team members are getting to know one another
and discovering the information and abilities that each brings to the group. At
what stage of development is this team? A) performing, B) norming, C)
storming, and D) forming.
B) ISSUE A CHANGE ORDER UNDER THE EXISTING CONTRACT -
ANSWER: A supplier has done the work specified in the specifications, but the
government agency has determined that further work is required to finish the
project. What should the customer do to complete this work? A) Inspect and
reject the work. B) Issue a modification order under the existing contract. C)
Allow the contractor to conduct the additional work and then decide a fair and
reasonable price for that work. D) Withhold final acceptance of the project until
the supplier completes the additional work.
D) COST AVOIDANCE - ANSWER A procurement department works hard to
ensure that a solicitation is not cancelled and resubmitted. What organizational
purpose does this activity achieve? A) Value analysis, B) cost reduction, C)
efficiency, and D) cost avoidance.
C) PROVIDES A COMMON DATA REPOSITORY - ANSWER Which of the
following is a benefit of using an automated procurement system? A) Reduces
QUESTIONS AND ANSWERS
FIXED-PRICE WITH ESCALATION/DE-ESCALATION - ANSWER The
governmental agency's buying officer has expressed major concerns about the
number of repetitive requisitions, solicitations, and purchase orders being
handled to purchase gasoline for the organization. Every new order generates a
new requisition, and the prices paid by each department vary depending on
competition and scheduling. The buyer suggests that the solution is to employ
what form of contract?
INSTITUTING A PURCHASING CARD PROGRAM - ANSWER A
government entity with a centralized purchasing department has a $1000
threshold for modest purchases and requires three quotes above that amount.
The quantity of requisitions has steadily increased, and internal consumers have
recently complained that it is taking too long to purchase what they require.
Which of the following actions is most likely to have a long-term impact on cost
reduction and time savings?
ADDRESS W/ON-SITE SUPVSR/CONTRACTOR - ANSWER A government
agency has been dissatisfied with a supplier's performance and may terminate
their contract with the supplier. Which of the following is the best initial step
toward resolving the issue with the supplier?
LINE ITEM BUDGET - ANSWER An agency has a budget in which
allocations are approved for various types of spending. Each class is subdivided
into subclasses against which financing for services and commodities can be
allocated. This budget strategy maximizes management while ensuring financial
accountability. What kind of budget is this?
B) $268,000 - ANSWER: The procurement department is considering
purchasing ten high-volume multi-function printers for $20,000. The printers
have an anticipated useful life of 8 years and require the following annual costs:
, $350 for consumable supplies, $150 for electricity, and $350 for maintenance.
What is the total cost of ownership for the printers? A) $264,000, B) $268,000,
C) $256,000, D) $260,000
USE THE "CURE NOTICE" PROCEDURES TO NOTIFY THE SUPPLIER
OF THE FAILURES - ANSWER The supplier of a performance-based contract
with an initial three-year term and two one-year extensions upon good
performance has failed to perform by the stated delivery schedules. They also
do not address quality complaints promptly. The supplier has not received
formal notice of the problems. The internal user does not want the contract
extended for the two remaining one-year periods and wishes to terminate it
immediately for cause. What should the contract administrator do?
D) FORMING - ANSWER The team members are getting to know one another
and discovering the information and abilities that each brings to the group. At
what stage of development is this team? A) performing, B) norming, C)
storming, and D) forming.
B) ISSUE A CHANGE ORDER UNDER THE EXISTING CONTRACT -
ANSWER: A supplier has done the work specified in the specifications, but the
government agency has determined that further work is required to finish the
project. What should the customer do to complete this work? A) Inspect and
reject the work. B) Issue a modification order under the existing contract. C)
Allow the contractor to conduct the additional work and then decide a fair and
reasonable price for that work. D) Withhold final acceptance of the project until
the supplier completes the additional work.
D) COST AVOIDANCE - ANSWER A procurement department works hard to
ensure that a solicitation is not cancelled and resubmitted. What organizational
purpose does this activity achieve? A) Value analysis, B) cost reduction, C)
efficiency, and D) cost avoidance.
C) PROVIDES A COMMON DATA REPOSITORY - ANSWER Which of the
following is a benefit of using an automated procurement system? A) Reduces
