CPPB Prep Course Practice Test with
Correct Answers.
The purchasing officer of the governmental agency has expressed serious
concerns about the number of repetitive requisitions, solicitations and POs
that are being processed to purchase gasoline for the organization. Every
time a new order is placed, another requisition is created and the prices
paid by each dept. are not consistent; sometimes more and sometimes less
depending on competition and timing. The buyer advises that the solution
would be to use what type of contract? - Verified Answer FIXED-PRICE
WITH ESCALATION/DE-ESCALATION
A Govt agency with a centralized purchasing dept. has a threshold for small
purchases of $1000 and three quotes are required above that figure. There
has been a steady increase in the number of requisitions along with recent
complaints from internal customers about it taking too long to buy what they
need. Which of the following action is most likely to have the biggest impact
on reducing costs and saving time in the long run? - Verified Answer
INSTITUTING A PURCHASING CARD PROGRAM
A Govt agency has been having problems with a supplier's performance
and may terminate their contract with the supplier. Which of the following
would be the best first step in addressing the issue with the supplier? -
Verified Answer ADDRESS W/ ON-SITE SUPVSR/CONTRACTOR
An agency uses a budget in which appropriations are approved for different
classes of expenditures. Each class is broken into subclasses against
which funding for svcs and commodities can be applied. This budget
approach maximizes control & ensures financial accountability. What type
of budget is this? - Verified Answer LINE ITEM BUDGET
The procurement dept. is considering the acquisition of 10 high volume
multi-function printers at a unit cost of $20,000. The printers have an
estimated useful life of 8 yrs and require the following annual costs per
printer: Consumable Supplies $350; Electricity $150; and Maintenance
$350. What is the total cost of ownership of the printers? A) $264,000, B)
$268,000, C) $256,000, D) $260,000 - Verified Answer B) $268,000
, The supplier of a performance based contract that has a initial 3 yr term w/
two one-yr extensions upon satisfactory performance, has failed to perform
in accordance w/ specified delivery schedules. They also do not respond to
quality issues in a timely manner. The supplier has not been given formal
notice of the problems. The internal user does not want the contract
extended for the remaining two one-yr periods, and wants to terminate the
contract immediately for cause. What should the contract administrator do?
- Verified Answer USE THE "CURE NOTICE" PROCEDURES AND GIVE
NOTICE OF THE FAILURES TO THE SUPPLIER
The members of the team are getting to know one another and learning
about the knowledge and skills that each brings to the team. At what phase
of development is this team? A) Performing, B) Norming, C) Storming, D)
Forming - Verified Answer D) FORMING
A supplier has completed the work identified in the specifications, but the
govt agency has determined that addtl work is required to complete the
project. What should the buyer do to get this work done? A) Inspect and
reject the work, B) Issue a change order under the existing contract, C) Let
the contractor perform the additional work and then determine a fair &
reasonable price for that work, D) Withhold final acceptance of the project
until the supplier completes the additional work. - Verified Answer B)
ISSUE A CHANGE ORDER UNDER THE EXISTING CONTRACT
A procurement dept is diligent to ensure that a solicitation does not have to
be cancelled and re-completed. This activity achieves what organizational
goal? A) Value Analysis, B) Cost Reduction, C) Efficiency, D) Cost
Avoidance - Verified Answer D) COST AVOIDANCE
Which of the following is a benefit of an automated procurement system?
A) Reduces communication entering the system from outside of the
organization, B) Prevents incorrect information being shared among
stakeholders, C) Provides a common repository for data, D) Ensures
purchasing controls all information and decisions. - Verified Answer C)
PROVIDES A COMMON REPOSITORY FOR DATA
The agency would like to "piggyback" its purchases with other agencies
that are participating in cooperative purchasing. When using a "piggyback"
method, what would the arrangement be called? A) Cooperative
Correct Answers.
The purchasing officer of the governmental agency has expressed serious
concerns about the number of repetitive requisitions, solicitations and POs
that are being processed to purchase gasoline for the organization. Every
time a new order is placed, another requisition is created and the prices
paid by each dept. are not consistent; sometimes more and sometimes less
depending on competition and timing. The buyer advises that the solution
would be to use what type of contract? - Verified Answer FIXED-PRICE
WITH ESCALATION/DE-ESCALATION
A Govt agency with a centralized purchasing dept. has a threshold for small
purchases of $1000 and three quotes are required above that figure. There
has been a steady increase in the number of requisitions along with recent
complaints from internal customers about it taking too long to buy what they
need. Which of the following action is most likely to have the biggest impact
on reducing costs and saving time in the long run? - Verified Answer
INSTITUTING A PURCHASING CARD PROGRAM
A Govt agency has been having problems with a supplier's performance
and may terminate their contract with the supplier. Which of the following
would be the best first step in addressing the issue with the supplier? -
Verified Answer ADDRESS W/ ON-SITE SUPVSR/CONTRACTOR
An agency uses a budget in which appropriations are approved for different
classes of expenditures. Each class is broken into subclasses against
which funding for svcs and commodities can be applied. This budget
approach maximizes control & ensures financial accountability. What type
of budget is this? - Verified Answer LINE ITEM BUDGET
The procurement dept. is considering the acquisition of 10 high volume
multi-function printers at a unit cost of $20,000. The printers have an
estimated useful life of 8 yrs and require the following annual costs per
printer: Consumable Supplies $350; Electricity $150; and Maintenance
$350. What is the total cost of ownership of the printers? A) $264,000, B)
$268,000, C) $256,000, D) $260,000 - Verified Answer B) $268,000
, The supplier of a performance based contract that has a initial 3 yr term w/
two one-yr extensions upon satisfactory performance, has failed to perform
in accordance w/ specified delivery schedules. They also do not respond to
quality issues in a timely manner. The supplier has not been given formal
notice of the problems. The internal user does not want the contract
extended for the remaining two one-yr periods, and wants to terminate the
contract immediately for cause. What should the contract administrator do?
- Verified Answer USE THE "CURE NOTICE" PROCEDURES AND GIVE
NOTICE OF THE FAILURES TO THE SUPPLIER
The members of the team are getting to know one another and learning
about the knowledge and skills that each brings to the team. At what phase
of development is this team? A) Performing, B) Norming, C) Storming, D)
Forming - Verified Answer D) FORMING
A supplier has completed the work identified in the specifications, but the
govt agency has determined that addtl work is required to complete the
project. What should the buyer do to get this work done? A) Inspect and
reject the work, B) Issue a change order under the existing contract, C) Let
the contractor perform the additional work and then determine a fair &
reasonable price for that work, D) Withhold final acceptance of the project
until the supplier completes the additional work. - Verified Answer B)
ISSUE A CHANGE ORDER UNDER THE EXISTING CONTRACT
A procurement dept is diligent to ensure that a solicitation does not have to
be cancelled and re-completed. This activity achieves what organizational
goal? A) Value Analysis, B) Cost Reduction, C) Efficiency, D) Cost
Avoidance - Verified Answer D) COST AVOIDANCE
Which of the following is a benefit of an automated procurement system?
A) Reduces communication entering the system from outside of the
organization, B) Prevents incorrect information being shared among
stakeholders, C) Provides a common repository for data, D) Ensures
purchasing controls all information and decisions. - Verified Answer C)
PROVIDES A COMMON REPOSITORY FOR DATA
The agency would like to "piggyback" its purchases with other agencies
that are participating in cooperative purchasing. When using a "piggyback"
method, what would the arrangement be called? A) Cooperative
