CPPO Practice Test Questions
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 - answerIn 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 - answerThe 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 - answerAn 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 - answerA 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 - answerThe 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 - answerThe 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 - answerWhat 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 - answerThe 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 - answerProcurement 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 - answerIf 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 - answerWhich 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 - answerWhich 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 - answerWhen 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 - answerThe 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
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 - answerIn 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 - answerThe 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 - answerAn 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 - answerA 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 - answerThe 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 - answerThe 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 - answerWhat 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 - answerThe 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 - answerProcurement 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 - answerIf 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 - answerWhich 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 - answerWhich 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 - answerWhen 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 - answerThe 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
