CPPO Practice Test Questions with
correct answers
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 - correct answer -Market
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 - correct answer -Mean Absolute Deviation
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 - correct answer -Developing alternate
procurement operations locations
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 - correct answer -Emergency Operations Plan
,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 - correct answer -Draft a mission statement
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 - correct answer -Supply positioning
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 - correct answer -Weighted moving average
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 - correct answer -Realistic
,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 - correct answer -Cost/benefit analysis
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 - correct answer -Economic order quantity
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 - correct answer -Obsolete
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 - correct answer -Expedite
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 - correct answer -Contracting for just-in-time delivery
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 - correct answer -High usage low value items
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 - correct answer -Sell it to employees
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 - correct answer -Following up
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
correct answers
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 - correct answer -Market
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 - correct answer -Mean Absolute Deviation
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 - correct answer -Developing alternate
procurement operations locations
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 - correct answer -Emergency Operations Plan
,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 - correct answer -Draft a mission statement
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 - correct answer -Supply positioning
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 - correct answer -Weighted moving average
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 - correct answer -Realistic
,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 - correct answer -Cost/benefit analysis
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 - correct answer -Economic order quantity
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 - correct answer -Obsolete
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 - correct answer -Expedite
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 - correct answer -Contracting for just-in-time delivery
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 - correct answer -High usage low value items
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 - correct answer -Sell it to employees
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 - correct answer -Following up
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
