CPPO Exam with correct answers
7 Rights of Purchasing - correct answer -To obtain the right material in the right quantity for delivery at
the right time to the right place from the right source(a responsive and responsible supplier) with the
right service at the right price.
Values - correct answer -Enduring beliefs or ideals shared by public procurement about what is good or
desirable and what is not in our actions.
Goals - correct answer -Long-term, tangible, attainable targets for an organization
Policies - correct answer -Plans, courses of action, or governing principles which establishes the general
parameters for the organization to follow in carrying out its responsibilities.
Mission Statement - correct answer -States the purpose of its existence and its core values. it should be
no more than three sentences and identifies the purpose of an organization, the services it provides, the
customers it seeks to serve and the way it serves.
Strategic Plan includes: - correct answer -Vision, mission, goals, objectives, strategies, performance
measures and evaluation
Vision - correct answer -Identifies where the organization wants to be in the future
Mission - correct answer -Identifies why it exists, what it is and how it contributes to the local
community.
Goals - correct answer -Identifies what the organization is intending to accomplish and proposes the
general end towards which an organization directs its efforts.
Objectives - correct answer -Highly defined targets that require specific action with a shorter time
frame.
,Strategies - correct answer -Identified methods to achieve specific goals and are used to carry out
objectives. Long range plans
Performance Measures - correct answer -The development and alignment of objectives and mechanisms
for measuring the accomplishments of objectives to support the strategic goals of the organization.
Something to evaluate against.
Evaluation - correct answer -Monitoring the end results
Objectives should be: - correct answer -SMART-Specific, measurable, assignable, realistic and time
based.
Types of performance measures - correct answer -Demand, workload, efficiency and effectiveness
Demand - correct answer -A measure that assesses the severity of a problem or the scope of work to be
performed.
Workload - correct answer -A measure that indicates the amount of work which must be performed to
accomplish a specific task.
Efficiency - correct answer -A measure that compares resources used with results obtained.
Effectiveness - correct answer -A measure that determines how well a program or activity meets an
objective or fulfills a need.
Value-added benefits* - correct answer -Takes into consideration quality, cost, service, TCO (total cost of
ownership) and continuity of supply.
Policy Manual - correct answer -Manual that says how we must do it. Defines the general parameters for
the organization to follow in carrying out its responsibilities.
,Procedure manual - correct answer -Shows in great detail how to do the work. It functions to not only
provide guidance but to set out forms, process requirements ans steps for each purchasing action.
Regulations - correct answer -Statements by a governing body to implement, interpret or prescribe law
or policy.
Automated procurement management information systems - correct answer -Saves considerable time
and effort, reduces overhead and improves schedule by eliminating the repetitive clerical tasks
associated with purchasing.
Enterprise Resource Planning Systems (ERP) - correct answer -Business process software systems that
manage multiple management systems such as finance, accounting, human resources, purchasing, and
inventory.
Retention Schedule for documents* - correct answer -Must save the following: "HAL" Historical,
Administrative and Legal
Cooperative Purchasing - correct answer -Two or more agencies combining their requirements to obtain
advantages of volume purchasing including administrative savings.
Benefits of Cooperative purchasing - correct answer -Provides lower prices for large agencies volume
purchases, lower cost to smaller entities, combines qualities so that each entity gets a good value and
reduces admin costs of purchasing.
Initial Steps to develop a Co-operative Purchasing Program - correct answer -Discuss the advantages,
review agency policies and engage legal counsel to assess laws, develop a whitepaper, research what
other authorities are doing.
Cost Avoidance - correct answer -Actions taken to avoid having to pay some sort of cost. Also a
dedicated effort on the part of the official to carefully analyze the agencies needs to prevent
unnecessary charges.
, Cost Reduction - correct answer -Occurs when the current price to be paid by the buyer is lower than
the previous price paid under similar procurement conditions generally as a result of a favorable
competitive market.
How to measure procurement performance - correct answer -Effectiveness, efficiency, projections and
customer service
Effectiveness - correct answer -How long it takes to process a request for procurement.
Efficiency - correct answer -Defined as the ratio between inputs and outputs.
Projections - correct answer -Derived from historical baselines of the key objectives and actual
outcomes.
According to Maslow's Hierarchy of Needs, which of the following is considered to be the ultimate
human need?
According to Maslow's Hierarchy of Needs, which of the following is considered to be the ultimate
human need? - correct answer -Self Actualization
The costs of maintaining an inventory of supplies (e.g. the costs of invested funds, insurance, storage,
obsolescence, deterioration, equipment and labor) are known as: - correct answer -Carrying Costs
One of the benefits of using Requests for Proposals is recognizing that the best solutions can come from
field experts who deal on a daily basis with conflicts we are trying to solve. This benefit is known as: -
correct answer -Value Engineering
In preparing to write a specification or scope of work, we may want to consider one of two methods of
gathering facts or details from potential vendors. We can invite several of them to come to our agency
and make a presentation or we can cast a wider net with this technique. - correct answer -Request for
Information
The city has had a term contract in place for two years. The original term of the contract was for up to
three years. Usage of the contract has declined to almost nothing. The city purchasing manager has
7 Rights of Purchasing - correct answer -To obtain the right material in the right quantity for delivery at
the right time to the right place from the right source(a responsive and responsible supplier) with the
right service at the right price.
Values - correct answer -Enduring beliefs or ideals shared by public procurement about what is good or
desirable and what is not in our actions.
Goals - correct answer -Long-term, tangible, attainable targets for an organization
Policies - correct answer -Plans, courses of action, or governing principles which establishes the general
parameters for the organization to follow in carrying out its responsibilities.
Mission Statement - correct answer -States the purpose of its existence and its core values. it should be
no more than three sentences and identifies the purpose of an organization, the services it provides, the
customers it seeks to serve and the way it serves.
Strategic Plan includes: - correct answer -Vision, mission, goals, objectives, strategies, performance
measures and evaluation
Vision - correct answer -Identifies where the organization wants to be in the future
Mission - correct answer -Identifies why it exists, what it is and how it contributes to the local
community.
Goals - correct answer -Identifies what the organization is intending to accomplish and proposes the
general end towards which an organization directs its efforts.
Objectives - correct answer -Highly defined targets that require specific action with a shorter time
frame.
,Strategies - correct answer -Identified methods to achieve specific goals and are used to carry out
objectives. Long range plans
Performance Measures - correct answer -The development and alignment of objectives and mechanisms
for measuring the accomplishments of objectives to support the strategic goals of the organization.
Something to evaluate against.
Evaluation - correct answer -Monitoring the end results
Objectives should be: - correct answer -SMART-Specific, measurable, assignable, realistic and time
based.
Types of performance measures - correct answer -Demand, workload, efficiency and effectiveness
Demand - correct answer -A measure that assesses the severity of a problem or the scope of work to be
performed.
Workload - correct answer -A measure that indicates the amount of work which must be performed to
accomplish a specific task.
Efficiency - correct answer -A measure that compares resources used with results obtained.
Effectiveness - correct answer -A measure that determines how well a program or activity meets an
objective or fulfills a need.
Value-added benefits* - correct answer -Takes into consideration quality, cost, service, TCO (total cost of
ownership) and continuity of supply.
Policy Manual - correct answer -Manual that says how we must do it. Defines the general parameters for
the organization to follow in carrying out its responsibilities.
,Procedure manual - correct answer -Shows in great detail how to do the work. It functions to not only
provide guidance but to set out forms, process requirements ans steps for each purchasing action.
Regulations - correct answer -Statements by a governing body to implement, interpret or prescribe law
or policy.
Automated procurement management information systems - correct answer -Saves considerable time
and effort, reduces overhead and improves schedule by eliminating the repetitive clerical tasks
associated with purchasing.
Enterprise Resource Planning Systems (ERP) - correct answer -Business process software systems that
manage multiple management systems such as finance, accounting, human resources, purchasing, and
inventory.
Retention Schedule for documents* - correct answer -Must save the following: "HAL" Historical,
Administrative and Legal
Cooperative Purchasing - correct answer -Two or more agencies combining their requirements to obtain
advantages of volume purchasing including administrative savings.
Benefits of Cooperative purchasing - correct answer -Provides lower prices for large agencies volume
purchases, lower cost to smaller entities, combines qualities so that each entity gets a good value and
reduces admin costs of purchasing.
Initial Steps to develop a Co-operative Purchasing Program - correct answer -Discuss the advantages,
review agency policies and engage legal counsel to assess laws, develop a whitepaper, research what
other authorities are doing.
Cost Avoidance - correct answer -Actions taken to avoid having to pay some sort of cost. Also a
dedicated effort on the part of the official to carefully analyze the agencies needs to prevent
unnecessary charges.
, Cost Reduction - correct answer -Occurs when the current price to be paid by the buyer is lower than
the previous price paid under similar procurement conditions generally as a result of a favorable
competitive market.
How to measure procurement performance - correct answer -Effectiveness, efficiency, projections and
customer service
Effectiveness - correct answer -How long it takes to process a request for procurement.
Efficiency - correct answer -Defined as the ratio between inputs and outputs.
Projections - correct answer -Derived from historical baselines of the key objectives and actual
outcomes.
According to Maslow's Hierarchy of Needs, which of the following is considered to be the ultimate
human need?
According to Maslow's Hierarchy of Needs, which of the following is considered to be the ultimate
human need? - correct answer -Self Actualization
The costs of maintaining an inventory of supplies (e.g. the costs of invested funds, insurance, storage,
obsolescence, deterioration, equipment and labor) are known as: - correct answer -Carrying Costs
One of the benefits of using Requests for Proposals is recognizing that the best solutions can come from
field experts who deal on a daily basis with conflicts we are trying to solve. This benefit is known as: -
correct answer -Value Engineering
In preparing to write a specification or scope of work, we may want to consider one of two methods of
gathering facts or details from potential vendors. We can invite several of them to come to our agency
and make a presentation or we can cast a wider net with this technique. - correct answer -Request for
Information
The city has had a term contract in place for two years. The original term of the contract was for up to
three years. Usage of the contract has declined to almost nothing. The city purchasing manager has
