CPPB PREP DOMAIN I PROCUREMENT
ADMINISTRATION EXAM QUESTIONS
AND ANSWERS
Performance Audits - ANSWER-Review all the operations of a governmental unit
and encompass the following types of audits: financial, economy, efficiency, and
program results. An increasingly common means of ensuring that those entrusted
with management of public services and programs are held accountable.
3 Phases of Evaluation Process - ANSWER-1. Planning
2. Data Collecting
3. Decision making based on findings and recommendations
Intradepartmental Reports - ANSWER-Designed to inform the management
concerning departmental matters.
Interdepartmental Reports - ANSWER-For distribution to other departments on a
need-to-know basis.
Higher Level Management Reports - ANSWER-Issued to senior management and
other key personnel.
Electronic Procurement (eProcurement) - ANSWER-Conducting all or some of the
procurement functions over the internet. Implies that point, click, buy, and ship
internet technology is replacing paper-based procurement and supply management
business processes.
Electronic Commerce (eCommerce) - ANSWER-The integration of electronic data
interchange, electronic funds transfer, and similar techniques into a comprehensive
electronic-based system of procurement functions; could include postings of IFBs
and RFPs on electronic bulletin boards, the receipt of bids via electronic data
interchange, notification of award by email and payment via electronic funds transfer.
Also referred to as Electronic Sourcing (eSourcing).
Electronic Sourcing (eSourcing) - ANSWER-The process of obtaining bids from
different supplies via a single online portal. The benefits include streamlining the
sourcing process, reducing prices by maximizing supplier competition, and creating a
repository for sourcing information.
Preferance - ANSWER-An advantage given to bidders/offerors in a competition for
contract award which may be granted based on pre-established critera such as
ethnicity, residence, business location, origination of product or service, business
classification, or other reasons.
Post-consumer - ANSWER-Materials have been used by consumers, recycled, and
processed back into a consumer product.
, Pre-consumer - ANSWER-Materials are left over in manufacturing processes and
then reused in a consumer product.
Express Authority - ANSWER-Authority explicitly given in direct language rather than
inferred from conduct.
Implied Authority - ANSWER-Authority that is not defined expressly but is only
determined by inferences and reasonable deductions arising out of the conduct of
the principal toward the agent and the agent's actions.
Apparent Authority - ANSWER-Occurs when a principal allows or permits a person
to function in a capacity that creates the illusion that the person is an authorized
agent of the principal.
Rational Budget Decision Model - ANSWER-Promotes economic efficiency by
allocating resources to those programs and services that generate greater net
benefits and result in incremental benefits great than the incremental costs.
Line Item Budgets - ANSWER-Oldest and most predominant form of budgeting in the
public sector. Fixed budgets with monies appropriated for a particular period, usually
one year.
Performance Budgets - ANSWER-Relates expenditures and revenues to workloads.
Program Budgets - ANSWER-Relate expenditures and revenues to public goals.
Value Engineering (VE) - ANSWER-A technique by when contractors may (1)
voluntarily suggest methods for performing more economically and may share in an
resulting savings or (2) be required to establish a program or identify and submit
methods for performing more economically. Usually applied to construction projects.
May be a part of a Request for Proposal or action taken by the contractor after the
award.
Total Cost of Ownership (TCO) - ANSWER-A measure of all the cost components
associated with the procurement of a product or service. The sum of all fixed and
variable costs attributed to a product or service. A philosophy for understanding all
supply chain related costs of doing business with a particular supplier for a particular
good or service.
Life Cycle Costing - ANSWER-The total cost of ownership over the life span of the
asset: a procurement technique that takes into account operating, maintenance, the
time value of money, disposal, and other associated costs of ownership as well as
the residual value of the item.
Cost Reduction - ANSWER-Generally realized when a manufacturer is able to lower
its material or labor costs used to make its products; interchangeably used to
indicate a lower price paid by the buyer from what was previously paid.
ADMINISTRATION EXAM QUESTIONS
AND ANSWERS
Performance Audits - ANSWER-Review all the operations of a governmental unit
and encompass the following types of audits: financial, economy, efficiency, and
program results. An increasingly common means of ensuring that those entrusted
with management of public services and programs are held accountable.
3 Phases of Evaluation Process - ANSWER-1. Planning
2. Data Collecting
3. Decision making based on findings and recommendations
Intradepartmental Reports - ANSWER-Designed to inform the management
concerning departmental matters.
Interdepartmental Reports - ANSWER-For distribution to other departments on a
need-to-know basis.
Higher Level Management Reports - ANSWER-Issued to senior management and
other key personnel.
Electronic Procurement (eProcurement) - ANSWER-Conducting all or some of the
procurement functions over the internet. Implies that point, click, buy, and ship
internet technology is replacing paper-based procurement and supply management
business processes.
Electronic Commerce (eCommerce) - ANSWER-The integration of electronic data
interchange, electronic funds transfer, and similar techniques into a comprehensive
electronic-based system of procurement functions; could include postings of IFBs
and RFPs on electronic bulletin boards, the receipt of bids via electronic data
interchange, notification of award by email and payment via electronic funds transfer.
Also referred to as Electronic Sourcing (eSourcing).
Electronic Sourcing (eSourcing) - ANSWER-The process of obtaining bids from
different supplies via a single online portal. The benefits include streamlining the
sourcing process, reducing prices by maximizing supplier competition, and creating a
repository for sourcing information.
Preferance - ANSWER-An advantage given to bidders/offerors in a competition for
contract award which may be granted based on pre-established critera such as
ethnicity, residence, business location, origination of product or service, business
classification, or other reasons.
Post-consumer - ANSWER-Materials have been used by consumers, recycled, and
processed back into a consumer product.
, Pre-consumer - ANSWER-Materials are left over in manufacturing processes and
then reused in a consumer product.
Express Authority - ANSWER-Authority explicitly given in direct language rather than
inferred from conduct.
Implied Authority - ANSWER-Authority that is not defined expressly but is only
determined by inferences and reasonable deductions arising out of the conduct of
the principal toward the agent and the agent's actions.
Apparent Authority - ANSWER-Occurs when a principal allows or permits a person
to function in a capacity that creates the illusion that the person is an authorized
agent of the principal.
Rational Budget Decision Model - ANSWER-Promotes economic efficiency by
allocating resources to those programs and services that generate greater net
benefits and result in incremental benefits great than the incremental costs.
Line Item Budgets - ANSWER-Oldest and most predominant form of budgeting in the
public sector. Fixed budgets with monies appropriated for a particular period, usually
one year.
Performance Budgets - ANSWER-Relates expenditures and revenues to workloads.
Program Budgets - ANSWER-Relate expenditures and revenues to public goals.
Value Engineering (VE) - ANSWER-A technique by when contractors may (1)
voluntarily suggest methods for performing more economically and may share in an
resulting savings or (2) be required to establish a program or identify and submit
methods for performing more economically. Usually applied to construction projects.
May be a part of a Request for Proposal or action taken by the contractor after the
award.
Total Cost of Ownership (TCO) - ANSWER-A measure of all the cost components
associated with the procurement of a product or service. The sum of all fixed and
variable costs attributed to a product or service. A philosophy for understanding all
supply chain related costs of doing business with a particular supplier for a particular
good or service.
Life Cycle Costing - ANSWER-The total cost of ownership over the life span of the
asset: a procurement technique that takes into account operating, maintenance, the
time value of money, disposal, and other associated costs of ownership as well as
the residual value of the item.
Cost Reduction - ANSWER-Generally realized when a manufacturer is able to lower
its material or labor costs used to make its products; interchangeably used to
indicate a lower price paid by the buyer from what was previously paid.
