CPCM EVALUATION EXAMS 2025/2026 QUESTIONS WITH
ANSWERS RATED A+
✔✔Financial analysis - ✔✔An assessment of the viability, stability, and profitability of a
business
✔✔Generally Accepted Accounting Principles (GAAP) - ✔✔A set of uniform accounting
rules for assigning and measuring contract data to accurately represent an
organization's financial condition; no regulatory guidance developed and used by
certified public accountants
✔✔Gross Profit - ✔✔The subtotal of total revenue made during an accounting period,
minus any returns or discounts and the costs of goods sold, before deducting operating
expenses
✔✔Income statement - ✔✔A report that shows how much revenue a company earned
over a specific time period, and the costs and expenses associated with earning that
revenue
✔✔Information science - ✔✔The field concerned with collecting, organizing, storing,
retrieving, and protecting recorded data
✔✔Intangible assets - ✔✔Assets whose value comes from a legal claim or additional
earning power from a business transaction, such as goodwill, patents, or trademarks
✔✔Job-order cost system - ✔✔An accounting system under which the company
accounts for output by identifying specific physical units; the costs for each job or
contract are accumulated under separate job orders
✔✔Latency - ✔✔The delay between when a cost is incurred and when that cost
appears in the accounting system
✔✔Liability - ✔✔An amount of money owed by a company to another; may require a
specific sum of money paid to a particular party at a specified time, or may be indefinite
✔✔Long-term - ✔✔Long-term assets are assets that a business cannot easily turn into
cash and that are not used within one year; long-term liabilities are liabilities that will
mature over one year from the balance sheet date
✔✔Monopoly - ✔✔A type of competition that exists when there is only one company in
the marketplace and it has no competitors
✔✔Monopsony - ✔✔A type of competition that exists when there is only one buyer,
such as when certain supplies or services can only be bought by a single entity
,✔✔Net operating income - ✔✔The subtotal of gross profit minus the operating
expenses that a company pays to conduct its business
✔✔Oligopoly - ✔✔A type of competition that exists when there are only a few
companies in an industry with slight differences in products or services
✔✔Operational planning - ✔✔Looks at the near-term goals and identifies how the
organization will meet its tactical goals
✔✔Operations management - ✔✔A type of management activity that is mostly
concerned with the directing and controlling of management functions, which uses
customer feedback to improve processes and procedures, to improve the activities or
add value to the product or service
✔✔Organizing - ✔✔Allocating resources to meet goals identified during the planning
process
✔✔Perfect competition - ✔✔A type of competition that exists when many companies
produce identical goods or services and no one company can influence the market
✔✔Planning - ✔✔Preparing the organization for the future
✔✔Process cost system - ✔✔An accounting system under which direct costs are
changed to a project for more than one contract that are run through the process at the
same time, even though the end its may not be identical; at the end of the accounting
period, the costs incurred for that process are assigned to the units completed during
the period and to the incomplete unit still in production
✔✔Project management - ✔✔The discipline of initiating, planning, executing,
controlling, and closing the work of a team to achieve specific goals and meet specific
success criteria
✔✔Resource-loaded schedule - ✔✔A project schedule outlining what tasks will take
place, when they are scheduled to begin and end, and what resources are needed to
accomplish them
✔✔Quality control - ✔✔The process of evaluating how well a product or service meets
the customer's needs
✔✔Solvency ratio - ✔✔A ratio measuring the company's ability to meet its current and
long-term obligations; also called liquidity ratio
, ✔✔Statistical process control - ✔✔An operations management tool that looks at
identifying and preventing quality problems
✔✔Strategic planning - ✔✔Looks at long-term goals and objectives, typically based on
the organization's mission statement
✔✔Supply - ✔✔Indicates how sellers behave in the marketplace; the quantity supplied
is what is available to be bought at a particular price
✔✔Supply chain - ✔✔All the tasks associated with taking raw materials and
transforming them into the final product to deliver to the customer
✔✔Supply chain management - ✔✔A process of integrating goods, services, and
information to meet the customer's needs; involves managing the activities to produce
and deliver a product or service from suppliers and their vendors to the customer
✔✔Tactical planning - ✔✔Focuses on short-term goals and involves evaluating
economic and environmental issues to meet the strategic plan's goals
✔✔Tangible assets - ✔✔Assets whose values comes from their physical substance,
such as land, buildings, and equipment
✔✔Time-phases budget - ✔✔A "road map" estimating how much funding a contract will
require over time
✔✔Work breakdown structure - ✔✔A top-down hierarchical or tree-structured
description of the work to be accomplished as viewed from the standpoint of outputs or
products
✔✔Acceptance Criteria - ✔✔Those criteria, usually stated in a contract and or / SOW
that includes deliverables, performance requirements and essential conditions, which
must be met to complete project deliverables and to be accepted.
✔✔Agile - ✔✔A project management methodology utilizing short-term sprints to react to
changing scope requirements.
✔✔Baseline - ✔✔The original plan (for a project, a work package, or an activity) plus or
minus approved changes; usually used with a modifier (e.g., cost baseline, schedule
baseline performance measurement baseline)
✔✔Budget - ✔✔When unqualified, refers to an estimate of funds planned to cover a
project or specified period of future time; when approved, the estimate for the project or
any work breakdown component or any scheduled activity.
ANSWERS RATED A+
✔✔Financial analysis - ✔✔An assessment of the viability, stability, and profitability of a
business
✔✔Generally Accepted Accounting Principles (GAAP) - ✔✔A set of uniform accounting
rules for assigning and measuring contract data to accurately represent an
organization's financial condition; no regulatory guidance developed and used by
certified public accountants
✔✔Gross Profit - ✔✔The subtotal of total revenue made during an accounting period,
minus any returns or discounts and the costs of goods sold, before deducting operating
expenses
✔✔Income statement - ✔✔A report that shows how much revenue a company earned
over a specific time period, and the costs and expenses associated with earning that
revenue
✔✔Information science - ✔✔The field concerned with collecting, organizing, storing,
retrieving, and protecting recorded data
✔✔Intangible assets - ✔✔Assets whose value comes from a legal claim or additional
earning power from a business transaction, such as goodwill, patents, or trademarks
✔✔Job-order cost system - ✔✔An accounting system under which the company
accounts for output by identifying specific physical units; the costs for each job or
contract are accumulated under separate job orders
✔✔Latency - ✔✔The delay between when a cost is incurred and when that cost
appears in the accounting system
✔✔Liability - ✔✔An amount of money owed by a company to another; may require a
specific sum of money paid to a particular party at a specified time, or may be indefinite
✔✔Long-term - ✔✔Long-term assets are assets that a business cannot easily turn into
cash and that are not used within one year; long-term liabilities are liabilities that will
mature over one year from the balance sheet date
✔✔Monopoly - ✔✔A type of competition that exists when there is only one company in
the marketplace and it has no competitors
✔✔Monopsony - ✔✔A type of competition that exists when there is only one buyer,
such as when certain supplies or services can only be bought by a single entity
,✔✔Net operating income - ✔✔The subtotal of gross profit minus the operating
expenses that a company pays to conduct its business
✔✔Oligopoly - ✔✔A type of competition that exists when there are only a few
companies in an industry with slight differences in products or services
✔✔Operational planning - ✔✔Looks at the near-term goals and identifies how the
organization will meet its tactical goals
✔✔Operations management - ✔✔A type of management activity that is mostly
concerned with the directing and controlling of management functions, which uses
customer feedback to improve processes and procedures, to improve the activities or
add value to the product or service
✔✔Organizing - ✔✔Allocating resources to meet goals identified during the planning
process
✔✔Perfect competition - ✔✔A type of competition that exists when many companies
produce identical goods or services and no one company can influence the market
✔✔Planning - ✔✔Preparing the organization for the future
✔✔Process cost system - ✔✔An accounting system under which direct costs are
changed to a project for more than one contract that are run through the process at the
same time, even though the end its may not be identical; at the end of the accounting
period, the costs incurred for that process are assigned to the units completed during
the period and to the incomplete unit still in production
✔✔Project management - ✔✔The discipline of initiating, planning, executing,
controlling, and closing the work of a team to achieve specific goals and meet specific
success criteria
✔✔Resource-loaded schedule - ✔✔A project schedule outlining what tasks will take
place, when they are scheduled to begin and end, and what resources are needed to
accomplish them
✔✔Quality control - ✔✔The process of evaluating how well a product or service meets
the customer's needs
✔✔Solvency ratio - ✔✔A ratio measuring the company's ability to meet its current and
long-term obligations; also called liquidity ratio
, ✔✔Statistical process control - ✔✔An operations management tool that looks at
identifying and preventing quality problems
✔✔Strategic planning - ✔✔Looks at long-term goals and objectives, typically based on
the organization's mission statement
✔✔Supply - ✔✔Indicates how sellers behave in the marketplace; the quantity supplied
is what is available to be bought at a particular price
✔✔Supply chain - ✔✔All the tasks associated with taking raw materials and
transforming them into the final product to deliver to the customer
✔✔Supply chain management - ✔✔A process of integrating goods, services, and
information to meet the customer's needs; involves managing the activities to produce
and deliver a product or service from suppliers and their vendors to the customer
✔✔Tactical planning - ✔✔Focuses on short-term goals and involves evaluating
economic and environmental issues to meet the strategic plan's goals
✔✔Tangible assets - ✔✔Assets whose values comes from their physical substance,
such as land, buildings, and equipment
✔✔Time-phases budget - ✔✔A "road map" estimating how much funding a contract will
require over time
✔✔Work breakdown structure - ✔✔A top-down hierarchical or tree-structured
description of the work to be accomplished as viewed from the standpoint of outputs or
products
✔✔Acceptance Criteria - ✔✔Those criteria, usually stated in a contract and or / SOW
that includes deliverables, performance requirements and essential conditions, which
must be met to complete project deliverables and to be accepted.
✔✔Agile - ✔✔A project management methodology utilizing short-term sprints to react to
changing scope requirements.
✔✔Baseline - ✔✔The original plan (for a project, a work package, or an activity) plus or
minus approved changes; usually used with a modifier (e.g., cost baseline, schedule
baseline performance measurement baseline)
✔✔Budget - ✔✔When unqualified, refers to an estimate of funds planned to cover a
project or specified period of future time; when approved, the estimate for the project or
any work breakdown component or any scheduled activity.
