CPCM PRACTICE EXAMS 2025/2026 QUESTIONS WITH
ANSWERS RATED A+
✔✔Current ratio - ✔✔The ratio of current assets divided by current liabilities, want to be
over 1
✔✔Debt-to-equity ratio - ✔✔The ratio measuring the relation of debt divided by
shareholder equity used to finance the company's operations
✔✔Demand - ✔✔Describes how buyers behave in the marketplace; the quantity a
buyer demands is what a buyer is willing to buy at a particular price
✔✔Directing - ✔✔The management of people and processes to accomplish objectives
✔✔Economics - ✔✔The science concerned with making decisions with scarce
resources such as labor, capital, goods, and natural resources
✔✔Electronic government (e-government) - ✔✔The use by the government of the
Internet and other information technologies, together with the processes and people
needed to implement them, to enhance the delivery of information and services to the
public and others to make improvements in government operations
✔✔Equity - ✔✔The amount of money that would be left if a company sold all of its
assets and paid off all of its liabilities; this amount, also called capital or net worth,
belongs to the owner(s) of the company
✔✔FedBizOpps - ✔✔A web-based portal (www.fbo.gov) that allows vendors to review
federal business opportunities, and buyers to create opportunity notices and awards,
using secured accounts
✔✔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; nonregulatory 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 Assets - ✔✔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
✔✔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
✔✔Operational planning - ✔✔Looks at the near-term goals and identifies how the
organization will meet its tactical goals
, ✔✔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
charged to a project for more than one contract that are run through the process at the
same time, even though the end items 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 (QC) - ✔✔The seller's process of measuring quality performance,
comparing it with the standard, and acting on the difference.
✔✔Solvency or Liquidity ratio - ✔✔A ratio measuring the company's ability to meets 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
ANSWERS RATED A+
✔✔Current ratio - ✔✔The ratio of current assets divided by current liabilities, want to be
over 1
✔✔Debt-to-equity ratio - ✔✔The ratio measuring the relation of debt divided by
shareholder equity used to finance the company's operations
✔✔Demand - ✔✔Describes how buyers behave in the marketplace; the quantity a
buyer demands is what a buyer is willing to buy at a particular price
✔✔Directing - ✔✔The management of people and processes to accomplish objectives
✔✔Economics - ✔✔The science concerned with making decisions with scarce
resources such as labor, capital, goods, and natural resources
✔✔Electronic government (e-government) - ✔✔The use by the government of the
Internet and other information technologies, together with the processes and people
needed to implement them, to enhance the delivery of information and services to the
public and others to make improvements in government operations
✔✔Equity - ✔✔The amount of money that would be left if a company sold all of its
assets and paid off all of its liabilities; this amount, also called capital or net worth,
belongs to the owner(s) of the company
✔✔FedBizOpps - ✔✔A web-based portal (www.fbo.gov) that allows vendors to review
federal business opportunities, and buyers to create opportunity notices and awards,
using secured accounts
✔✔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; nonregulatory 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 Assets - ✔✔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
✔✔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
✔✔Operational planning - ✔✔Looks at the near-term goals and identifies how the
organization will meet its tactical goals
, ✔✔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
charged to a project for more than one contract that are run through the process at the
same time, even though the end items 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 (QC) - ✔✔The seller's process of measuring quality performance,
comparing it with the standard, and acting on the difference.
✔✔Solvency or Liquidity ratio - ✔✔A ratio measuring the company's ability to meets 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
