CPPO PRACTICE TEST QUESTIONS WITH CORRECT ANSWERS RATED 100%
$101,750 - Answer The IT Department is purchasing five (5) large format printers. Each printer
has a life span of 7 years with a per unit price of $6,280. The toner cartridge must be replaced
quarterly; the price per cartridge is $325. The annual maintenance contract per unit has a price
of $710. What is the life cycle cost for this purchase?
a. $98,650
b. $114,310
c. $101,750
d. $88,850
$171,481.00 - Answer The Fleet Department is considering purchasing four vehicles for the Parks
Department and has requested Purchasing's assistance in determining the total cost
of ownership. The lifecycle of each vehicle is estimated at five years. The purchase
price of each vehicle is $22,499.00. Yearly maintenance cost per vehicle is
approximately $1,250. Fuel is estimated at approximately $2,650 per vehicle per
year. Insurance per vehicle is $874.25 per year. Salvage value is determined to be
$3,500 per unit. What is the total cost of ownership for this purchase?
A. $157,493.00
B. $190,511.00
C. $171,481.00
D. $193,996.00
$275 - Answer The Purchasing Department is expecting a shipment of 160 personal printers at a
unit price of $250. The Supplier shipped the printers FOB Destination; freight collect
in the amount of $3,200. Insurance for goods in transit is $800. What is the
delivered unit cost of the printers?
A. $250
B. $270
,C. $275
D. $255
$468,000 - Answer The procurement department purchased 150 all-in-one desktop computers at
a
delivered unit price of $3,000.00. The computers have an estimated useful life of 5
years and a residual value of $300.00. Maintenance and technical support on the
computers is $30.00 per computer per year. The purchasing department donated all
the computers to the local school district after 4 years of use. What is the total cost of
ownership?
A. $472,500
B. $450,000
C. $432,000
D. $468,000
Advise the supplier that they will be charged pursuant to the Liquidated Damages
clause in contract - Answer A contract is awarded for the supply and delivery of a self-contained
boiler unit which
is anticipated to save the entity approximately $52,000 per year on heating costs. It
was contracted to be installed by October 30, but the contract manager has been
notified that the unit has been delayed at the border due to incorrect paperwork.
The boiler is anticipated to arrive November 27 which is four weeks late. What is the best course
of action to take with the supplier?
A. Advise the supplier that they will be charged $1000 per week of the delay, equivalent to lost
savings
B. Advise the supplier that they will be charged pursuant to the Liquidated Damages clause in
contract
C. Cancel the contract and get another supplier to deliver another similar type of boiler found
locally
D. No action should be taken with the supplier, because they may get angry and delay further
,Advising management on market conditions - Answer Which of the following is the best example
of procurement's role in the strategic planning process?
A. Processing purchase orders in a timely manner
B. Advising management on market conditions
C. Shipping and receiving warehouse materials
D. The recruitment and hiring of qualified procurement staff
Analyze contract administration process - Answer A contract team has reviewed payments,
administrative issues, deliverables and
property for a service contract. What would be the next appropriate step in the close
out process?
A. Review contract administration phases
B. Revise contract reports
C. Analyze contract budget reports
D. Analyze contract administration process
Apparent authority - Answer Facilities Management Office of a public agency rented a sea
container from a
supplier for $600.00. The container was delivered after the business hours, and a
security officer on duty signed off on a delivery receipt and a Property Damage
Release at the request of the truck driver. 10 days after delivery of the container, the
supplier sent the invoice to the agency for payment. What type of authority did the
security officer assume?
A. Express authority
B. Implied authority
C. Apparent authority
D. Inherent authority
, Assign resources according to opportunities and risks - Answer Why do procurement organizations
undertake a strategic procurement planning
process?
A. Analyze the spending data related to past purchases
B. Assign resources according to opportunities and risks
C. Map the procurement process
D. Identify trends in the market place
Avoid unduly disrupting or delaying the procurement process - Answer In response to a protest a
governmental agency may grant a request in full or in part
for a hearing. If the governmental agency grants a request, it will usually hold a prehearing
conference to clarify procedural issues and substantive questions. What is
the purpose of this hearing?
A. Avoid unduly disrupting or delaying the procurement process
B. Create an atmosphere of trust between the bidder and governmental agency
C. Decrease the speed at which a protest takes place
D. Ensure the governmental agency can participate in a hearing
Begin the process of building documentation of the issues by issuing a Cure Notice - Answer A
procurement officer was asked by his entity to terminate a contract in the middle of its 5 year
contract term and re-solicit the service. The reasons given were legitimate contract deficiencies,
and failure to perform. After review of the contract file, the procurement officer determines that
this is the first documented issue with this contractor. When the procurement officer asks about
measures taken to remedy the contract performance concerns, the program manager stated that
she had several phone calls with the contractor's staff and she has not gotten the results they
promised in those phone calls. What should the procurement officer do?
a. Terminate the contract for failure to perform and send a letter to the surety of the contract
demanding performance bond
b. Set a meeting with the contractor to discuss the termination of the contract
c. Begin the process of building documentation of the issues by issuing a Cure Notice
d. Ask that the program manager set up a mediation date with the contractor
$101,750 - Answer The IT Department is purchasing five (5) large format printers. Each printer
has a life span of 7 years with a per unit price of $6,280. The toner cartridge must be replaced
quarterly; the price per cartridge is $325. The annual maintenance contract per unit has a price
of $710. What is the life cycle cost for this purchase?
a. $98,650
b. $114,310
c. $101,750
d. $88,850
$171,481.00 - Answer The Fleet Department is considering purchasing four vehicles for the Parks
Department and has requested Purchasing's assistance in determining the total cost
of ownership. The lifecycle of each vehicle is estimated at five years. The purchase
price of each vehicle is $22,499.00. Yearly maintenance cost per vehicle is
approximately $1,250. Fuel is estimated at approximately $2,650 per vehicle per
year. Insurance per vehicle is $874.25 per year. Salvage value is determined to be
$3,500 per unit. What is the total cost of ownership for this purchase?
A. $157,493.00
B. $190,511.00
C. $171,481.00
D. $193,996.00
$275 - Answer The Purchasing Department is expecting a shipment of 160 personal printers at a
unit price of $250. The Supplier shipped the printers FOB Destination; freight collect
in the amount of $3,200. Insurance for goods in transit is $800. What is the
delivered unit cost of the printers?
A. $250
B. $270
,C. $275
D. $255
$468,000 - Answer The procurement department purchased 150 all-in-one desktop computers at
a
delivered unit price of $3,000.00. The computers have an estimated useful life of 5
years and a residual value of $300.00. Maintenance and technical support on the
computers is $30.00 per computer per year. The purchasing department donated all
the computers to the local school district after 4 years of use. What is the total cost of
ownership?
A. $472,500
B. $450,000
C. $432,000
D. $468,000
Advise the supplier that they will be charged pursuant to the Liquidated Damages
clause in contract - Answer A contract is awarded for the supply and delivery of a self-contained
boiler unit which
is anticipated to save the entity approximately $52,000 per year on heating costs. It
was contracted to be installed by October 30, but the contract manager has been
notified that the unit has been delayed at the border due to incorrect paperwork.
The boiler is anticipated to arrive November 27 which is four weeks late. What is the best course
of action to take with the supplier?
A. Advise the supplier that they will be charged $1000 per week of the delay, equivalent to lost
savings
B. Advise the supplier that they will be charged pursuant to the Liquidated Damages clause in
contract
C. Cancel the contract and get another supplier to deliver another similar type of boiler found
locally
D. No action should be taken with the supplier, because they may get angry and delay further
,Advising management on market conditions - Answer Which of the following is the best example
of procurement's role in the strategic planning process?
A. Processing purchase orders in a timely manner
B. Advising management on market conditions
C. Shipping and receiving warehouse materials
D. The recruitment and hiring of qualified procurement staff
Analyze contract administration process - Answer A contract team has reviewed payments,
administrative issues, deliverables and
property for a service contract. What would be the next appropriate step in the close
out process?
A. Review contract administration phases
B. Revise contract reports
C. Analyze contract budget reports
D. Analyze contract administration process
Apparent authority - Answer Facilities Management Office of a public agency rented a sea
container from a
supplier for $600.00. The container was delivered after the business hours, and a
security officer on duty signed off on a delivery receipt and a Property Damage
Release at the request of the truck driver. 10 days after delivery of the container, the
supplier sent the invoice to the agency for payment. What type of authority did the
security officer assume?
A. Express authority
B. Implied authority
C. Apparent authority
D. Inherent authority
, Assign resources according to opportunities and risks - Answer Why do procurement organizations
undertake a strategic procurement planning
process?
A. Analyze the spending data related to past purchases
B. Assign resources according to opportunities and risks
C. Map the procurement process
D. Identify trends in the market place
Avoid unduly disrupting or delaying the procurement process - Answer In response to a protest a
governmental agency may grant a request in full or in part
for a hearing. If the governmental agency grants a request, it will usually hold a prehearing
conference to clarify procedural issues and substantive questions. What is
the purpose of this hearing?
A. Avoid unduly disrupting or delaying the procurement process
B. Create an atmosphere of trust between the bidder and governmental agency
C. Decrease the speed at which a protest takes place
D. Ensure the governmental agency can participate in a hearing
Begin the process of building documentation of the issues by issuing a Cure Notice - Answer A
procurement officer was asked by his entity to terminate a contract in the middle of its 5 year
contract term and re-solicit the service. The reasons given were legitimate contract deficiencies,
and failure to perform. After review of the contract file, the procurement officer determines that
this is the first documented issue with this contractor. When the procurement officer asks about
measures taken to remedy the contract performance concerns, the program manager stated that
she had several phone calls with the contractor's staff and she has not gotten the results they
promised in those phone calls. What should the procurement officer do?
a. Terminate the contract for failure to perform and send a letter to the surety of the contract
demanding performance bond
b. Set a meeting with the contractor to discuss the termination of the contract
c. Begin the process of building documentation of the issues by issuing a Cure Notice
d. Ask that the program manager set up a mediation date with the contractor
