CPPO EXAM AND PRACTICE EXAM 2023- 2024 ACTUAL EXAM ALL 100 QUESTIONS AND CORRECT
DETAILED ANSWERS
7 Rights of Purchasing - (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 - (answer) Enduring beliefs or ideals shared by public procurement about what is good or
desirable and what is not in our actions.
Goals - (answer) Long-term, tangible, attainable targets for an organization
Policies - (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 - (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: - (answer) Vision, mission, goals, objectives, strategies, performance measures
and evaluation
Vision - (answer) Identifies where the organization wants to be in the future
Mission - (answer) Identifies why it exists, what it is and how it contributes to the local community.
Goals - (answer) Identifies what the organization is intending to accomplish and proposes the general
end towards which an organization directs its efforts.
Objectives - (answer) Highly defined targets that require specific action with a shorter time frame.
Strategies - (answer) Identified methods to achieve specific goals and are used to carry out objectives.
Long range plans
,CPPO EXAM AND PRACTICE EXAM 2023- 2024 ACTUAL EXAM ALL 100 QUESTIONS AND CORRECT
DETAILED ANSWERS
Performance Measures - (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 - (answer) Monitoring the end results
Objectives should be: - (answer) SMART-Specific, measurable, assignable, realistic and time based.
Types of performance measures - (answer) Demand, workload, efficiency and effectiveness
Demand - (answer) A measure that assesses the severity of a problem or the scope of work to be
performed.
Workload - (answer) A measure that indicates the amount of work which must be performed to
accomplish a specific task.
Efficiency - (answer) A measure that compares resources used with results obtained.
Effectiveness - (answer) A measure that determines how well a program or activity meets an objective
or fulfills a need.
Value-added benefits* - (answer) Takes into consideration quality, cost, service, TCO (total cost of
ownership) and continuity of supply.
Policy Manual - (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 - (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.
,CPPO EXAM AND PRACTICE EXAM 2023- 2024 ACTUAL EXAM ALL 100 QUESTIONS AND CORRECT
DETAILED ANSWERS
Regulations - (answer) Statements by a governing body to implement, interpret or prescribe law or
policy.
Automated procurement management information systems - (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) - (answer) Business process software systems that
manage multiple management systems such as finance, accounting, human resources, purchasing, and
inventory.
Retention Schedule for documents* - (answer) Must save the following: "HAL" Historical,
Administrative and Legal
Cooperative Purchasing - (answer) Two or more agencies combining their requirements to obtain
advantages of volume purchasing including administrative savings.
Benefits of Cooperative purchasing - (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 - (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 - (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 - (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.
, CPPO EXAM AND PRACTICE EXAM 2023- 2024 ACTUAL EXAM ALL 100 QUESTIONS AND CORRECT
DETAILED ANSWERS
How to measure procurement performance - (answer) Effectiveness, efficiency, projections and
customer service
Effectiveness - (answer) How long it takes to process a request for procurement.
Efficiency - (answer) Defined as the ratio between inputs and outputs.
Projections - (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? - (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: - (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: -
(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. - (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
decided to cancel the contract. Which of the following methods best addresses this action? - (answer)
Termination for convenience
DETAILED ANSWERS
7 Rights of Purchasing - (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 - (answer) Enduring beliefs or ideals shared by public procurement about what is good or
desirable and what is not in our actions.
Goals - (answer) Long-term, tangible, attainable targets for an organization
Policies - (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 - (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: - (answer) Vision, mission, goals, objectives, strategies, performance measures
and evaluation
Vision - (answer) Identifies where the organization wants to be in the future
Mission - (answer) Identifies why it exists, what it is and how it contributes to the local community.
Goals - (answer) Identifies what the organization is intending to accomplish and proposes the general
end towards which an organization directs its efforts.
Objectives - (answer) Highly defined targets that require specific action with a shorter time frame.
Strategies - (answer) Identified methods to achieve specific goals and are used to carry out objectives.
Long range plans
,CPPO EXAM AND PRACTICE EXAM 2023- 2024 ACTUAL EXAM ALL 100 QUESTIONS AND CORRECT
DETAILED ANSWERS
Performance Measures - (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 - (answer) Monitoring the end results
Objectives should be: - (answer) SMART-Specific, measurable, assignable, realistic and time based.
Types of performance measures - (answer) Demand, workload, efficiency and effectiveness
Demand - (answer) A measure that assesses the severity of a problem or the scope of work to be
performed.
Workload - (answer) A measure that indicates the amount of work which must be performed to
accomplish a specific task.
Efficiency - (answer) A measure that compares resources used with results obtained.
Effectiveness - (answer) A measure that determines how well a program or activity meets an objective
or fulfills a need.
Value-added benefits* - (answer) Takes into consideration quality, cost, service, TCO (total cost of
ownership) and continuity of supply.
Policy Manual - (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 - (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.
,CPPO EXAM AND PRACTICE EXAM 2023- 2024 ACTUAL EXAM ALL 100 QUESTIONS AND CORRECT
DETAILED ANSWERS
Regulations - (answer) Statements by a governing body to implement, interpret or prescribe law or
policy.
Automated procurement management information systems - (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) - (answer) Business process software systems that
manage multiple management systems such as finance, accounting, human resources, purchasing, and
inventory.
Retention Schedule for documents* - (answer) Must save the following: "HAL" Historical,
Administrative and Legal
Cooperative Purchasing - (answer) Two or more agencies combining their requirements to obtain
advantages of volume purchasing including administrative savings.
Benefits of Cooperative purchasing - (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 - (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 - (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 - (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.
, CPPO EXAM AND PRACTICE EXAM 2023- 2024 ACTUAL EXAM ALL 100 QUESTIONS AND CORRECT
DETAILED ANSWERS
How to measure procurement performance - (answer) Effectiveness, efficiency, projections and
customer service
Effectiveness - (answer) How long it takes to process a request for procurement.
Efficiency - (answer) Defined as the ratio between inputs and outputs.
Projections - (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? - (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: - (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: -
(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. - (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
decided to cancel the contract. Which of the following methods best addresses this action? - (answer)
Termination for convenience
