CPPB EXAM PREP QUESTIONS AND
ANSWERS
Cost Plus Percentage of Cost Contracts - Answer An agreement on a building
project in which the contractor receives a certain percentage profit over and
above the actual construction expenses. These contracts are considered poor
business practices because the contractor has little incentive to keep costs down.
Federal purchasing prohibits this costing strategy.
Procurement - ANSWER This includes purchasing, contract administration,
inventory, receiving, and disposal.
Integrity - ANSWER The significance of one's words and conduct.
Competition - ANSWER Provides an incentive to cut costs while increasing
quality.
Laws - Answer Define and control what public agencies can do.
American Bar Association - ANSWER
ABL = ANSWER Approved Brands List; also Approved Products List [APL].
ABA Model Procurement Code for State and Local Government (US Law) -
Answer The ABA developed and accepted it in 1979, and it is a collection of
legislative principles and regulations that guide public policy managers who
want to manage public procurement properly. Stat and big municipal
governments have each formalized it into procurement legislation and policy to
effectively lead their procurement departments. The code was amended in 2000,
with improvements in the following areas: electronic commerce, cooperative
ANSWERS
Cost Plus Percentage of Cost Contracts - Answer An agreement on a building
project in which the contractor receives a certain percentage profit over and
above the actual construction expenses. These contracts are considered poor
business practices because the contractor has little incentive to keep costs down.
Federal purchasing prohibits this costing strategy.
Procurement - ANSWER This includes purchasing, contract administration,
inventory, receiving, and disposal.
Integrity - ANSWER The significance of one's words and conduct.
Competition - ANSWER Provides an incentive to cut costs while increasing
quality.
Laws - Answer Define and control what public agencies can do.
American Bar Association - ANSWER
ABL = ANSWER Approved Brands List; also Approved Products List [APL].
ABA Model Procurement Code for State and Local Government (US Law) -
Answer The ABA developed and accepted it in 1979, and it is a collection of
legislative principles and regulations that guide public policy managers who
want to manage public procurement properly. Stat and big municipal
governments have each formalized it into procurement legislation and policy to
effectively lead their procurement departments. The code was amended in 2000,
with improvements in the following areas: electronic commerce, cooperative
