CPPB Prep Course - Practice Test Questions With
Correct Answers
The |purchasing |officer |of |the |governmental |agency |has |expressed |serious |concerns |about |the |
number |of |repetitive |requisitions, |solicitations |and |POs |that |are |being |processed |to |purchase |
gasoline |for |the |organization. |Every |time |a |new |order |is |placed, |another |requisition |is |created |
and |the |prices |paid |by |each |dept. |are |not |consistent; |sometimes |more |and |sometimes |less |
depending |on |competition |and |timing. |The |buyer |advises |that |the |solution |would |be |to |use |
what |type |of |contract? |- |CORRECT |ANSWER✔✔-FIXED-PRICE |WITH |ESCALATION/DE-
ESCALATION
A |Govt |agency |with |a |centralized |purchasing |dept. |has |a |threshold |for |small |purchases |of |
$1000 |and |three |quotes |are |required |above |that |figure. |There |has |been |a |steady |increase |in |
the |number |of |requisitions |along |with |recent |complaints |from |internal |customers |about |it |
taking |too |long |to |buy |what |they |need. |Which |of |the |following |action |is |most |likely |to |have |
the |biggest |impact |on |reducing |costs |and |saving |time |in |the |long |run? |- |CORRECT |
ANSWER✔✔-INSTITUTING |A |PURCHASING |CARD |PROGRAM
A |Govt |agency |has |been |having |problems |with |a |supplier's |performance |and |may |terminate |
their |contract |with |the |supplier. |Which |of |the |following |would |be |the |best |first |step |in |
addressing |the |issue |with |the |supplier? |- |CORRECT |ANSWER✔✔-ADDRESS |W/ |ON-SITE |
SUPVSR/CONTRACTOR
An |agency |uses |a |budget |in |which |appropriations |are |approved |for |different |classes |of |
expenditures. |Each |class |is |broken |into |subclasses |against |which |funding |for |svcs |and |
commodities |can |be |applied. |This |budget |approach |maximizes |control |& |ensures |financial |
accountability. |What |type |of |budget |is |this? |- |CORRECT |ANSWER✔✔-LINE |ITEM |BUDGET
The |procurement |dept. |is |considering |the |acquisition |of |10 |high |volume |multi-function |
printers |at |a |unit |cost |of |$20,000. |The |printers |have |an |estimated |useful |life |of |8 |yrs |and |
require |the |following |annual |costs |per |printer: |Consumable |Supplies |$350; |Electricity |$150; |
, and |Maintenance |$350. |What |is |the |total |cost |of |ownership |of |the |printers? |A) |$264,000, |B) |
$268,000, |C) |$256,000, |D) |$260,000 |- |CORRECT |ANSWER✔✔-B) |$268,000
The |supplier |of |a |performance |based |contract |that |has |a |initial |3 |yr |term |w/ |two |one-yr |
extensions |upon |satisfactory |performance, |has |failed |to |perform |in |accordance |w/ |specified |
delivery |schedules. |They |also |do |not |respond |to |quality |issues |in |a |timely |manner. |The |
supplier |has |not |been |given |formal |notice |of |the |problems. |The |internal |user |does |not |want |
the |contract |extended |for |the |remaining |two |one-yr |periods, |and |wants |to |terminate |the |
contract |immediately |for |cause. |What |should |the |contract |administrator |do? |- |CORRECT |
ANSWER✔✔-USE |THE |"CURE |NOTICE" |PROCEDURES |AND |GIVE |NOTICE |OF |THE |FAILURES |TO |
THE |SUPPLIER
The |members |of |the |team |are |getting |to |know |one |another |and |learning |about |the |knowledge
|and |skills |that |each |brings |to |the |team. |At |what |phase |of |development |is |this |team? |A) |
Performing, |B) |Norming, |C) |Storming, |D) |Forming |- |CORRECT |ANSWER✔✔-D) |FORMING
A |supplier |has |completed |the |work |identified |in |the |specifications, |but |the |govt |agency |has |
determined |that |addtl |work |is |required |to |complete |the |project. |What |should |the |buyer |do |to |
get |this |work |done? |A) |Inspect |and |reject |the |work, |B) |Issue |a |change |order |under |the |existing
|contract, |C) |Let |the |contractor |perform |the |additional |work |and |then |determine |a |fair |& |
reasonable |price |for |that |work, |D) |Withhold |final |acceptance |of |the |project |until |the |supplier |
completes |the |additional |work. |- |CORRECT |ANSWER✔✔-B) |ISSUE |A |CHANGE |ORDER |UNDER |
THE |EXISTING |CONTRACT
A |procurement |dept |is |diligent |to |ensure |that |a |solicitation |does |not |have |to |be |cancelled |and |
re-completed. |This |activity |achieves |what |organizational |goal? |A) |Value |Analysis, |B) |Cost |
Reduction, |C) |Efficiency, |D) |Cost |Avoidance |- |CORRECT |ANSWER✔✔-D) |COST |AVOIDANCE
Which |of |the |following |is |a |benefit |of |an |automated |procurement |system? |A) |Reduces |
communication |entering |the |system |from |outside |of |the |organization, |B) |Prevents |incorrect |
information |being |shared |among |stakeholders, |C) |Provides |a |common |repository |for |data, |D) |
Ensures |purchasing |controls |all |information |and |decisions. |- |CORRECT |ANSWER✔✔-C) |
PROVIDES |A |COMMON |REPOSITORY |FOR |DATA
Correct Answers
The |purchasing |officer |of |the |governmental |agency |has |expressed |serious |concerns |about |the |
number |of |repetitive |requisitions, |solicitations |and |POs |that |are |being |processed |to |purchase |
gasoline |for |the |organization. |Every |time |a |new |order |is |placed, |another |requisition |is |created |
and |the |prices |paid |by |each |dept. |are |not |consistent; |sometimes |more |and |sometimes |less |
depending |on |competition |and |timing. |The |buyer |advises |that |the |solution |would |be |to |use |
what |type |of |contract? |- |CORRECT |ANSWER✔✔-FIXED-PRICE |WITH |ESCALATION/DE-
ESCALATION
A |Govt |agency |with |a |centralized |purchasing |dept. |has |a |threshold |for |small |purchases |of |
$1000 |and |three |quotes |are |required |above |that |figure. |There |has |been |a |steady |increase |in |
the |number |of |requisitions |along |with |recent |complaints |from |internal |customers |about |it |
taking |too |long |to |buy |what |they |need. |Which |of |the |following |action |is |most |likely |to |have |
the |biggest |impact |on |reducing |costs |and |saving |time |in |the |long |run? |- |CORRECT |
ANSWER✔✔-INSTITUTING |A |PURCHASING |CARD |PROGRAM
A |Govt |agency |has |been |having |problems |with |a |supplier's |performance |and |may |terminate |
their |contract |with |the |supplier. |Which |of |the |following |would |be |the |best |first |step |in |
addressing |the |issue |with |the |supplier? |- |CORRECT |ANSWER✔✔-ADDRESS |W/ |ON-SITE |
SUPVSR/CONTRACTOR
An |agency |uses |a |budget |in |which |appropriations |are |approved |for |different |classes |of |
expenditures. |Each |class |is |broken |into |subclasses |against |which |funding |for |svcs |and |
commodities |can |be |applied. |This |budget |approach |maximizes |control |& |ensures |financial |
accountability. |What |type |of |budget |is |this? |- |CORRECT |ANSWER✔✔-LINE |ITEM |BUDGET
The |procurement |dept. |is |considering |the |acquisition |of |10 |high |volume |multi-function |
printers |at |a |unit |cost |of |$20,000. |The |printers |have |an |estimated |useful |life |of |8 |yrs |and |
require |the |following |annual |costs |per |printer: |Consumable |Supplies |$350; |Electricity |$150; |
, and |Maintenance |$350. |What |is |the |total |cost |of |ownership |of |the |printers? |A) |$264,000, |B) |
$268,000, |C) |$256,000, |D) |$260,000 |- |CORRECT |ANSWER✔✔-B) |$268,000
The |supplier |of |a |performance |based |contract |that |has |a |initial |3 |yr |term |w/ |two |one-yr |
extensions |upon |satisfactory |performance, |has |failed |to |perform |in |accordance |w/ |specified |
delivery |schedules. |They |also |do |not |respond |to |quality |issues |in |a |timely |manner. |The |
supplier |has |not |been |given |formal |notice |of |the |problems. |The |internal |user |does |not |want |
the |contract |extended |for |the |remaining |two |one-yr |periods, |and |wants |to |terminate |the |
contract |immediately |for |cause. |What |should |the |contract |administrator |do? |- |CORRECT |
ANSWER✔✔-USE |THE |"CURE |NOTICE" |PROCEDURES |AND |GIVE |NOTICE |OF |THE |FAILURES |TO |
THE |SUPPLIER
The |members |of |the |team |are |getting |to |know |one |another |and |learning |about |the |knowledge
|and |skills |that |each |brings |to |the |team. |At |what |phase |of |development |is |this |team? |A) |
Performing, |B) |Norming, |C) |Storming, |D) |Forming |- |CORRECT |ANSWER✔✔-D) |FORMING
A |supplier |has |completed |the |work |identified |in |the |specifications, |but |the |govt |agency |has |
determined |that |addtl |work |is |required |to |complete |the |project. |What |should |the |buyer |do |to |
get |this |work |done? |A) |Inspect |and |reject |the |work, |B) |Issue |a |change |order |under |the |existing
|contract, |C) |Let |the |contractor |perform |the |additional |work |and |then |determine |a |fair |& |
reasonable |price |for |that |work, |D) |Withhold |final |acceptance |of |the |project |until |the |supplier |
completes |the |additional |work. |- |CORRECT |ANSWER✔✔-B) |ISSUE |A |CHANGE |ORDER |UNDER |
THE |EXISTING |CONTRACT
A |procurement |dept |is |diligent |to |ensure |that |a |solicitation |does |not |have |to |be |cancelled |and |
re-completed. |This |activity |achieves |what |organizational |goal? |A) |Value |Analysis, |B) |Cost |
Reduction, |C) |Efficiency, |D) |Cost |Avoidance |- |CORRECT |ANSWER✔✔-D) |COST |AVOIDANCE
Which |of |the |following |is |a |benefit |of |an |automated |procurement |system? |A) |Reduces |
communication |entering |the |system |from |outside |of |the |organization, |B) |Prevents |incorrect |
information |being |shared |among |stakeholders, |C) |Provides |a |common |repository |for |data, |D) |
Ensures |purchasing |controls |all |information |and |decisions. |- |CORRECT |ANSWER✔✔-C) |
PROVIDES |A |COMMON |REPOSITORY |FOR |DATA
