CPPO EXAMS SET COMPILATION BUNDLE
2026 QUESTIONS WITH COMPLETE
SOLUTIONS GRADED A+
⩥Monopoly.
Answer: • A situation where there is one seller and many procurement
officers of a product that has no close substitution and the seller has
considerable control over price because of lack of competition.
• The exclusive right to carry on a particular activity.
⩥Budget Cycle in Public Procurement.
Answer: • Planning
• Formalization
• Implementation
• Evaluation
⩥Seller Pricing strategies.
Answer: • Cost based pricing-margin of profit is added to reasonable
labor, material and overhead costs
• Market-based pricing- when pricing is contingent on the customers
current demand and willingness of the competitors to supply similar
products
,• Value-based pricing-based on perceived or actual value that the po will
receive.
• Market-oriented pricing-where prices are defined according to the
range of the quality of the product or service provided by the supplier.
⩥Evaluation Strategies.
Answer: • Price analysis
• Cost analysis
• Life Cycle Costing
⩥Types of specs.
Answer: • Design
• Performance
• Combination-design and performance
• Brand name or approved equal
• Qualified Products List QPL and samples
⩥FOB Destination.
Answer: passes material from the seller to the buyer when the carrier
delivers the materials to the buyer.
⩥FOB-Point of destination.
,Answer: the buyer takes title when the carrier accepts the materials for
shipment at the seller's place of business.
⩥FOB Point of Origin-Freight allowed.
Answer: similar to FOB POD so far as legal liability is concerned,
however the shipper agrees to reimburse the buyer for freight charges.
⩥supply-positioning matrix.
Answer: small purchases represent 20% of the dollars and 80% of the
work volume.
⩥Breach of contract.
Answer: A contract is breached when a party to it is supposed to perform
immediately under the contract terms but does not. The effect of the
breach is to give the other party a legal basis to pursue monetary
damages or other remedies. If a breach is major, all legal remedies,
including cancellation of the contract van be applied. If the breach is
minor, more limited remedies are available and the contract may not be
cancelled. A trivial or minor breach would be a late shipment, minor
damage or a non-critical shortage in quantity.
⩥Ethics.
Answer: a principle of right or good conduct. A system of moral
principles or values.
, ⩥Ethical.
Answer: in accordance with the accepted principles of right and wrong
that govern the conduct of a profession.
⩥Administrative processes in Procurement Process:.
Answer: • Equity: provides fair access to bidders in competing for
government business. At the heart of the need for equity is the process of
fair and open competition. Competition lowers prices and supports the
goals of economy.
• Integrity: to reduce the chance of corruption in the procurement
process and maintain public confidence in the objectivity and fairness in
awarding public contracts.
• Efficiency: to procure goods or services of the quality desired at the
lowest possible price.
⩥Goals and objectives in public sourcing include:.
Answer: • Economy
• Transparency
• Delegation of authority
• Law of agency
• Non-Discrimination
• Accountability
• Promotion of domestic industry
• Foster socio-economic objectives
2026 QUESTIONS WITH COMPLETE
SOLUTIONS GRADED A+
⩥Monopoly.
Answer: • A situation where there is one seller and many procurement
officers of a product that has no close substitution and the seller has
considerable control over price because of lack of competition.
• The exclusive right to carry on a particular activity.
⩥Budget Cycle in Public Procurement.
Answer: • Planning
• Formalization
• Implementation
• Evaluation
⩥Seller Pricing strategies.
Answer: • Cost based pricing-margin of profit is added to reasonable
labor, material and overhead costs
• Market-based pricing- when pricing is contingent on the customers
current demand and willingness of the competitors to supply similar
products
,• Value-based pricing-based on perceived or actual value that the po will
receive.
• Market-oriented pricing-where prices are defined according to the
range of the quality of the product or service provided by the supplier.
⩥Evaluation Strategies.
Answer: • Price analysis
• Cost analysis
• Life Cycle Costing
⩥Types of specs.
Answer: • Design
• Performance
• Combination-design and performance
• Brand name or approved equal
• Qualified Products List QPL and samples
⩥FOB Destination.
Answer: passes material from the seller to the buyer when the carrier
delivers the materials to the buyer.
⩥FOB-Point of destination.
,Answer: the buyer takes title when the carrier accepts the materials for
shipment at the seller's place of business.
⩥FOB Point of Origin-Freight allowed.
Answer: similar to FOB POD so far as legal liability is concerned,
however the shipper agrees to reimburse the buyer for freight charges.
⩥supply-positioning matrix.
Answer: small purchases represent 20% of the dollars and 80% of the
work volume.
⩥Breach of contract.
Answer: A contract is breached when a party to it is supposed to perform
immediately under the contract terms but does not. The effect of the
breach is to give the other party a legal basis to pursue monetary
damages or other remedies. If a breach is major, all legal remedies,
including cancellation of the contract van be applied. If the breach is
minor, more limited remedies are available and the contract may not be
cancelled. A trivial or minor breach would be a late shipment, minor
damage or a non-critical shortage in quantity.
⩥Ethics.
Answer: a principle of right or good conduct. A system of moral
principles or values.
, ⩥Ethical.
Answer: in accordance with the accepted principles of right and wrong
that govern the conduct of a profession.
⩥Administrative processes in Procurement Process:.
Answer: • Equity: provides fair access to bidders in competing for
government business. At the heart of the need for equity is the process of
fair and open competition. Competition lowers prices and supports the
goals of economy.
• Integrity: to reduce the chance of corruption in the procurement
process and maintain public confidence in the objectivity and fairness in
awarding public contracts.
• Efficiency: to procure goods or services of the quality desired at the
lowest possible price.
⩥Goals and objectives in public sourcing include:.
Answer: • Economy
• Transparency
• Delegation of authority
• Law of agency
• Non-Discrimination
• Accountability
• Promotion of domestic industry
• Foster socio-economic objectives
