CPPB PRACTICE TEST QUESTIONS
AND ANSWERS7
Legal and statutory requirements - ANSWERS-An agency is revising its document retention
schedule. To what should the governmental entity look for guidance?
Cooperative Contract - ANSWERS-An agency is looking into cooperative purchasing practices.
After conducting some analysis, the agency would like to "piggyback" its purchases with other
agencies that are participating in cooperative purchasing. When using a "piggyback" method,
what would the arrangement be called?
Instituting a purchase card program - ANSWERS-A governmental agency has a threshold for
small purchases of $1000 and three quotes are required above that figure. There has been a
steady increase int he number of field purchase orders, along with recent complaints from
internal customers about it taking too long to buy what they need. Which of the following
actions is most likely to have the biggest impact on reducing costs and saving time in the long
run?
a procurement profile - ANSWERS-Can be used to determine the impact of the expenditure
patterns within a supply market
Operating Fund/Capital Fund - ANSWERS-A governmental agency processed a purchase
requisition for the purchase of direct-read water meters. Which fund should a purchasing agent
check to confirm that the money was available for this purchase?
Notify the upper management and recommend a meeting with the group's leader to discuss
their concerns - ANSWERS-The governmental agency has recently acquired a piece of property
on which an old hotel of no notable historical significance sits. The city manager wants to
perform construction on the site. A local preservation group, however, has made some
overtures that they will oppose the governmental agency's plan to demolish the hotel. The city
, manger has asked the purchasing department to handle the preservation group's concerns.
How should the department proceed?
Establishing a combination of centralized and decentralized operations - ANSWERS-In today's
economic and political environments, what is the MOST effective structure for governmental
purchasing agencies.
Remind the requester of the code restrictions on fragmenting orders - ANSWERS-A
governmental agency has a non-competition threshold that says any purchase below $5,000
does not require competition. Over a three month period a requesting user has asked a 3
separate occasions to directly purchase without competition, products needed by the agency.
On each occasion the value of the purchase was approximately $4,500. What should the buyer
do?
Market analysis - ANSWERS-A buyer is charged with purchasing diesel fuel for the transit
system. What type of study should be conducted to determine how best to make this purchase?
Determine if the item is available in surplus stock - ANSWERS-Upon receipt a Purchase
Requisition for a small buy commodity, the first step the buyer would normally take would be
to:
Plan the change in detail so that it can be implemented in a 30-day period - ANSWERS-The
government agency is changing its performance measures from primarily cost related measures
to value-added benefits. To implement this change, the agency would want to consider all of the
following steps EXCEPT?
Cost Analysis - ANSWERS-A buyer is asked to conduct a review and evaluation of cost data in
order to determine actual costs or estimates of costs to be incurred. This process is known as:
Call the recommended vendor for prices - ANSWERS-A governmental agency has issued a
purchase requisition to to acquire software for its finance department. Immediately upon
receiving the requisition, the buyer should do all the following EXCEPT which task?
AND ANSWERS7
Legal and statutory requirements - ANSWERS-An agency is revising its document retention
schedule. To what should the governmental entity look for guidance?
Cooperative Contract - ANSWERS-An agency is looking into cooperative purchasing practices.
After conducting some analysis, the agency would like to "piggyback" its purchases with other
agencies that are participating in cooperative purchasing. When using a "piggyback" method,
what would the arrangement be called?
Instituting a purchase card program - ANSWERS-A governmental agency has a threshold for
small purchases of $1000 and three quotes are required above that figure. There has been a
steady increase int he number of field purchase orders, along with recent complaints from
internal customers about it taking too long to buy what they need. Which of the following
actions is most likely to have the biggest impact on reducing costs and saving time in the long
run?
a procurement profile - ANSWERS-Can be used to determine the impact of the expenditure
patterns within a supply market
Operating Fund/Capital Fund - ANSWERS-A governmental agency processed a purchase
requisition for the purchase of direct-read water meters. Which fund should a purchasing agent
check to confirm that the money was available for this purchase?
Notify the upper management and recommend a meeting with the group's leader to discuss
their concerns - ANSWERS-The governmental agency has recently acquired a piece of property
on which an old hotel of no notable historical significance sits. The city manager wants to
perform construction on the site. A local preservation group, however, has made some
overtures that they will oppose the governmental agency's plan to demolish the hotel. The city
, manger has asked the purchasing department to handle the preservation group's concerns.
How should the department proceed?
Establishing a combination of centralized and decentralized operations - ANSWERS-In today's
economic and political environments, what is the MOST effective structure for governmental
purchasing agencies.
Remind the requester of the code restrictions on fragmenting orders - ANSWERS-A
governmental agency has a non-competition threshold that says any purchase below $5,000
does not require competition. Over a three month period a requesting user has asked a 3
separate occasions to directly purchase without competition, products needed by the agency.
On each occasion the value of the purchase was approximately $4,500. What should the buyer
do?
Market analysis - ANSWERS-A buyer is charged with purchasing diesel fuel for the transit
system. What type of study should be conducted to determine how best to make this purchase?
Determine if the item is available in surplus stock - ANSWERS-Upon receipt a Purchase
Requisition for a small buy commodity, the first step the buyer would normally take would be
to:
Plan the change in detail so that it can be implemented in a 30-day period - ANSWERS-The
government agency is changing its performance measures from primarily cost related measures
to value-added benefits. To implement this change, the agency would want to consider all of the
following steps EXCEPT?
Cost Analysis - ANSWERS-A buyer is asked to conduct a review and evaluation of cost data in
order to determine actual costs or estimates of costs to be incurred. This process is known as:
Call the recommended vendor for prices - ANSWERS-A governmental agency has issued a
purchase requisition to to acquire software for its finance department. Immediately upon
receiving the requisition, the buyer should do all the following EXCEPT which task?
