2025/2026 UPDATE | WITH COMPLETE SOLUTION
A buyer wants to spot buy propane. Which analysis process should be used to
determine when to buy?
a. Demand
b. Supply
c. Performance
d. Market Answer - Market
Forecasts are never completely accurate. Which calculation demonstrates the
degree of accuracy?
a. Weighted moving average
b. Absolute value of errors
c. Mean Absolute Deviation
d. Economic Order Quantity Answer - Mean Absolute Deviation
An entity located on the Gulf of Mexico is developing their continuity of
operations plan. Which of the following is most important for the Procurement
Services Department to consider?
a. Assembly of emergency rations, including potable water, for use in the EOC
b. Determining the GPS coordinates for all of the County warehouses
c. Developing an emergency purchasing card program
,d. Developing alternate procurement operations locations Answer -
Developing alternate procurement operations locations
In order for the entity Procurement Services' Continuity of Operations Plan
(COOP) to be effective, it must be in accordance with which of the following?
a. The entity Procurement Procedures
b. The entity Emergency Support Functional Plan
c. The entity Emergency Operations Plan
d. The entity Manager's Emergency Directive Answer - Emergency Operations
Plan
The strategic planning team has identified its stakeholders and conducted a
SWOT analysis. What is its next step in creating a strategic plan?
a. Establish performance measures
b. Draft a mission statement
c. Identify strategies to achieve goals and objectives
d. Monitor progress and gather data Answer - Draft a mission statement
An entity is planning to allocate staff based on the time and effort required for
its various procurements. Which analysis approach will support this strategy?
a. The Pareto principle
b. Inventory forecasting
c. Projecting expenditures
d. Supply positioning Answer - Supply positioning
A school district wants to determine how many reams of printer paper to carry
in inventory. Accurate monthly records of paper purchases exist for the past
108 months. Which forecasting method should be used for the school district?
,a. Fixed period
b. Weighted moving average
c. Moving average
d. Trend estimation Answer - Weighted moving average
The plan describes an objective in detail, specifies the outcome, when it should
be finished and who is responsible. Which objective attribute is missing?
a. Realistic
b. Assignable
c. Measurable
d. Time-related Answer - Realistic
The entity is trying to determine whether to use solar generated lighting or go
with LED lighting for the outdoor lighting in its new central services building.
What tool should be used to advise this decision?
a. Cost analysis
b. Value analysis
c. Spend analysis
d. Cost/benefit analysis Answer - Cost/benefit analysis
What calculation Is used to determine the most cost effective quantity of an
Item to keep In stock?
a. Inventory carrying cost
b. Economic order quantity
c. Acquisition cost per order
d. Average inventory value Answer - Economic order quantity
, The entity is replacing its computer equipment due to new technology. The
equipment to be replaced is four years old. While it still has a useful life, new
upgrades to current programs cannot run on the current computers. Which
term best describes this equipment?
a. Fully depreciated
b. Surplus
c. Obsolete
d. Disposable Answer - Obsolete
Procurement has received word that the entity needs an item much sooner
than thought. The order has already been placed. What action should be
taken?
a. Expedite
b. Follow-up
c. Reorder
d. Improved routing Answer - Expedite
If the procurement department wanted to reduce inventory costs, it would be
best for them to consider which of the following options?
a. Reducing inventory and giving less service/support to the end user
b. Having the end user procure the goods
c. Waiting until the need arises, order the goods and wait until they arrive
d. Contracting for just-in-time delivery Answer - Contracting for just-in-time
delivery
Which of the following best describes the "C" classification of ABC valued
inventory items?
a. Capital equipment
b. Important items for organization operation