CPCM LATEST 2026 EXAMINATION SET QUESTIONS AND
ANSWERS GRADED A+
✔✔Quality control (QC) - ✔✔The seller's process of measuring quality performance,
comparing it with the standard, and acting on the difference.
✔✔Solvency or Liquidity ratio - ✔✔A ratio measuring the company's ability to meets its
current and long-term obligations; also called liquidity ratio
✔✔Statistical process control - ✔✔An operations management tool that looks at
identifying and preventing quality problems
✔✔Strategic planning - ✔✔Looks at long-term goals and objectives, typically based on
the organization's mission statement
✔✔Supply - ✔✔Indicates how sellers behave in the marketplace; the quantity supplied
is what is available to be bought at a particular price
✔✔Supply chain - ✔✔All the tasks associated with taking raw materials and
transforming them into the final product to deliver to the customer
✔✔Supply chain management - ✔✔A process of integrating goods, services, and
information to meet the customer's needs; involves managing the activities to produce
and deliver a product or service from suppliers and their vendors to the customer
✔✔Tactical planning - ✔✔Focuses on short-term goals and involves evaluating
economic and environmental issues to meet the strategic plan's goals
✔✔Tangible assets - ✔✔Assets whose values comes from their physical substance,
such as land, buildings, and equipment
✔✔Time-phased budget - ✔✔A "road map" estimating how much funding a contract will
require over time
✔✔Work breakdown structure - ✔✔A top-down, hierarchical or tree-structured
description of the work to be accomplished as viewed from the standpoint of outputs or
products
✔✔Work package - ✔✔A group of related tasks within a project; the smallest unit of
work that a project can be broken down to when creating the Work Breakdown Structure
✔✔Opportunity and Risk Management (ORM) Six-Step Model - ✔✔1. Identify O&Rs, 2.
Analyze O&Rs, 3. Prioritize O&Rs, 4. Develop O&Rs action plan, 5. Implement O&Rs
action plans, 6. Evaluate project results
,✔✔Acceptance criteria - ✔✔Those criteria, usually stated in a contract and/or SOW that
includes deliverables, performance requirements and essential conditions, which must
be met to complete project deliverables and be accepted
✔✔Detailed contract analysis - ✔✔A document listing the contractual obligations and
requirements for the seller as well as for the buyer; the list contains the information
extracted and provided in the form of a contract calendar which listed as every "seller
will or shall" and its due date (if known) down to the task level
✔✔Change control - ✔✔The process of controlling, documenting, and storing the
changes to control items; includes proposing the change, evaluating, approving or
rejecting, scheduling and tracking
✔✔Change Control Board (CCB) - ✔✔A formally constituted group of stakeholders
responsible for approving or rejecting changes to the project baselines
✔✔Charter - ✔✔A document issued by the initiator of the project, usually the project
sponsor that formally authorizes the existence of the project, and provides the project
manager with the authority to apply organizational resources to project activities
✔✔Earned value - ✔✔A method for measuring project performance that compares the
amount of work that was planned with what was actually accomplished to determine if
cost and schedule performance went as planned
✔✔Inventory control - ✔✔The management of inventories, including: decisions about
which items to stock at each location; how much stock to keep on hand at various levels
of operation; when to buy; how much to buy; controlling pilferage and damage; and
managing shortages and back orders.
✔✔Kraljic Matrix - ✔✔A tool for portfolio analysis: a four-box matrix that reflects the
segmentation of spend based on an assessment of the value of the spend relative to
the market risk to acquire
✔✔Logistics - ✔✔The process of planning, implementing and controlling the efficient,
cost-effective flow and storage of raw materials, in-process inventory, finished goods
and related information from point of origin to point of consumption for the purpose of
conforming to customer requirements
✔✔Manufacturing - ✔✔Planning, managing and performing the processing of materials
into intermediate or final products, usually in large quantities
✔✔Materials management - ✔✔Involves the planning, acquisition, flow and distribution
of production materials from the raw state to the finished product state
, ✔✔Pareto analysis - ✔✔Analysis (also known as ABC analysis or 80:20 rule) which can
be used to categorize purchases according to dollar value; for example, 20 percent of
the total number of items bought may account for 80 percent of the total value of the
purchasing
✔✔Portfolio - ✔✔Includes all of the programs and projects in an organization; may be
for the organization as a whole, or for individual lines of business
✔✔Product development - ✔✔A series of integrated processes in new product
development chronicling steps from idea conception to commercialization
✔✔Program - ✔✔A group of projects and subprojects that are interdependent for the
program's success, which happen in parallel, or in different stages, phases, or
sequences
✔✔Project - ✔✔A unique endeavor undertaken to produce a product, service, or an
organizational change; projects are one-time occurrences that have a defined start and
finish point
✔✔Receiving - ✔✔The business function that is responsible for verifying that the goods
received are the goods that the organization ordered; involves inspecting and accepting
incoming shipments
✔✔Risk - ✔✔The measure of the probability of an unwanted change occurring and the
associated effect of that event; consists of three components: a risk event (an unwanted
change), the probability of occurrence (uncertainty), and the significance of the impact
(the amount at stake)
✔✔Spend analysis - ✔✔Analysis of the historical spending patterns in an organization,
usually by commodity or category
✔✔Sponsor - ✔✔The individual or group that provides the financial resources, in cash
or in kind, for the project
✔✔Strategic sourcing - ✔✔The selection and management of suppliers with a focus on
achieving the long-term goals of a business
✔✔Supply Chain Operations Reference (SCOR) - ✔✔A model which shows the supply
chain operation as three basic functions: "Source," "Make," and "Deliver;" using this
model, these three basic functions of a company's organization are linked to both the
customer's organization and the company's suppliers
✔✔Supply management - ✔✔The identification, acquisition, access, positioning and
management of resources and related capabilities the organization needs or potentially
needs in the attainment of its strategic objectives
ANSWERS GRADED A+
✔✔Quality control (QC) - ✔✔The seller's process of measuring quality performance,
comparing it with the standard, and acting on the difference.
✔✔Solvency or Liquidity ratio - ✔✔A ratio measuring the company's ability to meets its
current and long-term obligations; also called liquidity ratio
✔✔Statistical process control - ✔✔An operations management tool that looks at
identifying and preventing quality problems
✔✔Strategic planning - ✔✔Looks at long-term goals and objectives, typically based on
the organization's mission statement
✔✔Supply - ✔✔Indicates how sellers behave in the marketplace; the quantity supplied
is what is available to be bought at a particular price
✔✔Supply chain - ✔✔All the tasks associated with taking raw materials and
transforming them into the final product to deliver to the customer
✔✔Supply chain management - ✔✔A process of integrating goods, services, and
information to meet the customer's needs; involves managing the activities to produce
and deliver a product or service from suppliers and their vendors to the customer
✔✔Tactical planning - ✔✔Focuses on short-term goals and involves evaluating
economic and environmental issues to meet the strategic plan's goals
✔✔Tangible assets - ✔✔Assets whose values comes from their physical substance,
such as land, buildings, and equipment
✔✔Time-phased budget - ✔✔A "road map" estimating how much funding a contract will
require over time
✔✔Work breakdown structure - ✔✔A top-down, hierarchical or tree-structured
description of the work to be accomplished as viewed from the standpoint of outputs or
products
✔✔Work package - ✔✔A group of related tasks within a project; the smallest unit of
work that a project can be broken down to when creating the Work Breakdown Structure
✔✔Opportunity and Risk Management (ORM) Six-Step Model - ✔✔1. Identify O&Rs, 2.
Analyze O&Rs, 3. Prioritize O&Rs, 4. Develop O&Rs action plan, 5. Implement O&Rs
action plans, 6. Evaluate project results
,✔✔Acceptance criteria - ✔✔Those criteria, usually stated in a contract and/or SOW that
includes deliverables, performance requirements and essential conditions, which must
be met to complete project deliverables and be accepted
✔✔Detailed contract analysis - ✔✔A document listing the contractual obligations and
requirements for the seller as well as for the buyer; the list contains the information
extracted and provided in the form of a contract calendar which listed as every "seller
will or shall" and its due date (if known) down to the task level
✔✔Change control - ✔✔The process of controlling, documenting, and storing the
changes to control items; includes proposing the change, evaluating, approving or
rejecting, scheduling and tracking
✔✔Change Control Board (CCB) - ✔✔A formally constituted group of stakeholders
responsible for approving or rejecting changes to the project baselines
✔✔Charter - ✔✔A document issued by the initiator of the project, usually the project
sponsor that formally authorizes the existence of the project, and provides the project
manager with the authority to apply organizational resources to project activities
✔✔Earned value - ✔✔A method for measuring project performance that compares the
amount of work that was planned with what was actually accomplished to determine if
cost and schedule performance went as planned
✔✔Inventory control - ✔✔The management of inventories, including: decisions about
which items to stock at each location; how much stock to keep on hand at various levels
of operation; when to buy; how much to buy; controlling pilferage and damage; and
managing shortages and back orders.
✔✔Kraljic Matrix - ✔✔A tool for portfolio analysis: a four-box matrix that reflects the
segmentation of spend based on an assessment of the value of the spend relative to
the market risk to acquire
✔✔Logistics - ✔✔The process of planning, implementing and controlling the efficient,
cost-effective flow and storage of raw materials, in-process inventory, finished goods
and related information from point of origin to point of consumption for the purpose of
conforming to customer requirements
✔✔Manufacturing - ✔✔Planning, managing and performing the processing of materials
into intermediate or final products, usually in large quantities
✔✔Materials management - ✔✔Involves the planning, acquisition, flow and distribution
of production materials from the raw state to the finished product state
, ✔✔Pareto analysis - ✔✔Analysis (also known as ABC analysis or 80:20 rule) which can
be used to categorize purchases according to dollar value; for example, 20 percent of
the total number of items bought may account for 80 percent of the total value of the
purchasing
✔✔Portfolio - ✔✔Includes all of the programs and projects in an organization; may be
for the organization as a whole, or for individual lines of business
✔✔Product development - ✔✔A series of integrated processes in new product
development chronicling steps from idea conception to commercialization
✔✔Program - ✔✔A group of projects and subprojects that are interdependent for the
program's success, which happen in parallel, or in different stages, phases, or
sequences
✔✔Project - ✔✔A unique endeavor undertaken to produce a product, service, or an
organizational change; projects are one-time occurrences that have a defined start and
finish point
✔✔Receiving - ✔✔The business function that is responsible for verifying that the goods
received are the goods that the organization ordered; involves inspecting and accepting
incoming shipments
✔✔Risk - ✔✔The measure of the probability of an unwanted change occurring and the
associated effect of that event; consists of three components: a risk event (an unwanted
change), the probability of occurrence (uncertainty), and the significance of the impact
(the amount at stake)
✔✔Spend analysis - ✔✔Analysis of the historical spending patterns in an organization,
usually by commodity or category
✔✔Sponsor - ✔✔The individual or group that provides the financial resources, in cash
or in kind, for the project
✔✔Strategic sourcing - ✔✔The selection and management of suppliers with a focus on
achieving the long-term goals of a business
✔✔Supply Chain Operations Reference (SCOR) - ✔✔A model which shows the supply
chain operation as three basic functions: "Source," "Make," and "Deliver;" using this
model, these three basic functions of a company's organization are linked to both the
customer's organization and the company's suppliers
✔✔Supply management - ✔✔The identification, acquisition, access, positioning and
management of resources and related capabilities the organization needs or potentially
needs in the attainment of its strategic objectives
