CPCM LATEST 2026 EXAM QUESTIONS AND ANSWERS
GRADED A+
✔✔Administrative lead time - ✔✔A measurement used by some organizations of
howling it takes to award a contract,starting when a procurement request is received
and ending when the contract is awarded.
✔✔Asset - ✔✔Something a company owns that has value and that can be sold or used
by the company to make products or provide services that can be sold
✔✔Balance sheet - ✔✔Provides detailed information about a company's assets,
liabilities, and shareholder equity
✔✔Bottom line - ✔✔A company's total earnings or losses over a specific time period,
after accounting for costs and expenses; also called net income.
✔✔Burn rate - ✔✔An average of the estimated costs per month, often based on staffing
estimates, used for estimating funding requirements.
✔✔Cash flow statement - ✔✔A statement reporting a company's inflow and outflow of
cash; generally includes operating activities, investing activities, and financing activities.
✔✔Competition - ✔✔The effort or action of two or more commercial companies to
obtain the same business from a third party
✔✔Contingency planning - ✔✔Involves "what if?" Analysis to look at various situations if
certain environmental or economic conditions change
✔✔Current - ✔✔Current assets are assets which can be converted into cash within one
year; current liabilities are obligations that a business must pay within one year.
✔✔Current ratio - ✔✔The ratio of current assets to current liabilities
✔✔Debt-to-Equity Ratio - ✔✔The ratio measuring the relationship of debt and
shareholder equity used to finance the company's operations
✔✔Demand - ✔✔Describes how buyers shave in the marketplace; the quantity a buyer
demands is what a buyer is willing to buy at a particular price
✔✔Directing - ✔✔The management of people and processes to accomplish objectives
✔✔Economics - ✔✔The science concerned with making decisions with scarce
resources such as labor, capital goods, and natural resources
,✔✔Electronic government (e-government) - ✔✔The use by the government.m of the
Internet and other information technologies, together with the processes and people
needed to implement them, to enhance the delivery of information and services to the
public and others to make improvements in government operations
✔✔Equity - ✔✔The amount of money that would be left if a company sold all of its
assets and paid off all of its liabilities; this amount, also called capital or net worth,
belongs to the owner(s) of the company
✔✔FedBizOpps - ✔✔A we -based portal (www.fbo.gov) that allows vendors to review
federal business opportunities, and buyers to create opportunity notices and awards,
using secured accounts.
✔✔Financial analysis - ✔✔An assessment of the viability, stability, and profitability of a
business
✔✔Generally Accepted Accounting Principles (GAAP) - ✔✔A set of uniform accounting
rules for assigning and measuring contract data to accurately represent an
organization's financial condition; no regulatory guidance developed and used by
certified public accountants
✔✔Gross Profit - ✔✔The subtotal of total revenue made during an accounting period,
minus any returns or discounts and the costs of goods sold, before deducting operating
expenses
✔✔Income statement - ✔✔A report that shows how much revenue a company earned
over a specific time period, and the costs and expenses associated with earning that
revenue
✔✔Information science - ✔✔The field concerned with collecting, organizing, storing,
retrieving, and protecting recorded data
✔✔Intangible assets - ✔✔Assets whose value comes from a legal claim or additional
earning power from a business transaction, such as goodwill, patents, or trademarks
✔✔Job-order cost system - ✔✔An accounting system under which the company
accounts for output by identifying specific physical units; the costs for each job or
contract are accumulated under separate job orders
✔✔Latency - ✔✔The delay between when a cost is incurred and when that cost
appears in the accounting system
✔✔Liability - ✔✔An amount of money owed by a company to another; may require a
specific sum of money paid to a particular party at a specified time, or may be indefinite
, ✔✔Long-term - ✔✔Long-term assets are assets that a business cannot easily turn into
cash and that are not used within one year; long-term liabilities are liabilities that will
mature over one year from the balance sheet date
✔✔Monopoly - ✔✔A type of competition that exists when there is only one company in
the marketplace and it has no competitors
✔✔Monopsony - ✔✔A type of competition that exists when there is only one buyer,
such as when certain supplies or services can only be bought by a single entity
✔✔Net operating income - ✔✔The subtotal of gross profit minus the operating
expenses that a company pays to conduct its business
✔✔Oligopoly - ✔✔A type of competition that exists when there are only a few
companies in an industry with slight differences in products or services
✔✔Operational planning - ✔✔Looks at the near-term goals and identifies how the
organization will meet its tactical goals
✔✔Operations management - ✔✔A type of management activity that is mostly
concerned with the directing and controlling of management functions, which uses
customer feedback to improve processes and procedures, to improve the activities or
add value to the product or service
✔✔Organizing - ✔✔Allocating resources to meet goals identified during the planning
process
✔✔Perfect competition - ✔✔A type of competition that exists when many companies
produce identical goods or services and no one company can influence the market
✔✔Planning - ✔✔Preparing the organization for the future
✔✔Process cost system - ✔✔An accounting system under which direct costs are
changed to a project for more than one contract that are run through the process at the
same time, even though the end its may not be identical; at the end of the accounting
period, the costs incurred for that process are assigned to the units completed during
the period and to the incomplete unit still in production
✔✔Project management - ✔✔The discipline of initiating, planning, executing,
controlling, and closing the work of a team to achieve specific goals and meet specific
success criteria
GRADED A+
✔✔Administrative lead time - ✔✔A measurement used by some organizations of
howling it takes to award a contract,starting when a procurement request is received
and ending when the contract is awarded.
✔✔Asset - ✔✔Something a company owns that has value and that can be sold or used
by the company to make products or provide services that can be sold
✔✔Balance sheet - ✔✔Provides detailed information about a company's assets,
liabilities, and shareholder equity
✔✔Bottom line - ✔✔A company's total earnings or losses over a specific time period,
after accounting for costs and expenses; also called net income.
✔✔Burn rate - ✔✔An average of the estimated costs per month, often based on staffing
estimates, used for estimating funding requirements.
✔✔Cash flow statement - ✔✔A statement reporting a company's inflow and outflow of
cash; generally includes operating activities, investing activities, and financing activities.
✔✔Competition - ✔✔The effort or action of two or more commercial companies to
obtain the same business from a third party
✔✔Contingency planning - ✔✔Involves "what if?" Analysis to look at various situations if
certain environmental or economic conditions change
✔✔Current - ✔✔Current assets are assets which can be converted into cash within one
year; current liabilities are obligations that a business must pay within one year.
✔✔Current ratio - ✔✔The ratio of current assets to current liabilities
✔✔Debt-to-Equity Ratio - ✔✔The ratio measuring the relationship of debt and
shareholder equity used to finance the company's operations
✔✔Demand - ✔✔Describes how buyers shave in the marketplace; the quantity a buyer
demands is what a buyer is willing to buy at a particular price
✔✔Directing - ✔✔The management of people and processes to accomplish objectives
✔✔Economics - ✔✔The science concerned with making decisions with scarce
resources such as labor, capital goods, and natural resources
,✔✔Electronic government (e-government) - ✔✔The use by the government.m of the
Internet and other information technologies, together with the processes and people
needed to implement them, to enhance the delivery of information and services to the
public and others to make improvements in government operations
✔✔Equity - ✔✔The amount of money that would be left if a company sold all of its
assets and paid off all of its liabilities; this amount, also called capital or net worth,
belongs to the owner(s) of the company
✔✔FedBizOpps - ✔✔A we -based portal (www.fbo.gov) that allows vendors to review
federal business opportunities, and buyers to create opportunity notices and awards,
using secured accounts.
✔✔Financial analysis - ✔✔An assessment of the viability, stability, and profitability of a
business
✔✔Generally Accepted Accounting Principles (GAAP) - ✔✔A set of uniform accounting
rules for assigning and measuring contract data to accurately represent an
organization's financial condition; no regulatory guidance developed and used by
certified public accountants
✔✔Gross Profit - ✔✔The subtotal of total revenue made during an accounting period,
minus any returns or discounts and the costs of goods sold, before deducting operating
expenses
✔✔Income statement - ✔✔A report that shows how much revenue a company earned
over a specific time period, and the costs and expenses associated with earning that
revenue
✔✔Information science - ✔✔The field concerned with collecting, organizing, storing,
retrieving, and protecting recorded data
✔✔Intangible assets - ✔✔Assets whose value comes from a legal claim or additional
earning power from a business transaction, such as goodwill, patents, or trademarks
✔✔Job-order cost system - ✔✔An accounting system under which the company
accounts for output by identifying specific physical units; the costs for each job or
contract are accumulated under separate job orders
✔✔Latency - ✔✔The delay between when a cost is incurred and when that cost
appears in the accounting system
✔✔Liability - ✔✔An amount of money owed by a company to another; may require a
specific sum of money paid to a particular party at a specified time, or may be indefinite
, ✔✔Long-term - ✔✔Long-term assets are assets that a business cannot easily turn into
cash and that are not used within one year; long-term liabilities are liabilities that will
mature over one year from the balance sheet date
✔✔Monopoly - ✔✔A type of competition that exists when there is only one company in
the marketplace and it has no competitors
✔✔Monopsony - ✔✔A type of competition that exists when there is only one buyer,
such as when certain supplies or services can only be bought by a single entity
✔✔Net operating income - ✔✔The subtotal of gross profit minus the operating
expenses that a company pays to conduct its business
✔✔Oligopoly - ✔✔A type of competition that exists when there are only a few
companies in an industry with slight differences in products or services
✔✔Operational planning - ✔✔Looks at the near-term goals and identifies how the
organization will meet its tactical goals
✔✔Operations management - ✔✔A type of management activity that is mostly
concerned with the directing and controlling of management functions, which uses
customer feedback to improve processes and procedures, to improve the activities or
add value to the product or service
✔✔Organizing - ✔✔Allocating resources to meet goals identified during the planning
process
✔✔Perfect competition - ✔✔A type of competition that exists when many companies
produce identical goods or services and no one company can influence the market
✔✔Planning - ✔✔Preparing the organization for the future
✔✔Process cost system - ✔✔An accounting system under which direct costs are
changed to a project for more than one contract that are run through the process at the
same time, even though the end its may not be identical; at the end of the accounting
period, the costs incurred for that process are assigned to the units completed during
the period and to the incomplete unit still in production
✔✔Project management - ✔✔The discipline of initiating, planning, executing,
controlling, and closing the work of a team to achieve specific goals and meet specific
success criteria
