CPPO Prep Exam UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
7 Rights of Purchasing - CORRECT ANSWER To obtain the right material in the right quantity
for delivery at the right time to the right place from the right source(a responsive and responsible
supplier) with the right service at the right price.
Values - CORRECT ANSWER Enduring beliefs or ideals shared by public procurement about
what is good or desirable and what is not in our actions.
Goals - CORRECT ANSWER Long-term, tangible, attainable targets for an organization
Policies - CORRECT ANSWER Plans, courses of action, or governing principles which
establishes the general parameters for the organization to follow in carrying out its responsibilities.
Mission Statement - CORRECT ANSWER States the purpose of its existence and its core
values. it should be no more than three sentences and identifies the purpose of an organization, the
services it provides, the customers it seeks to serve and the way it serves.
Strategic Plan includes: - CORRECT ANSWER Vision, mission, goals, objectives, strategies,
performance measures and evaluation
Vision - CORRECT ANSWER Identifies where the organization wants to be in the future
Mission - CORRECT ANSWER Identifies why it exists, what it is and how it contributes to the
local community.
Goals - CORRECT ANSWER Identifies what the organization is intending to accomplish and
proposes the general end towards which an organization directs its efforts.
Objectives - CORRECT ANSWER Highly defined targets that require specific action with a
shorter time frame.
,Strategies - CORRECT ANSWER Identified methods to achieve specific goals and are used to
carry out objectives. Long range plans
Performance Measures - CORRECT ANSWER The development and alignment of objectives
and mechanisms for measuring the accomplishments of objectives to support the strategic goals of the
organization. Something to evaluate against.
Evaluation - CORRECT ANSWER Monitoring the end results
Objectives should be: - CORRECT ANSWER SMART-Specific, measurable, assignable,
realistic and time based.
Types of performance measures - CORRECT ANSWER Demand, workload, efficiency and
effectiveness
Demand - CORRECT ANSWER A measure that assesses the severity of a problem or the scope
of work to be performed.
Workload - CORRECT ANSWER A measure that indicates the amount of work which must be
performed to accomplish a specific task.
Efficiency - CORRECT ANSWER A measure that compares resources used with results
obtained.
Effectiveness - CORRECT ANSWER A measure that determines how well a program or
activity meets an objective or fulfills a need.
Value-added benefits* - CORRECT ANSWER Takes into consideration quality, cost, service,
TCO (total cost of ownership) and continuity of supply.
Policy Manual - CORRECT ANSWER Manual that says how we must do it. Defines the
general parameters for the organization to follow in carrying out its responsibilities.
,Procedure manual - CORRECT ANSWER Shows in great detail how to do the work. It
functions to not only provide guidance but to set out forms, process requirements ans steps for each
purchasing action.
Regulations - CORRECT ANSWER Statements by a governing body to implement, interpret or
prescribe law or policy.
Automated procurement management information systems - CORRECT ANSWER Saves
considerable time and effort, reduces overhead and improves schedule by eliminating the repetitive
clerical tasks associated with purchasing.
Enterprise Resource Planning Systems (ERP) - CORRECT ANSWER Business process
software systems that manage multiple management systems such as finance, accounting, human
resources, purchasing, and inventory.
Retention Schedule for documents* - CORRECT ANSWER Must save the following: "HAL"
Historical, Administrative and Legal
Cooperative Purchasing - CORRECT ANSWER Two or more agencies combining their
requirements to obtain advantages of volume purchasing including administrative savings.
Benefits of Cooperative purchasing - CORRECT ANSWER Provides lower prices for large
agencies volume purchases, lower cost to smaller entities, combines qualities so that each entity gets a
good value and reduces admin costs of purchasing.
Initial Steps to develop a Co-operative Purchasing Program - CORRECT ANSWER Discuss the
advantages, review agency policies and engage legal counsel to assess laws, develop a whitepaper,
research what other authorities are doing.
Cost Avoidance - CORRECT ANSWER Actions taken to avoid having to pay some sort of cost.
Also a dedicated effort on the part of the official to carefully analyze the agencies needs to prevent
unnecessary charges.
Cost Reduction - CORRECT ANSWER Occurs when the current price to be paid by the buyer
is lower than the previous price paid under similar procurement conditions generally as a result of a
favorable competitive market.
, How to measure procurement performance - CORRECT ANSWER Effectiveness, efficiency,
projections and customer service
Effectiveness - CORRECT ANSWER How long it takes to process a request for procurement.
Efficiency - CORRECT ANSWER Defined as the ratio between inputs and outputs.
Projections - CORRECT ANSWER Derived from historical baselines of the key objectives and
actual outcomes.
Carrying Costs - CORRECT ANSWER The costs of maintaining an inventory of supplies (e.g.
the costs of invested funds, insurance, storage, obsolescence, deterioration, equipment and labor) are
known as:
Self Actualization - CORRECT ANSWER According to Maslow's Hierarchy of Needs, which
of the following is considered to be the ultimate human need?
the need to fulfill one's potential
One of the benefits of using Requests for Proposals is recognizing that the best solutions can come
from field experts who deal on a daily basis with conflicts we are trying to solve. This benefit is
known as: - CORRECT ANSWER Value Engineering
In preparing to write a specification or scope of work, we may want to consider one of two methods
of gathering facts or details from potential vendors. We can invite several of them to come to our
agency and make a presentation or we can cast a wider net with this technique. - CORRECT
ANSWER Request for Information
Termination for convenience - CORRECT ANSWER The city has had a term contract in place
for two years. The original term of the contract was for up to three years. Usage of the contract has
declined to almost nothing. The city purchasing manager has decided to cancel the contract. Which of
the following methods best addresses this action?
Laws governing public records, open meetings and freedom of information are known by this
illuminating phrase. - CORRECT ANSWER Sunshine law
QUESTIONS AND CORRECT ANSWERS
7 Rights of Purchasing - CORRECT ANSWER To obtain the right material in the right quantity
for delivery at the right time to the right place from the right source(a responsive and responsible
supplier) with the right service at the right price.
Values - CORRECT ANSWER Enduring beliefs or ideals shared by public procurement about
what is good or desirable and what is not in our actions.
Goals - CORRECT ANSWER Long-term, tangible, attainable targets for an organization
Policies - CORRECT ANSWER Plans, courses of action, or governing principles which
establishes the general parameters for the organization to follow in carrying out its responsibilities.
Mission Statement - CORRECT ANSWER States the purpose of its existence and its core
values. it should be no more than three sentences and identifies the purpose of an organization, the
services it provides, the customers it seeks to serve and the way it serves.
Strategic Plan includes: - CORRECT ANSWER Vision, mission, goals, objectives, strategies,
performance measures and evaluation
Vision - CORRECT ANSWER Identifies where the organization wants to be in the future
Mission - CORRECT ANSWER Identifies why it exists, what it is and how it contributes to the
local community.
Goals - CORRECT ANSWER Identifies what the organization is intending to accomplish and
proposes the general end towards which an organization directs its efforts.
Objectives - CORRECT ANSWER Highly defined targets that require specific action with a
shorter time frame.
,Strategies - CORRECT ANSWER Identified methods to achieve specific goals and are used to
carry out objectives. Long range plans
Performance Measures - CORRECT ANSWER The development and alignment of objectives
and mechanisms for measuring the accomplishments of objectives to support the strategic goals of the
organization. Something to evaluate against.
Evaluation - CORRECT ANSWER Monitoring the end results
Objectives should be: - CORRECT ANSWER SMART-Specific, measurable, assignable,
realistic and time based.
Types of performance measures - CORRECT ANSWER Demand, workload, efficiency and
effectiveness
Demand - CORRECT ANSWER A measure that assesses the severity of a problem or the scope
of work to be performed.
Workload - CORRECT ANSWER A measure that indicates the amount of work which must be
performed to accomplish a specific task.
Efficiency - CORRECT ANSWER A measure that compares resources used with results
obtained.
Effectiveness - CORRECT ANSWER A measure that determines how well a program or
activity meets an objective or fulfills a need.
Value-added benefits* - CORRECT ANSWER Takes into consideration quality, cost, service,
TCO (total cost of ownership) and continuity of supply.
Policy Manual - CORRECT ANSWER Manual that says how we must do it. Defines the
general parameters for the organization to follow in carrying out its responsibilities.
,Procedure manual - CORRECT ANSWER Shows in great detail how to do the work. It
functions to not only provide guidance but to set out forms, process requirements ans steps for each
purchasing action.
Regulations - CORRECT ANSWER Statements by a governing body to implement, interpret or
prescribe law or policy.
Automated procurement management information systems - CORRECT ANSWER Saves
considerable time and effort, reduces overhead and improves schedule by eliminating the repetitive
clerical tasks associated with purchasing.
Enterprise Resource Planning Systems (ERP) - CORRECT ANSWER Business process
software systems that manage multiple management systems such as finance, accounting, human
resources, purchasing, and inventory.
Retention Schedule for documents* - CORRECT ANSWER Must save the following: "HAL"
Historical, Administrative and Legal
Cooperative Purchasing - CORRECT ANSWER Two or more agencies combining their
requirements to obtain advantages of volume purchasing including administrative savings.
Benefits of Cooperative purchasing - CORRECT ANSWER Provides lower prices for large
agencies volume purchases, lower cost to smaller entities, combines qualities so that each entity gets a
good value and reduces admin costs of purchasing.
Initial Steps to develop a Co-operative Purchasing Program - CORRECT ANSWER Discuss the
advantages, review agency policies and engage legal counsel to assess laws, develop a whitepaper,
research what other authorities are doing.
Cost Avoidance - CORRECT ANSWER Actions taken to avoid having to pay some sort of cost.
Also a dedicated effort on the part of the official to carefully analyze the agencies needs to prevent
unnecessary charges.
Cost Reduction - CORRECT ANSWER Occurs when the current price to be paid by the buyer
is lower than the previous price paid under similar procurement conditions generally as a result of a
favorable competitive market.
, How to measure procurement performance - CORRECT ANSWER Effectiveness, efficiency,
projections and customer service
Effectiveness - CORRECT ANSWER How long it takes to process a request for procurement.
Efficiency - CORRECT ANSWER Defined as the ratio between inputs and outputs.
Projections - CORRECT ANSWER Derived from historical baselines of the key objectives and
actual outcomes.
Carrying Costs - CORRECT ANSWER The costs of maintaining an inventory of supplies (e.g.
the costs of invested funds, insurance, storage, obsolescence, deterioration, equipment and labor) are
known as:
Self Actualization - CORRECT ANSWER According to Maslow's Hierarchy of Needs, which
of the following is considered to be the ultimate human need?
the need to fulfill one's potential
One of the benefits of using Requests for Proposals is recognizing that the best solutions can come
from field experts who deal on a daily basis with conflicts we are trying to solve. This benefit is
known as: - CORRECT ANSWER Value Engineering
In preparing to write a specification or scope of work, we may want to consider one of two methods
of gathering facts or details from potential vendors. We can invite several of them to come to our
agency and make a presentation or we can cast a wider net with this technique. - CORRECT
ANSWER Request for Information
Termination for convenience - CORRECT ANSWER The city has had a term contract in place
for two years. The original term of the contract was for up to three years. Usage of the contract has
declined to almost nothing. The city purchasing manager has decided to cancel the contract. Which of
the following methods best addresses this action?
Laws governing public records, open meetings and freedom of information are known by this
illuminating phrase. - CORRECT ANSWER Sunshine law
