CPPO EXAM AND PRACTICE EXAM ACTUAL EXAM ALL 100
QUESTIONS AND CORRECT DETAILED ANSWERS
7 Rights of Purchasing - 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 - ANSWER: Enduring beliefs or ideals shared by public procurement about
what is good or desirable and what is not in our actions.
Goals - ANSWER: Long-term, tangible, attainable targets for an organization
Policies - 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 - 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: - ANSWER: Vision, mission, goals, objectives, strategies,
performance measures and evaluation
Vision - ANSWER: Identifies where the organization wants to be in the future
Mission - ANSWER: Identifies why it exists, what it is and how it contributes to the
local community.
Goals - ANSWER: Identifies what the organization is intending to accomplish and
proposes the general end towards which an organization directs its efforts.
Objectives - ANSWER: Highly defined targets that require specific action with a
shorter time frame.
Strategies - ANSWER: Identified methods to achieve specific goals and are used to
carry out objectives. Long range plans
Performance Measures - 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 - ANSWER: Monitoring the end results
,Objectives should be: - ANSWER: SMART-Specific, measurable, assignable, realistic
and time based.
Types of performance measures - ANSWER: Demand, workload, efficiency and
effectiveness
Demand - ANSWER: A measure that assesses the severity of a problem or the scope
of work to be performed.
Workload - ANSWER: A measure that indicates the amount of work which must be
performed to accomplish a specific task.
Efficiency - ANSWER: A measure that compares resources used with results obtained.
Effectiveness - ANSWER: A measure that determines how well a program or activity
meets an objective or fulfills a need.
Value-added benefits* - ANSWER: Takes into consideration quality, cost, service, TCO
(total cost of ownership) and continuity of supply.
Policy Manual - 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 - 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 - ANSWER: Statements by a governing body to implement, interpret or
prescribe law or policy.
Automated procurement management information systems - 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) - ANSWER: Business process software
systems that manage multiple management systems such as finance, accounting,
human resources, purchasing, and inventory.
Retention Schedule for documents* - ANSWER: Must save the following: "HAL"
Historical, Administrative and Legal
Cooperative Purchasing - ANSWER: Two or more agencies combining their
requirements to obtain advantages of volume purchasing including administrative
savings.
,Benefits of Cooperative purchasing - 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 - 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 - 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 - 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 - ANSWER: Effectiveness, efficiency,
projections and customer service
Effectiveness - ANSWER: How long it takes to process a request for procurement.
Efficiency - ANSWER: Defined as the ratio between inputs and outputs.
Projections - ANSWER: Derived from historical baselines of the key objectives and
actual outcomes.
According to Maslow's Hierarchy of Needs, which of the following is considered to be
the ultimate human need?
According to Maslow's Hierarchy of Needs, which of the following is considered to be
the ultimate human need? - ANSWER: Self Actualization
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:
- ANSWER: Carrying Costs
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: - 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. - ANSWER: Request for Information
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? - ANSWER: Termination for
convenience
Laws governing public records, open meetings and freedom of information are
known by this illuminating phrase. - ANSWER: Sunshine law
Requesting a contractor provide information as to why a contract should not be
terminated for default is the purpose of a: - ANSWER: Show cause notice
Why is the Request for Proposal (RFP) process often perceived as problematic by an
agency's leadership? - ANSWER: The award decision is based on qualitative variables.
Examples of audits are: - ANSWER: Financial, compliance and management
Examples of three types of audit reports are:* - ANSWER: Intradepartmental,
interdepartmental, higher level management
Intradepartmental means:* - ANSWER: Designed to inform the management in your
department concerning departmental matters.
Interdepartmental means: * - ANSWER: Distribution to other departments, outside
of your department, on a need to know basis.
Higher Level Management:* - ANSWER: reports issued to senior management and
other key personnel.
eCommerce means: - ANSWER: The integration of Electronic Data Interchange (EDI),
electronic funds transfer (EFT) and similar techniques into a comprehensive
electronic based system of procurement functions.
eProcurement or eSourcing - ANSWER: Is the process of using electronic
technologies for purchasing goods and services and includes conducting all or some
of the functions over the internet.
The promise of eProcurement makes it an attractive option to consider. Anticipated
benefits may include: - ANSWER: Cost savings through reduced data entry errors in
procurement systems
Savings in cycle time within the procurement process
The ability to negotiate best value with suppliers
Increased opportunities for streamlining and re-engineering business processes
The potential for improving and monitoring supplier relationships
Fewer misunderstandings and errors between purchasing staff and departments
The internet is instrumental in providing significant and useful tools for public
organizations to engage in eProcurement and eCommerce using real-time
technology. Some of those benefits include: - ANSWER: Greater effectiveness and
efficiency
QUESTIONS AND CORRECT DETAILED ANSWERS
7 Rights of Purchasing - 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 - ANSWER: Enduring beliefs or ideals shared by public procurement about
what is good or desirable and what is not in our actions.
Goals - ANSWER: Long-term, tangible, attainable targets for an organization
Policies - 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 - 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: - ANSWER: Vision, mission, goals, objectives, strategies,
performance measures and evaluation
Vision - ANSWER: Identifies where the organization wants to be in the future
Mission - ANSWER: Identifies why it exists, what it is and how it contributes to the
local community.
Goals - ANSWER: Identifies what the organization is intending to accomplish and
proposes the general end towards which an organization directs its efforts.
Objectives - ANSWER: Highly defined targets that require specific action with a
shorter time frame.
Strategies - ANSWER: Identified methods to achieve specific goals and are used to
carry out objectives. Long range plans
Performance Measures - 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 - ANSWER: Monitoring the end results
,Objectives should be: - ANSWER: SMART-Specific, measurable, assignable, realistic
and time based.
Types of performance measures - ANSWER: Demand, workload, efficiency and
effectiveness
Demand - ANSWER: A measure that assesses the severity of a problem or the scope
of work to be performed.
Workload - ANSWER: A measure that indicates the amount of work which must be
performed to accomplish a specific task.
Efficiency - ANSWER: A measure that compares resources used with results obtained.
Effectiveness - ANSWER: A measure that determines how well a program or activity
meets an objective or fulfills a need.
Value-added benefits* - ANSWER: Takes into consideration quality, cost, service, TCO
(total cost of ownership) and continuity of supply.
Policy Manual - 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 - 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 - ANSWER: Statements by a governing body to implement, interpret or
prescribe law or policy.
Automated procurement management information systems - 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) - ANSWER: Business process software
systems that manage multiple management systems such as finance, accounting,
human resources, purchasing, and inventory.
Retention Schedule for documents* - ANSWER: Must save the following: "HAL"
Historical, Administrative and Legal
Cooperative Purchasing - ANSWER: Two or more agencies combining their
requirements to obtain advantages of volume purchasing including administrative
savings.
,Benefits of Cooperative purchasing - 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 - 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 - 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 - 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 - ANSWER: Effectiveness, efficiency,
projections and customer service
Effectiveness - ANSWER: How long it takes to process a request for procurement.
Efficiency - ANSWER: Defined as the ratio between inputs and outputs.
Projections - ANSWER: Derived from historical baselines of the key objectives and
actual outcomes.
According to Maslow's Hierarchy of Needs, which of the following is considered to be
the ultimate human need?
According to Maslow's Hierarchy of Needs, which of the following is considered to be
the ultimate human need? - ANSWER: Self Actualization
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:
- ANSWER: Carrying Costs
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: - 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. - ANSWER: Request for Information
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? - ANSWER: Termination for
convenience
Laws governing public records, open meetings and freedom of information are
known by this illuminating phrase. - ANSWER: Sunshine law
Requesting a contractor provide information as to why a contract should not be
terminated for default is the purpose of a: - ANSWER: Show cause notice
Why is the Request for Proposal (RFP) process often perceived as problematic by an
agency's leadership? - ANSWER: The award decision is based on qualitative variables.
Examples of audits are: - ANSWER: Financial, compliance and management
Examples of three types of audit reports are:* - ANSWER: Intradepartmental,
interdepartmental, higher level management
Intradepartmental means:* - ANSWER: Designed to inform the management in your
department concerning departmental matters.
Interdepartmental means: * - ANSWER: Distribution to other departments, outside
of your department, on a need to know basis.
Higher Level Management:* - ANSWER: reports issued to senior management and
other key personnel.
eCommerce means: - ANSWER: The integration of Electronic Data Interchange (EDI),
electronic funds transfer (EFT) and similar techniques into a comprehensive
electronic based system of procurement functions.
eProcurement or eSourcing - ANSWER: Is the process of using electronic
technologies for purchasing goods and services and includes conducting all or some
of the functions over the internet.
The promise of eProcurement makes it an attractive option to consider. Anticipated
benefits may include: - ANSWER: Cost savings through reduced data entry errors in
procurement systems
Savings in cycle time within the procurement process
The ability to negotiate best value with suppliers
Increased opportunities for streamlining and re-engineering business processes
The potential for improving and monitoring supplier relationships
Fewer misunderstandings and errors between purchasing staff and departments
The internet is instrumental in providing significant and useful tools for public
organizations to engage in eProcurement and eCommerce using real-time
technology. Some of those benefits include: - ANSWER: Greater effectiveness and
efficiency
