Certified Professional Contract Manager (CPCM)
Comprehensive Knowledge Exam
Certification exam — NCMA-body-of-knowledge
1. According to the provided content, which of the following best defines "Accountability"?
A. Working jointly with others in an intellectual endeavor.
B. The ability to assess a situation and know instinctively what to do.
C. An obligation or willingness to accept responsibility for one's actions.
D. The capacity to make decisions even when they may not be popular.
Correct Answer – An obligation or willingness to accept responsibility for one's actions.
Rationale – The provided definition for "Accountability" is explicitly "An obligation or
willingness to accept responsibility for one's actions."
2. A contract leader who performs contract management with the highest standards of
ethical behavior and integrity is demonstrating which leadership competency?
A. Competence
B. Collaboration
C. Character
D. Decisiveness
Correct Answer – Character
Rationale – The term "Character" is defined as a leadership competency involving performing
contract management with the highest standards of ethical behavior, integrity, decisiveness, and
optimism.
,3. In contract management, what does "Collaboration" entail?
A. Accepting responsibility for one's actions.
B. Working jointly with others, especially in an intellectual endeavor.
C. Developing other leaders within the organization.
D. Making decisions that may be unpopular but necessary.
Correct Answer – Working jointly with others, especially in an intellectual endeavor.
Rationale – The provided content defines "Collaboration" as "Working jointly with others or
together, especially in an intellectual endeavor."
4. Which leadership competency requires a contract leader to be technically proficient in
contract management practices, policies, and procedures?
A. Vision
B. Competence
C. Integrity
D. Optimism
Correct Answer – Competence
Rationale – "Competence" is defined as the leadership competency requiring technical
proficiency and a broad understanding of contract management practices, policies, and
procedures.
5. What is the term for the ability to face the tension of opposing ideas and create a new,
superior resolution?
A. Integrative thinking
B. Intuition
,C. Consensus
D. Decisiveness
Correct Answer – Integrative thinking
Rationale – "Integrative thinking" is defined as the ability to constructively face the tension of
opposing ideas and create a new, superior resolution that contains elements of each.
6. The literal interpretation of a rule, not necessarily the intent of those who wrote it, is
known as what?
A. Spirit of the Law
B. Positive Law
C. Letter of the Law
D. Case Law
Correct Answer – Letter of the Law
Rationale – "Letter of the Law" is defined as the literal interpretation of a rule or standard, but
not necessarily the intent behind it.
7. Which term describes the intended interpretation of a rule or standard, as opposed to its
literal wording?
A. Letter of the Law
B. Spirit of the Law
C. Positive Law
D. Express Authority
, Correct Answer – Spirit of the Law
Rationale – "Spirit of the Law" is defined as the intended interpretation of a rule or standard, not
necessarily what is conveyed in the literal wording.
8. What is the primary purpose of an accounting system as defined in the content?
A. To calculate a company's tax liability.
B. To supply relevant information for planning, control, decision-making, and evaluation.
C. To manage the flow of raw materials to finished goods.
D. To determine the fair and reasonable price for a contract.
Correct Answer – To supply relevant information for planning, control, decision-making, and
evaluation.
Rationale – An "Accounting System" is defined as a formal communications network that
supplies relevant information for planning, control, decision-making, and evaluation.
9. The ratio that determines how well a company's current liabilities can be satisfied by its
current assets less inventory is called the:
A. Current Ratio
B. Debt-to-Equity Ratio
C. Acid Test Ratio
D. Solvency Ratio
Correct Answer – Acid Test Ratio
Rationale – The "Acid test ratio" is specifically defined as the ratio determining how well the
company's current liabilities can be satisfied by its current assets less inventory.
Comprehensive Knowledge Exam
Certification exam — NCMA-body-of-knowledge
1. According to the provided content, which of the following best defines "Accountability"?
A. Working jointly with others in an intellectual endeavor.
B. The ability to assess a situation and know instinctively what to do.
C. An obligation or willingness to accept responsibility for one's actions.
D. The capacity to make decisions even when they may not be popular.
Correct Answer – An obligation or willingness to accept responsibility for one's actions.
Rationale – The provided definition for "Accountability" is explicitly "An obligation or
willingness to accept responsibility for one's actions."
2. A contract leader who performs contract management with the highest standards of
ethical behavior and integrity is demonstrating which leadership competency?
A. Competence
B. Collaboration
C. Character
D. Decisiveness
Correct Answer – Character
Rationale – The term "Character" is defined as a leadership competency involving performing
contract management with the highest standards of ethical behavior, integrity, decisiveness, and
optimism.
,3. In contract management, what does "Collaboration" entail?
A. Accepting responsibility for one's actions.
B. Working jointly with others, especially in an intellectual endeavor.
C. Developing other leaders within the organization.
D. Making decisions that may be unpopular but necessary.
Correct Answer – Working jointly with others, especially in an intellectual endeavor.
Rationale – The provided content defines "Collaboration" as "Working jointly with others or
together, especially in an intellectual endeavor."
4. Which leadership competency requires a contract leader to be technically proficient in
contract management practices, policies, and procedures?
A. Vision
B. Competence
C. Integrity
D. Optimism
Correct Answer – Competence
Rationale – "Competence" is defined as the leadership competency requiring technical
proficiency and a broad understanding of contract management practices, policies, and
procedures.
5. What is the term for the ability to face the tension of opposing ideas and create a new,
superior resolution?
A. Integrative thinking
B. Intuition
,C. Consensus
D. Decisiveness
Correct Answer – Integrative thinking
Rationale – "Integrative thinking" is defined as the ability to constructively face the tension of
opposing ideas and create a new, superior resolution that contains elements of each.
6. The literal interpretation of a rule, not necessarily the intent of those who wrote it, is
known as what?
A. Spirit of the Law
B. Positive Law
C. Letter of the Law
D. Case Law
Correct Answer – Letter of the Law
Rationale – "Letter of the Law" is defined as the literal interpretation of a rule or standard, but
not necessarily the intent behind it.
7. Which term describes the intended interpretation of a rule or standard, as opposed to its
literal wording?
A. Letter of the Law
B. Spirit of the Law
C. Positive Law
D. Express Authority
, Correct Answer – Spirit of the Law
Rationale – "Spirit of the Law" is defined as the intended interpretation of a rule or standard, not
necessarily what is conveyed in the literal wording.
8. What is the primary purpose of an accounting system as defined in the content?
A. To calculate a company's tax liability.
B. To supply relevant information for planning, control, decision-making, and evaluation.
C. To manage the flow of raw materials to finished goods.
D. To determine the fair and reasonable price for a contract.
Correct Answer – To supply relevant information for planning, control, decision-making, and
evaluation.
Rationale – An "Accounting System" is defined as a formal communications network that
supplies relevant information for planning, control, decision-making, and evaluation.
9. The ratio that determines how well a company's current liabilities can be satisfied by its
current assets less inventory is called the:
A. Current Ratio
B. Debt-to-Equity Ratio
C. Acid Test Ratio
D. Solvency Ratio
Correct Answer – Acid Test Ratio
Rationale – The "Acid test ratio" is specifically defined as the ratio determining how well the
company's current liabilities can be satisfied by its current assets less inventory.
