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CPPO EXAM AND PRACTICE EXAM 2024- 2025 ACTUAL EXAM ALL 300+
QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
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.
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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.
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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.
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? - correct 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: - correct 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: - 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
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? - correct answer Termination for convenience
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Laws governing public records, open meetings and freedom of information are known by this
illuminating phrase. - correct answer Sunshine law
Requesting a contractor provide information as to why a contract should not be terminated for
default is the purpose of a: - correct answer Show cause notice
Why is the Request for Proposal (RFP) process often perceived as problematic by an agency's
leadership? - correct answer The award decision is based on qualitative variables.
Examples of audits are: - correct answer Financial, compliance and management
Examples of three types of audit reports are:* - correct answer Intradepartmental,
interdepartmental, higher level management
Intradepartmental means:* - correct answer Designed to inform the management in your
department concerning departmental matters.
Interdepartmental means: * - correct answer Distribution to other departments, outside of
your department, on a need to know basis.
Higher Level Management:* - correct answer reports issued to senior management and other
key personnel.
eCommerce means: - correct 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 - correct 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: - correct 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: - correct answer Greater effectiveness and efficiency
