CPCM Exam 2024 Questions with
Answers
Accounting - Answer-The way an organization collects, organizes, and records financial
information for making management decisions; the way to report a company's
transactions and to maintain accountability for its assets and liabilities.
Accounting System - Answer-A formal communications network that supplies relevant
information for planning, control, decision-making, and evaluation.
Acid test ratio - Answer-The ratio determining how well the company's current liabilities
can be satisfied by its current assets less inventory.
Activity-based costing system - Answer-An accounting system focused on production
cycle and based on the principles that an output needs activities to produce it and that
those activities use certain resources; assigns costs through cost drivers that the
activities use to create the outputs.
Administrative lead time - Answer-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 - Answer-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 - Answer-Provides detailed information about a company's assets,
liabilities, and shareholder equity
Bottom line - Answer-A company's total earnings or losses over a specific time period,
after accounting for costs and expenses; also called net income.
Burn rate - Answer-An average of the estimated costs per month, often based on
staffing estimates, used for estimating funding requirements.
Cash flow statement - Answer-A statement reporting a company's inflow and outflow of
cash; generally includes operating activities, investing activities, and financing activities.
Competition - Answer-The effort or action of two or more commercial companies to
obtain the same business from a third party
,Contingency planning - Answer-Involves "what if?" Analysis to look at various situations
if certain environmental or economic conditions change
Current - Answer-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 - Answer-The ratio of current assets to current liabilities
Debt-to-Equity Ratio - Answer-The ratio measuring the relationship of debt and
shareholder equity used to finance the company's operations
Accountability - Answer-An obligation or willingness to accept responsibility for one's
actions
Character - Answer-A leadership competency that says that contract leaders must be
able to perform contract management with the highest standards of ethical behavior and
with integrity, decisiveness and optimism
Collaboration - Answer-Working jointly with others or together, especially in an
intellectual endeavor
Competence - Answer-A leadership competency that says that a contract leader must
be technically proficient in contract management with a broad understanding of the
practices, policies, and procedures inherent to contract management
Consensus - Answer-General agreement; group solidarity in sentiment and belief
Decisiveness - Answer-The capacity to make decisions even when the decision may not
be popular or may pose risk
Ethics - Answer-The principles of conduct governing n individual or a group
Feedback - Answer-Information about reactions to a person's performance of a task,
used as a basis for
Improvement
Integrative thinking - Answer-The ability to face constructively the tension of opposing
ideas and, instead of choosing one at the expense of the other, to create a resolution in
the form of a new, superior idea that contains elements of each of the ideas
Integrity - Answer-Having the courage to do what you say you will do; following through
on promises in a manner that promotes trustworthiness
Intuition - Answer-The ability to assess a situation and know instinctively what to do, by
blending fact with instinct and other intangible factors
,Letter of the Law - Answer-The literal interpretation of a rule or standard, but not
necessarily the intent of those who wrote it
Mentoring - Answer-The development by leaders of other leaders
Optimism - Answer-The ability to give hope and instill confidence in others; giving
followers something to look forward to and helping them see the way through chaos and
complexity
Spirit of the Law - Answer-The intended interpretation of a rule or standard, but. Or
necessarily what is conveyed in the literal wording
Succession planning - Answer-Empowering others and helping them develop, so they
become capable of taking over the leader's job
Values - Answer-Individual or personal standards of what is valuable or important
Vision - Answer-Being able to see the possibilities for a better future and guiding others
on getting there
Demand - Answer-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 - Answer-The management of people and processes to accomplish objectives
Economics - Answer-The science concerned with making decisions with scarce
resources such as labor, capital goods, and natural resources
Electronic government (e-government) - Answer-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 - Answer-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 - Answer-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 - Answer-An assessment of the viability, stability, and profitability of a
business
, Generally Accepted Accounting Principles (GAAP) - Answer-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 - Answer-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 - Answer-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 - Answer-The field concerned with collecting, organizing, storing,
retrieving, and protecting recorded data
Intangible assets - Answer-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 - Answer-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 - Answer-The delay between when a cost is incurred and when that cost
appears in the accounting system
Liability - Answer-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 - Answer-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 - Answer-A type of competition that exists when there is only one company in
the marketplace and it has no competitors
Monopsony - Answer-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 - Answer-The subtotal of gross profit minus the operating
expenses that a company pays to conduct its business
Oligopoly - Answer-A type of competition that exists when there are only a few
companies in an industry with slight differences in products or services
