CPPB Prep Domain I Procurement
Administration Exam Questions and
Answers
Interdepartmental Reports - ANSWER-For distribution to other departments on a
need-to-know basis.
Higher Level Management Reports - ANSWER-Issued to senior management and
other key personnel.
Electronic Procurement (eProcurement) - ANSWER-Conducting all or some of the
procurement functions over the internet. Implies that point, click, buy, and ship
internet technology is replacing paper-based procurement and supply management
business processes.
Electronic Commerce (eCommerce) - ANSWER-The integration of electronic data
interchange, electronic funds transfer, and similar techniques into a comprehensive
electronic-based system of procurement functions; could include postings of IFBs
and RFPs on electronic bulletin boards, the receipt of bids via electronic data
interchange, notification of award by email and payment via electronic funds transfer.
Also referred to as Electronic Sourcing (eSourcing).
Electronic Sourcing (eSourcing) - ANSWER-The process of obtaining bids from
different supplies via a single online portal. The benefits include streamlining the
sourcing process, reducing prices by maximizing supplier competition, and creating a
repository for sourcing information.
Preferance - ANSWER-An advantage given to bidders/offerors in a competition for
contract award which may be granted based on pre-established critera such as
ethnicity, residence, business location, origination of product or service, business
classification, or other reasons.
Post-consumer - ANSWER-Materials have been used by consumers, recycled, and
processed back into a consumer product.
Pre-consumer - ANSWER-Materials are left over in manufacturing processes and
then reused in a consumer product.
Total Cost of Ownership (TCO) - ANSWER-A measure of all the cost components
associated with the procurement of a product or service. The sum of all fixed and
variable costs attributed to a product or service. A philosophy for understanding all
supply chain related costs of doing business with a particular supplier for a particular
good or service.
Life Cycle Costing - ANSWER-The total cost of ownership over the life span of the
asset: a procurement technique that takes into account operating, maintenance, the
, time value of money, disposal, and other associated costs of ownership as well as
the residual value of the item.
Cost Reduction - ANSWER-Generally realized when a manufacturer is able to lower
its material or labor costs used to make its products; interchangeably used to
indicate a lower price paid by the buyer from what was previously paid.
Cost Avoidance - ANSWER-Actions taken to avoid having to pay some sort of cost.
This could be financial or in resource terms. Well defined specifications and value
analysis will help to avoid extraneous costs.
Requirement Analysis - ANSWER-Value Analysis applied to the writing of
specifications to eliminate products or services that are not cost effective. It is one
tool to achieve cost avoidance.
Audit - ANSWER-The detailed review and examination of records, documents, and
the business processes with the confirmation by outside experts of a situation or
condition concluding with a detailed report of findings. A formal examination or
verification of financial accounts or other business operations.
Financial and Compliance Audits - ANSWER-Normally performed by an independent
accounting firm to determine whether financial transactions are recorded and to
verify their accuracy.
Economy and Efficiency Audits - ANSWER-Management and operation audits.
These audits examine a governmental unit's managerial and administrative practices
for economy and cost efficiency and strive to identify the cause of any cost
inefficiencies.
Program Audits or Evaluations - ANSWER-Monitor results to determine the extend to
which a governmental unit has achieved program objectives. They also evaluate the
cost effectiveness of the alternatives that were employed.
Performance Audits - ANSWER-Review all the operations of a governmental unit
and encompass the following types of audits: financial, economy, efficiency, and
program results. An increasingly common means of ensuring that those entrusted
with management of public services and programs are held accountable.
3 Phases of Evaluation Process - ANSWER-1. Planning
2. Data Collecting
3. Decision making based on findings and recommendations
Intradepartmental Reports - ANSWER-Designed to inform the management
concerning departmental matters.
Express Authority - ANSWER-Authority explicitly given in direct language rather than
inferred from conduct.
Administration Exam Questions and
Answers
Interdepartmental Reports - ANSWER-For distribution to other departments on a
need-to-know basis.
Higher Level Management Reports - ANSWER-Issued to senior management and
other key personnel.
Electronic Procurement (eProcurement) - ANSWER-Conducting all or some of the
procurement functions over the internet. Implies that point, click, buy, and ship
internet technology is replacing paper-based procurement and supply management
business processes.
Electronic Commerce (eCommerce) - ANSWER-The integration of electronic data
interchange, electronic funds transfer, and similar techniques into a comprehensive
electronic-based system of procurement functions; could include postings of IFBs
and RFPs on electronic bulletin boards, the receipt of bids via electronic data
interchange, notification of award by email and payment via electronic funds transfer.
Also referred to as Electronic Sourcing (eSourcing).
Electronic Sourcing (eSourcing) - ANSWER-The process of obtaining bids from
different supplies via a single online portal. The benefits include streamlining the
sourcing process, reducing prices by maximizing supplier competition, and creating a
repository for sourcing information.
Preferance - ANSWER-An advantage given to bidders/offerors in a competition for
contract award which may be granted based on pre-established critera such as
ethnicity, residence, business location, origination of product or service, business
classification, or other reasons.
Post-consumer - ANSWER-Materials have been used by consumers, recycled, and
processed back into a consumer product.
Pre-consumer - ANSWER-Materials are left over in manufacturing processes and
then reused in a consumer product.
Total Cost of Ownership (TCO) - ANSWER-A measure of all the cost components
associated with the procurement of a product or service. The sum of all fixed and
variable costs attributed to a product or service. A philosophy for understanding all
supply chain related costs of doing business with a particular supplier for a particular
good or service.
Life Cycle Costing - ANSWER-The total cost of ownership over the life span of the
asset: a procurement technique that takes into account operating, maintenance, the
, time value of money, disposal, and other associated costs of ownership as well as
the residual value of the item.
Cost Reduction - ANSWER-Generally realized when a manufacturer is able to lower
its material or labor costs used to make its products; interchangeably used to
indicate a lower price paid by the buyer from what was previously paid.
Cost Avoidance - ANSWER-Actions taken to avoid having to pay some sort of cost.
This could be financial or in resource terms. Well defined specifications and value
analysis will help to avoid extraneous costs.
Requirement Analysis - ANSWER-Value Analysis applied to the writing of
specifications to eliminate products or services that are not cost effective. It is one
tool to achieve cost avoidance.
Audit - ANSWER-The detailed review and examination of records, documents, and
the business processes with the confirmation by outside experts of a situation or
condition concluding with a detailed report of findings. A formal examination or
verification of financial accounts or other business operations.
Financial and Compliance Audits - ANSWER-Normally performed by an independent
accounting firm to determine whether financial transactions are recorded and to
verify their accuracy.
Economy and Efficiency Audits - ANSWER-Management and operation audits.
These audits examine a governmental unit's managerial and administrative practices
for economy and cost efficiency and strive to identify the cause of any cost
inefficiencies.
Program Audits or Evaluations - ANSWER-Monitor results to determine the extend to
which a governmental unit has achieved program objectives. They also evaluate the
cost effectiveness of the alternatives that were employed.
Performance Audits - ANSWER-Review all the operations of a governmental unit
and encompass the following types of audits: financial, economy, efficiency, and
program results. An increasingly common means of ensuring that those entrusted
with management of public services and programs are held accountable.
3 Phases of Evaluation Process - ANSWER-1. Planning
2. Data Collecting
3. Decision making based on findings and recommendations
Intradepartmental Reports - ANSWER-Designed to inform the management
concerning departmental matters.
Express Authority - ANSWER-Authority explicitly given in direct language rather than
inferred from conduct.
