CPPB TEST - DOMAIN VI UPDATED
ACTUAL Exam Questions and CORRECT
Answers
STRATEGIC PROCUREMENT PLANNING - CORRECT ANSWER - Provides the
processes and tools to modernize public sector efforts around improving service development
and delivery system
SWOT analysis - CORRECT ANSWER - strengths, weaknesses, opportunities, threats
PARETO PRINCIPLE - CORRECT ANSWER - 80/20 Rule
80% of Purchasing Cost is created by
20% of the purchase orders issued
Spend Analysis - CORRECT ANSWER - Collecting, classifying, and analyzing the
expenditures data from all sources within the organization.
PROCUREMENT PROFILE - CORRECT ANSWER - Result produced after conducting a
series of various analyses on the procurement expenditures of an organization, the range of
commodities and services acquired through procurement. Adds decision making intelligence to
spend analysis.
BUYING PLAN - CORRECT ANSWER - Based on demand, market and supplier analysis
EVALUATION STRATEGIES - CORRECT ANSWER - • Price analysis
• Cost analysis
• Life Cycle Costing
RESEARCH TECHNIQUES - CORRECT ANSWER - Procurement professional must use
Market Research to better understand The Who, what, when, why and how in the market.
, MARKET RESEARCH - CORRECT ANSWER - Identify the most beneficial method for
acquiring, distributing and supporting supplies and services
FORECASTING - CORRECT ANSWER - Tool to determine future needs. It should be used
to determine the type of solicitation, such as a spot bid or term contract, based upon market
fluctuations and conditions
PURCHASING MANAGER'S INDEX (PMI) - CORRECT ANSWER - WELL
ESTABLISHED AND RELIABLE INDICATOR THAT IDENTIFIES HIGHS AND LOWS IN
THE ECONOMY
FIXED PERIOD AVERAGE - CORRECT ANSWER - A mathematical calculation used to
divide the total usage for a fixed period (generally 12 months). This method will reflect old
patterns and not current directions.
Moving Average Method - CORRECT ANSWER - Continuous average method used to gather
the most current usage information about an item, by taking current trends into accountant
always using the most recent data.
weighted moving average method - CORRECT ANSWER - Builds even more accuracy into
the system by giving more significance to weighting specific information such as seasonal
variations
Mean Absolute Deviation (MAD) - CORRECT ANSWER - Importance of using deviations in
forecasting is the ability to look at anticipated high and low side of any given forecast.
Absolute Value of Errors/Number of Errors
The smaller/lower the value of MAD, the more accurate the forecast.
FORECAST DATA - CORRECT ANSWER - Provides knowledge of the economy and serves
as basis to predict what will occur in the future. Examination of current and past economic trends
and pricing is critical to planning.
ACTUAL Exam Questions and CORRECT
Answers
STRATEGIC PROCUREMENT PLANNING - CORRECT ANSWER - Provides the
processes and tools to modernize public sector efforts around improving service development
and delivery system
SWOT analysis - CORRECT ANSWER - strengths, weaknesses, opportunities, threats
PARETO PRINCIPLE - CORRECT ANSWER - 80/20 Rule
80% of Purchasing Cost is created by
20% of the purchase orders issued
Spend Analysis - CORRECT ANSWER - Collecting, classifying, and analyzing the
expenditures data from all sources within the organization.
PROCUREMENT PROFILE - CORRECT ANSWER - Result produced after conducting a
series of various analyses on the procurement expenditures of an organization, the range of
commodities and services acquired through procurement. Adds decision making intelligence to
spend analysis.
BUYING PLAN - CORRECT ANSWER - Based on demand, market and supplier analysis
EVALUATION STRATEGIES - CORRECT ANSWER - • Price analysis
• Cost analysis
• Life Cycle Costing
RESEARCH TECHNIQUES - CORRECT ANSWER - Procurement professional must use
Market Research to better understand The Who, what, when, why and how in the market.
, MARKET RESEARCH - CORRECT ANSWER - Identify the most beneficial method for
acquiring, distributing and supporting supplies and services
FORECASTING - CORRECT ANSWER - Tool to determine future needs. It should be used
to determine the type of solicitation, such as a spot bid or term contract, based upon market
fluctuations and conditions
PURCHASING MANAGER'S INDEX (PMI) - CORRECT ANSWER - WELL
ESTABLISHED AND RELIABLE INDICATOR THAT IDENTIFIES HIGHS AND LOWS IN
THE ECONOMY
FIXED PERIOD AVERAGE - CORRECT ANSWER - A mathematical calculation used to
divide the total usage for a fixed period (generally 12 months). This method will reflect old
patterns and not current directions.
Moving Average Method - CORRECT ANSWER - Continuous average method used to gather
the most current usage information about an item, by taking current trends into accountant
always using the most recent data.
weighted moving average method - CORRECT ANSWER - Builds even more accuracy into
the system by giving more significance to weighting specific information such as seasonal
variations
Mean Absolute Deviation (MAD) - CORRECT ANSWER - Importance of using deviations in
forecasting is the ability to look at anticipated high and low side of any given forecast.
Absolute Value of Errors/Number of Errors
The smaller/lower the value of MAD, the more accurate the forecast.
FORECAST DATA - CORRECT ANSWER - Provides knowledge of the economy and serves
as basis to predict what will occur in the future. Examination of current and past economic trends
and pricing is critical to planning.
