Exam (elaborations)
CERTIFIED PURCHASING PROFESSIONAL (CPP) EXAM 2024/2025 UPDATED
CERTIFIED PURCHASING
PROFESSIONAL (CPP) EXAM 2024/2025
UPDATED
ApparentlAuthoritylorlOstensiblelAuthorityl-lCORRECTlANSWERusedltolreferltolthelpersonlwholseemsltolhavelbeenlauthorizedlbylthelprincipallaslanlagentltol
makelagreementslthatlmustlbelhonoredlbylthelprincipal.
AcidlTestl-lCORRE...
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CERTIFIED PURCHASING
PROFESSIONAL (CPP) EXAM 2024/2025
UPDATED.
ApparentlAuthoritylorlOstensiblelAuthorityl-lCORRECTlANSWER-
usedltolreferltolthelpersonlwholseemsltolhavelbeenlauthorizedlbylthelprincipallaslanlagentltol
makelagreementslthatlmustlbelhonoredlbylthelprincipal.
AcidlTestl-lCORRECTlANSWER-
Samelaslquicklratio,lincludeslonlylthoselassetslinlthelnumeratorloflthelratioloflassetslcompar
edlwithlliabilitieslthatlcanlbelquicklylconvertedltolcash.
A.S.T.Ml-lCORRECTlANSWER-
AnlabbreviationlforlthelAmericanlSocietylforlTestinglandlMaterials,lanlorganizationlthatldev
elopslandlpublisheslstandardlspecificationslonlmanylproducts
BillloflLandingl-lCORRECTlANSWER-
alreceiptlthatlalshipperlreceiveslfromlthelcarrierlforlthelgoodslshipped
BillloflMateriall-lCORRECTlANSWER-
allistloflitemslneeded,lsometimesldividedlbetweenlitemsltolbelpurchasedlandlitemsltolbelass
embledlorlmanufactured.
Breachl(oflContract)l-lCORRECTlANSWER-failureltolperformlpartloflthelagreement
CaveatlEmptorl-lCORRECTlANSWER-Latinlforl"buyerlbeware"
CommonlLawl-lCORRECTlANSWER-
thelportionlofllawlinheritedlfromlthelEnglishlsystemlandlwhichlislbasedlonlpreviousldecisionl
beforelthelcourt.lThelmostlrecentldecisionslandlthelclosestljurisdictionslcarrylmorelweightlth
anlthoselthatlarelolderlorlmoreldistant.
Considerationl-lCORRECTlANSWER-
somethingloflvaluelgivenlinlreturnlforlanlagreedlperformanceloflalcontract
ConsequentiallDamagesl-lCORRECTlANSWER-
harmlorlcostslwhichlresultlfromlsomelinjurylotherlthanlthelharmlorlcostloflthelinjurylitself
Contractl-lCORRECTlANSWER-anlagreementlorlpromiseltolperformlanlactlinlreturn
, Cross-Dockingl-lCORRECTlANSWER-
Costslarelreducedlbylthelprocessloflreceivinglalproductlandlshippinglitloutlimmediatelylwitho
utlputtinglintolstorage
Currentlratiol-lCORRECTlANSWER-
Thelvalueloflcurrentlassetsldividedlbylthelvalueloflcurrentlliabilities.lItlislanlindicationloflanlorg
anization'slabilityltolmeetlitslcurrentlobligation.
Damagesl-lCORRECTlANSWER-
paymentlaslcompensationlforlanlinjurylorlharmlcausedlbylanotherlpersonlorlorganization
EOQlorlEconomiclOrderlQuantityl-lCORRECTlANSWER-
alquantityltolorderlbasedlonlalformulalcomparinglthelholdinglcostlandlthelrateloflusage
F.A.R.l-lCORRECTlANSWER-FederallAcquisitionlRegulation
F.O.BlFreelOnlBoardl-lCORRECTlANSWER-
inlU.S.ldomesticltransactionslthelnamedllocationlwhereltitlel(ownership)loflthelgoodslpasse
slfromlthelsellerltolthelbuyer
INCOTERMSl-lCORRECTlANSWER-
Internationallbusinessltermslthatlspellloutlproperlabbreviationslandldefinitionslforltimeloflpa
yment,lpaymentldiscounts,lplaceloflownership,landlmodeslofltransportation
Inventorylturnsl-lCORRECTlANSWER-
inventorylturnoverlratiolcalculatedlbyldividinglthelcostloflgoodslsoldlbylthelaveragelinventory
lvalue
ISO-9000l-lCORRECTlANSWER-Establishedlqualitylstandards
LCLlorlLesslCardlLoadl-lCORRECTlANSWER-
thelamountloflgoodslthatldetermineslthelratelandlchargelforlshippinglbyllesslthanlalraillcarllo
ad;lmorelexpensivelthanlalcarload
LTLlorlLesslTrucklLoadl-lCORRECTlANSWER-
thelamountloflgoodslthatldetermineslthelratelandlchargelforlshippinglbyllesslthanlalcompletel
trucklload;lmorelexpensivelthanlaltrucklload
LetterlOflIntentl-lCORRECTlANSWER-
alwrittenlstatementloflthelpreliminarylunderstandingloflpartiesltolanlagreement;lnotlalcontrac
t
Manufacturer'slAgentl-lCORRECTlANSWER-alnon-
salariedlsaleslrepresentativelusuallylhavinglalcontractlwithlthelmanufacturerltolgetlalcommi
ssionlonlproductslsoldlwithinlanlagreedlarea