CPPB Test Questions with Correct Answers
Efficiency measures - Answer-The ratio of inputs to outputs or outcomes.
Outcomes - Answer-- Assess results of an activity and show whether expected results were achieved.
- Must be bench marked against departments and outside organizations.
Inputs ...
CPPB Test Questions with Correct
Answers
Efficiency measures - Answer-The ratio of inputs to outputs or outcomes.
Outcomes - Answer-- Assess results of an activity and show whether expected results
were achieved.
- Must be bench marked against departments and outside organizations.
Inputs - Answer-Measures resources used (includes labor, materials, equipment,
supplies)
Outputs - Answer-Record activity or effort that can be expressed in quantitative or
qualitative manner (ex: number of new contracts, total spend)
Common procurement performance measurement criteria - Answer-ex: cycle time
inventory turns
customer satisfaction
number of disputes
Key characteristics of manuals - Answer-- Well organized, clear and easy to understand
- clear definition of the purpose and a consistent approach to decision making
- framework for training
- flexible
- endorsed by the CEO
- supplier outreach info
- transparent
- facilitate revision
Budgeting methods - Answer-Performance-based
Zero-based
Line item
Supplier manuals - Answer-Provide formal and extensive information for suppliers
seeking to do business with the organization.
,Policy manuals - Answer-Centrally written, controlled, and used to guide behavior
toward specific organizational objectives.
Ex: a policy that directs us to buy local or a policy that encourages and promotes
recycling.
Implied authority - Answer-Authority that is not defined expressly but is only determined
by inferences and reasonable deductions arising out of the conduct of the principal
toward the agent and the agent's actions.
Express authority - Answer-Authority that is explicitly given in direct language, rather
than inferred from conduct.
Pre-consumer material - Answer-Those that are left over in the manufacturing process
and then reused in a consumer product.
Post-consumer material - Answer-Materials that have been used by consumers,
recycled, and reprocessed back into a consumer product.
Substitute - Answer-Use less hazardous, more environmentally preferable commodity
whenever possible.
Recycle - Answer-Recycle commodities that cannot be reused in their present form
(paper, cans, toner cartridges)
Reuse - Answer-Reuse the commodities that can be repurposed (ex: wooden pallets,
shipping containers)
Reduce - Answer-A buyer can add language to solicitation -
reduce the amount of waste by requiring certain commodities be made with recycled
content and reducing the amount of packaging.
Key terms of sustainabiltiy - Answer-Reduce
Reuse
Recycle
Substitute
Preference - Answer-An advantage given to bidders in a competition for contract award
which may be granted based on pre-established criteria such as MBE, SBE
eSourcing - Answer-The process of obtaining bids from different suppliers via a single
online portal.
eCommerce - Answer-The integration of electronic data interchange, electronic funds
transfer,and similar techniques into a comprehensive electronic-based system of
procurement functions.
,eProcurement - Answer-Conducting all or some of the procurement function over the
Internet.
Higher level management reports - Answer-Issued to senior management and other key
personnel.
Interdepartmental reports - Answer-to be issued to other departments on a need-to-
know basis.
Intradepartmental reports - Answer-provide information to management regarding
departmental matters.
Phases to any evaluation process - Answer-1. planning
2. data collecting
3. decision making based on findings and recommendations
Performance audits - Answer-Review all the operations of a governmental unit and
encompass the following types of audits:
- financial
- economy
- efficiency
-program results
Program audits or evaluations - Answer-These audits monitor results to determine the
extent to which a governmental unit has achieved program objectives.
Economy and efficiency audits - Answer-They are management or operational audits.
They examine a governmental unit's managerial and administrative practices for
economy and cost efficiency and strive to identify the cause of any cost inefficiencies.
Procedures manuals - Answer-- Written at a finer level of detail that sets out processes,
forms, and steps.
- Used primarily by the end user and procurement staff.
Make or buy analysis - Answer-- Ensure all costs are considered.
- Evaluate only costs that differ between providers.
- Ensure costs evaluated are for the same level of service and quality.
Other types of solicitation methods - Answer-- Notice of intent (NOI)
- Small dollar / pCard
- Emergency procurement
- Sole Source
Used to gather information that will be used in an RFP - Answer-RFI, LOI (letter of
interest), pre-solicitation conference
, Solicitation methods award contracts to bidder whose solutions offer the best overall
value. - Answer-RFP, ITN (invitation to negotiate), RFQu
Phases of any audit or evaluation process. - Answer-- Planning
- Collecting data
- Decision making (based on findings and recommendations)
Statement of work - Answer-The proposed solution by the successful proposer
responding to the Scope of Work in the solicitation.
Process improvement - Answer-- A systematic approach to help any organization make
significant changes in the way it does business.
- The increase in value resulting from a modification in any phase of the purchasing
and/or supply process.
- Each step in a process should add value to either the customer or organization.
pCard - Answer-- A payment method.
- A fast, flexible purchasing and payment tool that provides an extremely efficient and
effective method for acquiring goods and services.
- Designed to reduce cost while preserving procurement controls without the time and
expense associated with the normal PO process.
budgeting - Answer-the allocation of scarce resources among competing demands
allotment - Answer-controls the rate of spending authorized by an appropriation
allocation - Answer-controls specific use of the monies appropriated
cash basis accounting - Answer-income is not counted until cash (or check) is actually
received, and expenses are not counted until they are actually paid.
accrual basis accounting - Answer-Transactions are recognized at the time they are
incurred, as opposed to when cash is received or spent.
encumber funds - Answer-To set aside or commit funds for a specified future
expenditure.
policy document - Answer-a good budget should articulate the program priorities and
goals
operations guide - Answer-a good budget should indicate the allocation of resources
and the performance objectives and measures of the various departments, programs,
and activities.
financial plan - Answer-a good financial plant or budget should indicate the sources of
revenue or any debt financing
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