CPP – Cerified Purchasing Professional

Welcome to your CPP - Cerified Purchasing Professional

Duration of test : 60 Minutes ( 1 Hour )

Only 1 Attempt will be given to each student.

After 60 Minutes time, Exam will be terminated automatically.

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1.

What is procurement management?

Deselect Answer

The process of purchasing goods and services

The process of selling goods and services

The process of marketing goods and services

The process of managing production operations

2.

What is the first step in the procurement cycle?

Deselect Answer

Contracting

Sourcing

Evaluation

Planning

3.

What is the key objective of negotiation in procurement?

Deselect Answer

To secure the lowest price

To establish long-term relationships with suppliers

To ensure timely delivery of goods

To reduce risks in the supply chain

4.

What is the purpose of a procurement contract?

Deselect Answer

To specify the terms and conditions of the procurement

To outline the payment schedule

To describe the technical specifications of the procurement

To establish the delivery deadlines

5.

What is the concept of total cost of ownership (TCO) in procurement?

Deselect Answer

The total amount spent on procurement activities in a year

The total value of goods and services acquired from suppliers

The total cost of acquiring and maintaining a product or service over its lifecycle

The total cost of shipping and handling for procurement activities

6.

What is a key consideration in global sourcing?

Deselect Answer

Cultural differences

Shipping costs

Intellectual property protection

All of the above

7.

How can you ensure fair and transparent procurement processes?

Deselect Answer

Implementing clear policies and procedures

Conducting fair and open bidding processes

Avoiding conflicts of interest

All of the above

8.

What is procurement management primarily concerned with?

Deselect Answer

Hiring and training employees

Managing financial resources

Sourcing and acquiring goods and services

Developing marketing strategies

9.

What is the first stage of the procurement cycle?

Deselect Answer

Delivery

Evaluation

Planning

Sourcing

10.

Which of the following is an example of a primary stakeholder in the procurement process?

Deselect Answer

Customers

Shareholders

Competitors

Sales representatives

11.

What is the difference between a request for quotation (RFQ) and a request for proposal (RFP)?

Deselect Answer

RFQ is more detailed than RFP

RFQ is used for goods, RFP for services

RFQ is used for small purchases, RFP for large purchases

RFQ includes technical specifications, RFP includes pricing information

12.

Which of the following is NOT a criterion for evaluating suppliers?

Deselect Answer

Quality of goods/services

Price competitiveness

Revenue of the supplier company

Supplier's financial stability

13.

What is the key principle of effective negotiation in procurement?

Deselect Answer

Maintaining a competitive mindset

Establishing long-term relationships

Maximizing cost savings

Demonstrating decisiveness

14.

What is a procurement contract?

Deselect Answer

A legal document that outlines the terms and conditions of a purchase

A document that lists potential suppliers and their contact information

An agreement between the procurement team and stakeholders

A document that specifies the project timeline for procurement activities

15.

Steps in Negotiation:

Deselect Answer

Preparation, negotiation, evaluation, closure

Analysis, collaboration, verification, implementation

Research, decision-making, communication, monitoring

Planning, discussion, resolution, follow-up

16.

Procurement Methods:

Deselect Answer

Open bidding, selective bidding, direct negotiation

Competitive bidding, sole sourcing, spot purchasing

Reverse auction, framework agreement, public tender

Request for proposal, request for quote, request for information

17.

Purchasing Goals and Objectives:

Deselect Answer

Cost reduction, quality improvement, supplier collaboration

On-time delivery, risk mitigation, market expansion

Sustainability, innovation, supply chain visibility

Compliance, inventory optimization, customer satisfaction

18.

Management Functions in Procurement:

Deselect Answer

Planning, organizing, controlling, leading

Inventory management, demand forecasting, supplier selection, negotiation

Contract administration, market research, budgeting, risk assessment

Supplier development, logistics management, performance measurement, strategic sourcing

19.

Types of Purchasing Contracts:

Deselect Answer

Fixed-price contract, cost-plus contract, time and material contract

Indefinite quantity contract, indefinite delivery contract, firm-fixed contract

Unit price contract, letter of intent, blanket purchase agreement

Master agreement, single-source contract, variable pricing contract

20.

Steps in Global Sourcing:

Deselect Answer

Supplier identification, evaluation, negotiation, contract signing

Market analysis, supplier selection, logistics planning, risk assessment

Request for quotation, supplier qualification, customs clearance, payment processing

Language translation, cultural understanding, legal compliance, supply chain integration

21.

Strategies for Global Sourcing:

Deselect Answer

Single sourcing, dual sourcing, regional sourcing

Offshoring, reshoring, nearshoring

Low-cost country sourcing, strategic alliance, contract manufacturing

JIT sourcing, consignment, vendor-managed inventory

22.

What is a purchase order?

Deselect Answer

A document issued by a buyer to a seller to request goods or services

A legal agreement between a buyer and a seller

A document used for tracking inventory levels

23.

Which of the following is not typically included in a purchase order?

Deselect Answer

Price and quantity of the items ordered

Delivery address and contact information

Payment terms and method

24.

What is the purpose of a purchase order?

Deselect Answer

To confirm the order details and protect both parties

To negotiate the price and terms of the purchase

To track and manage inventory levels

25.

Who typically initiates a purchase order?

Deselect Answer

The seller or supplier

The procurement manager or buyer

The finance department or accounts payable

26.

What is a blanket purchase order?

Deselect Answer

A purchase order for a large quantity of goods or services

A purchase order with a fixed expiration date

A purchase order that covers multiple deliveries over a specific period

27.

What is the process for amending a purchase order?

Deselect Answer

It cannot be amended once issued

The buyer needs to cancel the existing purchase order and create a new one

The buyer and supplier need to mutually agree on the changes and update the purchase order

28.

What is the purpose of a purchase order acknowledgement?

Deselect Answer

To confirm the receipt and acceptance of the purchase order by the supplier

To request additional information or clarification from the buyer

To provide tracking details for the delivery of the goods or services

29.

What is the first step in the purchasing cycle?

Deselect Answer

Vendor selection

Purchase requisition

Purchase order approval

Goods receipt

30.

Which of the following is not a step in the purchasing cycle?

Deselect Answer

Invoice verification

Vendor evaluation

Contract negotiation

Payment processing

31.

What is the purpose of conducting a vendor evaluation during the purchasing cycle?

Deselect Answer

To assess the quality of the goods or services provided

To negotiate prices and payment terms with the vendor

To approve purchase orders from the selected vendor

To track the delivery of goods from the vendor

32.

Which step in the purchasing cycle involves comparing different supplier quotations?

Deselect Answer

Purchase order creation

Purchase requisition approval

Vendor selection

Purchase order acknowledgement

33.

What is the purpose of invoice verification in the purchasing cycle?

Deselect Answer

To authorize the payment to the vendor

To confirm the purchase order details

To assess the quality of the received goods or services

To track the delivery of goods from the vendor

34.

What is the purpose of purchase order approval in the purchasing cycle?

Deselect Answer

To authorize the purchase order creation

To review and confirm the supplier's delivery

To evaluate and select the preferred vendor

To ensure compliance with company procurement policies

35.

What is procurement management?

Deselect Answer

The management of purchasing department activities

The management of supplier relationships

The management of inventory control

The management of budgeting and funding

36.

What is the primary goal of procurement management?

Deselect Answer

Maximizing profits

Minimizing costs

Achieving customer satisfaction

Improving supplier relationships

37.

What is the first stage of the procurement cycle?

Deselect Answer

Planning

Sourcing

Contracting

Evaluation

38.

What is the process of evaluating and comparing supplier proposals called?

Deselect Answer

Request for quotation (RFQ)

Request for proposal (RFP)

Quotation analysis

Proposal evaluation

39.

What is the purpose of post-procurement evaluation?

Deselect Answer

Assessing the effectiveness of procurement activities

Identifying potential risks and issues

Determining supplier performance

Benchmarking against competitors

40.

What is the concept of total cost of ownership (TCO) in procurement?

Deselect Answer

The total cost of purchasing a single item

The total cost of all procurement activities in a year

The total cost of owning and maintaining an asset throughout its lifecycle

The total cost of all salaries and overhead expenses in the procurement department

41.

Which of the following best defines procurement?

Deselect Answer

The process of selling goods to customers

The process of buying goods or services for an organization

The process of marketing products to potential buyers

The process of managing financial transactions

42.

What is the first stage of the procurement cycle?

Deselect Answer

Contracting

Sourcing

Evaluation

Delivery

43.

How is market research used in procurement?

Deselect Answer

To evaluate supplier performance

To identify potential suppliers

To track customer satisfaction

To analyze financial data

44.

What is the final stage of the procurement cycle?

Deselect Answer

Evaluation

Sourcing

Contracting

Delivery

45.

What is the importance of continuous learning in procurement?

Deselect Answer

To minimize supplier risk

To improve negotiation skills

To meet changing market demands and industry trends

To satisfy customer demands and preferences

46.

How can procurement professionals optimize transportation routes?

Deselect Answer

By negotiating lower transportation costs with suppliers

By using advanced route optimization software

By collaborating with competitors to share transportation resources

By outsourcing transportation management to logistics companies

47.

What are the risks associated with global sourcing?

Deselect Answer

Increased transportation costs

Language and cultural barriers

Longer lead times

All of the above

48.

What is an RFI in procurement?

Deselect Answer

Request for Information

Request for Investment

Request for Inspection

Request for Invoice

49.

What is the purpose of an RFP in procurement?

Deselect Answer

Request for Purchasing

Request for Pricing

Request for Proposal

Request for Payment

50.

What is the purpose of a Statement of Work (SOW)?

Deselect Answer

To list the scope of work to be performed

To provide payment instructions

To request pricing information

To issue a purchase order

51.

What is a Bill of Materials (BOM)?

Deselect Answer

A list of items needed for a project or product

A list of suppliers for a procurement process

A list of manufacturing facilities

A list of payment terms for a purchase

52.

A purchase order is:

Deselect Answer

An agreement between a buyer and a seller

A request for information from potential suppliers

A document describing the scope of work for a project

A list of materials needed for production

53.

What is the purpose of a Statement of Work (SOW) in procurement?

Deselect Answer

To request information from suppliers

To define the scope of work for a project or service

To issue a purchase order to a supplier

To evaluate supplier performance

54.

What is the primary advantage of catalogue purchasing?

Deselect Answer

Streamlined procurement process

Negotiation flexibility with suppliers

Customization of purchased items

Direct access to suppliers' websites

55.

What is the principle of "value for money" in procurement?

Deselect Answer

Opting for the lowest-cost option

Selecting the most expensive option

Balancing cost and quality

Ignoring cost considerations

56.

What is the importance of competition in procurement?

Deselect Answer

Establishing a monopoly in the market

Eliminating competition among suppliers

Promoting a level playing field

Giving preferential treatment to certain suppliers

57.

What does efficiency in procurement refer to?

Deselect Answer

Wasting time and resources

Streamlining processes and reducing waste

Delaying procurement activities

Overcomplicating procedures

58.

What does accountability in procurement refer to?

Deselect Answer

Avoiding responsibility for procurement decisions

Assigning blame to suppliers

Taking ownership of procurement outcomes

Ignoring feedback and suggestions

59.

Which principle demands that procurement activities be conducted in a cost-effective manner?

Deselect Answer

Accountability

Value for money

Competition

Efficiency

60.

Which principle ensures that procurement decisions are subject to review and evaluation?

Deselect Answer

Accountability

Integrity

Value for money

Fairness

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CPP – Cerified Purchasing Professional

CPP – Cerified Purchasing Professional

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