Download 2 CPPA MODULE 4 FINAL EXAMINATION 2026 QUESTIONS WITH SOLUTIONS and more Exams Reasoning in PDF only on Docsity!
2 CPPA MODULE 4 FINAL EXAMINATION
2026 QUESTIONS WITH SOLUTIONS
>> Prior to nineties, what two regulations dictated property management industry?
- Federal Property Management Regulations (FPMR), for non-federal employees
Answer: 1. Federal Acquisition Regulation (FAR) part 45 "Government Property"
>> In NPMA, what is meant by "property"?
Answer: Government property
>> What is the goal of the American National Standards Institute (ANSI)?
Answer: To enhance both the global competitiveness of the U.S. Business and the U.S. quality of life by promoting and facilitating voluntary consensus standards and conformity assessment systems while safeguarding their integrity.
>> What department of our government does the National Institute of Standards and Technology (NSIT) a part of?
Answer: Department of Commerce
>> When did the National Institute of Standards and Technology (NISIT) sign a memorandum of understanding with the American National Standards Institute (ANSI) and what did it pertain to?
- To enhance and strengthen the U.S. voluntary standards system through strong public-private sector interaction
Answer: - 1995
>> What act was passed in 1995 which coincided with American National Standards Institute (ANSI) - National Institute of Standards and Technology (NIST) memorandum of understanding?
Answer: The National Technology Transfer and Advancement Act of 1995 (P.L. 104-113) (NTTAA)
>> What did (P.L 104-113) (NTTAA) bridge the gap between?
Answer: Standards developers and the Government agencies that create legislation affecting the standards community
>> The importance of a strong partnership between the private and public sector was strengthen by the revising of what and when?
Answer: - OMB Circular A-119 in 1997
>> What does the acronym OMB?
Answer: Office of Management and Budget
>> What did OMB Circular A-119 accomplish?
Answer: It guided U.S. Government agencies in the implementation of the NTTAA reinforcing the values of Government participation in the voluntary standards system.
>> What is the OMB definition of the term "standard
Answer: The common and repeated use of rules, conditions, guidelines, or characteristics for products or related processes and production methods, an related management systems practices
>> As per OMB A-119, what are voluntary consensus standard bodies?
Answer: They are "domestic or international organizations which plan, develop, establish, or coordinate voluntary consensus standards using agreed-upon procedures
>> What does the general areas of interest of Committee E53 include?
Answer: Standard practices to support all aspects of personal property management, including systems for the management of industrial and Federal state, and local government personal property as well as educational and medical institution property
>> For TC E53, What agencies are currently included for classifications?
- Commercial enterprises
- Federal agencies and departments
- Government contractors
- Service provided, consultants, hardware suppliers, and software suppliers
- Specialists having expert knowledge not otherwise covered by another category of interest
- State and local governments
Answer: 1. Colleges and universities
>> To ensure balance, not more than ____________ of the membership comes from any single category.
Answer: 1/
>> What are the duties of the Technical Committee E53?
- Maintaining standards within its scope
- Achieving a consensus for the action proposed on a standard
- Ensuring that duplication of standards is minimized
- Not promulgating conflicting standards
- Providing for interpretations of standards within its scope, if applicable, as determined by the COTCO
- Reporting the status of standards within its scope to the COTCO at least annually
Answer: - Developing standards within its scope
>> What are the specific areas of Committee E53?
Answer: They include all aspects of personal property management from the determination of needs and initial acquisition through final disposition, including receipt, identification and marking, record keeping, custodial and administrative accountability, reporting, consumption, maintenance, movement, storage, inventory, control utilization, and disposition.
>> What is the purpose of the ASTM International Bylaws?
Answer: It assigns the supervision of standards activities to the Committee on Technical Committee Operations (COTCO).
>> What does the COTCO manage?
Answer: It manages the development of standards through the establishment and supervision of one or more Technical Committees (TC) by specific functional areas
>> What are the COTCO's responsibilities with respect to standards development and maintenance by TCs?
- Ensuring that any TC under its jurisdiction is operating with its approved scope and according to ASTM International-compliant procedures
- Ensuring that TCs with the charter of the Committee are providing due process
- Providing a forum for hearing appeals of actions or inaction by TCs
Answer: - Approving and discharging TC personnel
>> Approximately, how many members are on the E53 committee?
Answer: 70 members
>> How many approved standards does the 70 members of the E53 committee have jurisdiction over??
Answer: 12
>> Where are the 12 approved standards of E53 committee published?
Answer: in the Annual Book of ATSM Standards, Vol. 4.
>> If property must be acquired to meet organization objectives, who should be involved from beginning in the planning process?
Answer: Property Manager
>> To be effective in requirement determination, what must the property manager aware of?
Answer: The overall picture including organizational objectives, the target dates for achieving them, any funding restrictions, and the type and quantity of property needed
>> Since most organizations' asset bases far exceed their annual payroll value, what can be done by reducing these two areas to get a bigger benefit than larger gains in productivity?
- Reduction of holding property
Answer: 1. Reduce the cost of acquiring
>> Besides looking very closely at the organization's objectives, what role does the Property Manager play in the resource allocation process and in all aspects of the planning and acquisition of organization assets?
- Development of requirements based on all known equipment and general-purpose facility needs for the future year/s
- Separation of organization-funded items into those which must be capitalized and those which will be expensed
- Prioritization of needs on a reasonable and consistent basis
- Funds allocation by higher management
- Submission by each department of a single list of requested projects
- Capital budget review to include recommendations by property management for additional items from the departmental planning process
- Creation of the final budget and communicating of a final list of all approved capital projects to the respective departments
- Creation, refinement, and finalization of a depreciation projection
- Substitutions, additions, or cost increase and their attendant modifications to the capital plan
Answer: - Review by each department of its plans with respect to the organization's strategic plan
>> During the resource allocation process, who does the Property Management Office provide concise, complete monthly updates to?
Answer: The accounting office and higher management
>> What must the Capital Planning process take into account when dealing with current and future commitments?
- Meet all environmental and safety obligations
- Establish future strategic capabilities
- Provide for future new business development
Answer: - Provide equipment and facilities to support current contract obligations and customer needs
>> What information must be reviewed and analyzed pertaining to Capital Investment requests?
- Request will not duplicate available existing equipment or facilities
- Property requested will be compatible with existing and currently planned equipment or facility acquisitions
- Property requested has the technical capability to meet the need for which it has been requested
- Proper account codes have been used, consistent with policies and procedures and if appropriate, with the Disclosure Statement
Answer: - Acquisition of the property would be consistent with the overall strategic plan
>> What is the process outline for requirements determination?
- Process
- Developing Requirements
- Determination of Capital Items (Organization Funded)
- Prioritization
- Allocation of Funds
- Department Submissions
>> What is meant by Capital Items?
Answer: Items which are Organization Funded
>> When equipment and general purpose facility item requirements have been determined, what is the next step in the Determination of Capital Items?
Answer: Items which must be capitalized and those which will be expensed must be separated IAW the organization's capitalization criteria.
>> What basis is given at the department level to prioritize the necessary investment items and what are they? A. Support for existing business requirements B. Support for potential work under new contracts c. New business development D. Environment, health, and safety E. Infrastructure F. Cost reduction and productivity improvement G. Maintenance and replacement
Answer: Reasonable and consistent basis
>> What priorization basis places the highest priority on property that is necessary to support contract efforts?
Answer: Support for existing business requirement which satisfies all known contracts that have been awarded
>> What two conditions which exist under the prioritization of support for potential work under new contracts?
- If contract does not develop which funds have been allocated, funds must be re-prioritized for other projects
Answer: 1. Property that may be required to support new contracts should be considered on a probability basis, with higher priority given to work that is more likely to be awarded
>> What two conditions which exist under the prioritization of environment, health, and safety?
- Preserve the safety and well-being of employees Critical items are addressed first
Answer: 1. Attention must be given to those investments necessary to meet Government regulations
>> What the basis of priorization for Cost reduction and productivity improvement? Bottom line..... Higher-return projects should receive higher priority
Answer: Prioritization is done on the basis of the comparative return for the investment made, where return is defined as the cost savings or productivity improvement generated vs. the initial investment expressed in terms of net present value (NPV).
>> If items improve productivity or are needed for new business they should be placed in what priority category?
Answer: Maintenance and replacement
>> What is considered a carry-over project?
Answer: Any project that were not funded during the previous fiscal year but for which a valid need still exists.
>> How does a carry-over item/project affect a department's current projected allocation of funds?
Answer: It reduces the owning department's current projected allocation prior to establishing new commitments
>> When should requisitions for capital equipment be submitted for inclusion into the next fiscal year's budget?
Answer: 45 days prior to the fiscal year end which facilitates getting all current-year requests processed prior to year-end.
>> What two departments work together and projects the depreciation expense of existing assets and those approved for the next and subsequent fiscal years?
Answer: - Property Management
>> When does distribution the Depreciation Projection begin and describe the complete process?
- Projections are provided on a preliminary basis and are refined through the planning period up to the point when final department capital budgets have been determined.
Answer: - It begins shortly after the time of the initial department submissions
>> Prior to the generation of purchase requisitions for capital investment items involving substitution, additions, or cost increase, what action needs to take place?
Answer: The requests should be processed IAW internal department procedures
>> What action needs to be determined by the requesting department when making a decision on substitution, addition, or cost increase and how it will affect the Capital Investment Plan?
Answer: Whether the substitution, addition, or cost increase can be absorbed within its existing Capital Investment Plan or should a request for additional funds be submitted
>> What standards are guidelines, established by the organization, for determining in what quantity, when and when items or categories are required?
Answer: Use Standards
>> When is equipment replacement forecast advisable?
Answer: In budget preparation
>> To effectively facilitate Use and Replacement Standards, what must the Property Manager conduct?
- Periodic reviews of departments to identify underutilized or uneeded property which can be reassigned or which can be pooled to facilitate more economical and efficient use
- Periodic analysis of new personal property items whose acquisition could result in lower total costs through greater productivity, reduced maintenance costs, or longer service life
- Periodic maintenance programs to extend the useful service life of existing property
Answer: - The coordination of the receipt of new personal property with the anticipated need for the the replacement of existing property
>> What must the Property Manager do to justify the replacement of items when further expenditure of funds for maintenance is uneconomical?
Answer: Maintain records on maintenance costs to justify the replacement of such items
>> What are replacement standards?
Answer: Factors that should be considered in making a decision as to whether to repair or replace a piece of equipment
>> What should be used when "use or replacement standards" have not be established?
Answer: Written Justification which is presented to that level of management authorized to grant approval
>> When the requisition based on the approval of a written justification, what is the disposition of the justification?
Answer: It must be incorporated into the requisition or shown as an attachment
>> What is the task of Property Management?
Answer: Something that is "consumed" upon being issued and once issued, all accountability of the item ceases to exist
>> What are expendables?
Answer: Items that are acquired and used to perform a function until they are used or worn out... drill bits and small tools
>> What determines the scale and degree of complexity of warehouse system and it's uses for stocking consumables?
- Mission
- Size Geographical dispersion
- other factors
Answer: - The organization's structure
>> What are three considerations of stocking consumables?
- Stock costs money - if not used in a reasonable time actual cost increases due to cost of storage
- Shelf life or obsolescence may render it excess before it ever gets issued
Answer: 1. Access to stock along with physical access and delivery capabilities, communication between warehouse and users is extremely important
>> What is the obvious disadvantage of a central warehouse for consumables? It includes the land, the facility, equipment, and the manning of the warehouse
Answer: - Cost
>> What are the advantages of having a central warehouse for consumables which have to outweigh the costs and other disadvantages of operating a facility?
- Cost advantages can be gained because of quantity discounts
- Time is saved because end users do not have to research to find best item at best price
- Great avenue for controlling costs and adhering to governmental and/or
cooperate purchasing procedures
- Warehouse can handle retrograde and used-up consumables thus serving a dual purpose
Answer: - Central warehouse permits the centralized purchase of consumables with dedicated personnel whose job it is to find the best products for the best available prices
>> Requirement determination for consumable stock begins with what assessment?
Answer: Needs assessment
>> Consumables program cannot exist without what?
- establishing consumable stock process
- determine who receives it
- how it is stocked
- how it is issued
- having a tracking system in place to determine and review stock levels
Answer: - Determining consumables requirements
>> In order to catalog consumable stock, what is recommended as a minimum to categorize or group common items?
- Unit of measure and unit of issue
- Cost per unit
- Manufacturer
- National Institute of Governmental Purchasing (NGIP) code for public sector purchasing
- Class or Commodity code
Answer: - Short description
>> In order to maintain the proper stock levels, it is necessary to manage these two items? Re-order Quantity (ROQ)
Answer: Re-order Point (ROP)
>> What is the outcome of proper planning and controlling consumable inventory?
- A high service level
- A high inventory turnover rate
Answer: - A low dollar investment
>> What factors make the ABC Plan work?
Answer: The ROP and ROQ for each category in the plan/item
>> What does the ABC plan measure?
Answer: It measures the cost importance of each item demanded from a stock account dividing the inventory into three categories (A,B, and C) based on dollar value of demands
>> What does Category A account for in the ABC plan in a stock account?
- These items deserve the most management attention since the dollar value of their demands is high resulting in the greatest impact on inventory turnover
Answer: A category" accounts for approximately 75% of the dollar value of warehouse demand and is usually about 10% of the total number of stock records
>> When should the ROPs and ROQs be reviewed for Category A?
Answer: Reviewed at least quarterly
>> When should items in Category A be ordered and why?
Answer: They should be ordered frequently to reduce the dollar value of inventory in stock account
>> What level should the Safety Stock be for Category A stock account?
Answer: It should low as possible without risking stock outages
>> What does Category B account for in the ABC plan in a stock account? Moderate management attention should be applied to these items due to their low impact on both dollar investment and inventory turnover is smaller
Answer: B category accounts for approximately 15% of the dollar value of the warehouse demand and about 15% of the stock records.
>> When should items in Category B be ordered?
Answer: May be ordered two to six times per year depending on demand
>> What level should the Safety Stock be for Category B stock account?
Answer: Safety stock should be at a moderate level, 30 to 60 days
>> What does Category C account for in the ABC plan in a stock account? Items in this category receive the least management attention due to their low impact
Answer: C Category accounts for only 10% to 15% of the dollar value but makes up the remaining 75% of the items in the stock records.
>> When should items in Category C be ordered?
Answer: once or twice a year
>> What level should the Safety Stock be for Category C stock account?
Answer: Safety stock maybe large since the dollar investment in inventory is low
>> When should the ROPs and ROQs for each category in the ABC Selective Stock Plan be reviewed? B - Quarterly or semi-annually C- Updated at least annually
Answer: A - Quarterly
>> When should Sample Inventories be conducted on Category A items?
