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NPMA CPPS PRACTICE TEST EXAM
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What is the document most organizations use that describes and conveys the process steps taken to produce a desired result? - correct answer Procedure Which of the following terms means "to possess and have use of property of another with delegated responsibilities"? - correct answer Accountability What element is crucial to the entire process of the property control system? - correct answer Records When does the Acquisition begin? - correct answer Needs have been defined What is the first step of the approval process when making a purchase? - correct answer Obtaining approval to spend budgeted organizational funds
- When a decision has been made to buy new equipment, considerations should be decided, such as: immediate
availability, extended service warranties, and _________. - correct answer Advanced technology When a Purchase Order has been completed, Purchasing should provide a copy of the Purchase Order to property management, the originator, accounts payable, and what other department? - correct answer Receiving What establishes delegation of authority for signature approval thresholds and types of property for those signature levels? - correct answer Organization procedure In organizations having online financial systems, documentation is created electronically and is retained in the system's transaction history. It is often used as part of a three- way match of transactions prior to payment: the PO, the receiving documentation, and the ___________. - correct answer Invoice A ________________________ provides receiving activity information as well as a way to trace items that are lost or misappropriated during the receiving process or during delivery from the receiving area. - correct answer Receiving voucher log
Assets acquired by the subcontractor must be tagged in accordance with the _____________ policies and procedures unless otherwise specified in the subcontract award document.
- correct answer Prime contractor's What is the method of inventory and distribution that moves the oldest items in storage to the location where they will be used first (i.e. there is concern that the items may have a limited shelf-life)? - correct answer FIFO Warehouse operations include several integrated functions, including: - correct answer Space allocation What does using proper temperature and humidity controls in a warehouse environment help ensure? - correct answer Does not deteriorate when being stored Just-in-time (JIT) delivery has both advantages and disadvantages. What is one DISADVANTAGE? - correct answer Increases the costs of purchased goods Which of these is NOT a factor that should be considered when deciding on the appropriate layout of a warehouse? - correct answer Acquisition method of items
When should property that has been taken offsite for approved use be returned? - correct answer During the physical inventory What is the name of the movement document used to track the short-term movement of equipment that may be used by multiple users? - correct answer Equipment log-out form The following characteristics are a factor when selecting a shipping container: Size and weight of item, mode of transportation, manufacturer specifications, and ____________.
- correct answer Physical characteristics What are the two most important things that must be considered when assets are moved from point to point? - correct answer Physical protection and location changes in the records When should the movement of an item be recorded in the property records? - correct answer Following the movement of the item Who is responsible for maintenance and calibration? - correct answer Anyone who observes, uses, or services an item
Periodic inventories are based on what factors if not mandated by specific contract language? - correct answer Type, location, and value of the property Which type of physical inventory would one use if a 100% inventory is not cost effective or used for low cost consumable items? - correct answer Statistical Sampling The Property Manager must establish support and maintain the utilization program by actively participating in the management processes that establish and adjust requirements on which the business is based. Some of these processes are: - correct answer Managing current leases and proposing new leases Using assets provided by another entity for the unauthorized purpose could result in which of the following: - correct answer Create a liability for the organization Which is considered a benefit of property reutilization program?
- correct answer Transfer available excess property among departments in lieu of new purchases To have a reutilization program that works effectively, the property system must: - correct answer Identify excess assets and obsolete items
The primary objectives of an effective utilization management program are: - correct answer To maximize the use of the asset throughout its useful life For future use, items recovered from repair work, rework, testing, or cannibalization are: - correct answer Return to stores What can be prevented with a property consumption program?
- correct answer Loss or theft of inventory A solid consumption program is based on which following item?
- correct answer Identifying requirements Demand changes can affect which of the following? - correct answer Receipt of different items A solid consumption program is based on which of the following items? - correct answer Reviewing and adjusting requirements as needs change When property is damaged or is no longer usable it may still have material value. What is one way to disposition an item
Redundant purchases
