CPPB Exam Questions and Correct
Solutions Latest Updated
Procurement Technology - CORRECT ANSWER-Helps accelerate business
improvements
Results Oriented Budgeting - CORRECT ANSWER-Attempts to link a resource
allocation to performance criteria
Budget Cycle - CORRECT ANSWER-1. Planning 2. Formalization 3. implementation 4.
evaluation
Procurement Cards - CORRECT ANSWER-payment method whereby internal
customers are empowered to deal directly with suppliers using a credit card
Four principles of negotiation - CORRECT ANSWER-1. separate people from the
problem
2. create a variety of options before deciding which to pursue
3. focus on interests, not positions
4. use objective criteria
people elements to negotiation - CORRECT ANSWER-differences of perception,
emotions, communications
differences of perception - CORRECT ANSWER-it is crucial for both sides to
understand the other's viewpoint
emotions - CORRECT ANSWER-negotiation can be a frustrating process
communications - CORRECT ANSWER-negotiators may not be speaking to each other,
but may simply be grandstanding for their respective constituencies
establish a BATNA - CORRECT ANSWER-The Best Alternative To a Negotiated
Agreement
stonewalling - CORRECT ANSWER-this occurs when one side has no intention of
reaching an agreement unless there is an irresistible offer.
good samaritan - CORRECT ANSWER-the other side is using this technique when it
acts as if it is doing you a favor or making a great sacrifice with its offer in order to put
you off guard and persuade you to accept it
,opposition negotiation tactics - CORRECT ANSWER-stonewalling, good samaritan,
take it or leave it, splitting the difference, nickel and dime, good/bad cop, pity me, piece-
by-piece, total package, refusal to negotiate, status, escalating demands, divide and
conquer, defense, win/win
take it or leave it - CORRECT ANSWER-when the other side has made its final offer
and says it will no longer negotiate
splitting the difference - CORRECT ANSWER-this involves offering to cut the dollar
difference in half, thus avoiding the discussion of the details of the deal
nickel and dime - CORRECT ANSWER-the other side wants to negotiate each and
every point
good/bad cop - CORRECT ANSWER-this tactic is used to elicit feelings of sympathy
and understanding in order to get concessions
pity me - CORRECT ANSWER-this tactic is designed to rely on the sense of fair play
and make it hard to walk away
piece-by-piece - CORRECT ANSWER-this tactic is used to negotiate each item of a
contract
total package - CORRECT ANSWER-this tactic is used when an offer is acceptable, but
one or two major elements still need to be negotiated.
refusal to negotiate - CORRECT ANSWER-in this tactic the other side wants a
concession even to talk
status - CORRECT ANSWER-sometimes the party you are negotiating with is perceived
to have a higher status, such as when the president of a company personally negotiates
with a buyer.
escalating demands - CORRECT ANSWER-extreme demands may be made to
persuade you to lower your expectations for a final agreement.
divide and conquer - CORRECT ANSWER-this is used to persuade various members of
the team to accept the opposition's position
defense - CORRECT ANSWER-this tactic tries to keep the other side on the defensive
negotiation tactics - CORRECT ANSWER-win/win, spiraling agreements, changing of
position, gathering information, making the cake bigger
win/win - CORRECT ANSWER-the goal of principled negotiation is that the interests of
both parties are satisfied
, spiraling agreements - CORRECT ANSWER-begin by reaching a minimum agreement
even though it is not related to the objectives and build, bit by bit, on this first agreement
changing of position - CORRECT ANSWER-formulate the proposals in a different way,
without changing the final result
gathering information - CORRECT ANSWER-ask for information from the other party to
clarify their position
making the cake bigger - CORRECT ANSWER-offer alternatives that may be agreeable
to the other party, without changing the terms
four activities of a price analysis - CORRECT ANSWER-1. review the competitive prices
offered
2. compare with catalog or published price data
3. compare with historical prices
4. obtain data from other jurisdictions that have procured the same product or service
Conflict resolution - CORRECT ANSWER-mediation, arbitration, litigation
mediation - CORRECT ANSWER-a voluntary, flexible technique used to resolve
disputes
arbitration - CORRECT ANSWER-a process by which a dispute between parties is
presented to one or more disinterested parties for a decision whose decision the
contending parties agree to accept with no further appear process.
litigation - CORRECT ANSWER-a process by which one party to a contract brings suit
against the other party in a court of law
general conflict resolution skills - CORRECT ANSWER-communication, listening,
summarize, clarify, good speaking skills, communication side-trackers, win-win options,
brainstorming, find a fair solution
communication - CORRECT ANSWER-conflicts are often caused by problems in
communication
listening - CORRECT ANSWER-it is important to listen carefully
summarize - CORRECT ANSWER-when a person is finished expressing a thought,
summarize the facts and emotions behind what they have said so that they know you
have understood what they've said and how they are feeling.
clarify - CORRECT ANSWER-ask questions to clarify or make clearer different parts of
the problem to make sure that you fully understand the other person's perspective
