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Incoterms Multiple Choice Questions

Total questions: 70

Worksheet time: 35mins

Name
Class
Date
1.

What does EXW stand for?

a)

Export Warehouse

b)

Ex Works

c)

Exit Way

d)

Exclusive Warranty

2.

Under which Incoterm does the seller bear the least responsibility?

a)

CIF

b)

FOB

c)

EXW

d)

DDP

3.

Which Incoterm places the most responsibility on the seller?

a)

EXW

b)

DAP

c)

DDP

d)

FCA

4.

Which Incoterm is appropriate only for sea or inland waterway transport?

a)

FCA

b)

CIP

c)

FOB

d)

DAP

5.

In FOB, when does the risk transfer to the buyer?

a)

At the buyer's warehouse

b)

When goods are loaded on board

c)

When goods leave the seller’s factory

d)

Upon arrival at destination port

6.

Who is responsible for unloading under DAP?

a)

Seller

b)

Buyer

c)

Both

d)

Freight Company

7.

CIF includes which of the following?

a)

Cost only

b)

Cost and Freight

c)

Cost, Insurance, and Freight

d)

Freight and Duties

8.

Under FCA, who loads the goods at the seller’s premises?

a)

Buyer

b)

Seller

c)

Carrier

d)

Customs

9.

Which Incoterm is used when the seller pays freight and insurance?

a)

FOB

b)

CIF

c)

CIP

d)

DDP

10.

What is the delivery point under EXW?

a)

Port of departure

b)

Seller's premises

c)

Buyer's warehouse

d)

Destination terminal

11.

What does DAP stand for?

a)

Delivered at Port

b)

Delivery After Payment

c)

Delivered at Place

d)

Direct Access Point

12.

What does DDP mean?

a)

Delivery Duty Paid

b)

Delivered During Process

c)

Domestic Delivery Procedure

d)

Duty Defined Price

13.

Under CIP, who pays for transport and insurance?

a)

Seller

b)

Buyer

c)

Carrier

d)

Customs

14.

Which Incoterm obligates the seller to deliver unloaded goods at destination?

a)

CIF

b)

DAP

c)

DPU

d)

EXW

15.

Who clears export customs under FOB?

a)

Seller

b)

Buyer

c)

Forwarder

d)

Insurance agent

16.

Which two Incoterms are insurance-inclusive by default?

a)

A) CIP and CPT

b)

B) CIF and CIP

c)

C) CIF and DDP

d)

D) EXW and FCA

17.

In DPU, who is responsible for unloading?

a)

Buyer

b)

Seller

c)

Freight company

d)

Forwarder

18.

Which Incoterm is best for containerized goods at the origin terminal?

a)

FOB

b)

FCA

c)

CIF

d)

EXW

19.

When does the risk transfer under CPT?

a)

Upon unloading

b)

When goods are delivered to carrier

c)

When goods arrive at destination

d)

Upon payment

20.

Which Incoterm means the buyer handles all logistics and costs?

a)

EXW

b)

DDP

c)

CIP

d)

CIF

21.

What organization publishes the Incoterms rules?

a)

WTO

b)

ICC

c)

IMF

d)

ISO

22.

What year is the latest edition of Incoterms?

a)

2010

b)

2015

c)

2020

d)

2023

23.

Can Incoterms determine ownership?

a)

Yes

b)

No

c)

Sometimes

d)

Only in DDP

24.

Which Incoterm is frequently misused in air freight?

a)

CIP

b)

CIF

c)

FCA

d)

EXW

25.

What’s the main risk with CIF in containerized shipping?

a)

Poor insurance

b)

Ambiguous risk transfer

c)

Higher duties

d)

Slower transport

26.

In which Incoterm does the seller not even load the goods?

a)

DPU

b)

FCA

c)

EXW

d)

DDP

27.

What does FCA stand for?

a)

Freight Cargo Agreement

b)

Free Carrier

c)

Final Contract Agreement

d)

Freight Carrier Agent

28.

What’s the key advantage of DDP for the buyer?

a)

Buyer controls all transport

b)

No customs duties to handle

c)

Shared insurance

d)

Seller inspects goods

29.

Under CIF, who pays for insurance?

a)

Buyer

b)

Seller

c)

Carrier

d)

Freight forwarder

30.

Under DAP, what is not included in the seller's responsibility?

a)

Unloading

b)

Delivery

c)

Export clearance

d)

Main carriage

31.

What is the main goal of logistics?

a)

Reducing staff

b)

Managing ads

c)

Efficient goods movement

d)

Warehouse purchases

32.

Which transport mode is fastest?

a)

Rail

b)

Air

c)

Sea

d)

Road

33.

What document is used as proof of shipment for ocean freight?

a)

Invoice

b)

Airway Bill

c)

Bill of Lading

d)

Proforma Invoice

34.

What is “last mile delivery”?

a)

Transport from port to warehouse

b)

Movement to final customer

c)

Return shipping

d)

Ocean freight only

35.

Which mode is best for heavy bulk goods over long distances?

a)

Air

b)

Sea

c)

Rail

d)

Truck

36.

What does SKU stand for?

a)

Stock Keeping Unit

b)

Shipping Key Unit

c)

Strategic Key Unit

d)

Storage Kiosk Unit

37.

Which transport mode has the lowest CO₂ per ton-km?

a)

Air

b)

Sea

c)

Road

d)

Rail

38.

What does a freight forwarder do?

a)

Imports goods

b)

Manufactures goods

c)

Manages shipments & logistics

d)

Runs customs offices

39.

What’s the purpose of warehousing?

a)

Shorten delivery time

b)

Reduce handling

c)

Buffer inventory

d)

Increase tariffs

40.

What is cross-docking?

a)

Temporary storage

b)

Breaking down bulk

c)

Direct transfer to outbound trucks

d)

Air transport process

41.

What is lead time in logistics?

a)

Warehouse processing

b)

Time from order to delivery

c)

Shipping time

d)

Customs clearance

42.

What is multimodal transport?

a)

Shipping in multiple containers

b)

Using more than one transport mode

c)

Only domestic transport

d)

Private logistics

43.

Which mode is best for perishable goods?

a)

Air

b)

Rail

c)

Road

d)

Sea

44.

A 40-ft container is common in which mode?

a)

Sea

b)

Rail

c)

Road

d)

Air

45.

What is reverse logistics?

a)

Product promotion

b)

Delivery to retail

c)

Returns and recycling

d)

Warehousing

46.

What is a bonded warehouse?

a)

Used for urgent goods

b)

Customs-controlled storage before clearance

c)

Private warehouse

d)

Temporary exhibition storage

47.

What does “freight collect” mean?

a)

Buyer pays freight at destination

b)

Seller prepays freight

c)

Freight is shared

d)

Government subsidy

48.

What is Just-In-Time logistics?

a)

Overproduction strategy

b)

Minimum inventory strategy

c)

Heavy storage model

d)

Product bundling

49.

What is the advantage of air freight?

a)

Low cost

b)

Fast delivery

c)

Heavy load

d)

Large volume

50.

What is the primary disadvantage of sea freight?

a)

Slow

b)

Expensive

c)

Not scalable

d)

Poor tracking

51.

Which transport type is often used for landlocked countries?

a)

Sea

b)

Rail

c)

Road

d)

Air

52.

What is a typical role of a customs broker?

a)

Purchase goods

b)

Track shipments

c)

Process customs clearance

d)

Sell insurance

53.

What is a waybill?

a)

Proof of tax

b)

Shipping document

c)

Insurance claim

d)

Invoice

54.

What does a 3PL provider do?

a)

Produces goods

b)

Delivers invoices

c)

Provides logistics services

d)

Handles payments

55.

What is the term for consolidating many small shipments into one?

a)

Bonding

b)

Cross-docking

c)

Freight consolidation

d)

Reverse logistics

56.

What type of warehouse is climate controlled?

a)

Basic storage

b)

Smart warehouse

c)

Cold storage

d)

Forwarding hub

57.

Which transport method is most sensitive to fuel price?

a)

Rail

b)

Road

c)

Sea

d)

Air

58.

Which software helps manage warehouse activities?

a)

TMS

b)

ERP

c)

WMS

d)

CRM

59.

What document provides cargo details for customs?

a)

Bill of Lading

b)

Invoice

c)

Packing List

d)

Shipping Manifest

60.

Why is containerization important?

a)

Slows transport

b)

Standardizes shipment

c)

Reduces customs

d)

Lowers taxes

61.

Which document shows cargo ownership?

a)

Invoice

b)

Certificate of Origin

c)

Bill of Lading

d)

Packing List

62.

Which party arranges main carriage in FOB?

a)

Buyer

b)

Seller

c)

Forwarder

d)

Customs

63.

Which term best describes “goods moved only when needed”?

a)

Bulk buying

b)

JIT

c)

Safety stock

d)

Demand shift

64.

What’s a key role of TMS software?

a)

Plan and optimize transport

b)

Calculate taxes

c)

Manage production

d)

Create invoices

65.

What is a drawback of road transport?

a)

Not flexible

b)

Slow

c)

Weather vulnerability

d)

Fixed routes only

66.

What does a freight contract define?

a)

Legal ownership

b)

Terms of transport

c)

Insurance payout

d)

Export pricing

67.

Why use rail over road for bulk goods?

a)

Higher CO2

b)

More expensive

c)

Better for long haul

d)

Less reliable

68.

What causes customs delay most often?

a)

Fast freight

b)

Bad weather

c)

Incomplete documents

d)

Excess packaging

69.

Who is the consignee in logistics?

a)

The buyer receiving the goods

b)

The seller

c)

The freight forwarder

d)

Customs official

70.

What is the main focus of supply chain integration?

a)

Reducing trade laws

b)

Improving product design

c)

Synchronizing processes across firms

d)

Maximizing advertising