2024-2025 PRACTICE QUESTIONS
AND ANSWERS
Performance Specifications - Answer-Describes the desired outcome or intended use of
a commodity and how the commodity will perform (# of items, distance to travel, time
required)
Design specifications - Answer-Establishes characteristics an item must possess,
including details including how it is to be manufactures. May include plans or drawings,
and blueprints
Combination specifications - Answer-This type of specification includes the elements of
both design and performance specifications.
IFB - Answer-Competitive sealed responses when price is the basis for award
RFP - Answer-The document used to solicit proposals from potential providers for
goods and services. Price is usually not a primary evaluation factor.
RFQu - Answer-A document which is issued by a procurement entity to obtain
statements of the qualification of potential responders to gauge a potential competition
in the marketplace. Used prior to issuing a solicitation.
Tariff - Answer-A government tax or duty on imports or exports
Embargo - Answer-an official ban on trade or other commercial activity with a particular
country.
EXW (ex works) - Answer-delivery takes place at the seller's premises or another
named place. Seller doesn't need to load goods on collecting vehicle, nor does it clear
the goods for export, where such clearance is applicable.
FCA (Free Carrier) - Answer-seller delivers the goods to the carrier or another person
nominated by the buyer at the seller's premises or another named place.
The parties are well advised to specify as clearly as possible the point within the named
place of delivery, as the risk passes to the buyer at that point.
CPT (Carriage Paid To) - Answer-the seller delivers the goods to the carrier or another
person nominated by the seller at an agreed place (if any such place is agreed between
parties) and that the seller must contract for and pay the costs of carriage necessary to
bring the goods to the named place of destination.
, CIP (Carriage and Insurance Paid To) - Answer-The seller delivers the goods to the
carrier or another person nominated by the seller at an agreed place (if any such place
is agreed between parties) and that the seller must contract for and pay the costs of
carriage necessary to bring the goods to the named place of destination.
'The seller also contracts for insurance cover against the buyer's risk of loss of or
damage to the goods during the carriage. The buyer should note that under CIP the
seller is required to obtain insurance only on minimum cover. Should the buyer wish to
have more insurance protection, it will need either to agree as much expressly with the
seller or to make its own extra insurance arrangements."
DAT (Delivered at Terminal) - Answer-Seller delivers when the goods, once unloaded
from the arriving means of transport, are placed at the disposal of the buyer at a named
terminal at the named port or place of destination. "Terminal" includes a place, whether
covered or not, such as a quay, warehouse, container yard or road, rail or air cargo
terminal. The seller bears all risks involved in bringing the goods to and unloading them
at the terminal at the named port or place of destination.
DAP (Delivered at Place) - Answer-Seller delivers when the goods are placed at the
disposal of the buyer on the arriving means of transport ready for unloading at the
named place of destination. The seller bears all risks involved in bringing the goods to
the named place.
DDP (Delivered Duty Paid) - Answer-seller delivers the goods when the goods are
placed at the disposal of the buyer, cleared for import on the arriving means of transport
ready for unloading at the named place of destination.
The seller bears all the costs and risks involved in bringing the goods to the place of
destination and has an obligation to clear the goods not only for export but also for
import, to pay any duty for both export and import and to carry out all customs
formalities.
Logistics management - Answer-The discipline responsible for the movement, routing,
distribution, transportation, and coordination of activities that apply to goods delivery
and/or service performance
delivery mode / method - Answer-Method of delivery
Carload - Answer-the minimum weight, as defined by law, of a shipment entitled to a
reduced freight rate. The shipment amount that fills a freight car or truck. A load that fills
the maximum capacity of a transporting unit.
Truckload - Answer-A quantity of freight to which truckload rates apply. Indicates full
truckload as opposed to LT less than truckload shipment. Motor carriers will charge less
per CWT if a shipper is moving full truckloads