CES CES Export Pricing & Incoterms

Question 1

Which costing method adds all direct costs plus a fixed percentage markup to arrive at an export selling price?

Accepted Answer

Cost-plus pricing

Answer

Marginal cost pricing

Answer

Competitive pricing

Answer

Transfer pricing

Question 2

What is 'price escalation' in export pricing?

Accepted Answer

The increase in the final foreign market price caused by adding export costs (freight, duties, margins)

Answer

Raising prices annually to match domestic inflation

Answer

A surcharge applied for expedited delivery

Answer

Adjusting prices upward due to favorable exchange rates

Question 3

What is a 'transfer price' in the context of US multinational export transactions?

Accepted Answer

The price charged between related entities (e.g., parent and subsidiary) for goods or services

Answer

The freight rate charged to move goods between US warehouses

Answer

The customs value declared at the port of entry

Answer

The spot exchange rate used to invoice in foreign currency

Question 4

Under the Incoterms 2020 rule EXW (Ex Works), who is responsible for loading the goods onto the buyer's vehicle at the seller's premises?

Accepted Answer

The buyer

Answer

The freight forwarder

Answer

The seller

Answer

The customs broker

Question 5

Which pricing strategy sets a low initial export price to quickly gain market share in a new foreign market?

Accepted Answer

Penetration pricing

Answer

Skimming pricing

Answer

Parity pricing

Answer

Administered pricing

Question 6

Which Incoterms 2020 rule is recommended for containerized ocean shipments instead of FOB?

Accepted Answer

FCA

Answer

CFR

Answer

CIF

Answer

DAP