IDAT Administration and Logistics 3

Question 1

Which shipping term means the seller bears all risk and cost until goods are delivered to the buyer's named destination?

Accepted Answer

FOB Destination

Answer

FOB Destination means the seller retains ownership and risk until the goods arrive at the buyer's specified location.

Question 2

A bill of lading (BOL) is best described as:

Accepted Answer

A legal document issued by a carrier acknowledging receipt of cargo for shipment

Answer

A bill of lading is a carrier-issued document that serves as a receipt for cargo, a contract of carriage, and a document of title.

Question 3

What does 'EOQ' stand for in inventory management?

Accepted Answer

Economic Order Quantity

Answer

EOQ (Economic Order Quantity) is the optimal order size that minimizes the total costs of ordering and holding inventory.

Question 4

In administrative operations, a 'standard operating procedure' (SOP) is used to:

Accepted Answer

Provide step-by-step instructions to ensure consistent task completion

Answer

An SOP documents the routine steps for performing a task consistently and correctly across an organization.

Question 5

Which logistics concept involves consolidating small shipments from multiple suppliers into one larger shipment?

Accepted Answer

Freight consolidation

Answer

Freight consolidation combines multiple smaller shipments into a single larger load to reduce per-unit shipping costs.

(IDAT) International Diagnostic and Admission Test Practice Test