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Exam CSCP topic 1 question 489 discussion

Actual exam question from APICS's CSCP
Question #: 489
Topic #: 1
[All CSCP Questions]

A company imports subassemblies to complete as finished goods. A substantial portion of this product goes to the export market. The organization might best reduce its expenses for the product by:

  • A. changing its harmonized tariff codes.
  • B. creating a free trade zone (FTZ).
  • C. using the same broker to handle imports and exports.
  • D. negotiating free alongside ship (FAS) Incoterms® for its imports.
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Suggested Answer: C 🗳️

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yassernaga
7 months, 1 week ago
C:The company imported only one portion not all the parts so create FTZ not the right answer C is the right answer Using the same broker to handle imports and exports (option C) could indeed help streamline processes and potentially reduce expenses. Using the same broker for both imports and exports can lead to efficiencies in customs clearance procedures, documentation management, and communication. This integrated approach can help minimize errors, expedite the movement of goods, and potentially reduce brokerage fees and administrative costs associated with customs processes.
upvoted 1 times
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Rajiv8047
10 months, 3 weeks ago
Selected Answer: B
A Free Trade Zone (FTZ) can be an effective way for a company that imports subassemblies and exports finished goods to reduce costs.
upvoted 2 times
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Shashak
1 year, 6 months ago
option B
upvoted 4 times
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