Applied assessment — costing and price decisions

Module quiz

6 questions on Module 2 — Costing and Negotiation. Answer them all, then check your score before moving on. 5 correct or more is a pass. Your best score is saved on this device, and to your account when you are signed in. This is a self-check, not an accredited assessment.

1. 1. Fabric consumption is taken from a similar previous style instead of this style's marker. What is the most likely consequence?

   None, if the styles look alikeThe largest cost line is wrong in an unknown direction, and the error is only discovered when bulk fabric is bookedThe trim cost changesOnly the delivery date changes

2. 2. An order is quoted at 60 per cent line efficiency but the line historically runs at 45 per cent on this product type. What has happened to the quote?

   Nothing measurableThe making cost is understated, so the order consumes more minutes than it was paid forThe fabric cost is understatedThe freight cost is understated

3. 3. A buyer offers the target price if the order quantity doubles. Which cost lines legitimately fall?

   All lines fall equallySetup, sampling and learning-curve cost per piece, plus any material price break — labour minutes per piece do not fall by themselvesOnly the fabric priceNone; a price should never change with quantity

4. 4. Which of these is a cost reduction rather than a margin give-away?

   Agreeing a 4 per cent discount to win the orderRe-engineering the marker to cut consumption by 3 per cent with the buyer's approval of the placementAbsorbing the air-freight cost caused by a fabric delayAccepting a shorter delivery without changing the plan

5. 5. The confirmation records price and quantity only. The buyer later changes the size ratio, raising consumption. What is the factory's position?

   Strong; consumption is obviously the buyer's problemWeak; nothing recorded the size ratio the price assumed, so the change is not documented as a variationUnchanged; price is priceStrong, because the buyer changed something

6. 6. Mid-production, an approved trim is out of stock and a similar one is substituted on the floor to hold the date. What are the two exposures?

   Only a quality exposureCost and compliance — consumption and price change, and an unapproved material can void approval and testing evidenceOnly a cost exposureNone if it looks the same