Mary Help College

Department of Fashion Design

Formative Assessment unit 4 merchandizing Level III Extension students (30 %)

Full Name: ___________________________________________ID:_____________________

Part I : Choose the correct answer from the given alternatives
_________1. Which of the following is not considered a direct material cost in garment production?
a) Fabric c) Equipment and machinery maintenance
b) Dyes and chemicals d) Packaging materials
_________2. The direct labor costs in garment production include:
a) Cutting, sewing, and finishing c) Indirect labor, such as supervisors and quality control
b) Factory rent and utilities d) Both a and c
_________3. Which of the following is not typically considered an overhead cost in garment production?
a) Depreciation of assets c) Product development and design costs
b) Insurance d) Worker compensation
_________4. Which OHS factor focuses on protecting workers from occupational hazards?
a) Safety standards for materials and processes c) Worker protection measures
b) Compliance with OHS regulations d) All of the above
_________5. Which of the following is not a common OHS problem in the garment industry?
a) Lack of awareness of occupational risks c) Adequate occupational health services
b) Insufficient training on safety practices d) Financial capacity constraints for small firms
_________6. The preliminary or pre-costing stage in garment costing is conducted:
a) During the product development stage c) After production begins
b) Just prior to price setting and production d) When collecting actual production data
_________7. Which costing stage involves detailed analysis of apparel components and assembly procedures?
a) Preliminary or pre-costing b) Cost estimating c) Materials costing d) Labor costing
_________8. The labor costing in garment production is based on:
a) Production standards and work measurement
b) Estimates from the sample manufacturing process d) All of the above
_________9. Which external factor has the most significant impact on garment pricing?
a) The nature of competition c) Brand recognition
b) Government policy and legislation d) Supply and demand
_________10. Which fast fashion strategy emphasizes a "pull" system to quickly get customer feedback to the design
teams?
a) In-house manufacturing c) New products twice per week
b) Communication upward from stores d) Little to no advertising

Part II Read each statement carefully and indicate whether it is True or False by clearly
write the correct answer.

_________1. Direct material costs include only the cost of raw materials like fabric and yarn.

_________2. Indirect labor costs, such as supervisors and quality control, are considered part of overhead expenses.

_________3. Occupational health and safety factors are not a significant consideration in garment costing.

_________4. Accurate demand forecasting is crucial for minimizing leftover inventory in fast fashion.

_________5. Fast fashion companies typically invest heavily in advertising to promote their new designs.
 Mary Help College
Department of Fashion Design
Formative Assessment unit 4 merchandizing Level III Extension students (30 %)

Full Name: ___________________________________________ID:_____________________

Part I : Choose the correct answer from the given alternatives
_________1. Which of the following is not considered a direct material cost in garment production?
a) Fabric c) Equipment and machinery maintenance
b) Dyes and chemicals d) Packaging materials
_________2. The direct labor costs in garment production include:
a) Cutting, sewing, and finishing c) Indirect labor, such as supervisors and quality control
b) Factory rent and utilities d) Both a and c
_________3. Which of the following is not typically considered an overhead cost in garment production?
a) Depreciation of assets c) Product development and design costs
b) Insurance d) Worker compensation
_________4. Which OHS factor focuses on protecting workers from occupational hazards?
a) Safety standards for materials and processes c) Worker protection measures
b) Compliance with OHS regulations d) All of the above
_________5. Which of the following is not a common OHS problem in the garment industry?
a) Lack of awareness of occupational risks c) Adequate occupational health services
b) Insufficient training on safety practices d) Financial capacity constraints for small firms
_________6. The preliminary or pre-costing stage in garment costing is conducted:
a) During the product development stage c) After production begins
b) Just prior to price setting and production d) When collecting actual production data
_________7. Which costing stage involves detailed analysis of apparel components and assembly procedures?
a) Preliminary or pre-costing b) Cost estimating c) Materials costing d) Labor costing
_________8. The labor costing in garment production is based on:
a) Production standards and work measurement
b) Estimates from the sample manufacturing process d) All of the above
_________9. Which external factor has the most significant impact on garment pricing?
a) The nature of competition c) Brand recognition
b) Government policy and legislation d) Supply and demand
_________10. Which fast fashion strategy emphasizes a "pull" system to quickly get customer feedback to the design
teams?
a) In-house manufacturing c) New products twice per week
b) Communication upward from stores d) Little to no advertising

Part II Read each statement carefully and indicate whether it is True or False by clearly
write the correct answer.

_________1. Direct material costs include only the cost of raw materials like fabric and yarn.

_________2. Indirect labor costs, such as supervisors and quality control, are considered part of overhead expenses.

_________3. Occupational health and safety factors are not a significant consideration in garment costing.

_________4. Accurate demand forecasting is crucial for minimizing leftover inventory in fast fashion.

_________5. Fast fashion companies typically invest heavily in advertising to promote their new designs.