6. Business and Production
Cost Estimation — Quiz
Test your understanding of cost estimation with 5 practice questions.
Practice Questions
Question 1
In cost estimation, how is a direct cost for a manufactured part best defined?
Question 2
What is the primary purpose of a bill of materials (BOM) in cost estimation?
Question 3
A part requires three raw materials: Steel sheet weighing 2 kg at \5/kg, Aluminum bracket 0.5 kg at \10/kg, and Plastic insert 0.2 kg at \2/kg. What is the total material cost per part?
Question 4
If tooling for a part costs \$50,000 and the estimated production volume is 10,000 units, what is the tooling cost per unit when amortized evenly?
Question 5
A component requires 15 minutes of labor time. If the labor rate is \$60 per hour, what is the labor cost per component?