CPP CPP Cost Management & Economics 2

Question 1

A packaging Bill of Materials (BOM) is used primarily to:

Accepted Answer

List every component and material needed to produce a finished package with quantities and costs

Answer

A BOM provides a structured itemization of all packaging components, their specifications, quantities, and unit costs, forming the basis for cost estimation and procurement.

Question 2

What is 'cube efficiency' and why does it matter economically in packaging?

Accepted Answer

How well a package fills available truck or pallet space — higher efficiency lowers freight cost per unit

Answer

Cube efficiency measures how completely a package fills transportation and storage space; higher efficiency reduces wasted volume and lowers freight and warehousing cost per unit.

Question 3

When a supplier quotes an 'MOQ' of 50,000 units, a packaging manager must consider which cost trade-off?

Accepted Answer

Lower per-unit cost vs. higher inventory carrying and potential obsolescence costs

Answer

Meeting an MOQ earns a lower unit price but requires holding more inventory, which incurs carrying costs and risk of obsolescence if designs change.

Question 4

What is a 'value engineering' exercise in packaging?

Accepted Answer

A systematic review to achieve required function at the lowest total cost without sacrificing performance

Answer

Value engineering analyzes each packaging function to identify lower-cost alternatives that still meet performance requirements, eliminating cost without eliminating value.

Question 5

Fixed tooling costs for custom injection-molded plastic containers are best amortized by:

Accepted Answer

Spreading them across a high volume of units to minimize cost per unit

Answer

Dividing a fixed tooling cost across a large number of units progressively reduces the per-unit tooling burden, making custom packaging more cost-competitive at scale.

(CPP) Certified Packaging Professional Practice Test

(CPP) Certified Packaging Professional Practice Test

CPP CPP Cost Management & Economics 2